Episode 53 Homes Under the Hammer


Episode 53

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Transcript


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Hello. Sometimes the property market is extremely competitive.

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Other times, it's, well, slow.

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But either way, you've got to know where to get a bargain.

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So what's our advice?

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Well, do as much research as you can, then set a limit and stick to it.

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And one place you can kind of move things in your favour

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is visit your local property auction.

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Buying at auction is increasingly popular.

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Not surprising when you consider how long-winded buying by other means can be.

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So when the hammer falls, you've exchanged contracts.

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What did the buyers buy on today's show?

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On the Kent coast, a former fancy dress shop has a blessing in disguise.

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Planning permission to turn this space into five flats.

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There's no disguising a first-class opportunity on Cumbria's West Coast.

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It has actually got outline planning permission for the creation of a single dwelling.

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And there is no attempt to disguise the plumbing

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in this Staffordshire two bed mid-terrace.

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Possibly water, possibly even worse - gas.

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Just floating there.

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All of these properties have been sold at auction.

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

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when they went under the hammer.

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Folkestone in Kent on the south-east coast

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has undergone a great deal of regeneration.

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Most of Folkestone's town centre has been pedestrianised

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and a cafe culture is certainly growing here.

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The lot I'm here to see today is extremely central

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and could not be more convenient for all those lovely coffee shops,

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which means it's an area ripe for similar regeneration.

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Promising.

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Now the property itself is this.

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It's a grand, tall, four-storey building with a shop

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on the ground floor and a guide price of just £80,000 to £85,000.

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So let's start from the bottom up. Shop first? In we go.

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My first impressions, it is huge.

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There is plenty of floor space and that is brilliant.

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Now, I know this used to be a fancy dress shop at one

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point in its life, so we are talking A1 shop usage.

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So it could become a clothes shop, a toy shop,

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any kind of shop really or even a post office.

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It could be an undertakers, a dry cleaners.

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Just not somewhere that serves food or deals with financial services.

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So it's certainly got the space, it's got options.

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Let's go upstairs and look further.

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Yes, it's a big space, but I'm not sure that retail is the answer here.

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I think I would certainly look to see

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if I could get a change of use from commercial to residential,

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which is more in line with the rest of the building.

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However, if it was to remain a shop, the good news

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is that there is a separate access to the upper floors.

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And judging by the size of the building, there's going to be lots of space.

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But the crumbling facade does suggest that some work might be needed.

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Well, the condition of the floors above is not great.

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The ceilings are coming down.

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I would want to find out whether that is due to lots of rain water coming in from the roof.

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So there is clearly work to do.

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But there's lots of square footage to work with also.

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Now, here is where I should tell you that in fact this property

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came with planning permission to turn this space on the upper

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levels into five flats, which is fantastic news.

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You've got two on the first floor,

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there's going to be two on the second floor and one on the top floor.

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All of them one-bedders.

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This really is exciting news and makes this whole building just come to life.

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# I'm so excited

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# I'm so excited

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# I know exactly what I'm going to do

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# Let's get excited.

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# I'm so excited

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# I'm a detective I'm all over you. #

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There's certainly a lot of rooms, a lot of stairs

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and a lot of square footage here.

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But also, a lot of repair work to do first.

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Well, you've got to get the fabric of the building in order

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before you can even start considering converting this

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four-storey property into five flats.

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So one of the flats will be at the rear of the second floor here

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and it will be created in an extension out the back there.

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But this area here will be flat number three.

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Now, it's hard to tell from these empty rooms

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what these flats are going to look like and feel like

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when they are finished, but according to the plans passed,

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this area is going to be the bathroom.

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Over here is going to be the bedroom.

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So you've got an internal bathroom, which is going to really work,

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I think. It's a reasonable size.

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It's not massive, but it will be fine,

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this flat, because through here to the front room, look!

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You've got those amazing big, high windows. All the light coming in.

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And this will be your kitchen, living,

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dining space with a kitchen on the back wall.

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You've got space for a sofa here.

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All the flats have got this open plan kitchen space, which is fine.

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But you might want to bear in mind, this will be

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the biggest of the proposed flats out of all of them.

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All in all though, five flats, planning passed,

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commercial space to rent out on the ground floor.

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It's got my developer senses tingling!

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# I'm so excited

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# I'm a detective I'm all over you. #

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But before you crack on and do anything here, you have to

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check out the property prices in the local area.

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Does converting this huge building into flats make financial sense?

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We asked along a local estate agent to give us his verdict.

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First off, what about the ground floor commercial unit, the shop?

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The commercial unit will be difficult to rent because there is not a lot of demand.

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It would be a owner buyer, I would think.

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You wouldn't buy to let this shop, I don't think.

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Well, that's not great news about the shop,

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but then these are difficult economic times for retail.

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What about the rest of the building and the plans that have been passed?

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The layout for this building on the plans is for five one-bedroom

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flats and for the sort of demand in this town, I think

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that's the best way they could use this particular building.

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So, financially, how would it stack up?

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What rent could you achieve per flat?

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Rental for a one-bedroom flat in this particular

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area would be in the region of £400 to £450 per calendar month.

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And what about sale value per flat?

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A one-bedroom flat in this area would be in the region of £60,000 to £65,000, top end.

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So altogether, that's between £300,000 and £325,000

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if you sold all five flats and a potential rental

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income of between £2,000 and £2,255 per month if you let them all out.

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A lot of people have faith in Folkestone as a place to invest and with good reason.

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And this is an impressive building in a central location with

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planning in place to potentially make you some money.

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Let's see who went for it at the auction.

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The last lot today is Lot 67.

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It's the four-storey town centre property you can see there.

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Planning consent for conversion

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and extension of the upper parts to give you five self-contained flats.

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And with the shop as well. Start me at 75 then. 75. In the back at 75.

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75. And 78. 78, sitting down. And 80. It's against you at the back.

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At 80, it's with you. And two. 82. 82. And four.

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So despite a quiet auction room, the lot had started a bidding war

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and we rejoin with bids at £100,000.

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And 100. And two. And four. And six.

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And eight. And 10. And 12. 14. 116.

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And 18 again. 116 with you. 118. It's against both of you. 118,000.

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Otherwise, for the first time again at £116,000.

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Make no mistake, it's the lady in front.

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For the first time. At £116,000 for the second time.

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If you are sure you're all done.

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116 for the third and final time. That is yours for 116.

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Regular viewers may recognise Deborah, who got the property for 116,000,

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because we've met her before on Homes Under The Hammer.

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She works for clients abroad as well as at home to help them

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build profitable portfolios.

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# I'm back for more

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# I'm back for more. #

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-Deborah, lovely to meet you again.

-Likewise.

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The last time we met you had just bought a funeral parlour.

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-In fact, my first one on Homes Under The Hammer.

-That's right.

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And you are back for more.

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Are you still investing on behalf of other people

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because that is what you were doing the last time we met?

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-That's right.

-So you actually spot these properties for your investors.

