0:00:02 > 0:00:05Hello! Sometimes the property market can get a bit competitive
0:00:05 > 0:00:07- and you can end up paying too much. - Yes, that's right.
0:00:07 > 0:00:10Make sure you do your research, you set a limit
0:00:10 > 0:00:11and then you stick to it.
0:00:11 > 0:00:14Yes, and one way you can put that advice into practice
0:00:14 > 0:00:17and maybe get yourself a bargain is at the auctions.
0:00:43 > 0:00:46Now, buying at auction is becoming more and more popular - we should know.
0:00:46 > 0:00:49Yes, but maybe that's not so surprising when you figure what
0:00:49 > 0:00:54a long drawn-out process buying property by other means can be.
0:00:54 > 0:00:56So, when the hammer falls at auction,
0:00:56 > 0:00:59you exchange those contracts, how did today's buyers get on?
0:00:59 > 0:01:01Let's find out.
0:01:01 > 0:01:03First up in Edgbaston, Birmingham,
0:01:03 > 0:01:06I may need to start watching my step.
0:01:08 > 0:01:09HE SCREAMS
0:01:12 > 0:01:15And in Waterhead, Oldham, it's the creepy crawlies with
0:01:15 > 0:01:17a sting in their tails I'll need to watch out for.
0:01:21 > 0:01:23Whilst in Forest Hill, south London,
0:01:23 > 0:01:26an opening bid makes everyone's eyes pop.
0:01:26 > 0:01:29- What a great lot, who wants to give me a start on this?- 1,000,000!
0:01:29 > 0:01:30£1,000,000.
0:01:32 > 0:01:34All of these properties have been sold at auction.
0:01:34 > 0:01:37We'll find out who bought them and what they paid for them
0:01:37 > 0:01:39when they went under the hammer.
0:01:39 > 0:01:40Sold.
0:01:44 > 0:01:46Today we're in Edgbaston.
0:01:48 > 0:01:49But fear not, cricket fans,
0:01:49 > 0:01:52Warwickshire's ground is not going under the hammer.
0:01:52 > 0:01:56No, I'm in the eponymous suburb just outside Birmingham.
0:01:56 > 0:01:57But don't worry,
0:01:57 > 0:02:01though the property we're here to see is in the west, bordering Smethwick
0:02:01 > 0:02:06it's just a short hop on public transport to Birmingham city centre
0:02:06 > 0:02:08or, indeed, the cricket ground.
0:02:11 > 0:02:14You can normally tell quite a lot from the auction catalogues.
0:02:14 > 0:02:18Up for auction in this instance, "A traditional three-bed terraced
0:02:18 > 0:02:23"house in need of a thorough scheme of modernisation and improvement."
0:02:23 > 0:02:27That can mean all sorts of things. Guide price, £58,000 plus.
0:02:27 > 0:02:29This is it. Let's have a look.
0:02:30 > 0:02:33HE SCREAMS
0:02:33 > 0:02:36Right. Didn't expect that.
0:02:37 > 0:02:38Wow.
0:02:41 > 0:02:46OK. Fairly big drop down to a non-existent floor, then.
0:02:47 > 0:02:51I feel like I've shrunk. What a strange feeling this is.
0:02:51 > 0:02:54Clearly there's something seriously weird going on here.
0:02:54 > 0:02:57The floor has been taken out.
0:02:59 > 0:03:02Not normally considered an optional extra but it is today.
0:03:02 > 0:03:05But let's see if we can recover somewhat
0:03:05 > 0:03:07and see what there actually is.
0:03:07 > 0:03:11OK, well, there's a little corridor with a very, very dodgy wall.
0:03:11 > 0:03:15There's a front room there with ferns.
0:03:15 > 0:03:18Saves on pot plants, I suppose. It's all looking pretty good so far.
0:03:20 > 0:03:22Or not.
0:03:22 > 0:03:25# The concrete and the clay beneath my feet
0:03:25 > 0:03:27# Begins to crumble
0:03:27 > 0:03:31# But love will never die. #
0:03:31 > 0:03:33Now, I'm no surveyor and I don't know
0:03:33 > 0:03:37if it's the damp under the window, the hanging wall or the fact I'm
0:03:37 > 0:03:42a foot shorter than usual but I get the feeling this house has problems.
0:03:42 > 0:03:45Ahem, seriously, though, if you don't get an expert to look at this
0:03:45 > 0:03:47pronto, alarm bells will be ringing.
0:03:51 > 0:03:53Now, to give the auctioneers their due,
0:03:53 > 0:03:57the auction catalogue does say the auctioneers have not
0:03:57 > 0:04:00inspected the property but believe it to comprise,
0:04:00 > 0:04:06amongst other things, kitchen, unfitted, bathroom, unfitted.
0:04:06 > 0:04:10What it obviously doesn't say is floor, unfitted.
0:04:11 > 0:04:13Joking aside, yeah,
0:04:13 > 0:04:17the lack of floor continues through the entire downstairs.
0:04:17 > 0:04:20But you've got a large living room there in the middle.
0:04:20 > 0:04:22This, presumably at some point, was the kitchen.
0:04:22 > 0:04:25And then the bathroom to the property at the back there.
0:04:25 > 0:04:29So, what are we left with? Well, we're left with a big hole
0:04:29 > 0:04:32and a space where a floor used to be.
0:04:32 > 0:04:35Good news, I suppose, is that if the floor was rotten or it had issues,
0:04:35 > 0:04:38somebody's actually got rid of it for you.
0:04:38 > 0:04:40Bad news is you've got to put it back.
0:04:40 > 0:04:43And that is a very manually driven job,
0:04:43 > 0:04:47as in somebody has to bang nails in, cut bits of wood to fit.
0:04:47 > 0:04:50It's stuff that takes time, time equals money.
0:04:50 > 0:04:55So, this bit of the renovation alone is going to take a big chunk of your budget.
0:04:57 > 0:04:59Normally, in a traditional house like this,
0:04:59 > 0:05:03I would be working out how to get the bathroom upstairs.
0:05:03 > 0:05:08In this case, there isn't one at all and the absence of that
0:05:08 > 0:05:11and the kitchen means this is likely to be looking for a cash buyer
0:05:11 > 0:05:15as mortgages for properties without them can be tricky.
0:05:15 > 0:05:19So, no bathroom, no kitchen, no floors but lots of mould
0:05:19 > 0:05:23and other plant life. Right, I've tossed my catalogue aside.
0:05:23 > 0:05:25Time to venture upstairs. Wish me luck.
0:05:29 > 0:05:32It's really funny how suddenly you don't take anything for granted.
0:05:32 > 0:05:36The good news is, upstairs there is a floor. Fantastic.
0:05:36 > 0:05:39There's also three bedrooms, not bad sized. All at the front.
0:05:39 > 0:05:43That's quite pleasant, lots of light coming in from the two windows there.
0:05:43 > 0:05:47And, actually, upstairs - corridor down to another bedroom there,
0:05:47 > 0:05:52into this other bedroom - it's in really, comparably, good condition.
0:05:52 > 0:05:58Lots of space, but it's turned from uu-uu-uu-ugh
0:05:58 > 0:06:00to mm-mm-mm? Not bad.
0:06:01 > 0:06:04Well, you know, once this was all restored
0:06:04 > 0:06:07I can imagine this floor could be really lovely.
0:06:07 > 0:06:09You could even move the bathroom upstairs
0:06:09 > 0:06:12but you would lose one of those three bedrooms.
0:06:12 > 0:06:15Outside, there is a rather dismal looking yard
0:06:15 > 0:06:19and some barbed wire that I would get rid of ASAP.
0:06:19 > 0:06:22All in all, I'm not as sceptical as I was.
0:06:22 > 0:06:25# Then she said, yeah, yeah,
0:06:25 > 0:06:28# "You're like a diamond in the rough." #
0:06:28 > 0:06:31Time to find out what a local estate agent thinks of this terrace
0:06:31 > 0:06:34guided at £58,000.
0:06:34 > 0:06:39The area is prone to an issue that was in place years
0:06:39 > 0:06:42and years ago when the floors were actually built on ash.
0:06:42 > 0:06:46So, some of the original quarry tiles will have been laid on ash
0:06:46 > 0:06:50and then floors, subsequently, of course, will have moved.
0:06:50 > 0:06:53So, the floor can just be re-laid now it's been taken out.
0:06:53 > 0:06:55Ah, that explains a lot.
0:06:55 > 0:06:59It used to be considered OK to lay flagstone, quarry tile or parquet
0:06:59 > 0:07:02flooring on a base of ash, sand or even just earth.
0:07:02 > 0:07:06A great method to suck up damp and cold into your house.
0:07:06 > 0:07:10But at least someone has started some of the hard work.
0:07:10 > 0:07:13So, would it be worth taking this project in progress
0:07:13 > 0:07:17to the next level or at least just making the floor level?
0:07:17 > 0:07:19Let's get those all-important values.
0:07:19 > 0:07:23Once renovated, as a three-bedroom property, I would market this at
0:07:23 > 0:07:30around £110,000 in order to achieve anywhere from £100,000-£105,000.
0:07:30 > 0:07:33The agent doesn't believe that moving the bathroom would
0:07:33 > 0:07:34make any difference to the values
0:07:34 > 0:07:39so if you got it for anything like the £58,000 guide price,
0:07:39 > 0:07:43replace the floors and left the layout as it is, you could do OK.
