Episode 77 Homes Under the Hammer


Episode 77

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Transcript


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Hello and welcome to the show.

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Interest rates, planning laws, building regulations, well,

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these are just a few things that can change whilst doing a project.

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Yes, you can see why property developing is never boring.

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That's certainly true when you visit a property auction!

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Well, if you decide to buy at auction,

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you need to do your research, visit the property before hand

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and make sure you stick to your budget.

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That way, you make sure that you don't spend too much money.

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So, let's see what went under the hammer on today's programme.

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In South Wales, this wall is fighting a losing battle.

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It's holding back that bit of Welsh mountain -

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stopping it from collapsing into that bit of the house.

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And down but not out in Devon,

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a sad looking six bed end-terrace just needs cheering up.

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-You're a house cuddler?

-Yeah, yeah.

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But all is not lost for this former pub in Kent.

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I think you could easily divide this ground floor space into two

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separate flats.

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All of these properties have been sold at auction,

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

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when they went under the hammer.

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Yours.

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This is Pontygwaith, a small village in the South Wales Valleys.

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# The old home town looks the same

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# As I step down from the train...#

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Well, the literal translation of Pontygwaith is "Bridge of Works",

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relating to an old blast furnace that was here in years gone by.

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Well, the iron works and the mines have long gone but what was

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once a valley black with coal dust, is now a green and pleasant land.

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# It's good to touch the green, green grass of home. #

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Well, lovely views from the road where the property's situated

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and the property itself sounds pretty enticing.

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£25,000 plus was the guide price, three bedroom terrace,

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looks pretty neat from the outside, let's take a look.

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WOLF WHISTLE

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# Wow, she's neat

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# Don't know what to do without her

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# All I do is think about her... #

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Certainly, the stone built exterior is attractive,

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although the steps up to the front door might put a few buyers off.

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Nice carpet, that's always a good sign.

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Seems to be fairly well presented,

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as the catalogue said. Yeah, that's good.

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Erm, and then through from that little hallway into a large

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-living room.

-HE SNIFFS

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No smell of damp, nice size space, lots of light coming into here.

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Yeah, central heating, that's good news.

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I like those double doors, actually.

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I like the way they open up like that.

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Again, it gives a really nice, sort of, open plan feel.

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Come from there into the kitchen,

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probably built into an extension onto the rear of the property.

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It's not in bad condition, I mean, I've seen worse, I've seen better.

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It depends, really, what you were going to use this property for.

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Erm, renting it out, I think this is perfectly adequate.

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Living in it, you might want to update it.

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Erm, but it's OK, continuing that way, again, very traditional,

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that's where the loo and bathroom is.

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Is that a problem? I don't think it is.

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All in all, yeah, it's living up to its promise.

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# She's neat, she's sweet, makes my life so complete

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# She's neat, she's sweet, makes my life so complete. #

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The very presentable downstairs

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is matched by the three bedrooms upstairs.

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Two to the front of the property and one to the back.

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Oh, let's have a look in the back garden.

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So far, so good, then, but step outside to the rear

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of the property and a potentially major issue presents itself.

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Well, it is made reference to in the auction catalogue.

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It says, "There is a retaining wall which needs attention."

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Now, whenever you hear those words "retaining wall"

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and "needs attention", you definitely need to be wary.

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Because any kind of ground works can cost quite a lot of money.

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Now, this is the wall that they're referring to.

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It's basically holding back that bit of Welsh mountain

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and stopping it from collapsing into that bit of the house.

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So, you might say, "Big deal, take it out and replace it."

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Problem is, getting your materials,

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where are you going to get them from? You can't bring them in

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the back of the house. What about all the stuff you'd take out?

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Again, you can't take it through the back of the house,

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it all has to go through the house.

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That turns this into a very labour intensive job.

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That means it's going to be expensive! How expensive?

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What do you think? Two, three, four, five thousand quid?

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Nah, add another ten on,

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15 grand or so...oh, yeah, and you'd be about right.

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# Walls come tumbling down. #

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You would not want that wall tumbling into your bathroom

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while you were brushing your teeth - that's for sure!

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So, one wall to fix and one big bill,

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but what does an estate agent

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think of this property and its problem wall?

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The retaining wall is probably one of the worst walls I've seen,

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cos of the height and the access.

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You can't get a mini-digger in, everything's got to be done by hand.

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So, it's going to be a labour intense job.

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Would he suggest any work to the inside?

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If this was me renovating this house,

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I wouldn't spend much on the inside whatsoever.

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A lick of paint here and there, you know,

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there's brown in the kitchen, people might not like that.

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I'd just knock it back to beige, neutral.

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A bit of flooring here and there, where there's been

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a bit of damage but apart from that, it's a really good property.

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So, what about values, once renovated?

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If the inside was done up a little bit better

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and the wall was done and it was retained better

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and it was secure, the likelihood is,

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you'd probably get about 70,000, maybe 75,000 for this property.

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And if you opted to let this instead?

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You could easily achieve £425 per calendar month.

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Possibly even £450 per calendar month,

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cos it's such a good standard.

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Well, it's a good property.

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You know, nothing wrong, until you step outside to the back here

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and that whole wall issue.

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However, if you put aside a budget to sort it out, then,

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this is still a great property to buy.

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

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Well presented mid-terraced house, guided at 25,000.

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Again, start me, will you start me somewhere near,

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start me at 25? Start me at 20, then?

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20, somebody? Thank you, 20, I've got you there.

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At 20, and one, now can I see? I've got 20 there, one I'm looking for.

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At 21, 22?

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22, 23, 24,

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25, 26, 27, 28...

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With such a good guide-price, it's no wonder that bidding was brisk.

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We rejoin the auction with the price at 38,000.

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38...and a half?

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38 and a half, 39?

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39...and a half? No.

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£39,000, then, back where we were earlier.

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At 39,000, for the first time,

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second time, third and last time...

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39 and a half, new bidder.

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40, sir, to you? £40,000, no.

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At 39 and a half with a cheeky last little bid, at 39 and a half,

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for the first time, second time, third and last...£40,000.

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I love it when people change their mind.

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40, 40 and a half.

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41? 41. 41 and a half, 42.

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42, no. At 41 and a half then, right at the back, first time, second time,

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third and last time then, at £41,500,

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yours, show your number please, is number 55, thank you very much.

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That successful bid was made by Iwan,

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one half of a local property development partnership.

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I met up with the other half, Brian, back at the house,

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to chat about their plans.

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-Brian, good to meet you.

-Nice to meet you, Martin.

-Congratulations!

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Thank you. So, why did you want to buy this house?

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Erm, just as an investment, either to sell or to rent,

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depending on how it goes.

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What was it about this one you particularly liked?

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Erm, just that it was a nice house, nice size, erm,

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I knew a little bit about the wall but thought that it could be done

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and we could make a profit out of it.

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OK, so that wall coming straight in to your thought processes...?

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-It's a bit worse than what I thought.

-Oh!

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Erm, but we'll get through that.

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# On common ground we'll build our castle walls

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# We'll build them stone by stone

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# And how. #

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Brian had seen the property before the auction but now,

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having made a closer inspection of the wall,

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realises it needs a lot more work than he first anticipated.

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What kind of estimates have you had for the cost?

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Erm, I've only I've had one estimate at the moment.

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Erm, and that's looking between 10-15,000.

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-Right.

-So, it is quite a big job.

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Was that a shock or was that OK?

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-Erm, when I first saw it, I actually thought about 8,000...