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-You sort of go house shopping for them.

-Yes.

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That's exactly what I do on quite a large scale.

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Deborah has built up a team of builders

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and together they will come in and strip the building back to a shell.

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Leaking roofs, damp, old electrics, plumbing,

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all gets sorted in the course of the work.

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So she was never worried about the building's current condition.

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With this one, what is it that made it worth buying on auction day?

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The fact that we can fit five properties into this building

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is a big bonus.

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Two of them are going to have roof terraces and one of them

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has also got a possible glass dome kitchen, which would make it

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really modern and trendy.

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And yet they are still going to be resold at a reasonable price.

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So the maths is right on it.

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So you're looking at converting into five flats.

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What about the ground floor unit, which is obviously a shop front?

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What we were thinking was that the ground floor could be

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a sort of designer lounge, kitchen, living area for flat two,

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which is going to go on the first level at the back.

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So that would make a one bed flat into a good-sized two-bedroom

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flat with a very interesting kitchen diner.

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So that's if you do get planning permission to convert that.

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What if you don't get planning permission to convert that?

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You will have to use that as a commercial premises, a retail area.

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Yes. Well, if we don't get planning we will be disappointed

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because I think there's no mileage in it as a commercial venture.

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But in the maths, the whole structure of the project has

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allowed for that to be written off if we need to write it off.

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So that is just your little bonus, your little cherry.

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-If you get permission for that, ching, ching!

-That's right.

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It would be very nice to add to the profits in that way.

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But if we don't, it's not the end of the world.

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Deborah has a timescale of ten months

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and a budget of 240,000 for the five flats.

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Plus more if they get planning permission to do the rest.

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How do you get the time to do your research,

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to get the planning before it's even gone through?

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I mean, you really are very ahead of the game.

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I make sure a lot is done before the purchase

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because it is too late afterwards so everything is done up front

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and everything is in the buying and the maths.

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-And if you get that right, the rest should follow.

-Deborah, good luck.

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I can't wait to see what this property is like

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when it's finished and I hope you get permission for the ground floor.

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-Well done.

-Thank you.

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Debbie is experienced, competent, calm and in control.

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I can't actually see this place giving her many problems.

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But will she get planning permission to convert that ground-floor

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shop into another flat? Will that really be the cherry on the cake?

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You can find out what happens later on in the programme.

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So, here is a truly fantastic pub quiz question.

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Where does the timing signal that coordinates the pips,

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as in the beep, beep, beep, where does that come from?

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First guess? Greenwich? Wrong.

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If you are being clever, Rugby?

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Well, you were right until a few years ago.

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But now it's actually a little village in Cumbria.

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The village of Anthorn to be precise.

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13 miles north of Carlisle on the Solway Firth.

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So the transmitting station here is the nation's reference clock.

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Who would have thought?

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# This is radio nowhere

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# Is there anybody alive out there? #

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So, what was on offer at the auction?

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Well, a really interesting opportunity

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right on the edge of the village.

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It's this former post office and store, complete with its own

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letter box and a telephone box

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and a guide price of £10,000 £15,000.

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Let's have a look.

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# Oh, yes, wait a minute, Mr Postman

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# Wa-a-a-a-a-it, Mr Postman... #

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So what have we got? A squeaky door for a start.

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Basically, it's one little building really, with a big area here.

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An area in front of the post office counter there.

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You've got that room towards the back.

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A little anteroom there with the kitchen area and a loo.

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This is obviously where the shop and the post office was.

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And that's basically it.

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That's me done, really!

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Especially as I'm doing my best not to make any postage related puns in my delivery.

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Oh, sorry!

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When this post office, like many, faced closure,

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not even its additional outlet as a sweet shop could save it, echoing

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all over the country the fate of many small village businesses.

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The good news is that even if you have no use for a defunct post office come sweet shop,

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you will undoubtedly have use for the services.

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Mains water, sewerage and electricity are all on site.

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So what to do with it?

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Well, I am trying desperately hard not to make any post office or postage puns.

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It's not easy, I tell you.

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But anyway, what could you perhaps do with this place?

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The other thing you could do is utilise the fact that it has

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actually got outlined planning permission for the creation of a single dwelling.

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There are a few stipulations about the finish and where the gable end needs to be,

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but pretty much, you could design something to your own requirements.

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That would be nice. Certainly this will rural location works.

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Either way, I do think it could be a first-class opportunity.

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Darn it!

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Having punned for so long, it's difficult for me to counter the tenancy.

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So, here's the outside delivered at face value.

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Oh, you see, I just can't stamp it out!

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And it's true, old habits die hard, to be frank. Oh!

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I just wish this rain would stop.

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That's better.

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So what would a detached house sell for

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on the open market in this village?

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We asked a local estate agent along to tell us.

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It would be difficult to put a certain value on this property

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as it is dependent on what the purchaser eventually does with it.

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However, if they were to build a two-storey detached property

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with a garden, you could look for somewhere in the region of £150,000.

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If the purchaser was to demolish the shop

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and build a residential dwelling, they could look to

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bring in a rental value in the region of £300 to £400 per calendar month.

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With demolition very much on the cards, what would somebody

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pay for the privilege to get this small parcel of land?

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Let's find out what happened when it went under the hammer.

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We are on to Lot 31 in Anthorn.

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This is approximately a 21 by ten metre building plot

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that has got outlined planning permission.

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Anybody at ten for this?

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£10,000 seated. We are away. At ten in the room. I will take it in ones.

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11 on the phone. 12, may I see?

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12, I've got. 13. It's against the phone. It's with you madam at 12.

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13 on the phone. 14 back to you. And 15, may I see?

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At £14,000, I am bid.

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14 and a half on the phone. 15. And a half.

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At 15 I'm bid, seated. At £15,000. It's against the phone now.

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It's with the madam at £15,000.

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15 and a half on the phone.

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16, madam. At £16,000, madam. First time. 16.

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Second time. 16. Third and final time. Sold to you.

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The successful bidder of £16,000, hidden from view, was retired journalist, Lucilla,

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who was accompanied by her partner of nine years, Richard, who is a sheep farmer.

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I met them back at the former post office to discover their plans.

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-Lucilla, Richard, lovely to meet you both. Congratulations.

-Thank you.

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Well, this is interesting. Tell me why you wanted to buy it.

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Because I am looking for a house for my old age.

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I mean, my extreme old age.

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I live with Richard up the road

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and if he pops his clogs before I do, I need somewhere to live.

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-This is all pretty cheerful!

-She thinks I'm going to die first!

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-Really?

-Apparently so.

-No, it's an insurance.

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I have a little house which I am selling.

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It needs a bit of work

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and it's not in a good situation to be a very old person in.

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It's not on a bus route,

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it doesn't have good internet access and those kind of things.

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And I was looking for the best way with a limited amount of money

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to create a nice little house.

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So this is a chance for you to design something that will suit you to the ground.

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-Hopefully, yes.

-And what will go in its place?

