0:00:02 > 0:00:03Hello. For a lot of people,
0:00:03 > 0:00:05- property starts off as a bit of a hobby, then just grows.- Yes.
0:00:05 > 0:00:06And the more you do,
0:00:06 > 0:00:07the more you learn,
0:00:07 > 0:00:10- and there are always new challenges ahead.- Yeah.
0:00:10 > 0:00:13Or if you're buying your first or your 101st property,
0:00:13 > 0:00:15make sure you get it at a good price.
0:00:15 > 0:00:17So, why not buy under the hammer?
0:00:43 > 0:00:44So, what have we got today -
0:00:44 > 0:00:47- a bungalow, a couple of flats, a terrace?- Yes.
0:00:47 > 0:00:50- And who bid on them at auction? - Let's take a look.
0:00:52 > 0:00:53In Carlton, Nottingham,
0:00:53 > 0:00:56this three-bedroom semi has some appealing features.
0:00:56 > 0:00:59The garden's beautiful, the inside of the house is beautiful.
0:00:59 > 0:01:01I love it.
0:01:01 > 0:01:03The same can't be said about certain features
0:01:03 > 0:01:05at this terrace in East Ham, London.
0:01:05 > 0:01:07Not sure about this feature.
0:01:07 > 0:01:11Not typical of the Victorian period, I don't think.
0:01:11 > 0:01:17And we revisit a property in Stoke featuring a whole lot of rooms.
0:01:17 > 0:01:21A 43-bedroom former care home.
0:01:23 > 0:01:25All these properties were bought at auction.
0:01:25 > 0:01:28We'll find out who bought them and how much they paid
0:01:28 > 0:01:29when they went under the hammer.
0:01:34 > 0:01:38I'm in Carlton, which is a suburb on the outskirts of Nottingham,
0:01:38 > 0:01:42and the property I'm here to see is a three-bed semidetached house
0:01:42 > 0:01:45with a guide price of £73,000-plus.
0:01:45 > 0:01:49And here it is, with garage and off-street parking.
0:01:49 > 0:01:51It's got great views on the outside.
0:01:51 > 0:01:53Let's see what it looks like on the inside.
0:02:02 > 0:02:06Nice. Very nice feel to this house as soon as you come in.
0:02:06 > 0:02:08You've got your stairs going up to your bedrooms,
0:02:08 > 0:02:12your lounge, which is a good-sized lounge,
0:02:12 > 0:02:16and really big bay window letting lots of light in as well.
0:02:16 > 0:02:18You can see that whoever had this property last
0:02:18 > 0:02:21has really looked after it, kept it in good condition.
0:02:21 > 0:02:25And on this staircase here, I can see there's a bit of panelling,
0:02:25 > 0:02:28but I would imagine, behind here, the original spindles.
0:02:28 > 0:02:30I'd be inclined to get rid of this panelling,
0:02:30 > 0:02:32expose those spindles again.
0:02:32 > 0:02:36Through into the kitchen. Again, in good condition.
0:02:36 > 0:02:39Lacking in work-surface space,
0:02:39 > 0:02:42but it's in nice condition all the same.
0:02:42 > 0:02:45In here, we've got a pantry area.
0:02:45 > 0:02:47I'd be inclined to get rid of that,
0:02:47 > 0:02:50give yourself a bit more work space, bit more kitchen.
0:02:50 > 0:02:53And then you're into the dining room,
0:02:53 > 0:02:54and it's an OK dining room.
0:02:54 > 0:02:56You'd get a table and chairs in here no problem.
0:02:56 > 0:02:59But I'd be inclined to take this wall out -
0:02:59 > 0:03:03take this whole wall out - bring it into modern-day living,
0:03:03 > 0:03:05give yourself a nice kitchen/diner.
0:03:05 > 0:03:07And if you wanted to go a little bit further,
0:03:07 > 0:03:11you could actually stick some patio doors in there as well,
0:03:11 > 0:03:14straight out into the back garden. Spot-on.
0:03:15 > 0:03:17Sometimes, you just walk into a house
0:03:17 > 0:03:19and instantly get a good feeling.
0:03:19 > 0:03:22It's hard to put a finger on exactly what it is.
0:03:22 > 0:03:23This is one of those houses.
0:03:23 > 0:03:26# Oh, oh, sometimes
0:03:26 > 0:03:28# I get a good feeling... #
0:03:28 > 0:03:30You can tell whoever lived here previously
0:03:30 > 0:03:33loved this house and really looked after it,
0:03:33 > 0:03:35but that has got to be one of the smallest work surfaces
0:03:35 > 0:03:38I've come across in a house this size.
0:03:38 > 0:03:40I've seen bigger in a camper van.
0:03:40 > 0:03:43So, I'm upstairs and there's three bedrooms up here -
0:03:43 > 0:03:45two overlooking the front of the house,
0:03:45 > 0:03:48a smaller bedroom there, and a much larger one -
0:03:48 > 0:03:50possibly double the size - just there.
0:03:50 > 0:03:53And here's bedroom three overlooking the back garden.
0:03:53 > 0:03:55And as of houses of this period,
0:03:55 > 0:04:00you've got a toilet and a bathroom completely separate.
0:04:00 > 0:04:02Some people like it and some people don't,
0:04:02 > 0:04:06but it's mainly the back area here, the bathroom. There's no shower.
0:04:06 > 0:04:09I always like a freestanding shower, so if you could rejig that
0:04:09 > 0:04:12and squeeze one in, that would be my choice.
0:04:12 > 0:04:15But in the main, this house has really been looked after,
0:04:15 > 0:04:18it's in great condition, and I really like it.
0:04:18 > 0:04:21MUSIC: 2 Become 1 by The Spice Girls
0:04:21 > 0:04:25So, the age-old question - should two become one?
0:04:25 > 0:04:28Well, I think so because this is not the best arrangement
0:04:28 > 0:04:29for washing your hands.
0:04:31 > 0:04:35So, I'm out in the back garden, and this too is in great condition,
0:04:35 > 0:04:36just like the house.
0:04:36 > 0:04:40You've also got some outbuildings, which are great for storage.
0:04:40 > 0:04:42I have spied the garage,
0:04:42 > 0:04:44which looks like it may have been built
0:04:44 > 0:04:47with materials that contain asbestos.
0:04:47 > 0:04:51If you are thinking of getting that moved, get the professionals in.
0:04:51 > 0:04:54But the garden's beautiful,
0:04:54 > 0:04:57the inside of the house is beautiful.
0:04:57 > 0:04:58I love it.
0:05:00 > 0:05:04So, obviously, I love this place, but what's a local estate agent
0:05:04 > 0:05:06got to say about the area?
0:05:06 > 0:05:09And what are his thoughts on the house itself?
0:05:09 > 0:05:12Carlton's a popular residential area in the north-east of Nottingham.
0:05:12 > 0:05:14It's popular with families, first-time buyers.
0:05:14 > 0:05:16There's plenty of amenities
0:05:16 > 0:05:19and good bus routes into the city centre,
0:05:19 > 0:05:22and it's experiencing very strong demand at the moment.
0:05:22 > 0:05:24I think it would benefit from a new kitchen.
0:05:24 > 0:05:26Possibly look at the bathroom as well.
0:05:26 > 0:05:28The bathroom's got a separate WC,
0:05:28 > 0:05:30so putting those together into one larger room
0:05:30 > 0:05:33will certainly be beneficial for the family market.
0:05:33 > 0:05:36But that aside, it's just really cosmetic decoration throughout.
0:05:37 > 0:05:41So, we agree - it's a good house, but needs updating.
0:05:41 > 0:05:45But what could the house guided at £73,000 be worth
0:05:45 > 0:05:47when it's done up and sold on?
0:05:47 > 0:05:50Once the work's completed, I feel the property will be worth
0:05:50 > 0:05:53in the region of 125,000 to 130,000.
0:05:53 > 0:05:55In terms of the rental market,
0:05:55 > 0:05:58in the region of £500 per calendar month.
0:05:58 > 0:05:59When you walk into some houses,
0:05:59 > 0:06:02they have a nice, warm feeling about them,
0:06:02 > 0:06:04and this is definitely one.
0:06:04 > 0:06:07Not a lot needs doing here, but if you did do anything,
0:06:07 > 0:06:09maybe a bit of a rejig, a reconfigure
0:06:09 > 0:06:11just to bring it into modern living.
0:06:11 > 0:06:14Let's see who fancied it when it went under the hammer.
0:06:15 > 0:06:16Lot number one.
0:06:16 > 0:06:20A traditional three-bedroom semidetached house
0:06:20 > 0:06:23that requires a scheme of improvement and renovation.
0:06:23 > 0:06:26The guide is 73-plus. Would you like to start me at 78?
0:06:26 > 0:06:31- 88.- 88. 88 on the telephone is the opening bid.
0:06:31 > 0:06:33In the room? 89, I've got in the corner.
0:06:33 > 0:06:3590 is bid there. Thank you.
0:06:35 > 0:06:3891 on the front row here. 90. 92.
0:06:38 > 0:06:4293. 93 in four places.
0:06:42 > 0:06:44With a great deal of interest in the property,
0:06:44 > 0:06:46the bidding was fast and furious.
0:06:46 > 0:06:49We rejoin it when the bids reach £102,000.
0:06:51 > 0:06:54102 in the centre. 103 at the back.
0:06:54 > 0:06:57Going... 103.
0:06:57 > 0:07:01104. 104 is bid.
0:07:01 > 0:07:06105. £105,000.
0:07:06 > 0:07:09Once, twice, third time.
0:07:10 > 0:07:13Sold at 105,000. Thank you.
0:07:14 > 0:07:20Making that final bid of £105,000 was James and father-in-law Malcolm.
0:07:20 > 0:07:21They are both first-time developers,
0:07:21 > 0:07:24and this is the first time they'll be working together.
0:07:24 > 0:07:27I met them at the house to find out more.
