Episode 67 Homes Under the Hammer

Hello, welcome to the show.

Now, buying a property, be it a home or an investment,

could possibly be the most expensive thing you ever buy.

So with thousands of pounds involved,

you really should try and get the best value for money.

And where can you do that?

Well, maybe by heading down to your local auction.

Now, anyone can attend an auction, and anyone can bid.

You've just got to be certain that you can afford

to pay for what you bid for.

So let's see what today's bidders decided to buy at auction.

In Congleton, Cheshire, the wooden beams aren't quite what they seem.

Are they wood? That's some kind of faux wood.

In London, there's more than meets the eye to this developer.

He's also a property solicitor.

I used to see a lot of clients make a bob or two on the property game.

And what could be hiding in this mysterious building

in West Glamorgan?

Can you guess what it is?

It's actually the former ambulance station.

All of these properties have been sold at auction.

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

when they went under the hammer.

-HE BANGS GAVEL

-Sold, 291.

Congleton, in Cheshire, has a strange link

with a very unexpected animal, the bear.

Unfortunately, though, this isn't a cuddly bear story.

Nowadays, bear-baiting in the UK would be unthinkable,

but this blood sport once brought in huge crowds.

Congleton became notorious in the 1620s when money saved

to buy a Bible for the town was used instead to buy a bigger bear.

Hence its peculiar nickname, Beartown.

There are still a few bears in town, but thankfully, better treated.

Well, being only 30 minutes from Manchester by train,

a lot of people move to Congleton for the quieter life.

If that's what you're looking for,

the property I'm here to see really won't suit. This is it.

Two bedrooms. £40,000 was the guide price.

But before we go in, I've got to show you this.

The reason it's so bad if you're looking for peace and quiet

is because not only is it on a main road,

it's right by these traffic lights.

So you don't get the constant vroom-vroom of the cars,

and the lorries, and whatever else, you get them stopping

at the lights and starting their engines up, and... Argh! Nightmare.

OK, that's the bad bit.

Let's find out what it's got to offer.

Oh...

HE LAUGHS

That's not ideal, is it?

Um, yeah, the electric cupboard, just there, behind the door,

to a point that you...

Well, no, not ideal. So...

After that slightly startling start, what have we got?

Lots of stuff on the walls, that's for sure. But a little corridor.

Front living room there.

Apart from the fact that it's got two sides facing the roads,

so you do get so much noise, It's not a bad sized space.

It's certainly got character, with those beam-y things going on.

Another beam here, so watch your head on that.

Through to a rear sitting room.

And straight away, one thing that I really like about the place,

it's got character. I mean, look at this for a fireplace.

Whatever you think of it, it's not boring, is it?

And actually, I think if you got rid of this top bit maybe,

made that smooth, painted that perhaps a different colour,

that would be a really interesting feature.

But things like the staircase returns here.

I'm not sure if that needs a bit of investigating.

But there's lots of wood going on.

Um...

Hm... I say wood.

On closer inspection, that isn't, is it?

That's some kind of concrete-y, fibreglass-y,

plaster-y faux wood -

the sort of thing you have in theme parks

where it looks like boulders and stuff.

But somebody's gone to a lot of trouble to put it on. Hm.

Anyway. Through there, to this area here, there's the kitchen.

Through to the bathroom.

I mean, for that 40,000 quid...

I know it's got a few quirky things about it, but...

It's not a bad house, is it?

Not bad at all.

Headroom is at a premium, but removing the "wooden" beams..

-HE CLEARS THROAT

-..may help with that.

Having a bathroom downstairs isn't ideal either,

but is standard in these types of houses.

But those really steep stairs, well, they ring alarm bells.

Well, top of the stairs, and a real safety issue,

a potential disaster waiting to happen here.

Because look what you've got. Fair enough, top of the stairs,

bit of a landing area going into that bedroom.

But nothing here apart from this tiny little area here,

when you come out of this bedroom here.

So the danger of basically stepping off there

and falling down the stairs is huge.

That wants to be sorted,

especially if you're looking at renting this place out.

I think you'd be legally obliged to do that.

Maybe you could create some kind of a landing area by taking down

a bit of that wall, sneaking a bit of room out of that bedroom.

It could certainly cope with that. But, for me, that is

one of the big priorities.

This is the sort of thing that would never pass

current building regulations, and if you were to rent this out,

you'd have an obligation to make this house safe for your tenant.

Aside from that issue, there are two good-sized bedrooms up here.

But, shiver me timbers, more of those beams.

The rooms are nice and bright,

but I think I would want to get rid of these leaded windows and get

some double, maybe even triple glazing to keep the noise out.

The floor definitely has a slope, so a structural survey is a must.

Let's head outside to see if that's on the straight,

but hopefully not narrow.

Well, if you're looking for a house with lots of outside space,

you need to look somewhere else.

Because literally all you have got is that little bit of courtyard.

That bit there actually belongs to the next door neighbours.

Now, ffftt...it's not ideal.

But trying to find a plus point here, if you were looking to rent

this place out, tenants generally don't like large gardens,

something they have to look after, at least.

What you've got here is space for your bins,

maybe somewhere you could put your bikes. So that's a positive.

Perhaps a local estate agent might like to borrow

my rose-tinted spectacles. What does he reckon about this property,

guided at £40,000?