0:07:43 > 0:07:45What about rentals?
0:07:45 > 0:07:46Once renovated,
0:07:46 > 0:07:52this property could achieve anywhere from £500-£550 per calendar month.
0:07:53 > 0:07:56Well, here's a house that proves you can never take
0:07:56 > 0:07:59anything for granted when it comes to property.
0:07:59 > 0:08:02Yep, it's got an optional extra required - a floor.
0:08:02 > 0:08:06Lots of work to do, joking apart, and a lot of it being manual,
0:08:06 > 0:08:08so it's not going to be cheap.
0:08:08 > 0:08:11Let's see who went for it when it went under the hammer.
0:08:11 > 0:08:15Lot 53. It's a three-bedroomed bay-windowed terrace house.
0:08:15 > 0:08:1750?
0:08:17 > 0:08:19I'll take 50 as a start, thank you.
0:08:19 > 0:08:22At £50,000, 51.
0:08:22 > 0:08:2451, 52,
0:08:24 > 0:08:2653, 54,
0:08:26 > 0:08:2855, 56...
0:08:28 > 0:08:31It may not have been the busiest auction room but that didn't
0:08:31 > 0:08:35stop the bids coming thick and fast for this particular property.
0:08:35 > 0:08:38We rejoin the bidding at 71,500.
0:08:38 > 0:08:4271,500, 72,000?
0:08:42 > 0:08:4672,000, 72,500?
0:08:46 > 0:08:4872,500, are you sure?
0:08:48 > 0:08:53At £72,500 going once,
0:08:53 > 0:08:57going twice, third chance, all done?
0:08:57 > 0:08:59Sold at 72,500. Thank you.
0:09:01 > 0:09:08And the successful bid of £72,500 came from freelance IT consultant Abu.
0:09:08 > 0:09:12I met him back at the property to find out what he had planned.
0:09:12 > 0:09:16- Abu, good to meet you.- Nice to meet you, Martin.- Congratulations.
0:09:16 > 0:09:19Tell me why you wanted to buy this house.
0:09:19 > 0:09:23- I actually went to buy a car for my wife last week.- What?!- Yes.
0:09:24 > 0:09:28- The last two cars we bought for my wife have been from Derby.- Right.
0:09:28 > 0:09:31So, I went there to buy another car for her
0:09:31 > 0:09:34and ended up at the auction
0:09:34 > 0:09:37- and next thing I know I've bought a house.- What?!
0:09:38 > 0:09:41I knew there was an auction taking place in Derby
0:09:41 > 0:09:46and I knew this property was on the auction list so...
0:09:46 > 0:09:49While I was in Derby I thought I'd pop over and have a look.
0:09:49 > 0:09:53And the next thing I know I've actually walked away with a house.
0:09:53 > 0:09:58- Did you get a car, as well?- No. - Right, is she speaking to you yet?
0:09:58 > 0:10:01Yes, I have promised her she'll get her car so she's happy,
0:10:01 > 0:10:04I think she'll get the car sorted.
0:10:04 > 0:10:07So, Asma, Abu's wife, hasn't got a car yet
0:10:07 > 0:10:09but Abu has already renovated
0:10:09 > 0:10:12and sold several other previous homes
0:10:12 > 0:10:15and he has just sold their last house in order to get working
0:10:15 > 0:10:18capital to help finance purchasing investment properties.
0:10:18 > 0:10:21So, had you seen the property beforehand?
0:10:21 > 0:10:22I hadn't seen the property.
0:10:22 > 0:10:25I don't think there was any viewing for it but I knew the location
0:10:25 > 0:10:28and I knew that they're building a hospital literally about
0:10:28 > 0:10:31- 400-500 metres from this property.- Right.
0:10:31 > 0:10:34So, from that point of view, I thought there's not much
0:10:34 > 0:10:36I can go wrong with, to be honest.
0:10:36 > 0:10:40So, presumably, you assumed, naturally, it would have some basics.
0:10:40 > 0:10:43To be honest, I was expecting a lot worse state
0:10:43 > 0:10:45because I haven't seen the property.
0:10:45 > 0:10:49You might have realistically expected a floor downstairs,
0:10:49 > 0:10:50I suppose.
0:10:50 > 0:10:53Yes. I think, yeah, that was a bit of...
0:10:53 > 0:10:56I actually walked through the door, it looks a lot worse,
0:10:56 > 0:10:59then when you get upstairs it's actually quite decent.
0:10:59 > 0:11:02# Cos I'm Mr Brightside. #
0:11:04 > 0:11:07Abu seems unfazed by all of this.
0:11:07 > 0:11:11He hadn't looked at either this property or the legal pack and then
0:11:11 > 0:11:16he discovered that it had a 10-day completion instead of the usual 28.
0:11:16 > 0:11:18He could really have been in trouble
0:11:18 > 0:11:20if he hadn't had the money organised.
0:11:20 > 0:11:23But he is seeing the positives here.
0:11:23 > 0:11:27Being near a new hospital does make for good investment potential.
0:11:27 > 0:11:29And, as we are both agreed,
0:11:29 > 0:11:35upstairs is fine. I just hope his wife, sans car, feels as positive.
0:11:35 > 0:11:39What are you going to do, then, to make it habitable?
0:11:39 > 0:11:42Obviously I'm going to strip the whole house out, put in new kitchen,
0:11:42 > 0:11:47new bathroom, maybe plaster the whole house, new wiring.
0:11:47 > 0:11:50Certainly floor-boarding downstairs would help.
0:11:50 > 0:11:52And possibly double-glazing it.
0:11:54 > 0:11:58And then I think I'll end up with probably four rooms to let.
0:11:58 > 0:12:00Three upstairs and one in the front room downstairs.
0:12:00 > 0:12:03- Oh, wow, you're going to do it as a...- Yeah.- ..individual rooms?
0:12:03 > 0:12:08I think that probably makes more sense to do that way
0:12:08 > 0:12:10than to rent it as a house.
0:12:10 > 0:12:15- I think... Budget of about 8,000-10,000.- 8,000-10,000?
0:12:15 > 0:12:19- Have you had any quotes yet?- No.- Mm. - LAUGHTER
0:12:19 > 0:12:23No, I'm fairly comfortable. I'm still fairly comfortable with it.
0:12:23 > 0:12:27The downstairs, a lot of manual work to get that floor sorted out.
0:12:27 > 0:12:30Joists and people with hammers and saws.
0:12:30 > 0:12:33I mean, yeah, it'll be interesting to see when I do get a quote
0:12:33 > 0:12:36whether I'm within my budget of 10,000.
0:12:36 > 0:12:41- But at the moment that's the figure I had in mind.- What about timescale?
0:12:41 > 0:12:44- I'm looking to do it in the next four weeks.- Wow.
0:12:44 > 0:12:48Yeah, I mean, I think once I've got my builder in here...
0:12:48 > 0:12:50Have you got a builder lined up, then?
0:12:50 > 0:12:53No, I'm going to get... Next couple of days, shortlist a couple of people
0:12:53 > 0:12:57- and then choose one by the weekend and get them to start Monday.- Wow.
0:12:57 > 0:13:00- And then get somebody in.- Yeah. - Time is money.
0:13:00 > 0:13:03Like I say, the plan was to do one of these,
0:13:03 > 0:13:05if I'm successful I'll do another five or six.
0:13:05 > 0:13:08- Well, it's lovely to meet you. Congratulations.- Thank you.
0:13:08 > 0:13:11- Good luck with it.- I think I'll need a lot. Thank you.
0:13:12 > 0:13:14Boy, oh, boy, oh, boy.
0:13:14 > 0:13:16After all these years of Homes Under The Hammer,
0:13:16 > 0:13:21I think I've heard it all and then I meet Abu. Fantastic.
0:13:21 > 0:13:25Wow, went to buy a car and ended up buying a house and one...
0:13:27 > 0:13:29..that needs a heck of a lot of work to sort it out.
0:13:29 > 0:13:31Four weeks, really?
0:13:31 > 0:13:3210,000?!
0:13:33 > 0:13:37Well, it'll be interesting to see how it turns out.
0:13:37 > 0:13:39I mean, you've got to love his positivity.
0:13:39 > 0:13:42You can see what happens later in the show.
0:13:47 > 0:13:49Close to the Pennines in Greater Manchester
0:13:49 > 0:13:52lies the town of Oldham.
0:13:52 > 0:13:54It was once the most productive cotton spinning mill town
0:13:54 > 0:13:57in the world, boasting seven railway stations.
0:13:59 > 0:14:03Nowadays, its transport includes a tram service that can get
0:14:03 > 0:14:05you to the centre of Manchester in about 30 minutes.
0:14:07 > 0:14:10Famous Oldhamites include Brian Cox OBE,
0:14:10 > 0:14:15the BBC science presenter and former keyboard player in the band D:Ream.
0:14:15 > 0:14:17That's him tinkling away now.
0:14:17 > 0:14:19KEYBOARD MUSIC PLAYS
0:14:19 > 0:14:22The property I'm here to see is in the Waterhead area of the town.
0:14:22 > 0:14:27It's a three-bed detached house with a guide price of £75,000 plus
0:14:27 > 0:14:30in a very, very popular residential area.