0:07:27 > 0:07:30# Yeah, yeah, yeah Come on, sing it now with me
0:07:30 > 0:07:33# Like father, like son... #
0:07:33 > 0:07:35- James, nice to meet you. - Nice to meet you, mate.
0:07:35 > 0:07:38- Malcolm, nice to meet you too, sir. - Dion.- And congratulations.
0:07:38 > 0:07:40- Got yourself a bit of a gem. - Yeah, it's not bad, is it?
0:07:40 > 0:07:42- It's not bad.- Who found it?
0:07:42 > 0:07:45- James.- Yeah.- He only lives on the back road.- Just up there.
0:07:45 > 0:07:49And we drove around it and thought, "Let's go and buy a house."
0:07:49 > 0:07:51THEY LAUGH Simple as that?
0:07:51 > 0:07:53- Yeah, simple as that. - Well...- We had an idea.
0:07:53 > 0:07:55I'd done the extension on our house,
0:07:55 > 0:07:57and we always wanted to buy another one once we'd done.
0:07:57 > 0:07:59And then just driving around,
0:07:59 > 0:08:01we had a look and there it was, just round the corner.
0:08:01 > 0:08:03- On your doorstep.- That's it. Right on the doorstep.
0:08:06 > 0:08:08Well, it's not every day you find a property as good as this,
0:08:08 > 0:08:10let alone in your own neighbourhood.
0:08:13 > 0:08:16What's made you want to go into property developing?
0:08:16 > 0:08:18- Try and make some money.- Yeah.
0:08:18 > 0:08:20Watching your show all the time doesn't help either.
0:08:20 > 0:08:22- And you thought, "I can do that myself"?- Yeah.
0:08:22 > 0:08:26- Starting with this one.- That's it. - So, how did Malcolm get involved?
0:08:26 > 0:08:28He had a little bit of money behind him.
0:08:28 > 0:08:30THEY LAUGH OK. And you're the money man.
0:08:30 > 0:08:34- I'm the money man, yes. It's my son-in-law.- Yeah.
0:08:34 > 0:08:37We're pretty experienced at doing this sort of thing.
0:08:37 > 0:08:39We built his extension,
0:08:39 > 0:08:42I've turned my two-bedroom bungalow into a five-bedroom house,
0:08:42 > 0:08:44so we know what we're doing.
0:08:44 > 0:08:45So, tell us what you're going to do.
0:08:45 > 0:08:48I think it's a really nice house. It's warm.
0:08:48 > 0:08:50- It's got a nice, warm feel, doesn't it?- It is a lovely home.
0:08:50 > 0:08:54- The previous owner lived in it since it was built back in... 1947?- '47.
0:08:54 > 0:08:57- OK.- 68 years, they were here. - That's brilliant, isn't it?
0:08:57 > 0:08:59Yeah, and she's obviously looked after it.
0:08:59 > 0:09:02We're going to modernise it a bit. Obviously, it's old-fashioned.
0:09:02 > 0:09:05- We're going to knock through the kitchen/diner into...- Yeah.
0:09:05 > 0:09:07I mean, the kitchen, at the moment, is a sink
0:09:07 > 0:09:12and a work unit about two feet wide, so we'll open it out,
0:09:12 > 0:09:14make it into a proper kitchen/diner.
0:09:14 > 0:09:15Anything else downstairs
0:09:15 > 0:09:18that you're thinking of changing, reconfiguring?
0:09:18 > 0:09:19Might put some French doors in.
0:09:19 > 0:09:21- Oh, yeah.- Where that window is at the back.
0:09:21 > 0:09:24In the dining part of the kitchen/diner,
0:09:24 > 0:09:26there's a window we're going to cut down
0:09:26 > 0:09:30and put French doors in to open out onto the nice, sunny garden.
0:09:30 > 0:09:34# All the small things True care... #
0:09:34 > 0:09:37Oh, yes. We're all singing from the same song sheet here.
0:09:37 > 0:09:39I'm especially chuffed they're going to be tackling
0:09:39 > 0:09:41the size of that kitchen.
0:09:41 > 0:09:44- Any changes upstairs at all? - Yes.- Just the bathroom, mainly.
0:09:44 > 0:09:47It's a separate bathroom and toilet at the moment.
0:09:47 > 0:09:49We're going to take a wall out
0:09:49 > 0:09:53- so we can have a walk-in shower and a bath.- Yeah.
0:09:53 > 0:09:56We're going to have both. Yeah, make it really nice.
0:09:56 > 0:09:58Other than that, I think that's it upstairs.
0:09:58 > 0:10:00Yes, this is going to be good.
0:10:00 > 0:10:03There was one thing I noticed in the bedroom
0:10:03 > 0:10:07and that's an awkward junction where the stairs go through the room.
0:10:07 > 0:10:09These are quite common and a real waste of space,
0:10:09 > 0:10:12but it turns out Malcolm has a solution.
0:10:14 > 0:10:18So, the plan is to build a captain's bed over the top of it
0:10:18 > 0:10:20so you can utilise the whole of the floor space.
0:10:20 > 0:10:24So, we'll build a captain's bed with a ladder up,
0:10:24 > 0:10:27- rails round for safety. - Nice little bunk bed for a kid.
0:10:27 > 0:10:30- Those are great ideas. - It opens all the room, then.- Yeah.
0:10:30 > 0:10:32So, rather than putting a bed in there
0:10:32 > 0:10:34- and you've filled the room up already.- I like that.
0:10:34 > 0:10:37- The kids love it.- Now I know why you've got him on board.
0:10:37 > 0:10:40- Not just for the money.- No.- He's got some good ideas as well.- He has.
0:10:40 > 0:10:42Got quite a big brain in there, haven't you?
0:10:42 > 0:10:45The son and father-in-law team seem to know what they are doing
0:10:45 > 0:10:47and are full of ideas,
0:10:47 > 0:10:50but what about the potential fly in the ointment - the garage?
0:10:53 > 0:10:54- I see the garage as well.- Yeah.
0:10:54 > 0:10:58A lot of garages that are built in this kind of period
0:10:58 > 0:11:00do tend to have asbestos.
0:11:00 > 0:11:01- Is that the case? - Yes, it is the case.
0:11:01 > 0:11:04- It is the case?- Yes, it is. - But it is undisturbed.
0:11:04 > 0:11:07Asbestos is only a problem when it's broken
0:11:07 > 0:11:09and it releases the fibres into the air.
0:11:09 > 0:11:13- But we're not planning on disturbing the garage at all.- No.
0:11:13 > 0:11:17- # Do not disturb - # Do not di, do not disturb... #
0:11:17 > 0:11:20They're quite right about that, so not a problem for them.
0:11:20 > 0:11:23Now the money matters.
0:11:23 > 0:11:25So, what's the budget for this project?
0:11:25 > 0:11:27Apart from labour,
0:11:27 > 0:11:31the only things we need to buy are the bathroom and the kitchen,
0:11:31 > 0:11:34so we've set a budget of £5,000.
0:11:34 > 0:11:37Maybe six or seven if necessary.
0:11:37 > 0:11:40Basically, it's the spec of the bathroom and the kitchen
0:11:40 > 0:11:42that's going to dictate the cost.
0:11:42 > 0:11:44Will that change if you go to buy...?
0:11:44 > 0:11:47Are you only going to buy to rent? Are you only going to buy to sell?
0:11:47 > 0:11:50- No. We were originally going to buy this to sell it.- OK.
0:11:50 > 0:11:53But a friend of mine asked if he could have it,
0:11:53 > 0:11:55so we've actually already got someone who's seen it,
0:11:55 > 0:11:57- wants it and...- It just gets better.
0:11:57 > 0:12:00He's a builder as well, so he's going to help do it up.
0:12:00 > 0:12:03And when it comes to colours and worktops and things like that,
0:12:03 > 0:12:05he's going to have a say in it,
0:12:05 > 0:12:07so it's going to be a nice, family home for him and his kids.
0:12:11 > 0:12:13Everything is falling into place here.
0:12:13 > 0:12:17Question is, will the budget? They're not quite certain,
0:12:17 > 0:12:20but they reckon in between £5,000 and £7,000.
0:12:21 > 0:12:23What about your timescales, getting all the work done?
0:12:23 > 0:12:26- Three months, we think. - We both work full-time,
0:12:26 > 0:12:28- so it's going to be weekends and evenings.- OK.
0:12:28 > 0:12:32We've got the light nights now, so we'll be putting some hours in.
0:12:32 > 0:12:35Think it's a pretty good buy, this one, to start with.
0:12:35 > 0:12:37Not a massive amount of work,
0:12:37 > 0:12:39but it'll look really nice when we've finished.
0:12:39 > 0:12:41- I don't doubt that. It's got a nice feeling now.- Yeah.
0:12:41 > 0:12:44- When you're finished, it'll have an even better feel.- Oh, it will.
0:12:44 > 0:12:47You come back and see it when it's done.
0:12:47 > 0:12:49I might just do that. THEY LAUGH
0:12:49 > 0:12:51This is James and Malcolm's first venture,
0:12:51 > 0:12:54and I think they've got themselves a bit of a gem.
0:12:54 > 0:12:58But how will son and father-in-law get on working together?
0:12:58 > 0:13:00You can find out later on in the show.
0:13:03 > 0:13:05As you've probably guessed by the name,
0:13:05 > 0:13:08East Ham is in the east of London,
0:13:08 > 0:13:10and is a bustling area with lots of shops,
0:13:10 > 0:13:13a Tube station and links into Central London,
0:13:13 > 0:13:16and you've got easy access for motorists.
0:13:16 > 0:13:18Now, it's a pretty convenient place to be,
0:13:18 > 0:13:20but what sort of property will we find here?
0:13:20 > 0:13:21Time to check it out.
0:13:23 > 0:13:25Well, on that subject of convenience,
0:13:25 > 0:13:28today's lot is only ten minutes from the Tube station.
0:13:28 > 0:13:30So, what else has it got going for it?