-Right.

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-..cos I knew it was going to be quite a big job.

-Right.

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It's one of those jobs...

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On the face of it, it's not that complicated

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but it's all heavy, labour intensive work, isn't it?

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Yes, and the hardest part is that

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the only access is through the house.

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So, all of the dirt, heavy stuff is going to be going through the house.

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Concrete mixers, tools, people, muddy boots...

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Yes, and pound notes.

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-And pound notes!

-HE CHUCKLES

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In their business partnership, Brian usually does all the hands-on work

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and Iwan deals with the finances.

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But this time around, Brian will leave the major and potentially

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problematic task of the wall to professional builders

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and will focus on the interior.

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It's just going to be a makeover with, basically, decorating,

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paint it up, get it all neutral colours.

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Get it nice looking, have a look at the carpets,

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maybe clean them up or even putting new carpets in.

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New lino into the kitchen and bathroom and that's basically it,

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-on the inside.

-Leave everything as it is -

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no thoughts of moving the bathroom upstairs or anything like that?

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No, no, it all works, and it was working for he previous tenants,

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so definitely we'll leave it as it is.

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OK, let's talk budgets then.

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You talked about the wall costing 10-15,

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what about the other stuff you're going to do in the house?

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Inside, erm, we're going to get the gas and electrics checked,

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get certified, erm,

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I think that's going to be the biggest expense.

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And the rest is literally going over with the paintbrush.

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I would say a budget of £1,000-1,500

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maximum on the inside.

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So, in total, 16 and a half,

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if it went towards 15 for the wall.

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What's the timescale?

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Timescale was going to be a couple of weeks...

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HE LAUGHS

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-Oops!

-..up until we found out how bad the wall was.

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Obviously, trying to get a builder in for that

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length of time, you've got to know when they can start.

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So, we're looking, like, three to four months now, I think.

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Right.

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These kinds of problems can sometimes leave you snookered.

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I just hope that Brian gets a big break with that wall.

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Can you see where this is going?

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What about your pastimes, hobbies and things like that?

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I used to play a lot of snooker.

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-Snooker?

-At a high level.

-How high?

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I used to play in all the Welsh amateur championships.

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Did you? Did you do well?

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Erm, there's too many good players about, so...

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MARTIN LAUGHS

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..yeah, so, held my own on some tournaments.

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-Great, what was your biggest break?

-137.

-You got a 137 break?!

-Yes.

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-Twice?

-Twice, yeah.

-Wow, that must've felt amazing!

-Yeah, it was.

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I heard you did a bit of poker playing in your previous life?

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I'm not allowed to play poker any more,

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the wife has put a stop to that.

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-I've knocked it on the head.

-Were you a good poker player?

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-I made the first Welsh Open poker tournaments...

-Wow!

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-..and made a TV stage on there.

-Oh, did you?

-I came seventh in the end.

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-Did you? That's pretty good!

-Yeah, it was all right, got lucky.

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Well, hopefully not too much of a gamble with this house.

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Yeah, it's a bit more than what we thought

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-but we'll get through it and we'll do a good job.

-Good.

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Well, congratulations, good luck with it.

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Thank you very much, Martin.

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I'll look forward to see how you end up.

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Well, thank goodness Brian knew about the only real issue

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with this property.

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It is, intrinsically, a really good house

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but then there is the great wall of Pontygwaith to consider.

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How will he get on rebuilding it?

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You can find out later in the show.

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Okehampton, in Devon, can be found on the Northern side of Dartmoor,

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just 24 miles from Exeter and 30 from Plymouth.

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It's an idyllic town, perfect for people who want to enjoy

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the countryside and visit the North Devon coastline.

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Just five minutes walk from the town centre is the property

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I'm here to see. It sounds fantastic!

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£150,000 plus was the guide price for this,

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a six bedroom end of terrace.

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Look at all the granite around the windows.

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Fantastic, I love it already!

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A great guide price for a solid looking property that,

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on the outside, has bags of character.

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OK, interesting little entrance, vestibule.

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Nice granite!

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Again, erm, through into the main part of the house

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and immediately a sense of, well, grandeur, actually.

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It's a little bit cramped in this particular part but, pff,

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wow, there's lots to explore.

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That would definitely be a favourite room of mine.

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Straight away, it's not really big enough to be a living room

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but maybe a study or a library or something.

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Lots of light flooding in through those great big windows.

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Stairs up to the numerous bedrooms there.

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It feels a little bit cramped.

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I don't know what you could do to try and open it up

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but the rooms themselves are fantastic, kitchen there.

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Units...you know, you'd probably want to replace them.

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I think you could make that look a real sort of central

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point for the property.

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Into this room here, which is like a large...double aspect

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dining room-stroke-living area, it's really, really great.

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I'm thinking, straight away, I'm wondering

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if this wall could maybe be taken away.

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Cos that kitchen isn't really as big as you'd like it to be.

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Maybe put an RSJ across there, open that up,

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so you have a kitchen, breakfast bar, dining area here.

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You've already got the patio doors out onto the garden.

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What a room that would be

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and it would really open up the ground floor.

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But bearing in mind that is just the ground floor

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and bearing in mind again, it's a terrace, wow!

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# Do you love me?

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# I can really move

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# Do you love me?

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# I'm in the groove

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# Do you love me?

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Yes, it needs a bit of updating and possibly a little restructuring

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but it is looking very promising indeed.

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Let's take a look outside.

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Well, at the back of the property, erm, a little sort of courtyard

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area here, which would be much nicer if it had some nice tiles on it.

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A useful out building, in fact, a couple of out buildings.

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Well, one building split in two and an outside loo.

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This bit of garden,

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And if that was it, I'd say, "Mmm, pretty good".

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But there's more because come through this little gate and

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there's this little area here.

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The most unusually shaped garage I've ever seen, that's yours,

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as is this little bit of land here.

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But even better than that, you have separate access down this

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little shared, well, alleyway, I guess.

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All in all, what a bonus!

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A family sized house, with a family sized garden is always desirable.

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It clearly needs a lot of work.

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Hopefully, this isn't the only loo

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but there is definitely potential once you figure out what to do.

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So, upstairs to the first floor and, well...I'm not going to say

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"at last", that's not fair, but there is, finally,

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if you like, a negative about the property.

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Erm, obviously, a lot of damp coming in through that wall there...

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and it looks fairly serious, judging by that.

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I'd be concerned about how it might have affected the stairs,

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cos once you get into trying to do new carpentry on the stairs,

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if it's rotted, that is going to be really expensive.

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So, find out what's causing that would be my number one job

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if I bought this place.

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But up here, smallish landing,

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you've got three bedrooms here, they're all really good sizes.

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You've also got a bathroom with a separate loo, so that's good.

0:17:560:18:00

Rooms themselves, well, if that wall is damp,

0:18:000:18:05

these ones don't seem too bad.

0:18:050:18:07

Erm, you know, good size, lots of light coming in through the windows.

0:18:070:18:11

The windows themselves look like they could do with replacement.

0:18:110:18:17

Apart from that, nope,

0:18:170:18:20

it's still really, really good.

0:18:200:18:24

There are a couple of signs of damp that need to be investigated

0:18:260:18:30

in the bathroom and the fact this is the only bathroom is not ideal.

0:18:300:18:35

On the top floor, there are three more good size bedrooms.

0:18:370:18:41

Perhaps, it'll be worth turning

0:18:430:18:46

the smallest of these into another bathroom.