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-Do you have any idea at this point?

-I think probably a dormer bungalow.

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I would like it to be as green as possible.

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-I'm thinking about ground source heat.

-Excellent.

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-And water...

-And recycling water.

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Recycling water and maybe solar panels. That kind of thing.

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So what's the sort of build cost, your budget for doing all this?

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I'm hoping that including the cost of the site and the building,

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-that I can do the lot under £100,000.

-Right.

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-It depends how big the bungalow is, I suppose.

-Yes.

-How many bedrooms?

-Two.

0:19:430:19:48

So one of the advantages of course at the moment is it has got outline planning permission.

0:19:480:19:53

Are you going to stick pretty much to what's been

0:19:530:19:56

suggested in terms of outline?

0:19:560:19:58

Well, I would like to turn it and face it, you know, to face itself

0:19:590:20:04

-so it gets a lot more sun.

-Right.

0:20:040:20:07

-Because at the moment, the gable end faces the road, doesn't it?

-Yes.

0:20:070:20:10

I mean, initially I thought it would be nice to build it that way.

0:20:120:20:15

It is a wild flower meadow, that field.

0:20:150:20:17

It is really nice in the summer and it goes up a hill.

0:20:170:20:20

I thought it would be quite nice to have French windows and things out there.

0:20:200:20:25

-But Richard has persuaded me that it's better to have the sun.

-Right.

0:20:250:20:29

-You know, on the front.

-Well, that's what I think.

0:20:290:20:32

What do the rest of the family think of your plans?

0:20:320:20:35

I think they're all quite interested.

0:20:350:20:38

-So what is the timescale for all of this?

-No rush!

0:20:380:20:42

I can see why you say that! Make it slow!

0:20:430:20:47

-I'm hoping a couple of years.

-OK.

0:20:470:20:50

That's a relaxed timescale by most standards.

0:20:510:20:56

But I really admire her practical approach to

0:20:560:20:58

moving from the family home and looking ahead to a new

0:20:580:21:02

greener way of living in her purpose-built bungalow.

0:21:020:21:06

If you think about what you can get for £100,000 on the market,

0:21:080:21:14

you probably wouldn't get a really nice, you know, neat,

0:21:140:21:19

insulated, cheap to run house.

0:21:190:21:23

No, absolutely. In a lovely location.

0:21:230:21:25

-Yes.

-With beautiful views.

0:21:250:21:27

Yes, there is no denying it is a great location.

0:21:270:21:30

It's been classified as an Area of Outstanding Natural Beauty

0:21:300:21:34

and Lucilla's eco-friendly intentions are shared by Richard.

0:21:340:21:39

He is a conservationist

0:21:390:21:40

and is licensed to look after a rare species in these parts - natterjack toads.

0:21:400:21:46

We discovered them by chance, yes, when was it?

0:21:460:21:49

About 30 years ago. We have been looking after them ever since.

0:21:490:21:53

We've expanded the range of the toads considerably.

0:21:530:21:56

They have a lot of territory around here now, whereas before they were all in one place.

0:21:560:22:00

What's the difference between a natterjack toad and a normal told?

0:22:000:22:04

The easiest distinguishing feature is that the natterjack toad has a gold stripe down its back.

0:22:040:22:09

Oh, wow. Well, it's been fascinating to meet you both and hear the story.

0:22:090:22:13

-I really wish you all the best with it.

-Thank you.

-And you Richard.

0:22:130:22:17

I think we'll need it.

0:22:170:22:19

Well, I've heard some interesting reasons for wanting to build a house

0:22:210:22:24

in my time but that is certainly up there with the more unusual.

0:22:240:22:28

But how will Lucilla and Richard get on designing and building this place?

0:22:280:22:34

Will Lucilla manage to put his stamp on it?

0:22:340:22:36

You can find out a little later in the show.

0:22:360:22:39

Still to come - Doing things by half has me stumped in Stoke.

0:22:410:22:45

Let's see what it's got to show us.

0:22:450:22:47

And in Anthorn, Cumbria, Lucilla's eco-friendly dream

0:22:530:22:57

is delayed by planning problems.

0:22:570:23:00

Now back to central Folkestone in Kent where this four-storey

0:23:060:23:10

mid-terraced building was bought for 116,000 by Deborah

0:23:100:23:14

on behalf of investor client.

0:23:140:23:16

There were big plans to convert it into five one-bedroom flats

0:23:160:23:20

and if planning approval was granted, to make one of them a large two-bedroom flat.

0:23:200:23:26

So you are looking at converting it into five flats.

0:23:270:23:30

What about the ground floor unit which is obviously a shop front?

0:23:300:23:34

What we were thinking was that the ground floor could be

0:23:340:23:37

a sort of designer lounge, kitchen, living area for flat two,

0:23:370:23:42

which is going to go on the first level at the back.

0:23:420:23:46

So that would make a one bed flat into a good-sized two-bedroom

0:23:460:23:51

flat with a very interesting kitchen diner.

0:23:510:23:54

That's if you do get planning permission to convert that.

0:23:540:23:57

What if you don't get planning permission to convert that?

0:23:570:24:00

You will have to use that as a commercial premises, a retail area.

0:24:000:24:03

Yes. If we don't get planning, we will be disappointed

0:24:030:24:07

because I think there is no mileage in it as a commercial venture.

0:24:070:24:12

But we have in the maths, the whole structure of the project

0:24:120:24:16

has allowed for that to be written off if we need to write it off.

0:24:160:24:19

Deborah's building team were facing a mammoth task in making

0:24:190:24:23

the fabric of the building sound before they could even start

0:24:230:24:27

with the flat conversions.

0:24:270:24:28

Ten months had been the planned timescale.

0:24:280:24:32

13 months later, we're back to see if Deborah has got it all sorted.

0:24:320:24:36

# You can have it all

0:24:360:24:38

# So come on

0:24:380:24:40

# So come on

0:24:400:24:42

# Get it on... #

0:24:420:24:43

Flat one on the first floor is the largest flat.

0:24:430:24:46

Perhaps its most attractive feature can be found

0:24:480:24:51

at the rear of the en-suite bedroom.

0:24:510:24:54

A fantastic sun trap.

0:24:540:24:56

# Shine

0:24:560:25:00

# Let it shine. #

0:25:000:25:02

On to flat two.

0:25:020:25:04

# Stop. #

0:25:040:25:05

Also on the first floor, it has a reasonable sized living area,

0:25:050:25:09

including a kitchen diner.

0:25:090:25:12

And it doesn't end there.

0:25:140:25:16

# You only have to open your eyes

0:25:160:25:19

# You might just get a big surprise. #

0:25:190:25:21

Its own outside area.

0:25:210:25:23

And that's not the only thing in common with flat one.

0:25:250:25:28

It too is one bedroomed.

0:25:290:25:31

Up now to the second floor and flat three.