The property is in need of a full scheme of refurbishment.

I also think there are some structural issues

to the left-hand side of the property.

In the second bedroom, the floor runs out to the side elevation wall,

and it has quite a large slope.

Makes you feel like you've had a few too many glasses of wine.

Well, I think we can agree that it will be a while

before anyone sits back with a glass of wine here.

There is a lot of work to do. Would it be worth it?

You're probably looking to achieve somewhere in the region

between £75,000 to £80,000.

If the property was placed onto the rental market, I would expect

to achieve somewhere in the region of £400 to £450 per calendar month.

Well, it's certainly a house with lots of character.

Some would call it quirky.

Not an ideal location, but remember that guide price, £40,000.

I actually think it's a really good one to go for.

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

It's a two-bedroomed

end terrace house.

I have a proxy bid on this of £28,000.

Bid with me at £28,000. Looking for 30 in the room.

£30,000 in the room. £30,000. 31 with me.

32, 33 with me.

34, at 34 I'm out.

At £34,000. 34,500,

35, 35...500?

No? At 35,000, right in the middle at £35,000.

Right at the back now, 35,500.

36.

36. 36,500...

37? No?

At 36,000, by the light. At £36,500,

37, anywhere else?

If not, 36,500 once,

36,500 twice,

and final time, 36,500...

-HE BANGS GAVEL

-Your lot. Well done.

Julia made that successful bid of £36,500,

that's £3,500 below the guide price.

Julia and her husband Mike are relative novices

when it comes to property development,

with two previous developments their only experience.

However, they're keen to get going with their latest purchase.

And I met full-time mum Julia back at the property

to find out their plans.

-Julia, great to meet you.

-And you.

-Congratulations.

-Thank you.

-What an interesting little place this is.

-Mm.

Tell me why you wanted to buy it.

Mainly the price. It was the right price.

And I know this area a little bit,

so I knew that the price was a good price for this area, really.

And why do you think it was that price?

Probably because it needs quite a bit of work doing to it.

And it's got a bathroom downstairs,

which doesn't appeal to everybody, so yeah. It kept it low.

And the slope-y floor bit?

Yeah, I guess the slope-y floor might have something to do with it...

SHE LAUGHS

-And the slightly weird interior decor, perhaps?

-Yes.

It needs...yes, a bit of work, doesn't it?

What are you planning to do to it?

Most things, really. It needs the damp sorting out.

It needs re-plastering. It needs rewiring.

It's got no central heating. The upstairs floor needs sorting out.

-New windows.

-And kitchen?

-Kitchen and bathroom, yeah, yeah.

All that needs ripping out and starting again.

Julia's certainly made a great assessment to the tasks ahead,

and, I'm delighted to say, has in her sights

one of the main difficulties I can see about the house, that staircase.

-So what are the plans for that?

-I'm not quite sure.

-Oh, OK.

-Yeah.

I'll need to get somebody in to have a look.

But if we can try and rearrange it, maybe bring it further out this way

so that we can get a proper landing at the top.

And what about all this

-wood/concrete/fibreglass/whatever it is?

-Yeah.

Needs to go, really, doesn't it?

Well, somebody's gone to such a lot of trouble to put it in.

-It's a shame to say yes. But...yes.

-It does, it needs to go.

I think it takes up a lot of space as well.

-We'll get rid of that, open it up a bit.

-It's not the biggest of houses.

It's not small, but it's not massive.

And it probably doesn't help

-creating more feeling of space, does it?

-That's right.

We'll try and maximise on the space that we've got.

The one big negative, if there are any, is the location. Good and bad.

Good in terms of what it's close to, but right on this junction.

And you can hear the traffic...

-Yeah.

-This isn't even peak time, is it?

-No.

You can't do anything about that, though,

-apart from putting triple glazing.

-New windows, yeah.

I think we'll try and do the best we can with the windows.

And, like you say, other than that...

You know, I've lived on a busy road, and you get used to it.

So I think, as a rental property,

I don't think that will be too much of an issue.

-And that's the plan, is it? To rent it out?

-Yes. Yes, it is.

Well, before Julia can look for any renters,

she's got a long list of pretty big jobs to get done,

although she does have a fairly healthy budget of around £23,000,

and a timescale of three to four months,

to get this dated and wonky house ready for the rental market.

So how involved are you going to be with it?

I will be here most days to make sure that everything's going

-according to plan.

-You'll be telling other people what to do?

-Exactly.

MARTIN LAUGHS Yes!

I like to plan things, I like to do the shopping for the kitchen

and the bathroom, and all that.

But luckily, I've got a very good builder who knows a lot of people,

and we've used people in the past for projects,

so you know, hopefully I won't need to get hands-on at all.

-Well, congratulations!

-Thank you.

-We'll look forward to seeing how you get on.

-Thank you very much.

So it looks like the fake wood is destined to go

in Julia's renovation of this little property in Congleton.

It's one of those ones that is going to be dramatically different

when we return. Can't wait to see what it looks like.

You can find out later in the show.

And talking of dramatically different,

it's hard to believe that Willesden, here in north London,

was once a rural village with a population of less than 20,000.

In the late 1800s, the population grew to 140,000

in just 25 years, thanks to the arrival of the railway.