0:13:32 > 0:13:34Well, this is a pretty, tree-lined street,
0:13:34 > 0:13:38and you have a little local cafe just at the end over there,
0:13:38 > 0:13:40ready for your early-morning coffee.
0:13:40 > 0:13:43So, all in all, a rather pleasant spot to be.
0:13:43 > 0:13:45But what about the property I'm here to see?
0:13:45 > 0:13:47Well, it's a three-bed terrace
0:13:47 > 0:13:51and it had a guide price of £210,000.
0:13:51 > 0:13:53Doesn't look too bad from the outside.
0:13:53 > 0:13:57I'm going to head on in and see if I'm still singing its praises.
0:14:00 > 0:14:03Well, you can always rely on there being an incy bit of character
0:14:03 > 0:14:05in these Victorian terraces.
0:14:05 > 0:14:07And, well, to be fair, it doesn't disappoint.
0:14:07 > 0:14:09You've got a lovely ceiling up there with some coving.
0:14:09 > 0:14:12You get that nice feel of ceiling height.
0:14:12 > 0:14:15Through here, first reception room. A good space.
0:14:15 > 0:14:18Incredibly dated everywhere. You'd expect that, really.
0:14:18 > 0:14:20And a gas fire,
0:14:20 > 0:14:23which tells me there's probably no central heating anywhere.
0:14:23 > 0:14:25Stairs leading up to the bedrooms.
0:14:25 > 0:14:28- Second reception room. - SHE LAUGHS
0:14:28 > 0:14:29Not sure about this feature.
0:14:29 > 0:14:32Not typical of the Victorian period, I don't think.
0:14:32 > 0:14:35Rather interesting bits of glass with sailing boats.
0:14:35 > 0:14:37Not sure whether I'd keep that.
0:14:37 > 0:14:39Again, another fire because there's no central heating.
0:14:39 > 0:14:43But a nice-size room. Now, right at the back of the property...
0:14:43 > 0:14:45Oh, no! Oh!
0:14:45 > 0:14:48Saying that's lovely and big and spacious, this isn't.
0:14:48 > 0:14:51This is the kitchen, and it's a disappointment.
0:14:51 > 0:14:54It's small, it's poky. And look.
0:14:55 > 0:14:58Downstairs bathroom, and it's tiny. Hmm.
0:14:58 > 0:15:01I'm just wondering whether we can move that upstairs,
0:15:01 > 0:15:03and then you'll have a much bigger kitchen.
0:15:03 > 0:15:05Let's investigate.
0:15:07 > 0:15:11There's a very individual approach to the use of glass.
0:15:11 > 0:15:13I mean, glass walls on a bathroom?
0:15:15 > 0:15:18The kitchen extension is not going to pass any inspections,
0:15:18 > 0:15:20as far as I can see.
0:15:21 > 0:15:24Let's have a little swan upstairs, shall we?
0:15:25 > 0:15:29I can really visualise what this house will be like once renovated.
0:15:29 > 0:15:32It's got a lovely feel to it. Quite excites me, actually.
0:15:32 > 0:15:35Anyway, let's not detract from the reason I'm up here,
0:15:35 > 0:15:39and that is to see if we can find anywhere to relocate that bathroom.
0:15:39 > 0:15:42Through the double doors. The big reveal. Ta-dah!
0:15:43 > 0:15:47That's a great surprise. In fact, that's a really huge door opening.
0:15:47 > 0:15:51Rather grand, don't you think? So, this is currently a bedroom.
0:15:51 > 0:15:54You've got two fabulous bedrooms already up here.
0:15:54 > 0:15:57Now, would this be the ideal spot for the bathroom?
0:15:57 > 0:15:59Well, I think yes, it would.
0:15:59 > 0:16:02Number one, you've got the bathroom directly underneath you,
0:16:02 > 0:16:04so that would be great for the plumbing just to come up.
0:16:04 > 0:16:08The only negative is it will make this room rather small.
0:16:08 > 0:16:12But you could think about taking this chimney breast away
0:16:12 > 0:16:14so you could corridor along here.
0:16:14 > 0:16:15You could push the bathroom over there.
0:16:15 > 0:16:17You don't always need a window in a bathroom,
0:16:17 > 0:16:19so you could put it to the side wall.
0:16:19 > 0:16:22Lots of options, but if this were my house,
0:16:22 > 0:16:26I would definitely get that bathroom from downstairs up here.
0:16:26 > 0:16:29# Moving on up Nothing can stop me... #
0:16:29 > 0:16:32With three good-sized bedrooms,
0:16:32 > 0:16:36you can afford to lose a little space to move that bathroom on up.
0:16:38 > 0:16:40Out the back, there's a good-sized garden.
0:16:40 > 0:16:43And if there's enough space for all these weeds and a shed,
0:16:43 > 0:16:45well, there's enough space for an extension,
0:16:45 > 0:16:48and therefore, a much bigger kitchen.
0:16:48 > 0:16:50Looking around the other properties in the street,
0:16:50 > 0:16:52I see many have loft extensions,
0:16:52 > 0:16:55so you could expand up as well as out.
0:16:55 > 0:16:57What do you think? Is it worth it?
0:16:58 > 0:17:00A local property expert can tell us
0:17:00 > 0:17:03if it would be financially worthwhile.
0:17:07 > 0:17:10In terms of renovation, I think the property needs a full overhaul,
0:17:10 > 0:17:12full redecoration, possibly rewire.
0:17:12 > 0:17:14It's going to need gas central heating.
0:17:14 > 0:17:16Double glazing is going to need putting in as well.
0:17:16 > 0:17:19I would have thought, by the time you start doing all the works...
0:17:19 > 0:17:21A full new plasterwork as well.
0:17:21 > 0:17:24Upstairs layout, really good. Three double bedrooms.
0:17:24 > 0:17:28It's going to be very popular once it is turned into what it will be.
0:17:28 > 0:17:30Well, let's turn it into some numbers first.
0:17:30 > 0:17:33What if you modernised and put it straight back to the market?
0:17:35 > 0:17:38With its current size and layout, with full renovation,
0:17:38 > 0:17:42I'd say, realistically, you're going to be looking around about £325,000.
0:17:42 > 0:17:45Current size property and layout, for rental purposes,
0:17:45 > 0:17:49you'd be looking around about £1,400 per calendar month.
0:17:49 > 0:17:52And if you extended out the back, that could be expensive,
0:17:52 > 0:17:56but would increase the rental and sales values.
0:17:56 > 0:17:58Doing the ground-floor extension only,
0:17:58 > 0:18:02you're probably looking between £330,000 to £340,000.
0:18:02 > 0:18:04If you go up into the loft conversion as well
0:18:04 > 0:18:06and doing the rear extension,
0:18:06 > 0:18:08you'd be looking around about £375,000.
0:18:09 > 0:18:12Well, there is a lot of work to be getting on with here,
0:18:12 > 0:18:15but what did you expect from an auction property?
0:18:15 > 0:18:17However, there's plenty of potential,
0:18:17 > 0:18:20and compared to a lot of houses I've seen,
0:18:20 > 0:18:23well, I think it's looking good on the inside.
0:18:23 > 0:18:25Let's head to the auction and find out who agreed.
0:18:27 > 0:18:29Nice-looking property. Haven't seen this one.
0:18:29 > 0:18:31I don't know. Start low.
0:18:31 > 0:18:32I'll start at 200.
0:18:32 > 0:18:38200 down here. 205. 210. 215. 220.
0:18:38 > 0:18:42225. 230. 235. 240.
0:18:42 > 0:18:44245. 250.
0:18:44 > 0:18:47250. 255.
0:18:47 > 0:18:51260. 265. 270.
0:18:53 > 0:18:56265. 270 elsewhere?
0:18:56 > 0:19:00266, as you've been so wonderful.
0:19:00 > 0:19:02Yeah, with you. I've got 265.
0:19:02 > 0:19:06I'm discounting it to 266 to you. 267.
0:19:06 > 0:19:08She's struggling. 267.
0:19:08 > 0:19:11It's a house in London. You won't get it soon.
0:19:11 > 0:19:13267.
0:19:13 > 0:19:16Can't believe this. Seems cheap, a nice house like this.
0:19:16 > 0:19:20If not, 266. First time, second time...
0:19:20 > 0:19:22267.
0:19:22 > 0:19:23268.
0:19:23 > 0:19:25269.
0:19:26 > 0:19:29268. First time, second time, third and last time.
0:19:29 > 0:19:30Are you all done?
0:19:30 > 0:19:33Sold. 268. Well done.
0:19:33 > 0:19:35The pleased-looking bidder
0:19:35 > 0:19:39getting the property for that final bid of £268,000
0:19:39 > 0:19:42was former nurse Rosie.
0:19:42 > 0:19:45She's a full-time landlord with three properties she lets out,
0:19:45 > 0:19:48so I wanted to hear her plans for this one.
0:19:50 > 0:19:52- Rosie, congratulations.- Thank you.
0:19:52 > 0:19:55Why did you want to buy this property on auction day?
0:19:55 > 0:19:57I had been looking at this area for quite a long time -
0:19:57 > 0:19:58about a year and a half -
0:19:58 > 0:20:01and decided they were really nice little houses.
0:20:01 > 0:20:03And I didn't have the money a year and a half ago.
0:20:03 > 0:20:08Had the money this year, and I saw this one come up at auction
0:20:08 > 0:20:09and I thought I'd go for it.
0:20:09 > 0:20:11- So, did you view this prior to the auction?- Yes.
0:20:11 > 0:20:14What did you think when you walked through the door?
0:20:14 > 0:20:17I thought it was lovely because it hadn't been messed about with.
0:20:17 > 0:20:20It's got all the old cornicing. It's got the tiles at the front.
0:20:20 > 0:20:23I loved it, but there's a lot of work to do. I recognise that.
0:20:23 > 0:20:27So, what are the downsides, in your mind, of a property like this?
