0:00:02 > 0:00:05Hello. Auctions give you such a huge choice at some very good prices
0:00:05 > 0:00:07and that's why they've become increasingly popular.
0:00:07 > 0:00:11Yes, with thousands of auctions happening up and down the country,
0:00:11 > 0:00:14maybe it's time for you to consider buying your next home
0:00:14 > 0:00:15under the hammer.
0:00:41 > 0:00:43Well, when it comes to buying property,
0:00:43 > 0:00:46there are lots of tricks of the trade
0:00:46 > 0:00:48that seasoned developers like Lucy and I know.
0:00:48 > 0:00:50There's no getting away from it,
0:00:50 > 0:00:53for the first timer, ha! There's just an awful lot to learn.
0:00:53 > 0:00:58So, was it first-timers, or experts and seasoned property buyers
0:00:58 > 0:01:01who bought the properties on today's show?
0:01:03 > 0:01:05In Staffordshire, with a bit of work,
0:01:05 > 0:01:08this house could really blossom.
0:01:08 > 0:01:11What an absolute delight.
0:01:13 > 0:01:14Whereas in Middlesex,
0:01:14 > 0:01:18I see a building with plenty of room to grow.
0:01:18 > 0:01:19Wow!
0:01:19 > 0:01:22It's vast, it's huge.
0:01:22 > 0:01:27And in Derbyshire, have I unearthed a real gem?
0:01:27 > 0:01:31I think there's more to this property than meets the eye.
0:01:33 > 0:01:35All of these properties have been sold at auction.
0:01:35 > 0:01:38We'll find out who bought them and what they paid for them
0:01:38 > 0:01:40when they went under the hammer.
0:01:40 > 0:01:42You got it, sir, well done.
0:01:48 > 0:01:50The town of Newcastle-under-Lyme
0:01:50 > 0:01:53sits close to Stoke-on-Trent and The Potteries.
0:01:53 > 0:01:56And here's a bit of history for you.
0:01:56 > 0:01:58In the early 19th century,
0:01:58 > 0:02:01the town had a flourishing hat-making industry
0:02:01 > 0:02:03and, at the peak of production,
0:02:03 > 0:02:07it's estimated that a third of the population were making hats.
0:02:10 > 0:02:12The hat factories are long gone
0:02:12 > 0:02:16and the town's prosperity now derives from a variety of sources.
0:02:16 > 0:02:18With its proximity to the M6,
0:02:18 > 0:02:22Newcastle-Under-Lyme is now regarded as a commuter town,
0:02:22 > 0:02:26with residents having easy access to Birmingham and Manchester.
0:02:28 > 0:02:31Well, three miles from the centre of Stoke,
0:02:31 > 0:02:35in the Porthill area of Newcastle-Under-Lyme
0:02:35 > 0:02:37is the property I'm here to see.
0:02:37 > 0:02:40£95,000 plus was the guide price for this,
0:02:40 > 0:02:42a three-bedroomed semidetached.
0:02:42 > 0:02:46It looks pretty tidy from the outside.
0:02:46 > 0:02:47Let's take a look.
0:02:51 > 0:02:55So, what do you get for your money? Let's have a look.
0:02:55 > 0:02:56Stairs and two bedrooms there
0:02:56 > 0:03:00and then through into your front living room, nice bay window,
0:03:00 > 0:03:03we like that, lots of light pouring in, which is good.
0:03:03 > 0:03:06Um, fireplace at a kind of angle,
0:03:06 > 0:03:09which actually creates a nice-ish feature
0:03:09 > 0:03:12but it doesn't half chomp into this room rather
0:03:12 > 0:03:16and certainly that fireplace looks pretty old, so you'd want to have that checked out.
0:03:16 > 0:03:21But it's mirrored on this side, in the second living room area,
0:03:21 > 0:03:23by another fireplace there, again at this angle.
0:03:23 > 0:03:28Um, it's a feature, for sure. Um, that bit is fine.
0:03:28 > 0:03:31It all starts to go a little bit pear-shaped
0:03:31 > 0:03:34when you come through here.
0:03:34 > 0:03:37Um, explore that in a second.
0:03:37 > 0:03:39This is the kitchen.
0:03:39 > 0:03:43It's built into an extension on the back and it's not a bad size.
0:03:43 > 0:03:46Obviously, you're going to have to fit in new units,
0:03:46 > 0:03:48but you've got these corridor things going on.
0:03:48 > 0:03:52There's a little corridor down there leading to a downstairs loo,
0:03:52 > 0:03:54which is nice to have.
0:03:54 > 0:03:57But again, the access is a bit strange and then through here,
0:03:57 > 0:04:02um, to this little, sort of porch, stroke conservatory, stroke...
0:04:02 > 0:04:05I don't know whatever you'd call this, obviously added on.
0:04:05 > 0:04:10It's almost like this bit of the house has had a bit added on and another bit to make that on...
0:04:10 > 0:04:12o, the result is a bit of a hotchpotch,
0:04:12 > 0:04:15so certainly some work required here but,
0:04:15 > 0:04:17a reasonable amount of space for your money.
0:04:20 > 0:04:23Despite the messy layout, I'm pretty happy with the downstairs.
0:04:25 > 0:04:29But in order to maximise this property's potential, I think
0:04:29 > 0:04:31a spot of rationalisation is in order.
0:04:32 > 0:04:35# Something better change
0:04:35 > 0:04:39# I said something better change... #
0:04:39 > 0:04:42A change definitely needs to be made at the back.
0:04:42 > 0:04:45There's enough space here to create a really nice,
0:04:45 > 0:04:47dining/kitchen area,
0:04:47 > 0:04:50the first step towards making a really good family home.
0:04:50 > 0:04:53Let's have a look at the upstairs.
0:04:53 > 0:04:56Hah! Tell you one thing that is interesting.
0:04:56 > 0:04:59I don't know about you, but my mum and dad always had these
0:04:59 > 0:05:02kinds of carpets and they were sold as ones that were going to
0:05:02 > 0:05:04last for years and years and years and years
0:05:04 > 0:05:07and you come into houses like this and other bits and pieces
0:05:07 > 0:05:10may have gone wrong but the carpets have always survived,
0:05:10 > 0:05:13so that particular carpet salesman was telling the truth!
0:05:13 > 0:05:17Lecture about fantastic carpets over! What have we got here?
0:05:17 > 0:05:20Basically, three bedrooms, two decent-sized ones,
0:05:20 > 0:05:22one there, and one incredibly small box room.
0:05:22 > 0:05:25Yeah, that's more of a study, to my mind. And then the bathroom.
0:05:25 > 0:05:31I mean, at least it is upstairs. However...ahem! Yeah.
0:05:31 > 0:05:36Needs a bit of work in here. The bath. Not particularly large.
0:05:37 > 0:05:41Still, a bit of creativity and you could create yourself a nice room.
0:05:41 > 0:05:44At least it's where it should be. Upstairs.
0:05:46 > 0:05:49The two main bedrooms are a reasonable size
0:05:49 > 0:05:54and, as downstairs, have the angled fireplaces.
0:05:54 > 0:05:58So far, this guide price of £95,000 is looking quite a bargain.
0:05:59 > 0:06:03But it's outside that might hold the key to the future of this place.
0:06:05 > 0:06:10At the back of the property, access to the garage there
0:06:10 > 0:06:13and then, what an absolute delight.
0:06:13 > 0:06:15Look at this.
0:06:15 > 0:06:20This clearly was somebody's pride and joy and you can tell.
0:06:20 > 0:06:21I mean, it's interesting, isn't it?
0:06:21 > 0:06:25Property stuff you could do quite quickly, but to establish
0:06:25 > 0:06:30a garden like this with these lovely bushes takes ages. Years, actually.
0:06:30 > 0:06:35And it's here for you, so a real bonus and I just hope that whoever
0:06:35 > 0:06:39bought it's a gardener, because this is something to treasure.
0:06:44 > 0:06:46In addition to the lovely garden,
0:06:46 > 0:06:49there's also a large amount of space to play with.
0:06:49 > 0:06:52Are you thinking what I'm thinking?
0:06:52 > 0:06:56Let's ask a local property expert to see what he's thinking.
0:06:58 > 0:07:01Utilising the large garden, I think there is
0:07:01 > 0:07:04a possibility for an extension, perhaps single storey or even
0:07:04 > 0:07:06two-storey and I think that would really add
0:07:06 > 0:07:08to the value of the property.
0:07:11 > 0:07:13Yes, great minds think alike.
0:07:13 > 0:07:15It makes perfect sense to
0:07:15 > 0:07:19add either a one- or two-storey extension onto the house.
0:07:19 > 0:07:21So, let's talk money.
0:07:21 > 0:07:25What kind of resale value would you be looking at?
0:07:25 > 0:07:29In the property's current status, I think if it were fully modernised,
0:07:29 > 0:07:33I'd expect it to be on the market in the region of £130,000.
0:07:33 > 0:07:36And if you were to put it up for rental?
0:07:36 > 0:07:38If this property were to be rented out,
0:07:38 > 0:07:42I'd be expecting to achieve in the region of £600 per calendar month.
0:07:42 > 0:07:44What if the property was extended?
0:07:44 > 0:07:46Should the property be extended,
0:07:46 > 0:07:50perhaps with a nice modern dining/kitchen to the rear, I think,
0:07:50 > 0:07:54realistically, you could be expecting £150,000.