The property I'm here to see today is part of these Victorian terraces,

probably built around the time of the railway station.

Well, it's in here, it's on the first floor, it's a one-bedder

and it has a guide price of £260,000 plus.

Let's see what those good old Victorians built.

First things first, in through the front door,

and a flight of stairs to negotiate.

I'm not going to let that put me off. Although the decor might.

So a lot in this flat needs doing.

But only decoration and carpets and painting.

A lot of, sort of, egg yolk yellows everywhere, and oranges.

Bathroom, and through to the back room,

painted in a very interesting sorbet tangerine colour.

But this is what I can't believe.

Look how close you are to the tube station! Look!

They literally are in your back garden.

Now, let's do a sound test.

TUBE TRAIN

Doesn't make that much difference.

So could it be a positive, could it be a negative? I'm not quite sure.

It depends how quickly you need to get into town.

For some, being that close to transport is a dream.

And for others, it will send you off the rails.

Getting this flat's decor back on track is something you CAN control.

Oranges aren't the only colour.

It's almost like this flat has got a pulse,

because when the trains go, the flat just slightly moves.

You've got the kitchen just here, which is a great size.

There's a table in there, so you can sit down and eat.

And through here, well, this is the front of the property.

This is currently laid out as the bedroom.

Now, I am thinking it would be served so much better

as a living room, a cosy lounge.

Why do you think this is the bedroom?

Do you think it's too noisy at the back?

If you slept at the back, you could hear the trains? What do you think?

I don't know. I'm going to leave that one with you.

But I think if this were mine, actually, I might swap it over.

Let's see what a local estate agent makes of this flat,

guided at £260,000.

I think the property offers excellent potential.

It's currently laid out as quite a spacious one-bedroom, but these days

you could quite comfortably make it into a two-double-bedroom property.

So he thinks converting the lounge into a second bedroom

could be another option. How would that affect the values?

So if you were to keep this property laid out as it is,

but in good condition, you'd be looking at around £350,000 for sales,

and you'd be looking at around £1,300 per calendar month

for the lettings market.

'If you were to convert this into a two-bedroom property, it would be

'two-double-bedroom and you'd be looking at £400,000 for sales,

'and you'd be looking at around £1,500 per calendar month

'for the lettings market.'

Well, this little flat over a few levels certainly has character

and lots of exciting options.

You could do a simple refurb, or you could think about a full overhaul.

But is it too near to that train station,

or will people absolutely love that?

Let's see what happens when this property went under the hammer.

One-bed, first-floor flat. 250.

Thank you. 250.

255, anywhere?

We've got 250 standing up at the back. Anyone else? It's with you.

Oh, 255, thought you had it. 260...

Bidding started a little sluggish,

but it soon became a nerve-jangling battle.

We rejoin the bidding at 275,000.

..275.

276, 277, 278, 279,

280, 281, 282,

283, 284, 285, 286...

Up a bit, might be... One more go? Yeah?

286, 287...

287, 288, 289,

290...

Must go one... 290. They're struggling a bit. 290? Well done.

291?

291? 291.

I daren't ask you now. 292?

But I've got to. 291. Have a think.

292, elsewhere?

We've got 291 standing up, first time, second time...

Third and last time, if you're all done...

Sold, 291.

Raj was the successful bidder.

He and his business partner finally purchasing the property for 291,000.

And he's definitely in the know when it comes to property.

Not only is Raj local, he has another ace up his sleeve.

I met him to find out how he knows all the right steps.

-Raj, congratulations.

-Thank you very much indeed, thank you.

-So here you have a one-bedroom flat...

-That's right.

..with a tube station right there. I mean, is that handy?

-Is that going to put buyers off?

-I think...

It may put some buyers off, but the real charm of this property

is actually the location of the station.

It's about 10 minutes into central London, to get to Bond Street,

and about 15, 20 minutes into Canary Wharf.

So that is actually one of the charms,

and the reason we chose this location.

So tell me, what is your knowledge of property?

Well, by profession I am actually a property solicitor, and that's

what inspired me to try my dab hand at property developing.

I used to see a lot of clients make a bob or two on the property game...

LUCY LAUGHS ..so I always used to think, "I'm on the wrong end of the transaction."

Then after lots of hard work and perseverance,

-I got my first property about four, five years ago.

-OK.

And I've done a few projects myself.

This one is together with my business partner,

and I've done a handful with him as well.

And of course you hope to make a bob or two yourself.

We would hope so. We would hope so.

We know the market around this area, so we know what prices would fetch.

-OK.

-But we can sit out the market as well.

If the resale value isn't favourable,

we will definitely leave it to rent out, and ride the highs and lows

of the property markets for the next years to come.

OK, talking like a true professional.

So what advantage do you have over somebody else that may just

-go to a property auction?

-I think I knew the legalities of it.

I know on your show, Martin and yourself

are always telling people to look at the legal packs.

So whenever the legal packs are there, for any property myself

and my partner are interested in,

I scrutinise it with a fine tooth comb,

make sure there are no hidden extras or special conditions

-which could be overly onerous.

-Absolutely.

-That is the one thing Martin and I always preach on about.

-Absolutely.

It's so important, because you can get little loopholes,

covenants, all sorts of stuff that creep up in a legal pack.

See, it's not just Martin and I that swear by the legal pack.

