0:00:02 > 0:00:05Hello. Now, with the ebbing and flowing of the property market,
0:00:05 > 0:00:07it can be quite hard to know when to jump in.
0:00:07 > 0:00:10Yeah, yeah, hold on a minute, but don't jump straight in.
0:00:10 > 0:00:13I think maybe just dip your toe. Don't you start small.
0:00:13 > 0:00:16And with all that in mind, why not see what's on offer under the hammer?
0:00:42 > 0:00:46Well, buying under the hammer can be a good way to get the most
0:00:46 > 0:00:47out of the property market.
0:00:47 > 0:00:51Yeah, lots of people are finding their next property at auction.
0:00:51 > 0:00:53Here's three that certainly did.
0:00:53 > 0:00:56Let's have a look and see what they bought.
0:00:56 > 0:00:59I'm at a three-bed in Buckinghamshire in a village
0:00:59 > 0:01:01called Olney, trying to turn lonely into homely.
0:01:01 > 0:01:05Go radical with this. Just take this wall out completely.
0:01:06 > 0:01:09I'm busting a few moves in this bar in Burnley.
0:01:09 > 0:01:11They've left in the dance floor for me.
0:01:11 > 0:01:15I'm going out, I'm going out.
0:01:17 > 0:01:20And I'm muttering about clutter and stressing over mess
0:01:20 > 0:01:22in a four-bed house in Croydon.
0:01:24 > 0:01:26What a load of rubbish.
0:01:26 > 0:01:29All these properties were bought at auction.
0:01:29 > 0:01:30We'll find out who got them
0:01:30 > 0:01:34and how much they paid when these homes went under the hammer.
0:01:34 > 0:01:35We all done? Sold.
0:01:39 > 0:01:43The market town of Olney near Milton Keynes, Buckinghamshire,
0:01:43 > 0:01:47has been home to a pancake race through its streets since 1445,
0:01:47 > 0:01:50finishing at the church of St Peter and St Paul.
0:01:51 > 0:01:55Like many English villages, there's a silent letter here,
0:01:55 > 0:02:00so Olney is pronounced "Own-ey". I feel sorry for that solitary L.
0:02:00 > 0:02:03# ..Only the lonely... #
0:02:03 > 0:02:08Well, however you pronounce it, will I be pronouncing the property
0:02:08 > 0:02:12I'm here to see a good one to go for? Well, let's find out.
0:02:12 > 0:02:17It's a terrace, three bedrooms, guide price is £195,000 plus,
0:02:17 > 0:02:20it looks all right from the outside. I like the brick. Let's go in.
0:02:24 > 0:02:26OK.
0:02:27 > 0:02:32So what have we got? Er... corridor, a hole in the floor,
0:02:32 > 0:02:34that's not a good start, is it?
0:02:34 > 0:02:38It looks like the floorboards might need checking out.
0:02:38 > 0:02:40Looks like somebody's done a bit of work already,
0:02:40 > 0:02:45all the skirting boards have gone and it's all been stripped back.
0:02:45 > 0:02:49It's a start. Front living room is there, it's a decent size.
0:02:49 > 0:02:52Nice. Lots of light coming in from the bay window,
0:02:52 > 0:02:54but you know what? I'd go radical with this.
0:02:54 > 0:02:57Straight away this is the rear sitting room.
0:02:57 > 0:02:59I would just take this wall out completely, open it up.
0:02:59 > 0:03:03I've seen that done on loads of occasions and, you know, you think,
0:03:03 > 0:03:06"Oh, what am I doing?" when you knock that wall down.
0:03:06 > 0:03:08Do it. Do it, do it.
0:03:08 > 0:03:12Make it super open plan, make one huge, great, lovely living space.
0:03:12 > 0:03:15Erm...you won't regret it.
0:03:15 > 0:03:20Moving through the property, fairly traditional place to find it,
0:03:20 > 0:03:24the kitchen. It obviously needs total refurbishment.
0:03:24 > 0:03:26Slight downside, we have got the loo at the back here
0:03:26 > 0:03:29and I guess that's the only loo in the property,
0:03:29 > 0:03:31so that's something you're going to want to sort.
0:03:31 > 0:03:33We'll have to explore it more to find out if we can
0:03:33 > 0:03:36put that upstairs, but, overall, it's got a nice feel to it
0:03:36 > 0:03:39and with a bit of playing around, it could be outstanding.
0:03:39 > 0:03:42# ..Outstanding... #
0:03:42 > 0:03:47OK, I admit outstanding wouldn't be at the top of most people's lists
0:03:47 > 0:03:50of words to describe this place as it stands,
0:03:50 > 0:03:52but look for the positives.
0:03:52 > 0:03:56Solid brick construction, double glazing and, as with many
0:03:56 > 0:03:58Victorian properties like these,
0:03:58 > 0:04:00rear access to a decent-sized garden.
0:04:03 > 0:04:06So, let's have a look upstairs to find out
0:04:06 > 0:04:11if I think this three-bed terrace is potentially still...
0:04:11 > 0:04:13# ..Outstanding... #
0:04:15 > 0:04:19So up here, then, smallish bedroom towards the back.
0:04:19 > 0:04:22Medium-sized bedroom in the middle.
0:04:22 > 0:04:25Fairly narrowish feeling, sort of, landing area
0:04:25 > 0:04:28and then through into your front bedroom, which is actually
0:04:28 > 0:04:32a really nice size, but, of course, no bathroom,
0:04:32 > 0:04:34so looking around, is there something you could do?
0:04:34 > 0:04:38Well, I guess it's all about changing the walls, isn't it?
0:04:38 > 0:04:41Taking them down, replacing them somewhere else
0:04:41 > 0:04:45and then that comes down to the whole issue of are they load-bearing?
0:04:45 > 0:04:47If they are, you need to be supporting them high up
0:04:47 > 0:04:50so that the entire house doesn't collapse down on top of you.
0:04:50 > 0:04:53If they're not load-bearing, stud partitions, then, it's all OK.
0:04:53 > 0:04:56Yeah, there's probably enough room to do something,
0:04:56 > 0:04:59just needs a bit of playing around with on a piece of paper.
0:05:03 > 0:05:05Oh, just before I head downstairs, you know
0:05:05 > 0:05:08I was talking about load-bearing walls?
0:05:08 > 0:05:10I reckon there might be a bit of good news.
0:05:13 > 0:05:16Because that wall there, in between the landing here
0:05:16 > 0:05:19and that bedroom, is, in fact, a stud partition wall.
0:05:19 > 0:05:23Basically, made of wood with a piece of plasterboard on either side,
0:05:23 > 0:05:27so you should be able to remove it without too many issues.
0:05:27 > 0:05:30The only thing basically you need to check is go up in the loft
0:05:30 > 0:05:31and see which way the joists go
0:05:31 > 0:05:35and as long as they run 90 degrees to it and are not supported by it,
0:05:35 > 0:05:39then you can take it down without destroying the house.
0:05:39 > 0:05:40Result.
0:05:40 > 0:05:42We called in a local estate agent to give us
0:05:42 > 0:05:46an idea of the potential profits of this house
0:05:46 > 0:05:51given that the guide price is £195,000 plus.
0:05:51 > 0:05:55With this property developed to a three-bedroom,
0:05:55 > 0:05:58refurbished to a good standard, I would suggest
0:05:58 > 0:06:03a price guide of £275,000
0:06:03 > 0:06:05with a view of achieving
0:06:05 > 0:06:08a minimum of £265,000,
0:06:08 > 0:06:13but pitch the price guide at 275 and see what the market returns.
0:06:13 > 0:06:15And what about the rental market?
0:06:15 > 0:06:21The rental market should return £900 per calendar month.
0:06:23 > 0:06:27Well, obviously a bit of work needed to sort this place out,
0:06:27 > 0:06:29but you know what? Definitely worth it.
0:06:29 > 0:06:34Good location, nice layout, yeah, a good opportunity.
0:06:34 > 0:06:37Let's see who agreed when it went under the hammer.
0:06:37 > 0:06:41We go now to lot 119, near Milton Keynes in Buckinghamshire.
0:06:41 > 0:06:43200 anywhere?
0:06:43 > 0:06:46180 then? Try and help.
0:06:46 > 0:06:49- How much?- 180.
0:06:49 > 0:06:52180 you've go. 181 anywhere?
0:06:52 > 0:06:55181. Thank you.
0:06:55 > 0:06:57182. 183. 184.
0:06:57 > 0:07:03Bidding is a two-horse race until we rejoin at £196,000.
0:07:03 > 0:07:07If not, it's with you, sir. The bid's £196,000.
0:07:07 > 0:07:11It's against you at the back of the room. Anybody else? How much?
0:07:11 > 0:07:14197. 198. 199.
0:07:14 > 0:07:16A telephone bidder then joins
0:07:16 > 0:07:22and bids escalate to where we rejoin at £213,000.
0:07:22 > 0:07:25213. 214. 215.
0:07:25 > 0:07:28216. 217.
0:07:28 > 0:07:31Yes or no, 217? 218. 219.
0:07:31 > 0:07:36219? If not, 218 for the first.
0:07:36 > 0:07:39218 for the second.
0:07:39 > 0:07:42218 for the third and final time. All done?
0:07:42 > 0:07:43Sold.
0:07:43 > 0:07:47The successful bid of 218,000 came from Lesley
0:07:47 > 0:07:49and her fiance Matt.
