0:00:02 > 0:00:04Hello and welcome to the show. There are plenty of reasons
0:00:04 > 0:00:07for you to try your hand at property investing.
0:00:07 > 0:00:09There's also plenty of things you'll need to get right
0:00:09 > 0:00:10so it all goes smoothly.
0:00:10 > 0:00:13You've got to make sure you've got an eye for a bargain,
0:00:13 > 0:00:15but why not pop down to your local auction house
0:00:15 > 0:00:16and see if you can find one.
0:00:41 > 0:00:44We always say, "Do your research beforehand,
0:00:44 > 0:00:48"read the legal pack and make sure you visit the property if you can."
0:00:48 > 0:00:50If doesn't mean there won't be any problems,
0:00:50 > 0:00:53but forewarned is forearmed.
0:00:53 > 0:00:55So, what tempted our buyers on today's show?
0:00:58 > 0:01:00A large freehold detached in Liverpool
0:01:00 > 0:01:02keeps this property pro buying.
0:01:02 > 0:01:05We have approximately 160 properties now on the books.
0:01:06 > 0:01:08A fledgling team take on damp
0:01:08 > 0:01:11in this three-bed mid-terrace in Birmingham.
0:01:11 > 0:01:14- Is this project number one? - Our first one, our very first one.
0:01:14 > 0:01:16This is really exciting for us, actually.
0:01:16 > 0:01:20And this Kent cafe and offices is as far as this developer can go
0:01:20 > 0:01:22without his water wings.
0:01:22 > 0:01:24Once you get to Ramsgate, you can't go any further,
0:01:24 > 0:01:26otherwise you'll end up in the sea.
0:01:27 > 0:01:29All of these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36- Are you all done? - HAMMER BANGS
0:01:38 > 0:01:41MUSIC: Going Down To Liverpool by the Bangles
0:01:41 > 0:01:45Liverpool, north-west England - famous for the Beatles, the Mersey,
0:01:45 > 0:01:50the docks, the Liver building and, yes, Everton, amongst other things.
0:01:50 > 0:01:55# I'm going down to Liverpool to do nothing
0:01:55 > 0:01:58# All the days of my life... #
0:01:58 > 0:02:00But I'm not going to Goodison Park this time.
0:02:00 > 0:02:02I'm heading for Orrell Park,
0:02:02 > 0:02:06around three miles from the city centre in the district of Walton.
0:02:08 > 0:02:11Just a seven-minute walk away from the train station
0:02:11 > 0:02:14is the property I'm here to see - or should I say, properties.
0:02:14 > 0:02:17This three-storey building has got six flats in -
0:02:17 > 0:02:20five studio flats and one one-bedroom flat.
0:02:20 > 0:02:23Now, there's a lot of viewing to do here, so I'd better get started.
0:02:25 > 0:02:30At a guide price of £160,000, this large, imposing building
0:02:30 > 0:02:32has lots of space for parking at the front,
0:02:32 > 0:02:34which is always a big plus.
0:02:40 > 0:02:42So, into the first flat.
0:02:42 > 0:02:45This is the only one-bed flat, but it is a good start.
0:02:45 > 0:02:47Nice hallway here, you've got your double bedroom
0:02:47 > 0:02:50at the back of the property there and a bathroom.
0:02:50 > 0:02:54A nice lounge area and a really lovely high ceiling.
0:02:54 > 0:02:59And you've got a kitchen in here which is a decent size again,
0:02:59 > 0:03:04but...for me, it's screaming out getting rid of this wall here
0:03:04 > 0:03:09and open up a nice lounge-kitchen area which would be perfect for me.
0:03:09 > 0:03:11If you can hear any traffic noise,
0:03:11 > 0:03:14it's because you've got this security shutter up here
0:03:14 > 0:03:16and there's no glass in the windows as yet.
0:03:16 > 0:03:19They are over there, ready to go in.
0:03:19 > 0:03:22But get that out, open it up a bit, make it nice and bright.
0:03:22 > 0:03:25One down and only five more flats to go.
0:03:25 > 0:03:28As I said, the rest are all studio apartments,
0:03:28 > 0:03:30meaning they don't have separate bedrooms.
0:03:30 > 0:03:33The first studio on the ground floor
0:03:33 > 0:03:37has the living room/ bedroom at the front of the house.
0:03:37 > 0:03:39There's a small and narrow bathroom,
0:03:39 > 0:03:42but the kitchen at the back is surprisingly large,
0:03:42 > 0:03:44although it's missing a boiler.
0:03:46 > 0:03:48Up on the first floor, there's two more studio flats
0:03:48 > 0:03:50and it's a similar story.
0:03:53 > 0:03:57In flat three, there's evidence of a leak from upstairs.
0:03:57 > 0:03:59A reasonable size lounge/ bedroom
0:03:59 > 0:04:02and if you find the kitchen a little disappointing,
0:04:02 > 0:04:04wait until you see the bathroom!
0:04:04 > 0:04:09It's a shower room. But they are a decent size for a studio flat.
0:04:09 > 0:04:15On the same floor, studio flat four has a smaller lounge/ bedroom,
0:04:15 > 0:04:20but makes up for it in the kitchen department and with a real bathroom.
0:04:20 > 0:04:22MUSIC: Six To Go by The Pogues
0:04:22 > 0:04:25# O-we-o-o, six to go
0:04:25 > 0:04:27# O-we-o-o... #
0:04:27 > 0:04:31So, at the top of the building, another studio flat.
0:04:31 > 0:04:36Nice little hallway space here, large lounge, VERY large lounge in there.
0:04:36 > 0:04:39Well, for a studio flat, trust me, it's large.
0:04:39 > 0:04:42And you have a bathroom in here as well.
0:04:42 > 0:04:44Just needs some updating but, again, nice and bright.
0:04:44 > 0:04:47Into this large kitchen here.
0:04:47 > 0:04:52It's very rare to have this size space in a studio flat.
0:04:52 > 0:04:55Now, having done this before myself,
0:04:55 > 0:05:00I'd be inclined to maybe think about changing the kitchen into a bedroom
0:05:00 > 0:05:03and maybe putting the kitchen in the lounge,
0:05:03 > 0:05:05so you've got a bit of a lounge-kitchen area,
0:05:05 > 0:05:08bit of a dining area, which is quite cool and trendy nowadays,
0:05:08 > 0:05:11and you'd have a one-bed flat rather than a studio.
0:05:11 > 0:05:15I'd do the same for the final flat of the six, also on the top floor.
0:05:15 > 0:05:17But what does a local property agent think
0:05:17 > 0:05:22that the rental values will be if refurbished as they are?
0:05:22 > 0:05:24Once they've been refurbished,
0:05:24 > 0:05:28the studio apartments will bring in £300 to £350 per calendar month
0:05:28 > 0:05:30and the one-bedroom apartments,
0:05:30 > 0:05:34you're looking at £400 to £450 per calendar month.
0:05:34 > 0:05:36So, that means, if it were possible
0:05:36 > 0:05:39to convert the studios into one-bedders,
0:05:39 > 0:05:42they'd achieve £100 per calendar month more
0:05:42 > 0:05:44than leaving them as they are.
0:05:44 > 0:05:47At a guide price of £160,000,
0:05:47 > 0:05:50what could you get on the open market after refurbishment?
0:05:50 > 0:05:53To sell the whole building as an investment,
0:05:53 > 0:05:56you're talking roughly about £300,000.
0:05:56 > 0:06:00Not a bad potential profit. But what about selling them individually?
0:06:00 > 0:06:06They'd be worth £68,000 for the studio
0:06:06 > 0:06:09and I'd say roughly about £72,000 for the one-bedroom flats.
0:06:09 > 0:06:12Individual sales are clearly the way to go
0:06:12 > 0:06:16because that adds up to a grand total of £412,000.
0:06:16 > 0:06:21Three storeys, six flats and, potentially, a lot of rental income.
0:06:21 > 0:06:24Now, if you get it for anywhere near the guide price,
0:06:24 > 0:06:26I think you've got yourself a bargain.
0:06:26 > 0:06:28Let's see who agreed when it went to auction.
0:06:29 > 0:06:32We'll move straight on to lot 174.
0:06:32 > 0:06:35Start me, if you will, at £150,000.
0:06:35 > 0:06:38By the pillar straightaway on my left. 150.
0:06:38 > 0:06:40The bids continue in £2,500 steps
0:06:40 > 0:06:45until we rejoin with a telephone bid of £175,000.
0:06:45 > 0:06:4875 with Ollie. 77.5.
0:06:49 > 0:06:51Shake of the head. It's against two of you in the room.
0:06:51 > 0:06:53It's on the phone with Ollie at £175,000.
0:06:53 > 0:06:55The first time, second time...
0:06:55 > 0:06:57Back of the room on the left, fresh place. 177.5.
0:06:57 > 0:07:01180. 78.5, why not? Take 1,000.
0:07:01 > 0:07:04Round me up to 180. 180. 81.
0:07:06 > 0:07:0881. 82.
0:07:09 > 0:07:1183. The phone's going down, I think.
0:07:11 > 0:07:14It's still with you, this time at £182,000.
0:07:14 > 0:07:16First time, second time...
0:07:16 > 0:07:18Third and final time.
0:07:18 > 0:07:20- The phone's gone down... - HAMMER BANGS
0:07:20 > 0:07:23The top bid of £182,000 came from Adrian.
0:07:23 > 0:07:26He's been on the show twice before -
0:07:26 > 0:07:30the last time three years ago for this property in Warrington.
0:07:30 > 0:07:31Remind me what you do.
0:07:31 > 0:07:35We source properties on behalf of clients, on behalf of investors,
0:07:35 > 0:07:37so we'll source them, give the package to them,
0:07:37 > 0:07:40explain the refurbishment costs and then we do the rental for them,
0:07:40 > 0:07:42we manage it, so basically the whole package.