0:20:27 > 0:20:31Well, the downside is, this area is relatively cheap for London,
0:20:31 > 0:20:33so that's how I was able to get it,
0:20:33 > 0:20:35but, then, I won't be able to sell it for very much,
0:20:35 > 0:20:38so I could over-invest in it, and I recognise that.
0:20:38 > 0:20:42So I think that I've got choices to make, basically.
0:20:44 > 0:20:47Rosie is hoping any profit she makes from this venture
0:20:47 > 0:20:50will help her daughter Kate get on the housing ladder
0:20:50 > 0:20:53as she's just returned from Africa, where she's been working.
0:20:55 > 0:20:59This house has definitely got to earn some money, so...
0:20:59 > 0:21:05If I were to go the whole hog, I would put the bathroom upstairs,
0:21:05 > 0:21:09extending the kitchen to the side and a little bit to the back,
0:21:09 > 0:21:11not to lose too much of the garden.
0:21:11 > 0:21:13And to open up the back room
0:21:13 > 0:21:16with the kitchen that will then exist
0:21:16 > 0:21:18and make a nice, big, living/kitchen.
0:21:18 > 0:21:20And the bathroom upstairs taking part of the third bedroom.
0:21:20 > 0:21:23That would really create a lovely, open-plan space,
0:21:23 > 0:21:25but it would also take quite a bit of your money.
0:21:25 > 0:21:27It would. That's the problem. That's the dilemma.
0:21:27 > 0:21:31I think the minimum, probably, would be to put the bathroom upstairs,
0:21:31 > 0:21:33although the agents tell me that they sell perfectly well
0:21:33 > 0:21:36with bathrooms downstairs. But it's poky, isn't it?
0:21:36 > 0:21:40It's very small. It's a small kitchen and it's a small bathroom.
0:21:40 > 0:21:41Yes, exactly.
0:21:41 > 0:21:45Of course, Rosie could do very little and hope prices rise.
0:21:45 > 0:21:48Sometimes, too many options can make for confusion.
0:21:50 > 0:21:51Oh, they're nice little houses.
0:21:51 > 0:21:53It's a shame not to do anything with them,
0:21:53 > 0:21:55but a lot of them are overdeveloped in London.
0:21:55 > 0:21:57I don't like that very much.
0:21:57 > 0:22:00I like them to retain their original features.
0:22:00 > 0:22:04# You know you better make up your mind
0:22:04 > 0:22:09# Pick up on one and leave the other behind... #
0:22:09 > 0:22:11Well, Rosie's going to have to make up her mind.
0:22:11 > 0:22:14Will it be the whole hog or a little piglet of a renovation?
0:22:14 > 0:22:17The good thing is that Rosie has experience
0:22:17 > 0:22:19with this type of property.
0:22:19 > 0:22:22It was a house that I bought with my mother in the '70s
0:22:22 > 0:22:24for her to live in.
0:22:24 > 0:22:27And it was getting seedy and run-down,
0:22:27 > 0:22:31and it was either sell it or do a development, so I developed it.
0:22:31 > 0:22:33Turned it from a three-bedroom, one-bathroom
0:22:33 > 0:22:35into four bedrooms, three bathrooms.
0:22:35 > 0:22:39- It's a really nice place now. - So, you are a dab hand.- Hmm.
0:22:39 > 0:22:42- You've done this before. - I probably spend too much money.
0:22:42 > 0:22:43Well, it'll be a shame for you
0:22:43 > 0:22:45not to do anything to a property like this
0:22:45 > 0:22:48because this is the sort of house that,
0:22:48 > 0:22:50I'm sure you know, you won't believe,
0:22:50 > 0:22:52if you do a development on this, it will look stunning.
0:22:52 > 0:22:55- It's a fantastic little house. - It's got great bones.
0:22:55 > 0:22:58It's really asking for a good development.
0:22:58 > 0:23:01Rosie's really torn between her heart
0:23:01 > 0:23:04and the need to make a profit to help Kate.
0:23:04 > 0:23:06She knows she can't afford an overspend,
0:23:06 > 0:23:09which brings me to the budget.
0:23:09 > 0:23:11To put an extension at the back downstairs
0:23:11 > 0:23:13would cost about 20 grand.
0:23:13 > 0:23:15To do the loft would cost about 30 grand.
0:23:15 > 0:23:16All the other bits and pieces,
0:23:16 > 0:23:19I don't think I'd come out with spending less than 70 grand
0:23:19 > 0:23:22- if I did the whole thing.- Mm-hm.
0:23:22 > 0:23:24So, what about if you just do the bathroom
0:23:24 > 0:23:28and you open up the kitchen space to just make the kitchen larger?
0:23:28 > 0:23:31I'm guessing about seven and a half grand, maybe.
0:23:31 > 0:23:35But then, do you leave the electrics as they are? Uh, I don't know.
0:23:35 > 0:23:38See, once you unpeel something, the rest uncovers
0:23:38 > 0:23:40- and you have to keep going backwards.- Yes, yes.
0:23:40 > 0:23:42And it makes something else a bit worse.
0:23:42 > 0:23:45You're appealing to the side of me that really loves developing houses.
0:23:45 > 0:23:46I love it.
0:23:46 > 0:23:49So, Rosie, I'm going to ask you this question,
0:23:49 > 0:23:50and you need to tell me right now.
0:23:50 > 0:23:53- THEY CHUCKLE - What are you going to do?
0:23:53 > 0:23:55Come on. You've got to make your mind up.
0:23:55 > 0:23:58I need to get the builders' prices in,
0:23:58 > 0:24:02and I'm definitely going to hang onto it for six months,
0:24:02 > 0:24:04and during that time, I will make up my mind.
0:24:04 > 0:24:06But you're not going to tell me, are you?
0:24:06 > 0:24:08I don't know. I don't know. THEY LAUGH
0:24:08 > 0:24:10Rosie, it's been really lovely meeting you today,
0:24:10 > 0:24:15- and I cannot wait to find out what you're going to do here.- Yeah, yeah.
0:24:15 > 0:24:17- Lovely to meet you. - Nice to meet you too.
0:24:17 > 0:24:18- Thank you.- Thank you.
0:24:18 > 0:24:20Well, what a dilemma Rosie has.
0:24:20 > 0:24:23Will we see a dramatic transformation
0:24:23 > 0:24:25or will the property look exactly the same?
0:24:25 > 0:24:28Either way, it sounds like Kate is going to benefit
0:24:28 > 0:24:31from the best bank of all - the bank of mum.
0:24:31 > 0:24:35Join me later in the show and you can find out what happens.
0:24:36 > 0:24:40Coming up, you won't believe what's in this care home in Stoke.
0:24:40 > 0:24:46A pub, a hairdresser's, a coffee shop, a sweet shop.
0:24:47 > 0:24:51Well, Martin, I believe Rosie has a budget issue in East Ham.
0:24:51 > 0:24:56I estimated around £100,000. Always, works come to more.
0:25:02 > 0:25:05Now we return to Carlton on the outskirts of Nottingham,
0:25:05 > 0:25:08where, earlier, I saw this three-bed, semidetached house
0:25:08 > 0:25:12that was bagged at auction by first-time property development team
0:25:12 > 0:25:14James and father-in-law Malcolm.
0:25:14 > 0:25:17Having spent £105,000 at auction,
0:25:17 > 0:25:20they were hoping this would be a successful first foray
0:25:20 > 0:25:22into development.
0:25:22 > 0:25:24What's made you actually want to go into property developing?
0:25:24 > 0:25:26- Try and make some money.- Yeah.
0:25:26 > 0:25:29Watching your show all the time doesn't help either.
0:25:29 > 0:25:31- And you thought, "I can do that myself"?- Yeah.
0:25:31 > 0:25:32- Starting with this one.- That's it.
0:25:34 > 0:25:36This much-loved and well-maintained family home
0:25:36 > 0:25:38was in need of a little modernising,
0:25:38 > 0:25:42including a new kitchen/diner and large family bathroom.
0:25:43 > 0:25:46I think it's a pretty good buy, this one, to start with.
0:25:46 > 0:25:48It'll look really nice when we've finished.
0:25:48 > 0:25:50You come back and see it when it's done.
0:25:50 > 0:25:53I might just do that. THEY LAUGH
0:25:53 > 0:25:55Thanks for the invitation, Malcolm.
0:25:55 > 0:25:56And here we are three month later.
0:25:56 > 0:25:59Let's see what the boys have done to the place.
0:26:09 > 0:26:12And as promised, Malcolm and James have removed the supporting wall
0:26:12 > 0:26:14from the kitchen and dining room,
0:26:14 > 0:26:17opening up the space to create a slick and modern kitchen/diner.
0:26:20 > 0:26:23When we first came in, there were walls everywhere
0:26:23 > 0:26:27that needed taking out, so they've all gone.
0:26:27 > 0:26:30The massive fireplace, so that had to come out.
0:26:30 > 0:26:33- That was...- Good fun.- Yeah.- Yeah.
0:26:33 > 0:26:36- James is the demolition expert. - I enjoyed that, yeah.
0:26:36 > 0:26:39I've just taken these walls out, taken the doors out,
0:26:39 > 0:26:41put the RSJ in.
0:26:41 > 0:26:44Everything was just done so it looks like it does now.
0:26:44 > 0:26:48Nice, open, spacious kitchen/diner now.
0:26:49 > 0:26:52So, I'd say a very successful renovation downstairs,
0:26:52 > 0:26:55and the transformation continues upstairs.
0:27:03 > 0:27:06Totally re-laid out the bathroom area.
0:27:06 > 0:27:08We had to move the door in the bedroom
0:27:08 > 0:27:10to make the bathroom bigger.
0:27:10 > 0:27:11And the nice, separate bath.
0:27:11 > 0:27:14- Nice, big space to walk around in.- Yeah.
0:27:14 > 0:27:17Just moving that door made so much difference to that bathroom.
0:27:17 > 0:27:19So happy with that bathroom. Absolutely love that.