0:07:49 > 0:07:52They have been the ones hard at work stripping out
0:07:52 > 0:07:55the property as soon as they finalised the purchase,
0:07:55 > 0:07:59so I was keen to find out what their plans were.
0:07:59 > 0:08:02- Lesley, Matt, good to see you both. - And you.- Congratulations.
0:08:02 > 0:08:05Tell me why you wanted to buy this place.
0:08:05 > 0:08:08We were looking for a property to do up,
0:08:08 > 0:08:12looking in all sorts of areas, but this one came up
0:08:12 > 0:08:15and it's in a lovely little town, so we decided to go for it.
0:08:15 > 0:08:17Is this something you've done before or...
0:08:17 > 0:08:19No, no, it's the first one.
0:08:19 > 0:08:22- So, obviously, it's in a bit of a state at the moment.- Yep.
0:08:22 > 0:08:26- But I understand you're partly responsible.- Pretty much, yeah.
0:08:26 > 0:08:27Done it all, yeah.
0:08:27 > 0:08:30Tell me what you've done in the short period between actually
0:08:30 > 0:08:33completing and meeting you.
0:08:33 > 0:08:36Lesley's taken all the ceiling tiles off, all the wallpaper
0:08:36 > 0:08:39and we've decided to take everything,
0:08:39 > 0:08:40the skirting board out...
0:08:40 > 0:08:43- Right.- ..and a couple of doorframes. - So you did the skirting board thing?
0:08:43 > 0:08:46- Yeah.- Matt did actually want to keep them at first, but I objected
0:08:46 > 0:08:48because they didn't match and they were all different.
0:08:48 > 0:08:52- Is this what you do full-time or... - I'm a tiler by trade.
0:08:52 > 0:08:58- What about you, Lesley?- Well, I gave up my job last year to do this.
0:08:58 > 0:09:00Right. What were you doing before?
0:09:00 > 0:09:03- I worked for an insurance company in London.- So, what prompted the move?
0:09:03 > 0:09:07- Had a lottery win.- A lottery win? - Yeah.- Oh, fantastic!
0:09:07 > 0:09:09Yea, we didn't know on the Saturday that we'd won
0:09:09 > 0:09:12and then, we were doing a car-boot sale on the Sunday morning
0:09:12 > 0:09:15and checked my numbers, and I knew my numbers,
0:09:15 > 0:09:20so stood there sort of dumbfounded that my numbers had come up.
0:09:20 > 0:09:24- And how many numbers did you get? - All of them.- All of them?!- Yeah.
0:09:24 > 0:09:27For those of us who are nosy parkers -
0:09:27 > 0:09:28I certainly count myself as one -
0:09:28 > 0:09:34Lesley won nearly £800,000 in the split jackpot. Ker-ching!
0:09:34 > 0:09:39So, I always imagine what that moment must feel like,
0:09:39 > 0:09:42but to somebody who's gone through it, what was it like?
0:09:42 > 0:09:46- Oh...- Surreal.- Completely surreal. - Yeah.- Yeah.
0:09:46 > 0:09:49Just really surreal and we were checking the numbers
0:09:49 > 0:09:51doing the car boot and we'd got all these people
0:09:51 > 0:09:53rummaging through the stuff and...
0:09:53 > 0:09:57- You were actually at the car-boot sale selling?- Yeah, just get rid of some stuff.
0:09:57 > 0:10:01This little lady, she's going, just as we were checking the numbers,
0:10:01 > 0:10:04I was going, "25..." or whatever the numbers were, and this lady goes,
0:10:04 > 0:10:06"Oh, wouldn't it be lovely if you won the lottery?"
0:10:06 > 0:10:09Or we won the lottery, or someone won the lottery, and we was like,
0:10:09 > 0:10:13"Yeah, it'd be fantastic." Like, I can't say nothing.
0:10:13 > 0:10:16That's amazing.
0:10:16 > 0:10:19You used some of that money to get into the world of property
0:10:19 > 0:10:21- and also give up the job?- Yes.
0:10:21 > 0:10:24That's it, yeah, that's exactly what we wanted to do.
0:10:24 > 0:10:26- Wait a minute, you've given up your job?- Yeah.
0:10:26 > 0:10:30- And you're still working full-time? - Yeah.- Run that by me.
0:10:30 > 0:10:33- Just not allowed to give up. Tried, failed.- Don't see a problem.
0:10:33 > 0:10:35THEY LAUGH
0:10:35 > 0:10:40That's a classic! Right. OK. That seems really fair.
0:10:40 > 0:10:41I enjoy what I do as well,
0:10:41 > 0:10:44so I don't really want to be sitting in all day at home.
0:10:44 > 0:10:46Anyway, tell me about the house then,
0:10:46 > 0:10:47what are you going to do to it?
0:10:47 > 0:10:50The main thing we want to do is move the bathroom from the back
0:10:50 > 0:10:52of the house upstairs,
0:10:52 > 0:10:56so we're going to nick a little bit of room from the two bedrooms.
0:10:56 > 0:10:59We're going to open up the dining room and the lounge.
0:10:59 > 0:11:02Right, so this wall behind me is going to go?
0:11:02 > 0:11:06Yep, that will be coming down to reveal an archway.
0:11:06 > 0:11:08Unfortunately, the beautiful conservatory behind me
0:11:08 > 0:11:11- is probably going to go.- Really?
0:11:11 > 0:11:15Lesley and Matt are cutting their developer's teeth on this property
0:11:15 > 0:11:17and want to sell on when complete.
0:11:17 > 0:11:22They feel the rental yields in the area are not that attractive.
0:11:22 > 0:11:24They have set a £20,000 to 25,000 budget
0:11:24 > 0:11:28and hope to sell for around £30,000 more than their total costs.
0:11:30 > 0:11:34They reckon they will work on this full-time for the next 12 weeks
0:11:34 > 0:11:37with Matt, of course, using his tiling skills.
0:11:38 > 0:11:42- And are you going to get your hands dirty?- Oh, yes, definitely.
0:11:42 > 0:11:44Yeah, I like a bit of DIY. I've got my overalls ready.
0:11:44 > 0:11:48- What are you going to do? You've obviously stripped the wallpaper. - Yeah.
0:11:48 > 0:11:49- That was a heck of a job. - Yeah, it was.
0:11:49 > 0:11:53- Well, I'll be helping take the walls down.- Great.
0:11:53 > 0:11:57- Just helping out wherever really. - Right. Well, congratulations.
0:11:57 > 0:11:59- Thank you very much.- Good luck with it.- Thank you.
0:11:59 > 0:12:02Nice to meet you and look forward to seeing how you get on.
0:12:02 > 0:12:05- Yes, definitely.- Lovely to meet you.
0:12:05 > 0:12:08So, Lesley and Matt using some of their lottery winnings to
0:12:08 > 0:12:11get into the world of property.
0:12:11 > 0:12:15What a great story and I think they've chosen well with this house.
0:12:15 > 0:12:18How are they going to get on sorting it out?
0:12:18 > 0:12:19You can find out later in the show.
0:12:23 > 0:12:25# One, two, three, four... #
0:12:26 > 0:12:30Burnley in Lancashire is a former mill town, but millions of pounds
0:12:30 > 0:12:34of regeneration money are being spent to go against the grain of decline
0:12:34 > 0:12:37and make this place the cream of the crop again.
0:12:37 > 0:12:41And it's in this area that is scheduled for a makeover
0:12:41 > 0:12:43is the property I'm here to see.
0:12:43 > 0:12:47It's a two-storey public house with living accommodation upstairs.
0:12:47 > 0:12:52It has a guide price of £50,000. Let's take a look.
0:12:52 > 0:12:56Now that looks like a '70s disco to me.
0:13:00 > 0:13:03# Well, you can tell by the way I use my walk
0:13:03 > 0:13:05# I'm a woman's man No time to talk
0:13:05 > 0:13:08# The music's loud The women warm
0:13:08 > 0:13:10# I've been kicked around since I was born
0:13:10 > 0:13:12# And now it's all right It's OK
0:13:12 > 0:13:15# And you may look the other way
0:13:15 > 0:13:17# We can try to understand
0:13:17 > 0:13:19# The New York Times' effect on man
0:13:19 > 0:13:22# Whether you're a brother or whether you're a mother
0:13:22 > 0:13:24# You're stayin' alive Stayin' alive
0:13:24 > 0:13:27# Feel the city breakin' and everybody shakin'
0:13:27 > 0:13:29# And we're stayin' alive Stayin' alive
0:13:29 > 0:13:32# Ah, ha, ha, ha... #
0:13:32 > 0:13:34Oh, dear. That's disappointing.
0:13:34 > 0:13:37But it's a huge space. You see the bar's there.
0:13:37 > 0:13:39The toilet's at the back of the building and there,
0:13:39 > 0:13:43through there is the kitchen as well, but one thing they have done,
0:13:43 > 0:13:45they've left in the dance floor for me.
0:13:45 > 0:13:47I'm going out. I'm going out.
0:13:47 > 0:13:51'But one major plus point, no, sorry, hold on, the rhythm's got me.'
0:13:51 > 0:13:54I'm coming back. I'm coming back.
0:13:55 > 0:13:59Not feeling that disco fever? OK, back to the property, then.
0:14:02 > 0:14:04Through in here you've got another bar,
0:14:04 > 0:14:07more toilets at the back of the room as well and what looks like
0:14:07 > 0:14:11it would've been a pool table area there, maybe a bit of a dance floor.
