Episode 11 Homes Under the Hammer


Episode 11

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Transcript


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Welcome to the show!

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Whether you're buying property as a place to live in

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or as an investment, you still need to know what you're doing.

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And with a fluctuating property market,

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it's quite difficult to spot those bargains.

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But a good place to start is an auction.

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Well, literally thousands of properties are sold at auction

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but the good news is it's not a long drawn-out process.

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The hammer goes down and a few weeks later, you've got the keys

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-to your property.

-But, of course, it's not as easy as that.

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It is hard work.

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Let's see what the bidders on today's show decided

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to spend their hard-earned cash on.

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First up, in Plumstead, London, right property, wrong time?

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I'm not sure you'll leave this property.

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We're going to buy exactly the same house in 20 years.

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LAUGHTER

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Whilst in Mickleover, Derby, there'll be no risk of broken nails.

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-So, you don't want to have any involvement?

-No.

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No, look at them nails, they're not geared for that.

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And in Chatham, Kent, best-laid plans hit a snag.

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This was our problem.

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Flint. And there was loads of it, as you can see behind me.

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All 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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Sold, 295.

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This is Plumstead,

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an area of south-east London in the Borough of Greenwich.

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Plumstead originally expanded rapidly in the 1880s

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with houses developed for those working at the Royal Arsenal.

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But does the capital's continuing housing boom

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resonate in these parts?

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I think I'd better go and check out what's on offer here.

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# And I'm on my way... #

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On this lovely kept street, I'm here to see a four-bed mid-terrace

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property with three reception rooms

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and a guide price of £250,000.

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Now, it's got a small front garden but I do like that brickwork

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up there, incredibly pretty brickwork, there.

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Bit of TLC on the front of this house

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and it could be a very pretty property.

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I'm just hoping there are more glimpses

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of these Victorian features inside.

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Right. Lovely hall space in here.

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And that ceiling has hit me straight away.

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Lovely detail on the top, there.

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Even longer hallway down to the kitchen in here.

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Look at the space in here!

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Look at this incredible room that would have been two rooms,

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there would have been a wall here at some stage.

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But what has caught my eye is this damage over here.

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Extensive wall damage here, brickwork,

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it's gone straight through to the brickwork. Plaster's away.

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I don't think it would have been the weight of the television,

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judging by the size of this stand.

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Get that sorted, get it checked out, as soon as possible.

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So, there's clearly an issue with damp here.

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But all around, there are some fantastic original features.

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Beautiful coving,

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ceiling roses

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and that bay window. I love it.

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What I'm not loving so much are the fireplaces which,

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though more modern than the other features,

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haven't aged nearly as well.

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They're definitely not keepers!

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This'll be the third reception room, dining room,

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next-door to the kitchen.

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Nice big space again. Nice high ceiling.

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Kitchen could do with a bit of an overhaul.

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Take the whole kitchen out, start again.

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Something nice and bright there

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cos there's only a small window going out to the garden.

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I'd be very inclined to take this wall out,

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have a nice dining room/kitchen as one.

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And there is a false ceiling here, a panelled ceiling.

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If you were to take that out, go back to the original height

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of the ceiling, the ceilings would match up, both sides,

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and you'd have a really, really nice dining room/kitchen area.

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It's the real lack of light that's the problem here.

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The old, dark, wooden kitchen cabinets

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aren't doing the space any favours, either.

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So, strip it all out, open up the kitchen, lift that ceiling,

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get some nice lighting in here and the whole area would be transformed.

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# Come on and make it

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# Come on and make it

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# Just better. #

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And there's a similar story upstairs,

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with a toilet and separate bathroom which would also benefit

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from removing that wall between them.

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Bigger is better, in my opinion.

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And then there's the bedrooms.

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This is one of the four bedrooms,

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the bedroom at the front of the house.

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It's a nice size and next-door to this bedroom,

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you've got a little boxroom here, as well. But having...

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-KNOCKING

-..listened to that wall,

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which is completely false, and there's another false wall

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just here, again, it's false.

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So, I'd be inclined, if you want to make this into a family home,

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to knock that through, have a nice bedroom here

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with an en-suite bathroom there.

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I think in a big family home one toilet, one bathroom,

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just isn't big enough. Make this one into a nice big master bedroom.

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But you've got to remember,

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if you want it for rent or you want it for resale,

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you're going to lose a bedroom, so it might affect your income

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when it comes to monthly payments or a sale at the end of the day.

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So, think first before you do any work.

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Generally, the more bedrooms you have,

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the better the rental or resale return.

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But in terms of making this a more balanced house to live in,

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I think this property would definitely benefit from making

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the master bedroom an en-suite.

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# Come on and make it Just better... #

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Another area which could certainly be better is outside.

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# So much better. #

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This could be a lovely family back garden.

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You can't see it at the moment cos it's full of greenery

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but it's on two or three levels.

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If you could get the levels as one, get rid of all this mess,

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put some grass down,

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it could be a lovely family back garden for kids to play out.

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Even trim back some of the trees, if there's no orders on the trees,

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trim them back, bring a bit more light in.

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I've got to show you one thing as we go in, I did notice this just on

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the way out through the back garden. There seems to be a significant

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crack that's going from the window all the way to the guttering.

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Now, it can lead to subsidence or, already has subsidence,

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but, in this situation, get it checked out as soon as possible.

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It's the best way to look after things like that.

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These types of cracks really need expert appraisal.

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It could be something simple like a collapsed drain

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or it could be something more sinister.

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Either way, better get it checked out.

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And while you're at it,

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there are those signs of damp to be assessed, too.

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But I can't help thinking that lurking beneath that shabby,

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dated decor there's a house that has a lot offer.

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But what does a local estate agent make of the property?

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My first impressions of the property

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is it's got so much potential.

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It's nice that it's still got some original features, as well,

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with the coving in the lounge

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and that is quite unusual cos a lot of people do get rid of them.

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The main areas of concern is there's a crack to the rear of the property

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and also the roof does look like it needs repairing.

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And the general, sort of, the kitchen, the bathroom,

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looks like it could do with some updating, as well.

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Yep, there's no doubting this needs a full-scale refurbishment.

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But what about the numbers on a house that has been

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guided at auction for £250,000?

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Once the property's fully refurbished, I would expect the price

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to achieve £420,000

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and the rental value to be £1,400 per calendar month.

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Well, there may be a fair amount to do here but there's a fair amount

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of reward to be had, both on the resale and the rental market.

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Let's see who wanted to take it on when it went under the hammer.

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So, move on to Lot 44.

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Four-bed mid-terrace house.

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I don't know, 250?

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250 with you.

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255 anywhere?

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251?

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251, 252, 253,

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254, 255...

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..256, 257...

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..258...

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So, there was a lot of interest in the Victorian four-bed house

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and we rejoin the bidding at £300,000.

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300.

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301, 302, 303?

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303, 304, 305?

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305, 306, 307?

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306, first time,

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second time,

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

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Sold, 306. Well done.

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And so, hidden from our camera's view,

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the four-bed mid-terrace house in Plumstead was sold for £306,000.

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And those mystery bidders were Guillaume, on the left, and Gabriel.

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Guillaume is an optician while his partner, Gabriel,

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works in logistics.

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And this is the first property they've bought together.

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-Gabriel, Guillaume, nice to meet you.

-Nice to meet you.

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-Congratulations, first and foremost.

-Thank you.

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Tell me about the auction experience. Who went to the auction?

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We both went to the auction. I was the one bidding.

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-Were you not allowed to bid?

-I was too scared.

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LAUGHTER

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Because I didn't see the property.

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-Oh, OK. So, who actually...

-I saw the property.

-OK.

-Yeah.

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Just for five minutes.

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And what made you want it so much?