And Raj is ready to rewrite the rules of this flat's layout.

So what we're looking to do is, we're looking to reconfigure the property.

At the moment it's a one bedroom,

so what we're going to be doing is taking the wall down

between the current bedroom and the actual kitchen,

and relocating the kitchen into an open plan area.

And the front bedroom will actually become the open plan living area

with the kitchen combined.

So you're looking at creating a lounge-kitchen area, one space?

-That's right.

-And making that tiny little bit left over...

-Yes.

..a bedroom?

-It CAN work. It has worked on previous projects!

-Oh, Raj!

It can actually work.

That is going to be a shoe box, but I know we're in London

and we are literally a stone's throw from the tube.

But that is going to be a very small room, in all honesty.

Come on, this is your game. How much value can you add by doing that?

We would hope a little bit.

We've spoken to a few agents, and knowing from some of the projects

we've done in the past as well... You're right, we are in London.

Even that small second bedroom where you can just about squeeze

that second bedroom in, it does actually make it worth doing.

So when you're looking at the property particulars,

you're like, "Ooh, this is a two-bedder!" Yeah.

So you think that is going to be an advantage to anybody else

-looking to sell a one bed?

-I think most certainly.

And from a rental point of view as well.

If it was a young professional who's perhaps working in town,

they've got that second bedroom, a guest stay over, or so forth.

We definitely think it will give us that edge.

So rather than just make the lounge a second bedroom,

Raj wants to knock down a wall and extend the current master bedroom

to use some of the kitchen area.

Whatever's left of the kitchen can be a bedroom - a tiny bedroom.

It's all very well me banging on about the size of that room,

but this is London. Could Raj be right?

His tangerine dream might give you nightmares

-if you live anywhere else. London?

-'E

-knows his stuff.

He's given himself two-and-a-half months to sort this flat out,

so what's his budget to tackle this?

So come on, how much are you going to spend here?

We've got a budget of between £15,000 to £20,000.

I think, from previous experience, that's a fair estimate,

but obviously we always have a contingency.

-You never know, something...

-Ooh, you are so sensible!

If there's any man that's going to do it right, it's going to be you!

Checklist Raj. I really hope so, Lisa.

Are you that strict, are you that stringent with everything you do?

-It's got to be by the book?

-I think sometimes, but sometimes I get lazy.

I know there can be delays,

and sometimes builders don't turn up, materials are not available,

and sometimes I can't be bothered to get out of bed as well!

And I bet that bugs you like crazy,

-because I know that you like everything just so.

-Yeah.

I just hope you do end up making a bob or two.

-Thank you very much indeed.

-That's what it's all about for you.

-Absolutely.

-Well done, congratulations.

Thank you, Lisa. Thank you so much.

So property solicitor turned property developer Raj

has his latest property for his portfolio.

And if it all goes to plan,

then he is potentially looking at a nice, tidy profit.

But does he really think bedroom number two is worthwhile?

Taking that wall down? Is it really going to add that much value?

You can find out if Raj does make his bob or two

later on in the programme.

There's big plans to sort out this ambulance station's ills.

There's going to be an extension,

and eventually there will be a swimming pool out on the side.

And has our property solicitor caught the development bug?

We'll definitely be hitting the auction room again,

and hope to buy sooner rather than later.

Time to return now to our two-bedroom end-terraced house

with a guide price of £40,000

situated in the Cheshire town of Congleton.

# Do-do-do Come on and do the conga

# Do-do-do It's conga night for sure... #

No, no, Congle-TON.

Oh, nevermind... The house had some...

let's say, eccentricities, including some dangerous-looking stairs,

a slope on the first floor,

and fake wood everywhere.

It wasn't without its charms, though.

Straightaway, one thing that I really like about the place,

it's got character. I mean, look at this for a fireplace.

Whatever you think of it, it's not boring, is it?

In spite of these quirks, I still thought it was a lot of house

on offer for a guide price of 40,000.

And it was even better value for Julia, the successful bidder,

as she paid just £36,500 at the auction.

She was looking to let out the property

and knew what needed doing.

And what about all this

wood/concrete/fibreglass/whatever it is?

Yeah, it needs to go, really, doesn't it?

Well, somebody's gone to such a lot of trouble to put it in,

it's a shame to say yes, but...yes.

Six months have passed, and we've returned to Congleton to see

if Julia's managed to turn this house

from fake wood into really good.

I think we can safely say Julia's dragged this oddity

back into the 21st century.

With new windows throughout,

that traffic noise is much more tolerable,

and those stairs aren't scaring me any more.

Which is always nice.

Julia's even put some wood back in. Real this time.

The main things that we've changed

since you were here last is the windows, we replaced.

We've taken most of the walls back to brickwork and re-plastered, rewired.

New kitchen, new bathroom, new floors upstairs. New flat roof.

Most things that could be done, have been done.

And the house looks all the better for it.

It's not just been a redecoration either.

Julia's also reconfigured some of the rooms

to make better use of the space.

OK, so this originally was the dining area.

And it had quite a large fireplace in the corner, which we removed,

which has opened it up nicely and given us quite a bit more space.

So we decided to put the kitchen mainly in this bit.

Previously it was just in the far side,

which just wasn't enough space to get everything in, really.

So this has allowed us to get all the modern appliances in.