0:14:11 > 0:14:14More seating. We seem to be getting two bars for the price of one.
0:14:14 > 0:14:16I like it.
0:14:16 > 0:14:20What I particularly like is that both bars have separate entrances,
0:14:20 > 0:14:24so you could divide the two nicely to create two separate premises.
0:14:24 > 0:14:27However, I do have one major concern.
0:14:27 > 0:14:30There's damp running throughout the ceiling.
0:14:30 > 0:14:33The bucket's a bit of a giveaway, isn't it?
0:14:33 > 0:14:35And if it's been going on for a while,
0:14:35 > 0:14:38it could have created rot in the roof joists.
0:14:38 > 0:14:40This is suddenly less Saturday Night Fever
0:14:40 > 0:14:43and more Monday morning aches and pains.
0:14:43 > 0:14:47Any suggestions where the leak is coming from? Let's boogie on.
0:14:49 > 0:14:53So I'm upstairs and I know this used to be a four-bedroom apartment.
0:14:53 > 0:14:57It's in a lot worse wear than what downstairs is,
0:14:57 > 0:15:01a lot more work to be done, but there's lots of space again
0:15:01 > 0:15:05and when you've got this much space, you've got so many options.
0:15:05 > 0:15:07It's a bit of a rabbit warren, so I'm going to have a look
0:15:07 > 0:15:09and see what I can find.
0:15:09 > 0:15:11And it's big. Very big.
0:15:11 > 0:15:14In fact, I think you could get several flats up here
0:15:14 > 0:15:17and who knows about the ground floor.
0:15:17 > 0:15:20One thing's for sure, its disco days are over
0:15:20 > 0:15:26and there's 559 square metres to play with here. There's huge potential.
0:15:28 > 0:15:32But I forgot, I was in search of the source of the water coming in.
0:15:32 > 0:15:37It says, "Push to open." So I will.
0:15:37 > 0:15:39Look at this roof space here.
0:15:39 > 0:15:42I wasn't expecting all this space out here at all.
0:15:42 > 0:15:44There's so many options you can do with a space like this.
0:15:44 > 0:15:46You can actually build on it,
0:15:46 > 0:15:50you could make it into a nice roof garden, maybe a bit of a terrace.
0:15:50 > 0:15:52Depending on what you do with the upstairs, it could be an area
0:15:52 > 0:15:57for the residents of flats maybe to come and use as their garden.
0:15:57 > 0:16:00At the moment though, it's the area that's letting in the water
0:16:00 > 0:16:03so that needs to be fixed pronto.
0:16:03 > 0:16:05I'm getting ahead of myself here
0:16:05 > 0:16:07thinking of apartments and roof terraces.
0:16:07 > 0:16:10There's planning permission to consider first.
0:16:10 > 0:16:15The Town and Country Planning Act classes buildings and their uses.
0:16:15 > 0:16:18Now, currently this building has two uses.
0:16:18 > 0:16:21Downstairs, which is the bar, is classed as A4
0:16:21 > 0:16:23because it's a drinking establishment
0:16:23 > 0:16:28and up here, it's classed as a C3 because it's a residential dwelling.
0:16:28 > 0:16:30If you do want to change the use of a building,
0:16:30 > 0:16:33you have to ask the local authority's permission and it's a bit
0:16:33 > 0:16:36of a gamble because you never know what they're going to say.
0:16:36 > 0:16:38You could end up with a pub, like it or not.
0:16:40 > 0:16:44And even if you have a pub or any commercial space on the ground floor,
0:16:44 > 0:16:48that can reduce the saleability of any residential space.
0:16:48 > 0:16:51Lots of potential and lots of pitfalls.
0:16:51 > 0:16:53The most important thing to do
0:16:53 > 0:16:55when you're buying a property like this is research.
0:16:55 > 0:17:01The second thing is research and the third thing is do more research.
0:17:01 > 0:17:05So let's start the research by asking a local property expert
0:17:05 > 0:17:09what he would do with this huge lot guiding at £50,000.
0:17:10 > 0:17:12If this were my property, I would turn the first floor
0:17:12 > 0:17:16into residential apartments, which would suit the market
0:17:16 > 0:17:19really well in a town centre, and the ground floor I would
0:17:19 > 0:17:25turn into some commercial property, pop-up shops with low rents, easy
0:17:25 > 0:17:29for new businesses to come in and out if the businesses don't work.
0:17:29 > 0:17:33But how many flats could you get in this first floor space?
0:17:33 > 0:17:36Based on accommodation available, we'd advise
0:17:36 > 0:17:39two two-bed apartments and one one-bedroom apartment.
0:17:39 > 0:17:43So, potentially, three flats. What kind of values might they have?
0:17:45 > 0:17:47Two-bed apartment in this area
0:17:47 > 0:17:52I would imagine sales value would be around £65,000.
0:17:52 > 0:17:54Rental value for a two-bed apartment
0:17:54 > 0:17:56would be around £500 per calendar month.
0:17:56 > 0:18:01One-bed apartment would be valued around £45,000-50,000
0:18:01 > 0:18:04and the rental value for something like that would typically
0:18:04 > 0:18:09be around £400-425 per calendar month.
0:18:09 > 0:18:13Three flats in the format the agent suggests could have a total
0:18:13 > 0:18:17sales value of £180,000, or a monthly rental income
0:18:17 > 0:18:23of around £1,425 and that's before we even think about commercial units.
0:18:24 > 0:18:27Sales value of the commercial units will probably
0:18:27 > 0:18:31be around 40,000 per unit, although that would depend on the size
0:18:31 > 0:18:37of the unit, how many units the new owner put into the ground floor.
0:18:37 > 0:18:41In terms of rental value, it would be around £400 per calendar month.
0:18:41 > 0:18:43As soon as I saw this place I liked it.
0:18:43 > 0:18:47Let's see who agreed with me when it went under the hammer.
0:18:47 > 0:18:48Lot 26.
0:18:48 > 0:18:52You've all read the particulars, you've all seen it in the catalogue
0:18:52 > 0:18:55and hopefully you've all viewed, so the guide's 50 on this one.
0:18:55 > 0:19:01Start me at 50. We need a bid. Bid me at 40. 40 here. At £40,000.
0:19:01 > 0:19:06At 40, are we done? I'll take two. 42. 44.
0:19:06 > 0:19:1144 I've got. 46. 48. 50. 52.
0:19:12 > 0:19:1752 I'm bid. 54. Shake of the head. Here at 52.
0:19:17 > 0:19:21First time then, just the two of you. You're back in at one.
0:19:21 > 0:19:2653, 54, 55, 56, 57.
0:19:28 > 0:19:32Not sure? No, here at 56.
0:19:32 > 0:19:37First time then at £56,000. Second time at 56.
0:19:37 > 0:19:42If you're all done and out, I'm selling. Back in at 57, 58. Nearly.
0:19:44 > 0:19:51Might get it. Nine. 60. 61. Shake of the head.
0:19:51 > 0:19:56Even number then at £60,000. For the first time and the second time.
0:19:56 > 0:20:02If you're all done and out at £60,000, we are selling this at 60.
0:20:02 > 0:20:04Well done.
0:20:04 > 0:20:06With the hammer coming down at 60 grand, I think
0:20:06 > 0:20:08Ian has got himself a bargain.
0:20:08 > 0:20:14He's an experienced developer but this is a big task to undertake.
0:20:14 > 0:20:18I wanted to know if he had the moves to bring the boogie back to Burnley.
0:20:18 > 0:20:21- Ian, nice to meet you. - And you.- Congratulations, pal.
0:20:21 > 0:20:28- Thank you very much.- What made you buy this huge place?- Need you ask?
0:20:28 > 0:20:30As soon as I come in, I just looked at it
0:20:30 > 0:20:34and I had the ideas of what I wanted to do here, straightaway.
0:20:34 > 0:20:37What did you picture that you could do with this place as soon as you came in?
0:20:37 > 0:20:41As soon as I saw it, the retail units with the space,
0:20:41 > 0:20:44obviously downstairs, and then upstairs, the apartments.
0:20:44 > 0:20:48On this floor, we're going to split this into five retail units.
0:20:48 > 0:20:50Obviously take the bar out and everything
0:20:50 > 0:20:53and make those retail units, affordable retail units
0:20:53 > 0:20:56- in the town centre.- So you're getting rid of this lovely bar?- Yes.
0:20:56 > 0:21:00- It's yours if you want it cheap. - It's going cheap?- Very cheap!
0:21:01 > 0:21:05Ian had plans to turn one bar into five long commercial units
0:21:05 > 0:21:09and then the other bar into one unit before renting it out.
0:21:09 > 0:21:12A smart move as having more businesses in here will mean
0:21:12 > 0:21:16that he's not out of pocket if one trader goes bust.
0:21:16 > 0:21:17How about those apartments?
0:21:20 > 0:21:23Upstairs we're going to do three luxury apartments.
0:21:23 > 0:21:26They'll all have their own terraces, so big terraces outside.
0:21:26 > 0:21:29- So, one-bedrooms or two-beds? - Just one bedrooms.
0:21:29 > 0:21:32- Three one-bedroom apartments upstairs?- Yeah.
0:21:32 > 0:21:37Fantastic, loads of space for that. And the roof area as well?
0:21:37 > 0:21:38We're going to make the terraces there
0:21:38 > 0:21:42so they all get their own terrace, so they get a terrace as well.