0:07:56 > 0:08:00Well, it's a fine house in a really nice area.
0:08:00 > 0:08:05It just needs a bit of modernisation to bring it up to standard.
0:08:05 > 0:08:07Yes, good feel about this one.
0:08:07 > 0:08:11Let's see who agreed when it went under the hammer.
0:08:11 > 0:08:13Right, lot number 38. It's a double-bay-fronted,
0:08:13 > 0:08:17three-bedroom semidetached house which does need updating. 78, then.
0:08:17 > 0:08:21Are we going to go with 78? 78 bid, thank you. Thank you.
0:08:21 > 0:08:23£78,000. 80, going to say now?
0:08:23 > 0:08:26At £78,000. Looking for 80 now.
0:08:26 > 0:08:29At £78,000. 80.
0:08:29 > 0:08:3582, 82. 84. 86.
0:08:35 > 0:08:4086. 88. 90.
0:08:40 > 0:08:46No? At £88,000, standing right at £88,000. I'll take 89 if it helps.
0:08:46 > 0:08:4989 on the front row. At 89.
0:08:49 > 0:08:5290. New bid at 90.
0:08:52 > 0:08:5591. 92.
0:08:55 > 0:08:5893. 94.
0:08:58 > 0:09:0295. 96.
0:09:02 > 0:09:03Shaking his head.
0:09:03 > 0:09:0896, far left at £96,000. 97 anywhere else?
0:09:08 > 0:09:12If not, I'm selling it at £96,000 for the first time.
0:09:12 > 0:09:15£96,000 for the second time.
0:09:15 > 0:09:19Third and final time at £96,000.
0:09:19 > 0:09:21You bought it, sir. Well done.
0:09:23 > 0:09:27And that successful bid of £96,000 was made by Darryl,
0:09:27 > 0:09:31who has just started a property-development business.
0:09:31 > 0:09:33This is his first project.
0:09:37 > 0:09:41- Darryl, good to meet you.- Good to meet you.- Congratulations.- Thanks.
0:09:41 > 0:09:43Nice house. Tell me why you wanted to buy it.
0:09:43 > 0:09:46I was looking for a place, a place to live, really.
0:09:46 > 0:09:48I'm living in an apartment at the moment.
0:09:48 > 0:09:50I used to live locally in this area.
0:09:50 > 0:09:54- I actually really like the feel of the house, so I thought... - Yeah, definitely.- ..I'd live in it.
0:09:54 > 0:09:57It ticked all the boxes, really. A couple of bedrooms.
0:09:57 > 0:09:58It's got a garage.
0:09:58 > 0:10:01I've got a little car that I want to keep in there. The garden is lovely.
0:10:01 > 0:10:04It's a little bit small upstairs but, to be fair,
0:10:04 > 0:10:06I wanted something that I could actually get my teeth into.
0:10:06 > 0:10:11Something I could put my stamp on. So this is great.
0:10:11 > 0:10:14So tell me what you are going to do to sort it out.
0:10:14 > 0:10:17Well, I'd like to sort make it quite open plan, sort of thing.
0:10:17 > 0:10:20- I'm going to knock it straight the way through.- Right.
0:10:20 > 0:10:24- And that includes the sort of fire breast?- Yeah.
0:10:24 > 0:10:25I want to take all the fire breast down.
0:10:25 > 0:10:28I know it seems quite a lot...bit of character in the house,
0:10:28 > 0:10:30but it just takes up a huge amount of room.
0:10:30 > 0:10:31There's going to be an extension.
0:10:31 > 0:10:33This extension is actually coming down
0:10:33 > 0:10:36and there's going to be a full-width extension on the back.
0:10:36 > 0:10:39- So single-storey extension, or double-storey extension?- Single.
0:10:39 > 0:10:43- Right.- Single. So it's quite a big difference downstairs.
0:10:43 > 0:10:46Upstairs, exactly as it is, pretty much. Just with a bathroom.
0:10:46 > 0:10:49Do you have any idea of price for the work you're planning?
0:10:49 > 0:10:53It's going to be roughly between £20-25,000, I would have thought.
0:10:53 > 0:10:56And what are you planning to do personally?
0:10:56 > 0:10:59A lot of the labour work, a lot of the groundwork.
0:10:59 > 0:11:02I can do quite a bit of plumbing.
0:11:02 > 0:11:05I'll leave pretty much most of the gas stuff to the guys,
0:11:05 > 0:11:08the professional guys, but laying pipes, cutting floorboards, that
0:11:08 > 0:11:12type of thing, painting, knocking down walls, it's not an issue.
0:11:14 > 0:11:18It sounds like Darryl is pretty handy when it comes to DIY
0:11:18 > 0:11:21and so he should save a packet on the renovation.
0:11:21 > 0:11:25Given the amount of work he's contemplating, I think
0:11:25 > 0:11:30he's treating this place as a home, rather than as an investment.
0:11:30 > 0:11:33You must really love this house. You're doing a heck of a lot to it, aren't you?
0:11:33 > 0:11:37Yeah, yeah. I think so. I think I got it for really good value at the auction,
0:11:37 > 0:11:39so I think, well, it's worth a little bit more spending on it.
0:11:39 > 0:11:43Especially that I'm living in it.
0:11:43 > 0:11:45Even if I come to sell it, probably in a couple of years' time,
0:11:45 > 0:11:48I think I might just get my money back.
0:11:48 > 0:11:50As long as I break even, that's not a problem to me.
0:11:50 > 0:11:53I want a comfortable space to actually live in.
0:11:53 > 0:11:55- What's the timescale?- It would be about eight weeks.
0:11:55 > 0:11:59- And then more projects like this in the future?- Yeah, hopefully.
0:11:59 > 0:12:02It's looking good at the minute. Got a few irons in the fire.
0:12:02 > 0:12:05Well, listen, congratulations. Good luck with it.
0:12:05 > 0:12:09- I'm looking forward to seeing how you get on.- Wonderful. Thank you.
0:12:09 > 0:12:14So, a new home for Darryl and some fairly major changes
0:12:14 > 0:12:19afoot for the property. Definitely at the back here.
0:12:19 > 0:12:23You won't recognise it when we return. Probably.
0:12:23 > 0:12:26You can find out what happens later in the show.
0:12:30 > 0:12:35Ah, well - we might not recognise THAT property when we come back
0:12:35 > 0:12:39but do you recognise where I am now? So where am I?
0:12:39 > 0:12:43Go on, have a look around. Where do you reckon? A rural Kentish village?
0:12:43 > 0:12:45Wiltshire market town? Nope!
0:12:45 > 0:12:50This is Denham, two minutes from the M40, 20 minutes by train
0:12:50 > 0:12:54into Marylebone station and two miles from the nearest Tube station.
0:12:54 > 0:12:58Yes, the London Underground. Hard to believe, I know!
0:12:59 > 0:13:02But of course, these kind of surroundings come at a price.
0:13:03 > 0:13:07For instance, a four-bed cottage in Denham will set you
0:13:07 > 0:13:09back around one and a half million quid.
0:13:10 > 0:13:14But the property I'm here to see is one mile down the road in New Denham,
0:13:14 > 0:13:19where prices are bit more reasonable. So what was on offer?
0:13:19 > 0:13:23Well, it's this - a former pub which has planning permission
0:13:23 > 0:13:29for four two-bedroom flats and had a guide price of just £375,000.
0:13:31 > 0:13:35It's a lot of property in a desirable area
0:13:35 > 0:13:38with planning permission already in place.
0:13:38 > 0:13:42The building itself is actually really rather attractive.
0:13:42 > 0:13:45With all that you'd want from what was once a country pub
0:13:45 > 0:13:48but I'm not going in just yet.
0:13:48 > 0:13:51When you're viewing a house, the first thing you want to do is
0:13:51 > 0:13:54get through that door and check it out.
0:13:54 > 0:13:59Here, well, it's important to take in everything around the property.
0:13:59 > 0:14:01First, well, the road.
0:14:01 > 0:14:05It's nice and residential, perfect for new homes, which is great.
0:14:05 > 0:14:08Secondly, the space around the property. Well, it's very good.
0:14:08 > 0:14:11You've got a really nice area at the front
0:14:11 > 0:14:13so the flats will be set back off the road.
0:14:13 > 0:14:15And at the back, hah!
0:14:15 > 0:14:19Tonnes of parking, which is essential for any development
0:14:19 > 0:14:23and it won't clutter up the road. Third, well, access will be easy.
0:14:23 > 0:14:27You've got a corner plot, so no traipsing materials through
0:14:27 > 0:14:30the building and of course, you've got plenty of space for skips.
0:14:30 > 0:14:33So all good out here. Now, let's get inside!
0:14:39 > 0:14:42Wow! It's vast. It's huge.
0:14:42 > 0:14:45Straight in the door and, er, straight into the bar area.
0:14:45 > 0:14:48You've got a seating area down to your right.
0:14:48 > 0:14:51That seems to stretch a long way. I can't even see the end of it.
0:14:51 > 0:14:54Down at the other end, more seating area.
0:14:54 > 0:14:58You've got loads of tables and chairs here and a little servery area here.
0:14:58 > 0:15:00Do you know what's important, though?
0:15:00 > 0:15:04It's what's planned for this place, not what we can really see now.
