Episode 29 Homes Under the Hammer


Episode 29

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Transcript


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Hello and welcome to the show.

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Everybody has the idea of their dream home.

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Is it a cool city pad or somewhere in the country, nice and quiet?

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Hmmm, I'd like one of each of those, please.

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But your dream could be to build your own home from scratch, perhaps.

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Yes, whatever you're looking for,

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maybe it's just waiting for you to find it

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under the hammer.

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Now, buying at auction can be very daunting but getting

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something at the right price, well, it certainly makes up for it.

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Yes, so who placed the winning bids and what did they buy

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on today's show?

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I'm intrigued, I think we should find out.

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Have the buyers at this Gravesend terrace got their priorities sorted?

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It was local and it's near the pub.

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And there's no doubt what's top of the list at this

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northwest London property.

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-Coffee's an important thing for staff.

-Absolutely!

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And in Derbyshire the important things are shelter,

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warmth and an inside loo.

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And, yes, the inside toilet. Get in!

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All these properties have been sold at auction. We'll find

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out who bought them and what they paid when they went

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under the hammer.

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It's yours, sir. Well done.

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We're off to the bustling Kent town of Gravesend to see

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a property that I first visited in April 2014.

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It was an end terrace two-bedroom house for sale at auction,

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guided at 115-125,000.

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With the front door out of action, I got in through the basement.

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Dusty, dirty, damp, just a few words that spring to mind

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in the first room I walk in.

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Yeah, a bit of a disappointment, actually. Not a great space

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and, it's clear to see, a lot of work will be done.

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Now, you expect basements to be dingy and dark

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but this really is something else.

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A kitchen which harks back to many moons ago,

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so all of this needs to be completely updated,

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it's filthy as well.

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And up here, what have we got?

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A little half-landing and a loo out the back.

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I'm going to investigate further.

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'So my first impressions were really not that great.

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'This property felt a little unloved.'

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There was that small loo on the landing but then on the ground

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floor there was a pretty good-sized bathroom, minus a toilet.

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Hello? There had obviously been a major falling out -

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common sense would say, "Get them back together in the same room."

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# Hello, is it me you're looking for. #

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The lounge on the ground floor was also a decent size

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and on the first floor, two generous bedrooms completed the tour.

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Now, I usually pride myself on straight talking but this house

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soon had me off on a tangent.

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It's almost as if this house is slightly on the wonk,

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a little bit lopsided even though it's not, it's structurally sound.

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But if you look down here, you know, it's very angular.

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It's almost as if there's a triangle there, but not quite.

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It's making me feel a bit wobbly walking around.

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And, you can see, this room here is hanging out over the landing.

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I just feel it really does need a major rearrange.

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Somebody needs to come in here and sort out all of the levels.

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So good luck to that person.

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So plenty of work needed to make this place habitable

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but, with lots of redevelopment work going on round about,

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I felt this was a great investment opportunity.

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Now, just because there is a building site next door, it doesn't

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mean you should run for the hills.

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A quick search and you would discover that this old

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council building, right here, is

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being turned into some new shiny flats

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and it's in keeping with what's happening in the broader

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picture around Gravesend,

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where just last year local councillors agreed the first stages

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of a £120 million regeneration programme for the town,

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which is so exciting.

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For an investor, a building site is a sign of regeneration

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and a helping hand in turning a profit.

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When the house went to auction there were a few bidders who

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agreed with me and after a quickfire battle,

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it was a final bid of 163,000 that secured the purchase.

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163,000.

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Quite sure all done.

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Sold to you, sir. Thank you very much.

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The man waving the paddle was Shane, who, together with his three

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friends Jay, Martin and Hugh, have pooled their resources to

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take a first step into the property development business.

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The four have been friends since their school days,

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so how did they come up with the idea of working together?

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Well, we're still chums and we see each other every

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week, we're in a pub quiz team together,

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and we just thought one night... At the pub quiz we thought,

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"Well, we're all getting old, we're coming up to retirement now,

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"what are we going to do?"

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Stupidly, and that was after a few drinks, we thought, "Oh, it would

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"be a good idea, we'll buy somewhere and see if we can do it up."

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We thought about how to deal with it and actually formed a company,

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so we have a company that has bought the property.

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We formed the company and then we visited, probably,

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seven or eight auctions.

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I should imagine we've probably looked at about 30 properties

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and this was the one that we were fortunate to get.

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It suits us because we all live in the area

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and so we're all within, probably, a mile of the property.

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-So did you all visit the property prior to the auction?

-ALL: Yeah.

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We had a bit of trouble, though, because the guy that was showing us

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about from the auction company, took us round and said,

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"Oh, I can't shut this back door, somebody's opened this back door."

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And, of course, it had been shut for a long time.

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He said, "Could you give us a hand?" So I went round the back

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and he said, "Right, I'll pull it."

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I went to push it and put my arm through the glass

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and smashed the glass in the back.

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MUSIC: "Breaking Glass" by David Bowie

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Well, Jay, I know all breakages must be paid for

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but buying the whole house, it's a bit extreme!

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But, seriously, buying this place was quite a commitment.

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Now, I know a lot of people would have been put off on first

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glance at this because of what's going on next door.

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There's also no parking, it's in a really bad state of repair.

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What was it about this that made you guys want to bid on it?

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It was local and it's near the pub.

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THEY LAUGH

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That is the right reason!

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Yeah, no, because we all live fairly near,

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this was ideal and we know the area and,

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despite the building work that's going on, Gravesend

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really seems to be quite an up-and-coming place.

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It's 22 minutes to London on the high-speed train

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and it's a nice part of town, we're near town, it's a nice short walk

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-into the town centre.

-So what happens now?

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Hugh, talk me through what the next stage is going to be for you guys.

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Right, the builder friend has been round and looked at the place

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and we've talked through a few proposals.

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We have a plan A and plan B.

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Plan A is to turn the basement into a one-bedroom flat

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and then the rest of the building to be turned into a two-bedroom flat.

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That's obviously subject to planning permission,

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building regs and so forth.

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What is your plan B?

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Plan B is to leave it as one unit and just renovate it.

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And they had carefully considered

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the cost implications for both options.

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We've got some indicative prices with regards to doing the two jobs.

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If it's a single entity, it'll be about 20,000

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but if we were to split it into two, which is what we want to be doing,

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-it's about £40,000, we think will be the costs to produce that.

-OK.

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That's very much on the basis that the four of us will be

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involved as much as we can in terms of the, sort of,

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labouring elements of the work.

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-Really? I was going to move onto that.

-Mostly the three of them.

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-For the three of them and you're just going to be telling them what to do.

-Absolutely, that's the plan.

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He'll be making the coffee, that's what Jay's good at.

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OK, so with the coffee making sorted,

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I wanted to know about the real work.

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What skills... What can you each individually bring to the table?

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Well, there's a lovely bit of ironwork just outside,

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a nice, sort of, wrought iron

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railings which I quite fancy, sort of, tarting up

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-and making them look attractive.

-That's got your name on it.

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So we're taking down the chimney bricks throughout the building and

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he's doing a little bit of painting at the back.

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Which sounds about right, that doesn't surprise us at all!

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So what are you going to bring to the table?

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I think, certainly like these two here...