0:21:42 > 0:21:44I used to stand on the terraces as a kid.
0:21:44 > 0:21:47Ian has a great plan here, but I wonder
0:21:47 > 0:21:51if it will have any takers for his renovated properties?
0:21:51 > 0:21:53Have you looked and have you researched that
0:21:53 > 0:21:56- it is needed in the town centre? - Yes, of course.
0:21:56 > 0:22:00Obviously, Burnley Football Club now doing really well, so they
0:22:00 > 0:22:05have an academy here so they bring all the lads here training, so I get
0:22:05 > 0:22:08phone calls already from the club for some of my other apartments.
0:22:08 > 0:22:13Clever. Very clever. I'm good friends with Matthew Gilks, the keeper.
0:22:13 > 0:22:15- I know Sean Dyche because I played with him at Millwall.- Fantastic.
0:22:15 > 0:22:18- What I'll do is make a phone call for you.- Thanks.
0:22:18 > 0:22:21Just pop the cheque in the post, it will be fine.
0:22:21 > 0:22:23Nice to know I can still make a little bit of money
0:22:23 > 0:22:25out of football, isn't it?
0:22:25 > 0:22:28But Ian is splashing the cash here.
0:22:28 > 0:22:31150 grand for a high-end finish.
0:22:31 > 0:22:34But there is that all-important question of planning.
0:22:36 > 0:22:39Before we bought it, quickly spoke to the planning people
0:22:39 > 0:22:44and my architect did all the drawings as soon as we...
0:22:44 > 0:22:47- The gavel went down. - Everything's in place.
0:22:47 > 0:22:48Straight into planning,
0:22:48 > 0:22:51so I think we're about three, four weeks into planning already.
0:22:51 > 0:22:54They don't want boarded-up buildings like this
0:22:54 > 0:22:59and the council are spending 3.5 million, which I already
0:22:59 > 0:23:02knew about, so they're going to be putting in all new paving
0:23:02 > 0:23:07and it's coming down just to my area, so I'm sure
0:23:07 > 0:23:11they're not going to complain about me doing this property up.
0:23:12 > 0:23:15There's no doubt Ian has come in at a good time here,
0:23:15 > 0:23:19but this building does have its issues. Like that damp.
0:23:19 > 0:23:23A flat roof and a burst boiler are apparently the culprits.
0:23:23 > 0:23:26Completely fixable but could they end up costing money?
0:23:26 > 0:23:29We're going to be doing the works over the damp, we're going to
0:23:29 > 0:23:32reboard it everything, so it's not going to cost us that much.
0:23:32 > 0:23:36In the next 16 weeks, Ian and his building team are going to rip up
0:23:36 > 0:23:39the dance floor, quite literally.
0:23:39 > 0:23:41And while I think his plans are the right ones,
0:23:41 > 0:23:44Ian has reasons to be nostalgic about this building.
0:23:46 > 0:23:48When it opened 25, 30 years ago,
0:23:48 > 0:23:52I did the DJing for the opening night.
0:23:52 > 0:23:56- That's brilliant! That was 25 years ago?- Yeah, 25 years plus.
0:23:56 > 0:23:57Was it buzzing?
0:23:57 > 0:24:01- It was, yeah. It were piked. - Because you were DJing?
0:24:01 > 0:24:04So now you've returned to somewhere you know very well.
0:24:04 > 0:24:06Yeah, so I knew the building anyway.
0:24:06 > 0:24:08I've been in here, like I say, when I were DJing.
0:24:08 > 0:24:12- 16 weeks, 150 grand, everybody's waiting to come in.- Yeah.
0:24:12 > 0:24:15- Good luck, pal. I know it's going to be a success.- Thank you.
0:24:15 > 0:24:18- Take care, pal.- Thank you very much.
0:24:18 > 0:24:20They say that life comes around in circles
0:24:20 > 0:24:22and that's exactly what seems to be the case here.
0:24:22 > 0:24:25Ian's returning to one of his old haunts where
0:24:25 > 0:24:29he used to DJ many years ago, spinning those 45s to the beat.
0:24:29 > 0:24:32Now he's back with new plans for this posting which should
0:24:32 > 0:24:34secure its future.
0:24:34 > 0:24:38You can find out how he gets on later on in the programme.
0:24:38 > 0:24:42'Coming up - I'm burning up with ideas for this Croydon four-bed,
0:24:42 > 0:24:44'but before we're cooking with gas...'
0:24:44 > 0:24:47clean the oven because it needs it!
0:24:50 > 0:24:53And in Burnley, is it disco inferno or a damp squib?
0:24:53 > 0:24:55When I drive into town and I see it,
0:24:55 > 0:24:57I feel proud and it looks really good.
0:25:02 > 0:25:06We return now to Buckinghamshire and the market town of Olney,
0:25:06 > 0:25:08pronounced "Own-ey" by the locals,
0:25:08 > 0:25:10but I can't help pronounce the L myself.
0:25:11 > 0:25:16# I know I'm not the only one... #
0:25:16 > 0:25:19For it was here that I saw this three-bedroom mid-terrace.
0:25:19 > 0:25:23Bought at auction for 218,000.
0:25:23 > 0:25:25This is the rear sitting room.
0:25:25 > 0:25:28I would just take this wall out completely, open it up.
0:25:28 > 0:25:32I've seen that done on loads of occasions and, you know, you think,
0:25:32 > 0:25:34"Oh, what am I doing?" when you knock that wall down.
0:25:34 > 0:25:36Do it.
0:25:36 > 0:25:39All very well for me to say, as it wasn't my project.
0:25:39 > 0:25:43It belonged to Lesley and Matt and Lesley had recently found
0:25:43 > 0:25:45she could go full-time into property development
0:25:45 > 0:25:47with this her first project.
0:25:49 > 0:25:52What prompted you into the sort of property-developing world?
0:25:52 > 0:25:55Had a little bit of money come my way recently.
0:25:55 > 0:25:56Had a lottery win.
0:25:56 > 0:26:00- A lottery win?- Yeah.- Oh, fantastic! How many numbers did you get?
0:26:00 > 0:26:02- All of them.- All of them?!
0:26:02 > 0:26:07Whoa! In Lesley's case, it was a set of numbers used every week
0:26:07 > 0:26:09since the lottery began.
0:26:09 > 0:26:11They don't seem to have been as lucky though with their three to
0:26:11 > 0:26:16four month timescale, as we're back six months later to see the changes.
0:26:16 > 0:26:24# ..Take me home with you tonight
0:26:24 > 0:26:30# I'm not going to make it on my own
0:26:30 > 0:26:32# My own two feet... #
0:26:35 > 0:26:38I'm pleased to see Lesley and Matt have done exactly what
0:26:38 > 0:26:43I would've done. Lesley got her hammer out and took down that wall.
0:26:43 > 0:26:44Nice one!
0:26:50 > 0:26:53The once cramped kitchen, which led to the downstairs bathroom,
0:26:53 > 0:26:56is now much brighter.
0:26:56 > 0:27:00With an inviting flow to patio doors into the back garden.
0:27:08 > 0:27:12Matt's expert touch at tiling isn't just present in the kitchen.
0:27:12 > 0:27:16Victorian-style tiles grace the entrance hall, invoking
0:27:16 > 0:27:18the era the house was built.
0:27:25 > 0:27:28The polished floors, neutral colour scheme and carpet
0:27:28 > 0:27:31are a far cry from the sorry state it was in.
0:27:36 > 0:27:38There is a newcomer upstairs
0:27:38 > 0:27:41having relocated from the back of the kitchen.
0:27:44 > 0:27:47The family bathroom, with a bath, has been squeezed in.
0:27:53 > 0:27:56You can tell who's been busy here too with the MATT finish.
0:27:59 > 0:28:02But has it robbed too much space from the bedrooms?
0:28:07 > 0:28:08Let's see.
0:28:23 > 0:28:27Do Lesley and Matt feel moving the bathroom has paid off?
0:28:27 > 0:28:31We decided the bathroom needed to be moved upstairs.
0:28:31 > 0:28:34It's more practical for families we believe.
0:28:34 > 0:28:37And the best way to do it was to nick about two metres
0:28:37 > 0:28:41out of the main bedroom and two metres out of the middle bedroom,
0:28:41 > 0:28:43so then we could put a bath in.
0:28:43 > 0:28:46Which I think has worked and has then enabled the kitchen
0:28:46 > 0:28:49downstairs to be opened right up into the garden.
0:28:49 > 0:28:54I love it. It just all flows. It's just specious. It's lovely.
0:28:54 > 0:28:57The couple had help from Matt's dad, who's a plumber,
0:28:57 > 0:29:00and Matt's colleague from the building trade.
0:29:00 > 0:29:02And when it came to the decor...
0:29:02 > 0:29:05We decided to go for quite a neutral palette really.
0:29:05 > 0:29:08White walls, neutral carpets.
0:29:08 > 0:29:11All I was allowed to do was the tiling in the hallway,
0:29:11 > 0:29:14the kitchen and the bathroom and that was it.
0:29:14 > 0:29:16But there's no doubting that Matt's done a fine
0:29:16 > 0:29:19job in charge of tiling.
0:29:19 > 0:29:22During the build, the couple sold their Hertfordshire home,
0:29:22 > 0:29:25which didn't help with the schedule.
0:29:25 > 0:29:30The timescale was about four months.
