Episode 79

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0:00:02 > 0:00:04Hello and welcome to the show. There is no one size fits all

0:00:04 > 0:00:06when it comes to property developing.

0:00:06 > 0:00:08There are so many ways you can go.

0:00:08 > 0:00:11Hopefully, if everything does go well, you could even turn a profit.

0:00:11 > 0:00:12There's one place you can head to

0:00:12 > 0:00:14to potentially get yourself a bargain,

0:00:14 > 0:00:17and that's your local property auction.

0:00:42 > 0:00:44Making the right choices are crucial

0:00:44 > 0:00:46if you want to survive in the property game.

0:00:46 > 0:00:49Did the buyers on today's show choose wisely?

0:00:49 > 0:00:51You know what? There's only one way to find out.

0:00:53 > 0:00:57There's half-measures at this 2½-bedroom bungalow in Nottinghamshire.

0:00:57 > 0:01:00We are in through... I want to say, "through the door",

0:01:00 > 0:01:01but it's only half a door.

0:01:03 > 0:01:06This former council flat in Wandsworth, south London,

0:01:06 > 0:01:09could easily expand on its one-bedroom status.

0:01:09 > 0:01:11That could become bedroom number two.

0:01:13 > 0:01:15This large detached shop in Delabole, Cornwall,

0:01:15 > 0:01:17seems reasonable at first glance, but...

0:01:17 > 0:01:19It's a lulling you into a false sense of security.

0:01:19 > 0:01:21The rest of it is... Well, you'll see! Urgh!

0:01:24 > 0:01:26All of these properties have been sold at auction.

0:01:26 > 0:01:28We'll find out who bought them and what they paid for them

0:01:28 > 0:01:31when they went under the hammer.

0:01:31 > 0:01:32Madam, well done.

0:01:36 > 0:01:38DION: The village of Huthwaite in Nottinghamshire

0:01:38 > 0:01:40is also close to Derbyshire,

0:01:40 > 0:01:43both areas, of course, synonymous with coal mining.

0:01:45 > 0:01:47But there's some pretty countryside nearby

0:01:47 > 0:01:50and the market town of Mansfield is only five miles away.

0:01:52 > 0:01:54And so to the property I'm here to see.

0:01:54 > 0:01:57I've got to say, I'm quite intrigued by this one.

0:01:57 > 0:02:00In the auction catalogue it says it is a semidetached bungalow

0:02:00 > 0:02:03with two/three bedrooms.

0:02:03 > 0:02:05Is it a two-bed or is it a three-bed?

0:02:05 > 0:02:07I'm quite confused.

0:02:07 > 0:02:10What I do know - it has a guide price of £37,000-lus.

0:02:10 > 0:02:15I'm going to get inside and start counting bedrooms.

0:02:15 > 0:02:17It's also what I do when I can't sleep.

0:02:17 > 0:02:20I know it's sheep for most people, but it's an occupational hazard.

0:02:20 > 0:02:25Mind you, if I lived here I'd be counting pieces gravel at the front.

0:02:25 > 0:02:26Enough for any insomniac!

0:02:28 > 0:02:31We're in through... I want to say "through the door",

0:02:31 > 0:02:33but it's only half a door.

0:02:33 > 0:02:36As soon as you come in, it's in a bit of a state.

0:02:36 > 0:02:38I'm not sure what that cupboard is,

0:02:38 > 0:02:40but you've got that big window there.

0:02:40 > 0:02:43This seems a waste of space. I'd want to use this.

0:02:43 > 0:02:47Maybe make it into a reception room. I'd want to make it a bedroom.

0:02:47 > 0:02:49Make use of the big window.

0:02:49 > 0:02:50Get rid of that, whatever it is.

0:02:50 > 0:02:52What else do we have down the hallway?

0:02:52 > 0:02:56We have the kitchen just there to the left, which again is a big kitchen.

0:02:56 > 0:02:59A bit of a mess. A lounge here.

0:02:59 > 0:03:04A really big lounge in there with fireplace. Central heating as well.