0:14:30 > 0:14:33And the first thing I can see is the driveway,
0:14:33 > 0:14:35that will definitely need tending to.
0:14:35 > 0:14:36Let's take a look.
0:14:36 > 0:14:38# Things
0:14:38 > 0:14:41# Can only get better! #
0:14:44 > 0:14:47And this is a nice big area here.
0:14:47 > 0:14:50Kitchen in here which seems to be in good condition.
0:14:50 > 0:14:53Through into the lounge area.
0:14:53 > 0:14:54Stairs to the bedrooms
0:14:54 > 0:14:57and a bit of an outside balcony space there which could be
0:14:57 > 0:15:00used on those nice summer nights or even,
0:15:00 > 0:15:03if you're feeling adventurous, you could build on that.
0:15:03 > 0:15:05Planning permission, of course, you'd have to get for that.
0:15:05 > 0:15:07Dining room over here.
0:15:07 > 0:15:11This is a lot of floor space but the one thing that does hit me
0:15:11 > 0:15:13is the kitchen could quite easily be opened up,
0:15:13 > 0:15:16you could actually take this wall down.
0:15:17 > 0:15:20Half the work's done for you cos this is a false wall
0:15:20 > 0:15:23so you could actually open it up, have the kitchen there,
0:15:23 > 0:15:28tidy that up, nice little dining area here, lovely lounge area there.
0:15:28 > 0:15:29That's what I'd do.
0:15:31 > 0:15:35Don't get me wrong, separate kitchen space does have its advantages.
0:15:35 > 0:15:39Cooking smells are more containable and, although I am quite
0:15:39 > 0:15:42a tidy person in the kitchen, if you're the type to use every pan
0:15:42 > 0:15:47in the house, well, cookery carnage is best hidden behind closed doors.
0:15:48 > 0:15:52However, lots of young families like the open-plan thing as it
0:15:52 > 0:15:55allows you to cook and keep an eye on the kids at the same time.
0:15:55 > 0:15:59I think making this open-plan living-dining space even more
0:15:59 > 0:16:01open-plan is the way to go here.
0:16:03 > 0:16:07Upstairs, the three bedrooms have reasonable proportions.
0:16:07 > 0:16:09Decorations and floor coverings being perfectly
0:16:09 > 0:16:11acceptable for rental property.
0:16:13 > 0:16:17The smallest room has even been decked out with disco lighting.
0:16:17 > 0:16:19But you wouldn't be able to invite many people.
0:16:21 > 0:16:24The bathroom fixtures, too, are more than adequate for letting.
0:16:24 > 0:16:28But there's one unwelcome bonus feature which would definitely
0:16:28 > 0:16:29stop me from showering here.
0:16:32 > 0:16:35There's clearly a wasp nest in this property somewhere.
0:16:35 > 0:16:37There's so many wasps on that windowsill.
0:16:37 > 0:16:39Don't try and deal with it yourself,
0:16:39 > 0:16:42get in touch with your local council and they will send someone
0:16:42 > 0:16:45out from their pest control department to deal with it for you.
0:16:45 > 0:16:47Shouldn't cost you any more than £50-ish,
0:16:47 > 0:16:52it does vary across the country but get it sorted as soon as possible.
0:16:52 > 0:16:54# Now I'm on the outside. #
0:16:55 > 0:16:56A quick glance outside
0:16:56 > 0:16:59and it's easy to see where these pests are accessing the loft space.
0:17:02 > 0:17:04Now, this house has a lot of ups and downs,
0:17:04 > 0:17:06due to its position on a slope.
0:17:06 > 0:17:09For instance, not everyone would like those front steps
0:17:09 > 0:17:12taking you to the open-plan living area above the garage level
0:17:12 > 0:17:15and, of course, it means the garden has its ups and downs, too.
0:17:16 > 0:17:18This garden's going on forever.
0:17:18 > 0:17:21Now, they've got a nice little bit of back garden here.
0:17:21 > 0:17:24It's the most level part of the garden that they have round
0:17:24 > 0:17:28this property. Going through here, side of the house, even more garden.
0:17:28 > 0:17:33Yes, it's uneven. It could be really nice outside here. I like it.
0:17:35 > 0:17:38The balcony above the garage could do with a little bit of TLC,
0:17:38 > 0:17:41and a tidy-up of the garage space itself wouldn't go amiss.
0:17:43 > 0:17:46We asked a local property expert from the auction house
0:17:46 > 0:17:50who sold the property for his thoughts and valuations.
0:17:50 > 0:17:52It's a general refurbishment.
0:17:52 > 0:17:54I'm not sure that you would do any major works.
0:17:54 > 0:17:56I don't think there's the space, externally,
0:17:56 > 0:18:01to either extend it or put a conservatory on.
0:18:01 > 0:18:03For rental, once it's refurbished,
0:18:03 > 0:18:06we'd expect it to achieve £750 per calendar month.
0:18:06 > 0:18:09Given the guide price of £75,000 plus,
0:18:09 > 0:18:13what kind of scope is there after a good refurbishment?
0:18:13 > 0:18:17We'd expect it to achieve somewhere between £120,000-£130,000
0:18:17 > 0:18:20once it's been refurbished to a good standard.
0:18:21 > 0:18:25This could be a lovely family home. There's not a lot to be done here.
0:18:25 > 0:18:29The kitchen, the dining room and the lounge could be changed,
0:18:29 > 0:18:32could be one big, open space, which is what I would do.
0:18:32 > 0:18:34Outside here could be inside or out.
0:18:34 > 0:18:36There's lots of choice with this property.
0:18:36 > 0:18:40Let's see who's seen the potential when it went under the hammer.
0:18:40 > 0:18:46Lot five, Waterhead, Oldham. £75,000, the guide on this one.
0:18:46 > 0:18:51Start me, then, 70? Need a bid. Can't sell without one. £70,000.
0:18:51 > 0:18:5365, then?
0:18:53 > 0:18:55I'll take it away.
0:18:55 > 0:18:5765, here. At £65,000...
0:18:57 > 0:19:00The threat to remove the property from the auction galvanises
0:19:00 > 0:19:04the packed auction room and bids soon exceeded the guide price.
0:19:04 > 0:19:09We rejoin the bidding at £79,000.
0:19:09 > 0:19:15At £79,000, then. Are we done? At £79,000, then, for the first time.
0:19:15 > 0:19:19Are you sure? At £79,000 for the second time.
0:19:20 > 0:19:24Half, I'll take it. 80? Half. You're out.
0:19:24 > 0:19:27Here, at 80. At £80,000, then.
0:19:27 > 0:19:28First time.
0:19:28 > 0:19:30Second time.
0:19:30 > 0:19:31Selling it at £80,000,
0:19:31 > 0:19:34third and final time...
0:19:34 > 0:19:35Well done, Madam, congratulations.
0:19:35 > 0:19:38The successful bidder is Saira, a dentist,
0:19:38 > 0:19:42at the auction with her six-year-old daughter, Alina.
0:19:42 > 0:19:46I arranged to meet her and her husband, Sohan, at the property.
0:19:47 > 0:19:50This is the first time Sohan, who is an ENT surgeon,
0:19:50 > 0:19:51will have seen it.
0:19:51 > 0:19:54But they're no strangers to property developing,
0:19:54 > 0:19:58having already got three properties in their portfolio.
0:19:58 > 0:20:01Nice to meet you, Sohan, Saira, nice to meet you both.
0:20:01 > 0:20:03Firstly, tell me about the auction experience
0:20:03 > 0:20:06because I know you were in charge. Yes.
0:20:06 > 0:20:07I went along to the auction.
0:20:07 > 0:20:10I didn't really know about the auction until two hours before.
0:20:10 > 0:20:13I just basically looked online and rang up
0:20:13 > 0:20:16and made a few enquiries with some agents and things,
0:20:16 > 0:20:19did a bit of research and I thought, well, I was off,
0:20:19 > 0:20:20so I thought, I'll just go along.
0:20:20 > 0:20:22Oh, well, why not? I've got a bit of time.
0:20:22 > 0:20:24I just got a phone call while I was at work,
0:20:24 > 0:20:27saying that I'm going to an auction. And I thought, fair enough.
0:20:27 > 0:20:30She said, there's a few properties that I'm looking at.
0:20:30 > 0:20:32You know, we'll see how it goes.
0:20:32 > 0:20:34What are you going to do with it?
0:20:34 > 0:20:36Tell us what your plans are, to do with the property.
0:20:36 > 0:20:40Who is the brains behind changing it or renovating it?
0:20:40 > 0:20:42I think Saira is.
0:20:42 > 0:20:44He's the silent partner!
0:20:44 > 0:20:46LAUGHTER
0:20:46 > 0:20:48Literally, the silent partner, yeah!
0:20:48 > 0:20:50But, yes, I've got a few plans on.
0:20:50 > 0:20:53I'm thinking, one option is maybe just leave it as it is
0:20:53 > 0:20:56but obviously renovate it.
0:20:56 > 0:20:58Second option is to extend it.
0:20:58 > 0:21:01I feel that there is some space that could be used
0:21:01 > 0:21:03better in the garage and also above the garage,
0:21:03 > 0:21:06possibly extending there, just to increase the living room space.
0:21:06 > 0:21:09So, would you try and use the garage as, what?