0:29:30 > 0:29:33We did have to wait for building control regarding taking
0:29:33 > 0:29:34the walls downstairs,
0:29:34 > 0:29:39but we're quite happy with how we did regarding the timescales
0:29:39 > 0:29:42and we needed to get it finished so that we could move in here.
0:29:42 > 0:29:43Yes, that's right.
0:29:43 > 0:29:46Matt and Lesley have moved in, as they sold their house
0:29:46 > 0:29:48and needed to live somewhere.
0:29:48 > 0:29:52And they might as well enjoy this lovely house, as their next home
0:29:52 > 0:29:54will be a temporary caravan.
0:29:54 > 0:29:57The couple have bought an old watermill,
0:29:57 > 0:29:59which they plan to renovate.
0:30:00 > 0:30:03Meanwhile back here, they've spent 21,500,
0:30:03 > 0:30:06well within their £20-25,000 budget.
0:30:06 > 0:30:09Will they have something more to celebrate?
0:30:09 > 0:30:13We've invited two local agents to have a look.
0:30:13 > 0:30:15A lot of people we come across
0:30:15 > 0:30:19that want to achieve a first floor bathroom
0:30:19 > 0:30:21go down to two bedrooms, generally losing value.
0:30:21 > 0:30:24But I'm very impressed with what they've done here.
0:30:24 > 0:30:28I think the double doors into the garden really do open up the kitchen,
0:30:28 > 0:30:31which people do like now. And knocking the wall
0:30:31 > 0:30:35through into the lounge, making it one room now, gives a bit more space.
0:30:35 > 0:30:42So is there any profit likely from the £239,500 investment?
0:30:42 > 0:30:46I think this property would resell, in today's market, at £290,000.
0:30:46 > 0:30:52This property can resell for £295,000.
0:30:52 > 0:30:57Which would leave Leslie and Matt with a potential profit of £55,500,
0:30:57 > 0:30:59minus the usual taxes and expenses.
0:30:59 > 0:31:01How do they feel about that?
0:31:01 > 0:31:05Yeah, good. I think that's roughly where we would want it to be,
0:31:05 > 0:31:07so really pleased with that.
0:31:07 > 0:31:09The couple want to sell quickly
0:31:09 > 0:31:12so they can get on with their next project
0:31:12 > 0:31:15and buy other auction properties.
0:31:15 > 0:31:19So their two dogs, two cats and five chickens will soon be moving again.
0:31:19 > 0:31:23All in all, was it a good thing to do with the winnings?
0:31:23 > 0:31:27There were dark days at the start when everything got ripped out
0:31:27 > 0:31:31and I thought, "I can't see how this is ever going to come together."
0:31:31 > 0:31:34But once it all starts to come together and we got it furnished,
0:31:34 > 0:31:37I'm really, really pleased with the result.
0:31:37 > 0:31:38Proud of myself and Matt.
0:31:45 > 0:31:49Croydon is a London borough where it's all happening.
0:31:49 > 0:31:52Lots of investment and a bid for the town to become a city,
0:31:52 > 0:31:55coupled with a fast commute to the city centre of London,
0:31:55 > 0:31:58means lots of property development opportunities.
0:31:58 > 0:32:00I'm here on this road
0:32:00 > 0:32:04to see a four-bedroom house arranged over three floors.
0:32:04 > 0:32:08You've got the lower ground floor, the ground floor and first floor.
0:32:08 > 0:32:13It went to auction with a guide price of £225,000.
0:32:15 > 0:32:17I love this little raised stairway
0:32:17 > 0:32:20and a nice porch area too, to keep the cold out.
0:32:23 > 0:32:28OK, the walls are stripped back to the absolute bare plaster in here.
0:32:28 > 0:32:30A little bit grim, I've got to say.
0:32:30 > 0:32:32It's a bit of a narrow hallway.
0:32:32 > 0:32:34We've got the front bedroom,
0:32:34 > 0:32:36and it's absolutely rammed full of stuff!
0:32:36 > 0:32:40But there is an interesting fireplace lurking over there.
0:32:40 > 0:32:45The second bedroom, again, look, it's absolutely chocka.
0:32:45 > 0:32:47Skips are the order of play here.
0:32:47 > 0:32:48But looking beyond it all,
0:32:48 > 0:32:51you have got two really good-sized rooms here.
0:32:51 > 0:32:56So not a bad start. Shall I go up? Shall I go down?
0:32:56 > 0:32:57I'm going down.
0:32:57 > 0:33:00MUSIC: I'm Goin' Down by Bruce Springsteen
0:33:00 > 0:33:05# I'm goin' down, down, down...#
0:33:05 > 0:33:08Some of the hallway literally is back to the bare brick.
0:33:08 > 0:33:11Quite a lot of work needs to be done on this property.
0:33:11 > 0:33:13As you guys know that watch this show,
0:33:13 > 0:33:16I'm not always a big fan of the basement.
0:33:16 > 0:33:20It's not too dark down here, it is a little bit damp and a bit dingy.
0:33:20 > 0:33:22It needs a complete and utter refurb.
0:33:22 > 0:33:25But there is quite a lot of space to play with,
0:33:25 > 0:33:28and I like the way you have got your social area here
0:33:28 > 0:33:30and your kitchen area here.
0:33:30 > 0:33:31Loads of space to play with.
0:33:31 > 0:33:34And it's got a back garden which is letting lots of light in
0:33:34 > 0:33:38so you could think about extending, or even a conservatory.
0:33:38 > 0:33:41The one thing that this downstairs space doesn't have is a loo.
0:33:41 > 0:33:44There is only one upstairs,
0:33:44 > 0:33:47two floors above, so you would have to think how you would work that.
0:33:47 > 0:33:51But the first thing I would do when I came into this property
0:33:51 > 0:33:53would be to clean the oven, because it needs it.
0:33:53 > 0:33:56MUSIC: Spring Cleaning by Fats Waller
0:33:56 > 0:33:59# Shake off the trees Make 'em clean again
0:33:59 > 0:34:02# Spring cleaning Gettin' ready for love... #
0:34:02 > 0:34:05If this were my place,
0:34:05 > 0:34:09I would be getting my scrubbing pads ready and my sleeves rolled up.
0:34:09 > 0:34:14And I would be bringing my plastering hods too. And some skips.
0:34:14 > 0:34:16It's not just the interior.
0:34:16 > 0:34:21Outside, also, is a little, well - shall we say cluttered?
0:34:21 > 0:34:23At first glance at this house, you might think,
0:34:23 > 0:34:26"What a load of rubbish."
0:34:29 > 0:34:32OK, it is a little bit messy.
0:34:32 > 0:34:34But I'm beginning to love it. Why?
0:34:34 > 0:34:36Well, upstairs on the first floor,
0:34:36 > 0:34:41you have another two good-sized bedrooms. And a loft space.
0:34:41 > 0:34:45And the reason I like it so much is its potential.
0:34:45 > 0:34:49Ask yourself the question, does this have to stay as a four-bed house?
0:34:51 > 0:34:54The ground floor actually has its own separate entrance.
0:34:54 > 0:34:58This opens up the possibility of a separate flat
0:34:58 > 0:34:59with its own front door,
0:34:59 > 0:35:03but you have to consider if there is enough square footage.
0:35:03 > 0:35:06Now, there is not always a specific legal minimum size,
0:35:06 > 0:35:09it depends on the area and the local council.
0:35:09 > 0:35:14As an example, in 2006, a report for Greater London recommended
0:35:14 > 0:35:20the minimum of 37 square metres for a one-person studio flat.
0:35:20 > 0:35:23But, of course, you would have to apply for planning permission
0:35:23 > 0:35:25if you want to do anything like that.
0:35:26 > 0:35:31So could you make this into two flats, and should you do it?
0:35:31 > 0:35:33What did a local estate agent think of this property,
0:35:33 > 0:35:38and what would he do with this place, guided at £225,000?
0:35:38 > 0:35:41Whoever buys this property is going to have to spend
0:35:41 > 0:35:43quite a lot of money. There are a few options.
0:35:43 > 0:35:45Restoring it to a big four-bedroom may not be the best thing
0:35:45 > 0:35:48to do with the property, just because it is on a busy main road,
0:35:48 > 0:35:50it hasn't got a big garden.
0:35:50 > 0:35:53Families might want a bigger garden for a house of this size.
0:35:53 > 0:35:56I think probably the best option would be to see if you can get
0:35:56 > 0:36:00planning permission and possibly develop it into a couple of flats.
0:36:00 > 0:36:03But is it financially worthwhile chasing that planning permission?
0:36:03 > 0:36:05Is this a popular rental area,
0:36:05 > 0:36:10and what would it let for as a four-bed property, or as two flats?
0:36:10 > 0:36:13This property is in a great location for rental,
0:36:13 > 0:36:15being so close to the mainline train stations.
0:36:15 > 0:36:18If it was to be rented as a whole unit,
0:36:18 > 0:36:22it would rent for approximately £1,500-£1,600 per calendar month.
0:36:22 > 0:36:25This property, laid out as a one-bedroom flat,
0:36:25 > 0:36:27with a two-bed above, the one-bedroom flat
0:36:27 > 0:36:31would rent for approximately £775 per calendar month.
0:36:31 > 0:36:33Possibly £800 per calendar month.
0:36:33 > 0:36:34The two/three bed above
0:36:34 > 0:36:38would rent for approximately £1,250 per calendar month.