0:03:04 > 0:03:06This must be bedroom one.

0:03:06 > 0:03:08Good-sized bedroom. Fitted wardrobes.

0:03:08 > 0:03:12Very old-fashioned, but a decent size all the same.

0:03:12 > 0:03:15Bathroom is just there.

0:03:17 > 0:03:19Start again with that.

0:03:19 > 0:03:23And here is where the end of the house would have been,

0:03:23 > 0:03:28and I am guessing this must be bedroom number two.

0:03:28 > 0:03:30Bit of an afterthought, because you've got the window

0:03:30 > 0:03:34to the bathroom just there looking into bedroom number two - not ideal.

0:03:34 > 0:03:36If you wanted to keep it as a bedroom,

0:03:36 > 0:03:40move that window to the gable end and I think you'd be sorted.

0:03:40 > 0:03:43So, bedroom one, bedroom two... Where's bedroom three?

0:03:43 > 0:03:45I'm going to have a look.

0:03:47 > 0:03:52So what I thought was a cupboard is actually the access up to the loft,

0:03:52 > 0:03:54which must be the third bedroom,

0:03:54 > 0:03:58but it definitely doesn't comply with building regulations.

0:03:58 > 0:04:01If you wanted to keep it as a bedroom and get it compliant,

0:04:01 > 0:04:04there's so many things you'd have to do - insulation,

0:04:04 > 0:04:08put some windows in and get some better access.

0:04:08 > 0:04:10MUSIC: Theme to Steptoe And Son

0:04:11 > 0:04:15I have to say, though, the overall interior of this bungalow

0:04:15 > 0:04:17reminds me of a sitcom set.

0:04:17 > 0:04:19Can't think which one, though(!)

0:04:20 > 0:04:24I do like the cool 1960s tiles in the kitchen.

0:04:24 > 0:04:26They're the only things I would keep.

0:04:32 > 0:04:34And surprisingly, although it's been empty for some time,

0:04:34 > 0:04:36there's no sign of damp.

0:04:36 > 0:04:38Now, what was that sitcom called?

0:04:49 > 0:04:51That's it. The Addams Family!

0:04:54 > 0:04:56As well as the gravel pit at the front of the house

0:04:56 > 0:04:58you've got space out the back as well.

0:04:58 > 0:05:01And I think it is quite a large area.

0:05:01 > 0:05:04Yes, it's in a bit of a mess, but you could quite easily turn this round.

0:05:04 > 0:05:08Get rid of all these slabs, level it out, stick some grass down -

0:05:08 > 0:05:10you'd have a nice back garden.

0:05:10 > 0:05:12That there as well is your garage.

0:05:12 > 0:05:15It is a bit dilapidated but I'd be inclined to keep that,

0:05:15 > 0:05:18stick your bikes in there - bit of storage. That would help.

0:05:18 > 0:05:20But the main reason I wanted to come out here is to just see

0:05:20 > 0:05:24the size of the plot, and it's a decent size.

0:05:25 > 0:05:28The old brain cells are working overtime to work out

0:05:28 > 0:05:31if this semi could be extended

0:05:31 > 0:05:32to create something much bigger.

0:05:32 > 0:05:35Let's ask a local estate agent, who should be able to advise us

0:05:35 > 0:05:38on the right approach.

0:05:38 > 0:05:39My advice would be to make this

0:05:39 > 0:05:42into a three-bedroom semidetached bungalow,

0:05:42 > 0:05:45with two bedrooms to the ground floor and a further bedroom

0:05:45 > 0:05:46to the first floor.

0:05:46 > 0:05:49I would keep the extension on the ground floor.

0:05:49 > 0:05:52It's disappointing it's not a little larger,

0:05:52 > 0:05:55so the new owner could look at probably extending that a bit more

0:05:55 > 0:05:58and making sure the bedroom on the first floor is compliant

0:05:58 > 0:06:00for building regulation purposes.

0:06:00 > 0:06:03What's the ballpark figure for doing all that work?