0:18:460:18:48

It all depends on what you plan to do with the property.

0:18:480:18:52

It's a great house with bags of potential

0:18:520:18:56

but money does need to be spent on it.

0:18:560:18:59

However, with a guide price of £150,000 plus,

0:18:590:19:02

you would expect that.

0:19:020:19:03

What does a local property expert think of it?

0:19:050:19:09

Erm, my first impressions of the property are that it's a bit

0:19:110:19:14

tired out, actually, needs a bit of refurbishment

0:19:140:19:18

and bringing up to date.

0:19:180:19:20

I think modern buyers are expecting to have WC facilities, at least, on

0:19:200:19:26

each floor and bathroom facilities on floors that have bedrooms on.

0:19:260:19:30

So, for this property,

0:19:300:19:33

I would be looking for there to be a cloakroom on the ground floor,

0:19:330:19:36

for there to be the current refurbished

0:19:360:19:39

bathroom on the first floor and on the top floor for there to be an

0:19:390:19:43

addition of bathroom or shower facilities with WC.

0:19:430:19:46

That all sounds very doable but what kind of re-sale figure could

0:19:460:19:51

this house reach if fully renovated?

0:19:510:19:54

I see this property as coming onto the market at a guide

0:19:540:19:58

price of £250,000 and I'd be expecting it to

0:19:580:20:02

achieve as near as possible to that price.

0:20:020:20:04

What about the rental returns?

0:20:040:20:07

Once all the works have been done on the property, I would expect

0:20:070:20:11

it to achieve around the price of £850 per calendar month.

0:20:110:20:16

Well, a few issues to resolve. Damp, a few extra bathrooms would be nice.

0:20:160:20:22

Apart from that, this is a great house and for a fantastic

0:20:220:20:25

guide price, let's see who spotted it when it went under the hammer.

0:20:250:20:29

It's a six bed house, it is a bit of a doer-upper, as they say.

0:20:310:20:36

It's guided at 150,

0:20:360:20:38

so anybody like to start on 150,

0:20:380:20:41

on the nail of the guide.

0:20:410:20:43

150 to go?

0:20:430:20:44

150 to go, 145 will do...

0:20:470:20:49

Sorry, 150 I'll take.

0:20:490:20:51

Yeah, 150, any advance on 150?

0:20:510:20:54

151, 152, 153, 154, 155.

0:20:550:21:00

£150,000 seated here.

0:21:000:21:03

Any advance on £150,000?

0:21:030:21:07

It's £150,000 seated, anybody else want to advance on this?

0:21:070:21:09

There's a few builder-developer types here, you've got to have

0:21:090:21:12

looked at this - if you haven't, you're missing a trick!

0:21:120:21:15

150 seated, right, we're going to go at 150.

0:21:150:21:18

I'm going to call it for the first time at £150,000. Second time.

0:21:180:21:23

Happy at 150, yeah, nodding, second and third and last time.

0:21:230:21:28

I am surprised that we're not getting any further bids here.

0:21:280:21:31

It's 150.

0:21:310:21:32

It's sold at 150.

0:21:330:21:36

Getting the end terrace that, very surprisingly,

0:21:360:21:39

no-one else appeared to want, was Beverly.

0:21:390:21:42

That solitary bid for bang on the guide price of 150,000

0:21:420:21:47

sealed the deal.

0:21:470:21:49

Beverly, who works within the NHS, has done up three properties before.

0:21:520:21:56

So, I can't wait to see what her plans are for this property!

0:21:560:22:00

-Beverly, congratulations!

-Thank you.

0:22:000:22:03

Although, I have to say, you looked a little bit stunned there!

0:22:030:22:06

Yeah, it was a really scary moment, yeah.

0:22:060:22:09

I really didn't think I'd get it and I couldn't believe it

0:22:090:22:11

when no-one else bid!

0:22:110:22:13

It was just a very, very bizarre feeling.

0:22:130:22:16

I was expecting to have to bid against somebody else

0:22:160:22:18

and then there was this deathly silence.

0:22:180:22:21

I mean, you intended to buy it, did you?

0:22:210:22:23

It wasn't a random, spur of the moment thing? No, not quite.

0:22:230:22:26

Although, my daughter did say,

0:22:260:22:28

"I didn't know you were going out to buy a house, this afternoon, mummy!"

0:22:280:22:32

I was going with a fact finding mission, to plan to try

0:22:320:22:37

and buy something in a few months' time.

0:22:370:22:40

So, it was just a bit earlier but, erm, as I wanted to be in Okehampton,

0:22:400:22:44

in the end, and found this one, and it came along at the right price,

0:22:440:22:48

seemed rude to turn it down, really.

0:22:480:22:51

So, why did you want to buy it then?

0:22:510:22:52

Well, I have this thing about sad, old houses.

0:22:520:22:55

I like to make them lovely and lived-in again and loved.

0:22:550:22:59

It's just been a bit of a challenge that's been

0:22:590:23:02

at the back of my mind for a few years now.

0:23:020:23:05

And I was in a position to buy at auction,

0:23:050:23:08

so it seemed an ideal opportunity to make my money work for me.

0:23:080:23:12

Right, so, you're a "house cuddler" basically?

0:23:120:23:16

SHE LAUGHS

0:23:160:23:19

-You cuddle them back into being loved places.

-Yeah.

0:23:190:23:22

Yeah, I suppose, over the time since my first house

0:23:220:23:26

when I was only 19, we've had a few that have needed a lot of TLC.

0:23:260:23:32

I love decorating too, so I'll get someone else to do all

0:23:320:23:36

the dirty work and then I'll do the painting and make it look lovely.

0:23:360:23:40

# Cuddle up a little closer

0:23:420:23:45

# Lovey, mine. #

0:23:450:23:49

Beverly will be enlisting the skills of a friend

0:23:490:23:51

in the building trade, while she makes it lovely.

0:23:510:23:55

I, for one, am delighted that this house has been taken over by

0:23:550:23:58

someone who just wants to give it some real love and even better,

0:23:580:24:02

turn it into her home, a very big home.

0:24:020:24:05

-Beverly, it's just you... and six bedrooms?

-Yeah.

0:24:080:24:11

Well, it's not going to stay six bedrooms

0:24:110:24:14

and it's not going to stay one toilet either.

0:24:140:24:16

So, yeah, the smallest bedroom is going to become a shower room

0:24:160:24:22

and the bathroom's going to have a toilet put in it and then

0:24:220:24:27

the toilet that's there now, I'm going to turn into a mini en-suite

0:24:270:24:31

for the second bedroom.

0:24:310:24:32

OK, so you'll end up with five bedrooms?

0:24:320:24:36

Yes, cos there'll be three bedrooms on the third floor and then

0:24:360:24:39

two bedrooms on the attic floor, with the shower room up there.

0:24:390:24:42

I'm looking forward to doing something with the garden,

0:24:420:24:46

as well, cos it's a bit of a project.

0:24:460:24:49

Yes...wow!

0:24:490:24:50

Beverly is also planning on a new kitchen,

0:24:520:24:54

with a new access way along the side of the property.

0:24:540:24:57

Along with that, she's also looking to create

0:24:570:25:01

a conservatory that will incorporate the outside loo,

0:25:010:25:05

which all begs the question...

0:25:050:25:07

Budget, budget, budget?

0:25:070:25:09

Probably about 25-30 grand to do all that I want to do.