0:15:04 > 0:15:07Unfortunately, I can't show you the actual drawings
0:15:07 > 0:15:10but I can tell you that there's going to be two flats on the ground floor,
0:15:10 > 0:15:13one on the left and one on the right of the building.
0:15:13 > 0:15:14The bedrooms are going to be to the front,
0:15:14 > 0:15:18the kitchen living room and open plan living space is all going to be at the back.
0:15:18 > 0:15:21Now, the same layout will be upstairs, but a little bit smaller.
0:15:21 > 0:15:24Each flat has got its own little garden at the back -
0:15:24 > 0:15:26which is really nice -
0:15:26 > 0:15:28and the facade of the pub will remain unchanged,
0:15:28 > 0:15:32which I think is so important to the overall street scene.
0:15:32 > 0:15:35So, it all seems pretty straightforward.
0:15:35 > 0:15:38I'm going to explore a little bit more.
0:15:38 > 0:15:41Yes, I am going to try and drink it all in!
0:15:42 > 0:15:45And, boy, there's a lot of space and a lot of rooms!
0:15:45 > 0:15:49Times are a-changing, and with so much pressure to create housing,
0:15:49 > 0:15:51former commercial sites like local shops,
0:15:51 > 0:15:55petrol stations and the good old British pub are disappearing.
0:15:55 > 0:16:01# The barman's calling out "Last orders"
0:16:01 > 0:16:07# I doubt if I'm going to be one of the first to leave...#
0:16:07 > 0:16:11But all these rooms will go, possibly only leaving the facade,
0:16:11 > 0:16:15and are four two-bedroom flats really the best use of this
0:16:15 > 0:16:21mouth-watering auction lot that was guided at £375,000?
0:16:21 > 0:16:23Time, ladies and gentlemen...
0:16:23 > 0:16:26to see what a local estate agent thinks.
0:16:27 > 0:16:28Having looked at the plans,
0:16:28 > 0:16:32this is a good use of this particular development.
0:16:32 > 0:16:35Flats are in high demand in this particular area.
0:16:36 > 0:16:40But how does he think you would best maximise the site?
0:16:40 > 0:16:43The best way to go about developing this property
0:16:43 > 0:16:45would be to maximise the number of units -
0:16:45 > 0:16:47small and numerous.
0:16:47 > 0:16:49The more properties you have here,
0:16:49 > 0:16:52the maximum amount of return you are going to get at the end of the day.
0:16:52 > 0:16:54Ah, speaking of returns...
0:16:54 > 0:16:57What could a two-bed flat be worth on the local market -
0:16:57 > 0:16:59both for resale and rental?
0:17:00 > 0:17:04A two-bed property would go for £210,000 to £225,000.
0:17:07 > 0:17:11The rental on a two-bed property would be approximately
0:17:11 > 0:17:13£1,050 per calendar month.
0:17:14 > 0:17:19So, four flats could net £900,000, on the resale market.
0:17:19 > 0:17:21And even with build costs,
0:17:21 > 0:17:24that could make for a tasty profit.
0:17:25 > 0:17:26It really is a shame -
0:17:26 > 0:17:29the pub appears to have pulled its last pint.
0:17:29 > 0:17:32But at least the plans don't disrupt the street scene,
0:17:32 > 0:17:35and give first-time buyers chance to put down roots
0:17:35 > 0:17:37in this somewhat secret suburb.
0:17:38 > 0:17:42Let's find out who wanted to take the project on at the auction.
0:17:45 > 0:17:48Right, Lot 31 is Nine Stiles, Denham,
0:17:48 > 0:17:50a well-located former public house.
0:17:50 > 0:17:53You've got planning to convert to four two-bedroom flats.
0:17:53 > 0:17:57I will start 350, go upwards from there.
0:17:57 > 0:17:59Not going to go below 350.
0:17:59 > 0:18:01355.
0:18:01 > 0:18:03355.
0:18:03 > 0:18:04360.
0:18:04 > 0:18:06365.
0:18:06 > 0:18:07370.
0:18:07 > 0:18:08375.
0:18:08 > 0:18:09380.
0:18:09 > 0:18:11385.
0:18:11 > 0:18:13390.
0:18:13 > 0:18:15395.
0:18:15 > 0:18:16400.
0:18:16 > 0:18:18405.
0:18:18 > 0:18:19405.
0:18:19 > 0:18:20410.
0:18:20 > 0:18:21415.
0:18:23 > 0:18:25415, right at the back,
0:18:25 > 0:18:27420. 425...
0:18:29 > 0:18:31Right at the back, 425.
0:18:31 > 0:18:33425.
0:18:33 > 0:18:36430. 435 at the back.
0:18:37 > 0:18:40435, got you, just.
0:18:40 > 0:18:41440.
0:18:41 > 0:18:43445.
0:18:43 > 0:18:45445.
0:18:45 > 0:18:46450.
0:18:46 > 0:18:48455
0:18:48 > 0:18:49460.
0:18:49 > 0:18:51465.
0:18:51 > 0:18:52Yes?
0:18:52 > 0:18:53465.
0:18:54 > 0:18:56Yes, no?
0:18:56 > 0:18:57460 with you.
0:18:57 > 0:18:59Anyone else?
0:18:59 > 0:19:01First time, second time...
0:19:01 > 0:19:04Third and last time... Have you all done?
0:19:04 > 0:19:07- STRIKES HAMMER - Sold, 460, to you, sir.
0:19:07 > 0:19:09And so, for £460,000 -
0:19:09 > 0:19:12£85,000 over the guide price -
0:19:12 > 0:19:14the former pub in Denham
0:19:14 > 0:19:19was snapped up by North London-based property developer, Simrit.
0:19:20 > 0:19:22Now, I met him back at his new purchase
0:19:22 > 0:19:27to check out his plans for this redevelopment site.
0:19:27 > 0:19:30Simrit, congratulations. This really is good news for you, isn't it?
0:19:30 > 0:19:32Yes, I am very pleased.
0:19:32 > 0:19:34- So, how much research did you do? - Quite a lot.
0:19:34 > 0:19:37I had a look at the legal pack, spoke to my solicitor,
0:19:37 > 0:19:41called the planners, as well, just to get some preliminary advice
0:19:41 > 0:19:43about the plans I had for it.
0:19:43 > 0:19:45And that's it, really.
0:19:45 > 0:19:49So, were you waiting for something like this to come along?
0:19:49 > 0:19:50What I've been used to in the past
0:19:50 > 0:19:54is either getting commercial space above shops and making them into flats,
0:19:54 > 0:19:57or just renovating derelict flats and houses.
0:19:57 > 0:20:01So, something... Some construction work like this...
0:20:01 > 0:20:03This is kind of what I wanted to progress to, anyway.
0:20:03 > 0:20:05So, tell me a little bit about yourself. Your history.
0:20:05 > 0:20:08So, I left university - I read law at university -
0:20:08 > 0:20:11and then I worked in politics for several MPs,
0:20:11 > 0:20:15doing casework and research for them.
0:20:15 > 0:20:17And then I left to buy my first property -
0:20:17 > 0:20:21did it up, sold it, made some money and then just carried on doing that.
0:20:21 > 0:20:24I was going to say - bit of an unusual swerve there?
0:20:24 > 0:20:27Yeah... The political world wasn't for me, really.
0:20:27 > 0:20:29- And the property world is? - Definitely, yeah.
0:20:31 > 0:20:34# You can go your own way
0:20:34 > 0:20:37# Go your own way... #
0:20:37 > 0:20:41Simrit has made the move from politics to property five years ago,
0:20:41 > 0:20:46and has slowly built up his experience, moving from small renovations
0:20:46 > 0:20:48to bigger commercial projects,
0:20:48 > 0:20:51and then on to this - his biggest project so far.
0:20:51 > 0:20:54But is he planning to stick to those past plans,
0:20:54 > 0:20:57or is he going to go his own way?
0:20:57 > 0:21:00So what are your plans for this site?
0:21:00 > 0:21:03My architect is in the process of drawing up some new plans,
0:21:03 > 0:21:06for four new three-bedroom houses -
0:21:06 > 0:21:09so three roughly in the terrace where this is,
0:21:09 > 0:21:10and one at the back.
0:21:10 > 0:21:12At the back of a car park.
0:21:12 > 0:21:14Gardens and parking, as well.
0:21:14 > 0:21:18So why have you decided to change the plans that came with this?
0:21:18 > 0:21:20Because it was for four two-bedroom flats.
0:21:20 > 0:21:24Just to maximise the potential of the plot, really.
0:21:24 > 0:21:26And, also, the way it was set up,
0:21:26 > 0:21:29it was to redevelop this current building, as it was.
0:21:29 > 0:21:30And that would prove very expensive,
0:21:30 > 0:21:33because we'd need to get a lot of structural steel in,
0:21:33 > 0:21:36and it would effectively mean demolishing the whole thing
0:21:36 > 0:21:39just leaving the front wall. But repositioning all the windows -
0:21:39 > 0:21:43which is effectively demolishing, anyway, but keeping everything...
0:21:43 > 0:21:44So, it kind of doesn't make any sense.
0:21:44 > 0:21:47So my idea was to raze it to the ground and start again.
0:21:47 > 0:21:50Is it really madness to conserve something
0:21:50 > 0:21:53- that's been here for many, many years and people love?- Erm...
0:21:53 > 0:21:56I do agree with the point... I do love the building itself, as well.