And we've taken a lot of the fake beams out as well,

which has opened it up and brightened it as well.

So it's a nice, light, airy space, which we're really pleased with.

So farewell then, false, wooden beams.

Gone to the great props store in the sky.

And I don't want to be cruel, but I'm glad.

The house looks so much more spacious.

But it's not just cosmetic changes Julia's made.

Along with new windows and a new flat roof, there was

a sloping floor upstairs that needed sorting.

OK, so in here originally, the floor was quite sloping,

so we pulled up the floorboards and realised that the floor throughout

upstairs was needing to be replaced, because the joists were quite rotten.

So we've done that, and that's sorted the problem out.

We also changed the position of the door, because originally

the door was going out onto the staircase, which wasn't very safe.

So we made a little landing by using some of the space

from the main bedroom,

which has worked a lot better. So that's great.

No more wonky floor and dangerous staircase, just two solid bedrooms.

But building work can be expensive,

so I wonder how that ate into Julia's budget.

She bought the property for £36,500,

and had a budget of £23,000.

How did she get on?

It's safe to say that we've totally gone over that with everything.

All the estimations were under, really.

So we've probably come in at about 40,000 all in.

Ouch. That's almost double her original budget.

Those jobs clearly needed doing,

but will Julia be able to get her money back?

We've asked along two local property experts

to get their opinion.

Since my last visit to the property approximately six months ago,

the owners have made some substantial changes, all in all creating

a much lighter, neutral

and more attractive property throughout.

The key things buyers are looking for is a good level of finish.

The kitchen is very impressive with this property,

and certainly I would expect it to sell very well.

I think removing certain features such as decorative beams

has certainly opened the property up a lot,

but we still have retained some of the period features,

such as the fireplaces, the exposed timber flooring upstairs,

which is paramount when selling a property of this character.

Julia's changes are certainly getting a ringing endorsement.

But she has now spent £76,500 on the property.

How much do our experts think this two-bed terrace is now worth?

If I was to place this property onto the resale market, I'd anticipate

to achieve a price somewhere in the region of £80,000 to £85,000.

In my opinion, I'd value this property at a figure

of between £80,000 and £85,000.

That top valuation would give Julia a potential profit

of £8,500 before taxes and fees.

But Julia always intended to rent, so how do those figures stack up?

If I was to place his property onto the rental market, I'd hope

to achieve somewhere in the region of £400 to £450 per calendar month.

The rental market is particularly strong in this area.

I would expect this to achieve a figure of £425 per calendar month.

I think that's fine, yeah.

I suppose 425 was the figure that I was thinking of,

so we're about there, aren't we?

So that's fine, yeah.

Yes, we certainly are there.

That would give her just over 6.5% yield. Pretty good.

Even though, for Julia, it's not all about the money.

I enjoy buying houses that are run down, and seeing the potential

in them, and then seeing them turned round and improved.

So definitely pleased that I went to the auction, and definitely

pleased that I was the one that got this house. So, yeah.

I'm in West Glamorgan in the beautiful Welsh valleys.

Over £1 million has been spent on cycleways and paths

to open up this region to the tourist trade.

It's hoped that tourism will revive the fortunes of places

like the village of Cymmer, where unemployment rates are quite high,

and where local industries are few.

Well, today I'm here to see something a little bit unusual.

It's not a shop, it's not a garage,

it's not commercial premises or a delivery depot. It's actually this.

Can you guess what it is?

I'll give you a moment...

It's actually the former ambulance station.

Yes, this little curiosity used to be the garage

for the local ambulances.

It's seen better days, with its boarded-up frontage

and broken windows.

But with a guide price of just £10,000,

I think it's worth having a look inside.

Well, the main part of the building, not surprisingly, is this area here,

which is, I imagine, where the ambulances were actually stored.

It's about eight metres deep by about seven metres wide,

and a good space. Big, solid floor.

And you've got these large sliding doors,

which open up the whole of the front,

which straightaway makes me think,

great potential for somebody who needs that kind of access,

which is maybe a builder's store, or a garage, or an MOT centre

that really needs to be able to get in and out very easily. Yeah.

Good start. Let's see what else there is.

Taking the stairs up to the first floor,

everything feels very institutional. But it's solid enough.

Well, up here, a bit of a disappointment

cos the space is only about half what it is downstairs.

Primarily this little office area here,

little kitchen and a washing area, shower, toilet, etc, there.

So it's a shame it isn't as big as down there,

but you could have predicted that.

But in terms of maybe using this as some commercial opportunity,

have your area downstairs that you use, this would be the office...

Yeah, it's got exactly what you need. But maybe there's more.

Of course there's more.

Quite a bit more, in the form of this land

at the side of the building.

Ideal for developing, I hear you cry. Well, not quite.

When it comes to the planning classification of this building,

it's actually called sui generis,

which is Latin for "of its own kind" or "unique".

In other words, it's only got planning to be exactly

what it is, which is an ambulance station.

It has a guide of just £10,000, but I think it's going to take

some blue-sky thinking to really make the most of this place.

We asked the agent from the auction house which sold it

whether or not there was any chance of turning this into an investment.

I think a local builder or mechanic, or somebody looking

to store materials,

would probably pay £150 to £200 per calendar month.

Well, at first glance, an interesting opportunity, this one.