0:36:39 > 0:36:43So roughly £500 per calendar month more potential rent
0:36:43 > 0:36:46if it was the two separate flats the agent suggests.
0:36:46 > 0:36:48What about sales?
0:36:48 > 0:36:51This property, if it was sold as a four-bedroom house,
0:36:51 > 0:36:53would sell for approximately £340,000.
0:36:53 > 0:36:57This property divided as flats, the downstairs, lower ground floor
0:36:57 > 0:37:00would sell for approximately £175,000.
0:37:00 > 0:37:04The two-bedroom upstairs would sell for approximately £240,000.
0:37:04 > 0:37:06Well, this four-bedroom property
0:37:06 > 0:37:10certainly needs a freshen-up and a clear-out!
0:37:10 > 0:37:12And there's always the potential
0:37:12 > 0:37:15of turning it into two self-contained flats.
0:37:15 > 0:37:18Let's see who bid for this one when it went to auction.
0:37:21 > 0:37:24Lot number eight takes us to Croydon. A good-looking house this.
0:37:24 > 0:37:26What shall we say for it?
0:37:26 > 0:37:28Start me around 250 for it.
0:37:28 > 0:37:31What's that? 230? We'll start there.
0:37:31 > 0:37:33Thank you, sir. 230 I'm bid.
0:37:33 > 0:37:35232? 232.
0:37:35 > 0:37:39235. 238. 240.
0:37:39 > 0:37:41Good value at this. Yours at 242.
0:37:41 > 0:37:45245. 248? 248.
0:37:45 > 0:37:50250. 252? 252. 253.
0:37:50 > 0:37:53No surprise there, with Croydon's growing popularity,
0:37:53 > 0:37:57that there were a few interested bidders on the day.
0:37:57 > 0:38:02And we rejoin the action with the bidding at £280,000.
0:38:02 > 0:38:06281? 281.
0:38:06 > 0:38:09The lady is buying it again. For the first...
0:38:09 > 0:38:12At 281 for the second. Third...
0:38:12 > 0:38:15282. 283. 284?
0:38:18 > 0:38:20283 for the first.
0:38:20 > 0:38:22283 for the second.
0:38:22 > 0:38:25For the third and final time.
0:38:25 > 0:38:28That's yours now, madam, at £283,000.
0:38:28 > 0:38:30Well done. Your bidder number is, please?
0:38:30 > 0:38:33A 283 grand bid finally clinched the deal
0:38:33 > 0:38:37for the new property development team, Anna and Damien.
0:38:37 > 0:38:39They've both dealt in property before,
0:38:39 > 0:38:42but this is their first property together.
0:38:42 > 0:38:45So I was keen to find out more.
0:38:45 > 0:38:47- Anna and Damian, congratulations.- Thank you.
0:38:47 > 0:38:49Tell me little bit about this venture
0:38:49 > 0:38:51and why you've decided to do this.
0:38:51 > 0:38:53We decided to invest together
0:38:53 > 0:38:56as we thought Croydon was a great area to buy in.
0:38:56 > 0:38:58- You've also got a third person involved?- We have, yes,
0:38:58 > 0:39:01there is another investor, Richard, who's invested with us.
0:39:01 > 0:39:05He's off-camera. Between the three of us, we've bought it together.
0:39:05 > 0:39:08What I want to know is how did you three get together
0:39:08 > 0:39:10and why have you decided to do this?
0:39:10 > 0:39:12Damian and I have been working together for a while
0:39:12 > 0:39:15and we met Richard at a property event.
0:39:15 > 0:39:18And we knew he wanted to invest and we wanted to invest
0:39:18 > 0:39:21so we thought we would all get together and do something in London.
0:39:21 > 0:39:23Are you three all property developers
0:39:23 > 0:39:25or did you just have an interest in property?
0:39:25 > 0:39:27I've got a history in property development,
0:39:27 > 0:39:30I'm a chartered building surveyor. I've done development on my own.
0:39:30 > 0:39:33Richard has done quite a few developments on his own as well.
0:39:33 > 0:39:35So we thought, let's combine resources and do it together?
0:39:35 > 0:39:39Does it really work, just pooling all your funds together?
0:39:39 > 0:39:42- Come back in three-four months and we'll let you know.- Wait and see!
0:39:42 > 0:39:44MUSIC: Three Is Family by Dana Dawson
0:39:44 > 0:39:47# What we've created together is
0:39:47 > 0:39:51# The greatest gift in the whole wide world
0:39:51 > 0:39:52# One and one is two
0:39:52 > 0:39:53# Two is me and you
0:39:53 > 0:39:55# Two plus one is three
0:39:55 > 0:39:58# Three is family... #
0:39:58 > 0:40:03The skill set certainly seems like a no-brainer here.
0:40:03 > 0:40:05Aside from Damian's expertise,
0:40:05 > 0:40:09Anna works in the city and has a background in land economy.
0:40:09 > 0:40:12Camera-shy Richard has a building agency.
0:40:12 > 0:40:15And the prospect of a first development together
0:40:15 > 0:40:19left certain members of this trinity a little overexcited.
0:40:19 > 0:40:23Anna did get slightly excited during the auction process.
0:40:23 > 0:40:25She was climbing up the chair at one point
0:40:25 > 0:40:28and checking everybody else out who was bidding against us.
0:40:28 > 0:40:31I think at one point I did have to pull her back down.
0:40:31 > 0:40:34Damian, next time, learn to control her.
0:40:34 > 0:40:36Good luck with that!
0:40:36 > 0:40:39How long have you guys known each other?
0:40:39 > 0:40:41Nearly a year now.
0:40:41 > 0:40:45Tell me what part are you all going to play in this venture?
0:40:45 > 0:40:47I'm going to make it look pretty.
0:40:47 > 0:40:49I'm going to make sure it stands up.
0:40:49 > 0:40:50And Richard is going to pay for it.
0:40:50 > 0:40:52That seems like a good deal to me.
0:40:52 > 0:40:55Let's start from the beginning. Where are you going to start this?
0:40:55 > 0:40:58Currently, it's just one big house, isn't it?
0:40:58 > 0:41:01I think with this one, we're going to split the property
0:41:01 > 0:41:03into a one-bed flat on the ground floor
0:41:03 > 0:41:05and then a two-bed maisonette above.
0:41:05 > 0:41:07That is going to require planning permission,
0:41:07 > 0:41:10so we are in the process of starting that.
0:41:10 > 0:41:13With a bit of luck, that will be an extension at the back,
0:41:13 > 0:41:15generally a clean-up, and then the same upstairs.
0:41:15 > 0:41:17I know the local council around here
0:41:17 > 0:41:20are not keen on adding too much square footage to houses like this.
0:41:20 > 0:41:23Have you thought about that and how much are you going to be going out at the back here?
0:41:23 > 0:41:26We'll probably only go back the permitted developments at the back.
0:41:26 > 0:41:29So we shouldn't have too much issue with the council there.
0:41:29 > 0:41:32And upstairs, we've got sufficient square metreage
0:41:32 > 0:41:34to qualify for the size of flat we are going to build.
0:41:34 > 0:41:38They're hoping to get this project done in three to four months
0:41:38 > 0:41:42and reckon on a budget of about £50,000-£60,000.
0:41:42 > 0:41:44Three isn't a crowd here,
0:41:44 > 0:41:46but how will they make their decisions together?
0:41:46 > 0:41:49It's a bit of a committee system. We split it that way.
0:41:49 > 0:41:52Whoever has the most experience in that particular area.
0:41:52 > 0:41:55What is the look and feel going to be like?
0:41:55 > 0:42:00- I think it will be fairly standard development - magnolia.- Magnolia!
0:42:00 > 0:42:06- Just say neutral!- Neutral.- Magnolia is banned on this programme.- Really?
0:42:06 > 0:42:09After having done this show for so many years...
0:42:09 > 0:42:13For you, we'll paint it a completely different colour - purple everywhere.
0:42:13 > 0:42:15- Let's call it off-white, shall we? - Let's do that.
0:42:15 > 0:42:17Purple it is then.
0:42:17 > 0:42:21Oh, well, I suppose, just this time, I'll let them have magnolia
0:42:21 > 0:42:24as it will make it easier to sell the flat,
0:42:24 > 0:42:26which the trio plan to do.
0:42:26 > 0:42:29But if they don't get planning permission to convert them,
0:42:29 > 0:42:31what's their plan B?
0:42:31 > 0:42:33I think our plan B is probably to go for an HMO.
0:42:33 > 0:42:38There's not a great difference between the work we would have to do for the two flats, or the HMO.
0:42:38 > 0:42:41So that's kind of our fallback option.
0:42:41 > 0:42:44Guys, it's been brilliant meeting you. Good luck with this venture.
0:42:44 > 0:42:47And it would be great to see if you do get what you want.
0:42:47 > 0:42:51- Lovely to meet you both, thank you so much.- Thank you.- Thank you.
0:42:51 > 0:42:54So this flat marks the start of a planned new venture
0:42:54 > 0:42:57for property developers Damian, Anna and Richard.
0:42:57 > 0:43:00But they want to convert this into two flats
0:43:00 > 0:43:03and they know planning can be tricky.
0:43:03 > 0:43:07And this is the first project they've all done together.
0:43:07 > 0:43:08How will they get on?
0:43:08 > 0:43:11Join me later in the programme and you can find out.
0:43:15 > 0:43:18We've seen how one of the properties has ended up, how about the others?