0:06:03 > 0:06:07I could see expenditure in the region of £25,000 on this property

0:06:07 > 0:06:11to make it into a comfortable three-bedroomed semidetached bungalow.

0:06:12 > 0:06:17So say you got it for the guide price of 37 and spent 25 on it,

0:06:17 > 0:06:20what would your £67,000 investment be worth?

0:06:22 > 0:06:27As a three-bedroomed semidetached bungalow, the price would be £105,000.

0:06:27 > 0:06:31A potential gain of £38,000, then. What about for rental?

0:06:32 > 0:06:36A three-bedroomed semidetached, I would expect £495 per calendar month.

0:06:38 > 0:06:41So it seems that third bedroom was the converted loft

0:06:41 > 0:06:44and it definitely doesn't comply with building regs.

0:06:44 > 0:06:46So currently, this is a two-bed property.

0:06:46 > 0:06:49Whoever takes this on has got their work cut out.

0:06:49 > 0:06:51Let's go to the auction house and see who wanted it.

0:06:51 > 0:06:54Lot number six.

0:06:54 > 0:06:58A two-bedroomed semidetached bungalow that needs a scheme of

0:06:58 > 0:07:00modernisation and improvement.

0:07:00 > 0:07:06I have a proxy bid in on this and I will start the bidding at £40,000.

0:07:06 > 0:07:09At £40,000 and it's in the market.

0:07:09 > 0:07:1341. 41,000. 42, two of you. 43 in the centre.

0:07:13 > 0:07:1544 is bid.

0:07:15 > 0:07:19The fast-paced bids came from several interested parties.

0:07:19 > 0:07:23We rejoin the bidding at £57,000.

0:07:23 > 0:07:2557. 58. At 58,000.

0:07:25 > 0:07:2759 elsewhere?

0:07:27 > 0:07:31At £58,000, finished and done.

0:07:31 > 0:07:3559. At 59....500.

0:07:35 > 0:07:3760,000.

0:07:37 > 0:07:4060 against you now. 60 and a half. 61.

0:07:40 > 0:07:41At 61,500.

0:07:43 > 0:07:45500.

0:07:45 > 0:07:4662.

0:07:46 > 0:07:48All done at 62,000.

0:07:48 > 0:07:49Once. Twice.

0:07:49 > 0:07:51Third chance.

0:07:51 > 0:07:53Sold at 62,000.

0:07:53 > 0:07:55Thank you.

0:07:55 > 0:07:57The successful bid came from Andy.

0:07:59 > 0:08:02He started property developing in 2008

0:08:02 > 0:08:04and he's been doing it ever since.

0:08:04 > 0:08:07So, he's no stranger to back-to-brick renovation,

0:08:07 > 0:08:09which is what's needed here.

0:08:09 > 0:08:1262 grand's worth of gut it and start again.

0:08:13 > 0:08:15Andy, nice to meet you, sir, and congratulations.

0:08:15 > 0:08:18- Thank you, Dion.- Tell me, what made you buy this property?

0:08:18 > 0:08:20I work with a number of investors.

0:08:20 > 0:08:23We buy properties for a number of reasons.

0:08:23 > 0:08:25One, obviously, is to make money.

0:08:25 > 0:08:27The other one is, being local to the area,

0:08:27 > 0:08:31we like to bring empty homes back into use

0:08:31 > 0:08:34because having a house like this sitting around for years

0:08:34 > 0:08:35doesn't make sense, really.

0:08:35 > 0:08:38- Who'll do the work for you? - We've got a team of contractors.

0:08:38 > 0:08:41- They do all of our work every time. - Do you let them get on with it?

0:08:41 > 0:08:46No, no, no. They get on with it, but I project-manage on a daily basis.

0:08:46 > 0:08:49- That's good.- You don't want to be there after they've done something -

0:08:49 > 0:08:51"You didn't tell us that."

0:08:51 > 0:08:54Andy, are there going to be any layout changes?

0:08:54 > 0:08:55Because as you come in the door,

0:08:55 > 0:08:58there's a room on the left you could make a bedroom.