0:21:56 > 0:21:59But, just as a business opportunity,
0:21:59 > 0:22:02it is not that viable to do it that way.
0:22:02 > 0:22:04The building we're going to create will be in keeping
0:22:04 > 0:22:07with the character of the place, as well. So it will look quite similar.
0:22:07 > 0:22:10So, you're coming in here with your developers head-on, aren't you?
0:22:10 > 0:22:13- Yes, exactly.- You just need to get your money's worth from the site?
0:22:13 > 0:22:16- And you'll totally utilise all of the space around.- That's the plan.
0:22:16 > 0:22:18Four new three-bedroom houses,
0:22:18 > 0:22:22and, as we know, there's a huge shortage of housing everywhere.
0:22:22 > 0:22:24People need housing.
0:22:24 > 0:22:26So, have you had a chance to speak to the local council?
0:22:26 > 0:22:29- What have they said to you? - They are quite open about the...
0:22:29 > 0:22:33I mean, obviously, the precedent has now been set for the change of use,
0:22:33 > 0:22:35for it to become housing.
0:22:35 > 0:22:37So that hurdle has already been overcome.
0:22:37 > 0:22:39If worse comes to worst,
0:22:39 > 0:22:42what I'm going to do is submit a new application for this place
0:22:42 > 0:22:44to demolish it, kind of keep the same building,
0:22:44 > 0:22:46but go for four three-bedroom flats
0:22:46 > 0:22:48instead of two-bedroom flats.
0:22:48 > 0:22:49That is the worst case scenario.
0:22:49 > 0:22:51- So you do have a plan B? - That is the plan B, yeah.
0:22:51 > 0:22:54So, what sort of budget have you got to put into this?
0:22:54 > 0:22:56It's going to cost me - I've estimated,
0:22:56 > 0:22:59had a few quotes from my builders I work with -
0:22:59 > 0:23:01about £350,000 to build.
0:23:01 > 0:23:07Well, £350,000 build costs on top of his £460,000 purchase price,
0:23:07 > 0:23:11will take his costs up to £810,000.
0:23:11 > 0:23:15But Simrit hopes to sell the four houses for a total of around
0:23:15 > 0:23:171.1 million,
0:23:17 > 0:23:18which would, if all goes to plan,
0:23:18 > 0:23:21give him a very tidy profit, indeed.
0:23:21 > 0:23:23And he's hoping to complete
0:23:23 > 0:23:25the project in nine to 12 months.
0:23:25 > 0:23:27But does he relish the challenge ahead?
0:23:30 > 0:23:33Obviously, I am a bit green to something this big.
0:23:33 > 0:23:37But I've kind of cut my teeth quite well on other projects,
0:23:37 > 0:23:39so, I think it should be OK.
0:23:39 > 0:23:41You are ready for the challenge?
0:23:41 > 0:23:44I am ready for the challenge, yeah. I'll take it on. Head-on.
0:23:44 > 0:23:47Head-on - I love it! Who've you got around you to help you out?
0:23:47 > 0:23:50I've got a good team. I've got a good architect,
0:23:50 > 0:23:52excellent builders I've used in the past,
0:23:52 > 0:23:54a very good solicitor, erm...
0:23:54 > 0:23:57Yeah, you know, it's all you need, really.
0:23:57 > 0:24:01- Simrit, good luck.- Thank you very much.- Lovely to meet you.
0:24:01 > 0:24:05From politics to property, Simrit clearly loves his new career.
0:24:05 > 0:24:07And what a challenge he's taken on!
0:24:07 > 0:24:10Will he get the planning he wants?
0:24:10 > 0:24:14I can't wait to find out - and you can - later in the show.
0:24:14 > 0:24:18Coming up - in Derbyshire there could be four for the price of one.
0:24:18 > 0:24:20So, it's gone from...
0:24:20 > 0:24:21hm, interesting...
0:24:22 > 0:24:24..to VERY interesting!
0:24:24 > 0:24:26Back in the town of New Denham,
0:24:26 > 0:24:30we find out if Simrit's diplomatic skills have been tested.
0:24:30 > 0:24:33It's far more straightforward dealing with builders
0:24:33 > 0:24:35rather than politicians.
0:24:37 > 0:24:41But first, it's back to Newcastle-under-Lyme in Staffordshire
0:24:41 > 0:24:47to see a three-bedroom semi which was bought for £96,000 by Darryl.
0:24:47 > 0:24:50His plan - to renovate ready to move in
0:24:50 > 0:24:52as his home.
0:24:55 > 0:24:57I used to live locally,
0:24:57 > 0:24:58in this area, so...
0:24:58 > 0:25:00I just liked the feel of the house, so I thought...
0:25:00 > 0:25:02- Yeah, definitely.- ..I'll live in it.
0:25:02 > 0:25:05I wanted something that I could actually get my teeth into.
0:25:05 > 0:25:07Something I could put my stamp on.
0:25:07 > 0:25:09So, this is great.
0:25:10 > 0:25:12There was plenty to do.
0:25:12 > 0:25:16A small single-storey extension to the kitchen had to go,
0:25:16 > 0:25:20as did oddly angled chimney breasts.
0:25:20 > 0:25:22So, no surprise that Darryl overran
0:25:22 > 0:25:26his original eight-week timescale.
0:25:26 > 0:25:29And now we're back, 17 weeks after our first visit
0:25:29 > 0:25:34to see how Darryl held on to the dream that would become his home.
0:25:49 > 0:25:54# Hold on
0:25:54 > 0:25:57# If you can
0:25:57 > 0:26:00# Be strong
0:26:01 > 0:26:05# Yeah, it's a risk worth taking
0:26:05 > 0:26:07# To have a life worth living
0:26:07 > 0:26:11# You need to hold on
0:26:11 > 0:26:15# You need to hold on... #
0:26:15 > 0:26:19Darryl has chosen some strikingly stylish furniture
0:26:19 > 0:26:21to complement the contemporary feel.
0:26:21 > 0:26:24It really makes a statement.
0:26:24 > 0:26:26As does the new bathroom.
0:26:26 > 0:26:29The P-shaped bath with shower above
0:26:29 > 0:26:31making the best use of the space.
0:26:31 > 0:26:34And the ubiquitous, classic white suite
0:26:34 > 0:26:37with black-and-white tiles with crisp lines.
0:26:41 > 0:26:44Which leads us on to the changes in the bedrooms.
0:26:52 > 0:26:57# Hold on
0:26:57 > 0:27:00# If you can
0:27:00 > 0:27:03# Be strong
0:27:05 > 0:27:08# Yeah, it's a risk worth taking
0:27:08 > 0:27:09# To have a life worth living...#
0:27:11 > 0:27:13To get results like this, Darryl
0:27:13 > 0:27:16must've faced lots of challenges.
0:27:16 > 0:27:18So, what was the most memorable?
0:27:21 > 0:27:25I would say the biggest challenge would be
0:27:25 > 0:27:29converting the downstairs into something that was, erm...
0:27:29 > 0:27:32more...more modern,
0:27:32 > 0:27:36without taking out the character of the house.
0:27:36 > 0:27:39I think that's why I've left upstairs quite traditional.
0:27:39 > 0:27:41It's only a semidetached house,
0:27:41 > 0:27:44but I wanted to make it feel as if it was a detached house
0:27:44 > 0:27:47that was maybe somewhere in the country or something like that.
0:27:47 > 0:27:49And, actually, I think I've got... I've achieved that.
0:27:49 > 0:27:51That's all about the design,
0:27:51 > 0:27:54which, with its walnut flooring,
0:27:54 > 0:27:56has certainly unified the rooms.
0:27:56 > 0:27:58And installing patio doors,
0:27:58 > 0:28:02has helped to make the most of that super garden.
0:28:02 > 0:28:05But what about the physical side of things?
0:28:05 > 0:28:08Darryl thinks he's done 97% of the work.
0:28:08 > 0:28:10What was the hardest part?
0:28:10 > 0:28:14Removing the chimney breast was one of the biggest jobs.
0:28:14 > 0:28:17It was entangled with the middle supporting wall,
0:28:17 > 0:28:19so we've had to have building regulations,
0:28:19 > 0:28:22had to have calculations done for the steels.
0:28:22 > 0:28:23Those have all been done,
0:28:23 > 0:28:26and I think it was probably one of the dirtiest jobs I've ever done.
0:28:26 > 0:28:28But, yeah, it was fun to do,
0:28:28 > 0:28:31but it was very, very time-consuming.
0:28:31 > 0:28:35So, the fireplace removal contributed to the overrun,
0:28:35 > 0:28:39but how has the £25,000 budget fared?
0:28:39 > 0:28:42We've actually spent close to £40,000, I think.
0:28:42 > 0:28:43I think making it your home,
0:28:43 > 0:28:46you don't mind spending that little bit extra.
0:28:46 > 0:28:47It's going to last you another...
0:28:47 > 0:28:51you know, 10, 15 - 20 years, maybe.
0:28:51 > 0:28:53So why not spend it a little bit more, now?
0:28:53 > 0:28:55And it's all done.
0:28:55 > 0:28:57This was never a project about making money,
0:28:57 > 0:29:02but would Darryl get back what he's paid out if he sold?
0:29:02 > 0:29:04He paid £96,000 at auction,
0:29:04 > 0:29:08and £40,000 on the renovation.
0:29:09 > 0:29:12What's the opinion of two local estate agents?