0:07:42 > 0:07:46Adrian changed career from being an antiques dealer,
0:07:46 > 0:07:48so after 12 years in the property business
0:07:48 > 0:07:52and after meeting both Martin and Lucy on each of his last appearances,
0:07:52 > 0:07:54how's he been getting on?
0:07:55 > 0:07:57- Adrian, nice to meet you.- You too.
0:07:57 > 0:07:59I normally start by saying, "How was the auction?",
0:07:59 > 0:08:02but you're old hat at this. You've been on the show before.
0:08:02 > 0:08:05- I have, yes, two times. This is the third time.- Third presenter.
0:08:05 > 0:08:08- Yes, third presenter, third time, yes.- How many have you done?
0:08:08 > 0:08:09Have you done lots and lots?
0:08:09 > 0:08:13- We have approximately 160 properties now on the books.- Really?- Yes.
0:08:13 > 0:08:15What caught your eye about this property?
0:08:15 > 0:08:16It's a great building.
0:08:16 > 0:08:18It's a Victorian detached building,
0:08:18 > 0:08:21- so it's got great potential for the rental market.- Mmm-hmm.
0:08:21 > 0:08:24- The location is really good as well. - How are you going to change it?
0:08:24 > 0:08:27- Are you going to knock it about a bit?- Not too much, no. Mainly...
0:08:27 > 0:08:31- In this property there's one one-bed flat and five studio units.- OK.
0:08:31 > 0:08:33So, the one-bed, we will knock a wall down there
0:08:33 > 0:08:36because the kitchen is enclosed and it's quite cramped.
0:08:36 > 0:08:38So, we'll take that down, open it up.
0:08:38 > 0:08:41And the other ones, it's a general refresh really -
0:08:41 > 0:08:45new kitchens, bathrooms, new boilers, full decoration.
0:08:45 > 0:08:48- What's the budget for this property? - Slightly under £35,000
0:08:48 > 0:08:51for the whole property, so £34,750 is the budget on this one.
0:08:51 > 0:08:52It's a big property, isn't it?
0:08:52 > 0:08:54It's a small budget for a big property like that.
0:08:54 > 0:08:56It is, but we've experience behind us,
0:08:56 > 0:08:58know exactly what each unit will cost -
0:08:58 > 0:09:01the kitchens, the bathrooms, the boilers, everything.
0:09:01 > 0:09:05- We keep a close eye on the budget because it's not our money.- Yes.
0:09:05 > 0:09:07It's the client's money, so we keep a close eye on it
0:09:07 > 0:09:10and everything's done in the correct order.
0:09:10 > 0:09:12And where's the majority of that budget going to go?
0:09:12 > 0:09:15On each flat, really.
0:09:15 > 0:09:18It's so much per flat, for a new kitchen and bathroom and boiler.
0:09:18 > 0:09:21We buy goods in bulk. We have a small warehouse
0:09:21 > 0:09:24where we can deliver the goods to the property.
0:09:24 > 0:09:29And do you have to get specific colours and designs from the people
0:09:29 > 0:09:32that you're buying for to put into the rooms or do they let you just...?
0:09:32 > 0:09:35They leave it to us. Because we've got the experience,
0:09:35 > 0:09:36we know what colours to use,
0:09:36 > 0:09:38what kitchens to use, what worktops to put in.
0:09:38 > 0:09:41Sometimes a client will get more involved, which is fine,
0:09:41 > 0:09:43but we will put our input in and advise them.
0:09:43 > 0:09:47Is it fine though? Do they get under your feet sometimes?
0:09:47 > 0:09:49No, mostly it's good. It is, yes.
0:09:49 > 0:09:52- OK, so a budget of £35,000 on this one.- Yes.
0:09:52 > 0:09:55And have you got people sitting waiting for this property?
0:09:55 > 0:09:57We do have tenants who go on the list
0:09:57 > 0:10:00if we haven't got anything suitable at the particular time,
0:10:00 > 0:10:01so we have a list in the office.
0:10:01 > 0:10:05But we'll market it with the usual websites, the press, so...
0:10:05 > 0:10:08It must be quite...not easy, but it must be easier
0:10:08 > 0:10:11if you've got people there that are keeping in touch with you,
0:10:11 > 0:10:12wanting to rent your property.
0:10:12 > 0:10:14- That must be the way forward. - It is, yes.
0:10:14 > 0:10:16We do normally rent them very quickly, yes,
0:10:16 > 0:10:18and with it being such a good area
0:10:18 > 0:10:21and good links to the city centre with the train station
0:10:21 > 0:10:24only 500 yards down the road, this will rent very well.
0:10:24 > 0:10:28- And how long do you hope it takes you?- Approximately 14 to 16 weeks.
0:10:28 > 0:10:31- Ready for people to come in? - Ready for people to rent it, yes.
0:10:31 > 0:10:34- Good luck. I wish you all the best. - Thank you very much. Thank you.
0:10:34 > 0:10:38Adrian doesn't seem fazed at all by the size of this project -
0:10:38 > 0:10:41six bathrooms, bedrooms, boilers and kitchens.
0:10:42 > 0:10:45You can find out how he gets on later in the programme.
0:10:51 > 0:10:53MUSIC: Handsworth Revolution by Steel Pulse
0:10:53 > 0:10:57Only a ten-minute drive from Birmingham city centre
0:10:57 > 0:10:59is the popular suburb of Handsworth.
0:10:59 > 0:11:03You get more property for your money here than in the city
0:11:03 > 0:11:06and you have good local amenities,
0:11:06 > 0:11:09plus there's great road links and frequent buses.
0:11:09 > 0:11:13Also, it's home to the reggae band Steel Pulse.
0:11:14 > 0:11:19- # I say the people of Handsworth - Ooh... #
0:11:19 > 0:11:21Well, two minutes' walk from the local shops
0:11:21 > 0:11:23is the property I'm here to see.
0:11:23 > 0:11:28£58-62,000 was the guide price - for what?
0:11:28 > 0:11:33Well, it's that - a three-bedroom mid-terrace.
0:11:33 > 0:11:35But just look at it! It's huge!
0:11:35 > 0:11:39# Yeah, in this big area of mine... #
0:11:44 > 0:11:46Good news.
0:11:50 > 0:11:54Wow! Well, as you might have expected, through the front door,
0:11:54 > 0:11:57and the first thing that strikes you is the height of the ceilings.
0:11:57 > 0:12:01That's terrific. Gives a real good feeling of openness.
0:12:01 > 0:12:03Yeah, it's a great start.
0:12:03 > 0:12:07Bay window there, so lots of light coming into the front sitting room.
0:12:07 > 0:12:09And then through the property, a rear sitting room here.
0:12:09 > 0:12:11Again, an open fire.
0:12:11 > 0:12:14Obviously, it would be nice to have a fireplace around it
0:12:14 > 0:12:16and then that should be really quite pleasant.
0:12:16 > 0:12:18Very steep stairs leading up to your bedrooms.
0:12:18 > 0:12:23But then, the property, not only is it very tall, it's very, very long -
0:12:23 > 0:12:25well, certainly on the ground floor here
0:12:25 > 0:12:28because you come through that room into this room which is the kitchen.
0:12:28 > 0:12:30My guess is this is an extension.
0:12:30 > 0:12:33And then, finally, right at the back of the property there,
0:12:33 > 0:12:35is your loo and bathroom.
0:12:35 > 0:12:38Now, I know I go on a lot about downstairs bathrooms,
0:12:38 > 0:12:40but imagine the scene.
0:12:42 > 0:12:45It's a cold winter's night and nature calls,
0:12:45 > 0:12:48so it's down the steep staircase, through the back sitting room,
0:12:48 > 0:12:50taking care to avoid the furniture,
0:12:50 > 0:12:52and through the narrow galley kitchen -
0:12:52 > 0:12:55probably, if you're anything like me,
0:12:55 > 0:12:59having done all this without putting the lights on.
0:12:59 > 0:13:00# Oh... #
0:13:01 > 0:13:05When you get there, it's a perfectly fine white suite,
0:13:05 > 0:13:08good enough for a rental property and fine for having a bath.
0:13:09 > 0:13:11After all...
0:13:11 > 0:13:13# What do you do in the bath? #
0:13:13 > 0:13:17Well, you could have a shower, I suppose, in this one
0:13:17 > 0:13:20and then you'd have to go back upstairs to get dressed.
0:13:21 > 0:13:25Phew, those stairs really are terribly, terribly steep.
0:13:25 > 0:13:28But good news when you get to the top of them -
0:13:28 > 0:13:30a really nice-sized bedroom.
0:13:30 > 0:13:34So, could this hold the answer to that bathroom problem?
0:13:34 > 0:13:36Well, I don't know.
0:13:36 > 0:13:39There's a big cupboard there through to the other side.
0:13:39 > 0:13:42Maybe create what they call a Jack and Jill bathroom -
0:13:42 > 0:13:43a bathroom there, a door on either side
0:13:43 > 0:13:45to be accessed by both these bedrooms.
0:13:45 > 0:13:48That would be good. But it depends on what's on that side really.
0:13:48 > 0:13:52MUSIC: You're Driving Me Crazy by Perez Prado
0:14:16 > 0:14:18That is so weird!
0:14:18 > 0:14:24That room there is definitely about six or so feet longer than this one.
0:14:24 > 0:14:29Where that cupboard is on the other side is, sort of, behind there,
0:14:29 > 0:14:34which completely scuppers my idea of building a dual-access bathroom.
0:14:34 > 0:14:40But more than that, what's going on? I need to investigate.
0:14:40 > 0:14:42MUSIC: Left Bank Two by the Noveltones
0:14:42 > 0:14:45Well, I was going to go into the attic for clues,
0:14:45 > 0:14:50but have you seen those stairs up to the top floor? So, I sent the crew.
0:14:50 > 0:14:54Anyway, the top bedroom does have a fairly substantial damp problem.