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Basically, I had my own house for 30-odd years,

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got some DIY skills at home,

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this is a great opportunity to hone those skills and,

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indeed, develop other skills.

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The builder we've been talking to will, hopefully, give us an

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opportunity to use the tools a bit more, perhaps a bit of plastering,

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perhaps a little bit of brickwork,

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I don't quite know, whatever comes along.

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But, basically, when we finish this you've got that sense of achievement

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and you're in a better position to commence the new project as and

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when we sell this and we've got the money left to buy another property.

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-You do really want to be hands-on here.

-Absolutely, yes.

-Fantastic.

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So what's the timescale, the realistic timescale you've set yourselves?

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THEY TALK OVER EACH OTHER

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I would love it if you all said different things at the same time.

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-A couple of weeks!

-Oops!

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-We did discuss this yesterday, didn't we?

-Yeah!

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-So, come on, timesescale, all say it together. Go!

-ALL: Nine months.

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-Six to nine months.

-Nine months.

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Hard to tell amongst all those voices but I'm sure I heard,

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"Nine months."

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Well, when we came back 11 months later, it was clear the lads

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had done a lot of work but things were running a bit behind.

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Planning permission had been granted for the conversion into two

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flats, a one-bed in the basement

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and a two-bed on the ground floor and first floors.

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Knowing the team's fondness for meeting up in the pub,

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I wondered how much of this had contributed to the delay.

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We've hardly ever been there.

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I think these things, inevitably, take longer than you imagine,

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especially for the first time that some of us have been involved in

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the process and then the added dimension

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was around this being part of a conservation area.

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So where we wanted to change, for example, the front door,

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and things like that, we had to get additional planning approval.

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We're moving into the finishing, sort of, situation at the moment.

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You can probably hear we've actually got builders working

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on-site at the moment.

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The builders are still putting in radiators, boilers

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baths, some electrical work.

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We're starting to paint the building from top to bottom,

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so these are the sort of tasks we can take on.

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To get an idea of how buoyant the market was, we invited two

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local estate agents along to have a look at this work in progress.

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I think there's always a demand for quality properties

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and, at the moment, I believe there is a shortage of properties.

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So if you've got something and if it is of good quality,

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I think it'll go very quickly.

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I think the owners have done a really good job here.

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They've converted it into two units, both of which will sell quite

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readily or be able to be rented out fairly quickly.

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Having spent 218,000 up to that point,

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the guys were planning to add a high-end finish to the

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decoration, in the hope of reaching the best possible sale price.

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Keeping that in mind and looking at the work done so far,

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what did the estate agents think the flats might be worth,

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starting with the one-bed basement?

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That should achieve a price in the region of £90,000.

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It should make somewhere in the region of £95,000

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and the upper flat should sell for somewhere in the region of £175,000.

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That property should achieve a price in the region of £160,000.

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But achieving that possible profit of 50,000 would mean ramping up

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the action and getting on with the work,

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isn't that right, boys?!

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We do, of course, have an unwritten rule that every board meeting

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-for the company has to be in a different pub.

-In a different pub.

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That's the real reason that most of us are involved in the project,

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as you've probably guessed.

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That's where we're going at the moment.

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Well, we'll see the results of those "board meetings"

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and, hopefully, quite a lot of work later on in the show.

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Harrow Weald, in northwest London, is a busy part of the modern

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metropolis that has hidden historical depths.

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It's the site of Grim's Ditch,

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an earthwork, or man-made hill, that's believed by some

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to date back to the 5th century,

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though some think it may even be older,

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built as a defence against the Romans.

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Nowadays, the Romans would have no trouble getting from A to B

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as there are good links to the A41, M1 and M25.

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And a mile away there is the

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Bakerloo and London Overground station.

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So what was up for auction?

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Well, one of those auction lots you don't see every day,

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a former church premises.

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Hmmm, interesting, eh? A guide price at £250,000 plus.

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This is it, woohoo!

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Well, first off, it's worth noticing that

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the building looks pretty modern, which has got to be good news.

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It's likely to have proper damp-proof course,

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the roof is likely to be in good condition, good electrics, etc, etc.

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What have we actually got? Well, probably what you might expect.

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A little entrance area here, a few cupboards for storage,

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a loo, looks to be in fairly nice condition,

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lots of oak all over the place and...

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Yeah, it's good.

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What else is there?

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Whoa! One large room here, we'll explore that in a minute,

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but, first of all, look at this door.

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This is an amazing feature.

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How about that?!

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I don't know what you'd use it for but I love it.

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It's solid oak, it's really heavy and it's...

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HE GROANS

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..it's like a fortress.

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It's solid oak, I don't know if it's soundproofed or anything.

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It would be a shame to get rid of it because it probably cost a fortune.

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But once you get into this room, well, it's just great, actually.

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It's a bit bland, I suppose, but it's clean.

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You come in here and you get a size of the building, for sure.

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Straight away you're thinking a place of work, offices, or whatever.

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It would be really easy to convert it to that, it's almost ready-made.

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In terms of something else, eh, yeah...

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The fact that you've got this blank canvas is great news.

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So, yeah, from the outside...

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HE MUMBLES

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..in here, this is amazing.

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However, as exciting as this space is,

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there are some important things to bear in mind.

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We have to remember this was a church

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so, unless you are planning on buying this to have your own

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Sunday sermons, then we're talking change of use.

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This lot would be categorised as D1,

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it's a non-residential institution.

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And when it comes to buying property, check the use class

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and if the planning department will look favourably on a change of use.

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But if they do, there are some very interesting possibilities.

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The one thing that's really in favour of the building is that roof.

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It's only a single-storey dwelling and yet the roof height is

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almost the same height as the double sized buildings next door.

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So when it came to planning decisions,

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maybe putting in a second floor,

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certainly a dormer window, or something like that.

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I don't think the planners would have an issue, so that's great news.

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The roof space already has a generous attic

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but that possibility to extend

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the former church into the heavens means there's huge potential here.

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Plenty of parking space, too, that's always an added bonus.

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But what to do with all this?

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Well, let's listen to the thoughts of a local estate agent.

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# Glory, glory

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# Hallelujah. #

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If you could get the planning permission to convert

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it into houses or flats, I would say go with that

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because that's what you're surrounded by around here,

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that's where, I would say, the main money is.

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But if you couldn't and you had to keep it as a commercial property,

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I would say going for a convenience store or solicitors

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or an office of some sort.

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The agent thinks that converting the church into flats or

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a semi-detached house is a strong possibility

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and he values a two-bed semi in this area at £400,000,

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while one-bedroom flats can go for anything between 180-200,000.

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It does sound like there might be money to be made

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but you'd have to factor in the time for planning

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and all the demolition costs before you even start to build.

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So if you decide to convert it and turn it into a shop,

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what kind of money could it make?

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If you do get a convenience store or even A3 or A5 use on it,

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you could, actually, probably resale somewhere up to about £380,000.

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A3 would mean a cafe or restaurant,

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whereas an A5 is a takeaway.

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Hmmm, food for thought.

0:18:480:18:50

However, what if you just wanted to make this an office of some kind?

0:18:500:18:53

If you were to convert this to offices

0:18:530:18:56

and put this on the open market, I'd say you'd be looking about £350,000.

0:18:560:19:01

Well, a bit of a blank canvas, this one.