0:43:18 > 0:43:21Yes, how did the other two get on with their auction purchases?
0:43:21 > 0:43:22I can't wait to find out.
0:43:25 > 0:43:30Earlier in the show, I was in Burnley to see a real slice of Northern Soul.
0:43:30 > 0:43:35This former disco and living accommodation above was guided at £50,000.
0:43:35 > 0:43:37Despite the condition of the place,
0:43:37 > 0:43:42you had two huge bars, both with toilets and kitchen.
0:43:42 > 0:43:46And they left me the dance floor.
0:43:46 > 0:43:48# I'm going out, going out... #
0:43:48 > 0:43:51MUSIC: Dancing On The Ceiling by Lionel Richie
0:43:51 > 0:43:53# Oh what a feeling Dancing on the ceiling... #
0:43:53 > 0:43:57No, no, no, you wouldn't want to dance on this ceiling
0:43:57 > 0:43:59as there is damp throughout.
0:43:59 > 0:44:01Maybe that damp was coming from
0:44:01 > 0:44:04the dilapidated former four-bed flat upstairs.
0:44:04 > 0:44:07And exploring the maze of rooms,
0:44:07 > 0:44:10I found a huge flat roof which may explain the damp.
0:44:15 > 0:44:18And Ian was ready to throw shapes on the dance floor
0:44:18 > 0:44:21when he paid £60,000 for this lot.
0:44:21 > 0:44:24His moves were going to be about creating six commercial units
0:44:24 > 0:44:27on the ground floor and three flats above.
0:44:30 > 0:44:34It turned out he'd strutted his stuff in this place some time before.
0:44:35 > 0:44:38When it opened 25-30 years ago,
0:44:38 > 0:44:42I did the DJing for the opening night.
0:44:42 > 0:44:45- That's brilliant. Was it buzzing? - It was, yeah, it were packed.
0:44:45 > 0:44:47- Because you were DJing?- Hmm...
0:44:51 > 0:44:55Former DJ, Ian, was ready to change the tune in 16 weeks
0:44:55 > 0:44:56with a 150 grand budget.
0:44:58 > 0:45:02We came back 16 weeks later and, wow! Look at the frontage!
0:45:04 > 0:45:06That rather brutal exterior has been made so much better
0:45:06 > 0:45:10by the addition of new angular windows making the retail spaces
0:45:10 > 0:45:15light and also making maximum retail exposure.
0:45:15 > 0:45:18Ian has created five retail spaces
0:45:18 > 0:45:21and one of the bars has become a brand-new restaurant.
0:45:28 > 0:45:31Ian has then used a portion of the space in the other bar
0:45:31 > 0:45:35to build service corridors so that businesses have areas to move
0:45:35 > 0:45:36and store their goods.
0:45:38 > 0:45:40The other units have been partitioned,
0:45:40 > 0:45:42but they are still undergoing work.
0:45:43 > 0:45:46They all have new plastering, flooring and electrics.
0:45:47 > 0:45:49And what about upstairs?
0:45:55 > 0:45:56Incredible!
0:45:56 > 0:45:58The flats all have one bedroom
0:45:58 > 0:46:01with one apartment being extended to make room.
0:46:01 > 0:46:04And they've all been fitted to a very high standard.
0:46:14 > 0:46:17Just when you thought that's all you would get on this floor,
0:46:17 > 0:46:18there's more outside.
0:46:18 > 0:46:20Each flat has a private roof terrace,
0:46:20 > 0:46:24two of which have been built on the leaky, flat roof.
0:46:25 > 0:46:28But for one of the flats, it's up a set of stairs
0:46:28 > 0:46:31and onto its own private roof garden.
0:46:36 > 0:46:40Ian has done a great job here and he's worked hard to make sure
0:46:40 > 0:46:42the retail space fits the needs of the tenants,
0:46:42 > 0:46:44including laying a porcelain floor
0:46:44 > 0:46:48at the request of one of his clients who wanted a larger unit.
0:46:49 > 0:46:53One of my clients wanted a bigger space.
0:46:53 > 0:46:55So we made a bigger retail unit for him.
0:46:55 > 0:46:58He's a men's clothes shop and he needs a lot of spare
0:46:58 > 0:47:01so we made it into a bigger one which...
0:47:02 > 0:47:06Obviously, we get more rent for that and the restaurant...
0:47:06 > 0:47:07..because it was licensed,
0:47:07 > 0:47:10we thought it would be a good idea to keep the licence.
0:47:10 > 0:47:13Licences are hard to come by
0:47:13 > 0:47:19so that's why I kept that part of the building as a bar/restaurant.
0:47:19 > 0:47:23It's in my name and that will be transferred to the people
0:47:23 > 0:47:24who rent the restaurant off me.
0:47:26 > 0:47:29Ian reckons there's just some snagging to do to the flats
0:47:29 > 0:47:31and the shops are nearly done.
0:47:32 > 0:47:36Just got to put a couple of floors in two of the retail units
0:47:36 > 0:47:38so I would say another two weeks and we should be finished.
0:47:38 > 0:47:42Two weeks over what we said, I think.
0:47:42 > 0:47:46Ian has spent £200,000 so far and estimates
0:47:46 > 0:47:49and other 40 grand to be spent.
0:47:49 > 0:47:53That would take him £90,000 over his budget.
0:47:53 > 0:47:55But how is he feeling about the project?
0:47:55 > 0:47:58I think it has been a fantastic experience.
0:47:58 > 0:47:59Really, really enjoyed it.
0:47:59 > 0:48:03The thing I'm most pleased with is how it looks now
0:48:03 > 0:48:07from the outside and when I drive into town and I see it,
0:48:07 > 0:48:09I feel proud and it looks really good.
0:48:11 > 0:48:13And I think you've got lots to be proud about, Ian.
0:48:18 > 0:48:21But the other "P" word we care about is profit.
0:48:21 > 0:48:24Ian thinks his total spend at the end of the project
0:48:24 > 0:48:26will be £300,000.
0:48:27 > 0:48:30What do two local agents think the flats will be worth?
0:48:32 > 0:48:36For the apartments, I'd suggest a selling figure of £75,000
0:48:36 > 0:48:38with a rental figure
0:48:38 > 0:48:40of £450 per calendar month.
0:48:40 > 0:48:42Should the flats be put up for sale then
0:48:42 > 0:48:46I would recommend an asking price of £75,000.
0:48:46 > 0:48:48On the rental market, the flats, I think,
0:48:48 > 0:48:52would achieve a price of £425 per calendar month.
0:48:52 > 0:48:57Erm... Rental, a little bit less than I thought, but still...
0:48:57 > 0:48:59Fair enough. Yeah!
0:49:00 > 0:49:01Based on the higher rental,
0:49:01 > 0:49:06Ian could have an income of £1,350 per calendar month.
0:49:06 > 0:49:09And the agents think that the commercial units altogether
0:49:09 > 0:49:14could produce a rental income of £4,150 per calendar month.
0:49:17 > 0:49:19For those of you without a calculator to hand,
0:49:19 > 0:49:24that's an income of £5,500 per calendar month
0:49:24 > 0:49:26and a cracking 22% yield.
0:49:26 > 0:49:28That is huge.
0:49:28 > 0:49:31But what is the building worth if you wanted to sell it?
0:49:33 > 0:49:37Subject to all the units, first and ground floor, being let, then
0:49:37 > 0:49:43I anticipate an asking price of somewhere between 500 and £550,000.
0:49:43 > 0:49:46For the overall building, I think we'd be looking at
0:49:46 > 0:49:48an overall figure of around £600,000.
0:49:48 > 0:49:52It has been a long 16 weeks and, at this stage,
0:49:52 > 0:49:56if somebody gave me half a million quid, I think...
0:49:56 > 0:49:57I'd bite their hand off!
0:49:59 > 0:50:01Well, Ian, it might have been stressful,
0:50:01 > 0:50:04but you've made all the right moves here.
0:50:04 > 0:50:07This former disco could make you a potential pre-tax
0:50:07 > 0:50:09profit of 300 grand.
0:50:11 > 0:50:15But with that potential 22% annual yield, you can understand why
0:50:15 > 0:50:20he's sticking to his original plan and putting it on the rental market.
0:50:20 > 0:50:21So, what's next?
0:50:22 > 0:50:24We'll have a couple of weeks holiday and then come back
0:50:24 > 0:50:27and it's basically back to the auction.
0:50:32 > 0:50:37Earlier in the programme, I saw this four-bed family home in Croydon.
0:50:37 > 0:50:38Spread over three floors,
0:50:38 > 0:50:42it was more like a skip than a spacious suburban pad.
0:50:42 > 0:50:45But looking beyond all the stuff, the layout meant there was
0:50:45 > 0:50:48potential to change the house into flats.
0:50:48 > 0:50:50Something that Anna and Damian thought
0:50:50 > 0:50:55when they bought the property for 283,000 in a new partnership
0:50:55 > 0:50:57with another investor, Richard.
0:50:57 > 0:50:59You know what they say?
0:50:59 > 0:51:03Three heads are better than one and each head did have its role to play.
0:51:07 > 0:51:08I'm going to make it look pretty.
0:51:08 > 0:51:10I'm going to make sure it stands up.
0:51:10 > 0:51:14- And Richard's going to pay for it. - That seems like a good deal to me!
0:51:14 > 0:51:16Where are you going to start with this?