0:25:090:25:12

Depending on how much it costs,

0:25:120:25:15

depends on whether we do the outside bit

0:25:150:25:18

and how much I can spend on the garden and the tatty garage

0:25:180:25:20

at the bottom of the garden to maybe bring that to be a nice,

0:25:200:25:25

stone summer house.

0:25:250:25:26

-So, what about timescale?

-Probably four, five months...

0:25:260:25:29

I'm looking for.

0:25:290:25:31

Well, I'm delighted that it found you and you found it!

0:25:310:25:33

Good luck setting up your new home.

0:25:330:25:35

-Thank you.

-Look forward to seeing how you get on.

-Thank you.

0:25:350:25:38

Well, it's natural

0:25:380:25:41

and probably quite healthy to be a little bit suspicious

0:25:410:25:44

if something seems to be too good to be true when it comes to property.

0:25:440:25:47

But in this case, I think Beverly has just got herself

0:25:470:25:52

an absolutely fantastic deal with this property.

0:25:520:25:55

And how wonderful that she's going to turn it into her home.

0:25:550:25:58

You can find out how it all turns out later in the show.

0:25:580:26:01

Still to come, is it last orders for this pub in Kent?

0:26:040:26:07

The bell's gone to ring time, not even a dart board in here!

0:26:080:26:13

And is Beverly just what the doctor ordered for this house,

0:26:150:26:18

in Okehampton?

0:26:180:26:19

A lot more needed doing than we ever dreamt.

0:26:190:26:23

We're returning now to the Welsh Valleys, to the

0:26:270:26:30

village of Pontygwaith, where this mid terrace three-bedroom house

0:26:300:26:34

was up for auction at a guide price of £25,000.

0:26:340:26:38

The inside of the house was in really good condition,

0:26:380:26:41

which might lead some folk to think this was a bit of a bargain.

0:26:410:26:45

But venture into the back garden and there was a major structural

0:26:450:26:50

problem that needed to be dealt with.

0:26:500:26:53

There is a retaining wall which needs attention.

0:26:530:26:57

It's basically holding back that bit of Welsh mountain

0:26:570:27:01

and stopping it from collapsing into that bit of the house.

0:27:010:27:05

The house was bought for £41,500 by business partners Iwan

0:27:090:27:14

and Brian, who were aware of the problem wall, and also realised

0:27:140:27:18

that to repair it, everything would have to come through the house.

0:27:180:27:22

All of the dirt, heavy stuff is going to be going through the house.

0:27:220:27:26

-Concrete mixers, tools, people, muddy boots.

-Yes.

0:27:260:27:30

MARTIN CHUCKLES

0:27:300:27:32

-And pound notes.

-And pound notes!

0:27:320:27:35

Four months after our first visit, we've come back to see if Brian

0:27:390:27:42

could move mountains or, at least, hold this one back.

0:27:420:27:46

Well, it looks like the mountain has been well and truly tamed,

0:27:510:27:56

by this expanse of solid brick work.

0:27:560:27:59

It took six weeks to build, at a cost of £18,000.

0:27:590:28:04

But it's money well spent if it protects the rest of the house.

0:28:040:28:09

We had to take it all the way down, which was 30 tonnes of rubbish

0:28:090:28:14

going out through the house.

0:28:140:28:16

We had to do it manually, by buckets,

0:28:160:28:19

going through the house, and obviously,

0:28:190:28:21

you can understand how much of a mess it made inside the house,

0:28:210:28:25

on the downstairs.

0:28:250:28:26

We had to go back two metres

0:28:260:28:30

and we had to relay some footings

0:28:300:28:33

and then we had to build the wall by staggering it from a metre and a

0:28:330:28:37

half wide, all the way up to a top,

0:28:370:28:41

to give it a nice, solid foundation.

0:28:410:28:43

I'm now happy that the wall is finally done

0:28:430:28:46

and done to a good standard and for the people who are moving in,

0:28:460:28:50

it's going to be less of a worry for anybody.

0:28:500:28:52

# Move any mountain. #

0:28:540:28:56

After moving the mountain, well, 30 tonnes of it, everything else was

0:28:560:29:01

pretty much straightforward.

0:29:010:29:04

We had to have the extension re-rendered, re-painted all the

0:29:040:29:10

rendering and also put a new fence up on top of the wall that we built

0:29:100:29:14

because it was quite a high wall

0:29:140:29:16

and needed some sort of safety element to it.

0:29:160:29:19

With the inside of the house being in such good condition,

0:29:220:29:26

Brian didn't have to do much other than decorate.

0:29:260:29:30

A new floor in the bathroom

0:29:300:29:32

and kitchen was the most obvious improvement to be made.

0:29:320:29:36

The original budget for refurbishment was 16,500 but

0:29:360:29:40

obviously with the wall coming in at 18,000, there has been an overspend.

0:29:400:29:46

We've just gone under 20,000.

0:29:460:29:50

So, all in all, with the work on the wall, it wasn't too bad.

0:29:500:29:54

I man managed, obviously, the work that needed to be done.

0:29:540:29:57

We had a local building company come in to do the work on the wall,

0:29:570:30:02

which they've done a fantastic job and redecorated

0:30:020:30:06

and done all the rest of the work myself then.

0:30:060:30:10

The question is, after all that hard work and spending £18,000 on a wall,

0:30:110:30:16

will it have added any value to this property?

0:30:160:30:20

With that in mind,

0:30:230:30:24

we asked two local property experts along

0:30:240:30:27

to see what Brian and Iwan could expect to realise

0:30:270:30:30

from the local housing market.

0:30:300:30:32

When we first came here,

0:30:320:30:33

I was surprised that this was actually sold in auction

0:30:330:30:35

because it was such a lovely property.

0:30:350:30:37

It wasn't until we went out the back

0:30:370:30:39

and saw the damage to the wall that's occurred,

0:30:390:30:41

and I can see why the money was spent on that.

0:30:410:30:44

Locally, it's a lot of money to be spent on a wall,

0:30:440:30:48

but the price that the house was purchased for,

0:30:480:30:51

added to the value of the property, I think there's money to be made.

0:30:510:30:55

The property's been renovated to a very good standard,

0:30:550:30:58

nicely decorated in neutral colours.

0:30:580:31:00

Nice-sized kitchen, good-sized bedrooms

0:31:000:31:03

and they've done a very good job on the back garden.

0:31:030:31:06

I think this property will appeal to everyone.

0:31:060:31:08

You've got families, you've got three bedrooms.

0:31:080:31:10

Could be a first-time buyer. Could be a buy-to-let landlord

0:31:100:31:13

because there's money to be made there,

0:31:130:31:15

so it's really ticked all the boxes.

0:31:150:31:17

They both like the house,

0:31:190:31:20

but could that translate into profit for Brian and Iwan?

0:31:200:31:23

Let's get some valuations.

0:31:230:31:25

If I was to market this property,

0:31:280:31:30

I would put it on for £85,000 for resale

0:31:300:31:34

and if I was looking to rent the property,

0:31:340:31:38

I would put it on for between £425 and £450 per calendar month.

0:31:380:31:43

This property could sell for at least £80,000.

0:31:430:31:46

And this property would also rent for £450 per calendar month.

0:31:460:31:50

A rental at £450 per calendar month

0:31:520:31:54

would bring in a yield of almost 9%.

0:31:540:31:58

That's a pretty healthy figure.

0:31:580:32:00

But the boys have decided to sell this house,

0:32:000:32:03

and having spent a total of £61,500,

0:32:030:32:06

if they get that top price of 85,000,

0:32:060:32:10

they would net a pre-tax profit of £23,500.