0:19:030:19:05

Subject to the right planning permission, this could be

0:19:050:19:08

a place of business, flats, maybe just a home.

0:19:080:19:12

Yeah, a great opportunity.

0:19:120:19:14

Let's see who thought it was heaven-sent

0:19:140:19:16

when it went under the hammer.

0:19:160:19:18

Unfortunately, we're unable to bring you the bidding on this

0:19:180:19:22

property, although we know interest was keen.

0:19:220:19:25

The building was bought for £365,000 by Kiran.

0:19:270:19:32

She paid a whopping 115 grand over the guide price and came along with

0:19:320:19:37

Winston, who is the manager of her business, to tell us

0:19:370:19:40

what's going to happen to the former church premises.

0:19:400:19:44

-Kiran and Winston, good to meet you both.

-Hi.

-Hi.

-Congratulations!

0:19:440:19:48

Tell me why you wanted to buy this place.

0:19:480:19:51

We wanted to have this to run a fostering service from it and also

0:19:510:19:56

for it to be a community based place where we can run women's groups...

0:19:560:20:02

-Fantastic.

-.. and run training events.

0:20:020:20:04

We're both social workers

0:20:040:20:06

and we have been in the fostering field for quite a while.

0:20:060:20:11

We recruit foster carers and place vulnerable children with them.

0:20:110:20:15

Wow! What a fantastic job.

0:20:150:20:17

In this area or a bit further afield?

0:20:170:20:21

All over greater London, the outskirts of London.

0:20:210:20:23

Is this a charity or is this part of the local authority?

0:20:230:20:27

Well, it's an independent fostering agency,

0:20:270:20:29

so, technically speaking, we make profits

0:20:290:20:33

but, you know, we tender our services

0:20:330:20:36

-out to the local authorities.

-Right.

0:20:360:20:38

And so people come to you or do you go searching for people,

0:20:380:20:41

to find foster parents?

0:20:410:20:43

-We go searching.

-Right.

0:20:430:20:45

So what were you looking for, then, in terms of a building?

0:20:450:20:49

We needed an office space so the staff could

0:20:490:20:52

operate from the office space and for foster carers to come here as well.

0:20:520:20:56

I would have thought it's an absolutely ideal building.

0:20:560:20:59

As you can see, I mean, it's got a lots of potential.

0:20:590:21:01

Anything we could imagine that we

0:21:010:21:03

could do in here, whether it's partitions, building up, you know,

0:21:030:21:06

we can go for it.

0:21:060:21:09

Winston's absolutely right, this is a really flexible space.

0:21:110:21:15

So what's the initial plan?

0:21:150:21:19

At the moment it needs a bit of a refurb.

0:21:190:21:23

We need a kitchen area,

0:21:230:21:25

we need to make it look a lot more presentable than at the moment.

0:21:250:21:30

Maybe go up into the loft space, as well.

0:21:300:21:32

And then in the future maybe expand it even more.

0:21:320:21:34

Right, but the idea that it is this office space to start off with,

0:21:340:21:38

but also a bit of a multiuse building, if you like?

0:21:380:21:41

So, in terms of the internal layout, then,

0:21:410:21:43

tell me what your thoughts are at this point.

0:21:430:21:46

We've had a lot of thoughts around are we going to partition areas,

0:21:460:21:49

are we going to make smaller offices,

0:21:490:21:51

a nice little boardroom area for

0:21:510:21:53

people to meet and have training events?

0:21:530:21:56

So it's looking at how we can use this space.

0:21:560:22:01

'A little bit of thinking needed on the best layout.

0:22:010:22:03

'But they'll need to be quick as they want to move in, in just one month.

0:22:030:22:08

'It's a tight timescale but is the budget as tight as well?'

0:22:080:22:13

So, initially, we're looking at about £15,000.

0:22:150:22:20

And, obviously, if we go up into the roof,

0:22:200:22:23

the budget will need to be extended from there.

0:22:230:22:25

And what would you put up there?

0:22:250:22:27

Would that just be dormer windows and more, sort of...?

0:22:270:22:30

-More office space.

-Office space, OK.

0:22:300:22:33

First stage is really, sort of, I would say, sitting down,

0:22:330:22:36

talking to the staff team a bit more, looking at how we're going to

0:22:360:22:41

divide the space, colour schemes,

0:22:410:22:43

where's the kitchenette going to go.

0:22:430:22:46

-Coffee's an important thing for staff.

-Absolutely!

0:22:480:22:52

And how involved in the actual process of the renovations

0:22:520:22:55

are you both going to get?

0:22:550:22:57

-Very involved.

-Very involved?!

0:22:570:22:59

-A hands-on painting kind of thing?!

-Yeah.

0:22:590:23:03

-See you in your overalls tomorrow.

-Why not!

0:23:030:23:07

That comment might very well backfire, Winston,

0:23:070:23:11

looks like you'll all be getting a set of overalls

0:23:110:23:14

and hold on to them for a while because if you do decide to go into

0:23:140:23:18

that loft space, well, you'll need them to paint

0:23:180:23:20

and decorate up there, too.

0:23:200:23:22

Obviously, two people of many talents

0:23:220:23:24

but I particularly wanted to know what drew them into social work.

0:23:240:23:28

We've both been in social work for a very long time, 25 years for me

0:23:300:23:34

and, I think...

0:23:340:23:37

-About 30 for me.

-Really?! Oh, wow!

-Yeah.

0:23:370:23:40

A big step to saying, well, there's a need but then going out

0:23:400:23:43

and doing something about it.

0:23:430:23:44

Yeah, definitely, but we're very passionate about what we do.

0:23:440:23:49

We've got a good staff team that's got a lot of skills

0:23:490:23:52

and experience, so that really helps us.

0:23:520:23:55

There's a lot of children out there that need foster care,

0:23:550:23:59

a huge number of children that need foster care, so...

0:23:590:24:01

It's a very fulfilling job you've, sort of,

0:24:010:24:04

-taken on, isn't it?

-Yeah.

-Definitely.

-Yeah, definitely.

0:24:040:24:09

Well, listen, congratulations, extremely worthwhile

0:24:090:24:11

-and wonderful what you're doing. So good luck with it.

-Thank you.

0:24:110:24:15

-I look forward to seeing how you get on.

-Thanks very much.

0:24:150:24:18

Well, turning this former church into offices is, definitely,

0:24:200:24:25

a good move, especially with the close proximity to good transport

0:24:250:24:28

links like the underground.

0:24:280:24:30

Still, lots of decisions to be made.

0:24:300:24:33

Will they get divine inspiration? You can find out later in the show.

0:24:330:24:37

Still to come, is there a father/son disagreement in Derbyshire?

0:24:390:24:44

Plenty of family arguments about what we should do

0:24:440:24:46

and, in the end, we got there.

0:24:460:24:48

And in London, all is equally harmonious.

0:24:510:24:55

We very much want to be part of the community here.

0:24:550:24:58

Back now to Gravesend, in Kent,

0:25:030:25:05

where we first met our four old school friends,

0:25:050:25:08

who decided to invest their savings in property.

0:25:080:25:11

So they took their piggy banks along to a local auction.

0:25:110:25:15

# We are the funky men... #

0:25:150:25:18

Sold to you, sir. Thank you very much.