0:08:58 > 0:09:00That will definitely be a third bedroom.

0:09:00 > 0:09:03- Yeah. - Regardless of what we do upstairs.

0:09:03 > 0:09:06If we do the loft conversion, then technically that could become

0:09:06 > 0:09:07a four-bedroom.

0:09:07 > 0:09:10The first thing we could do would be to get a structural surveyor in

0:09:10 > 0:09:13or structural engineer to have a look at it.

0:09:13 > 0:09:15But as far as building control is concerned,

0:09:15 > 0:09:19we need to strengthen the beam, we need to create a fire escape

0:09:19 > 0:09:21and, you know, all the usual stuff,

0:09:21 > 0:09:23all of which no problem to us at all.

0:09:23 > 0:09:26They cost a bit of money, but it's not a problem.

0:09:26 > 0:09:28- A little bit more money. - That's right.

0:09:28 > 0:09:30So the budget to turn all this around is how much?

0:09:30 > 0:09:33I reckon we'll do it for just under 30.

0:09:33 > 0:09:37- And you must have done your research on what they are selling for around here?- For sure.

0:09:37 > 0:09:39What would you expect to get back?

0:09:39 > 0:09:41For a quick sale, we expect about 110, for a quick sale.

0:09:41 > 0:09:45The only bit that we try to avoid is applying to the council

0:09:45 > 0:09:49for things like extension and all that because it delays the timing.

0:09:49 > 0:09:52- Of course.- As you know in property business, time can be money -

0:09:52 > 0:09:54not always, but it can be.

0:09:54 > 0:09:56Time can be money.

0:09:56 > 0:09:58And that also means if a property doesn't sell quickly,

0:09:58 > 0:10:00then it will be rented,

0:10:00 > 0:10:04and he's hoping that his team will have the work done in two months.

0:10:04 > 0:10:06And outside the front, and out the back,

0:10:06 > 0:10:08what are your plans in particular?

0:10:08 > 0:10:11At the front we're going to create off-street parking,

0:10:11 > 0:10:14So I'm already talking to the council to allow us to lower the kerb.

0:10:14 > 0:10:18We'll put some turf down there, some lawn.

0:10:18 > 0:10:19The back, we'll do the same thing.

0:10:19 > 0:10:22We'll fence it all, put some lawn there.

0:10:22 > 0:10:24Just make it a nice home for somebody,

0:10:24 > 0:10:26whether they're buying it or renting it.

0:10:26 > 0:10:29Andy did pay for a mining search claim,

0:10:29 > 0:10:32which reveals any history of subsidence.

0:10:32 > 0:10:37It's compulsory if you want a mortgage in these parts.

0:10:37 > 0:10:40Further research revealed other planning problems.

0:10:40 > 0:10:44Andy may have to demolish the rear extension, losing a bedroom.

0:10:44 > 0:10:48There's no records existing of planning permission being granted,

0:10:48 > 0:10:50or if it was built within building regulations.

0:10:52 > 0:10:55If the extension at the back is not compliant,

0:10:55 > 0:10:59then we will knock it down and do a full loft conversion upstairs.

0:10:59 > 0:11:01- OK.- It will change the budget and also change the pricing as well.

0:11:01 > 0:11:04Of course. It will increase the price on the property, won't it?

0:11:04 > 0:11:07- Yes. For sure. - So, Andy, do you know anything about the history of this house?

0:11:07 > 0:11:10I sure do. Yes, I've done some research.

0:11:10 > 0:11:12- More research?- Yes, absolutely!

0:11:12 > 0:11:14There were two brothers.

0:11:14 > 0:11:18They built this bungalow and the one next-door.

0:11:18 > 0:11:21They were chocolate manufacturers in this area.

0:11:21 > 0:11:25The other bungalow was inherited by the other brother's son.

0:11:25 > 0:11:29This one was inherited by the elder brother's two daughters

0:11:29 > 0:11:32who left it, really, unoccupied since 1985.

0:11:32 > 0:11:34Did he say chocolate?

0:11:34 > 0:11:37And, yes, sweet manufacturing still continues to this day.