0:32:100:32:16

Actually, we've got the property on the market for £84,995

0:32:160:32:20

so spot on, really, with the pricing.

0:32:200:32:23

So what's next for Brian and Iwan?

0:32:230:32:26

While finishing this house, we actually went to auction

0:32:260:32:28

and bought another property and I think we'll do so in future as well.

0:32:280:32:33

Sittingbourne in Kent was once a popular watering hole

0:32:400:32:43

for travellers journeying between London and Canterbury.

0:32:430:32:47

The arrival of the railway sounded the death knell

0:32:470:32:50

for many of the inns in the area.

0:32:500:32:53

Times may have changed,

0:32:530:32:54

but it's not much easier making a living from a pub these days.

0:32:540:32:58

That is certainly true of the property I'm here to see today,

0:33:020:33:06

because it's this former pub, which had a guide price of £125-135,000.

0:33:060:33:13

I wonder what possibilities lie inside. Let's venture in.

0:33:130:33:17

Oh, pubs are always handsome buildings,

0:33:190:33:21

and they have such amazing proportions.

0:33:210:33:23

I always think they would be brilliant

0:33:230:33:26

to turn into a family house, but that's not to be for this property.

0:33:260:33:29

And as you can see, it's quite quiet.

0:33:290:33:31

I can't imagine this would work any more as an old boozer.

0:33:310:33:34

There's certainly not enough footfall.

0:33:340:33:37

And look, this is where the brewery would have turned up,

0:33:370:33:40

-rolled out the barrels...

-SHE STRAINS

0:33:400:33:42

You'd go under there.

0:33:420:33:43

All the beer would have been stored underneath to keep it nice and cool.

0:33:430:33:47

It's a fantastic space.

0:33:470:33:48

The bar area here, although the bar's gone,

0:33:480:33:51

the optics have gone, the bell's gone to ring time.

0:33:510:33:54

There's not even a dart board in here.

0:33:540:33:56

It's in a bit of a sorry old state.

0:33:560:33:58

You've got your glasses still down there,

0:33:580:34:00

probably some tables and chairs for people that like to eat some food.

0:34:000:34:04

Up here... It's not huge.

0:34:040:34:07

But I bet it was fun in its day. Going to explore.

0:34:070:34:10

The first question to ask yourself is,

0:34:180:34:21

"Does it stay as a bar?"

0:34:210:34:22

As well as the open-plan bar space,

0:34:220:34:25

there's a good-size commercial kitchen to the back.

0:34:250:34:28

Perhaps with this kitchen, you could turn it into a restaurant.

0:34:280:34:31

Or could the property be converted for residential use?

0:34:310:34:35

Let's see what upstairs has to offer.

0:34:350:34:37

So this was obviously the living accommodation above the pub.

0:34:400:34:44

The sitting room, I take it. You can see by the fireplace here.

0:34:440:34:47

So quite a good space.

0:34:470:34:49

You've got nice, big windows there, but from where I'm standing,

0:34:490:34:52

there's a big old corridor with room going off to another room

0:34:520:34:56

and another room. I'm going to explore.

0:34:560:34:58

Goes on forever!

0:35:010:35:02

Come on.

0:35:030:35:04

Down this corridor are three bedrooms and a bathroom,

0:35:070:35:10

and regardless of what you do downstairs,

0:35:100:35:13

it would make sense to keep this floor as accommodation

0:35:130:35:16

for rent or sale.

0:35:160:35:17

Looks as though somebody's had a real good old go

0:35:170:35:20

at ripping this out of the wall, sadly.

0:35:200:35:23

It's a beautiful old fireplace and it's a nice room, in fact.

0:35:230:35:26

You've got this lovely window

0:35:260:35:27

so could be a bedroom or a sitting room.

0:35:270:35:30

Bedroom through there, bathroom,

0:35:300:35:32

another nice room, which is the mirror image of next door,

0:35:320:35:35

again with this lovely window.

0:35:350:35:38

Now I've have a chance to walk around, I'm just thinking,

0:35:380:35:41

if you were to develop this and turn it into flats,

0:35:410:35:44

it would almost be too much of a luxury to have this as one flat.

0:35:440:35:49

You know, it's just too big. There are too many rooms.

0:35:490:35:52

And if you wanted to carve it into two separate flats,

0:35:520:35:54

I think then it would be just that bit too small.

0:35:540:35:59

Leave that one with me. I need to think about it.

0:35:590:36:01

Outside, there's a courtyard with outbuildings

0:36:050:36:08

and a beer garden which would be ideal for off-road parking,

0:36:080:36:11

until you realise it's on a higher level than the street.

0:36:110:36:15

Yes, makes access just that little bit awkward.

0:36:150:36:19

Well, of course,

0:36:200:36:22

whatever you do with this old pub will depend entirely

0:36:220:36:24

on what kind of planning permission

0:36:240:36:26

you're able to get from your local council.

0:36:260:36:28

They may have restrictions on what they will allow you to do

0:36:280:36:31

with certain types of properties in certain areas,

0:36:310:36:34

especially in these difficult economic times.

0:36:340:36:37

Is there a lack of affordable housing in the area?

0:36:370:36:40

Or is there a pressing need to develop businesses and create jobs?

0:36:400:36:45

Different local councils will have their own priorities

0:36:450:36:48

when regenerating an area, so you've got to do your research

0:36:480:36:52

and speak to the local authority to find out what they want

0:36:520:36:56

and what they are likely to grant planning permission for

0:36:560:36:59

and then you can start using your imagination.

0:36:590:37:03

So a spot of creative negotiations will be required

0:37:080:37:12

to find a planning solution that pleases everybody.

0:37:120:37:15

Assuming the council are on board,

0:37:150:37:17

my preferred option would be to create flats.

0:37:170:37:21

Now I've had the chance to look around,

0:37:210:37:23

I think you could easily divide this ground floor space

0:37:230:37:25

with the kitchen out the back

0:37:250:37:27

into two separate flats worth around £80,000 each,

0:37:270:37:31

and I would probably leave the upstairs accommodation now

0:37:310:37:34

as one rather large, luxurious dwelling worth around £100,000.

0:37:340:37:40

You would need to apply for planning permission from the local council,

0:37:400:37:43

but it would certainly be a lucrative option.

0:37:430:37:46

But do my numbers add up?

0:37:490:37:51

Let's see what potential a local property expert

0:37:510:37:54

saw in this former pub.

0:37:540:37:55

Sittingbourne, like many towns, the high streets are struggling.

0:37:570:38:02

This particular property is what you would call

0:38:020:38:05

an extension of the high street,

0:38:050:38:07

so it's probably in an even worse position.

0:38:070:38:09

If this place was mine, what I would do downstairs

0:38:090:38:12

is I'd have an access door to the front

0:38:120:38:14

and an access door to the side or the rear,

0:38:140:38:16

allowing you to put two one-bedroom flats down here.

0:38:160:38:21

Upstairs currently you have a three-bedroom apartment.

0:38:210:38:24

What I would do is I would convert it into a two-bedroom apartment

0:38:240:38:28

by making one of the bedrooms into... Taking it into another room

0:38:280:38:33

so therefore you'd have a much larger master bedroom,

0:38:330:38:36

smaller second bedroom, you'd have your bathroom next door,

0:38:360:38:38

possibly an en-suite. And a lounge/kitchenette

0:38:380:38:41

at the top of the stairs as you go in.