0:29:12 > 0:29:13Having looked around the property
0:29:13 > 0:29:16I feel it's been done to a good standard.
0:29:16 > 0:29:19I like the aspect from outside, where it is still very traditional,
0:29:19 > 0:29:21but you walk through the front door
0:29:21 > 0:29:24and it is very modern living with open-plan design,
0:29:24 > 0:29:26and extended fitted kitchen-dining area.
0:29:26 > 0:29:29Looks like your design plan succeeded, Darryl.
0:29:29 > 0:29:32I think the property has been renovated to a good standard.
0:29:32 > 0:29:35The owners have fitted a modern kitchen.
0:29:35 > 0:29:40They've used a gloss finish which is really popular at the moment,
0:29:40 > 0:29:43and there is extra space now which is suitable for families.
0:29:43 > 0:29:46Let's get to the bottom line.
0:29:46 > 0:29:49Having spent a total of £136,000,
0:29:49 > 0:29:53has Darryl exceeded the ceiling value for this type of property?
0:29:54 > 0:29:58This property could resell for £140,000.
0:29:58 > 0:30:00In today's market,
0:30:00 > 0:30:04I would expect the property to achieve in the region of £145,000.
0:30:04 > 0:30:07I was probably thinking maybe a little on the 150 side, but...
0:30:07 > 0:30:09145, that's fine.
0:30:11 > 0:30:16So, a possible £10,000 profit, before taxes and expenses.
0:30:16 > 0:30:18Not much for so much work,
0:30:18 > 0:30:21but this was about turning a house into a home,
0:30:21 > 0:30:25and there is only one person whose opinion counts on that.
0:30:25 > 0:30:27The house does feel like a home.
0:30:27 > 0:30:30I've sat on the sofa this morning for the first time,
0:30:30 > 0:30:33with the fire on, with a cup of tea,
0:30:33 > 0:30:35and it feels like home to me.
0:30:35 > 0:30:36It's great.
0:30:39 > 0:30:42Well, Darryl may have got the modern house he wanted,
0:30:42 > 0:30:46but, for many, it's places with old-fashioned character that appeal.
0:30:46 > 0:30:51It's easy to see why the pretty town of Belper in the Derwent Valley
0:30:51 > 0:30:55is a World Heritage Site, as Jedediah Strutt and Sons
0:30:55 > 0:31:02began their pioneering cotton mill business here in the 1770s.
0:31:02 > 0:31:04Building homes for their workers,
0:31:04 > 0:31:07it became one of the first industrial communities.
0:31:08 > 0:31:11Well, pretty much in the centre of the town,
0:31:11 > 0:31:13on the main road that passes through the town,
0:31:13 > 0:31:16is the property I'm here to see.
0:31:16 > 0:31:19£75,000 was the guide price.
0:31:19 > 0:31:21Well, it's here. It's a shop front.
0:31:21 > 0:31:24Let's take a look inside.
0:31:26 > 0:31:28Sadly, this shop seems to have gone
0:31:28 > 0:31:31the way of many of our high street businesses,
0:31:31 > 0:31:34probably not helped by the main road and no parking.
0:31:34 > 0:31:36It's a nice-sized space,
0:31:36 > 0:31:39one main area at the front here -
0:31:39 > 0:31:41doesn't look to be in too-bad condition...
0:31:41 > 0:31:44The fact that the floor's a bit wibbly-wobbly,
0:31:44 > 0:31:46adds a bit of character!
0:31:46 > 0:31:49Already it's saying, "Here... This is a building with character."
0:31:49 > 0:31:52The front bit there, then through to rear part of the shop,
0:31:52 > 0:31:55which you'd probably use more for storage.
0:31:55 > 0:31:56There was a little stink over there.
0:31:56 > 0:31:59And then through here... Hm.
0:31:59 > 0:32:01Looks like the back of a staircase, or something.
0:32:01 > 0:32:03That's very odd.
0:32:03 > 0:32:05You've just got this door leading to this little storage area.
0:32:08 > 0:32:11I think there's more to this property than meets the eye.
0:32:14 > 0:32:16Well, according to the auction catalogue -
0:32:16 > 0:32:20yes, you've got the vacant shop, but you've also got
0:32:20 > 0:32:22large accommodation above that,
0:32:22 > 0:32:26and then, towards the rear...
0:32:26 > 0:32:29down this little passageway,
0:32:29 > 0:32:31a large stone cottage.
0:32:31 > 0:32:35So, it's gone from... hm, interesting...
0:32:35 > 0:32:37to VERY interesting.
0:32:39 > 0:32:41So, what have we got?
0:32:41 > 0:32:44Well, straight into the kitchen here and...
0:32:44 > 0:32:48Lots of beams - they look original to me - THAT is exciting.
0:32:48 > 0:32:50Lots of character.
0:32:50 > 0:32:51Obviously, in a bit of a state,
0:32:51 > 0:32:54but, I think, the biggest problem with this
0:32:54 > 0:32:57is going to be trying to get a feeling
0:32:57 > 0:33:00of the geography of the building.
0:33:00 > 0:33:04But from the kitchen you come down into this...living room area, here.
0:33:04 > 0:33:08Again, more open beams, lots of light from that window.
0:33:08 > 0:33:11I think the only way to show you what's actually on offer,
0:33:11 > 0:33:14is for you to come with me. OK.
0:33:17 > 0:33:21MUSIC: Pink Panther theme.
0:33:31 > 0:33:34So, up this first set of stairs onto this landing area.
0:33:34 > 0:33:38Nice-sized landing - lots of light coming from that roof-light there.
0:33:38 > 0:33:39You've got bedrooms...
0:33:39 > 0:33:41A big one to the front, another big one there,
0:33:41 > 0:33:43a third bedroom here,
0:33:43 > 0:33:45and they're really nice sizes.
0:33:45 > 0:33:49And then down this little corridor it gets a bit dark and dingy.
0:33:58 > 0:34:02Loads of really great character features,
0:34:02 > 0:34:04look at this! An old fireplace.
0:34:04 > 0:34:07And there's lots of stuff that's just...
0:34:07 > 0:34:10Oh, you get the impression, just hidden away.
0:34:10 > 0:34:13Indeed, this place just goes on and on.
0:34:13 > 0:34:16With not just one more room up here, but yet another.
0:34:19 > 0:34:21Both in pretty poor shape, I have to say,
0:34:21 > 0:34:23and with no corridors or passageways
0:34:23 > 0:34:26these would need a lot of work
0:34:26 > 0:34:28to meet modern fire and building regulations.
0:34:30 > 0:34:32And then, to complete the tour,
0:34:32 > 0:34:35well, it's back down to the kitchen, where I started.
0:34:35 > 0:34:38I don't know about you, but looking at all that lot
0:34:38 > 0:34:40has made me feel quite dizzy.
0:34:40 > 0:34:42I think I could do with some fresh air.
0:34:43 > 0:34:46And you get even more of a feeling of the place when you come outside.
0:34:46 > 0:34:49An added bonus - which I wasn't expecting - is this!
0:34:49 > 0:34:51A lovely little cottage garden.
0:34:51 > 0:34:53Nice-sized space.
0:34:54 > 0:34:57Erm... It's just cute. Everything about it is cute.
0:34:57 > 0:35:01From here you can see the lovely construction -
0:35:01 > 0:35:05these big old, probably sandstone, blocks, very typical of this area.
0:35:05 > 0:35:08Is it sandstone? Whatever the local stone is!
0:35:08 > 0:35:10Nice character, anyway.
0:35:10 > 0:35:13That's the bit I was walking around,
0:35:13 > 0:35:15then there's little outbuilding bit, as well.
0:35:16 > 0:35:18This... Uh!
0:35:18 > 0:35:20Probably an outside loo, at some point.
0:35:22 > 0:35:25From the outside, here you can get a feeling, even more,
0:35:25 > 0:35:26of the kind of state it's in,
0:35:26 > 0:35:28but you've got, again...
0:35:28 > 0:35:31a lot, a lot, a lot of property to play with!
0:35:32 > 0:35:37And that's all at a guide price of £75,000.
0:35:37 > 0:35:40And just when you thought it couldn't get any more intriguing,
0:35:40 > 0:35:43there's also planning permission along with this lot
0:35:43 > 0:35:46that allows for the shop, flat, and three-bed cottage
0:35:46 > 0:35:50to be turned into four separate units.
0:35:50 > 0:35:51The shop would remain a shop,
0:35:51 > 0:35:54the flat above would remain a flat,
0:35:54 > 0:35:57and the three-bed cottage would become two cottages.
0:35:57 > 0:36:00Lots of property, and lots of options.
0:36:00 > 0:36:03When faced with complexities like this, it's best to ask an expert.
0:36:03 > 0:36:06And who better than the auctioneer who sold the lot?
0:36:06 > 0:36:09If ever a property was unique, this is it.
0:36:09 > 0:36:12I mean, first of all, it keeps going on and on and on.
0:36:12 > 0:36:15Secondly, you've got a mix of retail and residential,
0:36:15 > 0:36:19and there's obviously huge potential to a place like this.
0:36:19 > 0:36:20OK, let's start where I did -
0:36:20 > 0:36:22with the commerce side of things,
0:36:22 > 0:36:24and the value of the shop.
0:36:24 > 0:36:28If there's a negative aspect to the shop, it's where it is.