0:11:37 > 0:11:39MUSIC: Sweet Dreams by Eurythmics

0:11:39 > 0:11:41Although the original factory premises were knocked down

0:11:41 > 0:11:43to make way for bungalows,

0:11:43 > 0:11:45manufacture was relocated to army Nissen huts

0:11:45 > 0:11:47at the back of the plot around 1960.

0:11:50 > 0:11:52I think this could be a selling point,

0:11:52 > 0:11:54having confectionery this convenient!

0:11:59 > 0:12:02# Sweet dreams are made of this... #

0:12:02 > 0:12:06Let's go back a little bit and tell us how you got into property

0:12:06 > 0:12:08in the first place. What were you doing beforehand?

0:12:08 > 0:12:10OK, I was in financial services.

0:12:10 > 0:12:15- I came across a CD of a wealth-creation expert...- OK.

0:12:15 > 0:12:18..who talked so much about properties.

0:12:18 > 0:12:20And something just resonated with me immediately,

0:12:20 > 0:12:22and then I did more research

0:12:22 > 0:12:26and then I discovered that the vast majority of what you would call wealthy people

0:12:26 > 0:12:30either made their money in properties, real estate,

0:12:30 > 0:12:32or they held their wealth in real estate.

0:12:32 > 0:12:34That day everything changed for me.

0:12:34 > 0:12:38Within two weeks, I started the process.

0:12:38 > 0:12:41- I think you're going to do brilliant. Good luck, sir. - Yep, look forward to it.

0:12:41 > 0:12:46What a charming man Andy is, and super-confident as well.

0:12:46 > 0:12:49I'm pretty sure in two months' time when we come back,

0:12:49 > 0:12:51this will be a lovely family home.

0:12:51 > 0:12:53The only question is, how many bedrooms will it have?

0:12:53 > 0:12:56You can find out later on in the programme.

0:12:59 > 0:13:02- LUCY:- Wandsworth is a district of south-west London.

0:13:02 > 0:13:04It takes its name from the River Wandle

0:13:04 > 0:13:06which joins the Thames at Wandsworth.

0:13:06 > 0:13:09Close proximity and transport links to the city centre,

0:13:09 > 0:13:12make it a desirable location.

0:13:12 > 0:13:16Its variety of housing stock also makes for a popular area,

0:13:16 > 0:13:18so there are no bargain-basement prices here.

0:13:22 > 0:13:26Wandsworth might be an expensive part of London

0:13:26 > 0:13:29within which to buy a property, but on the plus side,

0:13:29 > 0:13:30buy in this borough

0:13:30 > 0:13:34and you'll benefit from the cheapest council tax in the country.

0:13:34 > 0:13:36Every little helps, after all,

0:13:36 > 0:13:39especially since the average property price

0:13:39 > 0:13:43in this south London spot is over £630,000.

0:13:45 > 0:13:48The kerb appeal of a property is so important to a lot of people,

0:13:48 > 0:13:54and you can see that there are some gorgeous, lovely period houses along here.

0:13:54 > 0:13:57However, the guide price of the property I'm here to see

0:13:57 > 0:13:59was £250,000.

0:13:59 > 0:14:03Now, you'd be very lucky to get a characterful Victorian conversion

0:14:03 > 0:14:06for that price in this sought-after part of London.

0:14:06 > 0:14:10Instead, what you do get is a one-bedroom flat

0:14:10 > 0:14:12in this purpose-built block here.

0:14:12 > 0:14:16No, it's not as pretty from the outside, but let's not judge it too harshly

0:14:16 > 0:14:18until we've seen what it's like inside.

0:14:20 > 0:14:24Thankfully, this small 1950s block only has two levels,

0:14:24 > 0:14:27with four flats accessed by a communal door,

0:14:27 > 0:14:29so it shouldn't be too noisy.

0:14:31 > 0:14:36Well, you're certainly not going to find any beams or inglenook fireplaces in here,

0:14:36 > 0:14:41but what you do get over character, is functionality and space.