0:38:410:38:43

And how will that translate in terms of return?

0:38:450:38:48

Starting with the two-bedroom apartment upstairs,

0:38:480:38:51

being realistic, you're probably going to get a rental return

0:38:510:38:54

of around £600 per calendar month.

0:38:540:38:57

The two apartments on the ground floor...

0:38:570:39:01

One-bedroom apartments around here at the moment,

0:39:010:39:03

probably £500 per calendar month.

0:39:030:39:05

If the two new flats rented for £1,000 per calendar month,

0:39:060:39:10

that would certainly beat the commercial valuation

0:39:100:39:13

of the ground floor as a whole,

0:39:130:39:15

which the agent put at £500 per calendar month.

0:39:150:39:19

But would it make more sense to convert these for resale?

0:39:190:39:23

Looking at the selling of the apartments

0:39:230:39:25

and starting with the two-bedroom apartment upstairs,

0:39:250:39:29

you would be looking at a realistic sale price of around £105,000.

0:39:290:39:34

Looking at the two one-bedroom apartments downstairs,

0:39:340:39:37

probably around £85,000 would be around the right figures.

0:39:370:39:42

Well, this really is an interesting old property.

0:39:420:39:46

It's in a good location within Sittingbourne,

0:39:460:39:48

and it throws up all sorts

0:39:480:39:50

of different possibilities and opportunities.

0:39:500:39:53

But whoever takes this on has got a huge job on their hands

0:39:530:39:56

to turn this into something that's really going to work

0:39:560:39:59

for the local area.

0:39:590:40:00

Let's find out who was prepared for the challenge

0:40:000:40:03

when this old pub went under the hammer.

0:40:030:40:05

Freehold premises. As we've said, obviously it was a former pub.

0:40:070:40:11

Guide 125-135. Start me at 125?

0:40:110:40:14

£125,000?

0:40:140:40:16

125?

0:40:160:40:18

Where do you want to start me, then? Start at 100?

0:40:180:40:20

£100,000, let's see where we get to.

0:40:200:40:22

£100,000 at the back.

0:40:220:40:23

£100,000. 100. And five?

0:40:230:40:26

105? 105. And ten?

0:40:260:40:28

110?

0:40:280:40:30

110, and 15?

0:40:300:40:32

115? At £110,000, I've got. 115, I'm looking for.

0:40:320:40:36

Are we all done at £110,000?

0:40:360:40:38

Can't tempt you any further?

0:40:380:40:40

Nope? OK. Well, come and talk to us.

0:40:400:40:42

Well, the hammer didn't fall on this occasion

0:40:440:40:46

because the reserve price for the property wasn't reached.

0:40:460:40:49

However, an offer of 113,000 was made and accepted afterwards.

0:40:490:40:55

The new owners of this former public house are local property developers

0:40:570:41:01

and husband and wife, Sunil and Gita.

0:41:010:41:04

Yes, if they seem a bit familiar to you,

0:41:040:41:07

well, it's because they've been on Homes Under The Hammer before.

0:41:070:41:10

# Mr and Mrs

0:41:100:41:12

# Oh, how I love that phrase... #

0:41:120:41:16

Sunil and Gita, congratulations. Now, we've met before on the show.

0:41:160:41:20

-You know Sittingbourne really well, don't you, guys?

-Yes.

0:41:200:41:23

We run a lettings,

0:41:230:41:25

sales and lettings agency in Sittingbourne high street.

0:41:250:41:28

And you're also developers,

0:41:280:41:29

because I know you've got lots of other properties.

0:41:290:41:31

Yeah, our main business is we're landlords first,

0:41:310:41:34

so that helps us to help other landlords in our agency business.

0:41:340:41:37

-So you've bought a pub?

-Yes.

-What happened there, then?

0:41:370:41:41

Erm, well, when Sunil came home, I thought

0:41:410:41:43

it was quite ironic that he came home and told me

0:41:430:41:46

that we'd bought a pub and he doesn't even drink.

0:41:460:41:49

So why did you buy the pub?

0:41:490:41:50

Obviously not to turn into another pub, I take it.

0:41:500:41:53

-It's a good investment for us.

-Yes.

-If it's a pub today,

0:41:530:41:56

it could be a school tomorrow or something else, so...

0:41:560:41:58

What do you know about this building?

0:41:580:42:00

Is there any restriction on this property?

0:42:000:42:02

The history of this is it's always been a pub,

0:42:020:42:04

but it's not been a successful pub.

0:42:040:42:05

It's changed hands six or seven times in the last ten years.

0:42:050:42:09

Which is, in a way, good for us,

0:42:090:42:10

because when we're making a planning application,

0:42:100:42:13

we can show that it hasn't been viable

0:42:130:42:14

and it's not just the business owner, it's a number of business owners.

0:42:140:42:17

-So that's all about going for change of use, obviously.

-Absolutely, yes.

0:42:170:42:21

-Yeah.

-So what sort of ideas have you got for this place now?

0:42:210:42:24

Well, initially, the idea was to turn it into three flats.

0:42:240:42:28

One upstairs and then two downstairs.

0:42:280:42:31

Erm, but we've also been investigating

0:42:310:42:33

the possibility of turning it into a special needs school.

0:42:330:42:35

OK, really interesting. Now why have you gone down that avenue,

0:42:350:42:39

and why a school in particular?

0:42:390:42:42

It's just that the opportunity arose.

0:42:420:42:43

We were talking to one of our current landlords

0:42:430:42:46

and he said he'd been approached by the council

0:42:460:42:48

and they were looking for a school,

0:42:480:42:50

a special needs school with four classrooms in the area.

0:42:500:42:52

So he came down and measured up and said,

0:42:520:42:54

"Yes, we should look at this possibility."

0:42:540:42:57

So what would you need to do to set the ball rolling?

0:42:570:42:59

It's mainly planning and getting approval.

0:42:590:43:02

And then applying for grants if we need to.

0:43:020:43:05

-If not, we could fund some of the project ourselves.

-That's our ideal.

0:43:050:43:08

That's what we would like.

0:43:080:43:10

If that's not possible, then Plan B is to look at the possibility

0:43:100:43:14

of turning it into flats and having three separate flats.

0:43:140:43:17

So what sort of budget have you two got in mind?

0:43:170:43:20

On the school project, it's going to be about 70,000.

0:43:200:43:23

But if it's flats, we're going to spend about 30, £10,000 on each flat.

0:43:230:43:28

Guys, good luck with this project,

0:43:280:43:30

and I can't wait to find out how it goes.

0:43:300:43:32

-Really lovely to see you both again.

-Thank you very much.

0:43:320:43:34

-Congratulations.

-Thank you.

0:43:340:43:36

Well, Sunil and Gita are highly experienced

0:43:370:43:40

and successful property developers.

0:43:400:43:42

They could easily just build three flats out of this old pub,

0:43:420:43:46

but I love the fact that they have chosen to make it a priority to try

0:43:460:43:50

and give something back to the community here.

0:43:500:43:53

I am hoping this will be a wonderful school for children when we return.

0:43:530:43:58

You'll have to stay tuned to find out what happens.

0:43:580:44:00

-Well, we've seen one project. Two more to go, Martin.

-Yep.

0:44:050:44:09

Did those plans come to fruition?

0:44:090:44:12

And will those estate agents' valuations

0:44:120:44:14

make our buyers very happy or not?

0:44:140:44:17

Let's go back and find out.