0:25:310:25:34

# You can have it all

0:25:340:25:37

# So come on, oh come on

0:25:380:25:40

# Get it on

0:25:400:25:42

# I don't know what you're waiting for

0:25:420:25:45

# Your time is coming Don't be late. #

0:25:450:25:48

There are rooftop views from the kitchen

0:25:500:25:52

and ceiling windows to let the daylight...

0:25:520:25:55

# Shine

0:25:550:25:59

# Let it shine. #

0:25:590:26:01

Flat four is also on the second floor. Look familiar?

0:26:020:26:06

That's because the layout is the same as flat one without the outside space.

0:26:060:26:11

On the top floor, the penthouse.

0:26:120:26:14

# Let me show you Let me show you. #

0:26:160:26:18

With finishing touches just being applied to the kitchen units,

0:26:180:26:22

it has a feature fireplace moved from a different part of the building.

0:26:220:26:26

Its internal bathroom is just that with one of the few

0:26:280:26:32

baths in the block and rooftop views across Folkestone.

0:26:320:26:35

Deborah and her investor are now ready to capitalise on their investment,

0:26:370:26:41

but there is no shop conversion.

0:26:410:26:43

In relation to the shops in this area, the council really want

0:26:460:26:50

to hang on to them. We found this out after we bought it.

0:26:500:26:52

There is a lot of money going into this area

0:26:520:26:55

and a lot of regeneration plans so the council, quite rightly so,

0:26:550:26:59

are very keen to hold on to any commercial units.

0:26:590:27:01

So we didn't put a planning application in

0:27:010:27:04

because it would have been a complete waste of time, really, and we put the shop on the market.

0:27:040:27:09

But generally, the people who are interested in buying the shop would want accommodation with it.

0:27:090:27:14

So, really, we have waited until all the flats are done

0:27:140:27:18

until we are seriously going to try and sell it.

0:27:180:27:21

The plan of demolishing part of the rear structure needed a more strategic solution.

0:27:210:27:25

Something we really had to think about quite carefully was

0:27:250:27:28

the removal of rubble from this back building that be demolished.

0:27:280:27:32

Over the back wall here, we've got the supermarket

0:27:320:27:35

and their car park and it probably would have been ideal for us

0:27:350:27:38

if we could have put the skip there and chucked it over the wall.

0:27:380:27:41

But that wasn't so ideal for the supermarket

0:27:410:27:45

so the waste had to be brought through the building to the

0:27:450:27:49

front and put in a big container out there that was on the road.

0:27:490:27:53

We also had scaffolding up.

0:27:540:27:56

That wasn't particularly an issue

0:27:560:27:58

but it does get quite busy around here so you have to be quite careful.

0:27:580:28:02

There are lots of things to think about in relation to

0:28:020:28:05

safety of pedestrians walking underneath,

0:28:050:28:08

especially if you are chucking out large concrete blocks.

0:28:080:28:11

So that side of things, the ripping out, we did have to plan for.

0:28:120:28:16

Deborah put her three month over-run down to the complications

0:28:160:28:20

of a large multistorey building and its plans, but it didn't have a

0:28:200:28:24

massive impact on her budget, which rose from £240,000 to £250,000.

0:28:240:28:30

Deborah wants to sell,

0:28:330:28:35

so we called in two local estate agents to give us their opinions.

0:28:350:28:38

I should imagine any agent would love the commission on this number of flats.

0:28:380:28:43

Deborah's investor, Tony, came along, too.

0:28:430:28:45

They have done a great job. A good build, nice finishes.

0:28:470:28:51

I'm very impressed from what I saw 11 months ago,

0:28:510:28:53

which was somewhat of a disaster. This is wonderful.

0:28:530:28:57

Yes, excellent. Really nice throughout.

0:28:570:28:59

Very fresh, bright and airy.

0:28:590:29:01

The fixtures and fittings are a really nice high standard.

0:29:010:29:04

Yes, it should sell quite quickly.

0:29:040:29:06

The purchase price was 116,000 and the renovations have

0:29:080:29:12

cost £250,000, bringing the total investment to £366,000.

0:29:120:29:18

What resale prices do the agents think the flats will fetch

0:29:180:29:21

and will Deborah have made Tony a handsome profit?

0:29:210:29:25

I would say if these flats were put on the market for sale now,

0:29:280:29:31

they would range from around £70,000 to £80,000.

0:29:310:29:35

Obviously, the ones with the terraces would be at the upper end.

0:29:350:29:39

With the top floor apartment, which is the smallest,

0:29:390:29:42

I would value that in the region of £75,000.

0:29:420:29:45

Then, the one bed first-floor terraced apartment,

0:29:450:29:48

I would value in the region of £95,000.

0:29:480:29:51

The agent who gave the lower valuations feels this area

0:29:510:29:55

isn't quite regenerated sufficiently yet to warrant higher values.

0:29:550:30:00

These lower values give a total of 380,000.

0:30:000:30:04

But the other agent's high valuations total 425,000,

0:30:040:30:10

which would mean a profit of £59,000 minus taxes and expenses.

0:30:100:30:15

But what does investor Tony think of that?

0:30:160:30:19

The first valuation is a little on the low side from what we thought.

0:30:220:30:26

The other one is more or less in line. So we're not too far out.

0:30:260:30:30

It is not too much different.

0:30:300:30:32

Not forgetting the shop,

0:30:320:30:34

where agents valuations range from £70,000 to £100,000.

0:30:340:30:39

Yes, it could make the difference between a profit on this property

0:30:390:30:43

being mediocre to the profit being very attractive.

0:30:430:30:47

So it remains to be seen.

0:30:470:30:50

It still works without the shop but it works a lot better

0:30:500:30:54

if the shop comes in at that sort of valuation for sure.

0:30:540:30:57

An additional £100,000 to the total would certainly make things

0:30:570:31:01

very attractive indeed.

0:31:010:31:03

So was this a good experience for Tony?

0:31:030:31:05

Yes. I think Debbie has learned to put up with me!

0:31:060:31:09

It has been fun, hasn't it?

0:31:110:31:14

I'm sure we will be doing more in the years to come.

0:31:140:31:17

Over to Burslem now, commonly known as the mother town of The Potteries.

0:31:210:31:26

It's one of six that make up Stoke-on-Trent.

0:31:260:31:29

Burslem has historical links to pottery,

0:31:290:31:32

mining and working canal barges.

0:31:320:31:34

A couple of minutes' walk from the local shops and a mile

0:31:350:31:38

from the local train station is the property I am here to see.

0:31:380:31:42

A classic two-bed mid-terrace. A guide price of £49,000-plus.

0:31:420:31:47

Let's see what it's got to show us.

0:31:470:31:50

Well, that's a first! What is the point of that?

0:31:570:32:00

There must be a way of...

0:32:030:32:05

Who would...? Why?

0:32:050:32:07

I mean... Excuse me Mr door-designing person,

0:32:070:32:10

why on earth would you design something like that?

0:32:100:32:13

What is the point of a door that opens halfway that no normal

0:32:130:32:17

sized person could actually get through? Ridiculous!