0:27:19 > 0:27:21- Mm. It's come up well.- Yeah.
0:27:21 > 0:27:23# You know that you make it shine
0:27:23 > 0:27:26# It's you that I've been waiting to find.... #
0:27:26 > 0:27:29James, it turns out, has a bit of bathroom envy,
0:27:29 > 0:27:32and wouldn't mind this in his own house.
0:27:36 > 0:27:38They really have done a cracking job.
0:27:38 > 0:27:42Each of those bedrooms have been re-skimmed and repainted.
0:27:42 > 0:27:44And don't forget that space-saving solution
0:27:44 > 0:27:46in the room with the staircase junction.
0:27:46 > 0:27:49How chuffed are they with the end result?
0:27:49 > 0:27:52We are really, really pleased with how it's come out.
0:27:52 > 0:27:55I think the kitchen and bathroom really set it off.
0:27:55 > 0:27:59We actually spoke to the previous owner,
0:27:59 > 0:28:02and she came and actually had a look and saw what it was like.
0:28:02 > 0:28:04She couldn't believe her eyes of what the house was like
0:28:04 > 0:28:06that she grew up in.
0:28:06 > 0:28:09When we first met, Malcolm and James had already changed their plan
0:28:09 > 0:28:11from developing this for resale
0:28:11 > 0:28:13because a friend had shown interest in the property.
0:28:13 > 0:28:15So, what happened with that?
0:28:18 > 0:28:20My friend has rented it out off us.
0:28:20 > 0:28:22We've given him an opportunity to buy if off us
0:28:22 > 0:28:25in a couple of years' time, so he hasn't got to move his family again.
0:28:25 > 0:28:28- So, yeah, really happy with how it's all worked out.- Yeah.
0:28:30 > 0:28:33It seems everything has gone really well with this project.
0:28:33 > 0:28:34The tenants have moved in
0:28:34 > 0:28:37and done a bit of painting and decorating themselves.
0:28:37 > 0:28:39They've already made it their home.
0:28:39 > 0:28:42As far as budget goes, Malcolm and James were pretty flexible,
0:28:42 > 0:28:45and figured between £5,000 and £7,000.
0:28:45 > 0:28:48In the end, they've spent 5,600.
0:28:52 > 0:28:55But has that spend been worthwhile? We called in two local
0:28:55 > 0:28:58estate agents to give us their opinion on the property.
0:29:00 > 0:29:02My first impressions of the property are very favourable.
0:29:02 > 0:29:04I think they've done a nice job.
0:29:04 > 0:29:06The kitchen has been opened up,
0:29:06 > 0:29:10which I think has been a real plus for the property.
0:29:10 > 0:29:13A lot of people want the open-plan, family living area.
0:29:13 > 0:29:14I really like the layout
0:29:14 > 0:29:15of the kitchen,
0:29:15 > 0:29:18how they've knocked through the kitchen/dining room.
0:29:18 > 0:29:19That's really popular nowadays -
0:29:19 > 0:29:22to sort of have that open-plan sort of living facility.
0:29:23 > 0:29:25Eager to make a good profit
0:29:25 > 0:29:28from their first venture into the property developing market,
0:29:28 > 0:29:32Malcolm and James have spent a total of £110,600.
0:29:32 > 0:29:34So, what could this sell for?
0:29:36 > 0:29:37I think, on the sales market,
0:29:37 > 0:29:42this property would achieve between £125,000 and £130,000.
0:29:42 > 0:29:43The current market value,
0:29:43 > 0:29:48I see in the region of £115,000 to £120,000.
0:29:48 > 0:29:50That top valuation of 130 grand
0:29:50 > 0:29:56could give them a potential pre-tax profit of nearly £19,500.
0:29:56 > 0:30:00- What do they make of that? - I think they're a little bit low.
0:30:00 > 0:30:02- I think we could possibly get a little bit more.- Yeah.
0:30:02 > 0:30:05- I think we're pretty sure we can get a little bit more than that.- Yeah.
0:30:05 > 0:30:07But, obviously, we do the bits and bobs,
0:30:07 > 0:30:09then we know it's obviously going to be more.
0:30:09 > 0:30:12And plus, the house prices are going to rise again, so...
0:30:12 > 0:30:15- Yeah, we're pretty happy with it, aren't we?- Mm. Yeah.- Yeah.
0:30:15 > 0:30:17- We're in profit.- Exactly.
0:30:19 > 0:30:21Content with renting for now,
0:30:21 > 0:30:25I wonder how the agents value the property on the rental market.
0:30:25 > 0:30:28On the rental market, I think this property would achieve
0:30:28 > 0:30:31in the region of £595 per calendar month.
0:30:31 > 0:30:35In the current rental market, I would expect the property value
0:30:35 > 0:30:41to be in the region of £550 to £600 per calendar month.
0:30:43 > 0:30:48£600 per calendar month would mean a yield of 6.5%.
0:30:48 > 0:30:49Are they happy with that?
0:30:50 > 0:30:53- Spot-on.- They are bang on. - Spot-on.- Aren't they?- Yeah.
0:30:53 > 0:30:55That's exactly what we're getting, so...
0:30:55 > 0:30:58- At the top end of those as well. - Yeah, so, we're...
0:30:58 > 0:31:01- Well, we're definitely happy with that.- Yeah.- Yeah.
0:31:02 > 0:31:04So, a straightforward, profitable renovation
0:31:04 > 0:31:07right round the corner from James' house.
0:31:07 > 0:31:09Not bad for a first property.
0:31:09 > 0:31:11Will we be seeing him in the auction room again?
0:31:15 > 0:31:17- Oh, yeah. I'd go back to the auction again, yeah.- Yeah.
0:31:17 > 0:31:19I enjoyed that. That was a good experience.
0:31:19 > 0:31:22- That was a bargain, what we got. - Yeah, we were happy.
0:31:22 > 0:31:26It was more than we thought we'd have to pay, but in the end,
0:31:26 > 0:31:29- we realised it was a reasonable price.- Yeah.
0:31:29 > 0:31:30Still made money out of it.
0:31:30 > 0:31:32- That's the important thing. - That's it.
0:31:36 > 0:31:39- MARTIN:- Back in 2013, I was in Stoke.
0:31:39 > 0:31:41And if you're a regular viewer, you'll know that,
0:31:41 > 0:31:44when it comes to housing stock in Stoke,
0:31:44 > 0:31:47a firm favourite is the two-up, two-down terrace.
0:31:47 > 0:31:49So, surely, that's what I was here to see.
0:31:49 > 0:31:56# I thought that I would be above it all by now
0:31:58 > 0:32:04# In some country garden in the shade
0:32:04 > 0:32:09# But it's business as usual
0:32:09 > 0:32:11# Day after day... #
0:32:11 > 0:32:13No. No, no, no, no, no.
0:32:13 > 0:32:17I'm here to see this -
0:32:17 > 0:32:21a 43-bedroom former care home
0:32:21 > 0:32:25sitting on an acre and a half of land.
0:32:25 > 0:32:29So much to see, I don't know where to start.
0:32:29 > 0:32:32But with a guide price of £200,000,
0:32:32 > 0:32:35you might start with the word bargain.
0:32:40 > 0:32:42Now, clearly, we are entering the realms
0:32:42 > 0:32:48of a fairly specialist opportunity scenario here,
0:32:48 > 0:32:51but I shall try and inspire you with the options.
0:32:51 > 0:32:53Through what is a temporary door at the moment
0:32:53 > 0:32:56into what I guess was the main community area,
0:32:56 > 0:32:58it's a big space.
0:32:58 > 0:33:00You kind of get a feeling, when you come in here, of...
0:33:00 > 0:33:02Well, that there's a lot of clearing out to do,
0:33:02 > 0:33:04and also the age of the building.
0:33:04 > 0:33:08And so you've got to be aware of some of the building practices
0:33:08 > 0:33:09of the era in which this was built.
0:33:09 > 0:33:11One of the things I'm definitely looking out for
0:33:11 > 0:33:13is signs of asbestos.
0:33:13 > 0:33:16Other than that, let's just see what we find.
0:33:18 > 0:33:21And what a warren it was.
0:33:22 > 0:33:28With 43 bedrooms, beauty parlour areas, a kitchen,
0:33:28 > 0:33:33it just went on and on and on.
0:33:33 > 0:33:35I was feeling a little lost,
0:33:35 > 0:33:39so there was only one solution to help us grasp the geography.
0:33:39 > 0:33:40# Get out the map
0:33:40 > 0:33:44# Get out the map and lay your finger anywhere down. #
0:33:44 > 0:33:49A map. A layout of the actual place. Here's where I came in.
0:33:49 > 0:33:51There's that big lounge area there.
0:33:51 > 0:33:53Through here, the kitchen there,
0:33:53 > 0:33:56down here to where I was just a second ago,
0:33:56 > 0:33:57and I'm now at this point.
0:33:57 > 0:34:00You can see the bedrooms spreading out
0:34:00 > 0:34:03down this long corridor here and down here,
0:34:03 > 0:34:05so you get an idea.
0:34:05 > 0:34:08A really, really extensive building.
0:34:08 > 0:34:12And, OK, this wasn't a starter project for someone,
0:34:12 > 0:34:14but there were a number of options.
0:34:15 > 0:34:19Well, this place has certainly got my developer's mind racing,
0:34:19 > 0:34:22so let's just look at the options.
0:34:22 > 0:34:24First of all, you could leave it pretty much as it is.
0:34:24 > 0:34:27Obviously, you'd have to spend a bit of money doing it up,
0:34:27 > 0:34:30but converting it back into a care home
0:34:30 > 0:34:33or some kind of residential care facility -
0:34:33 > 0:34:34that's number one.
0:34:34 > 0:34:37Number two - you could think about keeping the existing building,
0:34:37 > 0:34:40but putting it to alternative uses.
0:34:40 > 0:34:43Thirdly, what about the option of developing it?