0:36:28 > 0:36:29It's on the main road,
0:36:29 > 0:36:32but it's a little bit away from the town centre,
0:36:32 > 0:36:35and there isn't a lot of footfall past the front door.
0:36:35 > 0:36:38Not good if you wanted to do up and sell on.
0:36:38 > 0:36:40What about the flat above?
0:36:40 > 0:36:42The residential accommodation over the shop could be
0:36:42 > 0:36:44split off into a separate unit,
0:36:44 > 0:36:46so a small, one-bedroom flat.
0:36:46 > 0:36:49The flat over the shop is always going to be an investment property.
0:36:49 > 0:36:52The likelihood of selling it on the open market is a bit remote.
0:36:52 > 0:36:54But there was also, of course,
0:36:54 > 0:36:57that residential cottage space at the back of the building,
0:36:57 > 0:37:00with planning permission to convert into two cottages.
0:37:01 > 0:37:04One two-bed, and one one-bedroom property.
0:37:04 > 0:37:07So, what values might they achieve?
0:37:07 > 0:37:09If you made a two-bedroom cottage out of it,
0:37:09 > 0:37:13it would probably sell, arguably, for about £125,000.
0:37:14 > 0:37:15The one-bedroom cottage,
0:37:15 > 0:37:19you may be looking at somewhere between 90,000 and £100,000 for that.
0:37:19 > 0:37:23I would, however, emphasise the fact that these would be
0:37:23 > 0:37:25accessed by footpaths,
0:37:25 > 0:37:27and there is no immediate parking facilities.
0:37:27 > 0:37:30So you've always got that limitation.
0:37:30 > 0:37:32Well, not much good news there,
0:37:32 > 0:37:36but it does explain the £75,000 guide price.
0:37:36 > 0:37:39Even so, it's still a lot of property.
0:37:40 > 0:37:44Well, this is one of those projects that has two kinds of potentials -
0:37:44 > 0:37:49a great potential to be a success, given the price and what it could be,
0:37:49 > 0:37:53AND the potential to be a huge money pit.
0:37:53 > 0:37:57What are you going to unearth once you start taking it apart? Ew!
0:37:57 > 0:37:59Who is going to take it on?
0:37:59 > 0:38:03Let's find out when it went under the hammer.
0:38:03 > 0:38:04Lot number 55.
0:38:04 > 0:38:07It's a double-fronted retail sales shop on the road frontage,
0:38:07 > 0:38:10but a lot of stone cottagey stuff behind it.
0:38:10 > 0:38:13Proxy bid in on this one, ladies and gentlemen.
0:38:13 > 0:38:1575 on the guide price. Bid me.
0:38:15 > 0:38:1775.
0:38:17 > 0:38:20At £75,000, opening bid.
0:38:20 > 0:38:23The auctioneer was bidding on behalf of a proxy bidder,
0:38:23 > 0:38:26but, eventually, the action shifted back into the room.
0:38:26 > 0:38:29We rejoin it at £99,000.
0:38:30 > 0:38:32100? 99,500.
0:38:32 > 0:38:35100,000.
0:38:35 > 0:38:37At £100,000?
0:38:37 > 0:38:39500 again?
0:38:39 > 0:38:41500.
0:38:41 > 0:38:43100,500.
0:38:43 > 0:38:45101?
0:38:45 > 0:38:46101. Buy the next one!
0:38:46 > 0:38:50£101,000 for the first time?
0:38:50 > 0:38:53£101,000 for the...
0:38:53 > 0:38:56500. 101,500 against you at the back.
0:38:56 > 0:38:59102,000?
0:38:59 > 0:39:01102,500?
0:39:02 > 0:39:05Sure? £102,500...
0:39:05 > 0:39:07Once.
0:39:07 > 0:39:09Twice.
0:39:09 > 0:39:10Third opportunity?
0:39:10 > 0:39:12Sold at 102,500, thank you.
0:39:14 > 0:39:17With his bid of £102,500
0:39:17 > 0:39:21the successful bidder - seen here on the left - was Gavin.
0:39:21 > 0:39:25And along with his builder and business partner, Andy,
0:39:25 > 0:39:28we met up at the property to discuss their plans.
0:39:30 > 0:39:32- Andy, Gavin, great to meet you both.- Pleased to meet you.
0:39:32 > 0:39:36- Congratulations!- Thank you. - What an interesting project, eh?
0:39:38 > 0:39:41Tell me what it was that appealed about this place to you guys?
0:39:42 > 0:39:44- The profit, basically.- OK.
0:39:44 > 0:39:48The opportunity to have four projects in one
0:39:48 > 0:39:52and structure each of them individually so we can work
0:39:52 > 0:39:57through the whole building and, hopefully, make some money.
0:39:57 > 0:40:00- Did you come to see it before you bought it?- Yes.- You did.
0:40:00 > 0:40:02I came three times, and once with a surveyor, as well,
0:40:02 > 0:40:05- because of the age of the building.- Right.
0:40:05 > 0:40:07So it's definitely a project.
0:40:07 > 0:40:11- Do you come into the experienced category?- He does!
0:40:11 > 0:40:15Yeah, I've been in the trade all my working life.
0:40:15 > 0:40:17No doubt, this is going to uncover some horrors at some point
0:40:17 > 0:40:20but, you know, we've got a contingency and hopefully
0:40:20 > 0:40:23we won't need to dig into it but, hey-ho, if we do, there it is.
0:40:23 > 0:40:25Where do you embark on a project like this?
0:40:25 > 0:40:28The plan of attack, really, is to hit the shop, get the shop,
0:40:28 > 0:40:31completed and then get that on the market.
0:40:31 > 0:40:33In the meantime, we'll be doing the flat
0:40:33 > 0:40:36and then working backwards to the two cottages.
0:40:36 > 0:40:40How are you budgeting it, then? Are you budgeting it individually or for the whole project?
0:40:40 > 0:40:43What we're going to try and do is do the front two,
0:40:43 > 0:40:45get them on the market and see if it'll sell.
0:40:45 > 0:40:48If it won't, I'll be then looking to mortgage the property,
0:40:48 > 0:40:53- split and deeds and then use the funding to finance the back-end of the house.- OK.
0:40:53 > 0:40:56What is the budget? Can you break it down?
0:40:56 > 0:40:59We paid 102,500 for the whole building.
0:40:59 > 0:41:03In terms of renovations, I've budgeted 130.
0:41:03 > 0:41:06Personally, I think we will get it done for sub 100
0:41:06 > 0:41:10but I think 130 is my over-egging.
0:41:10 > 0:41:12How is it going to work, profit wise?
0:41:12 > 0:41:15The sales of the properties you're looking, best guess at the minute,
0:41:15 > 0:41:1850,000 for the shop,
0:41:18 > 0:41:22probably about 90,000 for the flat at the top.
0:41:22 > 0:41:24The two-bedroomed cottage I brought in at 110
0:41:24 > 0:41:27and the one-bedroom about 90.
0:41:27 > 0:41:29I think we're looking at 330 to 380,
0:41:29 > 0:41:31depending on how much I have over- or under-egged.
0:41:31 > 0:41:33Hopefully, there's 100 grand in it for you?
0:41:33 > 0:41:35I would suggest so.
0:41:35 > 0:41:37Gavin seems to have it all worked out.
0:41:37 > 0:41:40His background in logistics shines through.
0:41:40 > 0:41:44He's even planning getting lorries in at night-time to ease
0:41:44 > 0:41:47the access problems and prevent Belper from being gridlocked.
0:41:49 > 0:41:50What is the timescale?
0:41:50 > 0:41:53Shop, two to four weeks.
0:41:53 > 0:41:56Flat, two to three months.
0:41:56 > 0:41:58Cottages...
0:41:58 > 0:42:02Funding probably another six to nine months on top of that,
0:42:02 > 0:42:06- so 12 months in total.- Seem fair? - Absolutely, yeah, yeah.
0:42:06 > 0:42:08Congratulations to you both
0:42:08 > 0:42:11and I'm really excited to see how it all turns out.
0:42:11 > 0:42:13- So are we, yeah.- Cheers.
0:42:13 > 0:42:16- Good stuff, all the best. - Thank you very much. Thank you.
0:42:17 > 0:42:20Well, this was never going to be a project for the inexperienced
0:42:20 > 0:42:23and I think Andy and Gavin have got what it takes
0:42:23 > 0:42:25to make this project a success.
0:42:25 > 0:42:29Still, with old buildings like this, you never know quite what
0:42:29 > 0:42:32you're going to find once you start digging about.
0:42:32 > 0:42:34How will they get on?
0:42:34 > 0:42:37You can find out later in the programme.
0:42:40 > 0:42:42So we've caught up with one of our buyers.
0:42:42 > 0:42:44Let's see what the others have been up to.
0:42:44 > 0:42:46Yes, did everything go to plan?
0:42:46 > 0:42:49Or, maybe not, let's find out.
0:42:50 > 0:42:53If you're passing New Denham, on the outskirts of London,
0:42:53 > 0:42:57and fancied stopping off for a drink, maybe a bite to eat,
0:42:57 > 0:42:59then sadly you'd be out of luck
0:42:59 > 0:43:02when it came to The Nine Stiles pub in New Denham.
0:43:02 > 0:43:05This was a pub that had pulled its last pint
0:43:05 > 0:43:08and served its last packet of pork scratchings.
0:43:09 > 0:43:13However, if you're more interested in properties than pints,
0:43:13 > 0:43:17then, actually, there was plenty here to whet a developer's appetite.