0:14:41 > 0:14:44I mean, this really is spacious. A lovely big bathroom there,

0:14:44 > 0:14:48a huge lounge there, and at the back here,

0:14:48 > 0:14:51this is a great-sized bedroom.

0:14:51 > 0:14:54But you have got the flat doors, flat walls, flat ceilings.

0:14:54 > 0:14:58There's no nooks and crannies, nothing to get too excited about.

0:14:58 > 0:15:01A wonderful space in there, A huge kitchen.

0:15:01 > 0:15:04And what I do really like about this place is

0:15:04 > 0:15:07all of the rooms lead off one of the other rooms.

0:15:07 > 0:15:09It's got tremendous flow - really lovely.

0:15:11 > 0:15:14Now, having had a really good look around this flat,

0:15:14 > 0:15:19I think you might just be able to fit a second bedroom in here.

0:15:19 > 0:15:23Now, the easiest way to do that will be to move this kitchen,

0:15:23 > 0:15:26into this lounge, and then that old kitchen space in there,

0:15:26 > 0:15:29that can become bedroom number two.

0:15:29 > 0:15:33Alternatively, you could start again and completely rearrange

0:15:33 > 0:15:34this whole flat,

0:15:34 > 0:15:38although I think that would be more costly and time-consuming.

0:15:38 > 0:15:42Either way, the potential to call this a two-bedroom flat

0:15:42 > 0:15:45is a big tick in the box, and a sure-fire way of adding value

0:15:45 > 0:15:47to this property.

0:15:47 > 0:15:49For London, these rooms are spacious,

0:15:49 > 0:15:52and a combined lounge-kitchen area

0:15:52 > 0:15:55would be in keeping with the modern style of living.

0:15:57 > 0:16:01One big negative with this property - the windows!

0:16:01 > 0:16:05Look at this. They're single-glazed, they're metal,

0:16:05 > 0:16:08they're awful, they don't even look nice.

0:16:08 > 0:16:11They need changing!

0:16:11 > 0:16:13The windows are part of the fabric of the building

0:16:13 > 0:16:15and are the freeholder's responsibility.

0:16:15 > 0:16:18You might not get permission to change them

0:16:18 > 0:16:21and the same goes for the layout rejig.

0:16:21 > 0:16:24So what does a local estate agent think?

0:16:24 > 0:16:27It's very unusual to find a property on the market in this area

0:16:27 > 0:16:30for in the region of £250,000.

0:16:30 > 0:16:32It's very sought after,

0:16:32 > 0:16:34it's very difficult to find much under 300,000.

0:16:34 > 0:16:37As a purpose-built block, this is really sought after.

0:16:37 > 0:16:40It's only two storeys, there are four flats in this part,

0:16:40 > 0:16:43the communal garden is well maintained.

0:16:43 > 0:16:44So, very popular.

0:16:44 > 0:16:48What about the feasibility of my second bedroom plans?

0:16:48 > 0:16:51Just to create that second bedroom, to make it into two,

0:16:51 > 0:16:54it's, say, £5,000 and you're going to achieve £30,000 more

0:16:54 > 0:16:56and so it's really worth doing.

0:16:56 > 0:17:00MUSIC: It Takes Two by Marvin Gaye and Kim Weston

0:17:00 > 0:17:03# It takes two, baby

0:17:03 > 0:17:06# Me and you

0:17:06 > 0:17:08# Just take two... #

0:17:08 > 0:17:10And how would it affect the valuation figures?

0:17:10 > 0:17:12So as a one-bedroom renovated flat,

0:17:12 > 0:17:15this flat could sell in the region of £350,000.

0:17:15 > 0:17:19For rental purposes, as a one-bedroom flat, we would look

0:17:19 > 0:17:23at achieving in the region of £1,200 per calendar month.

0:17:23 > 0:17:26And if converted with the freeholder's permission

0:17:26 > 0:17:27to a two-bed?