0:21:09 > 0:21:10What would you change it to?
0:21:10 > 0:21:15With it being a detached family home, I'm just thinking of children
0:21:15 > 0:21:19and how feasible it is to come up all these flights of stairs.
0:21:19 > 0:21:22Maybe to put the front door in and have the main reception in there,
0:21:22 > 0:21:25and then have this as sort of the first floor.
0:21:25 > 0:21:28And, if we are going to convert the garage downstairs,
0:21:28 > 0:21:31then maybe make the staircase flow with this staircase, somehow.
0:21:31 > 0:21:33Sohan, tell me about the budget.
0:21:33 > 0:21:37What budget have you got for the turnaround of your new property?
0:21:37 > 0:21:39I think it depends on how much we end up doing.
0:21:39 > 0:21:43If it's just a matter of just doing the garage, and making everything
0:21:43 > 0:21:46look a bit nice, then we're talking maybe about ten grand.
0:21:46 > 0:21:49If we're thinking of extending forward a little bit,
0:21:49 > 0:21:51then obviously we need to account for that.
0:21:51 > 0:21:54But it's the Bank of Saira, really!
0:21:54 > 0:21:57Ha! I like that, I like that. And what is your first choice?
0:21:57 > 0:22:00Is it to renovate and make good, or to actually turn it round?
0:22:00 > 0:22:03What would your choices be? Maybe I'm asking the wrong person.
0:22:03 > 0:22:04Maybe I should ask the boss!
0:22:04 > 0:22:09Well...if we renovated it and we do get somebody interested to buy it
0:22:09 > 0:22:13I would prefer that option but I think it's going to be more
0:22:13 > 0:22:16realistic that we're going to do it up for rental, really.
0:22:16 > 0:22:18OK, and your timescales, what are you hoping
0:22:18 > 0:22:20and when are you hoping for it to be turned around?
0:22:20 > 0:22:23Well, if we're just going to renovate it as it is,
0:22:23 > 0:22:25probably about four weeks.
0:22:25 > 0:22:28If we're going to extend, then probably looking at
0:22:28 > 0:22:30about three to four months.
0:22:30 > 0:22:32If you're thinking about changing downstairs,
0:22:32 > 0:22:36what about up here, would you consider opening it up, maybe?
0:22:36 > 0:22:41Yes, possibly to make it into more sort of...open-plan.
0:22:41 > 0:22:44But I've not quite decided what we're going to do with that yet.
0:22:44 > 0:22:47And what about the balcony, cos from what I can see there's
0:22:47 > 0:22:50- maybe a possibility of extending onto the balcony?- Yes, definitely.
0:22:50 > 0:22:54I think it would be... It is a space that we could utilise better.
0:22:54 > 0:22:59The other option is maybe extending up another storey, as well.
0:22:59 > 0:23:02The bathroom upstairs is quite small. Whether we could extend...
0:23:02 > 0:23:06Do a double-storey extension on the garage
0:23:06 > 0:23:10- and maybe make it a bit more roomy upstairs, as well.- Wow. Great ideas.
0:23:10 > 0:23:12- Very good ideas, yeah. - I wish you luck.- Thank you.
0:23:12 > 0:23:15- I wish you more luck.- Thank you. - Good luck, I hope it works out.
0:23:15 > 0:23:16Cheers, thank you.
0:23:18 > 0:23:21Saira and Sohan have got lots of decisions to make.
0:23:21 > 0:23:24Will they move that staircase, will they utilise the garage,
0:23:24 > 0:23:27and will they actually build on that balcony?
0:23:27 > 0:23:30Lots of things to think about and they've got to stay within budget.
0:23:30 > 0:23:32You can find out how they get on later on in the programme.
0:23:32 > 0:23:36Still to come: In Forest Hill, London,
0:23:36 > 0:23:40these developers reveal the secret to their success.
0:23:40 > 0:23:43- Budget, budget... Budget.- Yeah.- Budget, budget.
0:23:45 > 0:23:49But in Oldham, for Sohan, the key to success is no secret.
0:23:49 > 0:23:51I'll leave her to it.
0:23:52 > 0:23:53Probably best.
0:24:02 > 0:24:06Time to get our cricket whites on again and return to Edgbaston,
0:24:06 > 0:24:10a suburb that lies just outside the city of Birmingham.
0:24:10 > 0:24:13Now, the auction catalogue said that the property
0:24:13 > 0:24:17I was about to see was a traditional mid-terrace three-bedroom house
0:24:17 > 0:24:20that had a guide price of £58,000.
0:24:20 > 0:24:23That, in the catalogue's own words, was,
0:24:23 > 0:24:28"In need of a thorough scheme of modernisation and improvement."
0:24:28 > 0:24:30And, you know, they weren't kidding.
0:24:31 > 0:24:33HE SCREAMS
0:24:34 > 0:24:35Right.
0:24:36 > 0:24:38Didn't expect that.
0:24:38 > 0:24:39Wow.
0:24:39 > 0:24:42# I'm telling you You'd better watch your step
0:24:42 > 0:24:46# You'll fall and hurt yourself One day. #
0:24:46 > 0:24:49Yes, for some reason someone had seen fit to rip up
0:24:49 > 0:24:51the flooring throughout the property.
0:24:51 > 0:24:53And, what's more, it was riddled with damp
0:24:53 > 0:24:56and there was no kitchen or bathroom in place.
0:24:56 > 0:24:59However, it was still pretty popular on auction day
0:24:59 > 0:25:03with it selling for £72,500.
0:25:04 > 0:25:06Sold at 72,500, thank you.
0:25:08 > 0:25:11The successful bidder was IT consultant Abu
0:25:11 > 0:25:15who hadn't seen the property or read the legal pack.
0:25:15 > 0:25:19In fact, he wasn't even planning on buying a house at all on the day.
0:25:20 > 0:25:24- I actually went to buy a car for my wife last week.- What?!- Yes.
0:25:26 > 0:25:30- The last two cars we bought for my wife have been from Derby.- Right.
0:25:30 > 0:25:33So, I went there to buy another car for her and...
0:25:33 > 0:25:38ended up at the auction. And next thing I know I've bought a house.
0:25:38 > 0:25:39What?!
0:25:40 > 0:25:44# I don't know what this world is coming to
0:25:44 > 0:25:46# I just can't rely on you
0:25:46 > 0:25:48# Just can't rely on you. #
0:25:48 > 0:25:53So, instead of a nice new car, Abu went home to tell his wife
0:25:53 > 0:25:57he'd instead bought a house that had no floors.
0:25:57 > 0:26:00Joking aside, Abu was a relative novice
0:26:00 > 0:26:02and had taken on a big project here.
0:26:02 > 0:26:05He planned to create another bedroom downstairs
0:26:05 > 0:26:07and rent the four bedrooms out separately.
0:26:07 > 0:26:11But his timescale of four to six weeks and his modest budget
0:26:11 > 0:26:15of £8,000-£10,000 to get it completed seemed a little bit ambitious to me.
0:26:20 > 0:26:21We've returned six months later
0:26:21 > 0:26:24with our fingers crossed to see how Abu has got on.
0:26:33 > 0:26:35Well, there are some beautiful new floors.
0:26:42 > 0:26:43And a dazzling new kitchen.
0:26:53 > 0:26:55Plus where there was once a dark,
0:26:55 > 0:26:59damp room there is now a bright, modern and fresh bathroom.
0:27:03 > 0:27:06Upstairs and the stunning transformation continues
0:27:06 > 0:27:09with three lovely bedrooms complementing the rest of the house.
0:27:20 > 0:27:24The work Abu has done here really is a breath of fresh air.
0:27:24 > 0:27:27I'm going to have to interrupt his little tour with nine-year-old
0:27:27 > 0:27:32daughter Lena to find out exactly what he has done and how it's been.
0:27:34 > 0:27:36Obviously I knew...
0:27:36 > 0:27:40concreting the flooring downstairs was the biggest task.
0:27:40 > 0:27:43Obviously, as I see, walk through the door when we first bought the house.
0:27:43 > 0:27:47Plastered the whole house top to bottom. Rewired the whole house.
0:27:49 > 0:27:52Couple of things which I hadn't planned for was to do
0:27:52 > 0:27:57the double-glazing so that was a hit I took, I'm quite pleased with.
0:27:57 > 0:28:00Looks a lot better now with the new double-glazing.
0:28:00 > 0:28:04Central heating, initially, I thought I could maybe use the old
0:28:04 > 0:28:07radiators and boilers etc but, bearing in mind the amount of work
0:28:07 > 0:28:11I was doing, it was as easy to rip it all up and put a new central heating.
0:28:11 > 0:28:14They are two big things I did which I hadn't originally planned for
0:28:14 > 0:28:16but I'm pleased I have done that
0:28:16 > 0:28:18because I think I'm happy with the results.
0:28:18 > 0:28:21He has every right to be happy.
0:28:21 > 0:28:24But one of the big issues here originally was the extensive damp.
0:28:24 > 0:28:26How was that tackled?
0:28:28 > 0:28:31One of the remedies was to make the roof a pitched roof,
0:28:31 > 0:28:37a new roof, to do that. We've actually put some damp course
0:28:37 > 0:28:42in there to make sure we don't get any dampness again etc.
0:28:42 > 0:28:45And we did that throughout the whole house.