0:14:54 > 0:14:58But it's a good size and if you move towards the apex of the roof,
0:14:58 > 0:15:00there's plenty of room to stand up.
0:15:01 > 0:15:03Anyway, on my way downstairs,
0:15:03 > 0:15:08I couldn't help but notice that damp is pretty prevalent in this house.
0:15:08 > 0:15:10It's everywhere.
0:15:10 > 0:15:14But back to the case of bedroom one's expanded space.
0:15:14 > 0:15:19A-ha! At the back of the property, the conundrum is resolved
0:15:19 > 0:15:20because you can see, up there,
0:15:20 > 0:15:24the bedroom at the back there sticks out a certain distance.
0:15:24 > 0:15:26Behind it is the front bedroom and, as you can see,
0:15:26 > 0:15:30that extends a further distance above the alleyway there.
0:15:30 > 0:15:32Is that an issue? Well, it could be
0:15:32 > 0:15:35because that actually creates what's known as a flying freehold.
0:15:35 > 0:15:38Basically, your property flies over the top of this alleyway
0:15:38 > 0:15:41and, unless it's perfectly clear who owns this alleyway,
0:15:41 > 0:15:42it could create a few issues
0:15:42 > 0:15:46and some mortgage lenders, well, they don't like it.
0:15:46 > 0:15:48MUSIC: Hold Back The River by James Bay
0:15:48 > 0:15:52One man who can tell us a bit more is this local estate agent.
0:15:52 > 0:15:54We called him in for his opinions.
0:15:56 > 0:15:59There does appear to be a flying freehold with this property.
0:15:59 > 0:16:01This could cause problems obtaining a mortgage
0:16:01 > 0:16:04which would limit the market because less people could afford it.
0:16:04 > 0:16:07Well, we concur on that one. How about the damp?
0:16:07 > 0:16:10Whether it's penetrating damp or rising damp
0:16:10 > 0:16:13or whether it is just condensation, you'd only be able to tell that
0:16:13 > 0:16:16once the property's been aired out properly and fully refurbed.
0:16:16 > 0:16:21Well, whatever type of damp it is, it's not inconsiderable.
0:16:21 > 0:16:25An easy way of testing for damp is with a moisture meter,
0:16:25 > 0:16:27available at all good DIY stores.
0:16:27 > 0:16:30Now, onto my hot topic - the downstairs bathroom.
0:16:30 > 0:16:33Worth moving it?
0:16:34 > 0:16:37It would mean losing a bedroom or shortening a bedroom.
0:16:37 > 0:16:40I think most people would prefer a three-bedroom property,
0:16:40 > 0:16:42even it does mean the bathroom being downstairs.
0:16:42 > 0:16:45So, fully refurbished with three bedrooms
0:16:45 > 0:16:49and a downstairs bathroom, what would this rent out for?
0:16:49 > 0:16:52Once the property is fully renovated, I'd expect to achieve
0:16:52 > 0:16:55between £450 and £500 per calendar month as a rental.
0:16:55 > 0:16:59And with a guide price range of £58-62,000,
0:16:59 > 0:17:03what would the property value be on the open market?
0:17:03 > 0:17:06Once renovated, I think this property would achieve
0:17:06 > 0:17:09something between £90-95,000.
0:17:09 > 0:17:11A few issues to resolve -
0:17:11 > 0:17:13the flying freehold, the steep stairs, that damp
0:17:13 > 0:17:17and, of course, the bathroom which isn't ideally located.
0:17:17 > 0:17:19Still, it is, I think, even with all those things,
0:17:19 > 0:17:20a good one to go for.
0:17:20 > 0:17:23Let's see who agreed when it went under the hammer.
0:17:23 > 0:17:25Lot 114.
0:17:25 > 0:17:26Start me, if you will.
0:17:28 > 0:17:29Where shall we start, folks?
0:17:29 > 0:17:31At £40,00, I'm bid.
0:17:31 > 0:17:34At £40,000 then.
0:17:34 > 0:17:36Just the one bid. Are we all done?
0:17:37 > 0:17:40Do I have 50 anywhere? 50, sir? Thank you.
0:17:40 > 0:17:42The lot came up at the end of the day
0:17:42 > 0:17:44and it was an unconventional start.
0:17:44 > 0:17:49But bidding soon got under way and we rejoin at £62,000.
0:17:49 > 0:17:5162. 62.
0:17:51 > 0:17:54Is it 63? 63. 64?
0:17:56 > 0:17:59No? Can I see your number, madam, please?
0:17:59 > 0:18:01- Who've we got?- Striped jumper.
0:18:01 > 0:18:05- I can't see him. - Right there.- OK, I see him.
0:18:05 > 0:18:09Sorry, you're camouflaged in front of me. 64. 65? No?
0:18:09 > 0:18:14Killer bid from you at the moment, sir. At £63,000, are we all done?
0:18:16 > 0:18:19- 64.- 64, even. At 64.
0:18:19 > 0:18:23Madam? 65. At 65. And 66?
0:18:26 > 0:18:2766. 67?
0:18:29 > 0:18:32Are you sure? £66,000.
0:18:32 > 0:18:35- One, two, three. - HAMMER BANGS
0:18:35 > 0:18:38£66,000 and it's yours.
0:18:38 > 0:18:43The successful bidders were property developing duo Reaz and Sylvester.
0:18:43 > 0:18:46I met Reaz back at the house to hear their plans.
0:18:46 > 0:18:48MUSIC: Breathing Light by Nitin Sawney
0:18:48 > 0:18:50- Reaz, good to meet you.- Likewise.
0:18:50 > 0:18:52- Congratulations. - Thank you very much.
0:18:52 > 0:18:55Tell me why you wanted to buy this interesting house.
0:18:55 > 0:18:59Well, interestingly, this wasn't the house we were going for.
0:18:59 > 0:19:01My business partner, Sylvester, and I
0:19:01 > 0:19:04were actually going for another house after this.
0:19:04 > 0:19:07And I thought, "What happens if we fail there?
0:19:07 > 0:19:11"I know, I'll just go in and this will be my dress rehearsal."
0:19:11 > 0:19:14And so I started to bid and then, to my surprise,
0:19:14 > 0:19:16we actually ended up buying this house.
0:19:16 > 0:19:19I've never heard of anyone bidding as a sort of dress rehearsal
0:19:19 > 0:19:22- because you never know at auctions. You might just get it.- Yes.
0:19:22 > 0:19:26- It has, in fact, happened! - Exactly. Shock, horror.- Wow.
0:19:26 > 0:19:30But, all in all, I think Sylvester and I are really pleased
0:19:30 > 0:19:32with what we actually managed to achieve, I think,
0:19:32 > 0:19:37cos the house we were actually going for was actually over our price.
0:19:37 > 0:19:39So, you made, in hindsight, the right decision?
0:19:39 > 0:19:41Yeah, more by luck than judgement.
0:19:41 > 0:19:44Right, so tell me about you and Sylvester.
0:19:44 > 0:19:47Sylvester, I've known him for five years or so.
0:19:47 > 0:19:51He's a builder, so he then came up with the thought,
0:19:51 > 0:19:53"Well, Reaz, why don't we actually...?
0:19:53 > 0:19:55"We get on well with each other,
0:19:55 > 0:19:57"why don't we just get into a partnership?"
0:19:57 > 0:19:59Oh, great. Is this project number one?
0:19:59 > 0:20:02Our first one, our very first one.
0:20:02 > 0:20:05So, this is really exciting for us, actually.
0:20:05 > 0:20:07But we're hoping that... We've got grand plans
0:20:07 > 0:20:10that we'll actually buy some land
0:20:10 > 0:20:13and then start to build houses from scratch.
0:20:13 > 0:20:15So, what do you do when you're not doing this?
0:20:15 > 0:20:20- Um, I'm a scientist and an inventor as well.- Oh, wow, an inventor!
0:20:20 > 0:20:22That sounds good. What do you invent?
0:20:22 > 0:20:26OK, what I do is actually invent polymer dispersions.
0:20:26 > 0:20:30Some of my inventions have been used for the glue in mobile phones,
0:20:30 > 0:20:32- laptops...- Wow.
0:20:32 > 0:20:34Others have been used for the coatings
0:20:34 > 0:20:37- on the inside of food and beverage cans.- Right.
0:20:37 > 0:20:39- Are you the actual inventor? - Yeah.- Your name?
0:20:39 > 0:20:41- Name on the patents, yeah.- Really?
0:20:41 > 0:20:45Obviously not all... Some by myself, some with a team, my team.
0:20:45 > 0:20:47Wow, that's quite cool, isn't it?
0:20:47 > 0:20:49Well, it's been a very interesting job
0:20:49 > 0:20:52- and I've really thoroughly enjoyed it as well.- Right.
0:20:52 > 0:20:54And why, at this point,
0:20:54 > 0:20:57go from research scientist and inventor into property?
0:20:57 > 0:21:00At this moment, I think this is like a stepping stone.
0:21:00 > 0:21:03I'm thinking, in the future, of taking early retirement
0:21:03 > 0:21:08and so this will then help me to ease my way into retirement.
0:21:08 > 0:21:12Tell me what you and Sylvester are going to do to the property.
0:21:12 > 0:21:15Oh... I think first thing is a lot of the walls,
0:21:15 > 0:21:17we're going to plaster them
0:21:17 > 0:21:20and then make them nice and fresh and new in that sense.
0:21:20 > 0:21:22The kitchen leaves a lot to be desired.
0:21:22 > 0:21:25We're going to strip that out and likewise for the bathroom.
0:21:25 > 0:21:30And there's, obviously, a lot of work to be done in the garden as well.
0:21:30 > 0:21:33- You've got a three-storey property here.- Yes.
0:21:33 > 0:21:37And you've got the bathroom through the kitchen on the ground floor.
0:21:37 > 0:21:39Yeah, that's unusual,
0:21:39 > 0:21:42- but this is common for terrace houses in this area.- Is it?