0:43:17 > 0:43:21Not only was the building site ripe for redevelopment,
0:43:21 > 0:43:24it had planning permission granted to be converted
0:43:24 > 0:43:27into four two-bed flats, with the only condition
0:43:27 > 0:43:31being the facade of the old inn remained.
0:43:31 > 0:43:36It was bought at auction for 460,000 by former political researcher
0:43:36 > 0:43:38turned property developer, Simrit.
0:43:40 > 0:43:44He had bigger, and he hoped, better things planned for the former inn.
0:43:47 > 0:43:50My architect is in the process of drawing up some new plans
0:43:50 > 0:43:53for four new three-bedroomed houses.
0:43:53 > 0:43:56So three roughly in a terrace, where this is,
0:43:56 > 0:44:01and one at the back of the car park, gardens and parking as well.
0:44:01 > 0:44:04Well, Simrit wanted to get the most out of the site
0:44:04 > 0:44:08but in doing so he would have to go back to planning,
0:44:08 > 0:44:10which could significantly delay the process.
0:44:12 > 0:44:16And, with a budget of around 350,000, he was hoping
0:44:16 > 0:44:20he could have his four new three-bed houses built in nine to 12 months.
0:44:22 > 0:44:26But now, over 18 months later, we're back.
0:44:26 > 0:44:27# I get knocked down
0:44:27 > 0:44:29# But I get up again
0:44:29 > 0:44:30# You're never gonna keep me down
0:44:30 > 0:44:31# I get knocked down
0:44:31 > 0:44:33# But I get up again
0:44:33 > 0:44:35# You're never gonna keep me down... #
0:44:35 > 0:44:37And it's kind of getting back up again -
0:44:37 > 0:44:40at least it's out of the ground.
0:44:40 > 0:44:42This is where the pub used to be.
0:44:42 > 0:44:45That's the road that the pub used to front.
0:44:45 > 0:44:47Now, as you can see, the pub has been demolished.
0:44:47 > 0:44:49Here, what we have is...
0:44:50 > 0:44:54We've dug the foundations, we've poured the concrete
0:44:54 > 0:44:59and now we've built up the brickwork up to damp proof course level.
0:44:59 > 0:45:04The black blocks here give you a good indication of where the houses end.
0:45:04 > 0:45:08This will be the rough floor area of one of the houses.
0:45:08 > 0:45:11After such a long delay, finally,
0:45:11 > 0:45:15having something here tangible to look at, it's a relief
0:45:15 > 0:45:17as well as quite exciting, as well.
0:45:17 > 0:45:21Yes, and the reason for the delay? You guessed it -
0:45:21 > 0:45:24it was caused by planning with Simrit's initial application
0:45:24 > 0:45:28for the development being rejected, but they got passed on appeal.
0:45:28 > 0:45:31This whole process took over a year and it's only in the last
0:45:31 > 0:45:34few months that he can get on with the build.
0:45:34 > 0:45:35# I get knocked down
0:45:35 > 0:45:37# But I get up again
0:45:37 > 0:45:39# You're never gonna keep me down... #
0:45:39 > 0:45:42And Simrit is hoping to complete the three three-bed houses
0:45:42 > 0:45:45in five to six months' time.
0:45:45 > 0:45:47What will the finished buildings look like?
0:45:47 > 0:45:52So, these are the plans for the current terrace of houses.
0:45:52 > 0:45:55As you can see, they are just a very simple design,
0:45:55 > 0:45:59in keeping with the rest of the road, as the planners requested.
0:45:59 > 0:46:02This is the plan for the ground floor.
0:46:02 > 0:46:06You walk in the front door, you have stairs right in front of you,
0:46:06 > 0:46:11kitchen on the left with an open-plan dining and reception area.
0:46:11 > 0:46:13One parking space at the front for each house,
0:46:13 > 0:46:16and also one spot at the back.
0:46:17 > 0:46:20Moving on to the first floor, we have two bedrooms,
0:46:20 > 0:46:23one with an en suite and one family bathroom.
0:46:23 > 0:46:28Also, a utility room there and landing.
0:46:28 > 0:46:32Finally, moving on to the second floor, we've got a third bedroom
0:46:32 > 0:46:35with a dormer window facing towards the rear of the property.
0:46:35 > 0:46:39# One, two, three, four... #
0:46:39 > 0:46:42One, two, three, I see.
0:46:42 > 0:46:46But what happened about planned detached house number four?
0:46:46 > 0:46:50The fourth house, we've just put in planning. Today, I believe,
0:46:50 > 0:46:52my architect's put in planning for that.
0:46:52 > 0:46:54It's actually going to be a two-bedroomed house, that one,
0:46:54 > 0:46:57set towards the back of the land here.
0:46:57 > 0:47:00That is, of course, if he gets planning approval.
0:47:00 > 0:47:03How much is it going to cost him to build the three houses
0:47:03 > 0:47:05he has got consent for?
0:47:05 > 0:47:10The contract is for £369,000 for the building of the terrace
0:47:10 > 0:47:13of three houses that we're doing at the moment.
0:47:13 > 0:47:15At the moment, everything is going to budget.
0:47:15 > 0:47:20Well, if he does complete the houses for £369,000,
0:47:20 > 0:47:23along with his £460,000 purchase price,
0:47:23 > 0:47:26not including various taxes and fees,
0:47:26 > 0:47:31Simrit would have spent £829,000 on the three houses.
0:47:31 > 0:47:33Will it be worth the wait?
0:47:33 > 0:47:36What do two local estate agents think?
0:47:36 > 0:47:38I have had chance to look at the new plans.
0:47:38 > 0:47:41They are more in keeping with the other properties that are around,
0:47:41 > 0:47:46having moved from looking at flats and a mixed development.
0:47:46 > 0:47:50Whether it's quite such a good yield that you'll get on it, I'm not 100%
0:47:50 > 0:47:55sure but, still, the properties will be of interest to the local market.
0:47:55 > 0:47:59I think that the proposals for the terrace of three family homes,
0:47:59 > 0:48:03in this location, fits perfectly with the surrounding properties
0:48:03 > 0:48:06and will be very well received by the market.
0:48:07 > 0:48:11Right, so there's a definite market for the houses.
0:48:11 > 0:48:16With Simrit's costs likely to be around £829,000 in total,
0:48:16 > 0:48:18what kind of values might each of them to be worth?
0:48:20 > 0:48:23I'd expect a three-storey, three-bed terraced house to
0:48:23 > 0:48:29be in the region of £360,000 to £370,000 once completed.
0:48:29 > 0:48:32I think you've probably got values ranging for the mid-terrace
0:48:32 > 0:48:35for around about 375,
0:48:35 > 0:48:39moving upwards nearer to 400 for the end terraced properties.
0:48:39 > 0:48:41I'd say they're quite low, those estimates.
0:48:41 > 0:48:46My estimate is in the range of about 410 to 415, ideally.
0:48:46 > 0:48:47Only time will tell.
0:48:47 > 0:48:50There is a bit of crystal ball gazing here.
0:48:50 > 0:48:53Obviously, the property market may be very different
0:48:53 > 0:48:55in five to six months' time
0:48:55 > 0:48:59and the finish of the house will influence the true end values.
0:48:59 > 0:49:02But at those current values, Simrit could see a pre-tax profit
0:49:02 > 0:49:06between 251 and 346,000 -
0:49:06 > 0:49:09minus the usual taxes and expenses, of course.
0:49:09 > 0:49:13If the fourth property was to get consent,
0:49:13 > 0:49:15then those returns could be even higher.
0:49:17 > 0:49:19But with his contractor looking after this project,
0:49:19 > 0:49:22how is Simrit occupying himself?
0:49:24 > 0:49:27I'm doing smaller projects at the moment, which is similar to what
0:49:27 > 0:49:31I used to do, which is smaller refurb, just to keep me
0:49:31 > 0:49:34ticking over while this is being built.
0:49:34 > 0:49:37All in all, he's pretty busy working on properties
0:49:37 > 0:49:40but does he hanker after his life in politics?
0:49:49 > 0:49:52I'm very glad that I changed careers.
0:49:52 > 0:49:54It's far more straightforward dealing with builders
0:49:54 > 0:49:59rather than politicians, and I'm very glad that I did it.
0:50:03 > 0:50:06Yes, property development always gets my vote.
0:50:06 > 0:50:10Just look at the lovely places I get to visit, such as Belper,
0:50:10 > 0:50:14a beautiful town, just a hop from Derby, with many traditional
0:50:14 > 0:50:19properties, and one I saw that had potential worth crowing about.
0:50:19 > 0:50:23£75,000 was the guide price.
0:50:23 > 0:50:25Oh! It's here.
0:50:25 > 0:50:28It's a shop front, let's take a look inside.
0:50:28 > 0:50:32Inside, I found a shop that wasn't exactly open for business
0:50:32 > 0:50:36but there was a flat above and then there was more.
0:50:37 > 0:50:41Towards the rear, down this little passageway,
0:50:41 > 0:50:44a large, stone cottage.
0:50:44 > 0:50:48It's gone from hm, interesting...
0:50:48 > 0:50:50to VERY interesting.
0:50:50 > 0:50:55And not only that, the cottage came with planning permission to
0:50:55 > 0:50:59convert it into two cottages - one one-bed and one two-bed.