But once you delve a little bit deeper,

the options do seem to be a little bit limited.

I don't think it's financially viable to knock it down

and build something its place.

But if the right person needed this kind of space, well, you know,

it could be absolutely spot-on for them.

Let's find out who it was who decided to resuscitate

this old ambulance station by going to the auction.

This is on behalf of the Welsh Ambulance Services Trust.

We've got a property bid here,

ladies and gentlemen.

I'm going to go straight into the reserve at 12,500.

12,500 is bid. Any advance?

13? Thank you. 13,000 is bid.

Proxy's out, 13,500.

13,500, 14, 14,500,

14,500, 15. 15,500.

16, 16,500, 17, 17...

Right, 17 is on you, sir. At 17,000.

17,000 is bid. Any advance? 17,500.

18, 18,500, 19, 19,500, 20.

20. 20,000 is bid. 20,500. 21, 21,500?

21,500 seated here. 21,500 is bid.

21,500, any advance on 21,500?

22? Thank you. 22, half,

22,500. Looking for 23, sir.

I've got 22,500. 22,500, it is there,

I'm going to sell it for 22,500 if I don't see anyone quickly.

22,500, be quick... 22,500...

-HE BANGS GAVEL

-Yours, sir, 22,500.

The cheerful bidder delighted at getting the former ambulance hall

for £22,500 was Peter.

Occupational health nurse Peter was at the auction

with his son Simon, and as they live just a mile away

from the ambulance station, we caught up with them to hear

what made them so excited about this particular property.

Peter, Simon, lovely to meet you both. Congratulations.

Tell me why you wanted to buy this place.

Basically, I want to turn it into a holiday let

for the disabled downstairs, and able people upstairs.

So a holiday let for disabled children, or disabled of all ages?

-Anyone. Any age.

-Oh, wow. So why do you want to do that particularly?

Well, I'm a nurse.

So I work with obviously all sorts of people,

and I feel...

there's a need for accommodation with disabled in mind in the area.

Have you got much experience of this sort of thing?

I've done up a couple of properties.

At the moment we're doing at a property for Simon

who bought a house at the previous auction.

So we're coming to the end of that now. So it's payback time.

And what's your involvement going to be, Simon?

I've been an electrician for about five years,

so I'm going to try and give my father a hand with the electrics.

Oh, great.

And what do you think of the idea of what he's planning in general?

I think it's good.

You get a lot of mountain bikers coming around,

and I think it's a good idea.

Wow, what an interesting idea. Catering to the holiday market

and sports enthusiasts

could really make the most of the pair's local knowledge.

Peter intends that people paying for accommodation on the top level

will help fund holidays for people with disabilities

and underprivileged children on the lower level.

Basically, what we are going to do is keep the garage space for when

the disabled need to come in.

They can drive straight into the building, entrance into the building.

There's going to be bedrooms downstairs,

an extension out to the side,

so to create a big lounge and a kitchen area,

and upstairs...

I'm going to extend the footprint of the building upstairs

to create accommodation upstairs.

-Oh, wow. So quite an ambitious plan, then?

-Yeah.

-And eventually there'll be a swimming pool out on the side.

-Oh, really?

-MARTIN LAUGHS

-Fantastic.

Swimming pool eventually? My goodness.

Peter really does have a vision.

However, this is an ambitious project,

so how much is it all going to cost?

-Approximately about 50,000.

-Right.

And who's going to do the work?

-Mainly myself.

-Right. Well, with the help of your son, obviously?

I'm going to be doing most of the electrics,

and just helping my father with the labour as well.

So is this designed to be a profit-making venture then?

No, not really. It's just something for me to do

coming up to my retirement.

I've got about another four, five years before I retire.

And this is my retirement project.

Quite the retirement project!

Peter is funding this retirement dream with the sale

of his late mother's house, so this really is a project from the heart.

But of course, its success all lies on getting planning permission,

and Peter doesn't have that yet.

Now, what are you going to do if they say you can't do this?

We'll approach that...when it comes to that.

Basically, I think the property will be sellable,

if planning permission isn't granted anyway.

Peter and his wife Jeanette are both nurses and work full-time.

Their other son, Stephen, and daughter, Catherine, are students.

All the children have promised to help.

But it doesn't sound like they have much spare time.

-What's the timescale?

-It'll be at least a year.

Obviously I'm in full-time employment

so it won't be...

I couldn't say six months.

-Right.

-It'll be at least a year.

-So once you've done this, any plans for anything else?

-No.

My wife said this is it!

Listen, congratulations. Good luck with it,

-and I really do wish you the very best with the venture.

-Right.

Well, what a potentially lovely new life

for this former ambulance station.

But of course, it does depend on getting

that all-important planning permission.

Will Peter get it? You can find out later in the show.

Martin, we have seen the work carried out on the first property,

-but we've still got two more to go.

-Yes.

Did the developers manage to do what they hoped for and manage to stick

to those all-important timescales and budgets?

-Shall we find out?

-Let's do it.

Back to Willesden in north London.

A place that was once a village,

but was transformed to a bustling borough

by the arrival of the railway.

Unfortunately, the property I went to see

was a little too close to the tracks.

And with it also being a bit cramped, it might have ended up

feeling like you were living inside a freight train.

A sound test was needed.