0:34:43 > 0:34:45Well, I've just been kind of going through
0:34:45 > 0:34:49some back-of-an-envelope calculation in my head,
0:34:49 > 0:34:52and I reckon, as an average in the UK at the moment,
0:34:52 > 0:34:58between 12 and 17 houses per acre, ballpark.
0:34:58 > 0:34:59So, you've got an acre and a half,
0:34:59 > 0:35:03so that's between 18 and, say, 25 houses on here.
0:35:03 > 0:35:08Let's say each of these houses would be worth a value of 150,000,
0:35:08 > 0:35:12and let's say each of them cost around about £50,000 to build.
0:35:12 > 0:35:14Take off the cost of buying the land,
0:35:14 > 0:35:16social housing you might have to build,
0:35:16 > 0:35:19putting in utilities, general bits and pieces,
0:35:19 > 0:35:22architects fees, blah, blah, blah, blah,
0:35:22 > 0:35:26I reckon - ballpark - if you built houses on here,
0:35:26 > 0:35:30the profit could be anywhere between 1.5 million and 2.5 million.
0:35:30 > 0:35:32Hmm.
0:35:32 > 0:35:33Hmm, indeed.
0:35:33 > 0:35:36But you would need permission for change of use
0:35:36 > 0:35:41and that isn't always easy to get, particularly on sites this size.
0:35:41 > 0:35:44Still, it was a fascinating prospect,
0:35:44 > 0:35:46and let's remind ourselves who fancied it
0:35:46 > 0:35:48when it went under the hammer.
0:35:53 > 0:35:54Lot number six is a former
0:35:54 > 0:35:56residential care home.
0:35:56 > 0:35:59It has on-site parking with gardens. There's kitchen and lounge.
0:35:59 > 0:36:02Site area of 1.5 acres.
0:36:02 > 0:36:04So, lot six.
0:36:04 > 0:36:09170, can I say? 170, bidding. Yeah? £170,000.
0:36:09 > 0:36:12Standing left at £170,000.
0:36:12 > 0:36:17I can go 175 now. At 175. At 175.
0:36:17 > 0:36:21180 right at the back. At 180. 185.
0:36:21 > 0:36:23185.
0:36:23 > 0:36:26Maybe not surprisingly, this was a popular lot,
0:36:26 > 0:36:30and we rejoin the bidding at 350,000.
0:36:30 > 0:36:32350.
0:36:33 > 0:36:35355. 360.
0:36:36 > 0:36:42365. 370. 375.
0:36:42 > 0:36:45Shaking his head. At 375, bid seated right.
0:36:45 > 0:36:48At £375,000.
0:36:48 > 0:36:50Bid is seated right at no mistake.
0:36:50 > 0:36:54At £375,000, then, for the first time.
0:36:54 > 0:36:58At £375,000 for the second time.
0:36:58 > 0:37:02Third and final time, at £375,000.
0:37:02 > 0:37:04You bought it, sir. Well done.
0:37:06 > 0:37:11At £375,000, the buyer was businessman Bill.
0:37:13 > 0:37:16He had bought it in partnership with his sons Will and Phil,
0:37:16 > 0:37:20the latter of whom came along with his dad to meet me.
0:37:20 > 0:37:24A family business run by Bill, Will and Phil, eh?
0:37:24 > 0:37:27# You and I
0:37:27 > 0:37:32# We're partners in rhyme... #
0:37:32 > 0:37:35- Bill, Phil, great to meet you both. - And you.- You too.
0:37:35 > 0:37:39- Congratulations.- Thank you. - Why have you bought this place?
0:37:39 > 0:37:41It's a good business proposition.
0:37:41 > 0:37:44And tell me more about the business proposition, then.
0:37:44 > 0:37:47Well, we're going to convert it back to its old self.
0:37:47 > 0:37:50Right. So, old self being a care home.
0:37:50 > 0:37:54It'll be a care home with particular interest
0:37:54 > 0:37:58to those who have got dementia and Alzheimer's.
0:37:58 > 0:38:01Are you going to do anything to sort of make your care home
0:38:01 > 0:38:03sort of stand out?
0:38:03 > 0:38:05We will have speakers throughout the corridors
0:38:05 > 0:38:07- playing soothing music.- Oh, great.
0:38:07 > 0:38:09- And maybe music of the era as well.- Oh.
0:38:09 > 0:38:13We might have a sensory area or a sensory room,
0:38:13 > 0:38:14we might put into the premises.
0:38:14 > 0:38:17- Nostalgia, reminiscence. - Reminiscence.
0:38:17 > 0:38:20Though we'll have a sensory garden as well,
0:38:20 > 0:38:22which will be a secure sensory garden.
0:38:22 > 0:38:23What do you mean by sensory garden?
0:38:23 > 0:38:27Um, so the residents are able to sit down, relax,
0:38:27 > 0:38:30have things that will heighten their senses.
0:38:30 > 0:38:33So, smells, visual things.
0:38:33 > 0:38:39So, from floral plants to fruit plants
0:38:39 > 0:38:40and fruit trees as well.
0:38:41 > 0:38:44A very noble idea indeed.
0:38:44 > 0:38:46And Bill and his sons knew the industry well
0:38:46 > 0:38:49as they owned four other care homes already.
0:38:49 > 0:38:52But this wasn't Bill's first career.
0:38:54 > 0:38:59Well, I opened the first discotheque in the country in Hanley
0:38:59 > 0:39:02more or less 50 years ago this month.
0:39:02 > 0:39:05What kind of music were you playing? I suppose stuff of the era.
0:39:05 > 0:39:07It was The Beatles, Rolling Stones.
0:39:07 > 0:39:10You had a lot of live bands as well, though, didn't you?
0:39:10 > 0:39:13- We had a lot of live bands, yes. - Like?
0:39:13 > 0:39:20Well, there was Elton John, Rod Stewart, Drifters, Four Tops,
0:39:20 > 0:39:23The Supremes, Martha Reeves and the Vandellas.
0:39:24 > 0:39:26Well, Bill's certainly rubbed shoulders
0:39:26 > 0:39:28with the cream of popular music
0:39:28 > 0:39:31at his Hanley disco called The Place.
0:39:31 > 0:39:33Absolutely fascinating.
0:39:33 > 0:39:36However, we're here to talk about this place.
0:39:36 > 0:39:39Bill reckoned a budget of £0.5 million would be required
0:39:39 > 0:39:42to achieve the specialist care home they planned,
0:39:42 > 0:39:44and that it would be ready for its first residents
0:39:44 > 0:39:46in about eight months.
0:39:48 > 0:39:51But when we came back a year later and Phil showed us around,
0:39:51 > 0:39:53with Bill being away in America,
0:39:53 > 0:39:56things hadn't quite gone according to plan.
0:39:57 > 0:40:01# And don't it seem like a long time?
0:40:01 > 0:40:07# Seem like a long, long time... #
0:40:07 > 0:40:08It had been a long time
0:40:08 > 0:40:11because another nursing home they were renovating
0:40:11 > 0:40:13had taken priority.
0:40:13 > 0:40:16But they still had big ideas for this place.
0:40:19 > 0:40:23In this entrance area, we're going to have a cafe.
0:40:23 > 0:40:25We're going to knock through the front area there
0:40:25 > 0:40:27and have a bar with a coffee shop
0:40:27 > 0:40:30with maybe even like a The Place coffee shop,
0:40:30 > 0:40:31which would be quite nice.
0:40:31 > 0:40:33We're going to have seating through here,
0:40:33 > 0:40:36maybe windows into the dining area over there.
0:40:36 > 0:40:39And just on the left here, we're looking at having an old sweet shop.
0:40:39 > 0:40:44But the ideas weren't just sweet. They were practical.
0:40:44 > 0:40:46Having stripped everything out,
0:40:46 > 0:40:49rewired and re-linked the utilities to the building,
0:40:49 > 0:40:51they now plan to extend.
0:40:51 > 0:40:53When the care home is complete,
0:40:53 > 0:40:56in about five or six months, we hope,
0:40:56 > 0:40:59we're looking to have 47 bedrooms,
0:40:59 > 0:41:01of which we'll have about four or five en suites.
0:41:01 > 0:41:05And we're looking at putting a large living area in
0:41:05 > 0:41:09with an extension, and that's going in any minute now.
0:41:10 > 0:41:13But adding an extension was going to cost,
0:41:13 > 0:41:16so how was their budget holding up at this point?
0:41:17 > 0:41:22So far, we have spent about £200,000 on the project,
0:41:22 > 0:41:27and we have another £500,000 to spend on the project.
0:41:27 > 0:41:33We will look, in total, at spending about £1 million.
0:41:33 > 0:41:39But that £1 million did include the 375,000 they spent at auction.
0:41:39 > 0:41:41But it was a good family team.
0:41:41 > 0:41:43Phil was in charge of renovations
0:41:43 > 0:41:46and his brother Will was the finance director.
0:41:46 > 0:41:49You've always got your problems working with your family members,
0:41:49 > 0:41:52as I'm sure many family businesses would agree.
0:41:52 > 0:41:55We cover different areas, so there is a little bit of overlap,
0:41:55 > 0:42:00but not massive overlap, so it's working well as a team.
0:42:00 > 0:42:03Well, that was in October 2014,
0:42:03 > 0:42:07but was the project complete when we came back a year on?
0:42:07 > 0:42:10Well, you can find out later in the show.
0:42:13 > 0:42:16So, we've seen how one of today's properties turned out.
0:42:16 > 0:42:18Now it's time to find out about the other two.
0:42:18 > 0:42:22So, let's see what a lot of time and hard work has produced.
0:42:23 > 0:42:25Back now to East Ham and, you've guessed it,
0:42:25 > 0:42:27the East End of London.
0:42:27 > 0:42:30East Ham is on the up, and so are the house prices,
0:42:30 > 0:42:34although not quite at the same rate as a lot of London property,
0:42:34 > 0:42:37so you can still bag a bargain.
0:42:37 > 0:42:43Well, it's a three-bed terrace and it had a guide price of £210,000.