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Well, the area was nice, the house is big,

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there's a lot of work to do but it's fine.

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Guillaume, how about you now you're here and it's yours?

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What are your thoughts on this property? Anything frightening you?

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The crack on the back of the house.

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-Yep.

-That, the big damp, as well.

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But I think it will be fine.

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Are you buying it to rent it or to sell it, to live in it?

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-Initially, we wanted to live in it.

-OK.

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But I think it's a bit too big for us.

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-So, we're going to sell it, I think.

-OK.

-Yeah.

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We didn't even start yet and I really don't want to sell it.

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-Really?

-So, it's going to be hard to sell it.

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-It's exactly the house that we love.

-So, what's making you sell it?

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-Why don't you live here?

-Money.

-Money?

-Yeah.

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# I don't want to let you go

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# I never can say goodbye, boy. #

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Ah. If you want to be successful at property developing,

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keeping an eye on the money is definitely the key.

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Mind you, one of the things is not getting too attached

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to a property and making it like you want it.

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So, I hope these guys can be detached enough not to make

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it too personal.

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Who's going to take charge of this project?

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-Are you going to do it together?

-Yeah, we're going to do it together.

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I'm going to follow the building structure, he's going

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to follow all the design.

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OK, so, what's the first thing you're going to do?

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I'm going to do a beautiful kitchen

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-and a beautiful bathroom.

-OK.

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And I'm going to keep half very Victorian and half very modern.

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And the dining room separate or are you going to make it one?

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It's going to be a big room, kitchen and dining area.

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-Good, you're knocking the wall down.

-Yeah.

-What about the ceiling,

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you've got a ceiling in the kitchen, are you changing that?

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Yeah, we're going to remove the ceiling.

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So it's going to be higher and then we're going to put all spotlight.

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We're going to combine the toilet and the bathroom together upstairs.

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-OK, so you're knocking walls down again.

-Yes.

-OK.

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And we're going to create another toilet downstairs.

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Yeah, I think that's a sensible idea.

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And outside, structurally, you mentioned the crack.

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When we had our survey, he said it's not a big problem,

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it's just a drainage problem, so we need to sort out the drainage.

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-Fill the crack.

-That's good news.

-Yeah.

-Save on the money.

-Yeah.

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And, also, the damp, as well.

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There's a little bit of damp around the property.

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-There's a little bit a lot.

-A lot of damp around the property!

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Yeah, it's cos the roof is leaking a bit everywhere

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so we need to repair the roof and then sort it out inside.

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Do you have a budget?

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I can see your faces are changing now when it comes to money.

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-Yeah, budget is around 30.

-OK.

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-Hopefully less.

-Yes.

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Time, four months, maybe five.

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Although Gabriel will oversee the work and Guillaume will design

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the interiors, they will contract the work out to builders,

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leaving the bulk of it to the professionals.

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Always a good idea.

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And I think their £30,000 budget

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and four- to five-month timescale certainly isn't unrealistic.

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-Is this something that you want to continue to do?

-Yes.

-Yeah?

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And you want to have a portfolio of houses.

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This one, sell it, maybe buy another one then sell it or rent?

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Yeah, we can buy and sell it or buy and then rent it out. We'll see.

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I'm not sure you'll leave this property.

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-I think you'll find yourself...

-No, we will leave here.

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I think we will leave it,

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we're going to buy exactly the same house in 20 years.

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LAUGHTER

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-Maybe you can buy this one back.

-Oh, yeah.

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-It will cost you four times the money!

-So, no.

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Listen, Guillaume and Gabriel, I wish you luck. OK.

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-Very nice to have met you and good luck, hey?

-Thank you.

-Take care.

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Gabriel and Guillaume seem to have this project all in hand.

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But will it all go to plan? You can find out later on in the programme.

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Located just two miles east of Derby is the suburb of Mickleover.

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A highly popular residential area, it has a strong property market,

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growing population density, good schools, shops and parks.

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So, location wise, we're off to a good start.

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So, it's certainly a desirable area and that's reflected

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in the guide price of the property that was up for auction.

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A two/three-bedroom ground-floor flat.

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The guide price was £45,000 plus. Let's take a look.

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The flat itself is situated in what was an old Victorian house

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that has been converted into several flats.

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It's accessed via the back of the property

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with its own separate entrance.

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-HE BREATHES IN SHARPLY

-OK.

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So, through the entrance door - back, front, whatever it is,

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it's the only one - into this little sort of covered courtyard area.

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It's got this plastic sheeting roof.

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I imagine it's just been covered up at some point

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and this would have been open in earlier years.

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This is a useful little space, somewhere to store your bikes

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or dump your bags. But, then, you've got a choice.

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You've got, basically, three doors leading to the rest of the flat.

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Now, the moment you come in here, you do get a sense of it being

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a bit like a basement flat.

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It suffers from not having enough exterior walls with windows in them.

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So, we've got two rooms here separated by sort of a divider.

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It's almost been done as if it's some kind of an office.

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You've got this office style ceiling

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which obviously wants to come down.

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Again, makes it feel a little bit...

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..claustrophobic, for want of a better word.

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You've got the two little rooms there. A room on the front,

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then into this rear sort of living area.

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Again, though, look at the size of that window,

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I mean, tiny for the size of room.

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-HE EXHALES LOUDLY

-What do I want to do?

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I want to take out all these walls, every single wall out.

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I want to stick beams here, there, everything else.

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Create one huge open-plan space

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and then maybe stick one or two very carefully chosen walls back.

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That's the only way it's going to work.

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Hm-mm, at present, this is a number of odd-shaped rooms at varying size,

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strangely connected together.

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There's no flow to the place.

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And not only is the flat dark and gloomy,

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I'm in the dark as to what the rooms are.

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Is this a bedroom, a study, who knows?

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Hence the two- to three-bedroom description in the auction catalogue.

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Maybe the rest of the flat will shed some light on what layout

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would work best here.

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So, through into the kitchen area.

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Well, I mean, obviously, it doesn't have a kitchen in it,

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at the moment, which does throw up issues

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when it comes to mortgageability.

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And in here, some signs of some serious damp,

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I don't know what's going on with the ceiling there.

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And all around here, definitely, I'd want to probe about a bit more

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and find out exactly what's going on.

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But at least in this part of the flat,

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you do get some natural light, which is good. And, bizarrely,

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the bathroom is the one place where you've got loads of light.

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Great.

0:17:160:17:18

And the bathroom off the kitchen poses yet another layout issue.

0:17:180:17:21

I think, perhaps, it would be worth seeing

0:17:210:17:24

if it was more feasible to make this into a bedroom or study

0:17:240:17:27

and use one of the back rooms as a bathroom.

0:17:270:17:30

At least that way you'd have a bedroom with some natural light.

0:17:300:17:34

All in all, this isn't the most practical flat I've ever come across

0:17:340:17:38

but it is still a residential space in a sought-after area

0:17:380:17:42

and that alone will give it some appeal.

0:17:420:17:44

But what can the auctioneer who sold it tell us about the flat?

0:17:480:17:51

There aren't very many flats in Mickleover,

0:17:540:17:56

certainly not purpose-built ones,

0:17:560:17:58

not that I'm suggesting this is purpose-built.

0:17:580:18:00

But it's not the sort of development

0:18:000:18:03

that you see a lot of in Mickleover itself.

0:18:030:18:07

But because of the appeal of Mickleover as an address,

0:18:070:18:11

flats as investment properties are always very good material

0:18:110:18:16

because you're never going to have void periods,

0:18:160:18:18

they are very lettable.

0:18:180:18:20

Good news if you're looking for a buy-to-let.

0:18:200:18:22

But what sort of numbers are we talking about?

0:18:220:18:25

Once renovated, this would command a rent in the order

0:18:250:18:28

of £425 a calendar month.