0:28:45 > 0:28:49Those were things that, actually, you need to make sure you do
0:28:49 > 0:28:51before you start the renovation work etc
0:28:51 > 0:28:54cos the costs will go up if you have to come back and do that later.
0:28:54 > 0:28:56I was really concerned about Abu's original budget
0:28:56 > 0:29:00of 8,000-10,000 and he has done a lot more than he set out to.
0:29:01 > 0:29:03I looked at the...
0:29:03 > 0:29:06The double-glazing, the central heating, that added another 5,000.
0:29:06 > 0:29:09So, my total costs were 17,000.
0:29:09 > 0:29:12After that, if you take the 5,000 for the central heating, double-glazing,
0:29:12 > 0:29:15I'm probably off maybe a couple of grand what I should have been.
0:29:15 > 0:29:17Considering the transformation here,
0:29:17 > 0:29:20spending around 17,000 is pretty good in my book.
0:29:23 > 0:29:27The work itself has, in total, taken around 12 weeks,
0:29:27 > 0:29:30with holidays and issues with contractors taking their toll.
0:29:30 > 0:29:34And whilst Abu is no longer sure if he will rent or sell, there's only
0:29:34 > 0:29:39one question on my mind, has his wife, Asma, finally got her new car?
0:29:41 > 0:29:46I promised her once I've sold the property or rented it out
0:29:46 > 0:29:48she will have the car.
0:29:48 > 0:29:53And she's happy that I will eventually get her that car.
0:29:55 > 0:29:57Well, then, we'd better get on with it.
0:29:57 > 0:30:01With a total spend here of £89,500,
0:30:01 > 0:30:03Abu, and especially his wife,
0:30:03 > 0:30:06will be interested to hear the thoughts of two local estate agents.
0:30:06 > 0:30:09Starting with the agent who saw it originally.
0:30:09 > 0:30:12The biggest difference to the property is the damp
0:30:12 > 0:30:14that has been eradicated.
0:30:14 > 0:30:15And the floors are now in place,
0:30:15 > 0:30:18there were no floors the first time I came to the property.
0:30:18 > 0:30:20I think that the work's been carried out to a good standard,
0:30:20 > 0:30:22particularly the bathroom and the kitchen.
0:30:22 > 0:30:27The agents are suitably impressed but let's get down to the nitty-gritty -
0:30:27 > 0:30:29rental predictions first.
0:30:29 > 0:30:32For a three-bedroom property, I would anticipate a rental
0:30:32 > 0:30:35income of £550 per calendar month.
0:30:35 > 0:30:39If we were to rent the property as a three-bedroom mid-terrace,
0:30:39 > 0:30:44we would expect to achieve approximately £550 per calendar month.
0:30:46 > 0:30:49That figure would give Abu, on his total investment
0:30:49 > 0:30:54of £89,500, a yield of just over 7%.
0:30:54 > 0:30:58Now, Abu thought the location of this house near a hospital meant
0:30:58 > 0:31:02that renting it out on a room-by-room basis might be a good option.
0:31:02 > 0:31:06Remember, he would have to comply with HMO regulations.
0:31:06 > 0:31:09The rooms could rent for £50 a week for each room
0:31:09 > 0:31:13which could mean a monthly income of £800.
0:31:13 > 0:31:14What about resale valuations?
0:31:17 > 0:31:19I would anticipate that the property would achieve
0:31:19 > 0:31:23around £105,000 with a marketing price of 110.
0:31:23 > 0:31:29I would market the property at £115,000
0:31:29 > 0:31:31in order to achieve
0:31:31 > 0:31:35anywhere from £105,000-£110,000.
0:31:35 > 0:31:39Originally, my first reaction was as long as I break even I'd be happy
0:31:39 > 0:31:42cos I bought this project to learn.
0:31:42 > 0:31:44So, yeah, I mean, yeah.
0:31:44 > 0:31:47I think... I had 100,000 as a guide price myself,
0:31:47 > 0:31:50so anything above that is a bonus for me.
0:31:50 > 0:31:54A top valuation of 110,000 would mean a pre-tax profit
0:31:54 > 0:31:59of £20,500 for Abu which is a great achievement
0:31:59 > 0:32:02considering how this property once looked.
0:32:02 > 0:32:05And I think Abu's wife may well have a smile on her face, too.
0:32:15 > 0:32:19Forest Hill in south-east London is a very desirable area
0:32:19 > 0:32:22with good transport links and lovely views over London
0:32:22 > 0:32:26because it is, as you would expect, on a hill.
0:32:26 > 0:32:28# Be running up that road
0:32:28 > 0:32:30# Be running up that hill. #
0:32:30 > 0:32:34Well, what I'm looking to view is described in the auction catalogue
0:32:34 > 0:32:38as a former garage workshop site
0:32:38 > 0:32:43of approximately 0.18 acres with planning permission implemented
0:32:43 > 0:32:51for seven two-bedroom properties and a guide price of £600,000 plus.
0:32:51 > 0:32:53It all sounds very intriguing,
0:32:53 > 0:32:56really and it's just at the end of this lane.
0:32:56 > 0:32:59# There will be good times ahead
0:32:59 > 0:33:03# So just hold on
0:33:03 > 0:33:07# Cos there will be good times ahead. #
0:33:07 > 0:33:11And that guide price of £600,000 may sound a lot
0:33:11 > 0:33:14but for this area, and with planning permission already agreed,
0:33:14 > 0:33:18it actually sounds like a bit of a potential bargain to me.
0:33:19 > 0:33:22Yep, you could say this site has got my attention.
0:33:24 > 0:33:28Well, just have a look at this, wow, what a plot!
0:33:28 > 0:33:30Now, here's a bit of history for you.
0:33:30 > 0:33:34I know this used to be the stables to an old coaching inn,
0:33:34 > 0:33:36back in the early 1800s.
0:33:36 > 0:33:40When people were travelling by horse and carriage they would stay
0:33:40 > 0:33:45at the inn and their horses would be stabled for the night right here.
0:33:45 > 0:33:48You can see now it's been used for other things over the years
0:33:48 > 0:33:51from garages to workshops to offices.
0:33:51 > 0:33:54You can see it's run down and it's just ready to have
0:33:54 > 0:33:56some new life breathed into it.
0:33:58 > 0:34:00Well, at the moment it's all looking rather tired
0:34:00 > 0:34:03and is serving as an elaborate pigeon loft.
0:34:03 > 0:34:07# Like birds of a feather. #
0:34:09 > 0:34:11So, what have we actually got here?
0:34:11 > 0:34:14Well, we might have a lot of history
0:34:14 > 0:34:16but we've also got a lot of problems.
0:34:16 > 0:34:18Just have a look at that roof.
0:34:18 > 0:34:21Now, the good news is that although it's in a conservation area,
0:34:21 > 0:34:26permission has been granted to pull this whole building down.
0:34:26 > 0:34:31But whatever is built in its place has to be sympathetic to the area, obviously.
0:34:33 > 0:34:37Being in a conservation area adds to the site's desirability
0:34:37 > 0:34:41but for developers it means an awful lot of red tape.
0:34:41 > 0:34:43As this already has planning permission, the hard work
0:34:43 > 0:34:46has been done for you and well, you're good to go.
0:34:47 > 0:34:54So, what has been granted are four two-bed town houses,
0:34:54 > 0:34:59all the way along here with garages underneath and along here
0:34:59 > 0:35:04three two-storey two-bedroom houses with assigned parking spaces.
0:35:04 > 0:35:07So, it will still pretty much be in this lovely L-shape
0:35:07 > 0:35:09set-back from the road.
0:35:09 > 0:35:13Now, the slight negative, for me, is the garage that was here
0:35:13 > 0:35:20is now just over here and access is along this driveway here.
0:35:20 > 0:35:23Let's just hope that revving is kept to a minimum.
0:35:25 > 0:35:28# Here in my car I feel safest of all
0:35:28 > 0:35:30# I can lock all my doors
0:35:30 > 0:35:34# It's the only way to live In cars. #
0:35:35 > 0:35:38Sounds like the planned houses will be family houses
0:35:38 > 0:35:41so we don't want cars in and out if kids are running around.
0:35:41 > 0:35:44Plus, if I'm nit-picking, it looks like the area is under
0:35:44 > 0:35:47a pretty noisy flight path which is never popular.
0:35:47 > 0:35:49But who am I kidding, this site, with a guide price
0:35:49 > 0:35:54of £600,000, could be a great prospect in the right hands.
0:35:54 > 0:35:57So, let's see if a local estate agent agrees with me.
0:36:01 > 0:36:05First impressions of the development are very good opportunities.
0:36:05 > 0:36:08The type of houses they're going to put here are going to be
0:36:08 > 0:36:11easily sellable at the right price with the way
0:36:11 > 0:36:15the market's going at the moment. They should command a sensible value.
0:36:15 > 0:36:20So, let's hear what the predicted valuations of the planned properties are.
0:36:20 > 0:36:23I think for the two-bed town house, I think you're looking
0:36:23 > 0:36:27in the region of around £575,000-£600,000
0:36:27 > 0:36:29and I think for the normal two-beds,
0:36:29 > 0:36:33I think you're looking in the region of £525,000-£550,000.
0:36:33 > 0:36:36Wow! Right, time to get the sums worked out, then.