0:42:43 > 0:42:45Doesn't look too bad from the outside.
0:42:45 > 0:42:48I'm going to head on in and see if I'm still singing its praises.
0:42:50 > 0:42:52Of course, at that price in London,
0:42:52 > 0:42:55you'd be expecting a bit of work that needs to be done,
0:42:55 > 0:42:57and you wouldn't be wrong.
0:42:57 > 0:43:00- # A change - # A change would do you good
0:43:00 > 0:43:05- # Would do you good - # A change would do you good... #
0:43:05 > 0:43:07This property was in need of some serious investment,
0:43:07 > 0:43:10including the installation of central heating
0:43:10 > 0:43:12and double-glazed windows,
0:43:12 > 0:43:14as well as new electrics and decoration,
0:43:14 > 0:43:17not to mention the kitchen and bathroom situation.
0:43:17 > 0:43:21Oh, no! This is the kitchen, and it's a disappointment.
0:43:21 > 0:43:24It's small, it's poky. And look.
0:43:25 > 0:43:29Downstairs bathroom, and it's tiny. Mm.
0:43:29 > 0:43:31Well, it looked to me like the best solution
0:43:31 > 0:43:34was to lose a bedroom upstairs and put the bathroom there,
0:43:34 > 0:43:36which, of course, means a loss in value,
0:43:36 > 0:43:40but the answer could be in doing, as the neighbouring properties had,
0:43:40 > 0:43:43extending up to the loft for that third bedroom.
0:43:43 > 0:43:46Who wouldn't prefer a decent-sized kitchen
0:43:46 > 0:43:48rather than this strange arrangement?
0:43:48 > 0:43:51Bedrooms with an en-suite? Yes.
0:43:51 > 0:43:54Kitchens with an en-suite? No, not really.
0:43:54 > 0:43:58But a big yes to the garden. Bags of potential, I thought.
0:43:58 > 0:44:01And evidently, so did lots of bidders at the auction.
0:44:01 > 0:44:04Sold 268. Well done.
0:44:05 > 0:44:09The house was snapped up by former nurse-turned-developer Rosie
0:44:09 > 0:44:11for 268,000.
0:44:11 > 0:44:14That was 58 grand over the guide price.
0:44:14 > 0:44:16Rosie's main aim was to make a profit
0:44:16 > 0:44:20which would be a deposit for daughter Kate to buy her first home.
0:44:20 > 0:44:23Determined to maximise the investment,
0:44:23 > 0:44:25Rosie was wary about overspending,
0:44:25 > 0:44:28and, try as I might, she wasn't for making her mind up
0:44:28 > 0:44:30on how she was going to do that.
0:44:31 > 0:44:34What are you going to do? Come on. You've got to make your mind up.
0:44:34 > 0:44:37I need to get the builders' prices in,
0:44:37 > 0:44:40and I'm definitely going to hang onto it for six months,
0:44:40 > 0:44:43and during that time, I will make up my mind.
0:44:43 > 0:44:44But you're not going to tell me, are you?
0:44:44 > 0:44:47I don't know. I don't know. THEY LAUGH
0:44:49 > 0:44:51It's now 15 months later,
0:44:51 > 0:44:54so let's see what Rosie's done with the place.
0:44:55 > 0:44:57# You ain't seen nothing yet
0:44:57 > 0:45:01# B-b-b-baby, you just ain't seen n-n-n-nothing yet
0:45:01 > 0:45:05# Here's something that you're never going to forget
0:45:05 > 0:45:07# Nothing yet You ain't been around... #
0:45:07 > 0:45:11So, uh, did Rosie forget that she had a house to do?
0:45:11 > 0:45:13Because I'm seeing nothing yet.
0:45:13 > 0:45:18No extension, no upstairs loo, no loft conversion, nada.
0:45:18 > 0:45:20She's not even done the dishes.
0:45:20 > 0:45:24So, what has Rosie been doing for the last 15 months?
0:45:24 > 0:45:27I was getting quotes in
0:45:27 > 0:45:30and trying to decide what to do for the best.
0:45:30 > 0:45:33The total cost of refurbishing and to put a loft extension
0:45:33 > 0:45:35was just quite a lot of money.
0:45:35 > 0:45:38I estimated around £100,000,
0:45:38 > 0:45:41and I got estimates from a few contractors.
0:45:41 > 0:45:45And always, works come to more money than you think they're going to.
0:45:45 > 0:45:49Rosie also tried to sell the property on fairly quickly
0:45:49 > 0:45:51after buying it.
0:45:51 > 0:45:54I did try putting it on the market initially,
0:45:54 > 0:45:58and the market price, the selling price last year, was very low.
0:45:59 > 0:46:03Although London house prices do tend to rise faster than elsewhere,
0:46:03 > 0:46:07it can vary from area to area, and timing can be everything.
0:46:07 > 0:46:12It's also a risky strategy to assume values will always rise.
0:46:12 > 0:46:17Rosie decided to wait it out, but this can mean incurring other costs.
0:46:17 > 0:46:20I bought it at auction for 268,000.
0:46:20 > 0:46:22I estimated that all the costs...
0:46:22 > 0:46:25Because I had to pay for the seller's costs
0:46:25 > 0:46:30and my own costs at auction - stamp duty, all the legal costs...
0:46:30 > 0:46:35I estimate that it cost me about 285 at that time.
0:46:35 > 0:46:41I think my financing since has cost about 15,000, plus council tax.
0:46:42 > 0:46:44Those costs can start to mount up.
0:46:44 > 0:46:48However, in this case, patience has paid off.
0:46:48 > 0:46:52I put the property on the market in early August,
0:46:52 > 0:46:55and they were going to market it for two weekends running.
0:46:55 > 0:46:58I had 17 offers on the first weekend,
0:46:58 > 0:47:00so I got what I thought was a good price.
0:47:02 > 0:47:06Rosie sold the property for 337,000.
0:47:06 > 0:47:10Once other costs like seller's fees and taxes are factored in,
0:47:10 > 0:47:13her profit comes to about £30,000,
0:47:13 > 0:47:15which is not bad for doing nothing to the place.
0:47:21 > 0:47:23We invited along two local estate agents
0:47:23 > 0:47:24to get their opinion.
0:47:25 > 0:47:27I think it's a very popular location.
0:47:27 > 0:47:31That's your biggest thing. You're on the Burges Estate, which is
0:47:31 > 0:47:32really popular with a lot of buyers.
0:47:32 > 0:47:34You're very close to the station as well,
0:47:34 > 0:47:36so good selling points for the local area.
0:47:36 > 0:47:38I think an extension would appeal, actually,
0:47:38 > 0:47:41because you could open it right out into possibly
0:47:41 > 0:47:43a kitchen/diner and maybe move the bathroom.
0:47:43 > 0:47:45Especially if you were to do an extension to the side,
0:47:45 > 0:47:47it'd give you more room on the ground floor.
0:47:47 > 0:47:50Considering it's the same as when we came last time,
0:47:50 > 0:47:52same sort of condition, obviously...
0:47:52 > 0:47:55In fact, it's probably deteriorated a bit in the kitchen.
0:47:55 > 0:47:58The way the market is, I think it's possibly had a good result
0:47:58 > 0:48:00by keeping hold of the property.
0:48:00 > 0:48:03Yes, it needs a huge amount of refurbishment work,
0:48:03 > 0:48:06but I think keeping onto it was potentially a very good idea.
0:48:06 > 0:48:09Well, it sounds like Rosie has lucked out here,
0:48:09 > 0:48:11with the market demand increasing dramatically
0:48:11 > 0:48:14over the 15 months she's had the property.
0:48:14 > 0:48:17So, let's hear the agent valuations, sales first.
0:48:19 > 0:48:21In my opinion, as it stands now,
0:48:21 > 0:48:25the property would be worth in the region of £350,000 to £360,000.
0:48:25 > 0:48:27As the property stands now in its current condition,
0:48:27 > 0:48:29she'll probably be looking for a sale value
0:48:29 > 0:48:32of between £350,000 and £375,000.
0:48:32 > 0:48:36Well, I didn't get that much. SHE CHUCKLES
0:48:36 > 0:48:41So, I don't know. But I've sold it for 337, so...
0:48:41 > 0:48:44Hmm. Well, what did I say? Timing is everything.
0:48:44 > 0:48:47However, Rosie is happy with what she got,
0:48:47 > 0:48:50but what if she decided to play the long game instead of selling,
0:48:50 > 0:48:53and had chosen to renovate and rent?
0:48:53 > 0:48:56Once extended and refurbished fully, I would think the rental value
0:48:56 > 0:48:59is in the region of £1,600 per calendar month.
0:48:59 > 0:49:01As a three-bedroom property, refurbished, rental value -
0:49:01 > 0:49:04you'd be looking between £1,600 and £1,700 per calendar month.
0:49:04 > 0:49:07I think that's probably pretty accurate, actually.
0:49:07 > 0:49:09Assuming she hadn't just hung onto the place,
0:49:09 > 0:49:12but had spent that 100 grand she'd estimated,
0:49:12 > 0:49:16that would have brought her total spend to 385,000,
0:49:16 > 0:49:20so that top rental would have given her a yield of about 5%.
0:49:20 > 0:49:22But she would have had all the hassle,
0:49:22 > 0:49:25and had to have spent time on it.
0:49:25 > 0:49:28Looks like selling on was the smart move.
0:49:28 > 0:49:33And will daughter Kate now have that deposit for her new home?
0:49:33 > 0:49:36Yes. Yes. That will go towards her.
0:49:36 > 0:49:39Don't tell her that, though. SHE CHUCKLES
0:49:39 > 0:49:40But, yes.
0:49:44 > 0:49:46Earlier in the show, we were following the story
0:49:46 > 0:49:53of this 43-bed care home in Stoke, which I first visited in April 2013.
0:49:53 > 0:49:58It was bought for £375,000 by a family business
0:49:58 > 0:50:02headed by dad Bill and with his sons Will and Phil.