0:21:42 > 0:21:45If you wanted to, then perhaps you could convert one of the bedrooms
0:21:45 > 0:21:48but then you lose a bedroom, so it's swings and roundabouts.
0:21:48 > 0:21:51But I think, because it's accepted,
0:21:51 > 0:21:54that we're just going to keep the same floor plan.
0:21:54 > 0:21:56Stay with that, OK.
0:21:56 > 0:22:00- So, top floor.- Yes. - Nice additional space but very damp.
0:22:00 > 0:22:04Yeah, the drains outside, there's some moss growing and things,
0:22:04 > 0:22:06so I think we just need to clear that out
0:22:06 > 0:22:09and then we're going to replaster that anyway,
0:22:09 > 0:22:12- so we'll be able to take that out. - So, what's the budget for the work?
0:22:12 > 0:22:15Oh, that's a good one.
0:22:15 > 0:22:19We... Kind of back of an envelope calculation we did was, say, well,
0:22:19 > 0:22:22- probably something like £7-10,000, that sort of thing.- OK.
0:22:22 > 0:22:25I think, because there's a sort of a ceiling,
0:22:25 > 0:22:27in terms of the price you could actually attract
0:22:27 > 0:22:30and, therefore, we don't want to go too high.
0:22:30 > 0:22:31And what timescale?
0:22:31 > 0:22:35I think we're trying to aim for about two to three months.
0:22:35 > 0:22:38And then is the plan to sell it on or to rent it out?
0:22:38 > 0:22:41Sell it on because, as I said, we want to be faithful to our ambition,
0:22:41 > 0:22:45which is to actually buy some land and build new houses.
0:22:45 > 0:22:49- But your enthusiasm for it is... - Oh, absolutely! I'm raving to go!
0:22:49 > 0:22:52I want to tear down the walls, literally.
0:22:52 > 0:22:54MUSIC: Love Me Again by John Newman
0:22:54 > 0:22:57I think Reaz should be careful which walls he tears down.
0:22:57 > 0:23:00If he tries my failed plan for a Jack and Jill bathroom,
0:23:00 > 0:23:02he might get a nasty shock.
0:23:02 > 0:23:05Obviously, one issue interesting about the property
0:23:05 > 0:23:07is the whole flying freehold
0:23:07 > 0:23:09where the back of the property is narrower than the front.
0:23:09 > 0:23:13- That's what it's called? OK. - Do you know about that?- No.
0:23:13 > 0:23:16- OK, well, something to check out probably at some point.- OK, right.
0:23:16 > 0:23:20- Er, the stairs, as you said, very steep.- Yes.
0:23:20 > 0:23:23Um...don't know what you can do about that.
0:23:23 > 0:23:25You're stuck with those, unfortunately.
0:23:25 > 0:23:29We'll certainly brighten them up, that's...
0:23:29 > 0:23:33- so it looks less daunting when you're climbing them.- Well, congratulations!
0:23:33 > 0:23:36- Thank you very much.- Good luck with it.- We might need it as well.
0:23:36 > 0:23:39- Lovely to meet you.- Thanks. - Good to see you.
0:23:40 > 0:23:43Hmm, well, there's no doubting Reaz's enthusiasm.
0:23:43 > 0:23:47You've got to love him for that. But that whole flying freehold issue?
0:23:47 > 0:23:48May not be a problem to him
0:23:48 > 0:23:51but could be when he comes to try and sell this place on,
0:23:51 > 0:23:55so...fingers crossed the solicitors can get that one sorted.
0:23:55 > 0:23:57In terms of sorting it out though,
0:23:57 > 0:24:02he's got a good assistant/ business partner, so no problems there.
0:24:02 > 0:24:03Probably(!)
0:24:03 > 0:24:07You can find out how it all turns out later in the show.
0:24:08 > 0:24:10Coming up in a former cafe and offices in Kent,
0:24:10 > 0:24:12I'm fighting off hunger pangs.
0:24:12 > 0:24:14I can't help looking at
0:24:14 > 0:24:17"Two dippy eggs and soldiers" up there - £2.99?!
0:24:19 > 0:24:23But for Reaz and Sylvester, it's a battle of a different kind.
0:24:23 > 0:24:27The battle we had between us, between our heads and our hearts.
0:24:31 > 0:24:35Back now to Orrell Park in the Walton district of Liverpool
0:24:35 > 0:24:38where, earlier, I looked around this three-storey Victorian house
0:24:38 > 0:24:41which had previously been divided up
0:24:41 > 0:24:44into five studio flats and one one-bedroom flat
0:24:44 > 0:24:47where I thought there was an obvious alteration needed.
0:24:48 > 0:24:50You've got a kitchen in here
0:24:50 > 0:24:56but, for me, it's screaming out getting rid of this wall here
0:24:56 > 0:25:00and open up a nice lounge-kitchen area.
0:25:00 > 0:25:04The property was bought by Adrian for £182,000,
0:25:04 > 0:25:08on behalf of a client who was also funding the refurbishment
0:25:08 > 0:25:10and relying on Adrian's company
0:25:10 > 0:25:12to manage and let the finished properties.
0:25:14 > 0:25:17- As to the scale of work... - It's a general refresh, really.
0:25:17 > 0:25:21New kitchens, bathrooms, new boilers, full decoration.
0:25:21 > 0:25:23What's the budget for this property?
0:25:23 > 0:25:26Slightly under £35,000 for the whole property, so £34.750.
0:25:26 > 0:25:29- We keep a close eye on the budget because it's not our money.- Yes.
0:25:29 > 0:25:32It's the client's money, so we keep a close eye on it
0:25:32 > 0:25:34and everything's done in the correct order.
0:25:34 > 0:25:38- And how long do you hope it takes you?- Approximately 14 to 16 weeks.
0:25:38 > 0:25:41- Ready for people to come in and rent it?- Ready for people to rent it, yes.
0:25:41 > 0:25:43Four and a half months later, we're back.
0:25:43 > 0:25:46Let's start in the one-bedroom flat.
0:25:46 > 0:25:49MUSIC: Ooh, Baby, I Like It Like That by Alesha Dixon
0:25:53 > 0:25:55# Oh, yeah, yeah, yeah... #
0:25:55 > 0:25:56We've taken the wall out completely
0:25:56 > 0:26:00and now we have a lovely open-plan living room-kitchen.
0:26:00 > 0:26:01Nice modern kitchen.
0:26:01 > 0:26:04It's all one nice, bright space which works really well.
0:26:05 > 0:26:09And the only dedicated bedroom at the rear of the house
0:26:09 > 0:26:11looks like you could sleep in it now.
0:26:14 > 0:26:16Finally, for the one-bed flat,
0:26:16 > 0:26:19the small bathroom is now fitted and tiled
0:26:19 > 0:26:21to a much higher specification.
0:26:25 > 0:26:28Also on the ground floor is this studio flat
0:26:28 > 0:26:30which is now bright and airy,
0:26:30 > 0:26:33thanks to the neutral colours and laminate flooring
0:26:33 > 0:26:36which Adrian will only fit downstairs.
0:26:36 > 0:26:41It's carpets upstairs to keep the noise absorbed.
0:26:41 > 0:26:44# Ooh, baby I like it like that... #
0:26:46 > 0:26:49Previously, the studio only had a shower
0:26:49 > 0:26:53but by moving the bulky radiator and plumbing in the heated towel rail,
0:26:53 > 0:26:55there's enough room for a bath now.
0:26:56 > 0:27:01On the middle floor, flats three and four have high ceilings,
0:27:01 > 0:27:04with pastel decor making the features more prominent.
0:27:04 > 0:27:07# Ooh, baby I like it like that... #
0:27:07 > 0:27:12One advantage of undertaking a refurbishment on this scale
0:27:12 > 0:27:15is the ability to get a discount for bulk buying.
0:27:16 > 0:27:21In this way, Adrian is able to pass on a significant saving to his client
0:27:21 > 0:27:26for things like kitchen fittings, carpets, doors, handles, boilers etc.
0:27:35 > 0:27:38The matching kitchen and bathroom units
0:27:38 > 0:27:41give the house a unified kind of appearance.
0:27:46 > 0:27:51On the top floor, it's a similar story in the final two studio flats.
0:27:52 > 0:27:55Although not as high in the ceiling department as the other flats,
0:27:55 > 0:27:59the eves don't seem to encroach on the living space too badly.
0:28:04 > 0:28:07The rooms feel much more rentable and fresh.
0:28:15 > 0:28:18But when developing a house of multiple occupancy like this,
0:28:18 > 0:28:22it's not all about the kitchens, bathrooms and decor.
0:28:22 > 0:28:26There are strict regulations which is something Adrian has to keep up with.
0:28:28 > 0:28:31We're up to scratch on those, where we would have
0:28:31 > 0:28:34a full fire and smoke hardwired system in place for the fire escapes
0:28:34 > 0:28:38and there's new regulations come in last year with the stairs,
0:28:38 > 0:28:40where you have to have yellow edging
0:28:40 > 0:28:43on the bottom and top step for fire escapes.
0:28:43 > 0:28:47Change in legislation like this will affect the build cost.
0:28:47 > 0:28:51But did something like these recent changes add to the timescale?
0:28:51 > 0:28:54The timescale we had on the building was 16 weeks.
0:28:54 > 0:28:57We said a maximum of 16 weeks and we were absolutely bang on
0:28:57 > 0:29:01because it came in just under. 15 weeks, it was fully finished.
0:29:01 > 0:29:07What about the predicted and precise £34,750 budget forecast?
0:29:07 > 0:29:10All the kitchens, bathrooms, central heating, everything,
0:29:10 > 0:29:13the exterior, the roof, everything was just under £34,000,
0:29:13 > 0:29:14so it was a really good result.
0:29:16 > 0:29:19Valuations on large properties like this can be significantly affected
0:29:19 > 0:29:22by things like location and rental demand.