0:32:170:32:20

They have probably sold it as some additional bonus.

0:32:200:32:23

It's like, "Look, buy a door you can't actually get through.

0:32:230:32:26

"Save energy by not letting as much air out."

0:32:260:32:28

I don't know. Completely bonkers. Anyway, rant over.

0:32:280:32:31

Into the living room and it's not bad. Reasonable-sized ceilings.

0:32:310:32:36

I mean, you know, this is always going to be what it is,

0:32:360:32:39

which is a two-up, two-down terrace in a northern industrial town,

0:32:390:32:45

built for the workers and served that purpose really well indeed.

0:32:450:32:51

Two-up, two-down was how it would have originally been

0:32:510:32:54

so two rooms down here and two bedrooms upstairs.

0:32:540:32:57

And a nice additional bit of space created by the way that under stairs has been sorted.

0:32:570:33:04

Then, as so often happens with these kinds of properties,

0:33:040:33:08

somebody has extended on to the back.

0:33:080:33:10

This would have just been a little courtyard area at the back

0:33:100:33:14

but it has been built on to create single-storey extension housing.

0:33:140:33:18

The kitchen and then through there to the loo.

0:33:180:33:20

That is the only loo and bathroom in the property.

0:33:200:33:23

In other parts of the country, perhaps that might be an issue.

0:33:230:33:26

Around here, it's pretty much what people expect, so it's not a big problem.

0:33:260:33:30

The kitchen, though, is so in need of some updating

0:33:300:33:32

and these things on the wall, just in case you were wondering,

0:33:320:33:35

it's not lino, it's actually individual tiles.

0:33:350:33:38

Somebody has gone to a lot of trouble to get it looking like that.

0:33:380:33:41

Not the height of fashion nowadays, and removing them will be

0:33:470:33:51

just as hard work as putting them up was.

0:33:510:33:54

Let's hope the tiles don't continue upstairs.

0:33:540:33:56

So upstairs and two half-decent sized bedrooms. Very classic layout.

0:33:580:34:03

But while you're up here, take a look out the window and you get

0:34:030:34:06

a chance to see the state of the roof of that extension and

0:34:060:34:09

as you can see, the ridge looks to me like it needs a bit of attention.

0:34:090:34:13

The building itself looks relatively new as does the roof,

0:34:130:34:15

but just that top bit definitely needs sorting out.

0:34:150:34:18

If water got in there it would cause a few problems.

0:34:180:34:21

So a great vantage point just to check things out.

0:34:210:34:25

# Check-check-check-check it out

0:34:250:34:26

# What-what-what's it all about. #

0:34:260:34:29

Even with a relatively low guide price of £49,000,

0:34:290:34:33

roofs and especially leaks must be checked out.

0:34:330:34:36

And there are more joys to behold on the other part of this house,

0:34:360:34:40

not least the plumbing.

0:34:400:34:42

Well, up here on the mini landing in between the two bedrooms,

0:34:440:34:49

another DIY design classic.

0:34:490:34:52

As you can see, a pipe, possibly water, possibly even worse - gas,

0:34:520:34:58

just floating there like that.

0:34:580:35:01

Ready for somebody to trip over or stand on, or whatever.

0:35:010:35:05

Incredible!

0:35:070:35:09

# You got it wrong. #

0:35:090:35:11

Box it in, re-route it,

0:35:110:35:14

just make sure you make it safe for goodness' sake.

0:35:140:35:18

Outside, there's a little yard

0:35:180:35:20

with a shed that has its own roof problems.

0:35:200:35:24

It's all pretty straightforward and could represent a good

0:35:240:35:27

investment at that guide price of 49,000.

0:35:270:35:30

We asked a local property agent for his opinion.

0:35:320:35:35

First impressions of the property is that

0:35:380:35:40

although it has been well maintained over the years,

0:35:400:35:43

it's just really at the point where it needs refurbishment

0:35:430:35:46

and updating, which most new buyers would want to do.

0:35:460:35:50

The main thing the property requires is heating,

0:35:500:35:53

probably gas central heating.

0:35:530:35:55

It does need a new kitchen, new bathroom

0:35:550:35:58

and really complete decor throughout the whole property.

0:35:580:36:02

Quite a long to-do list then.

0:36:020:36:04

In fact, let's face it, it's a total refurbishment.

0:36:040:36:07

But when the to-do list is done, what could the property sell for?

0:36:070:36:11

Once renovated to a good standard,

0:36:110:36:13

I would anticipate a resale value in the region of £70,000 to £75,000.

0:36:130:36:19

And what about rental?

0:36:190:36:20

Rental income after refurbishment would be in the region of £400 per calendar month.

0:36:200:36:26

If this was my property, I think

0:36:260:36:28

I would look to refurbish the property and let the property to

0:36:280:36:32

provide a reasonable income and then look at it as a long-term investment.

0:36:320:36:38

Well, not surprisingly, the first thing I would do

0:36:410:36:43

if I bought this house would be to replace the front door.

0:36:430:36:46

That would drive me absolutely bonkers.

0:36:460:36:48

Apart from that, it's a good, solid little terraced house.

0:36:480:36:52

Not particularly exciting, perhaps, but a reasonable home

0:36:520:36:55

and a great rental opportunity for someone.

0:36:550:36:58

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

0:36:580:37:01

A mid-terraced house.

0:37:050:37:06

It has double glazing, two reception rooms, two bedrooms.

0:37:060:37:09

45 to get it going.

0:37:110:37:12

40 then. There, thank you. £40,000.

0:37:150:37:19

We'll go in twos.

0:37:190:37:21

The bid is at £40,000. 42. 44. 46.

0:37:210:37:25

48. 50.

0:37:250:37:28

At £50,000, seated right. At £50,000. 52.

0:37:310:37:37

No? At £50,000, seated back right then.

0:37:390:37:42

I'm selling it at £50,000 for the first time.

0:37:420:37:45

£50,000 for the second time.

0:37:450:37:48

Third and final time at £50,000

0:37:480:37:51

You have bought it, sir. Well done.

0:37:520:37:54

# Just the two of us

0:37:560:37:59

# We can make it if we try

0:37:590:38:01

# Just the two of us.

0:38:010:38:03

# Just the two of us... #

0:38:030:38:06

The successful bidder was David with £50,000.

0:38:060:38:09

Former electrician David

0:38:090:38:11

and his wife Annemarie have both recently quit

0:38:110:38:14

their careers to become full-time property developers together.

0:38:140:38:18

A brave move.

0:38:180:38:20

I met them at the property to find out more.

0:38:220:38:25

-Annemarie, David, great to meet you both.

-And you.

-Congratulations.

0:38:270:38:31

-Thank you.

-Tell me why you wanted to buy this house here.

0:38:310:38:36

We have been looking at properties in the area.

0:38:360:38:39

We have kind of done our research,

0:38:390:38:42

made a spreadsheet of all the properties in our price range.