0:17:27 > 0:17:29As a two-bedroom flat,

0:17:29 > 0:17:32we would expect to achieve for sales purposes somewhere in the region

0:17:32 > 0:17:35of £400,000,

0:17:35 > 0:17:40and for rental, approximately £1,500 per calendar month.

0:17:40 > 0:17:43No, it might not be oozing character,

0:17:43 > 0:17:46but these purpose-built flats give you plenty of space,

0:17:46 > 0:17:50and in this instance, you can even create that second bedroom here.

0:17:50 > 0:17:51Ching-ching!

0:17:51 > 0:17:53Who saw the potential with this flat?

0:17:53 > 0:17:56Let's head to the auction and find out.

0:17:56 > 0:17:59Lot 34 is... Seen this one.

0:17:59 > 0:18:03Wandsworth SW18. One-bed purpose-built flat.

0:18:03 > 0:18:05Nice. Good to get purpose-built flats.

0:18:05 > 0:18:08Needs a bit of updating. Great location.

0:18:08 > 0:18:11Blimey. Houses on the road are going for a million upwards.

0:18:11 > 0:18:14I don't know, start 250?

0:18:14 > 0:18:15250 sitting down.

0:18:15 > 0:18:18250. 255 with the catalogue.

0:18:18 > 0:18:23260 sitting down. 265, 270.

0:18:23 > 0:18:27Bids climb steadily from the guide price of 250,000.

0:18:27 > 0:18:32We rejoin the bidding at £303,000.

0:18:32 > 0:18:34303.

0:18:36 > 0:18:38303 right at the back, another spot.

0:18:38 > 0:18:43304, 305, 306, 307,

0:18:43 > 0:18:46308, 309,

0:18:46 > 0:18:49310, 311.

0:18:49 > 0:18:52311. One more just over the ten. 311.

0:18:52 > 0:18:54310 down here.

0:18:54 > 0:18:58First time. Second time.

0:18:58 > 0:19:00Third and last time, if you're all done.

0:19:00 > 0:19:01Sold, 310.

0:19:01 > 0:19:03Good buy. I like that one.

0:19:03 > 0:19:06The successful bidder in the packed auction room escaped

0:19:06 > 0:19:08the scrutiny of our cameras,

0:19:08 > 0:19:12but accountant Tony did catch up with me later on

0:19:12 > 0:19:17in his £310,000 purchase, along with his builder Mark.

0:19:17 > 0:19:19Guys, congratulations.

0:19:19 > 0:19:22- So who has actually bought this flat?- HOARSELY: Me.

0:19:22 > 0:19:26So, Tony, you've bought the flat. Mark, what's your involvement going to be?

0:19:26 > 0:19:29I'll be Tony's builder, looking after the build right through to completion.

0:19:29 > 0:19:31And today you're going to be helping Tony explain

0:19:31 > 0:19:34- because he's lost his voice, haven't you?- I have.

0:19:34 > 0:19:37- How did you lose your voice?- Flu. - I'm glad you could make it today.

0:19:37 > 0:19:41- So you wanted to buy this property. - I did.- What is it you liked about this area?

0:19:41 > 0:19:45- I think it's the location, and the rooms are so big.- Yeah.

0:19:45 > 0:19:47What is it that you want to achieve with this?

0:19:47 > 0:19:51- Well, I want to convert from a one-bedroom into a two.- OK.

0:19:51 > 0:19:54And then probably will sell it on...

0:19:54 > 0:19:56- OK.- ..in a few months' time.

0:19:56 > 0:19:59OK. So the aim here is to convert a one-bedroom...

0:19:59 > 0:20:00- Absolutely.- ..into a two?

0:20:00 > 0:20:02- Yes.- That's what you want to try and achieve?- Yes.

0:20:02 > 0:20:05What do you think would work best here?

0:20:05 > 0:20:08I think the lounge that we're in at the moment should be converted into

0:20:08 > 0:20:10- the main bedroom.- Really? - Yeah. Absolutely.- OK.

0:20:10 > 0:20:14And then the kitchen will be bedroom two and then what is the lounge...

0:20:14 > 0:20:17What is the bedroom at the moment will become the lounge.