0:29:22 > 0:29:27So, we called in two local estate agents for their opinions -
0:29:27 > 0:29:31starting with the one who saw the property before renovation.
0:29:31 > 0:29:34The work that's been carried out is to very high standards.
0:29:34 > 0:29:36Looks really, really good.
0:29:36 > 0:29:39They've made fabulous use of the space.
0:29:39 > 0:29:42They've provided every facility that the new tenants would want.
0:29:42 > 0:29:44I think it's faultless, really.
0:29:44 > 0:29:48The agents' average sale value for the whole house
0:29:48 > 0:29:52is between £380,000 and £450,00.
0:29:52 > 0:29:56After a total spend of £216,000, that could mean a top profit
0:29:56 > 0:30:01of around £234,000 before taxes and fees -
0:30:01 > 0:30:04if Adrian's client decided to sell, that is.
0:30:05 > 0:30:09But he isn't planning to sell, so what about those rental figures?
0:30:09 > 0:30:10The one-bedroom apartment,
0:30:10 > 0:30:14I would expect a rental of £600 per calendar month.
0:30:14 > 0:30:19In between £550 and £600 per calendar month.
0:30:19 > 0:30:21And the studios?
0:30:21 > 0:30:26I'd expect them to achieve £500 to £550 per calendar month.
0:30:26 > 0:30:28I would say, comfortably,
0:30:28 > 0:30:32£525 per calendar month would be very realistic.
0:30:32 > 0:30:35We've already actually let four of the apartments here.
0:30:35 > 0:30:39We've let three studios at £425 and we've let the one-bed at £475.
0:30:39 > 0:30:44That is bringing in a total income for my client of just under £32,000
0:30:44 > 0:30:47which brings in a gross rental yield of 14%
0:30:47 > 0:30:50which is absolutely really good rental return
0:30:50 > 0:30:52and my client is over the moon with that.
0:30:52 > 0:30:56And Adrian has good reason to be over the moon himself.
0:30:56 > 0:30:58In between our filming dates,
0:30:58 > 0:31:03his wife, Rebecca, had a little baby boy and they've called him Lucas.
0:31:03 > 0:31:06So, as well as organising a refurbishment,
0:31:06 > 0:31:08Adrian had paternity to deal with
0:31:08 > 0:31:10and he still brought the project in on time.
0:31:10 > 0:31:13Not bad for an ex-antique dealer!
0:31:19 > 0:31:22Welcome to Ramsgate, east Kent,
0:31:22 > 0:31:26one of the great English seaside towns of the 19th century.
0:31:26 > 0:31:28It's the only royal harbour in the country
0:31:28 > 0:31:32and is a member of the ancient Confederation of Cinque Ports.
0:31:32 > 0:31:37Ramsgate's main industries are still tourism and fishing.
0:31:37 > 0:31:40It's got one of the largest marinas on the English south coast
0:31:40 > 0:31:44and a bustling harbour, also a busy high street
0:31:44 > 0:31:47with lots of shops and cafes scattered around.
0:31:47 > 0:31:50Now, that is exactly what I'm here to see today -
0:31:50 > 0:31:52a cafe, and it's just up there.
0:31:53 > 0:31:55Being so close to a busy high street area
0:31:55 > 0:32:00with lots of passing customers has got to be a bonus for a cafe.
0:32:00 > 0:32:04MUSIC: A Good Cafe On George Street by The Rosie Taylor Project
0:32:08 > 0:32:13It's not actually just a cafe I'm here to see.
0:32:13 > 0:32:17It's this whole building. It's three storeys, it's a mid-terrace
0:32:17 > 0:32:19and the substantial property went to auction
0:32:19 > 0:32:23with a guide price of £140 to £150,000.
0:32:23 > 0:32:26I'm going to go inside and take a look around.
0:32:29 > 0:32:32Now, inside, a really big space.
0:32:32 > 0:32:35It's in reasonable condition which is good news.
0:32:35 > 0:32:37You can really imagine lots of seasidey Ramsgate people
0:32:37 > 0:32:41sitting in here eating their sandwiches and muffins.
0:32:41 > 0:32:44The cafe only closed, sadly, for business about five months ago.
0:32:44 > 0:32:48We've even got a lift over here, look. I don't think it works though.
0:32:48 > 0:32:50You've got the serving counter over there,
0:32:50 > 0:32:54the kitchen out the back here, empty of equipment completely.
0:32:54 > 0:32:56That's been cleaned out.
0:32:56 > 0:32:59So, you can see, it all needs a bit of work, a new refit,
0:32:59 > 0:33:03but so far, so good and I can't helping looking at
0:33:03 > 0:33:06"Two dippy eggs and soldiers" up there - £2.99?!
0:33:08 > 0:33:11Also on this floor is a customer toilet
0:33:11 > 0:33:14and there's access out the back into a small backyard
0:33:14 > 0:33:17which is rather taken up with this fire escape
0:33:17 > 0:33:20which services the two upper floors.
0:33:20 > 0:33:23There's a large, dry basement which is perfect for storage.
0:33:23 > 0:33:25However, there is a downside to this property -
0:33:25 > 0:33:29the only way to access the upstairs space is through the cafe.
0:33:29 > 0:33:33Ideally, you'd want to create a separate entrance.
0:33:34 > 0:33:36Well, the upper two floors above the cafe
0:33:36 > 0:33:39were previously used as office space.
0:33:39 > 0:33:42On the first floor here, there's a bit of an odd layout
0:33:42 > 0:33:46with this internal room with this rather strange window.
0:33:46 > 0:33:49And then you've got two rooms in here to the front.
0:33:49 > 0:33:53Again, you can see it's all in reasonable condition.
0:33:53 > 0:33:56The only major thing is you might need some new windows.
0:33:56 > 0:33:58Come and look at these.
0:33:58 > 0:34:00But don't forget this is a conservation area,
0:34:00 > 0:34:02so you will need to get permission to change these
0:34:02 > 0:34:05and you may be restricted with what you can do
0:34:05 > 0:34:08and it might be a costly exercise.
0:34:08 > 0:34:10As well as those large offices,
0:34:10 > 0:34:14there's countless corridors and a spacious ladies' loo on this level,
0:34:14 > 0:34:16so plenty of space to play with.
0:34:16 > 0:34:19And then more stairs up to the second floor and yet more rooms.
0:34:19 > 0:34:23This place really is mammoth. It goes on and on.
0:34:23 > 0:34:28Up here on the top floor, there are five more rooms all around.
0:34:28 > 0:34:31You've got lots of space here. What could you use it all for?
0:34:31 > 0:34:34You'll probably have to keep the ground floor as a commercial unit
0:34:34 > 0:34:37because of its location within the shopping area.
0:34:37 > 0:34:41But recent planning changes mean it is so much easier to get permission
0:34:41 > 0:34:45to convert former office space like this into residential flats.
0:34:45 > 0:34:48You will have to sort separate access
0:34:48 > 0:34:50to get in down the bottom into the front.
0:34:50 > 0:34:51You've got to bear in mind
0:34:51 > 0:34:53the additional cost of converting the property,
0:34:53 > 0:34:55including the fixtures and the fittings
0:34:55 > 0:34:57and, of course, fire and soundproofing,
0:34:57 > 0:34:59but if you do get permission,
0:34:59 > 0:35:02I think creating flats up here would be financially worthwhile.
0:35:08 > 0:35:10So, this property has a lot of potential.
0:35:10 > 0:35:13But what does a local estate agent make of it?
0:35:13 > 0:35:15The options at the moment, I feel,
0:35:15 > 0:35:18would be to convert the building into flats.
0:35:18 > 0:35:21I think the first and second floor would be for conversion.
0:35:21 > 0:35:24If the council allow you to, it would be nice to get
0:35:24 > 0:35:26the ground floor of the shop converted as well,
0:35:26 > 0:35:29but if not, it would just be commercial ground floor,
0:35:29 > 0:35:30residential first and second.
0:35:30 > 0:35:35But how likely are the local council to grant permission to convert this?
0:35:35 > 0:35:38I think they've recently relaxed a few rules and regulations
0:35:38 > 0:35:40which means that, potentially,
0:35:40 > 0:35:42they'll let you convert office space no problem.
0:35:42 > 0:35:44They'd rather have a building occupied and let out
0:35:44 > 0:35:47and council tax in than have it standing empty.
0:35:47 > 0:35:51So, what values are we talking about here for a one or two-bed flat?
0:35:51 > 0:35:53A two-bedroom flat, I personally feel
0:35:53 > 0:35:55would go for anywhere between £90,000
0:35:55 > 0:35:59all the way up to £110,000, depending on spec.
0:35:59 > 0:36:01The sale value, I think, for a one-bedroom flat
0:36:01 > 0:36:05would be anywhere between £75,000 up to £85,000.
0:36:05 > 0:36:07And what about the rental for a two-bedroom flat?
0:36:07 > 0:36:10On average, we get between about £550 per calendar month
0:36:10 > 0:36:14- to £650 per calendar month. - And a one-bed?
0:36:14 > 0:36:16For a one-bedroom conversion,
0:36:16 > 0:36:18I think you'd get anywhere between £450
0:36:18 > 0:36:20all the way up to £500 per calendar month.
0:36:20 > 0:36:24Commercial rental values for a ground floor cafe
0:36:24 > 0:36:27would be around £7,200 per annum
0:36:27 > 0:36:31and just the cafe and basement could sell for around £110,000,
0:36:31 > 0:36:34so there is room to make some money with this one.
0:36:34 > 0:36:36This really is a huge property,
0:36:36 > 0:36:38right in the heart of Ramsgate town centre,
0:36:38 > 0:36:41which offers plenty of options for business use
0:36:41 > 0:36:43or possible conversion into flats.
0:36:43 > 0:36:46But it's a lot of building to take on,
0:36:46 > 0:36:49so let's find out who bid for this one at the auction.
0:36:50 > 0:36:53We move now to lot 62 which is a ground-floor former cafe.