0:25:180:25:21

The end result was the purchase of this

0:25:210:25:22

two-bedroom end terrace house for 163,000.

0:25:220:25:27

It was local and it's near the pub.

0:25:270:25:29

Proximity to the pub aside,

0:25:340:25:36

this house had great investment potential.

0:25:360:25:39

The local area was undergoing a face-lift

0:25:390:25:41

and the guys' timing couldn't have been better.

0:25:410:25:44

Gravesend really seems to be quite an up-and-coming place,

0:25:450:25:49

22 minutes to London on the high-speed train.

0:25:490:25:52

The plan was to convert the house into a one-bed and a two-bed

0:25:520:25:57

flat and the fab four were keen on getting their hands dirty.

0:25:570:26:00

# We are the funky men. #

0:26:000:26:03

Well, 75% of them, anyway.

0:26:030:26:06

The four of us will be involved as much as we can in terms

0:26:060:26:10

-of the, sort of, labouring elements of the work.

-Really?

0:26:100:26:13

And you're just going to be telling them what to do.

0:26:130:26:16

-Absolutely, that's the plan.

-He will be making the coffee.

0:26:160:26:19

They had an original timescale of nine months and when we went

0:26:190:26:22

back 11 months later, they were well on their way but not quite finished.

0:26:220:26:27

Now a year since they started, we're back.

0:26:310:26:34

There's a new door, but more importantly, not a builder in sight.

0:26:340:26:39

But remember this damp and dingy basement...?

0:26:390:26:41

Well, it's now a sparkling one-bedroom flat.

0:26:500:26:54

And, above that, the two-bedroom maisonette.

0:27:000:27:04

This looks like a spectacular result,

0:27:150:27:18

made all the more impressive by the fact that this was the

0:27:180:27:21

four friends' first foray into property development.

0:27:210:27:24

With builders and other trades handling the technical stuff,

0:27:240:27:28

the decorating and finishing touches were left to the gang of four.

0:27:280:27:32

There's a variation of input between each of the guys.

0:27:340:27:37

You know, there's a couple of younger ones who are stronger,

0:27:370:27:39

so they'll do the heavier type work

0:27:390:27:41

and a couple who do the lighter, painting sort of work.

0:27:410:27:44

And then there's Jay.

0:27:440:27:46

And there is Jay, yes, yes.

0:27:460:27:48

I fetched the coffees.

0:27:480:27:50

-And the rest of us have mucked in and decorated top to bottom.

-Yeah.

0:27:500:27:55

To be fair, you know, Jay has enlisted help from his wife

0:27:550:28:00

and friends to make up for the lack of input on his own part.

0:28:000:28:04

He's been very busy, sort of, going abroad.

0:28:040:28:07

He's just recently retired, he's been on lots of holidays, etc,

0:28:070:28:12

but he turns up when he's available.

0:28:120:28:14

They've never trusted me with the delicate work, apart from the rail

0:28:140:28:19

outside that, right from the start, they said,

0:28:190:28:21

if I want that done, I've got to jolly well do it myself.

0:28:210:28:24

So I'm responsible for that.

0:28:240:28:27

I think he's done a good job out there and the rest of us

0:28:270:28:30

were keen to keep him out there, to be honest.

0:28:300:28:34

# Three's a crowd Four's a traffic jam... #

0:28:340:28:39

Oh, poor Jay. I bet your coffee's brilliant.

0:28:400:28:43

Anyway, he has made another very important contribution.

0:28:430:28:47

We decided quite a long time ago that, I think the quote was,

0:28:490:28:52

"You can't decide colours by committee."

0:28:520:28:55

So we've largely left it to Jay.

0:28:550:28:57

But there's more of a divided opinion.

0:28:570:28:59

Some like the green, some like the apricot, not many like both.

0:28:590:29:04

And not many that like either.

0:29:040:29:08

I think the green, in particular, works really well

0:29:080:29:11

and I think it's a contemporary colour for the age of the property.

0:29:110:29:15

And I think the apricot is a very, very nice colour

0:29:150:29:19

because it's in the part of the house that always gets the sun.

0:29:190:29:22

So I think that's quite a cheery room, especially if somebody

0:29:220:29:25

decides to use it as a nursery or a study, it's quite bright and cheery.

0:29:250:29:29

# Fancy colours... #

0:29:300:29:36

Next door, the large development is finally complete

0:29:360:29:39

and has paid an unexpected dividend.

0:29:390:29:43

Basically, we had an original wall in the back garden and, somewhere

0:29:430:29:49

along the line, it was knocked into by the next-door contractors.

0:29:490:29:54

And, as a solution, they offered to take the whole wall down

0:29:540:29:57

and put the new fencing out there for us.

0:29:570:29:59

So that was a bit of a result, really, from an accident.

0:29:590:30:03

It's no accident that this development has turned out so well.

0:30:050:30:09

The guys have put in a lot of planning

0:30:090:30:11

and effort over the past year.

0:30:110:30:12

Their budget of £55,000 crept up very slightly by 1.5 grand.

0:30:120:30:18

So, adding that to the purchase price of 163,000,

0:30:180:30:22

brings their final spend to £219,500.

0:30:220:30:26

The boys are just about to put the flats onto the sales market

0:30:310:30:34

and so what better time than to ask two local estate agents to

0:30:340:30:38

give us their expert opinions.

0:30:380:30:40

I think the owners have done a really good job here, actually,

0:30:410:30:43

and I think the finish is very nice.

0:30:430:30:45

When people are looking on the internet for properties, I think

0:30:450:30:49

the actual colours will really stand out and should lead to a lot of new

0:30:490:30:52

interest for this property when it goes onto the market.

0:30:520:30:55

I think the fact that they've divided it into two flats is

0:30:550:30:57

an excellent idea.

0:30:570:30:59

It will appeal to investors, particularly,

0:30:590:31:02

or if somebody wanted to buy and live in the top

0:31:020:31:05

and rent out the bottom, that's an extra income for them.

0:31:050:31:08

I think that was a brilliant idea

0:31:080:31:10

and something I would have gone along with myself.

0:31:100:31:13

Rental isn't the plan for this development,

0:31:130:31:15

so for how much do they estimate each could sell?

0:31:150:31:19

The studio flat will sell for somewhere between £95-100,000.

0:31:200:31:25

The upper maisonette will sell for somewhere between £175-185,000.

0:31:250:31:32

I would estimate the studio flat to be worth somewhere in the region of

0:31:320:31:37

£95-100,000 and the two-bedroom maisonette

0:31:370:31:41

to be worth in the region of £185-190,000.

0:31:410:31:47

If the sales reach those top estimates, the four friends could be

0:31:490:31:53

looking at a pre-tax profit of just over £70,000.

0:31:530:31:58

That surely calls for a celebratory drink.

0:31:580:32:00

Oh, yes, a pleasant surprise, to be perfectly honest.

0:32:000:32:03

I think the flat, downstairs, the studio, is what we expected but

0:32:030:32:06

upstairs, yes, that's pleasant, that's more than we anticipated.

0:32:060:32:09

There's clearly a profit there and, as an accountant,

0:32:090:32:11

I'm quite happy with that.

0:32:110:32:13

And if he's happy, I'm happy.