0:18:280:18:30

And the flat was guided at £45,000

0:18:310:18:34

so rental returns in the region of £425 per calendar month

0:18:340:18:39

could see a rental yield of 10%.

0:18:390:18:42

That's before any renovation expenditure, of course.

0:18:420:18:45

What about the resale potential?

0:18:470:18:49

Its sale value is related to its earning capacity, really.

0:18:490:18:53

And I would say, even if this was in good order,

0:18:530:18:57

you would only sell as an investment property.

0:18:570:19:00

So, its top value is probably no more than £65,000-£70,000.

0:19:000:19:05

So, a bit of thought required, particularly on the internal layout

0:19:100:19:13

of this one. But not a huge project to take on and a nice area.

0:19:130:19:17

So, yes, I'm sure it was popular when it went under the hammer.

0:19:170:19:20

Lot number 11.

0:19:230:19:24

This is a two- or three-bedroomed,

0:19:240:19:27

vacant, ground-floor flat.

0:19:270:19:29

Good residential area. 45 for it?

0:19:290:19:32

42, start me where you like, it's where we finish that matters.

0:19:320:19:35

42,000 I've got in the centre, thank you.

0:19:350:19:37

At £42,000.

0:19:370:19:39

43 is bid at the back.

0:19:390:19:41

43, 44.

0:19:410:19:43

At 44,000... 45, 46 is bid.

0:19:430:19:46

46, 47?

0:19:460:19:48

47, 48?

0:19:480:19:49

48,000, 49?

0:19:490:19:51

£48,000 here, seated bid. 49?

0:19:520:19:55

At £48,000, then, going once,

0:19:570:20:01

going twice, third chance, any higher bid for it?

0:20:010:20:03

Sold at 48,000, thank you.

0:20:050:20:07

So, just slightly above the guide price and for £48,000,

0:20:080:20:12

the successful bid for the Mickleover flat was made by John.

0:20:120:20:16

John, who has previously worked as a publican

0:20:160:20:19

and is currently a catering steward at a golf club, bought the flat as

0:20:190:20:23

a joint venture with his daughter, Kelly, who works for a charity.

0:20:230:20:27

I met them both back at the flat to find out their plans.

0:20:280:20:31

-Kelly, John, great to meet you both.

-Hi.

-And you, hi.

-Congratulations.

0:20:330:20:37

-Thank you.

-Tell me why you wanted to buy this place.

0:20:370:20:39

Mainly an investment for myself and Kelly.

0:20:390:20:42

My first property, that I actually own, is just across the road.

0:20:420:20:45

Oh, really?

0:20:450:20:46

So I know the area well. Although I've had it for over 12 years,

0:20:460:20:49

-I've lived in it for about six months.

-Right.

0:20:490:20:51

Because various pubs and moving around the country...

0:20:510:20:54

-but I still own it and still rent it out.

-Right.

0:20:540:20:56

-So, it was this area of Derby specifically that you wanted.

-Um...

0:20:560:20:59

-Yeah.

-This isn't the one I came for originally. In the auction I...

0:20:590:21:03

-..went for another one but it went too expensive.

-Right.

0:21:050:21:08

And I thought this would be really, really expensive but it was well

0:21:080:21:11

within the budget I wanted

0:21:110:21:12

and I thought, "Well, I'll have a punt at that one."

0:21:120:21:14

So, we went to go for a house but instead Dad phoned us

0:21:140:21:18

and told us he'd just bought a flat.

0:21:180:21:19

LAUGHTER

0:21:190:21:20

-And that was the first you knew of it?

-Yeah.

0:21:200:21:22

-So, when was the first time you saw it?

-Today.

-Oh, wow!

0:21:220:21:25

Oh, gosh. Right. So, what do you think?

0:21:250:21:28

Yeah, I think it's quite nice, actually.

0:21:280:21:30

I think it needs a lot doing to it,

0:21:300:21:31

but I think the area is fantastic

0:21:310:21:34

so therefore I trust what he bought.

0:21:340:21:36

Well, it might have been not quite what Kelly was expecting to get

0:21:360:21:40

for her first investment property,

0:21:400:21:42

but dad John does know the area and having bought property here before,

0:21:420:21:46

hopefully knows a good investment when he sees one.

0:21:460:21:50

And Kelly is hoping that not only will it generate some income

0:21:500:21:53

but perhaps might be the start of a new career.

0:21:530:21:56

-In terms of a project, it's going to be your project?

-Yeah.

0:21:570:22:00

So, are you financially involved in it?

0:22:000:22:02

Sleeping partner.

0:22:030:22:04

-LAUGHTER

-What does that mean, Dad?

0:22:040:22:07

That means she isn't putting any more money into it, that's what she means.

0:22:070:22:10

-I'll be investing most of the money into it myself.

-OK.

0:22:100:22:13

And then if we ever sell it

0:22:130:22:15

and move it on, then Kenny will get a percentage of that.

0:22:150:22:18

What's the plans for it, then,

0:22:180:22:19

what are you going to do to it to sort it out?

0:22:190:22:21

-Well, I've got a budget of around £15,000.

-To do what?

0:22:210:22:26

Well, basically, knock the kitchen all through. Have one kitchen.

0:22:260:22:30

And move the bathroom into a separate room.

0:22:300:22:33

And two bedrooms on their own, keep the sitting room on its own.

0:22:330:22:36

-And redec it all the way through.

-But that's completely hands-off, is it?

0:22:360:22:39

-That completely hands-off, yeah.

-Right, listen,

0:22:390:22:41

this is your investment so get some hands-on,

0:22:410:22:43

-you can save your dad some money!

-Yeah.

0:22:430:22:46

I'll get my tools out right away!

0:22:460:22:48

-I'll crack on with it.

-Good.

0:22:490:22:50

Well, you can do things, though, can't you?

0:22:500:22:52

-Depends what the builders want us to do.

-What do you mean?

0:22:520:22:55

-You're not taking me seriously, are you?

-No.

0:22:550:22:57

-Do you want to be a property investor?

-Yeah.

0:22:570:22:59

-Do you want to be a property developer?

-Yeah.

-Right, then.

0:22:590:23:01

Full-time job doesn't allow me to do that, unfortunately.

0:23:010:23:04

-So, you don't want to have any involvement?

-No.

0:23:040:23:06

-Not even stripping wallpaper or doing a bit of painting?

-No.

0:23:060:23:09

-Oh, come on.

-No, no.

0:23:090:23:11

Look at them nails, they're not geared for that.

0:23:110:23:15

-I probably will, I'll probably come along when I get the chance.

-Right.

0:23:150:23:19

I'll ask the builder what they want me to do.

0:23:190:23:21

If he wants to strip out walls and knock walls down, I'll do all that.

0:23:210:23:24

-That's where you save your money, isn't it?

-Yeah.

0:23:240:23:26

-And then is the idea to rent it out?

-Yes.

-Yeah. What I said to Dad was,

0:23:260:23:30

if we're going to stick two bedrooms in that have both got en suites in,

0:23:300:23:34

then maybe it should be to two separate people.

0:23:340:23:37

I think we've got to think about who we want to let it out to.

0:23:370:23:39

Yeah, absolutely. Begin with the end in mind, and all that.

0:23:390:23:42

But, again, it's how much money you want to chuck at it, you know.

0:23:420:23:45

So, we've got to kind of keep our budget sensible.

0:23:450:23:48

So, the timescale, then, is what sort of length of time?

0:23:480:23:51

-I'd like it sorted out by...

-Six months, at least.

0:23:510:23:54

-Yeah, well, I want to before the end of summer.

-Yeah.

0:23:540:23:57

You know, while we still have the light and get it cleaned up.

0:23:570:24:00

-The heat.