0:51:16 > 0:51:18Currently, it's just one big house, isn't it?
0:51:18 > 0:51:22With this one, we're going to split the property into a one-bed flat
0:51:22 > 0:51:25on the ground floor then a two-bed maisonette in the flat above.
0:51:25 > 0:51:28Obviously, that will require planning permission
0:51:28 > 0:51:29so we are in the process of starting that now.
0:51:29 > 0:51:32With a bit of luck, that will be an extension of the back,
0:51:32 > 0:51:35generally a clean-up, and then the same upstairs.
0:51:35 > 0:51:38Our plan B is probably to go for an HMO.
0:51:38 > 0:51:41There's not a great difference between the work we have to do
0:51:41 > 0:51:44for two flats or as an HMO so that's kind of our fallback option.
0:51:44 > 0:51:47So, seven months on, have the three developers
0:51:47 > 0:51:50achieved their dream of two flats?
0:51:53 > 0:51:58MUSIC: It Takes Two by Marvin Gaye
0:52:00 > 0:52:02It didn't go through planning.
0:52:02 > 0:52:05TRUMPET NOTES DESCEND
0:52:05 > 0:52:06Oh, dear!
0:52:06 > 0:52:09The council rejected the planning application
0:52:09 > 0:52:12on the basis that the basement floor would not have
0:52:12 > 0:52:15sufficient square footage to meet regulations.
0:52:16 > 0:52:18But not all is lost.
0:52:18 > 0:52:21Instead of making two flats, the trio have made one.
0:52:21 > 0:52:25One House of Multiple Occupation, that is.
0:52:26 > 0:52:28# I'm having a dream
0:52:28 > 0:52:32# And in it, I'm just a machine
0:52:32 > 0:52:35# And I know it will not be easy
0:52:35 > 0:52:39# Singing a song that has to be sung
0:52:39 > 0:52:45# Only you can make one out of two
0:52:45 > 0:52:49# After all that we've been through
0:52:49 > 0:52:53# You keep on giving me a reason
0:52:53 > 0:52:55# To see love through your eyes. #
0:52:55 > 0:52:59The property is now a five-bed house of multiple occupation
0:52:59 > 0:53:02with three of the rooms having en-suite.
0:53:02 > 0:53:04But they have had to get very clever on the ground floor
0:53:04 > 0:53:07to create a bedroom.
0:53:07 > 0:53:09So, this is the ground floor bedroom which was originally
0:53:09 > 0:53:12part of the open plan kitchen and we had to do some structural work,
0:53:12 > 0:53:15some joists, for this bit. They were a bit rotten.
0:53:15 > 0:53:18We opened it up and there was an outside bathroom as well
0:53:18 > 0:53:20so we incorporated that back into the kitchen
0:53:20 > 0:53:21just to make it a bit bigger.
0:53:21 > 0:53:23As you can see, we've put a partition wall up there
0:53:23 > 0:53:26and installed an en-suite bathroom as well.
0:53:26 > 0:53:28There's still a few bits to go.
0:53:28 > 0:53:32A bit of snagging, in here as well as the whole house,
0:53:32 > 0:53:34and furnishings, window dressings and so on.
0:53:35 > 0:53:37And the first floor looks great, too.
0:53:38 > 0:53:42On the first floor, it was already into two rooms
0:53:42 > 0:53:45so we've now turned one of them into a bedroom with an en-suite
0:53:45 > 0:53:48and the other one is just a bedroom in its own right.
0:53:48 > 0:53:51Again, we've just reformatted it a bit to get more lettable bedrooms
0:53:51 > 0:53:52in the property.
0:53:54 > 0:53:57Not too many changes on the top floor, but even more toilets.
0:53:59 > 0:54:02On the third floor, the last one, there were already two bedrooms
0:54:02 > 0:54:05up there and a bathroom so we've just redone both of them,
0:54:05 > 0:54:06replaced the bathroom
0:54:06 > 0:54:08and also incorporated a new ensuite in the front bedroom.
0:54:08 > 0:54:11So we've added three extra bathrooms.
0:54:11 > 0:54:14We've got a lot of toilets because we're renting room by room
0:54:14 > 0:54:20and the rent is that much higher, about £50-£100 a month higher,
0:54:20 > 0:54:21with an en-suite.
0:54:21 > 0:54:25People like their privacy so they like to have a bit self-contained.
0:54:27 > 0:54:30You've got to speculate to accumulate, but given the
0:54:30 > 0:54:35change of plan, I'm reckoning their budget of 50-60,000 had to change.
0:54:37 > 0:54:39Now that we've gone the HMO route,
0:54:39 > 0:54:42the final budget is probably going to be about £70,000.
0:54:43 > 0:54:45Because of the change in plans
0:54:45 > 0:54:47and having to apply for planning permission,
0:54:47 > 0:54:51things took a little bit longer than their original timescale.
0:54:51 > 0:54:54But is everybody happy with the outcome of the project?
0:54:56 > 0:54:58Both of us and also the other investor, Richard,
0:54:58 > 0:55:02are really happy with the end result.
0:55:02 > 0:55:04Time to call in two local estate agents to find out
0:55:04 > 0:55:08if plan B is A-list when it comes to profit.
0:55:08 > 0:55:11What do the agents think of the work they did?
0:55:11 > 0:55:14And did they make the right decision in opting for an HMO?
0:55:15 > 0:55:19The key with HMOs is location and obviously condition.
0:55:19 > 0:55:22The condition is fantastic. It's all brand spanking new, pretty much.
0:55:22 > 0:55:23Location is very, very good.
0:55:23 > 0:55:26We're just outside of central Croydon, walking distance to West
0:55:26 > 0:55:30Croydon station and East Croydon station so very good decision.
0:55:30 > 0:55:31I really like the property.
0:55:31 > 0:55:33I think the work has been done to a very good standard.
0:55:33 > 0:55:35There are a few small snagging issues.
0:55:35 > 0:55:37I'm sure they'll get completed.
0:55:37 > 0:55:40And they'll have no problems renting or selling the property.
0:55:40 > 0:55:43The layout of the building works very well because each room,
0:55:43 > 0:55:46apart from two of them, has got an en-suite.
0:55:46 > 0:55:49People prefer that as they don't really like to share bathrooms.
0:55:49 > 0:55:50And you also have a main bathroom
0:55:50 > 0:55:54and the property is over three floors, which is very good.
0:55:55 > 0:55:59Being an HMO landlord does come with a lot of responsibilities.
0:56:01 > 0:56:04You have to have appropriate fire doors and alarms,
0:56:04 > 0:56:08amongst other things, to get the required licensing.
0:56:08 > 0:56:11Will the rental income of the five rooms
0:56:11 > 0:56:15make the three developers' £353,000 investment worthwhile?
0:56:17 > 0:56:20I believe the annual figure for this property for rental
0:56:20 > 0:56:22would be 33,000 per annum.
0:56:22 > 0:56:24If you're looking at an annual rent,
0:56:24 > 0:56:27you'd be looking at around £36,000 per annum.
0:56:27 > 0:56:32So, we forecast just over 36,000 as the gross annual income.
0:56:32 > 0:56:36Ball park. It's about what we were hoping for.
0:56:36 > 0:56:38And a total rental income of £36,000
0:56:38 > 0:56:41a year gives them a 10% yield.
0:56:41 > 0:56:45But could it fare even better on the sales market?
0:56:45 > 0:56:48If you're putting this property on the market, it depends on how
0:56:48 > 0:56:49you're going to sell it.
0:56:49 > 0:56:52If you're selling it as an HMO, I would then look at the value
0:56:52 > 0:56:54based on the rental income coming in
0:56:54 > 0:56:58and try to achieve about 8% return for my clients, gross.
0:56:58 > 0:57:03So you would look at about 425,000-430,000.
0:57:03 > 0:57:06However, if you're going to sell it as a family home,
0:57:06 > 0:57:08which it still could be a three or a four-bed.
0:57:08 > 0:57:13If it's a four bed, you're looking at around £350,000-£375,000.
0:57:13 > 0:57:16Within the current market, I believe this property would be
0:57:16 > 0:57:22looking to achieve anywhere in the region o £475,000-£480,000.
0:57:22 > 0:57:25- Good!- We'd be quite happy with them. - Good year.
0:57:25 > 0:57:27If you'd like to buy it, you can have it!
0:57:30 > 0:57:31Well, unfortunately,
0:57:31 > 0:57:34I didn't see the agent getting his cheque-book out, Damien!
0:57:34 > 0:57:38But his top valuation of £480,000 would net him
0:57:38 > 0:57:43a 127 grand profit before the usual taxes and expenses.
0:57:44 > 0:57:48But, the three developers will keep on renting out the rooms.
0:57:48 > 0:57:52After that, what projects are they planning for the future?
0:57:52 > 0:57:55We're not working on any particular deals together at the moment,
0:57:55 > 0:57:58but not to say that we wouldn't in the future.
0:57:58 > 0:58:00It's been really good fun. Good experience.
0:58:00 > 0:58:04This one's worked out all right so we might do another one together.
0:58:06 > 0:58:09Well, as you can see, there's lots to learn
0:58:09 > 0:58:11when it comes to investing in property.
0:58:11 > 0:58:13Well, don't worry because we're always here with advice.
0:58:13 > 0:58:15Yeah, make sure you join us next time
0:58:15 > 0:58:17- for more Homes Under The Hammer. Bye-bye.- See you, then.- Bye.