0:36:36 > 0:36:43So, for the two-bed town houses it's £600,000, that's 2,400,000.
0:36:43 > 0:36:48Add on three two-storey houses at 550,000 and that's...
0:36:48 > 0:36:49blimey!
0:36:49 > 0:36:54I make that just over four million quid in terms of house sales.
0:36:55 > 0:36:57Now, of course, there's the demolition costs,
0:36:57 > 0:37:00the build costs and the fees and all that stuff.
0:37:00 > 0:37:03So not quite time to start counting your chickens
0:37:03 > 0:37:05or, in this case, pigeons, just yet.
0:37:05 > 0:37:08But this is looking like a very desirable prospect.
0:37:11 > 0:37:14This is a site set back from the road in a great location,
0:37:14 > 0:37:16ripe for development,
0:37:16 > 0:37:18but it needs an experienced developer
0:37:18 > 0:37:22to bring this tired old building back into the 21st-century.
0:37:22 > 0:37:24So who could see the wood for the trees
0:37:24 > 0:37:26with this Forest Hill development?
0:37:26 > 0:37:29Let's see when it went under the hammer.
0:37:31 > 0:37:34Fantastic lot, this. Great, great opportunity for somebody.
0:37:34 > 0:37:35Great development opportunity.
0:37:35 > 0:37:37What a great lot.
0:37:37 > 0:37:39- Who wants to give me a start on this?- One million.
0:37:39 > 0:37:41Thank you.
0:37:41 > 0:37:44That's what I like, somebody who knows the value. A million pounds.
0:37:44 > 0:37:47So I've got £1 million straight ahead.
0:37:48 > 0:37:50Anybody else?
0:37:50 > 0:37:51Million ten - yes?
0:37:51 > 0:37:53Million ten. Million twenty.
0:37:53 > 0:37:57'Well, with the very first bid, the guide price is smashed
0:37:57 > 0:37:59'and the auction room is buzzing.
0:37:59 > 0:38:03'We return with the bidding at £1.4 million!'
0:38:03 > 0:38:051.4,
0:38:05 > 0:38:08410, 420, no?
0:38:08 > 0:38:13It's back to you, sir. Bid - £1,410,000.
0:38:13 > 0:38:15It's against the gentleman on my left by the door.
0:38:15 > 0:38:17Anybody?
0:38:17 > 0:38:20You're back in, yeah? 420, 430,
0:38:20 > 0:38:23440, 450,
0:38:23 > 0:38:25460,
0:38:25 > 0:38:27yes or no? 460?
0:38:27 > 0:38:32If not, £1,450,000 for the first...
0:38:33 > 0:38:37£1,450,000 for the second...
0:38:38 > 0:38:44£1,450,000 for the third and final time...
0:38:44 > 0:38:45Are we all done?
0:38:46 > 0:38:49Sold - £1,450,000.
0:38:49 > 0:38:50Well bid.
0:38:50 > 0:38:53MUSIC: Eye Of The Tiger by Survivor
0:38:55 > 0:39:00That final knockout blow of £1,450,000,
0:39:00 > 0:39:03which was over twice the original guide price,
0:39:03 > 0:39:07belonged to ex-boxer and experienced property developer Mark.
0:39:07 > 0:39:11Joined by 17-year-old son Max and business partner and colleague Johnny,
0:39:11 > 0:39:15Mark is looking forward to stepping into the ring with this property.
0:39:15 > 0:39:19But first, him and Johnny will have to go a few rounds with me.
0:39:19 > 0:39:23So I want to know all the back story. Whose idea was this?
0:39:23 > 0:39:24Who's bought this?
0:39:24 > 0:39:27Were you happy with the money you paid? Mark?
0:39:27 > 0:39:30Yeah, um... Well, the back story is we just...
0:39:30 > 0:39:32We had a site in planning
0:39:32 > 0:39:36in another location over in Crystal Palace and it got refused.
0:39:36 > 0:39:39So we was a bit desperate to find something quickly to get work on.
0:39:39 > 0:39:42You and Johnny were both there on auction day.
0:39:42 > 0:39:44Guys, did you expect to win the bid?
0:39:44 > 0:39:47- Did you expect to pay what you paid? Johnny?- Yeah.
0:39:47 > 0:39:52I think Mark went there very focused, had a figure in mind.
0:39:52 > 0:39:56I think he knew the value of the potential for development
0:39:56 > 0:40:00and went in there with a bar to set, really.
0:40:00 > 0:40:04Well, we went there to buy the site, not to mess around.
0:40:04 > 0:40:07Hence the reason, you know, we went in there,
0:40:07 > 0:40:08opened the bidding higher.
0:40:08 > 0:40:10That wasn't arrogance, that was confidence -
0:40:10 > 0:40:12I'm going there to buy this deal.
0:40:12 > 0:40:15So anyone who wants to start going five, five, five,
0:40:15 > 0:40:16please, move out of the way
0:40:16 > 0:40:19because, quite frankly, I'm going to buy this deal.
0:40:19 > 0:40:21I know that sounds overconfident,
0:40:21 > 0:40:23but if I didn't buy that deal, we wouldn't have any work.
0:40:23 > 0:40:25So it was a matter of...
0:40:26 > 0:40:27..it's got to be done.
0:40:27 > 0:40:30Are you a developer? How many of these have you done before?
0:40:30 > 0:40:32For how long have you been developing?
0:40:32 > 0:40:35I've been a developer since I was about 25, 27...
0:40:36 > 0:40:40So... I'm 43 now.
0:40:40 > 0:40:44- So, yeah, a long time. - So you've seen the highs and lows over the last few years?- Yes.
0:40:44 > 0:40:46- Very much so.- But you've stuck by each other.
0:40:46 > 0:40:49So, Johnny, you've been working with Mark as a project manager?
0:40:49 > 0:40:51- Yes.- For how many years?
0:40:51 > 0:40:55Coming onto seven now, it's over six years, I think.
0:40:55 > 0:40:59'Well, with bags of experience to go along with Mark's bags of confidence,
0:40:59 > 0:41:03'it seems to me this site couldn't be in better hands.
0:41:03 > 0:41:05'But will they stick to the agreed plans
0:41:05 > 0:41:07'or do they have other ideas?'
0:41:09 > 0:41:13Yeah, it's got planning for seven two-bed houses at the moment, which...
0:41:13 > 0:41:16There's a price on it, which is a fair price.
0:41:16 > 0:41:18We could do very well out of it.
0:41:18 > 0:41:21But my gain and my speciality
0:41:21 > 0:41:24is gaining upon planning permission.
0:41:24 > 0:41:27So, basically, because plans were given in 2006,
0:41:27 > 0:41:30I'd like to look at how I can build upon that.
0:41:30 > 0:41:33Look at the London Guide, and see how that's changed,
0:41:33 > 0:41:36look at what's been built around just recently since then.
0:41:36 > 0:41:38So when you're thinking about it, whoa! Hang on!
0:41:38 > 0:41:41We could get another floor on here, make these four beds.
0:41:41 > 0:41:44So when you're looking at two beds which would probably be 600-650,
0:41:44 > 0:41:46or something, and you're looking at four beds,
0:41:46 > 0:41:49- you're then talking about £1 million a house.- Sounds fantastic.
0:41:49 > 0:41:53I'm really excited to see it. Johnny, how long do you think you're going to be on site for?
0:41:53 > 0:41:55- How long is this project going to... - Too long!
0:41:55 > 0:41:58He said that without his mouth moving!
0:41:58 > 0:42:02It's estimated at the moment around about 12 months, 11-12 months.
0:42:02 > 0:42:06And if you're not clocking in on time, have you got him on your back?
0:42:06 > 0:42:09- Yeah. - HE CHUCKLES
0:42:09 > 0:42:10Budget, budget, budget...
0:42:10 > 0:42:12Budget... Budget...
0:42:12 > 0:42:14Come on, then. How much is the budget?
0:42:14 > 0:42:16The budget on this is about...
0:42:16 > 0:42:18It will be, depending on what we get...
0:42:18 > 0:42:21Now, if we have the two beds built and we get rejected,
0:42:21 > 0:42:24there's nowhere we're going to get even more,
0:42:24 > 0:42:25we've got a fallback scheme to build upon.
0:42:25 > 0:42:28So, upon that, it would be about 1.5 to 1.6.
0:42:28 > 0:42:32If we get the four beds, it's going to be another £500,000 on top.
0:42:32 > 0:42:35So you could be potentially looking at a two million quid budget?
0:42:35 > 0:42:37About two to 2.1, yes.
0:42:37 > 0:42:41- On top of already having paid 1.4. - Yes, that's right.
0:42:41 > 0:42:44# It pays big money
0:42:44 > 0:42:46# If you're willing to take a chance. #
0:42:49 > 0:42:51That means, along with the purchase price,
0:42:51 > 0:42:56they could potentially be investing a total of roughly £3.5 million on this site,
0:42:56 > 0:42:59which is a pretty eye watering amount for anyone.
0:42:59 > 0:43:02But, for Mark, property developing isn't his only passion.
0:43:06 > 0:43:08So what did you do before developing?
0:43:08 > 0:43:12I was a boxer at the Fitzroy Lodge when I was growing up, in Lambeth.
0:43:12 > 0:43:15And I boxed there for quite a few years
0:43:15 > 0:43:17and won the ABA London Championships.