0:36:53 > 0:36:55You've got the basement,
0:36:55 > 0:36:57the first and second floors as well.
0:36:57 > 0:37:00Lots of potential here. Lot 62.
0:37:00 > 0:37:02We've got a guide of 140 to 150.
0:37:02 > 0:37:04Start me at the bottom end of the guide. 140.
0:37:04 > 0:37:07140, straight in. Thank you very much.
0:37:07 > 0:37:09At £140,000, I'm bid.
0:37:09 > 0:37:12142, do I see? 142.
0:37:12 > 0:37:13145, sir.
0:37:14 > 0:37:18Was that one bid and finish? 142, I have.
0:37:18 > 0:37:20At £142,000, I'm bid.
0:37:20 > 0:37:24You're out, on my right. At £142,000.
0:37:24 > 0:37:28145, do I see anywhere else? Can I tempt you again with another £1,000?
0:37:28 > 0:37:31He says, "No." 143, do I see?
0:37:31 > 0:37:34Well, then, for the first time, if there's no further bids,
0:37:34 > 0:37:37at £142,000, the gentleman's bid on my left.
0:37:37 > 0:37:41For the second time at £142,000.
0:37:41 > 0:37:45For the third and final time, £142,000, then. Are you all done?
0:37:45 > 0:37:49HAMMER BANGS Sold at £142,000. One bid.
0:37:49 > 0:37:51Or two bids.
0:37:51 > 0:37:53Regular viewers of the show
0:37:53 > 0:37:56may just recognise the successful bidder of the Ramsgate cafe.
0:37:56 > 0:37:59It's Adrian, who's appeared on Homes Under The Hammer before.
0:37:59 > 0:38:02Last time we saw Adrian,
0:38:02 > 0:38:04he bought a former travel agent's with rooms above
0:38:04 > 0:38:08which he then converted into an Indian deli and cafe
0:38:08 > 0:38:10with a two-bedroom flat above.
0:38:11 > 0:38:15Adrian likes the mix of commercial and residential properties.
0:38:15 > 0:38:17I met up with him and his son, William,
0:38:17 > 0:38:19back at his latest purchase to hear his plans.
0:38:22 > 0:38:25Guys, congratulations. Lovely to see you again, Adrian.
0:38:25 > 0:38:28- It's been almost a year since we met last?- That's right, yes.
0:38:28 > 0:38:32- Saw you in Ashford.- Yes, in that huge travel agency you bought.
0:38:32 > 0:38:35- That's right.- And you brought your son, William, with you today.- Yeah.
0:38:35 > 0:38:37So, now, guys, I want to know the story.
0:38:37 > 0:38:39Why did you want to buy this at auction
0:38:39 > 0:38:41and what are you going to do with it?
0:38:41 > 0:38:44Well, I think it's got a lot of potential.
0:38:44 > 0:38:49- I was quite surprised at the price I paid for it at auction.- Which was?
0:38:49 > 0:38:53- It was £142,000.- How much would you have paid for this?
0:38:53 > 0:38:55I was willing to go up to about £170,000.
0:38:56 > 0:38:59But it was previously on the market for £235,000,
0:38:59 > 0:39:02so I think I got quite a good deal on it.
0:39:02 > 0:39:04So, tell me about your purchases
0:39:04 > 0:39:06and tell me what you've been up to in the last year.
0:39:06 > 0:39:09I've been continuing to buy and sell and rent property,
0:39:09 > 0:39:12continually going to the auctions.
0:39:12 > 0:39:14Sometimes I've been lucky, sometimes not so lucky.
0:39:14 > 0:39:16William, is this the first time you've seen it today?
0:39:16 > 0:39:19- Yeah, I just came along. - So, be honest.
0:39:19 > 0:39:21What do you think when your dad drags you around places like this?
0:39:21 > 0:39:23It's OK.
0:39:23 > 0:39:26I'm not too fond of going to auctions as that can take quite a while,
0:39:26 > 0:39:28especially if you don't pick up something.
0:39:28 > 0:39:31But when we go to the properties, I find them quite interesting.
0:39:31 > 0:39:33Do you like to see the finished result
0:39:33 > 0:39:36because, in a state like this, it's not that exciting?
0:39:36 > 0:39:38Yeah, I prefer to come once at the start
0:39:38 > 0:39:40and then see it at the end, not too much in between.
0:39:40 > 0:39:42MUSIC: Theme from The Office
0:39:42 > 0:39:45Well, that's obviously the ideal situation.
0:39:45 > 0:39:49Come at the start, visit at the end and then leave the rest to dad.
0:39:49 > 0:39:51But property developing usually involves
0:39:51 > 0:39:54quite a bit more hard graft than that.
0:39:55 > 0:39:58Shall we start off by talking about what you're going to be doing,
0:39:58 > 0:40:00because it's a commercial premises, obviously?
0:40:00 > 0:40:02Yes, it is at the moment.
0:40:02 > 0:40:05Obviously, it's an existing restaurant use,
0:40:05 > 0:40:09so we're going to continue to keep it as a commercial premises,
0:40:09 > 0:40:11- either a shop or a restaurant. - Mmm-hmm.
0:40:11 > 0:40:13But we need to subdivide it,
0:40:13 > 0:40:16so that we can create some separate access
0:40:16 > 0:40:19from the ground floor up to the upper parts.
0:40:19 > 0:40:22And then the plan with the upper parts is then, hopefully,
0:40:22 > 0:40:24to convert them into residential use.
0:40:24 > 0:40:27So, how many units do you hope to squeeze from upstairs?
0:40:27 > 0:40:30I think we can get two two-bedroom apartments upstairs,
0:40:30 > 0:40:32based on the existing layout.
0:40:32 > 0:40:35OK, and you think that'll be better than lots of one-bedroom apartments?
0:40:35 > 0:40:38- Have you worked out the finances? - Yeah, I think so.
0:40:38 > 0:40:40Because of the way the stairs are laid out,
0:40:40 > 0:40:43it's probably going to be easier to try and keep the existing layout
0:40:43 > 0:40:46as much as we can, without knocking too many walls around.
0:40:46 > 0:40:48What would happen if you didn't get planning permission
0:40:48 > 0:40:50to convert the upstairs into flats?
0:40:50 > 0:40:54I think plan B would be to keep the shop unit as it is
0:40:54 > 0:40:58and then just let out the existing offices as serviced offices.
0:40:58 > 0:41:01Mmm-hmm. So, what sort of budget have you got to do the work?
0:41:01 > 0:41:05We've got £60,000, so ideally, we want to keep the whole project,
0:41:05 > 0:41:09including purchase price, within about £200,000.
0:41:09 > 0:41:10I remember you had a rule of thumb
0:41:10 > 0:41:13that you wouldn't travel further than, was it 60 miles
0:41:13 > 0:41:15- or 60 minutes or...?- Yeah. - Something like that,
0:41:15 > 0:41:18because I know you're based in Surrey in Guildford.
0:41:18 > 0:41:20Yeah, this is slightly beyond my normal territory.
0:41:20 > 0:41:23I was going to say, this a bit further out for you.
0:41:23 > 0:41:25Once you get to Ramsgate, you can't go any further
0:41:25 > 0:41:26or else you'll end up in the sea,
0:41:26 > 0:41:28so this is as far as I'm prepared to go.
0:41:28 > 0:41:32Adrian hopes the whole project will take just six to nine months,
0:41:32 > 0:41:33depending on planning.
0:41:33 > 0:41:37He will project manage himself, making frequent visits to the site,
0:41:37 > 0:41:39so he'll definitely be clocking up the miles
0:41:39 > 0:41:41between his home in Surrey and here.
0:41:41 > 0:41:44So, Adrian, are you keen for your son to follow in your footsteps?
0:41:44 > 0:41:47Yeah, I'd like William to take over the family business one day.
0:41:47 > 0:41:50But this hasn't always been the family business, has it?
0:41:50 > 0:41:53No, I've only been doing property for about seven years.
0:41:53 > 0:41:56Before that I was in financial services but...
0:41:56 > 0:41:59I used to work for other people then, now I just work for myself.
0:41:59 > 0:42:02So, how does property compare with financial services?
0:42:02 > 0:42:05Oh, I much prefer it. I wish I'd done it earlier, actually.
0:42:05 > 0:42:07What is it you love about property developing?
0:42:07 > 0:42:09I just like all the variety, really -
0:42:09 > 0:42:11viewing different properties,
0:42:11 > 0:42:14working out solutions to problems, meeting different people.
0:42:14 > 0:42:15It's an interesting business to be in.
0:42:15 > 0:42:18William, you've been to the auctions. Does dad ever let you bid?
0:42:18 > 0:42:21No, he doesn't trust me with putting his hand up.
0:42:21 > 0:42:24He only ever bids once or twice on his houses anyway, so...
0:42:24 > 0:42:27Maybe in a few years to come he'll let you. Can you imagine?
0:42:27 > 0:42:30- I make sure he keeps his hands in his pockets.- Yeah!
0:42:30 > 0:42:33Guys, congratulations. It's been really lovely seeing you again.
0:42:33 > 0:42:35- Well done.- Thanks very much. - Thank you.- Thanks, William.
0:42:37 > 0:42:40Adrian has been in property for quite a few years now
0:42:40 > 0:42:42and this isn't the first time he's bought a shop
0:42:42 > 0:42:45and converted the floors above into flats.
0:42:45 > 0:42:48Changing this former cafe should be a piece of cake
0:42:48 > 0:42:50for this experienced developer,
0:42:50 > 0:42:55but will Adrian be able to persuade William to follow in his footsteps?
0:42:55 > 0:42:57Will this property inspire him?
0:42:57 > 0:43:01You can find out how father and son get on later in the programme.
0:43:03 > 0:43:06We've seen how our first buyer got on but what about the others?
0:43:06 > 0:43:09- Yes, did everything go to plan? - It's time to find out.