0:38:420:38:45

Spreadsheet? That sounds terribly well organised.

0:38:450:38:48

-It was well organised.

-So how many did you look at?

0:38:480:38:52

14, we looked at in the viewing day.

0:38:520:38:55

-Wow!

-And at the auction we narrowed it down to eight.

-Right.

0:38:550:39:00

What was it like going around so many properties in one day?

0:39:000:39:04

Some of them blended into one, really.

0:39:070:39:09

Some we weren't able to time the viewing schedules

0:39:090:39:12

so we just looked from the outside.

0:39:120:39:15

-But this wasn't one of them.

-You did come inside?

-We did come inside.

0:39:150:39:19

Gold star for David and Annemarie.

0:39:190:39:22

Research is a must when taking on a new project never mind a new career.

0:39:220:39:27

The husband-and-wife team are originally from Hertfordshire

0:39:270:39:30

but have chosen Stoke for its more affordable housing.

0:39:300:39:33

Wise move again.

0:39:330:39:35

But what drove them to give up their careers for property development?

0:39:350:39:39

-I was a probation officer for London.

-What were you doing?

0:39:390:39:43

An electrician for 30 years

0:39:430:39:46

but I was a director of an electrical company.

0:39:460:39:48

I was a local councillor so I was getting home at seven o'clock,

0:39:480:39:52

showered, shaved, back out, meeting and we had no time together.

0:39:520:39:56

How recently was this?

0:39:560:39:59

-Three months ago.

-Oh, gosh.

0:39:590:40:01

Did you both then give up your job within what period of time?

0:40:010:40:05

A few weeks of each other.

0:40:050:40:06

-So you went from a steady household income...

-Quite a good income.

0:40:060:40:11

But there's more to life than money.

0:40:110:40:13

-We've got to have quality of life as well.

-Yeah, no, absolutely.

0:40:130:40:16

That search for quality of life means that David and Annemarie have

0:40:170:40:21

clearly made a brave decision.

0:40:210:40:23

I reckon they've chosen a good first project.

0:40:230:40:26

They are doing all the right things

0:40:260:40:28

but it's certainly going to be a steep learning curve

0:40:280:40:31

in the six to eight-week timescale they've set themselves.

0:40:310:40:34

Tell me what you're going to do to it.

0:40:340:40:37

-Everything, I think.

-Right.

0:40:380:40:40

Erm, new kitchen,

0:40:400:40:42

not sure if we're going to try and move the bathroom upstairs.

0:40:420:40:46

Turn the bathroom into a study.

0:40:460:40:49

Check out how much that would add or whatever to the value

0:40:490:40:52

because you might find it doesn't actually add a lot.

0:40:520:40:55

Central heating.

0:40:550:40:57

Central heating, re-plastering, new flooring downstairs.

0:40:570:41:01

-There's quite a lot of work.

-No kidding.

0:41:010:41:04

Have to ask you about the front door.

0:41:040:41:06

Yes, it's tight, isn't it?

0:41:060:41:07

The door seems to be the most ridiculous design I've ever seen.

0:41:070:41:11

Why would it open halfway? I can't figure it out.

0:41:110:41:15

-It will be going.

-Good!

0:41:150:41:16

And then, upstairs on the little landing there's a pipe

0:41:160:41:21

-that's runs across.

-That's plumbers for you.

0:41:210:41:23

The shortest route.

0:41:230:41:25

-It's a classic, is in it?

-I've seen loads of them.

0:41:250:41:28

-It'll be coming out.

-Good.

0:41:280:41:30

So, a long list of jobs but David seems to know what he's doing

0:41:320:41:36

and will do a lot of the work himself which should be a money saver.

0:41:360:41:40

Speaking of which...

0:41:400:41:42

-What's the budget?

-Eight to ten. Hopefully.

0:41:420:41:47

David and Annemarie seem a little nervous but that's to be expected.

0:41:490:41:53

Choosing a smaller, cheaper property to begin with is a smart move.

0:41:530:41:57

What's the idea? Is it to do it up and sell it on or to rent it out?

0:42:010:42:05

Well, we were hoping to do it up and sell it

0:42:050:42:09

and then move to the next one.

0:42:090:42:12

But we have seen some properties in the same area

0:42:120:42:17

that seem to be not as worth as much money

0:42:170:42:19

as what we thought they were. Ah. So we may rent.

0:42:190:42:24

The rental return isn't bad, is it?

0:42:240:42:27

-I haven't really looked into it.

-It isn't bad.

-OK.

0:42:270:42:31

You could start building up a portfolio of properties and before you know it, you've got ten.

0:42:310:42:35

-It's a brave thing you have done.

-Yes!

0:42:350:42:38

-What have your friends or family said?

-Some have said mad but...

0:42:380:42:43

A lot of good wishes but, yeah.

0:42:430:42:47

A bit mad.

0:42:490:42:50

Well, you've got to make a success of it and then you can show them.

0:42:500:42:54

-Yes, exactly.

-Good look with it.

-Thank you very much.

0:42:540:42:57

-Nice to meet you both.

-And you.

-Thank you.

0:42:570:42:59

So, Annemarie and David going from being employed

0:43:010:43:05

to self-employed and becoming property developers.

0:43:050:43:10

Good idea to start small

0:43:100:43:12

and at the lower end of the price bracket with this place in Stoke.

0:43:120:43:17

How will they get on sorting it out? You can find out later in the show.

0:43:170:43:22

We've seen how one of the properties turned out on today's show

0:43:250:43:28

but what about the others?

0:43:280:43:29

Has all the work be done? Let's find out.

0:43:290:43:32

Earlier I was on the west coast of Cumbria

0:43:340:43:37

to see the former post office of Anthorn

0:43:370:43:40

and meet its new owner, retired journalist, Lucilla,

0:43:400:43:43

who bought the '50s shack for £16,000.

0:43:430:43:46

Well, this is interesting, tell me why you wanted to buy it.

0:43:490:43:52

Because I'm looking for a house for my old age.

0:43:520:43:56

I mean, my extreme old age.

0:43:560:43:59

I live with Richard at the moment.

0:43:590:44:01

If he pops his clogs before I do I need somewhere to live.

0:44:010:44:06

-This is all pretty cheerful.

-She thinks I'm going to die first.

0:44:060:44:09

-Really?

-No, it's an insurance.

0:44:090:44:13

When we first saw the post office with outline planning permission

0:44:150:44:18

it was pretty clear that the dilapidated building had to go.

0:44:180:44:22

Two years and five months later, it has.

0:44:240:44:28

Nearly six months later than planned,

0:44:280:44:31

there's the shell of a new building.

0:44:310:44:34

# So it's taking the long way home

0:44:340:44:38

# Because I don't want to be wasting my time alone....#

0:44:390:44:44

But don't panic, Richard hasn't, to borrow Lucilla's words,

0:44:440:44:48

popped his clogs just yet.