0:44:170:44:18

We're back in Devon at the six-bedroom end terrace

0:44:220:44:25

in Okehampton.

0:44:250:44:26

This beautiful old building had a lot going for it.

0:44:260:44:30

Lovely big rooms

0:44:300:44:31

and a massive plot of land with outbuildings at the back.

0:44:310:44:36

It showed signs of damp and only had one bathroom with separate WC.

0:44:360:44:42

But with a guide price of just £150,000 plus, I thought

0:44:420:44:46

this looked like a bit of a bargain.

0:44:460:44:49

"That's all very well, Martin," I hear you cry.

0:44:490:44:51

"But houses rarely go for the guide price."

0:44:510:44:54

Well, normally...

0:44:540:44:56

At £150,000. It's sold, at 150.

0:44:560:44:59

It was a dream come true for buyer Beverley,

0:45:060:45:09

who just wanted to shower this house with affection.

0:45:090:45:12

I have this thing about sad old houses.

0:45:120:45:15

I like to made them lovely and lived in again and loved.

0:45:150:45:19

So you're a house cuddler, basically.

0:45:190:45:20

SHE LAUGHS

0:45:200:45:23

-You cuddle them back into being loved places.

-Yeah. Yeah.

0:45:230:45:26

# How sweet it is to be loved by you... #

0:45:280:45:32

Beverley planned an en-suite and shower room,

0:45:340:45:36

and was desperately keen to decorate the house herself.

0:45:360:45:40

She was also determined to get her gardening gloves on

0:45:400:45:43

and sort out the vast outside space.

0:45:430:45:46

We came back four months on to find out if Beverley had turned

0:45:490:45:52

what she thought was a sad house into a happy one.

0:45:520:45:56

On the ground floor, a brand-new kitchen has been fitted.

0:46:010:46:05

A hatch has been created into the wall,

0:46:050:46:07

allowing the kitchen to be connected to the living area,

0:46:070:46:10

which has been completely replastered.

0:46:100:46:12

She still might need carpets, but by the looks of things,

0:46:130:46:16

some of Beverley's floorboards have been replaced.

0:46:160:46:19

Up on the first floor,

0:46:220:46:24

and the bathroom has been refitted to include a WC.

0:46:240:46:28

And what was the separate toilet

0:46:280:46:30

has been incorporated into one of the bedrooms to create an en-suite.

0:46:300:46:34

The second floor is still to be finished,

0:46:340:46:36

but two of the bedrooms are ready for decoration.

0:46:360:46:40

And the third has been plumbed,

0:46:400:46:41

ready to become a bathroom as planned.

0:46:410:46:45

There's obviously still work to do,

0:46:450:46:47

and there's a clue as to why if you look outside.

0:46:470:46:50

The whole house has been re-rendered.

0:46:500:46:52

It's had its roof fixed and even the granite has been cleaned.

0:46:520:46:55

So was there more to this renovation than first met the eye?

0:46:550:46:58

When I bought the property, it looked OK

0:46:590:47:02

in most places on the outside and the inside, if you know what I mean.

0:47:020:47:06

It just looked a bit tired.

0:47:060:47:08

But when it actually came to it,

0:47:080:47:10

every job we did was bigger than we thought it was going to be.

0:47:100:47:14

And it turned out that there was a lot more needed doing

0:47:140:47:18

behind the scenes than we ever dreamt.

0:47:180:47:21

It was an old house, but you'd think not everything would cause problems.

0:47:210:47:25

Well, listen to this.

0:47:250:47:27

We put the windows in. Every single one is a slightly different size.

0:47:270:47:32

The shower cubicle had leaked,

0:47:320:47:33

so the joists underneath had got quite a bit of rot in some of them.

0:47:330:47:38

And so when they started to do the plumbing for the bathroom,

0:47:380:47:42

the whole kitchen ceiling fell down!

0:47:420:47:45

That was a bit of an "oh, bother" moment.

0:47:450:47:48

So, given the long list of problems,

0:47:510:47:53

did Beverley ever regret taking it on?

0:47:530:47:56

I don't think I've ever really thought,

0:47:580:48:00

"I wish I'd bought something else." Because every time it got that bad,

0:48:000:48:04

one of the guys would come up and say, "No, no, no, it's all right.

0:48:040:48:07

"I can fix it, I can sort it. We can do it. It's worth it. It's good."

0:48:070:48:11

And then, similarly, on a day when they'd go,

0:48:110:48:14

"Oh, it's going to cost more money, it's going to be more effort."

0:48:140:48:17

And I'd go, "No, no, it's worth it. It's worth it. It's really great."

0:48:170:48:21

So I think we encouraged each other really well.

0:48:210:48:24

Happily, Beverley seems undaunted by all the trials and tribulations.

0:48:240:48:29

She's within her four to five month timescale,

0:48:290:48:31

but given all the unforeseen issues,

0:48:310:48:33

has she managed to stay within that budget of 25-30,000?

0:48:330:48:38

I think I've probably spent about 66,000.

0:48:400:48:45

Because I'm going to live here, there are no cover-ups.

0:48:450:48:49

You know, if it needed something doing, then it got done.

0:48:490:48:52

If I don't have a carpet and move in, I don't have a carpet. You know.

0:48:520:48:56

But it was important

0:48:560:48:58

that the floorboards underneath the carpet are good.

0:48:580:49:01

And that they're not... I'm not going to fall through them

0:49:010:49:04

when I do my dancing. SHE LAUGHS

0:49:040:49:08

£66,000 is a hefty overspend,

0:49:100:49:13

and brings Beverley's total investment to £216,000.

0:49:130:49:18

And that's before she tackles the garden.

0:49:180:49:21

But come on, do you think it's value for money?

0:49:220:49:25

Let's see if two local property agents agree with me

0:49:250:49:29

that this is a cracker.

0:49:290:49:32

The standard of the work seems to be very good.

0:49:320:49:34

The finishes are lovely

0:49:340:49:36

and the appliances that have gone in do appear to be of a good quality.

0:49:360:49:40

Once the property is finished, it will be a lovely family home.

0:49:400:49:44

I think with the work that's been done to the property...

0:49:440:49:46

Erm, the windows look nice and sympathetically updated.

0:49:460:49:51

The rendering looks good.

0:49:510:49:52

It looks clean and it looks fresh.

0:49:520:49:54

Beverley spent a total of £216,000,

0:49:540:49:57

so let's get those all-important valuations.

0:49:570:50:01

For resale, I believe this property could achieve between £230-240,000.

0:50:020:50:08

I'd be looking to put it on at between £230-250,000.

0:50:080:50:14

Of course, this labour of love is to be Beverley's home.

0:50:150:50:19

But it's good to know that were she to sell, that top value

0:50:190:50:22

would give her a profit of £34,000, minus the usual taxes and expenses.

0:50:220:50:28

So what now for Beverley?

0:50:280:50:30

The plan is to decorate a bit more colour somewhere.

0:50:310:50:35

But I think probably the first thing I'm going to do

0:50:350:50:38

when I get in here is to actually have a party.

0:50:380:50:41

It's time to head back to Sittingbourne in Kent,

0:50:460:50:49

where earlier, as I explored this former pub,

0:50:490:50:52

I mulled over the possibilities.

0:50:520:50:54

Now I've had to chance to look around,

0:50:550:50:57

I think you could easily divide this ground floor space

0:50:570:51:00

with the kitchen out the back into two separate flats,

0:51:000:51:03

and I would probably leave the upstairs accommodation now

0:51:030:51:06

as one rather large, luxurious dwelling.