TUBE TRAIN

Doesn't make that much difference.

So could it be a positive, could it be a negative? I'm not quite sure.

It depends how quickly you need to get into town.

But jumping on the property train was Raj,

a property solicitor who, along with his business partner,

paid 291,000 for this one-bedroom flat.

But he didn't want to keep it a one-bed for long.

So what we're looking to do is, we're looking to reconfigure the property.

At the moment it's a one-bedroom,

so what we are going to be doing is taking the wall down

between the current bedroom and the actual kitchen,

and relocating the kitchen into an open plan area.

And the front bedroom will actually become the open plan living area,

with the kitchen combined.

-Making that tiny little bit left over...

-Yes.

-..a bedroom?

-It can work. It has worked on previous projects.

-Oh, Raj!

It can actually work.

With a £20,000 budget,

and a two to two-and-a-half month timescale, Raj was very confident.

So when we return five months later,

has Raj found that extra space?

That original bedroom is now a bright kitchen-cum-lounge.

You know, so far I am surprised.

This doesn't feel nearly as cramped as I thought it would.

The original kitchen is now a second bedroom,

and the boiler has been housed in a nice, sleek cabinet.

The original bedroom still needs a bit of tidying up,

but this reconfiguration and refurbishment is looking good,

though maybe not the wow factor I was expecting.

The room which we are currently standing in was actually

the former kitchen. Now you can see it's become a second bedroom.

I think that's worked very well. The back bedroom remains,

but at that time there were pretty much dark colours on the wall,

so we've used neutral colours throughout the flat.

New flooring put down.

The actual bath suite, we retained the actual one that was there before.

We thought that was a good one but as you can see, it's had a good polish

up, so we think it fits the bill.

Raj changed his mind about knocking the wall down between

what was the lounge and the kitchen to create an open living space.

And I think that's a good use of the footprint,

and the finish is impressive.

What we've done here is, we've made an open plan living area.

The initial plan was to take down the stud wall,

and create a little bit more room.

But what we've done is, we've put the kitchen on this side,

along the window. Before doing that, we consulted a few agents,

and they said that was the best way to go forward.

Because that would give us a larger second bedroom, but still

give us the contemporary open plan living with sufficient space.

This has actually been the masterpiece of the whole project,

and we're really happy with the result here.

It's really been a success, I believe.

So Raj hasn't undertaken a lot of the work he originally thought.

Has not replacing the bathroom and keeping that wall saved his budget?

We'd originally estimated budget of £15,000 to £20,000,

but that, of course, involved the taking down of the stud wall

and putting in RSJs and so forth.

However, because we decided not to go ahead with that, the budget's

actually come in significantly under.

I think when everything's totally finished -

there's a few snagging items to do -

I think we will have looked at hitting probably

about the £15,000 mark. So we're very, very happy with that.

It's five months since we were last here, but Raj let a friend

use the flat for two months, before spending three on doing the work.

So only a slight expansion on his two-and-a-half-month timescale.

And unfortunately, there is one final improvement Raj didn't do.

He hasn't changed the windows.

And I think that would have made this flat

so much more attractive, if he decides to sell on.

He might not be able to change the trains, but the sound...definitely.

But there's only one way to know if Raj is on track

for a potential profit,

and that's to get a pass from two local estate agents.

I don't feel the train line creates such a big problem.

It really depends on the sort of tenant or buyer who the property

is going to be aimed at.

If you do have a young family with children, for example,

they are going to have a bit of an issue with the noise at the back.

If the property was on the other side of the road,

it's going to be a lot quieter.

It would create a higher sales and rental figure.

But as I said, for the right people, it's not a huge issue.

'The standard of finish is very nice. It's quite basic.

'It doesn't have the highest of character to it,

'but it's a blank canvas.'

The property's a fairly good refurbishment throughout.

It's a good conversion from one bedroom to two double bedrooms.

Although the compromise is of the living space

of being a living room-kitchen in one.

Paying £291,000 at auction, and with a renovation spend of 15 grand,

Raj's total spend is 306,000.

So what is the flat worth now?

I feel, in the current market, the correct price is £350,000.

I think this property would sell for around £375,000.

I feel the correct rental figure per calendar month

is £1,400 in the current market.

I feel this property would rent for around £1,300 to £1,350

per calendar month.

So taking those top values,

a sale would give Raj a potential pre-tax profit of £69,000.

And if he rented the flat, he could achieve just under a 5.5% yield.

I'm very happy with those values. It's exactly what I'd expected.

I think we will market the property at £375,000.

And if we can get a resale figure between £350 to £375,

we're more than likely to sell it on.

Or, if not, we will put it onto the lettings market.

But I'm happy to say with regard to figures, I was right, once again.

Raj truly is Mr Right. But what can we expect from him next?

And does the man with the plan have any advice for us?

We'll definitely be hitting the auction room again.

But I think a trick about buying at auctions is to be patient,

and not to buy in haste and repent at leisure.

So most certainly we'll be in the auction room again,

and hope to buy sooner rather than later.

Yes, it's time to return to the valleys and this building, a former

ambulance station in the Welsh village of Cymmer, West Glamorgan.

It had a guide price of £10,000,

which seemed reasonable for a lot with a fair bit of land.

But there was a problem.