0:44:480:44:51

He's busy looking after his sheep and toads.

0:44:510:44:53

The building's footprint is definitely larger

0:44:560:44:59

but what caused the major delays with the project?

0:44:590:45:02

It took much longer to sell my own house than I thought it would.

0:45:030:45:07

In fact, it took probably a year

0:45:070:45:10

although I had a buyer from day one.

0:45:100:45:13

It took them that long to get a mortgage.

0:45:130:45:16

Lucilla also had trouble getting planning permission.

0:45:160:45:20

In the 1940s, the village was host to an airbase

0:45:200:45:23

and transmitting station known as HMS Nuthatch.

0:45:230:45:26

There were concerns Lucilla might be building on land

0:45:260:45:30

contaminated with waste from the base.

0:45:300:45:33

Eventually, she overcame this unforeseen issue.

0:45:330:45:36

All I had to do was provide a statement and a map

0:45:360:45:40

showing the layout of the old airfield and that was that.

0:45:400:45:46

With planning permission granted,

0:45:460:45:48

it took just two days to demolish the old building

0:45:480:45:51

and work on the new energy-saving building could begin.

0:45:510:45:55

It's made of solid blocks with the insulation on the outside,

0:45:550:46:00

covered by a metal mesh and then rendered.

0:46:000:46:04

This makes the blocks act like a storage heater.

0:46:040:46:09

I'm having underfloor heating

0:46:090:46:12

and apparently you need very little input of heat of any sort,

0:46:120:46:17

whatever sort of heat you have, you need very little of it.

0:46:170:46:20

With no gas in the village, Lucilla has opted for electric heating

0:46:200:46:25

of the floors plus a wood burning stove.

0:46:250:46:28

The solar panels will also help with the economy of the building

0:46:280:46:31

but the delays must have had an impact on the budget.

0:46:310:46:35

I've never known building materials to get cheaper as time goes on.

0:46:350:46:39

I had thought perhaps in the region of 100,000.

0:46:410:46:46

But I can see now that was unrealistic.

0:46:470:46:50

I've already spent 85,000...

0:46:500:46:54

That's everything from the very, very start to now.

0:46:540:46:59

Every last little thing has been logged down at 85,000

0:46:590:47:03

but as you can see I've still got quite a long way to go.

0:47:030:47:08

So, more realistically, and this is clawing back

0:47:080:47:13

on some of my original plans and ideas, probably 130.

0:47:130:47:18

When Lucilla says everything, she's included

0:47:180:47:22

the original purchase price of £16,000 in her total.

0:47:220:47:25

But even after clawing back it does seem a generous space.

0:47:250:47:30

This is the main bedroom.

0:47:310:47:33

Through the door to the small bathroom.

0:47:330:47:37

Utility room.

0:47:380:47:40

And along the corridor, that's the front door by the way,

0:47:410:47:45

main living room, kitchen.

0:47:470:47:50

Kitchen at that end, living room with the wood-burning stove there.

0:47:500:47:55

Through this door to the study come bedroom.

0:47:550:47:59

And she's estimating another six months to completion

0:48:000:48:03

of what she calls, her insurance.

0:48:030:48:06

# So it's taking the long way home

0:48:060:48:09

# Because I don't want to be wasting my time alone...#

0:48:100:48:15

Lucilla's never happier than when she's gardening.

0:48:190:48:21

She's got grand plans on the horticultural front.

0:48:210:48:25

That's the one bit of the house I can actually envisage.

0:48:250:48:29

I'm having a paved area surrounded by shrubs and fruit trees,

0:48:290:48:34

and perennial, big perennial flowers

0:48:340:48:37

that attract butterflies and insects.

0:48:370:48:40

At the back I'm having, I'm hoping to have similar fruit trees

0:48:400:48:46

and bushes around the perimeter and some raised beds for vegetable growing.

0:48:460:48:51

And some grass, of course, as well.

0:48:510:48:54

We know it's not finished yet but we asked two local estate agents

0:48:560:48:59

to come and imagine it is finished, and given some valuations.

0:48:590:49:05

The layout is really nice.

0:49:050:49:06

They've got a big open-plan kitchen diner come lounge.

0:49:060:49:11

That's quite good. Taking advantage of the views and things

0:49:110:49:14

and still two decent sized bedrooms.

0:49:140:49:16

One of which could be used as a study. It's looking good.

0:49:160:49:19

Selling points of the property are it's simple, compact

0:49:190:49:23

and you get a spacious layout

0:49:230:49:24

and the views to the rear and side of the property.

0:49:240:49:27

If Lucilla does decide to rent the property

0:49:270:49:30

what sort of figure can she expect?

0:49:300:49:33

Once complete in the rental market I would expect the property

0:49:330:49:36

to achieve in the region of £370-£395 per calendar month.

0:49:360:49:41

If this property was to come on the rental market once completed

0:49:410:49:44

I would expect it to achieve between £450-£500 per calendar month.

0:49:440:49:48

I think that's fairly high for around here but possible,

0:49:480:49:52

feasible for a nice and decent house.

0:49:520:49:56

Assuming her overspend doesn't get any bigger,

0:49:560:49:59

Lucilla's total investment will be 130,000.

0:49:590:50:03

The average of the rental figures would give her

0:50:030:50:06

a yield of nearly 4%.

0:50:060:50:08

What about the very unlikely event that she decided to sell?

0:50:080:50:12

On the open market in terms of a valuation,

0:50:120:50:15

a property like this, it's a little difficult when it's a shell,

0:50:150:50:18

but I would imagine it would be somewhere in the region of £100,000.

0:50:180:50:22

You'd achieve offers in the region of £90,000 but pricing slightly

0:50:220:50:26

higher at £100,000 in order to achieve those offers.

0:50:260:50:29

The figures don't sway my opinion at all.

0:50:290:50:33

I know what I'm building the house for and I know...

0:50:340:50:38

..I know what I want at the end of the day.

0:50:390:50:42

And, erm, it's incidental.

0:50:420:50:46

Back to Burslem in the Potteries now where this two-bedroom mid-terrace

0:50:510:50:55

was snapped up by David and Annemarie for £50,000,

0:50:550:50:59

just £1,000 more than the guide price.

0:50:590:51:03

The plan was to do up and sell on

0:51:030:51:05

but now they're looking at renting out.

0:51:050:51:08

It was a brave career changing move into property development

0:51:080:51:11

for them both.

0:51:110:51:12

You've given up your jobs to do this.

0:51:120:51:15

What were you doing until recently?

0:51:150:51:17

-I was a probation officer for London.

-Oh, wow. And what were you doing?

0:51:170:51:21

Electrician for 30 years but I was a director of an electrical company.

0:51:220:51:26

Needing more time together and with family, it was time for a change.

0:51:260:51:31

But it was far from a gentle start with plenty of rework to be done.

0:51:310:51:36

Re-plastering, re-plumbing, redecorating

0:51:360:51:39

besides the more familiar territory of rewiring.