0:32:130:32:16

I'm heading to the village of Shipley

0:32:220:32:24

near the former coal mining town of Heanor in Derbyshire.

0:32:240:32:28

-# Going underground

-Going underground

0:32:280:32:31

# Well, let the boys all sing

0:32:310:32:32

# And let the boys all shout For tomorrow... #

0:32:320:32:37

Coal mining has helped shape the town since the 1500s and,

0:32:370:32:40

although the colliery is now closed, it's still a popular town with good

0:32:400:32:44

commuter links to nearby Nottingham and Derby.

0:32:440:32:47

So just on the outskirts of town, on this busy main road that links

0:32:490:32:53

Ilkeston to Heanor

0:32:530:32:55

and opposite you've got some lovely open countryside.

0:32:550:32:59

On this street, you've got modern and you've got old

0:32:590:33:02

and the modern ones tend to bring in that little bit more money

0:33:020:33:05

but look at this quaint row of miner's cottages.

0:33:050:33:09

The one I'm here to see is right there.

0:33:090:33:11

It's got a guide price of £43,000 plus and it's a two-up, two-down.

0:33:110:33:15

Let's have a look.

0:33:150:33:17

Now, you've got to remember, this is a cottage so there's not going

0:33:220:33:26

to be a huge amount of space in here, in this, what would be,

0:33:260:33:30

the lounge area.

0:33:300:33:31

My eyes are drawn to this four bar gas fire.

0:33:310:33:35

The '70s come to mind, my two brothers and my sister

0:33:350:33:38

fighting for heat when we lived in Leicester together

0:33:380:33:41

in our small little terraced house.

0:33:410:33:43

OK, through into here into the back room or, maybe, dining room,

0:33:430:33:48

table and chairs in here, somewhere.

0:33:480:33:50

Into the kitchen, you know, the theme runs through here.

0:33:500:33:53

This place hasn't been touched in a long time.

0:33:530:33:56

You'd need new floors, new windows, practically new everything.

0:33:560:34:01

# It's a good tradition Of love and hate

0:34:030:34:06

# Staying by the fireside

0:34:060:34:08

# There's a good tradition Of love and hate... #

0:34:080:34:13

It's all very well me getting nostalgic but it's going to

0:34:150:34:18

take a lot of work before anyone can get cosy in this place.

0:34:180:34:21

Especially as any heat from the kitchen will go straight up

0:34:220:34:25

that staircase next to it, along with those cooking smells - nice(!)

0:34:250:34:30

Out front, see the little clips on the roof tiles?

0:34:320:34:35

A sign of a temporary repair and elsewhere it looks even more dodgy.

0:34:350:34:39

Out the back there's a small garden space and an old outside toilet.

0:34:410:34:45

Let's just hope that's not the only loo.

0:34:450:34:48

I'm not sure I'd fancy that in the summer, let alone days like today.

0:34:480:34:53

OK, upstairs, and yes, the inside toilet.

0:34:550:34:59

Get in!

0:34:590:35:00

Bedroom, two there, smaller one.

0:35:000:35:03

And into the master bedroom, decent size,

0:35:030:35:05

got some storage space over there.

0:35:050:35:08

It would need new windows, most definitely,

0:35:080:35:12

and some central heating.

0:35:120:35:14

Here, I can see some concrete flooring as is downstairs.

0:35:140:35:18

It's not unusual in Victorian properties.

0:35:180:35:21

But, if you lift this lino...

0:35:210:35:23

And there's no cracks in that concrete at all.

0:35:230:35:25

..you can basically lay anything you want on top of it.

0:35:250:35:28

For me, a nice soft carpet, please.

0:35:280:35:31

This might be a small cottage

0:35:320:35:34

but it's got a very big list of things that need doing.

0:35:340:35:38

Yes, the guide price is a reasonable 43 grand

0:35:380:35:41

but could this cottage turn out to be an economic basket case?

0:35:410:35:45

We asked a local estate agent along to give us his opinion.

0:35:460:35:49

The property's in quite a bad state of repair,

0:35:510:35:53

it does require quite a lot of modernisation to bring it up

0:35:530:35:56

to a saleable standard and, certainly, a rentable standard.

0:35:560:35:59

Looking round the property, there's no actual signs of any damp,

0:35:590:36:02

it just wants a really, really good modernisation and makeover.

0:36:020:36:06

But if the buyer does do a good renovation,

0:36:060:36:09

what chance have they got to rent or sell?

0:36:090:36:11

It's quite a popular area, the market's fairly buoyant

0:36:110:36:14

at the moment.

0:36:140:36:15

We're fairly close to two major cities

0:36:150:36:17

as well as Shipley being fairly close to a country park,

0:36:170:36:21

we've got open views front and rear.

0:36:210:36:24

So we're agreed, plenty of work to do

0:36:240:36:26

but once done it could be an ideally placed rental property.

0:36:260:36:30

So how much might all that work cost?

0:36:300:36:33

I think you're looking in the region of about a £20-£30,000

0:36:330:36:36

spend on this particular property.

0:36:360:36:38

Assuming the house sells for around the guide price and you

0:36:380:36:41

spend £30,000 on it,

0:36:410:36:43

that would take you to a 73 grand investment.

0:36:430:36:47

Is there a possible profit here and what could it sell for?

0:36:470:36:50

Once this property is fully completed to be very, very high standard,

0:36:500:36:53

this should be fetching in and around £95-£100,000.

0:36:530:36:58

So a lot of work could generate a half decent profit.

0:36:580:37:01

What about the rental values?

0:37:010:37:03

The rental market is very buoyant at the moment,

0:37:030:37:06

this property should fetch £495 per calendar month.

0:37:060:37:09

There's definitely room for improvement here and, as we've heard,

0:37:100:37:14

the resale and rental markets are buoyant.

0:37:140:37:17

Now, there's a bona fide opportunity here for a developer,

0:37:170:37:21

if they can get it to the right price.

0:37:210:37:23

Let's see what happened when it went under the hammer.

0:37:230:37:26

It's a cottage style two-bedroom terraced house that requires

0:37:260:37:29

a scheme of updating and improvement.

0:37:290:37:32

Who's got 40,000 to start me for it?

0:37:320:37:35

£40,000, it's not a lot of money.

0:37:350:37:36

40, thank you at the back, I've got you, sir.

0:37:360:37:39

£40,000, my opening bid.

0:37:390:37:41

40 is my starter. 41 on the left.

0:37:410:37:43

At 41, 42.

0:37:430:37:45

42,000, 43.

0:37:450:37:48

44.

0:37:480:37:49

Two competing bidders drove this price up very quickly.

0:37:490:37:52

We rejoin the bidding at £57,000.

0:37:520:37:56

£57,000, bid's right at the back.

0:37:560:37:59

57.5 somewhere else?

0:37:590:38:02

At £57,000 for the first time,

0:38:020:38:06

£57,000 second time.

0:38:060:38:09

500. 58.

0:38:090:38:11

58, no.

0:38:110:38:13

At 58,000 once.

0:38:130:38:16

58.5.

0:38:160:38:18

59,000.

0:38:180:38:20

59.5.

0:38:200:38:21

59.5. 60,000.

0:38:210:38:24

60,000. Definite?

0:38:240:38:26

£60,000 once,

0:38:260:38:29

twice, third time.