-Yeah.

0:24:000:24:02

Um. And I think things look better in the summertime.

0:24:020:24:05

-Yeah, sure.

-Than when it's dark and damp and miserable outside.

0:24:050:24:09

Get somebody renting it at that point.

0:24:090:24:11

-Congratulations to you. Good luck with it.

-Thank you.

0:24:110:24:14

-Look forward to seeing how you get on.

-Thank you, Martin, cheers.

0:24:140:24:17

Well, a slight hint of not being quite sure what they're going to do

0:24:170:24:20

with this place from Kelly and John, there.

0:24:200:24:22

But one thing for certain,

0:24:220:24:23

I don't think Kelly will be getting her hands dirty.

0:24:230:24:27

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

0:24:270:24:30

Still to come, in Chatham, Kent, we find out if a plot of land

0:24:320:24:36

we first visited over five years ago was worth the long wait.

0:24:360:24:40

And in Mickleover, Derby,

0:24:430:24:45

we get to see the renovations that John seems very happy with.

0:24:450:24:48

Yeah, I'd live here.

0:24:490:24:51

Before that, we head back to Plumstead, south-east London,

0:24:560:24:59

a popular area, where I looked around this

0:24:590:25:02

four-bed mid-terrace property that boasted three reception rooms

0:25:020:25:06

and a guide price of £250,000.

0:25:060:25:09

It had some great original features but signs of damp were worrying

0:25:110:25:15

and a crack at the back of the house certainly needed attention.

0:25:150:25:18

And, for me, the layout just didn't work.

0:25:180:25:21

I'd be very inclined to take this wall out,

0:25:210:25:24

have a nice dining room/kitchen as one.

0:25:240:25:27

And there is a false ceiling here, a panelled ceiling.

0:25:270:25:31

If you were to take that out,

0:25:310:25:32

go back to the original height of the ceiling,

0:25:320:25:34

the ceilings would match up, both sides,

0:25:340:25:37

and you'd have a really, really nice dining room/kitchen area.

0:25:370:25:40

It proved very popular at auction,

0:25:400:25:43

selling for £56,000 over the guide price at £306,000.

0:25:430:25:48

Sold, 306. Well done.

0:25:480:25:50

The successful bidders were Guillaume, on the left here,

0:25:520:25:55

and his partner Gabriel who, together,

0:25:550:25:57

were venturing into property development for the very first time.

0:25:570:26:01

Who's going to take charge of this project?

0:26:020:26:04

-Are you going to do it together?

-Yeah, we're going to do it together.

0:26:040:26:07

And then I follow the building structure,

0:26:070:26:10

he's going to follow all the design.

0:26:100:26:12

OK, so, what's the first thing you're going to do?

0:26:130:26:15

-I'm going to do a beautiful kitchen and a beautiful bathroom.

-OK.

0:26:150:26:21

And I'm going to keep half very Victorian and half very modern.

0:26:210:26:26

And the dining room separate or are you going to make it one?

0:26:260:26:28

It's going to be a big room, kitchen and dining area.

0:26:280:26:31

So, big plans were afoot for these developer novices.

0:26:310:26:35

They had a budget of £30,000 and a timescale of four to five months.

0:26:350:26:39

And having originally considered living there themselves,

0:26:390:26:42

they were planning to sell it once the work was done.

0:26:420:26:45

It's just over three months later

0:26:480:26:49

and we've returned to south-east London to find out how they got on.

0:26:490:26:52

Removing the wall between the kitchen and third reception room

0:27:060:27:09

has created a beautiful kitchen-diner,

0:27:090:27:12

complete with French doors leading to the newly landscaped garden.

0:27:120:27:16

With a keen eye on design and character,

0:27:300:27:33

they've managed to marry together the modern and the traditional.

0:27:330:27:37

Plus, signs of damp in here are all gone.

0:27:370:27:39

In the transformed hallway,

0:27:430:27:45

they've done very well to introduce a downstairs loo.

0:27:450:27:48

Always appealing to buyers.

0:27:480:27:50

I can't wait to see what they've done upstairs.

0:27:530:27:55

Knocking the wall down between the bathroom and toilet

0:28:010:28:04

has created a far more desirable space.

0:28:040:28:06

This couple have done a fantastic job.

0:28:270:28:29

Don't forget, Guillaume and Gabriel are novices...

0:28:290:28:33

..making what they've each done here even more impressive.

0:28:350:28:38

So, all the changes we did was to put a more

0:28:440:28:47

sense of space in the kitchen, in the bathroom.

0:28:470:28:50

So, everything had to be redone in the house, plastering,

0:28:500:28:54

the flooring, ceiling.

0:28:540:28:56

I wanted something pure, very simple but with a little bit of character.

0:28:560:29:01

My taste.

0:29:010:29:02

So, to add character in the house I wanted to keep the Victorian style,

0:29:020:29:06

so we kept all the coving

0:29:060:29:08

and the ceiling rose.

0:29:080:29:11

And I removed the old fireplace and I look for two new fireplaces.

0:29:110:29:16

The most important thing for me was to have two identical ones.

0:29:160:29:20

And we changed the whole bathroom, obviously.

0:29:200:29:24

I wanted to go downstairs Victorian

0:29:240:29:27

and upstairs completely modern

0:29:270:29:29

with a modern kitchen, as well, and modern toilet.

0:29:290:29:33

So, whilst Guillaume was in charge of all things design,

0:29:330:29:36

it was down to Gabriel to oversee the day-to-day.

0:29:360:29:39

Well, I follow the builders,

0:29:410:29:44

I make sure everything was done properly.

0:29:440:29:46

I organise the delivery, rushing delivery.

0:29:460:29:49

And that's it.

0:29:510:29:52

The crack at the back of the house, thankfully,

0:29:530:29:55

turned out to be historical.

0:29:550:29:57

But the damp wasn't so easily dealt with.

0:29:570:30:00

Well, the damp was caused by the roof,

0:30:010:30:04

so we repaired the roof,

0:30:040:30:06

plus we... we need now all the plaster inside.

0:30:060:30:10

We need to redo all the ceiling, the kitchen, and the bedroom upstairs

0:30:100:30:14

was collapsing down, so we need to change both of them.

0:30:140:30:18

Well, with all those repairs, plus the high-end finish,

0:30:180:30:21

they did go over their £30,000 budget by £9,000, but they kept

0:30:210:30:26

within their timescale, completing the job in just over three months.

0:30:260:30:29

Not too shabby.

0:30:290:30:31

The total investment plus purchase price, here, has been £345,000.

0:30:320:30:38

So, with Guillaume and Gabriel eager to sell,

0:30:380:30:41

it'll be interesting to hear

0:30:410:30:43

the opinions of two local property experts.

0:30:430:30:46

I think the house is very, very nice.

0:30:470:30:49

It's been done to a nice, high standard.

0:30:490:30:51

Very neutral.

0:30:510:30:53

It's also got a contemporary feel to the property,

0:30:530:30:56

as well as having the original Victorian features,

0:30:560:30:59

like the original cornicing and nice cast-iron fireplaces.

0:30:590:31:02

So it's got a mix of both, which I think is extremely nice.

0:31:020:31:05

I think the layout works really well within the property,

0:31:050:31:09

especially on the ground floor, it flows really well.

0:31:090:31:11

Shows what a great job Guillaume did sourcing those fireplaces.

0:31:130:31:17

Even the experts thought they were original features.

0:31:170:31:20

So, time to find out what their valuations are.

0:31:200:31:23

The resale value of the property would be

0:31:230:31:25

between £480,000 and £500,000.

0:31:250:31:28

I think this property would resell in the region of £500,000.

0:31:280:31:32

Well, we are happy with that.