0:51:390:51:42

Ten months on, we're back to find out

0:51:440:51:46

if David can make sparks fly in the room we last saw looking like this.

0:51:460:51:51

# This ain't real, this ain't cool

0:51:530:51:56

# This ain't what I signed up to

0:51:560:51:58

# This ain't right, it's no good

0:51:580:52:02

# No good...#

0:52:020:52:04

Let's see.

0:52:040:52:05

# Everything is changing

0:52:050:52:08

# And I've been here for too long

0:52:080:52:10

# Going through the same things

0:52:100:52:13

# I've been hurting too long, got to move on

0:52:130:52:16

# Say I can't do this any more

0:52:160:52:21

# If everything is changing

0:52:210:52:24

# And I know

0:52:240:52:26

# You've got to let go

0:52:260:52:29

# Oh-oh-oh, oh-oh-oh...#

0:52:290:52:32

At the far end of the extension was the only bathroom in the house.

0:52:330:52:38

This suite may have been de rigueur in the 1980s

0:52:380:52:42

but now pampas is definitely past it.

0:52:420:52:44

# Oh-oh-oh, oh-oh-oh

0:52:440:52:47

# Got to let go....#

0:52:470:52:49

The bathroom's taken over part of the largest bedroom.

0:52:510:52:55

Ingenious plumbing through the attic makes these facilities much more on-tap.

0:52:550:53:00

And for the effect it's had on the bedroom, I think it's well worth it.

0:53:070:53:11

# Everything is changing

0:53:120:53:15

# I've been here for too long

0:53:150:53:18

# Going through the same things...#

0:53:180:53:20

The front bedroom decor was definitely '70s vintage.

0:53:220:53:26

Time for a change.

0:53:260:53:28

# Everything is changing

0:53:290:53:32

# And I know, yeah...#

0:53:320:53:34

All new electrics, central heating and carpeting

0:53:360:53:39

completes the refurbishment of the upstairs.

0:53:390:53:42

But what of the rest of downstairs?

0:53:420:53:44

Well, Dave's work down here produced results

0:53:440:53:47

nothing short of electrifying.

0:53:470:53:49

# Oh-oh-oh, oh-oh-oh

0:53:520:53:54

# Got to let go

0:53:540:53:57

# I've been here for too long

0:53:570:54:00

# I've been here for too long...#

0:54:000:54:02

A bright colour scheme with contrasting wood floors gives

0:54:020:54:05

a contemporary feel to the downstairs rooms.

0:54:050:54:08

# I've been here for too long

0:54:100:54:13

# Everything is changing...#

0:54:130:54:16

Dave's been living here for ten weeks. How's he found it?

0:54:200:54:23

We were hoping to take six to eight weeks.

0:54:230:54:26

Er, but we decided to extend the kitchen, take the wall down.

0:54:260:54:32

By removing this wall they were able to get more galley kitchen area.

0:54:320:54:37

Yet, there was still enough remaining space for a utility/cloak room.

0:54:370:54:41

All of these things added to the overrun on the time scale,

0:54:410:54:45

but how did the budget fare?

0:54:450:54:48

We originally budgeted to spend between £8,000-£10,000.

0:54:480:54:53

I think it's coming in at around £12,500 which includes the fees.

0:54:530:54:59

Annemarie reckons the kitchen tiles and the wood flooring

0:54:590:55:02

were the main reasons they exceeded their budget.

0:55:020:55:06

To cut costs, David did most of the work himself

0:55:060:55:08

apart from the plastering and plumbing.

0:55:080:55:11

Speaking of plumbers, what happened about that halfway landing pipe?

0:55:110:55:15

The dreaded pipe at the top of the stairs

0:55:170:55:20

was the main gas pipe coming in.

0:55:200:55:22

When the heating engineers came in they couldn't believe that

0:55:220:55:25

a gas pipe was just there.

0:55:250:55:27

They installed new central heating, new pipe work throughout.

0:55:270:55:32

Stripping out the garden shed was done with

0:55:320:55:35

the help of Anne-Marie's son and daughter

0:55:350:55:37

and the extension roof ridge has been fixed.

0:55:370:55:40

How does it feel after that little lot?

0:55:400:55:43

A lot of time, blood, effort, lost 2½ stone. So...

0:55:430:55:48

-No, feel really...

-Proud of the end product.

-Really proud.

0:55:500:55:53

I think they've got every reason to be proud.

0:55:550:55:57

They've done a great job and used the space brilliantly.

0:55:570:56:00

However, I'm a bit worried didn't take my advice

0:56:000:56:03

about not moving the bathroom.

0:56:030:56:05

They may not get back what it cost.

0:56:050:56:07

Time to ask two local estate agents that vital question.

0:56:100:56:14

Will the plan to sell on be viable?

0:56:140:56:17

Firstly though, they must be impressed.

0:56:170:56:20

The changes have been really good to the property.

0:56:200:56:23

It's modern, neutral, it's all fresh and clean and tidy inside.

0:56:230:56:28

It really would appeal to broad types of different buyer.

0:56:280:56:31

I feel the main selling points for the property

0:56:310:56:34

is the good-sized kitchen and installation

0:56:340:56:36

of a first-floor bathroom along with the downstairs WC and utility room.

0:56:360:56:40

The total investment so far as up to £62,000.

0:56:400:56:45

What's it worth now?

0:56:450:56:46

If I were to market the property in today's market

0:56:460:56:49

I would suggest an initial asking price of £72,500.

0:56:490:56:53

I would place this property on the market in the region of £75,000.

0:56:530:56:59

We were hoping for 75,000 rather than 70-72,500.

0:56:590:57:03

So, 75 we would be happy with.

0:57:040:57:07

And as for the rental?

0:57:070:57:09

In today's market, I would suggest for the rental side,

0:57:090:57:12

we'd put the property on the market at £395 per calendar month.

0:57:120:57:16

I would anticipate a likely rental income

0:57:160:57:19

in the region of £400 per calendar month.

0:57:190:57:21

Taking the average of those two valuations would give

0:57:210:57:25

David and Annemarie a yield of just over 7.5%.

0:57:250:57:28

Are they tempted?

0:57:280:57:30

After getting the valuations, we will be sticking with our original

0:57:300:57:36

plan of selling the property on so we can move on to our next project.

0:57:360:57:39

I can't say I blame them.

0:57:410:57:42

They're looking at a potential profit of £12,500.

0:57:420:57:45

Not bad at all for their first project.

0:57:450:57:48

But this project wasn't about the money, what about the time together?

0:57:480:57:52

-It's been good working together.

-Yes. Without arguing.

0:57:530:57:57

Without arguing.

0:57:570:57:59

For me, I just wish they could have stretched

0:57:590:58:02

to a normal-sized front door.

0:58:020:58:06

Well, more property owners there who took the plunge

0:58:060:58:12

and bought at auction.

0:58:120:58:14

Make sure you join us next time for more Homes under the Hammer.

0:58:140:58:17

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