0:38:290:38:31

It's yours, sir. Well done at 60,000.

0:38:310:38:33

Ajab, on the right,

0:38:330:38:35

found himself being congratulated on his successful bid of £60,000.

0:38:350:38:40

Ajab is a taxi driver and a property developer

0:38:430:38:46

and already has nine properties in his portfolio, which he rents out.

0:38:460:38:50

I met with him to find out what he had planned for his latest venture.

0:38:500:38:55

-Ajab, nice to meet you.

-Nice to meet you.

-Congratulations.

-Thank you.

0:38:550:38:58

Let's get back to the auction, how was it?

0:38:580:39:01

-It was great.

-Yeah?

-Yeah.

0:39:010:39:03

And did you only go for this property alone?

0:39:030:39:06

Actually, yes.

0:39:060:39:08

Tell us why this particular property, first and foremost.

0:39:080:39:11

First of all, I don't live far from here,

0:39:110:39:13

-I only live 200 yards away.

-200 yards?!

-200 yards, yeah.

0:39:130:39:18

And when I saw it, I just...

0:39:180:39:20

I said, "That's it, I'm going to get that.

0:39:200:39:23

And what about the price?

0:39:230:39:25

Did you get it for what you want, did you go over?

0:39:250:39:28

I got it cheap, actually. I could go over.

0:39:280:39:30

-So you're happy?

-I'm very happy, yes, yes.

0:39:300:39:33

Have you saved a little bit of money

0:39:330:39:35

-now so you can spend on this property?

-That's right, yeah.

0:39:350:39:39

Ajab is happy with paying 17 grand over the guide price

0:39:390:39:42

but I'm beginning to worry a bit.

0:39:420:39:45

If he intends spending anything like the 30 grand that the agent

0:39:450:39:48

thought it might take, then the profit margin is beginning to narrow.

0:39:480:39:53

Ajab, tell me a little bit more in depth what you're

0:39:530:39:55

actually going to do to the property, how you're going to turn it around.

0:39:550:39:58

What things have you really got to do?

0:39:580:40:00

We've got to change the windows and put the central heating in.

0:40:000:40:05

The first time I saw the stairs going through the kitchen,

0:40:050:40:09

I'm thinking about changing them and putting them from the dining room.

0:40:090:40:14

What budget have you got in your mind that you'd like...

0:40:140:40:17

Well, not like to spend.

0:40:170:40:19

Well budget is around about £7-10,000.

0:40:190:40:23

Well, he's certainly not going to be risking any profit margin with that budget.

0:40:230:40:27

That doesn't sound very much to me for all the work needed here

0:40:270:40:30

and he has a tight 6-8 weeks schedule, for a very pressing reason.

0:40:300:40:35

I'm going on holiday, I want to finish this project before I go.

0:40:350:40:39

-Where are you going to?

-I'm going to India.

-Ah!

0:40:390:40:42

# More, more, more

0:40:430:40:45

# How do you like it, How do you like it?

0:40:450:40:48

# More, more, more

0:40:480:40:50

# How do you like it, How do you like it...? #

0:40:500:40:53

I think I would like it more if there was more money and more time.

0:40:560:41:00

I mean, windows, central heating, roof repairs,

0:41:000:41:04

modernisation of bathroom and kitchen,

0:41:040:41:06

not to mention the decoration and flooring, is more than enough.

0:41:060:41:10

But Ajab is also thinking of repositioning those stairs

0:41:100:41:14

off the kitchen.

0:41:140:41:15

But he does have years of experience

0:41:150:41:17

and has a good relationship with a team of trades people.

0:41:170:41:21

And that's not the only relationship tied up in this property.

0:41:210:41:25

-It's for my son.

-You bought it for your son? What's he doing to do?

0:41:250:41:29

Is he going to live here or do the work on it, or?

0:41:290:41:32

No, he's going to rent it out, he's going

0:41:320:41:34

to do it up and rent it out, like an investment.

0:41:340:41:38

Anybody else in the family going to get involved?

0:41:380:41:40

My big boss, my missus.

0:41:400:41:42

She knows about property,

0:41:430:41:46

you'd be surprised. She's the main man in the house.

0:41:460:41:49

So she's the one who, sort of, guides you now and again, helps you?

0:41:510:41:55

She helps me, she's done about 14 kitchens...

0:41:550:41:58

-You've got your...

-..that even the professionals can't copy.

0:42:010:42:04

You can sit back, you can go on the beach and relax.

0:42:040:42:06

That's what I usually do.

0:42:060:42:08

I buy the property and she does all the work.

0:42:080:42:11

-Does she do all the work for you?!

-That's right.

-Fantastic.

-She's brilliant, she is.

0:42:110:42:15

Ajab, good luck. I wish you all the best

0:42:150:42:17

and make sure you check with your wife before you do anything.

0:42:170:42:20

-Thank you.

-Good luck.

-Thank you very much.

-Pleasure.

0:42:200:42:23

This is a real family effort but despite the kitchen building talents

0:42:250:42:30

of Ajab's wife Harvinda,

0:42:300:42:32

I think all this work is a big ask for that budget.

0:42:320:42:36

Will they get the whole thing sorted out in time for Ajab's India trip?

0:42:360:42:40

Find out later on in the show.

0:42:400:42:43

Well, we've seen how one set of buyers got on,

0:42:450:42:48

what about the others?

0:42:480:42:49

Did they spend more time and money than they were expecting?

0:42:490:42:52

Or did they come in bang on target?

0:42:520:42:55

Well, let's find out what went on.

0:42:550:42:58

We return now to northwest London, Harrow Weald to be precise.

0:42:590:43:04

Earlier I cast my eye over this former church premises.

0:43:040:43:09

This is it. Woohoo!

0:43:090:43:12

From the outside the building was in excellent condition

0:43:140:43:18

and on the inside, full of potential

0:43:180:43:20

for all manner of businesses or community enterprises.

0:43:200:43:24

There was no doubting the star attraction

0:43:240:43:27

and I just couldn't resist a trial of strength.

0:43:270:43:30

Look at this door. This is an amazing feature.

0:43:300:43:33

HE GROANS

0:43:330:43:36

How about that?

0:43:360:43:37

Phew! That was my day's workout taken care of.

0:43:390:43:42

When this lot went to auction it was sold for £365,000 and was bought

0:43:420:43:47

by Kiran who co-owns an independent fostering service in Greater London.

0:43:470:43:53

Together with manager Winston they saw this building

0:43:530:43:55

as an ideal opportunity to expand.

0:43:550:43:58

We wanted to have this to run fostering service from it and also

0:44:010:44:05

for it to be a community based place where we can run women's groups

0:44:050:44:11

-and training events.

-Fantastic.

0:44:110:44:13

As you can see, I mean, it's got lots of potential.

0:44:130:44:15

Anything we could imagine doing in here,

0:44:150:44:17

whether it's partitions, building up, we can go for it.

0:44:170:44:20

With a budget of £15,000 and a timescale of seven weeks,

0:44:210:44:26

Kiran and Winston couldn't wait to get started.

0:44:260:44:29

Almost four months have passed and we've come back

0:44:290:44:32

to see how it's changed.

0:44:320:44:34

Apart from the decoration and cabling,

0:44:450:44:47

the open-plan area is, more or less, unaltered.