0:31:320:31:34

It is what we were expecting,

0:31:340:31:37

so we're definitely going to put it on the market as soon as possible.

0:31:370:31:41

I think it's a great investment. Amazing.

0:31:410:31:45

Amazing is right.

0:31:450:31:46

That top valuation would mean a huge pre-tax profit of £155,000,

0:31:460:31:54

making this a great success for Guillaume and Gabriel.

0:31:540:31:57

But after all the hard work

0:31:590:32:01

and initially thinking they'd live there themselves,

0:32:010:32:04

will they be sad to see it go?

0:32:040:32:06

Well, I think it's always sad to leave...

0:32:080:32:10

to leave one house, that you've been working at that long,

0:32:100:32:14

but it's...it's part of the job, so it's fine.

0:32:140:32:18

For myself, it's going to be very sad to sell this house, because I

0:32:180:32:21

put all my design, my heart into it, to give the property a personality.

0:32:210:32:27

So, I hope the new owner will enjoy it.

0:32:270:32:29

Time to turn back the clock and returned to Chatham in Kent.

0:32:360:32:39

It was here, way back in 2009,

0:32:400:32:44

that I originally looked around this plot of land.

0:32:440:32:46

It had planning permission for a two-bedroom chalet bungalow,

0:32:460:32:50

and a guide price of £65-£70,000.

0:32:500:32:53

Now, straight away, I can see that this was part of somebody's garden.

0:32:550:32:59

I think it used to belong to this house, here,

0:32:590:33:02

because you can see, there's a fairly new fence that's been put up.

0:33:020:33:05

What I do like is that there are lots of trees here,

0:33:050:33:07

so it's shielding you from the road, although you will have to

0:33:070:33:10

take some of those out to create that entrance.

0:33:100:33:13

And now I'm standing here,

0:33:130:33:14

I can see that this plot of land is on a slight gradient,

0:33:140:33:17

so that's something for the builders to think about, as well.

0:33:170:33:20

You've also got views over the Medway, which is really nice,

0:33:200:33:24

so, all in all,

0:33:240:33:25

I can imagine this would be quite a nice place to live, and surely,

0:33:250:33:28

that's all you're looking for, when you're looking for a plot of land.

0:33:280:33:33

Yes, good views and a nice neighbourhood certainly ticks

0:33:330:33:35

a few boxes, and the fact the planning permission was

0:33:350:33:38

already approved was also another bonus.

0:33:380:33:41

Now, these are quite basic, but it does demonstrate the floor space.

0:33:440:33:48

Now, I can see that the downstairs has got a kitchen/diner,

0:33:480:33:52

which runs into the lounge, two lovely big double doors which

0:33:520:33:55

lead out onto the garden, which make the most of the downstairs space.

0:33:550:33:59

You've also got a bedroom, here, which is bedroom two.

0:33:590:34:02

So, the main bedroom is on the top floor of the bungalow,

0:34:020:34:06

which is upstairs in the eaves.

0:34:060:34:08

Now, I can see that there is a huge storage space

0:34:080:34:12

running all the way around the outside.

0:34:120:34:15

Now, surely, that is a bit of a waste of space.

0:34:150:34:17

Do you think, possibly, we could squeeze another bedroom out of that?

0:34:170:34:21

I think, by doing that,

0:34:210:34:22

you would then really appeal to the family market.

0:34:220:34:26

I didn't think a two-bed chalet bungalow would represent

0:34:260:34:28

a big enough return in profit,

0:34:280:34:31

but creating a third bedroom would have increased the value

0:34:310:34:33

by more than the work would have cost,

0:34:330:34:36

so perhaps, whoever purchased this property

0:34:360:34:38

would have to think outside of the plans.

0:34:380:34:41

So, it's a climb to get to it,

0:34:430:34:45

but it's no stretch of the imagination to see that

0:34:450:34:47

this plot could be a good development,

0:34:470:34:50

but spend too much on the purchase or the build, well,

0:34:500:34:53

you're then leaving yourself with a tight profit.

0:34:530:34:56

Let's find out what it went for at the auction.

0:34:560:34:58

Lot 25. Start me where you will on that one.

0:35:010:35:04

Erm... £65,000 anywhere?

0:35:040:35:07

65,000 anywhere?

0:35:070:35:09

I'm looking for £50,000 opening bid. 50, I'm on the way.

0:35:090:35:13

And five now, do I see?

0:35:130:35:14

Five, I'm obliged. That's 60. At 60.

0:35:140:35:17

62? 62.

0:35:170:35:19

65? 65.

0:35:190:35:22

67? 67.

0:35:220:35:24

And 70, and two.

0:35:240:35:27

And two I'm looking for. 72.

0:35:270:35:30

And five? And seven. 77.

0:35:300:35:34

77. And 80, and two.

0:35:340:35:37

At 82. And five and seven.

0:35:370:35:40

At 85... 87.

0:35:400:35:42

90 to the original bidder.

0:35:420:35:44

At £87,000 bid on my right.

0:35:440:35:46

It's against you in the blue on my left.

0:35:460:35:49

First time then at £87,000.

0:35:490:35:51

Second time at £87,000.

0:35:510:35:53

Third and final time at £87,000.

0:35:530:35:56

You're all done. It's all yours. £87,000.

0:35:560:36:00

The successful bidder on the day with a bid of £87,000

0:36:020:36:05

was Frank from nearby Sittingbourne.

0:36:050:36:07

Frank was a self-employed builder

0:36:090:36:11

and developer who had already built around 35 homes.

0:36:110:36:14

I met him back at his newly-acquired plot of land to find out his plans.

0:36:150:36:19

-Frank, congratulations!

-Thanks very much.

0:36:210:36:23

How did you feel on auction day when the hammer went down

0:36:230:36:26

-and you'd won this plot?

-Fantastic. Really fantastic.

0:36:260:36:30

To be honest, it was only between me and the other man.

0:36:320:36:35

If he had gone over the top of my last bid,

0:36:350:36:38

I would have bowed out as well.

0:36:380:36:40

-Really?!

-Yes, so that was very good.

0:36:400:36:42

-So, were you happy with the price you paid, 87,000?

-Absolutely.

0:36:420:36:47

Yes, I didn't think I would get this at that price, to be honest.

0:36:470:36:50

-But, there you go.

-So, how much do you know about building plots

0:36:500:36:53

and what were you doing at the auction in the first place?

0:36:530:36:55

I'm a builder anyway.

0:36:550:36:57

I do loft conversions, extensions, that type of thing.

0:36:570:37:01

And I used to work for a developer and I was, if you like,

0:37:010:37:04

kept down there, but now,

0:37:040:37:06

managed to get a bit of money and bought the odd plot here and there.

0:37:060:37:11

That type of thing.

0:37:110:37:12

So, you used to work for a developer, but are you saying

0:37:120:37:15

-that you're doing it for yourself?

-Absolutely, yes.

0:37:150:37:17

# You can go your own way

0:37:170:37:20

# Go your own way... #

0:37:200:37:23

Frank was clearly delighted with his purchase

0:37:230:37:26

and I really could sense his passion

0:37:260:37:28

and enthusiasm for property development

0:37:280:37:30

and he'd need every bit of experience he had

0:37:300:37:32

to deal with this uneven plot of land.

0:37:320:37:35

If it had been a flat site, it would have been hunky-dory.

0:37:360:37:40

There's a bit of work to be done on it...

0:37:400:37:42

How are going to overcome this?

0:37:420:37:43

-Is there going to be an awful lot of excavation...

-No.

0:37:430:37:46

-..to get down onto the lower level?

-No, it will stay.

0:37:460:37:50

I will level it off slightly.

0:37:500:37:52

Obviously we've got to take the soil off the front

0:37:520:37:54

because the house to the right is at that level and I will keep to that.