0:43:17 > 0:43:20And... So the thing about boxing,
0:43:20 > 0:43:24I've always had that winning determination.
0:43:24 > 0:43:26# I get knocked down and I get up! #
0:43:26 > 0:43:28So you have to! You have to keep going, it's true.
0:43:28 > 0:43:31No matter through the session or whatever it is,
0:43:31 > 0:43:33you've got to keep going. It keeps you focused, good for you.
0:43:33 > 0:43:35Guys, I've loved meeting you today.
0:43:35 > 0:43:38It's been such fun and I'm really pleased you got this.
0:43:38 > 0:43:40And, good luck with the project.
0:43:40 > 0:43:42- Let's hope you get that third floor! Well done.- Thank you.
0:43:42 > 0:43:45- Mark, Johnny.- Thank you.- Lovely.
0:43:45 > 0:43:48Well, Mark and Johnny certainly appear to be boxing clever.
0:43:48 > 0:43:51The extra floor will certainly bring in extra money,
0:43:51 > 0:43:53but will it pass planning
0:43:53 > 0:43:56or will their plans be knocked out of the ring?
0:43:56 > 0:44:00You can find out how the boys get on later in the programme...
0:44:03 > 0:44:06Well, we've seen how one of today's properties turned out.
0:44:06 > 0:44:09- What about the rest? - Has all the work been done?
0:44:09 > 0:44:11I think we should have a look.
0:44:15 > 0:44:19Back to Greater Manchester and the town of Oldham now, where,
0:44:19 > 0:44:21earlier in the show,
0:44:21 > 0:44:24I took a look around this good size detached family house,
0:44:24 > 0:44:27complete with garage, driveway and an overgrown garden.
0:44:28 > 0:44:31Inside it was in good shape, too,
0:44:31 > 0:44:33with three decent-sized bedrooms upstairs
0:44:33 > 0:44:35and a nice layout downstairs.
0:44:38 > 0:44:42However, this property did have something of a sting in its tail.
0:44:42 > 0:44:43Don't try and deal with it yourself.
0:44:43 > 0:44:47Get in touch with your local council and they will send someone out
0:44:47 > 0:44:49from their Pest Control department to deal with it for you.
0:44:56 > 0:45:00Dentist Saira managed to buy the property for £80,000,
0:45:00 > 0:45:02just 5,000 over the guide price,
0:45:02 > 0:45:05so she certainly wasn't stung.
0:45:05 > 0:45:09Maybe it was her good luck charm seven-year-old daughter Alina.
0:45:09 > 0:45:11It was Saira and her husband Sohan
0:45:11 > 0:45:13that I met at the house
0:45:13 > 0:45:16and it soon became clear who was going to be in charge.
0:45:16 > 0:45:18Who's the brains behind changing it all?
0:45:18 > 0:45:20Or renovating it?
0:45:20 > 0:45:21I think...Saira is.
0:45:21 > 0:45:24We like to say he's a silent partner...
0:45:24 > 0:45:26- That doesn't surprise me. - Literally silent partner.
0:45:26 > 0:45:29But, um, I've got a few plans on.
0:45:29 > 0:45:34I'm thinking one option is, maybe, just leave it as it is,
0:45:34 > 0:45:36but obviously renovate it.
0:45:36 > 0:45:37Second option is to extend it.
0:45:37 > 0:45:40I feel that there's some space that could be used better
0:45:40 > 0:45:42in the garage and also above the garage,
0:45:42 > 0:45:44which...possibly extending there,
0:45:44 > 0:45:47just to increase the living room space.
0:45:47 > 0:45:50So, depending on what Saira decided to do,
0:45:50 > 0:45:53she had a timescale of anywhere between four weeks and four months
0:45:53 > 0:45:56and a budget of £10,000
0:45:56 > 0:45:58for the simpler renovation plans.
0:46:01 > 0:46:04It's now six months later
0:46:04 > 0:46:06and on the outside, at first glance,
0:46:06 > 0:46:09there doesn't seem to be any extension.
0:46:09 > 0:46:12But let's step inside and see what changes have been made.
0:46:25 > 0:46:28So they plumped for the simple renovation in the end,
0:46:28 > 0:46:31with re-plastered walls throughout the property,
0:46:31 > 0:46:35and an elegant colour scheme that is ideal for rental or the sales market.
0:46:40 > 0:46:43Upstairs and the bedrooms that had bold feature walls
0:46:43 > 0:46:46have all been replastered and repainted.
0:46:54 > 0:46:57And I'm glad to report that in the brand-new bathroom suite,
0:46:57 > 0:47:00any sign of those nasty pests have buzzed off.
0:47:05 > 0:47:08Perhaps the biggest change here is in the back garden,
0:47:08 > 0:47:11which has gone from wild and overgrown to trimmed and tidy.
0:47:15 > 0:47:19Saira and family have chosen to keep to a simple renovation plan.
0:47:19 > 0:47:23So how did she come to decide against building an extension?
0:47:23 > 0:47:26I initially called a few agents round to have a look at the property.
0:47:28 > 0:47:30They basically advised me against extending,
0:47:30 > 0:47:34saying that it would hit the ceiling price for the area, so that's why.
0:47:34 > 0:47:36We were going to extend the garage
0:47:36 > 0:47:39and make it into a lower floor, but we decided against it
0:47:39 > 0:47:43because we didn't think it would make any more money on the property.
0:47:44 > 0:47:47A big part of property renovation is doing your research
0:47:47 > 0:47:49and listening to the experts.
0:47:49 > 0:47:52There's no point in spending lots of time and money
0:47:52 > 0:47:54on extensions and such
0:47:54 > 0:47:57if it won't be reflected in the eventual valuation of the property.
0:47:59 > 0:48:02So there are no flies on Saira.
0:48:02 > 0:48:04But what about wasps?
0:48:04 > 0:48:07We did have a wasp nest and the wasps actually died,
0:48:07 > 0:48:09but the wasp nest had be removed.
0:48:09 > 0:48:11So we had to get Pest Control in to remove it.
0:48:11 > 0:48:15It was a bit unpleasant to have it around, but other than that, not a problem.
0:48:15 > 0:48:16I'm glad to hear it.
0:48:16 > 0:48:19Wasps can present a real hazard.
0:48:19 > 0:48:22But, with the work complete, how long has it actually taken?
0:48:22 > 0:48:24We are six months on.
0:48:24 > 0:48:27In terms of actual time of doing work,
0:48:27 > 0:48:31I think most things wouldn't take more than about a month to do.
0:48:31 > 0:48:33But it's just because everything has been stop-start
0:48:33 > 0:48:35and we've been so busy with work ourselves
0:48:35 > 0:48:37that it's just taken so long.
0:48:37 > 0:48:41The budget originally was £10,000 and we thought
0:48:41 > 0:48:44we could possibly convert the garage within that price.
0:48:44 > 0:48:49However, after getting estimates it was more like £25,000
0:48:49 > 0:48:51to do the conversion and extension.
0:48:51 > 0:48:55So that's why we just did a cosmetic makeover and the budget,
0:48:55 > 0:48:59so far, is £6447.96.
0:49:02 > 0:49:06Well, if I round that up to £6,500,
0:49:06 > 0:49:09along with the purchase price of £80,000,
0:49:09 > 0:49:13they've invested a total of £86,500.
0:49:13 > 0:49:17And with the couple leaning toward selling rather than renting,
0:49:17 > 0:49:19it would be interesting to hear the thoughts
0:49:19 > 0:49:21of two local estate agents.
0:49:21 > 0:49:24The work's been carried out to a very high standard throughout.
0:49:24 > 0:49:27I think it was certainly the right decision not to extend the property.
0:49:27 > 0:49:31With the three bedrooms, it's certainly in keeping with the local area.
0:49:31 > 0:49:36I believe it would be suitable for the sales market,
0:49:36 > 0:49:39however I do think there would be a rental demand, as well.
0:49:39 > 0:49:43Well, with that in mind, let's hear valuations with the rental first.
0:49:43 > 0:49:46For rental, I would expect this property to achieve
0:49:46 > 0:49:49somewhere in the region of £575 per calendar month.
0:49:49 > 0:49:52I would think the rental price would be
0:49:52 > 0:49:56between £575 per calendar month
0:49:56 > 0:49:58to £600 per calendar month.
0:49:58 > 0:50:02The rental figures sound really appealing.
0:50:02 > 0:50:05Yes, but I think we've made our decision that we plan to sell.
0:50:05 > 0:50:07- Yes, I think so.- I agree with that.
0:50:08 > 0:50:12So despite a rental yield of around 8%,
0:50:12 > 0:50:14the couple are set on selling.
0:50:14 > 0:50:16If this property was placed on the market,
0:50:16 > 0:50:20I would expect it to achieve in the region of £135,000.
0:50:20 > 0:50:24I would estimate the sale price to be around...
0:50:24 > 0:50:26£140,000.
0:50:26 > 0:50:28- Wow!- That's really good.
0:50:28 > 0:50:32I think they're amazing. It's what we kind of expected...
0:50:32 > 0:50:34So... I'm really pleased with that.
0:50:34 > 0:50:36Really good, considering. Very good.
0:50:36 > 0:50:38Get in!