When it comes to the planning classification of this building,

it's actually called sui generis,

which is Latin for "of its own kind" or "unique".

In other words, it's only got planning to be exactly what it is,

which is an ambulance station.

So what to do with it?

The imaginative and laudable answer was supplied by Peter,

who bought the property for £22,500.

With a budget of £50,000, and help from his electrician son Simon,

Peter, an occupational health nurse,

saw this as a retirement project and hoped to develop this building

into holiday accommodation for touring cyclists.

And he planned that the ground floor would be developed

specifically to accommodate people with disabilities

and underprivileged children.

Basically what we're going to do,

there's going to be bedrooms downstairs,

an extension out to the side,

so to create a big lounge and a kitchen area.

Now, what are you going to do if they say you can't do this?

We'll approach that...when it comes to that.

This was both an exciting and incredibly worthy project.

But having paid £12,500 above the guide price, and having no planning

in place, Peter and Simon were certainly taking a chance.

Three years later,

and we've come back to see what's become of Peter's dream project.

Well, they took a chance, and it's obvious something's caused delays.

Now, I bet you're thinking,

"This is all down to the planning permission."

Well, you'd be partly right.

Most of the time it's been regarding the planning permission,

but there was an issue with obtaining bat and reptile reports.

There was one newt found on the property

and we had to take precautions

to remove newts and to observe that there wasn't any further,

and also to put up a barrier to stop any coming in.

Planning regulations often stipulate the protection of wildlife,

like owls, bats, and in this case, newts.

In Britain, the great crested newt is protected,

so if you think you might have newts,

you'll have to prepare yourself for some possible delays and expense.

Yes, a little reminder that living in the countryside can bring

beautiful views, but occasionally, unexpected problems.

Newt protection and planning permission issues,

as well as waiting for the sale of his mother's property,

means it's been nearly three years since he started.

But, thanks to his perseverance,

Peter's dream can finally be realised

as that particularly tricky planning permission has been granted.

Basically, this is the plan,

and the new extension

is this section here,

which is shown on the side.

There's a doorway entry there, which would be catered for,

the disabled, wheelchair-accessible.

There's the front elevation of it, there's a pitched roof

with three skylights going in the roof

to create more light into the space.

Basically, this is the ground floor of the apartment,

and the majority of the work will involve this new extension here.

This section, to create a lounge and kitchen facilities

for the disabled unit.

Peter will then divide the main garage section into five.

Three bedrooms,

a garage space-cum-store room,

and the bathroom.

Upstairs, he plans to extend too.

Basically through this doorway is going to do the access to the

new extension, where there's three bedrooms.

That's on the first floor.

So the building will effectively be split into two flats,

each with three bedrooms, a bathroom and a kitchen,

with the ground floor flat adapted for people with disabilities.

There will also be a communal area in the ground floor extension,

and, all being well,

Peter plans on installing the property's own hydropool.

It's a big project,

and clearly one that Peter is having to be determined to see through.

He still aiming to spend £50,000 on turning this into a great facility,

but he'll have to do most of the work himself,

with his family's help, to keep to that.

He also, don't forget, has a full-time job.

At the moment it looks as though his dream project will cost

a total of £72,500.

Is Peter on the right track?

We asked two local estates agents to give us their thoughts

on Peter's plan so far.

'I think it's a very ambitious project for the area.

'In this area, local businesses do struggle.'

There isn't an awful lot happening in this village.

Businesses don't seem to last long, because of the economy here.

There is vast unemployment in these valleys, so it is very difficult.

This is a very popular area for mountain biking.

And they'll pay good money for good runs.

Accommodation which is planned which is two three-bedroom flats,

and one that will be completely geared for disabled users,

I think that's going to carve quite a nice niche for him,

and I think it will attract that type of mountain biker,

in that market.

So a good idea that fits a niche market. But in a difficult economy.

Bit of a mixed bag there.

Peter hopes to rent both flats as holiday lets

for between £300 and £350 per week,

maybe slightly higher in the peak season.

And he hopes that the upper flat will generate enough income

to subsidise lower rates for the lower flat,

and use the void periods to accommodate families

with low incomes.

So this project, for him, isn't really about money.

However, we have to ask, when fully finished and including the pool,

what does the agent think a commercial enterprise

based on Peter's plan could make?

That's quite a difficult one,

because there aren't a lot of commercial properties in this area,

so I think you're probably looking at about 600 per calendar month.

That would mean around a 10% yield.

If, by some unfortunate circumstances,

the local economy couldn't sustain the business,

and assuming planning permission could be obtained, would Peter

get his projected £72,500 investment back,

if the building were to be turned into two residential flats?

I think you would get anything between 375 and 400

per calendar month, per unit.

To change this into two three-bedroom,

good-sized accommodation,

you would probably market each unit

for around about £35,000 to £40,000.

I would put a vacant possession value on each flat

of circa £40,000, if it's done to a high standard

and to the standard that is intended in the planning permission.

This is a dream project for Peter,

but would he think about this, plan B?

I may consider splitting it into two units

if the business didn't take off. But basically, it's quite exciting.

You know, I thrive on this sort of thing.

And I'm just looking forward to getting into it.

Well, that's it for today,

but join us next time for some more auction action.

-And stories of property developing.

-Look forward to seeing you then.

-Goodbye.

-Goodbye.