0:44:470:44:51

No partitions have been put up and no extensions built into the

0:44:510:44:55

loft space but several crucial changes have been made.

0:44:550:44:58

The main piece of work, actually, is the windows

0:45:010:45:04

because, although there were false windows outside

0:45:040:45:07

but none on the inside, so that

0:45:070:45:09

was the most major piece of work, really.

0:45:090:45:12

Getting the windows done may have been important

0:45:140:45:17

but when I first met Kiran, she had a more pressing priority.

0:45:170:45:21

# Coffee time... #

0:45:210:45:23

Where's the kitchenette going to go?

0:45:230:45:25

-Coffee's an important thing for staff.

-Absolutely.

0:45:250:45:28

And voila! Where once were coats and hats,

0:45:280:45:31

it's now lattes,

0:45:310:45:33

espressos and Americanos.

0:45:330:45:35

# Because it's coffee time. #

0:45:350:45:39

It took a lot of thought in terms of where the kitchen area should be

0:45:400:45:45

and in terms of trying to maintain as much good space

0:45:450:45:49

as possible in the actual main office area.

0:45:490:45:53

So we felt that we should have it slightly outside.

0:45:530:45:57

But it's also... It's created a good space as well.

0:45:570:46:03

And I'm delighted to see my favourite part of the building

0:46:030:46:06

is still intact.

0:46:060:46:07

# I don't want to lose This good thing... #

0:46:080:46:13

We had lots of thoughts about it.

0:46:130:46:15

We thought if we break it through we will create a lot more space

0:46:150:46:20

but it just looks so nice and you just don't get that wood any more.

0:46:200:46:25

Lots of people that have visited,

0:46:250:46:27

that's the first thing they notice, actually.

0:46:270:46:29

Yeah, so we've kept it.

0:46:290:46:32

# I better knock on wood

0:46:320:46:37

# Baby... #

0:46:370:46:39

So were Kiran or Winston hands-on?

0:46:390:46:42

Or did they get professionals to knock on wood?

0:46:420:46:46

Oh, and brick and plasterboard...

0:46:460:46:50

We sourced local builders and we asked around a little bit

0:46:500:46:54

whose reputation was good and we've been really pleased with their work.

0:46:540:46:58

However, it's a lot of pushing and keeping on target

0:46:580:47:03

and a lot of monitoring, I couldn't leave them to it.

0:47:030:47:06

# Don't turn your back on me... #

0:47:080:47:11

Ah, well, it was all worth it, even though extra expenses,

0:47:110:47:14

like the windows, meant Kiran

0:47:140:47:16

went over her original £15,000 budget by 10,000.

0:47:160:47:22

But there's no doubting their work has successfully transformed

0:47:220:47:25

this into a fitting headquarters with this foster care company.

0:47:250:47:29

The new premises have already had a positive effect.

0:47:290:47:32

It feels like we've always been here, it really does feel like home.

0:47:340:47:37

Since we've been here we've already expanded

0:47:370:47:39

and we will continue to expand.

0:47:390:47:42

We very much want to be part of the community here, which we already are.

0:47:420:47:47

People are dropping in and wondering what we do.

0:47:470:47:50

We've had a lot of interest

0:47:500:47:53

and that will just go further

0:47:530:47:55

and further in terms of the stuff that we're trying to do.

0:47:550:47:59

Kiran and Winston have their feet firmly under the table

0:48:010:48:04

but we've asked two local estate agents to come along and tell us

0:48:040:48:08

how this building sits within a local commercial premises market.

0:48:080:48:12

The property is very unusual, it's been well maintained throughout,

0:48:140:48:20

it works perfectly as an office space.

0:48:200:48:22

They've made various changes with the kitchen to the front,

0:48:220:48:26

put in, obviously, all the desks, the computer equipment and

0:48:260:48:29

I can see they've wired in all the networks and everything like that.

0:48:290:48:33

So they've made quite a few changes, it's quite impressive.

0:48:330:48:36

The company have only just settled in but

0:48:370:48:40

if a future move was planned, how easy would it be to sell on?

0:48:400:48:45

As it's situated in a predominantly residential area,

0:48:450:48:48

would there be a high demand for office space in this location?

0:48:480:48:52

The main thing that helps this property is the space that it's got,

0:48:520:48:55

the location that it's got.

0:48:550:48:57

Obviously you've got all the amenities locally

0:48:570:49:00

and you've got further potential to, obviously, extend a business

0:49:000:49:04

and you've got parking to the front, you've got, obviously,

0:49:040:49:06

the kitchen and the space here.

0:49:060:49:09

In this area there's a high demand for office space.

0:49:090:49:12

It's a very residential area and has good transport links,

0:49:120:49:16

so an office in this area is highly sought after.

0:49:160:49:18

The strong selling point for this property are that it has

0:49:180:49:22

off-street parking, which is an ideal advantage in this area.

0:49:220:49:26

It's also in good condition throughout.

0:49:260:49:29

Kiran and her business partner bought this

0:49:300:49:32

property for £365,000 and they've spent around 25,000 on making it

0:49:320:49:38

a good working environment that suits their needs.

0:49:380:49:41

It's not going to be sold in the immediate future but how

0:49:410:49:45

would this £395,000 investment fare on the commercial market?

0:49:450:49:50

I would say that the property could either

0:49:500:49:52

sell for £400-£415,000

0:49:520:49:55

or could rent for £1,600 per calendar month.

0:49:550:49:59

This property on the market today would sell for somewhere

0:49:590:50:02

in the region of £400,000

0:50:020:50:04

and it would rent for in the region of £1,600 per calendar month.

0:50:040:50:07

Of course, it is reassuring that their investment

0:50:090:50:14

has increased in value by around £25,000.

0:50:140:50:18

But, truth be told, that's not the important factor here.

0:50:180:50:23

Yeah, I mean, having a property like this, I think, has enabled us

0:50:230:50:27

to operate far more effectively.

0:50:270:50:29

I think that's enabled us, as a business, to grow better

0:50:300:50:34

and I think as we grow we'll be able to provide

0:50:340:50:37

families for the children who need them.

0:50:370:50:42

Remember when I went to Shipley?

0:50:510:50:53

(Which in old English means sheep pasture.)

0:50:530:50:56

I took a look around this former Derbyshire miner's cottage.

0:50:560:51:00

This two-up, two-down had definitely seen better days but someone still

0:51:000:51:04

paid £17,000 over the guide price for this relic in need of a refit.

0:51:040:51:09

That someone was Ajab who paid £60,000

0:51:110:51:14

and purchased it on behalf of his son Jazz.

0:51:140:51:17

Ajab is local, in fact he's very local.

0:51:170:51:20

-I don't live far from here, I only live 200 yards away.

-200 yards?!

0:51:210:51:26

200 yards, yeah.

0:51:260:51:28

And when I saw it, I just... I said, "That's it, I'm going to get that."

0:51:280:51:33

Ajab's main jobs were to sort out the roof, install central heating,

0:51:360:51:40

rewire, fit new windows, make the kitchen bigger by moving

0:51:400:51:44

the staircase into the dining room and install new kitchen units.

0:51:440:51:48

Well, actually his wife Harvinda was going to do the kitchen.