0:37:540:37:59

Then we've just got to ramp from the pathway up to this level.

0:37:590:38:04

Frank certainly didn't seem fazed by the work ahead of him

0:38:040:38:07

and after studying the plans,

0:38:070:38:09

he'd seen the opportunity to add that extra bedroom.

0:38:090:38:12

If you look, that seems to me to be wasted space.

0:38:130:38:17

Look at the wasted space they've got there.

0:38:170:38:19

-That's just the loft storage space.

-Exactly.

0:38:190:38:22

The thing is, you're pitching the roof and that is quite a wide area.

0:38:220:38:25

You could get another bedroom in there,

0:38:250:38:27

but perhaps the planners don't want that particular situation.

0:38:270:38:30

But it does lend itself to another bedroom in that area there.

0:38:300:38:34

That will really affect the saleability.

0:38:340:38:36

-I really hope that does go your way.

-I would like that as well, yes.

0:38:360:38:40

It wouldn't have been a disaster if he didn't get planning permission

0:38:400:38:45

for a third bedroom, but it would certainly help his profit margins.

0:38:450:38:49

He estimated that the build would cost 80-90,000 and,

0:38:490:38:54

along with a two-month wait on planning permission,

0:38:540:38:56

he envisaged the work taking around six months.

0:38:560:38:59

It wasn't until two years later,

0:39:000:39:02

in 2011, that we returned to find

0:39:020:39:05

that Frank had put his plans on hold

0:39:050:39:07

due to the unstable property market.

0:39:070:39:11

The economic turmoil at that time meant that Frank

0:39:110:39:14

wasn't prepared to invest in new build.

0:39:140:39:17

But he had got himself ready for future work with new footings made.

0:39:170:39:22

Due to other business commitments, Frank waited a year-and-a-half

0:39:230:39:27

before starting work on the site.

0:39:270:39:29

But he needed to dig foundations and lay the footing

0:39:290:39:32

so that planning permission didn't expire.

0:39:320:39:34

What Frank had essentially created was the floor plan of his property

0:39:370:39:40

and he was able to talk us through what eventually he would build.

0:39:400:39:44

As we come in the front door,

0:39:480:39:50

we do a left into double doors into the lounge.

0:39:500:39:54

Within the lounge, we've got

0:39:540:39:56

a nice bay window with some patio doors out onto the patio there.

0:39:560:40:00

We then come out into the hallway,

0:40:000:40:03

come into the kitchen here, which is a nice kitchen in regard to

0:40:030:40:07

a window over the unit there, another patio door there.

0:40:070:40:11

Going back to the plans, the ground floor would have a downstairs loo,

0:40:140:40:18

utility room and an en-suite bedroom.

0:40:180:40:21

Upstairs, along with the second bedroom,

0:40:210:40:23

Frank still planned to create a third,

0:40:230:40:26

although he still needed to submit planning permission.

0:40:260:40:30

It may not look like Frank did much here, but he's actually removed

0:40:300:40:33

450 cubic yards of soil in order to level the plot.

0:40:330:40:39

It was no easy task!

0:40:390:40:40

# Can you dig it? Oh, yeah!

0:40:430:40:45

# Can you dig it? Oh, yeah!

0:40:450:40:49

# Can you dig it? Oh, yeah! #

0:40:490:40:53

Obviously not knowing what the ground conditions were like,

0:40:530:40:56

perhaps I should have had a soil sample, but I didn't.

0:40:560:41:00

I chose to go down the road of getting a five-tonne digger

0:41:000:41:03

which would normally have gone through anything.

0:41:030:41:07

This was our problem. Flint.

0:41:070:41:10

And then clay within that and there was loads of it,

0:41:100:41:13

as you can see behind me.

0:41:130:41:15

And we had to go through this

0:41:150:41:16

in order to get to a decent footing, being chalk.

0:41:160:41:20

Talk about being stuck between a rock and a hard place, literally!

0:41:240:41:27

On top of a year-and-a-half of the land lying untouched,

0:41:270:41:31

it took Frank and his team five months to get to this point.

0:41:310:41:35

Plus, he'd already spent 20,000 of his 80-90,000 budget,

0:41:350:41:40

meaning that, along with his purchase price,

0:41:400:41:42

he'd invested £107,000.

0:41:420:41:46

However, he hadn't been put off and was planning for the future.

0:41:460:41:50

Batten out the site and then I would have said

0:41:500:41:52

about eight months' time,

0:41:520:41:54

have a reassess of the situation and what the market is doing

0:41:540:41:59

to whether we actually go ahead or we prolong it a little longer.

0:41:590:42:04

It had certainly been a roller-coaster for Frank

0:42:040:42:07

up to that point and if he were to spend his entire budget

0:42:070:42:10

of 80-90,000, that would mean an investment of around £180-£200,000.

0:42:100:42:14

Would he be able to make a profit?

0:42:190:42:20

We asked to local estate agents for their evaluations.

0:42:200:42:24

If I had to put this property up as a two-bedroom property,

0:42:240:42:27

I'd be looking to market this property in the region of £210,000.

0:42:270:42:32

If this property was to be sold

0:42:320:42:33

as a three-bedroom property,

0:42:330:42:35

I would be looking to market it in the region of £250,000.

0:42:350:42:39

If I was going to market it as a two-bed,

0:42:390:42:41

I'd look at marketing it at around £210,000-£230,000.

0:42:410:42:47

If it was a three bed,

0:42:470:42:48

I'd be looking at around £250,000 for the property.

0:42:480:42:52

So, clearly, it would pay dividends to get planning permission

0:42:520:42:55

for a three-bed,

0:42:550:42:56

but would Frank get the permission?

0:42:560:42:59

And, after all the problems he had to overcome,

0:42:590:43:01

would it be plain sailing from thereon in?

0:43:010:43:04

You can find out how Frank got on later in the programme.

0:43:050:43:08

-Shall we check on progress?

-Yes, we've seen how one developer got on.

0:43:130:43:17

What about the other two?

0:43:170:43:18

Did they manage to stick to their timescales and budgets?

0:43:180:43:21

How did they get on? Let's find out.

0:43:210:43:23

We now head back to Derby

0:43:250:43:26

and the leafy, residential suburb of Mickleover

0:43:260:43:29

where earlier, in this grand Victorian house,

0:43:290:43:32

we saw a two/three-bedroom ground floor flat

0:43:320:43:34

that wasn't so much run down and tired, more dead on its feet.

0:43:340:43:38

The place had a messy layout and lack of external windows which

0:43:390:43:43

meant there was a real shortage of natural light about the place.

0:43:430:43:46

But looking on the bright side of this investment opportunity

0:43:460:43:50

were father and daughter team, John and Kelly,

0:43:500:43:52

who bought the flat at auction for £48,000.

0:43:520:43:56

John is a catering steward for a golf club

0:43:560:43:58

while Kelly works for a charity.

0:43:580:44:00

And this was going to be their first joint property development,

0:44:000:44:04

although something told me

0:44:040:44:05

Kelly wasn't exactly enthusiastic about doing any DIY.

0:44:050:44:09

-Do you want to be a property investor?

-Yeah.

0:44:090:44:11

-Do you want to be a property developer?

-Yeah.

-Right then.

0:44:110:44:14

Full-time job doesn't allow me to do that, unfortunately.

0:44:140:44:17

-So, you don't want to have any involvement?

-No.

0:44:170:44:20

No, look at them nails. They're not geared for that, no.

0:44:200:44:25

Well, fortunately, the team plan to get tradesmen in

0:44:250:44:28

to turn this into a two-bed flat

0:44:280:44:30

with ensuite bathrooms all in six weeks and on a £15,000 budget.

0:44:300:44:35

But it was seven months later that we returned to see the final result.