0:50:38 > 0:50:41That top figure would mean a potential pre-tax profit
0:50:41 > 0:50:44of £53,500,
0:50:44 > 0:50:48justifying their decision to keep the renovation simple.
0:50:48 > 0:50:52So with this success, will they be heading back to the auction house?
0:50:53 > 0:50:56I would definitely buy another property in auction.
0:50:56 > 0:51:00Probably lessen my workload to accommodate it, though.
0:51:00 > 0:51:02What about you?
0:51:02 > 0:51:03I'll leave her to it.
0:51:04 > 0:51:06Probably best!
0:51:15 > 0:51:17Back to south-east London now
0:51:17 > 0:51:19and the leafy area of Forest Hill.
0:51:20 > 0:51:24It was here that I looked around what the auction catalogue described
0:51:24 > 0:51:27as a former garage workshop site.
0:51:27 > 0:51:29It covered 0.18 acres
0:51:29 > 0:51:32and had a guide price of £600,000 plus.
0:51:32 > 0:51:35But most interestingly of all,
0:51:35 > 0:51:38it already had planning permission for seven two-bed properties.
0:51:40 > 0:51:42You can see it's rundown
0:51:42 > 0:51:45and it's just ready to have some new life breathed into it.
0:51:50 > 0:51:53The bidders on auction day really slugged it out for this one,
0:51:53 > 0:51:55with the opening bid of £1 million
0:51:55 > 0:52:00and the eventual winning bid of 1.45 million quid
0:52:00 > 0:52:05both belonging to experienced property developer and ex-boxer, Mark.
0:52:05 > 0:52:08Sold, £1,450,000.
0:52:08 > 0:52:10Well bid.
0:52:10 > 0:52:12# I'm gonna knock you out!
0:52:12 > 0:52:14# Momma said, "Knock you out!"
0:52:14 > 0:52:15# Breakdown! #
0:52:15 > 0:52:18Along with the project manager and friend Johnny,
0:52:18 > 0:52:20this property developing pugilist
0:52:20 > 0:52:22wasn't in the mood to pull any punches
0:52:22 > 0:52:25for the opportunity to buy this site.
0:52:25 > 0:52:29Well, we went there to buy the site, not to mess around.
0:52:29 > 0:52:33Hence the reason, you know, we went in there, opened the bidding higher.
0:52:33 > 0:52:35That wasn't arrogance, that was confidence.
0:52:35 > 0:52:40I'm going there to buy this deal, so anyone who wants to start going five, five, five,
0:52:40 > 0:52:42please, move out the way,
0:52:42 > 0:52:45because, quite frankly, I'm going to buy this deal.
0:52:45 > 0:52:47Buy the deal he certainly did.
0:52:47 > 0:52:51And despite having plans approved for seven two-bed houses on the site,
0:52:51 > 0:52:53Mark had greater ambitions.
0:52:53 > 0:52:56I bet, knowing you, you are going to tweak it and change it, aren't you?
0:52:56 > 0:52:59We could get another floor in here and make these four-beds.
0:52:59 > 0:53:01So when you are looking at two-beds,
0:53:01 > 0:53:03which would probably be 600-650 or something,
0:53:03 > 0:53:04and you're looking at four-beds,
0:53:04 > 0:53:07you're then talking about £1 million per house.
0:53:07 > 0:53:10Mark's big plans meant big budget,
0:53:10 > 0:53:13and he hoped to get this done for around £2 million.
0:53:13 > 0:53:15And Johnny, as the project manager,
0:53:15 > 0:53:18had earmarked a timescale of around 12 months.
0:53:23 > 0:53:26We've come back 11 months later to see how Johnny and Mark have got on.
0:53:47 > 0:53:50Well, it may be a building site, but they've made real progress here,
0:53:50 > 0:53:54with the timber frames of several buildings complete.
0:53:54 > 0:53:57The old dilapidated garages and offices are long gone
0:53:57 > 0:54:02and I am pleased to report that Mark was able to negotiate a change to the original plans,
0:54:02 > 0:54:06as project manager, Johnny, explains.
0:54:06 > 0:54:09Well, the new plans that we got passed,
0:54:09 > 0:54:14in comparison to the original planning consent,
0:54:14 > 0:54:17allowed us to gain an extra storey
0:54:17 > 0:54:19onto the whole development.
0:54:19 > 0:54:22So what that's actually going to give us now
0:54:22 > 0:54:25is six four-storey, three-bedroomed houses
0:54:25 > 0:54:28with a seventh three-storey, two-bedroomed house.
0:54:30 > 0:54:35Quite a change to the original plans of seven two-bed houses then.
0:54:35 > 0:54:37And since we last saw Mark and Johnny,
0:54:37 > 0:54:39they've got a lot busier,
0:54:39 > 0:54:42with Johnny having to enlist the help of Pat here to run the site.
0:54:42 > 0:54:46Indeed, they became so busy, Mark was unable to attend today,
0:54:46 > 0:54:49so it's up to his right-hand man to fill us in.
0:54:49 > 0:54:52Since we last saw you, a lot has gone on.
0:54:52 > 0:54:57Obviously, you can see the timber frame behind me now.
0:54:57 > 0:55:00We've done, obviously, all of our ground works, footings,
0:55:00 > 0:55:03drainage, run our service ducts,
0:55:03 > 0:55:06getting everything prepared for the timber frame to be built
0:55:06 > 0:55:08on top of the block and beam floor.
0:55:08 > 0:55:12We've got all of our trades lined up - roofers are in next
0:55:12 > 0:55:14and then all of our internal trades.
0:55:14 > 0:55:17We've sort of maximised the development.
0:55:17 > 0:55:20We're still keeping it in context with the surrounding area.
0:55:20 > 0:55:24There's some big properties up and around this area.
0:55:24 > 0:55:27We feel we've got a good result.
0:55:27 > 0:55:30All seems to be going to plan, but I'm not surprised.
0:55:30 > 0:55:33It was obvious that Mark had a very, very clear idea
0:55:33 > 0:55:35of what he wanted.
0:55:35 > 0:55:37So how have things been going?
0:55:37 > 0:55:38Very good, yes.
0:55:38 > 0:55:41He's been, sort of, obviously
0:55:41 > 0:55:44heavily involved with the planning side of things
0:55:44 > 0:55:47and the design, which we're still looking at now.
0:55:47 > 0:55:49But, yes, it's great.
0:55:51 > 0:55:53So everything is coming on nicely.
0:55:53 > 0:55:56But thanks to the planning process taking three months,
0:55:56 > 0:55:58the timeframe has changed.
0:56:02 > 0:56:06We've been here for about 11 months, I believe,
0:56:06 > 0:56:10with another six months, five to six months to complete.
0:56:11 > 0:56:16With Mark and Johnny very confident of selling all the properties possibly off-plan,
0:56:16 > 0:56:19it will be interesting to hear the opinions of a local expert at this point in the build.
0:56:21 > 0:56:24Remember, along with the purchase price, the investment figure
0:56:24 > 0:56:27is around a whopping £3.5 million.
0:56:28 > 0:56:32The design of the development is well suited for the area.
0:56:32 > 0:56:35The traditional London stock brickwork
0:56:35 > 0:56:39complements the surrounding Victorian properties
0:56:39 > 0:56:41and adds the characteristic
0:56:41 > 0:56:43of a traditional new-style development
0:56:43 > 0:56:45that you'd see in central London.
0:56:45 > 0:56:48And, yes, the demand is very high for this location,
0:56:48 > 0:56:52as we are seeing south-east London becoming a lot more popular,
0:56:52 > 0:56:55where the prices in London generally are a lot more affordable.
0:56:55 > 0:56:58It sounds like once complete, or even before,
0:56:58 > 0:57:01these properties will be snapped up.
0:57:01 > 0:57:05What kind of values are we talking about for the six three-bedroom houses
0:57:05 > 0:57:07and the single two-bed house?
0:57:07 > 0:57:11The two-bedroom property will sell in the region of £900,000.
0:57:11 > 0:57:15The three-bedroom properties will sell in the region of
0:57:15 > 0:57:17£1 million - £1.25 million.
0:57:17 > 0:57:20MUSIC: Doowutchyalike by Digital Underground
0:57:22 > 0:57:24Hold on to your hats.
0:57:24 > 0:57:27If they were able to achieve the top estimates there
0:57:27 > 0:57:29and sell all the properties,
0:57:29 > 0:57:32that would equate to £8.4 million.
0:57:32 > 0:57:34That, well, is just staggering!
0:57:37 > 0:57:40However, the project isn't finished yet
0:57:40 > 0:57:44and five to six months can be a very long time in developing,
0:57:44 > 0:57:47although Johnny can't help but look ahead a little.
0:57:48 > 0:57:50I'm expecting the houses to look great,
0:57:50 > 0:57:53really high-quality to a very high standard finish,
0:57:53 > 0:57:56which is what we pride ourselves on.
0:57:56 > 0:57:59Yeah, I'm expecting them to be a head turner
0:57:59 > 0:58:01and people are going to be pleasantly surprised.
0:58:04 > 0:58:07Well, more property owners there who took the plunge and bought at auction.
0:58:07 > 0:58:10Were you inspired to become one of them?
0:58:10 > 0:58:13Make sure you join us next time for more Homes Under The Hammer.
0:58:13 > 0:58:16- See you, then.- Goodbye.- Bye.- Bye.