0:50:03 > 0:50:07Bill originally had a career in entertainment,
0:50:07 > 0:50:11and stakes a claim of opening the first ever disco in Britain.
0:50:11 > 0:50:16But their current business and plans for this place were very different.
0:50:16 > 0:50:19Well, we're going to convert it back to its old self.
0:50:19 > 0:50:22Right. So, old self being a care home.
0:50:22 > 0:50:26It'll be a care home with particular interest
0:50:26 > 0:50:29to those who have got dementia and Alzheimer's.
0:50:29 > 0:50:33But when we came back in October 2014,
0:50:33 > 0:50:37Phil explained to us that another care home they had been renovating
0:50:37 > 0:50:40had taken precedence, and the home wasn't anywhere near ready.
0:50:42 > 0:50:46But over two years on from the project's start,
0:50:46 > 0:50:49this care home might have taken time,
0:50:49 > 0:50:51but it's certainly been worth the wait.
0:50:55 > 0:51:01# Time will take care of everything
0:51:01 > 0:51:08# There's no need to rush and get myself all worried
0:51:08 > 0:51:15# Time will take care of everything
0:51:15 > 0:51:22# There's no need to rush and get myself all worried... #
0:51:22 > 0:51:26The promised sensory garden is being planted out, but there's more.
0:51:26 > 0:51:31Yes, you did see a sign for a pub. And that's not all.
0:51:31 > 0:51:36In fact, it has all the amenities a little town or village could offer.
0:51:36 > 0:51:38# It'll take care of everything... #
0:51:38 > 0:51:43Time for the father and son team to explain what's been going on.
0:51:43 > 0:51:47We've completely gutted every part of it.
0:51:47 > 0:51:51We've extended the lounge dining area,
0:51:51 > 0:51:55and we put in a pub, a hairdresser's,
0:51:55 > 0:51:58a coffee shop, a sweet shop.
0:51:58 > 0:52:01We have an activities room,
0:52:01 > 0:52:04we have a training room, and we've got a library.
0:52:04 > 0:52:08We've fully wired the whole home with new electrics,
0:52:08 > 0:52:10we've got nurse call system,
0:52:10 > 0:52:12we've fully furnished the whole home, obviously,
0:52:12 > 0:52:15and we're just in the final throes
0:52:15 > 0:52:18of completing a sensory garden as well.
0:52:18 > 0:52:20It really is a home away from home,
0:52:20 > 0:52:23but all these additions have a more important use
0:52:23 > 0:52:26in helping the residents.
0:52:26 > 0:52:29There's been a lot of good practice that has shown
0:52:29 > 0:52:32that these reminiscence aids of sweet shop
0:52:32 > 0:52:35and old memorabilia and old items
0:52:35 > 0:52:38do encourage and stimulate people's memories and thoughts,
0:52:38 > 0:52:41and it's good to keep them active.
0:52:41 > 0:52:45And that's the same reason why we thought we'd put a pub in the home -
0:52:45 > 0:52:47so they've got another place to go.
0:52:47 > 0:52:50They can play darts, go to the pub for a pint,
0:52:50 > 0:52:53play some dominoes or have a pub quiz.
0:52:53 > 0:52:57We wanted to build almost like a community hub in the home
0:52:57 > 0:53:01rather than it be a home with a community outside.
0:53:01 > 0:53:03We wanted to bring the community inside.
0:53:03 > 0:53:07This is now the family's sixth care home -
0:53:07 > 0:53:10quite a departure from Bill's original career.
0:53:10 > 0:53:13But he's still technically got a foot in the music game,
0:53:13 > 0:53:18with the hallways having speakers to pipe in songs.
0:53:18 > 0:53:20Well, we wanted reminiscent and therapeutic music
0:53:20 > 0:53:22throughout the corridors.
0:53:22 > 0:53:25We feel that the benefits of the music should help calm
0:53:25 > 0:53:28and soothe some of the residents, and we will be taking requests.
0:53:28 > 0:53:32Well, I'd like to make a request just now, please, Phil.
0:53:32 > 0:53:36MUSIC: Bein' Green by Frank Sinatra
0:53:36 > 0:53:40Ah. There we are. I do love a bit of Frank Sinatra.
0:53:40 > 0:53:43But when it came to replacing the boiler,
0:53:43 > 0:53:45Frank can sum it up for us.
0:53:45 > 0:53:49# It's not that easy being green... #
0:53:49 > 0:53:53We decided to install two biomass boilers,
0:53:53 > 0:53:55which will reduce our carbon imprint.
0:53:55 > 0:53:58We'll be producing the right amount of power,
0:53:58 > 0:54:01but in a greener way with renewable trees
0:54:01 > 0:54:03that are called virgin trees,
0:54:03 > 0:54:05which have been cut down specifically for this.
0:54:05 > 0:54:07And they grow as many as they cut down.
0:54:07 > 0:54:10And they're from the UK rather than getting it shipped in.
0:54:10 > 0:54:12And there's very, very little wastage.
0:54:12 > 0:54:15There is a very small amount of ash,
0:54:15 > 0:54:18which appears in the bottom of the biomass boiler.
0:54:18 > 0:54:22And that ash will go onto the garden.
0:54:22 > 0:54:26That green energy system and this terrific finish
0:54:26 > 0:54:28has all come at a price.
0:54:30 > 0:54:34Well, we expected to spend around £600,000.
0:54:34 > 0:54:38In fact, we spent more like £700,000,
0:54:38 > 0:54:41and we've got about another 50,000 to finish it off
0:54:41 > 0:54:43over the next three or four weeks.
0:54:43 > 0:54:48We spent roughly £100,000 on the biomass boiler.
0:54:48 > 0:54:52Every other cost came within budget.
0:54:52 > 0:54:54This project has been highly successful,
0:54:54 > 0:54:58and everyone in the family has had their part to play.
0:54:58 > 0:55:01Both Phil and his brother Will have worked hard here,
0:55:01 > 0:55:03and their dad must be very proud.
0:55:05 > 0:55:07Well, working with the boys is great.
0:55:07 > 0:55:11I delegate to them. I'm a marvellous delegator.
0:55:11 > 0:55:17Phil is quite capable of handling all the refurbishment,
0:55:17 > 0:55:18as you can see.
0:55:18 > 0:55:24Will is the finance director, and he holds the purse strings.
0:55:24 > 0:55:30And my wife is the power behind the throne,
0:55:30 > 0:55:32as anybody will say.
0:55:32 > 0:55:35Phil will tell you I always have the last word,
0:55:35 > 0:55:38- and that's, "Yes, dear." - MARTIN CHUCKLES
0:55:38 > 0:55:41Absolutely no comment from me, Bill. But let's get the comments
0:55:41 > 0:55:44of two commercial property experts.
0:55:44 > 0:55:46And we begin with the agent who saw it
0:55:46 > 0:55:48the very first time we visited.
0:55:49 > 0:55:52I think they've done a fantastic transformation.
0:55:52 > 0:55:53They've incorporated
0:55:53 > 0:55:55some great features into the care home
0:55:55 > 0:55:59to include amenities for the residents,
0:55:59 > 0:56:04like the bar area, the sweet shop, the coffee shop, the library.
0:56:04 > 0:56:07They've significantly extended the living room area,
0:56:07 > 0:56:09so it's a really good facility.
0:56:09 > 0:56:11Yeah, the standard's very good.
0:56:11 > 0:56:13You can see the original building showing through in parts,
0:56:13 > 0:56:15but the standard is generally very good,
0:56:15 > 0:56:18and it has been tastefully decorated.
0:56:18 > 0:56:23The family business will have spent a total of roughly £1.1 million
0:56:23 > 0:56:24when everything is complete.
0:56:24 > 0:56:27And the agents believe it could generate a rental
0:56:27 > 0:56:31of between £75,000 to £95,000 per calendar month
0:56:31 > 0:56:33if all the rooms were full.
0:56:33 > 0:56:35But what if they sold the building on?
0:56:38 > 0:56:40When you consider the rental income
0:56:40 > 0:56:43that the property should be able to produce,
0:56:43 > 0:56:46the property, in my opinion, will be worth somewhere in the region
0:56:46 > 0:56:50of between £20,000 to £25,000 per room,
0:56:50 > 0:56:51which will equate to a capital value
0:56:51 > 0:56:55of between £1 million and £1.2 million.
0:56:55 > 0:56:57In my opinion, when the work is completed,
0:56:57 > 0:57:01the property will command a sum in the region of £1 million.
0:57:01 > 0:57:05We have had specialist care home valuers in
0:57:05 > 0:57:09who have valued this, on a going concern basis,
0:57:09 > 0:57:11at 2.47 million.
0:57:11 > 0:57:17As bricks and mortar, they value it at around 1.3 million.
0:57:17 > 0:57:22So, selling up as a going concern at Bill's figure could net them
0:57:22 > 0:57:26a pre-tax profit of just under £1.4 million.
0:57:26 > 0:57:30But the plan is to make this home the flagship of their business,
0:57:30 > 0:57:31and keep on expanding.
0:57:31 > 0:57:34So, is Bill pleased with his son's hard work?
0:57:36 > 0:57:38Phil's done a terrific job.
0:57:38 > 0:57:42This is what I would call a state-of-the-art conclusion
0:57:42 > 0:57:44to all his efforts.
0:57:44 > 0:57:48- I can't see it being beaten in the future, but hopefully...- We'll try.
0:57:48 > 0:57:50- Hopefully, you'll do your best. - Do it again.
0:57:54 > 0:57:56Well, we hope you enjoyed seeing what our buyers did
0:57:56 > 0:57:57with their auction purchases.
0:57:57 > 0:58:00And who knows, maybe you picked up a few useful nuggets along the way.
0:58:00 > 0:58:03Yeah, so make sure you join us next time for Homes Under The Hammer.
0:58:03 > 0:58:05- Goodbye.- Goodbye.- Bye-bye.