0:51:480:51:53

She knows about property.

0:51:530:51:55

You'd we surprised, she's the main man, actually.

0:51:550:51:58

She's done about 14 kitchens.

0:51:580:52:00

You've got your...

0:52:000:52:02

Even a professional couldn't copy it.

0:52:020:52:05

You can sit back, you can go on the beach and relax.

0:52:050:52:08

That's what I usually do. I buy the property and she does all the work.

0:52:080:52:12

Did Ajab make it to the beach?

0:52:130:52:16

And how did his main man Harvinda cope with her work?

0:52:160:52:19

We're back after three months,

0:52:200:52:22

which in the history of this old cottage, is but a moment.

0:52:220:52:26

# When a moment

0:52:260:52:29

# A moment changes everything

0:52:290:52:32

# When a moment

0:52:320:52:36

# A moment changes everything

0:52:360:52:39

# When a moment

0:52:390:52:42

# It changes everything... #

0:52:420:52:46

Well, I think we can all agree that that bathroom has been changed

0:52:460:52:50

for the better.

0:52:500:52:52

My favourite changes are the new central heating

0:52:520:52:54

and ceramic tiles that cover the old concrete floor nicely.

0:52:540:52:58

With our backs to the bathroom,

0:52:590:53:01

the new landing carpet and paintwork in soft muted shades also

0:53:010:53:05

lifts the cottage from how it looked before.

0:53:050:53:08

At the front, the bigger of the two bedrooms was in desperate

0:53:090:53:13

need of modernisation.

0:53:130:53:15

# When a moment

0:53:160:53:19

# A moment changes everything

0:53:190:53:23

# When a moment

0:53:230:53:26

# A moment changes everything

0:53:260:53:29

# When a moment... #

0:53:290:53:35

Halfway down the landing, the smallest bedroom wouldn't

0:53:350:53:38

frighten your kids anymore if they had to sleep in it.

0:53:380:53:42

Instead of a ruin with a view, it's now a room with a view.

0:53:450:53:49

Now, to downstairs.

0:53:510:53:53

Remember the staircase used to end in the kitchen?

0:53:530:53:58

But Ajab wanted to move it to the dining room.

0:53:580:54:01

Sounds expensive, doesn't it?

0:54:010:54:03

But I'm going to show you how cheap it can really be.

0:54:030:54:07

By blocking off the kitchen door

0:54:070:54:09

and replacing the last four treads of the existing staircase with

0:54:090:54:12

kite steps, the staircase now turns into the dining room.

0:54:120:54:17

Just think if the Chinese hadn't invented kites,

0:54:170:54:21

Ajab would have been scuppered.

0:54:210:54:23

There's new laminate flooring and new doors

0:54:230:54:25

on the understairs cupboard

0:54:250:54:27

and the lounge has a transparent door to make the most of the light.

0:54:270:54:31

# Moment

0:54:310:54:35

# A moment changes everything... #

0:54:350:54:38

Unlike in the old days, I don't miss the gas fire.

0:54:380:54:42

They'll be no huddling up for warmth anymore in this lounge.

0:54:420:54:46

And, finally, downstairs.

0:54:470:54:49

Let's take a look at Harvinda's piece de resistance.

0:54:490:54:53

You couldn't call it a big kitchen

0:54:530:54:55

but with the stairs doorway now blocked off,

0:54:550:54:58

there's a bit more room for units.

0:54:580:55:01

We're finished just in time because here comes Ajab

0:55:010:55:04

with his solicitor son Jazz who owns the cottage.

0:55:040:55:08

But, hang on a minute, where's Harvinda?

0:55:080:55:11

We tried to get her on the camera, she won't come near it!

0:55:110:55:14

It's her day off.

0:55:160:55:18

And I'm glad to learn that Harvinda didn't do all the work herself.

0:55:180:55:22

Ajab has a regular team of family and trades people, who,

0:55:220:55:25

over the years, have helped him build his portfolio of nine rentals.

0:55:250:55:30

But all the spending decisions were down to owner Jazz.

0:55:300:55:34

Clearly he wasn't tempted to take any shortcuts with that roof.

0:55:340:55:38

If we'd done a patch up job on it, there's a risk that we'll have to

0:55:380:55:41

pay for the roof to be done, in any event, a year or two down the line.

0:55:410:55:46

One bad winter and that work's gone as well.

0:55:460:55:49

It just was a more common-sense approach.

0:55:490:55:53

Did project manager Ajab manage to fit any time in on the beach?

0:55:530:55:57

My dad's been to India in the meantime,

0:55:570:56:00

my mum's been to Canada, my boy's not been well.

0:56:000:56:04

But we've managed to keep on track.

0:56:040:56:06

Plenty of phone calls, plenty of FaceTimes,

0:56:060:56:08

plenty of family arguments about what we should do.

0:56:080:56:11

In the end we got there.

0:56:110:56:13

Even so, the 13 week job has only slightly overrun

0:56:130:56:17

the original 6-8 week schedule.

0:56:170:56:20

But did the overrun affect the spend on the cottage?

0:56:200:56:24

I think if I'd been solely in charge of the budget we wouldn't have

0:56:240:56:27

kept within in it

0:56:270:56:29

because I just don't have the experience of keeping within one.

0:56:290:56:32

But, yeah, we're happy with where it is,

0:56:320:56:34

paid about 60, spent about ten.

0:56:340:56:37

Still within the region that we'd like to be in.

0:56:370:56:40

We invited two local estate agents along to help Jazz find out

0:56:410:56:45

if his spending for the first time on property development stood to

0:56:450:56:48

gain him a profit.

0:56:480:56:50

He bought to rent out

0:56:500:56:52

but if he wanted his £70,000 spend back now, where would he stand?

0:56:520:56:58

First with a for sale evaluation.

0:56:580:57:00

The agent who saw the property before.

0:57:000:57:03

Property gone on the open market today would be

0:57:030:57:05

marketed about 99,500.

0:57:050:57:07

In the current market climate it should get very, very

0:57:070:57:10

close to the asking price.

0:57:100:57:11

I think the property could, potentially,

0:57:110:57:14

sell for up to £100,000.

0:57:140:57:16

So a potential profit of £30,000 minus the usual taxes and expenses.

0:57:160:57:22

It's not bad for two months' work, is it?

0:57:220:57:25

Well, I couldn't disagree with that. What about the rentals?

0:57:270:57:31

To secure a good quality tenant, £495 per calendar month.

0:57:310:57:35

I would market the property at £450 per calendar month.

0:57:350:57:39

Taking the average that would give Jazz a yield of just over 8%.

0:57:390:57:43

That's a good return for what he invested in this property.

0:57:430:57:48

I think it's a very good return.

0:57:480:57:50

And what does Ajab think of his son's progress as a property developer?

0:57:500:57:55

He's made so much money in two months, I think he's going

0:57:550:57:58

to start looking for another one soon.

0:57:580:58:00

Will we see some more fairy tale endings next time?

0:58:030:58:06

-Yeah, or will they be more of a grim ending?

-Oh, yeah.

0:58:060:58:10

Only one way to find out,

0:58:100:58:11

join us next time for more Homes Under The Hammer.

0:58:110:58:13

-See you then.

-Goodbye.

-Goodbye.

0:58:130:58:15

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