0:51:060:51:10

That thought had also occurred to Sunil and Gita,

0:51:120:51:15

who bought this place for 113,000.

0:51:150:51:18

But residential conversion was their Plan B,

0:51:180:51:21

because they had decided instead to try and turn

0:51:210:51:24

this into a school for children with special educational needs.

0:51:240:51:28

It's just that the opportunity arose.

0:51:300:51:32

We were talking to one of our current landlords,

0:51:320:51:34

and he said he'd been approached by the council and they were looking

0:51:340:51:37

for a school, a special needs school with four classrooms in the area.

0:51:370:51:41

So he came down and measured up and said,

0:51:410:51:43

"Yes, we should look at this possibility."

0:51:430:51:45

Well, I think that's a super idea,

0:51:480:51:49

but a good deal trickier than simply just converting this pub into flats.

0:51:490:51:54

13 months later, on a crisp and cold winter's day, we're back.

0:51:540:51:59

Unfortunately, it doesn't look as if the school plan has been successful.

0:52:050:52:10

We would have loved to have had it turned into a school.

0:52:100:52:13

That would have been our first choice.

0:52:130:52:15

But timeframes by which we would get an answer

0:52:150:52:18

and some kind of an agreement was just too long.

0:52:180:52:21

So we couldn't really wait around

0:52:210:52:23

because we needed to get the project underway.

0:52:230:52:25

With the school project falling through,

0:52:300:52:33

Sunil and Gita reverted to Plan B -

0:52:330:52:35

converting this old pub into three separate residences.

0:52:350:52:39

On the first floor, the existing three-bed flat has been modernised.

0:52:440:52:48

A new open-plan kitchen and dining room is the centrepiece.

0:52:480:52:53

But there are still traces from the past.

0:52:530:52:55

The bedrooms have been decorated and new windows have been installed.

0:52:590:53:03

On the ground floor, the space has been cleverly divided

0:53:030:53:06

to accommodate two two-bedroom flats.

0:53:060:53:09

And although the imprint of the old building

0:53:110:53:13

is still in evidence here and there,

0:53:130:53:15

it's easy to forget that this was once a public house.

0:53:150:53:18

Each flat is comfortable and spacious rather than luxurious,

0:53:200:53:24

but the most important thing here is they are all occupied,

0:53:240:53:28

and it would appear that even a former pub still draws in customers.

0:53:280:53:32

Because of the pub, because it's been here for about 100 years,

0:53:330:53:37

people were interested as soon as we started doing the works.

0:53:370:53:40

They were really interested in "Oh, what's going on in the old pub?"

0:53:400:53:44

Even before all three flats were ready,

0:53:440:53:46

we had tenants who were ready to move in,

0:53:460:53:48

so that was really, really great

0:53:480:53:50

because we didn't have even one day where they were sitting empty.

0:53:500:53:53

To get full occupancy from the off is a tremendous outcome,

0:54:030:54:06

but Sunil and Gita are drawing from a very deep well of experience.

0:54:060:54:11

And that's not the only well they've encountered during this project.

0:54:110:54:14

We had a few guys who work for us who basically helped us out.

0:54:170:54:21

They actually had to lift the floorboards

0:54:210:54:23

and basically gut the whole place out.

0:54:230:54:25

They discovered that there was a water well.

0:54:250:54:28

In order to make sure that it passed all the building regulations,

0:54:280:54:32

we got a metal mesh over it and then we got it cemented again,

0:54:320:54:35

and then another metal mesh and then we had the whole floor cemented.

0:54:350:54:39

So that was quite an interesting find.

0:54:390:54:41

No matter how interesting,

0:54:440:54:45

unexpected discoveries are usually expensive,

0:54:450:54:48

so how did they get on with their original budget of £30,000?

0:54:480:54:52

It cost 80,000

0:54:540:54:56

to do all three.

0:54:560:54:58

But the upstairs didn't really cost that much

0:54:590:55:02

because it was already a flat.

0:55:020:55:03

Most of the cost was really doing the two flats down here.

0:55:030:55:07

We did have some problems with structural stuff, with the floors,

0:55:070:55:10

the insulation, that we hadn't necessarily budgeted for.

0:55:100:55:14

Yeah, we spent a little bit more -

0:55:140:55:16

twice as much - but... HE LAUGHS

0:55:160:55:18

But it's still good because I think we've got a longer term...

0:55:180:55:22

We've got more for the money.

0:55:220:55:24

Including the purchase price of 113,000,

0:55:270:55:31

Sunil and Gita have spent a total of £193,000 on this project.

0:55:310:55:36

We invited two local estate agents to take a look around

0:55:400:55:43

and tell us what they think of the work that's been done.

0:55:430:55:46

It's amazing.

0:55:480:55:49

The change has been... It's huge.

0:55:490:55:52

When I came in here last time, it was open-plan, mess everywhere.

0:55:520:55:55

Couldn't really see the potential of what it could become,

0:55:550:55:58

and they've done a fantastic job.

0:55:580:56:00

A friend of mine used to own this when it was a pub.

0:56:000:56:03

And since the conversion, it's just tremendous, the change.

0:56:030:56:06

The current owners have used every single bit of space

0:56:060:56:09

and they've planned it perfectly.

0:56:090:56:11

I think it was a brave move going for the conversion,

0:56:110:56:13

but it has worked extremely well.

0:56:130:56:15

With full occupancy,

0:56:160:56:17

it's obvious that Sunil and Gita are not going to sell,

0:56:170:56:21

but will the estate agents' valuations

0:56:210:56:24

justify that £193,000 investment?

0:56:240:56:27

The top floor flat, it's a huge space up there.

0:56:290:56:32

I would have thought, realistic value-wise,

0:56:320:56:34

for selling probably about £135,000.

0:56:340:56:38

From a sales point of view,

0:56:380:56:39

you're looking at probably £125,000 to £135,000.

0:56:390:56:45

For the two two-bedroom flats on the ground floor,

0:56:470:56:50

the agents put a top sales valuation of £125,000 per flat.

0:56:500:56:54

If they were to sell these flats for the highest valuations,

0:56:560:56:59

Sunil and Gita would expect to receive a total of £385,000,

0:56:590:57:05

which would net them a pre-tax profit of 192,000.

0:57:050:57:10

Not bad for a year's work!

0:57:100:57:12

-It's good news, isn't it?

-Are you pleased?

-Yeah, absolutely. Yeah.

0:57:120:57:15

But selling this building is not part of the plan.

0:57:170:57:20

The agents agreed that rental income for the three flats

0:57:200:57:23

could total around £2,000 per calendar month.

0:57:230:57:26

Is this close to what Sunil and Gita are already achieving?

0:57:280:57:31

We're very pleased with the rental that was achieved,

0:57:330:57:35

giving us £2,000 a month on the three units.

0:57:350:57:38

So that's good.

0:57:380:57:39

You know, it returns 6 or 7%, which we're really happy with.

0:57:390:57:43

We've decided that the best thing to do is to buy

0:57:430:57:46

and hold it for a long time.

0:57:460:57:48

-Yeah.

-So that's the key to have an income coming through.

0:57:480:57:52

Well, that's it for now, but join us

0:57:560:57:58

next time for more property auction stories from around the country.

0:57:580:58:02

-We look forward to seeing you, then.

-Goodbye.

-Goodbye.

0:58:020:58:05

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