0:43:11 > 0:43:13Back now to Handsworth, Birmingham,
0:43:13 > 0:43:17where Carl Palmer, drummer from Emerson, Lake and Palmer was born.
0:43:17 > 0:43:20MUSIC: Hoedown by Emerson, Lake and Palmer
0:43:20 > 0:43:23It's also where, earlier, I examined
0:43:23 > 0:43:25this three-storey, three-bedroom mid-terrace
0:43:25 > 0:43:28with a potential flying freehold over this alleyway.
0:43:30 > 0:43:35The house, bathroom and kitchen extension were bought for £66,000
0:43:35 > 0:43:39by scientist and inventor Reaz and builder Sylvester,
0:43:39 > 0:43:41who had just got into business together.
0:43:42 > 0:43:46- Is this project number one?- Our first one, our very first one.- Wow.
0:43:46 > 0:43:49So, yeah, this is really exciting for us, actually.
0:43:49 > 0:43:52But they didn't intend to buy it at the auction.
0:43:52 > 0:43:54We were actually going for another house
0:43:54 > 0:43:57and I thought, "What happens if we fail there?
0:43:57 > 0:44:00"I know, I'll just go in and this will be my dress rehearsal."
0:44:00 > 0:44:04I've never heard of anyone bidding as a dress rehearsal
0:44:04 > 0:44:07because you never know at auction, you might just get it!
0:44:07 > 0:44:10- It has, in fact, happened! - Exactly. Shock, horror.
0:44:10 > 0:44:15The "dress rehearsal" was scheduled to take two to three months,
0:44:15 > 0:44:18but there was a substantial damp problem.
0:44:18 > 0:44:21It was almost like it had been built on a river bed
0:44:21 > 0:44:25and there was what looked like penetrating damp in the attic.
0:44:25 > 0:44:27But Reaz thought he knew the root cause.
0:44:27 > 0:44:31The drains outside, there's some moss growing and things,
0:44:31 > 0:44:33- so I think we just need to clear that out.- OK.
0:44:33 > 0:44:37I doubted it would be that simple with this much damp,
0:44:37 > 0:44:40so how does it look six months later?
0:44:42 > 0:44:45# Hold back the river Let me look in your eyes
0:44:45 > 0:44:49# Hold back the river so I... #
0:44:52 > 0:44:55Well, the damp's been banished and it looks great.
0:44:55 > 0:44:58And what a lovely surprise - an upstairs bathroom,
0:44:58 > 0:45:01which Reaz and Sylvester have created
0:45:01 > 0:45:03in the previously unreachable loft space.
0:45:03 > 0:45:07# Stop for a minute and see where you hide
0:45:07 > 0:45:09# Hold back the river... #
0:45:09 > 0:45:13Modern units and two-tone, clean tile lines are a striking addition
0:45:13 > 0:45:16and, what's more, it's upstairs.
0:45:17 > 0:45:19Down one floor.
0:45:19 > 0:45:21Now, remember the first floor front bedroom
0:45:21 > 0:45:25had the benefit of flying over the alleyway?
0:45:26 > 0:45:29Like most of the house, it was replastered.
0:45:29 > 0:45:32New carpets and colour scheme in neutral shades
0:45:32 > 0:45:34lift the room immensely.
0:45:35 > 0:45:39And Reaz's plan to distract your mind from the climb upstairs
0:45:39 > 0:45:42with bright colours... Well, he's certainly done that!
0:45:44 > 0:45:47The back bedroom on this floor is more muted
0:45:47 > 0:45:50and the downstairs rooms speak for themselves.
0:45:54 > 0:45:57# Hold back the river Let me look in your eyes
0:45:57 > 0:46:01# Hold back the river so I... #
0:46:01 > 0:46:04Apart from a few finishing touches,
0:46:04 > 0:46:06the new kitchen units and tiled floor
0:46:06 > 0:46:09make the most of the narrow galley style.
0:46:10 > 0:46:13# Lonely water
0:46:14 > 0:46:17# Lonely water... #
0:46:17 > 0:46:19The bathrooms have been retiled,
0:46:19 > 0:46:22keeping the two-tone style of the new en suite.
0:46:22 > 0:46:24That and the newly tiled floor
0:46:24 > 0:46:27form the perfect backdrop for the new fixtures.
0:46:29 > 0:46:35New, that is, apart from the bath which you may recognise from before
0:46:35 > 0:46:38because it was deemed good enough to keep.
0:46:38 > 0:46:41Who better to tell us about the refurbishment
0:46:41 > 0:46:43than Reaz and Sylvester?
0:46:43 > 0:46:46The biggest problem we had was actually the roof.
0:46:46 > 0:46:49There was a lot of leaking which had occurred
0:46:49 > 0:46:50and some of the tiles were broken.
0:46:50 > 0:46:55They'd allowed the water to seep in onto the walls, sort of thing,
0:46:55 > 0:46:59and so we had to rectify the problem there.
0:46:59 > 0:47:01Sylvester's originally from Slovakia
0:47:01 > 0:47:04and has been a builder for over 20 years.
0:47:04 > 0:47:08But the roof here was one of the worst he'd encountered.
0:47:08 > 0:47:11We needed to make new insulation of the roof
0:47:11 > 0:47:14because it was leaking inside. It was big problem.
0:47:14 > 0:47:16It was very bad condition.
0:47:17 > 0:47:19The roof repair was a necessity,
0:47:19 > 0:47:24but can you say the same about rendering rear and front elevations?
0:47:24 > 0:47:28The battle we had between us, between our heads and our hearts,
0:47:28 > 0:47:30because we wanted to do so much,
0:47:30 > 0:47:33but there was always this ceiling price for the area
0:47:33 > 0:47:35and we were quite mindful of that.
0:47:35 > 0:47:37It was a difficult task at times.
0:47:37 > 0:47:41A difficult task that's taken them three months longer than scheduled.
0:47:41 > 0:47:43So, what happened?
0:47:43 > 0:47:46We actually spent three months actually refurbishing MY house
0:47:46 > 0:47:50and there was an extension which Sylvester and his team put up
0:47:50 > 0:47:52and so we, kind of, effectively lost three months.
0:47:52 > 0:47:55Well, that's one way of getting a builder, I suppose -
0:47:55 > 0:47:57go into business with one.
0:47:57 > 0:48:01Were there any unexpected things to come out of this project?
0:48:02 > 0:48:05As it's changed and evolved, you think,
0:48:05 > 0:48:09"Well, actually, this is our first baby, as it were."
0:48:09 > 0:48:11Well, let's see if this baby's worth all the labour
0:48:11 > 0:48:14that's gone into it, not to mention cost.
0:48:14 > 0:48:17They paid £66,000 at auction
0:48:17 > 0:48:22and Reaz calculates a further £19,000 on refurbishment and fees,
0:48:22 > 0:48:26making a grand total of £85,000.
0:48:26 > 0:48:28We invited two estate agents along
0:48:28 > 0:48:31to give us their estimates and opinions.
0:48:34 > 0:48:36I especially like the en suite upstairs
0:48:36 > 0:48:38and the rendering of the front elevation
0:48:38 > 0:48:40has made a huge difference.
0:48:40 > 0:48:43I particularly like the loft conversion with the en suite
0:48:43 > 0:48:45and the kitchen and bathroom are presented
0:48:45 > 0:48:49- to a good standard as well.- What about the flying freehold issue?
0:48:49 > 0:48:52The flying freehold over the tunnel entry I don't think is an issue.
0:48:52 > 0:48:53It's quite common.
0:48:53 > 0:48:56Flying freeholds generally aren't too much of an issue.
0:48:56 > 0:48:59They're quite common in this location.
0:48:59 > 0:49:03Well, that's lucky, but as I've said, they can be tricky
0:49:03 > 0:49:06when it comes to selling on, so always worth checking out.
0:49:06 > 0:49:09Now, Reaz and Sylvester were planning to sell on
0:49:09 > 0:49:13but, out of interest, what rental values would they achieve?
0:49:13 > 0:49:17Anything between £500 and £550 per calendar month.
0:49:17 > 0:49:21A rental in the region of £500 to £550 per calendar month.
0:49:21 > 0:49:25Nearly an 8% yield. Are you tempted, guys?
0:49:25 > 0:49:31- It's potentially a possibility for us, yes.- Yeah, I think is good idea.
0:49:31 > 0:49:35We still, we see which one is the best way.
0:49:35 > 0:49:37Le's check out the market price.
0:49:37 > 0:49:41I would put the property on the market at offers around £100,000.
0:49:41 > 0:49:45I would market this property at £100,000.
0:49:45 > 0:49:48It's not a million miles away where we'd expect it to be.
0:49:48 > 0:49:54Potentially, a £15,000 profit. Could it be money towards that new build?
0:49:54 > 0:49:56We're going to the auction in a couple of days' time.
0:49:56 > 0:50:01We've got an eye on...on a plot of land which is quite near here,
0:50:01 > 0:50:03about a mile from here.
0:50:03 > 0:50:06And, if we're successful, that dream will come true.
0:50:06 > 0:50:08And until that time,
0:50:08 > 0:50:12Reaz is going to fill his hours by studying for yet another PhD.
0:50:12 > 0:50:15Me? I think I'll stick to flying freeholds, thanks.
0:50:23 > 0:50:27Earlier, I was in Ramsgate, in the district of Thanet, east Kent,
0:50:27 > 0:50:30where I looked around this three-storey commercial unit
0:50:30 > 0:50:33which was formerly a cafe with offices above.
0:50:33 > 0:50:35The main problem I found
0:50:35 > 0:50:39was that you can only access the offices through the cafe.
0:50:39 > 0:50:43Even so, there was plenty of square footage.
0:50:43 > 0:50:45You've got the serving counter over there,
0:50:45 > 0:50:49the kitchen out the back here, empty of equipment completely.
0:50:49 > 0:50:50That's been cleaned out.