0:50:59 > 0:51:03So this was potentially a large and complex development.
0:51:03 > 0:51:07But two people undaunted by the size and scale
0:51:07 > 0:51:11were former logistics man Gavin, and his relatively new
0:51:11 > 0:51:14business partner, builder and joiner Andy,
0:51:14 > 0:51:18who paid 102,500 for this fascinating lot.
0:51:18 > 0:51:20Where did you embark on a project like this, then?
0:51:20 > 0:51:22The plan of attack, really, is to hit the shop,
0:51:22 > 0:51:25get the shop completed and then get it on the market.
0:51:25 > 0:51:27In the meantime, I'll be doing the flat
0:51:27 > 0:51:30and then working backwards to the two cottages.
0:51:30 > 0:51:34Five months later and the wheels of the renovation are still in motion.
0:51:35 > 0:51:40# Bicycle, bicycle, bicycle
0:51:40 > 0:51:41# I want to ride my
0:51:41 > 0:51:45# Bicycle, bicycle, bicycle
0:51:45 > 0:51:48# I want to ride my bicycle
0:51:48 > 0:51:51# I want to ride my bike... #
0:51:52 > 0:51:55They certainly have rung the changes here.
0:51:55 > 0:51:57Although the outside of the shop can't be done until
0:51:57 > 0:52:00the conservation officer signs off the design, there's
0:52:00 > 0:52:03a fitted shop with a kitchen and a new toilet, and it's already
0:52:03 > 0:52:06being leased for five years.
0:52:06 > 0:52:09But there's far more work going on upstairs.
0:52:09 > 0:52:12The flat and cottages have been separated
0:52:12 > 0:52:14and two bedrooms have become one room.
0:52:16 > 0:52:19And they're uncovering original features along the way.
0:52:20 > 0:52:22This room we have here,
0:52:22 > 0:52:26this is going to be the open-plan living and kitchen area.
0:52:26 > 0:52:31Originally, it was two bedrooms and we've taken out the dividing wall.
0:52:31 > 0:52:35We've managed to find this beautiful fireplace we've uncovered
0:52:35 > 0:52:37and that is going to have a nice log burner in it.
0:52:37 > 0:52:43Over here, we uncovered the local stone feature wall.
0:52:43 > 0:52:49We're going to have a nice island unit, lighting raft here,
0:52:49 > 0:52:53nice bit of hardwood floor in the kitchen area, carpeted.
0:52:53 > 0:52:56Personally, I think this will make a fantastic living area.
0:52:56 > 0:53:00So, it seems Andy and his builders have made good progress here.
0:53:00 > 0:53:02They've been busy in the rest of the flat, too,
0:53:02 > 0:53:04and while it's now a one-bed-er,
0:53:04 > 0:53:08they are finding light and space in different places.
0:53:08 > 0:53:10The hallway, really, we added additional light.
0:53:10 > 0:53:12We've cleaned up the skylight
0:53:12 > 0:53:17and added a new window up there to open the airing up.
0:53:17 > 0:53:21Behind me, we've had to create a bathroom,
0:53:21 > 0:53:23so we've done that by bringing the wall forward,
0:53:23 > 0:53:26whereas this was a return and a straight through into the cottage.
0:53:26 > 0:53:31We've created a bathroom behind me and then in the bedroom,
0:53:31 > 0:53:32we've done another feature.
0:53:32 > 0:53:35A fireplace wall, the same as in the lounge, and also added
0:53:35 > 0:53:39a walk-in wardrobe to add a bit more storage space for the property.
0:53:41 > 0:53:44While the flat is being renovated, the cottage, with the planning
0:53:44 > 0:53:48permission to turn it into two, is completely untouched.
0:53:48 > 0:53:49So, what's been going on?
0:53:50 > 0:53:54Once this is finished, we've got two options, really.
0:53:54 > 0:53:57One is complete the cottages and carry on.
0:53:57 > 0:54:03The other one is sell it, put it back into auction with just the two and
0:54:03 > 0:54:07complete these two and sell the other one and move onto the next project.
0:54:07 > 0:54:10The cottage part of the building came with planning permission
0:54:10 > 0:54:14to convert it, and Gavin and Andy had always planned
0:54:14 > 0:54:16that work at stage three of the development.
0:54:16 > 0:54:18But it's likely to be complex,
0:54:18 > 0:54:23and they reckon they'll have to budget some £88,000 for the work.
0:54:23 > 0:54:27So, they have to weigh up whether it's worth their time and energy.
0:54:27 > 0:54:29What about their costs so far?
0:54:29 > 0:54:34Originally, they had a budget of £130,000 for the whole project.
0:54:34 > 0:54:37The flat is projected to finally cost 28,500,
0:54:37 > 0:54:39but what about the shop?
0:54:39 > 0:54:43The budget for the shop was just over 13,000.
0:54:43 > 0:54:46We're going to come in just under budget on that one.
0:54:46 > 0:54:50The flat, obviously, we've not finished it yet, so there's
0:54:50 > 0:54:53the kitchen, etc, which we're budgeting for.
0:54:53 > 0:54:56Literally, I think we'll be a little bit under on that,
0:54:56 > 0:54:57on the flat side of things.
0:54:57 > 0:55:01In fact, currently, Gavin has a projected spend on the shop
0:55:01 > 0:55:04and flat that totals £41,500.
0:55:04 > 0:55:08So, along with the £102,500 purchase price,
0:55:08 > 0:55:13this will take their total spend to £144,000.
0:55:13 > 0:55:15But what do two local property experts
0:55:15 > 0:55:18think about the progress to date?
0:55:18 > 0:55:21The changes I've seen so far have been quite dramatic.
0:55:21 > 0:55:25They've put some ideas into this, and it's really quite lovely.
0:55:25 > 0:55:28I think Belper is such a superb, commercial
0:55:28 > 0:55:32opportunity as well as residential, that, yes, it's a very,
0:55:32 > 0:55:34very impressive development.
0:55:34 > 0:55:37Commercial properties such as the shop have their values
0:55:37 > 0:55:41determined by the annual rentable income they generate,
0:55:41 > 0:55:45so, how would Andy and Gavin's shop space fare?
0:55:45 > 0:55:48My guess is it would rent out at somewhere between £7,000
0:55:48 > 0:55:54- and £8,000 a year.- I would rent the shop for around £7,200 per annum.
0:55:54 > 0:55:57And, in fact, those rates are in line with what Gavin
0:55:57 > 0:56:00and Andy are currently getting for the shop
0:56:00 > 0:56:05and they would give the shop a resale value of around £75-£80,000.
0:56:05 > 0:56:10But what about the upstairs one-bed flat? How much would that be worth?
0:56:10 > 0:56:13As a vacant flat finished off, I think it would
0:56:13 > 0:56:17probably have a value of around £70-£75,000.
0:56:17 > 0:56:21I would estimate around £75-£80,000.
0:56:21 > 0:56:24Ah, so the investment is starting to add up,
0:56:24 > 0:56:27with the flat and the shop potentially bringing in
0:56:27 > 0:56:30between 145,000 and £160,000.
0:56:30 > 0:56:34But what would the cottage, without any conversion work done,
0:56:34 > 0:56:36be worth if it was put back into auction?
0:56:36 > 0:56:39I suppose you'd guide them at something like 50,000 plus
0:56:39 > 0:56:42and hope to get between 60 and £70,000 for them.
0:56:42 > 0:56:44If the cottages went into auction today,
0:56:44 > 0:56:49they would return around the £60,000 mark.
0:56:49 > 0:56:52So, another 60 to 70,000 could mean their total
0:56:52 > 0:56:56return would be between 205 and £230,000,
0:56:56 > 0:57:00which could see a potential pre-tax profit of between
0:57:00 > 0:57:0661 and £86,000 - minus taxes and expenses, of course.
0:57:06 > 0:57:10But, do the values change their thinking on the cottage development?
0:57:10 > 0:57:11In terms of the valuations,
0:57:11 > 0:57:15it's pretty much exactly what we thought in our figures.
0:57:15 > 0:57:18We'd be interested in potentially putting
0:57:18 > 0:57:21the cottages into auction with a reserve, and see how they go.
0:57:21 > 0:57:24If not, we'd possibly look at doing it ourselves.
0:57:24 > 0:57:26In fact, since we last visited, not only have
0:57:26 > 0:57:29they decided to go ahead with the cottage conversion, they've
0:57:29 > 0:57:34also sold the freehold of the other building for 85,000, which could
0:57:34 > 0:57:37then see the whole development produce a profit
0:57:37 > 0:57:38in the region of £200,000.
0:57:40 > 0:57:44And this was Andy and Gavin's first project together.
0:57:44 > 0:57:48- So, how do they feel about it overall?- Yeah, I'm happy with it.
0:57:48 > 0:57:51Happy with the way it's gone and the way things are turning out.
0:57:51 > 0:57:55Pleased with the quality that my team has turned out.
0:57:55 > 0:57:58I'm over the moon for the first partnership experience as such.
0:57:58 > 0:58:01It's worked really well. Looking forward to further projects.
0:58:04 > 0:58:07Well, we hope you've enjoyed seeing the properties that were
0:58:07 > 0:58:10bought at auction and featured on today's show.
0:58:10 > 0:58:12Looking forward to seeing you next time on Homes Under The Hammer.
0:58:12 > 0:58:13- Bye, for now.- Bye.