0:44:350:44:41

The tiny courtyard has been spruced up and a new double-glazed window

0:44:410:44:44

and front door lead into a transformed entrance hall...

0:44:440:44:48

..helped no end by the new roof with windows.

0:44:510:44:54

Already this place is far more inviting.

0:44:540:44:57

Overlooking the entrance to the left is a wonderfully warm,

0:44:580:45:01

stylish new kitchen.

0:45:010:45:02

Which, in turn, leads on to a stunning new bathroom suite.

0:45:050:45:10

Due to work commitments, Kelly wasn't able to meet up with us,

0:45:110:45:15

but John was there

0:45:150:45:16

to take us through his favourite changes to the flat.

0:45:160:45:19

This is the bathroom and the kitchen, which flows into one.

0:45:190:45:22

We were very, very pleased with the result here.

0:45:220:45:25

We put in new porcelain tiles down here, and a new kitchen installed.

0:45:250:45:30

We decided to make it floor all the way through,

0:45:300:45:32

so the flooring's exactly the same.

0:45:320:45:33

But I think it gives a lovely finish.

0:45:330:45:35

You know, we're very, very pleased with it.

0:45:350:45:38

And the living room has had its makeover too,

0:45:380:45:41

complete with new doors, flooring and a fire.

0:45:410:45:44

And while the front bedroom has also been renovated,

0:45:480:45:50

the big change is at the rear.

0:45:500:45:53

The main bedroom had a partition through the middle of it,

0:45:530:45:57

but we decided that wasn't going to work,

0:45:570:45:59

there wasn't enough light coming into the place,

0:45:590:46:01

so we stripped all that back and made it one big bedroom

0:46:010:46:05

and enclosed a little storage room in there as well.

0:46:050:46:08

And despite losing a bedroom, it's a definite improvement.

0:46:080:46:11

But with one of their objectives achieved, another had to be ditched.

0:46:110:46:15

Our main design when we first came here was to en suite both bedrooms

0:46:150:46:20

and make the kitchen all in one,

0:46:200:46:22

but the cost was horrendous for digging up floors,

0:46:220:46:26

putting drainage in, so we decided it wasn't cost-effective enough,

0:46:260:46:29

so we decided to leave the kitchen and the bathroom where it was

0:46:290:46:31

and leave the bedroom as one big bedroom, which I think works well.

0:46:310:46:36

This flat has seen a total renovation,

0:46:370:46:39

from wall-to-wall, top to bottom,

0:46:390:46:41

from new electrics to gas pipe works,

0:46:410:46:43

plumbing and new central heating.

0:46:430:46:45

And those skylights in the entrance hallway only came into being

0:46:450:46:49

when the original plastic roof became leaky.

0:46:490:46:52

But it's another big improvement

0:46:520:46:54

on what was originally a grubby entrance.

0:46:540:46:57

Contracted builders did the major renovations,

0:46:570:46:59

while friends and family helped out with the rest,

0:46:590:47:02

so did that include Kelly?

0:47:020:47:04

No.

0:47:040:47:05

HE LAUGHS

0:47:050:47:06

Very supportive, though, very supportive.

0:47:060:47:09

Every now and again she would say... I'd moan about how much work I've done, and she would say,

0:47:090:47:13

"Oh, Dad, you're doing too much, you want to take it a bit more easier."

0:47:130:47:17

That's about the only support I got from Kelly but, apart from that, she was great.

0:47:170:47:20

From what could have been a troublesome project,

0:47:210:47:24

John and Kelly's only major problem was the walk-out

0:47:240:47:27

of their contracted builder midway through the renovations.

0:47:270:47:30

Fortunately, they were able to find somebody

0:47:300:47:33

to finish off the main build,

0:47:330:47:34

but those delays meant the flat took six months to transform.

0:47:340:47:38

Was that delay reflected in the budget?

0:47:380:47:41

We planned to spend £15,000, but we hadn't really

0:47:410:47:43

budgeted for central heating as such, and then when the roofing...

0:47:430:47:47

we found out it was leaking,

0:47:470:47:49

it added another couple of thousand pounds to the job.

0:47:490:47:52

And the finish, we decided on a better finish than the builder quoted us for.

0:47:520:47:55

In total we spent around £18,500.

0:47:550:47:59

Having bought the flat for 48,000,

0:47:590:48:02

that renovation cost of £18,500 has pushed their total spend to £66,500.

0:48:020:48:08

John and Kelly aim to put this flat on the rental market,

0:48:080:48:11

and while the finish and style here is excellent,

0:48:110:48:14

I'm worried their new investment might not pay for itself.

0:48:140:48:17

But it's time to find out

0:48:200:48:21

what two local property experts think of the new flat,

0:48:210:48:23

starting with the auctioneer

0:48:230:48:25

who originally sold the flat to John and Kelly.

0:48:250:48:29

The standard of the property they have achieved is good.

0:48:290:48:31

It looks very clean, tidy and of good specification.

0:48:310:48:35

And I think, you get people through the door,

0:48:350:48:38

and they will be impressed by what they find.

0:48:380:48:40

This is my first time inside the property,

0:48:420:48:45

but I understand it was a little bit scruffy the first time around.

0:48:450:48:49

So they've done a very good job of smartening it up to make it

0:48:490:48:52

quite appealing. Selling points are a smart new kitchen,

0:48:520:48:55

lovely new bathroom and two decent sized bedrooms.

0:48:550:49:00

So, with the flat bound for the lettings market,

0:49:000:49:02

what sort of rental return could John and Kelly expect?

0:49:020:49:06

If this was rented out, there's no doubt about it,

0:49:060:49:08

you'd achieve at least £550 a calendar month.

0:49:080:49:12

You might even get £575.

0:49:120:49:14

I would expect a rental value of up to approximately £600 per calendar month.

0:49:140:49:18

We are in the market at the moment for 595, so it is in the ballpark, yes.

0:49:180:49:22

We are very happy with that figure, yes.

0:49:220:49:24

Well, if John and Kelly get that rental figure of £595

0:49:240:49:29

per calendar month, it would mean a fantastic yield of just under 11%.

0:49:290:49:34

It's easy to see why they plumped for the rental option,

0:49:340:49:37

but if they decide to sell,

0:49:370:49:39

the agents reckon they could expect to achieve from £60-£70,000.

0:49:390:49:44

Well, all I can say is you won't get much for a makeover at that price.

0:49:450:49:49

But I'm happy with those values.

0:49:490:49:51

As long as I get what I paid for back again, I'm happy with that.

0:49:510:49:54

It is a rental, so it was an investment,

0:49:540:49:58

it is a long-term rental. I am happy with that.

0:49:580:50:01

Well, with their spend of 66,500,

0:50:010:50:04

there wouldn't be much profit to be made from selling the flat.

0:50:040:50:07

And with that incredible yield of just under 11%,

0:50:070:50:10

it's easy to see why they're going down the rental road.

0:50:100:50:13

And in fact it sounds like John is so taken with it, he might be its first tenant.

0:50:130:50:18

Very, very pleased with the finished product. Surprised myself, actually, when it was finished.

0:50:180:50:23

When all the...paint goes on, the gloss goes on...

0:50:230:50:26

and you touch up the bits and pieces, clean the windows,

0:50:260:50:29

then you look at the finishing on the doors, etc, and think,

0:50:290:50:33

"Yeah, yeah, I'd live here."

0:50:330:50:34

Back to Chatham in Kent now.

0:50:400:50:42

It was way back in 2009 that

0:50:420:50:45

I first visited a plot of land

0:50:450:50:47

situated in a highly desirable residential area, that had

0:50:470:50:51

a guide price of £65-£70,000

0:50:510:50:54

and, crucially, already had planning permission

0:50:540:50:58

for a two-bedroom chalet bungalow.