0:50:50 > 0:50:53So, you can see it all needs a bit of work, a new refit,
0:50:53 > 0:50:55but so far, so good.
0:50:55 > 0:50:59Here I met Adrian who had brought along his son, William,
0:50:59 > 0:51:04to talk about what he sees as a snip of a purchase at £142,000.
0:51:04 > 0:51:07- What are you going to do with it? - I think it's got a lot of potential.
0:51:07 > 0:51:10It was previously on the market for £235,000,
0:51:10 > 0:51:14- so I think I got quite a good deal on it.- That IS a good deal.
0:51:14 > 0:51:18So, we're going to continue to keep it as a commercial premises,
0:51:18 > 0:51:20- either a shop or a restaurant. - Mmm-hmm.
0:51:20 > 0:51:22But we need to subdivide it,
0:51:22 > 0:51:24so that we can create some separate access
0:51:24 > 0:51:28from the ground floor up to the upper parts.
0:51:28 > 0:51:31And then the plan with the upper parts is then, hopefully,
0:51:31 > 0:51:32to convert them into residential use.
0:51:32 > 0:51:35And, William, is this the first time you've seen it today?
0:51:35 > 0:51:37- Yeah, I just came along. - What do you think of it?
0:51:37 > 0:51:39Do you think it's a good one?
0:51:39 > 0:51:42I don't really give much of an opinion on his purchases,
0:51:42 > 0:51:44but I guess I just go along with them.
0:51:44 > 0:51:48Well, they've proved themselves profitable in the past,
0:51:48 > 0:51:51so maybe that's the best way. Now, one thing's for sure -
0:51:51 > 0:51:56to turn this around will require an egg-cellent strategy.
0:51:56 > 0:51:59And certainly not one but two dippy.
0:51:59 > 0:52:03Adrian was working on a timescale of six to nine months.
0:52:03 > 0:52:05We're back one year later.
0:52:05 > 0:52:07- # Love cats- Ba-ba-ba-ba-ba-ba-ba-ba
0:52:07 > 0:52:11- # We miss you hissed the love cats - Ba-ba-ba-ba-ba-ba-ba-ba... #
0:52:11 > 0:52:14And it looks like the cats in Thanet will be loving the change
0:52:14 > 0:52:16at the former greasy spoon.
0:52:16 > 0:52:20MUSIC: Love Cats by The Cure
0:52:24 > 0:52:26# I love you, let's go
0:52:30 > 0:52:33# Ooh, solid gold... #
0:52:37 > 0:52:42And the storage area that had old desks and drawers scattered around,
0:52:42 > 0:52:46now, well, it's got plenty of reserve stock for future sale.
0:52:46 > 0:52:48In fact, there's plenty of reserve stock
0:52:48 > 0:52:50everywhere on the ground floor!
0:52:50 > 0:52:53MUSIC: Love Cats by The Cure
0:52:55 > 0:53:01So, what happened and what about the plans for the flats?
0:53:01 > 0:53:02The council were fine.
0:53:02 > 0:53:04They were quite pleased to see
0:53:04 > 0:53:06the upper parts converted to residential.
0:53:06 > 0:53:09Their main criteria was that they wanted to ensure
0:53:09 > 0:53:11that there was continued employment in the shop,
0:53:11 > 0:53:14so we've kept that as the commercial premises
0:53:14 > 0:53:15with the residential upstairs.
0:53:15 > 0:53:18It was soon after buying the property
0:53:18 > 0:53:21that this local charity were looking for larger premises.
0:53:21 > 0:53:25- # Cool for cats- Cool for cats... #
0:53:25 > 0:53:27Adrian offered them a tenancy at will.
0:53:27 > 0:53:29That's where a tenant takes occupation
0:53:29 > 0:53:33without an agreement that specifies a definite rental period
0:53:33 > 0:53:37or even rental schedule, just in case you didn't know.
0:53:37 > 0:53:42But it would appear that Adrian had been a victim of the shop's success.
0:53:43 > 0:53:47Well, the shop tenants have been really pleased with the shop
0:53:47 > 0:53:49and trading has gone really well.
0:53:49 > 0:53:52So, they don't really want to move out.
0:53:52 > 0:53:55But we need them to move out in order to do the development work.
0:53:55 > 0:53:57So, at the moment,
0:53:57 > 0:54:00we're waiting for them to find temporary accommodation,
0:54:00 > 0:54:02then we'll start the development and then, hopefully,
0:54:02 > 0:54:05they'll move back in once the development is finished.
0:54:05 > 0:54:08But there have been other benefits of having a tenant.
0:54:08 > 0:54:11Obviously, we've been receiving rent for the property
0:54:11 > 0:54:14and also we haven't had to pay business rates.
0:54:14 > 0:54:17And how are the plans for the upper levels going?
0:54:17 > 0:54:21Well, Adrian's finally got them passed for further development.
0:54:21 > 0:54:22Here on the ground floor,
0:54:22 > 0:54:26we've got a separate entrance into the flats above
0:54:26 > 0:54:29with a separate door to the shop's.
0:54:29 > 0:54:31And then, up on the first floor,
0:54:31 > 0:54:35there's a two-bedroom apartment and the same up on the second floor.
0:54:35 > 0:54:40We've used the space which was the old men's and ladies' toilet
0:54:40 > 0:54:44and created a separate laundry room and utility area.
0:54:44 > 0:54:47Externally, we've got to keep the same windows
0:54:47 > 0:54:48as we have at the moment.
0:54:51 > 0:54:54Adrian was hoping to replace the metal frame windows
0:54:54 > 0:54:56which can be prone to rusting
0:54:56 > 0:54:58but the building is in a conservation area
0:54:58 > 0:55:01and so its character may have to be retained.
0:55:01 > 0:55:04Surprisingly, though, metal windows like these
0:55:04 > 0:55:08are still being manufactured after over 150 years,
0:55:08 > 0:55:11so it's possible to get units that look similar
0:55:11 > 0:55:15with added benefits like polyester powder coating and double glazing.
0:55:17 > 0:55:19So, with all this going on,
0:55:19 > 0:55:23how was the commute from Adrian's home in Surrey to Ramsgate?
0:55:23 > 0:55:26Living away from the property hasn't been a great problem.
0:55:26 > 0:55:30Once we set up the shop tenancy, I haven't had to do a great deal
0:55:30 > 0:55:32and they just keep on paying the rent
0:55:32 > 0:55:34and we've left it at that so far.
0:55:34 > 0:55:38And have there been any unforeseen twists and turns
0:55:38 > 0:55:40whilst renovating the property?
0:55:40 > 0:55:43Well, we found some cooking oil in the basement
0:55:43 > 0:55:48and I approached a local fish and chip shop owner over the road
0:55:48 > 0:55:51and he was very pleased to come and take that away for us,
0:55:51 > 0:55:53so that saved on our site clearance budget.
0:55:53 > 0:55:57Adrian's business model is to buy to let premises
0:55:57 > 0:56:01of, principally, mixed commercial and residential use.
0:56:01 > 0:56:03So, we called in two property experts -
0:56:03 > 0:56:06first, the chap who'd seen the property a year ago.
0:56:06 > 0:56:09How has the development delay affected things?
0:56:10 > 0:56:12The market's had time to improve over time,
0:56:12 > 0:56:14prices have gone up a little bit as well.
0:56:14 > 0:56:17Rental values have increased and the election is out the way,
0:56:17 > 0:56:21so now things are just simmering down and getting back to normal.
0:56:21 > 0:56:25Having waited 12 months, the market really has improved of late
0:56:25 > 0:56:27and I think it's going to be...
0:56:27 > 0:56:30He will be able to maximise his investment.
0:56:32 > 0:56:34Adrian's refurbishment budget has risen
0:56:34 > 0:56:38from his original £60,000 to £80,000.
0:56:38 > 0:56:42This is mainly due to the costs associated with removing the lift.
0:56:43 > 0:56:48This will take his total spend to £222,000.
0:56:48 > 0:56:50So, what kind of return is he looking at?
0:56:52 > 0:56:55As far as the rental's concerned for the flats,
0:56:55 > 0:56:58because demand is so high at the moment,
0:56:58 > 0:57:02I could be imagining around about £550 per calendar month.
0:57:02 > 0:57:07I think between anywhere from £550 to £650 per calendar month,
0:57:07 > 0:57:09depending on spec.
0:57:09 > 0:57:11Yeah, that's quite a big range.
0:57:11 > 0:57:14I would say probably about £600 a month for the flats.
0:57:14 > 0:57:16I think the potential for the shop
0:57:16 > 0:57:21would be probably between £7,500 per annum to £10,000 per annum.
0:57:21 > 0:57:23I think, obviously, having a lease on the shop,
0:57:23 > 0:57:28you're going to be looking at around about £7,500 per annum.
0:57:28 > 0:57:33Well, we're currently renting the shop for £9,600 a year.
0:57:33 > 0:57:35I think, once it's done up,
0:57:35 > 0:57:39we should be able to push that up to about £11,000-£12,000 a year.
0:57:39 > 0:57:43Assuming Adrian gets that top rental of £12,000
0:57:43 > 0:57:47and his estimated rental for the flats of £600 per calendar month,
0:57:47 > 0:57:51that would give him a yield of nearly 12%.
0:57:51 > 0:57:53So, is this the sort of business
0:57:53 > 0:57:56that Adrian's son, William, would be happy to continue?
0:57:56 > 0:58:00I'm hoping to get him involved, in terms of managing the budget
0:58:00 > 0:58:02and looking after the figures, as he's quite good at maths,
0:58:02 > 0:58:05so, hopefully, that will be a nice job for him to do.
0:58:08 > 0:58:11We'll see you next time with more stories from the auction rooms.
0:58:11 > 0:58:13Yes, so make sure you join us for more Homes Under The Hammer.
0:58:13 > 0:58:16- We hope to see you very soon. ALL:- Goodbye.