0:50:580:51:00

Now, I can see that there is a huge storage space

0:51:000:51:04

running all the way around the outside.

0:51:040:51:07

Now, surely that is a bit of a waste of space. Do you think, possibly,

0:51:070:51:11

we could squeeze another bedroom out of that?

0:51:110:51:13

I think by doing that,

0:51:130:51:15

you would then really appeal to the family market.

0:51:150:51:18

It was certainly a popular lot on auction day, and it eventually

0:51:180:51:21

went for £87,000 to experienced property developer Frank...

0:51:210:51:26

..who, like me, had spotted the issue with the approved plans.

0:51:270:51:30

-That seems to me to be a waste of space.

-That is just the loft storage.

0:51:320:51:35

That's... Exactly. The thing is, you are pitching the roof,

0:51:350:51:38

and that is quite a wide area. You could get another bedroom in there.

0:51:380:51:41

But perhaps the planners don't want that particular situation,

0:51:410:51:45

but it does lend itself to another bedroom in that area there.

0:51:450:51:49

Adding a bedroom would need further planning permission, but Frank was confident

0:51:490:51:53

and had earmarked an £80-£90,000 budget

0:51:530:51:56

and a timescale of six months, once planning permission was granted.

0:51:560:52:00

Well, fast forward two years,

0:52:020:52:05

and we return to the site to find that, thanks to the financial

0:52:050:52:08

instability of the property market at that time,

0:52:080:52:11

Frank had decided to put his plans on hold

0:52:110:52:13

and had only dug the foundations and laid the footings

0:52:130:52:16

so that the original planning permission wouldn't lapse.

0:52:160:52:19

He'd spent £20,000 of his original budget

0:52:220:52:25

and was going to wait eight months

0:52:250:52:27

to see how stable the property market was

0:52:270:52:30

before making a decision about when to complete the build.

0:52:300:52:33

It's almost three-and-a-half years since our last visit,

0:52:330:52:37

and I can barely look!

0:52:370:52:39

Has Frank finally completed the property?

0:52:390:52:42

Well, it looks like a fabulous new home from the outside.

0:52:480:52:52

Let's take a look inside.

0:52:520:52:54

Wow! It has been worth the wait.

0:53:050:53:07

After almost five-and-a-half years,

0:53:070:53:10

we now have a beautiful, bright and spacious property,

0:53:100:53:14

absolutely ideal for the family market.

0:53:140:53:17

Moving upstairs, and I'm delighted to report that not only did

0:53:240:53:28

Frank get planning permission for a third bedroom,

0:53:280:53:31

but he also got permission for a fourth bedroom, making this

0:53:310:53:34

a brilliantly proportioned four-bed chalet bungalow.

0:53:340:53:38

Time to hear from Frank exactly how it's been and what he's done.

0:53:440:53:48

We've got a chalet bungalow.

0:53:490:53:52

On the ground floor, we've got a bedroom and an en-suite.

0:53:520:53:56

We've got a wide hall.

0:53:560:53:59

A very nice lounge with a bay in it.

0:53:590:54:04

You move back, you've got a big kitchen.

0:54:040:54:07

And then you've got a downstairs loo, the stairs,

0:54:070:54:11

and equally you've got a utility room.

0:54:110:54:16

Upstairs, you've got...

0:54:160:54:19

three beds upstairs, er, one en-suite,

0:54:190:54:23

one family bathroom.

0:54:230:54:25

Whilst there are still a few finishing touches needed,

0:54:250:54:28

particularly outside where the lawn is still to be laid,

0:54:280:54:31

Frank is almost finished.

0:54:310:54:33

But how is his original budget of £80-£90,000 looking?

0:54:330:54:38

We're at about 150,000.

0:54:380:54:41

And...obviously we've got...

0:54:410:54:43

extra on the bedroom,

0:54:430:54:46

which we wouldn't have had to do,

0:54:460:54:49

so, yes, there's certain things.

0:54:490:54:51

I've put, er, some, um, good fittings in there, and so on.

0:54:510:54:55

So roughly about 150,000, I suppose.

0:54:550:54:59

£150,000 is almost twice his original budget,

0:54:590:55:02

although he does say that was before he budgeted for the extra rooms.

0:55:020:55:07

So with the project all but complete,

0:55:070:55:10

what is he most pleased with?

0:55:100:55:13

Well, the whole thing, to be honest.

0:55:130:55:15

The...the style, I like the style, from the beginning.

0:55:150:55:19

The gentleman I bought it off actually had the plan done, outline.

0:55:190:55:25

And, um... we tweaked it a bit, but nothing much. And I do like it.

0:55:250:55:30

Everyone around seems to like the style of it as well, you know.

0:55:300:55:34

Well, it has taken just about five-and-a-half years

0:55:350:55:38

and, along with the purchase price,

0:55:380:55:40

Frank has invested 237,000 into this property.

0:55:400:55:43

And with him eager to sell, it's going to be interesting to hear

0:55:450:55:48

the thoughts of two local estate agents,

0:55:480:55:51

both of whom visited the site last time we were here.

0:55:510:55:54

Yes, I'm very surprised to see it,

0:55:540:55:56

it's much bigger than I thought it was,

0:55:560:55:58

and I think they've made a real good job of it.

0:55:580:56:00

It's amazing, the changes. The last time I came, it was just a base.

0:56:000:56:03

And now that the chalet bungalow is on here,

0:56:030:56:07

it is so much bigger than it was.

0:56:070:56:10

The base looked so tiny, but now the house look so big.

0:56:100:56:13

I think, for the person who bought it, it was the right move to

0:56:130:56:16

move from a two-bed to a four-bed.

0:56:160:56:19

Two bedrooms is just not enough for a family,

0:56:190:56:21

and this design just asks for a four-bedroom.

0:56:210:56:25

So the estate agents are sounding pretty impressed

0:56:260:56:29

and are particularly keen on the addition of the fourth bedroom.

0:56:290:56:32

Back in 2011, with just the plans to go by,

0:56:340:56:37

they both predicted a resale value of around £250,000

0:56:370:56:41

for a three-bed chalet bungalow.

0:56:410:56:44

So how does this completed four-bed compare?

0:56:440:56:48

If I was going to put this on the market,

0:56:480:56:50

I would be looking in the region of

0:56:500:56:52

£350,000-£375,000

0:56:520:56:56

for the property.

0:56:560:56:58

If he was to sell this property, I think he would achieve

0:56:580:57:01

a price in the region of

0:57:010:57:02

£350,000-£375,000.

0:57:020:57:07

That's more than I thought.

0:57:070:57:09

Yeah. Absolutely.

0:57:090:57:12

That is very good, very good indeed, yes.

0:57:120:57:15

Well, that top valuation of £375,000

0:57:160:57:20

would mean a pre-tax profit of around 138,000...

0:57:200:57:24

..meaning Frank's decision to wait out the financial crisis,

0:57:260:57:29

and to add a fourth bedroom has been a huge success,

0:57:290:57:33

making him a very happy man.

0:57:330:57:37

Over the moon, absolutely over the moon.

0:57:370:57:40

It's been a joy to do. The...

0:57:400:57:42

the value of it now is, um...

0:57:420:57:44

You know, when we're coming to the end and the value is that, well, that's good.

0:57:440:57:48

You've got two agents with a similar figure, that's good.

0:57:480:57:52

Yeah, very good.

0:57:520:57:54

Well, that's it for today's show, but we'll have plenty more

0:57:560:57:59

stories from the auction rooms for you next time.

0:57:590:58:02

Yes, you can join us for the ups and downs

0:58:020:58:04

-of property developing!

-See you then. Bye.

-Goodbye!

-Bye.

0:58:040:58:07

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