0:20:17 > 0:20:18And it'll be a kitchen/diner.

0:20:18 > 0:20:22Hmm. It's interesting that Mark feels the bedroom is the best option

0:20:22 > 0:20:25for conversion to a lounge/kitchen/diner,

0:20:25 > 0:20:28but will he be making use of the built-in cupboard space?

0:20:29 > 0:20:32Tony said he intends to sell on in a few months,

0:20:32 > 0:20:37so having paid 310 grand, a not insignificant sum,

0:20:37 > 0:20:40he's got some leeway to refurbish and make a profit

0:20:40 > 0:20:45if the agents' valuation of 400,000 for a two-bed flat is on the money.

0:20:46 > 0:20:50So your job here is to completely and utterly and solely

0:20:50 > 0:20:52- just add value to this building? - Absolutely.

0:20:52 > 0:20:55So what other ideas do you have?

0:20:55 > 0:20:57I think we've got to make it contemporary.

0:20:57 > 0:21:00- Yes.- Although it's a '50s-type block,

0:21:00 > 0:21:03when you walk in the front door it doesn't have to be that,

0:21:03 > 0:21:07and I think with the light we've got here, I think that will work really, really well.

0:21:07 > 0:21:09In what way are you going to make this contemporary?

0:21:09 > 0:21:11What little features are you going to put in the flat?

0:21:11 > 0:21:15I think because you're going to have a kitchen/diner, it's got to work on its own.

0:21:15 > 0:21:18As you come into there, that's what you're going to see first,

0:21:18 > 0:21:21so that's got to be bright and airy, nice and simple.

0:21:21 > 0:21:25And I think the bedrooms are quite a large size for a flat of this size,

0:21:25 > 0:21:29so I think it won't need too much in the way of alteration,

0:21:29 > 0:21:32and keep it nice and as big as we can make it feel.

0:21:32 > 0:21:34- I think that's the way forward. - So, Tony,

0:21:34 > 0:21:36how much property experience do you have?

0:21:36 > 0:21:40- None.- None?- No.- This is your first project?- My first project.

0:21:40 > 0:21:43- Now, Tony, I know you're an accountant.- I am.- You're very busy.

0:21:43 > 0:21:45Surely that's going to help you keep an eye on the budget.

0:21:45 > 0:21:47- Surely you're going to... - Should help with the costings.

0:21:47 > 0:21:51- You're going to be right on target with it all, aren't you? - We'll have to wait and see.

0:21:51 > 0:21:54So, obviously you're planning on moving a lot around.

0:21:54 > 0:21:56- Yes.- Obviously you're not going to be taking out a lot of walls

0:21:56 > 0:21:58- or any huge structural change. - No, no.

0:21:58 > 0:22:01But will you need permission from the freeholder to do the work here?

0:22:01 > 0:22:05Yes, we will, yeah. Yeah, we need permission to convert from one to two bedrooms,

0:22:05 > 0:22:07but we don't need planning permission.

0:22:07 > 0:22:09So, what do you think about the communal areas?

0:22:09 > 0:22:12The great thing about this building is you've got lots of space.

0:22:12 > 0:22:16It's quite open as you walk in. But when it comes to, you know,

0:22:16 > 0:22:20putting some paint on the walls and making the area liveable,

0:22:20 > 0:22:23you've got to rely on the freeholder and the funds available.

0:22:23 > 0:22:26I mean, how much do you know about that?

0:22:26 > 0:22:30Well, I know they are going to replace all the windows.

0:22:31 > 0:22:34It's the local council that are freeholders in this case

0:22:34 > 0:22:38and it's definitely a bonus to discover that they will be replacing

0:22:38 > 0:22:40all the windows.

0:22:40 > 0:22:43- That's going to add value to this property.- Absolutely.

0:22:43 > 0:22:45- Before the hammer went down, did you know that?- I did.

0:22:45 > 0:22:49- Did you read the legal pack? - I did indeed.- So how involved did you get with all of that?

0:22:49 > 0:22:52- None at all.- So you didn't have any pre-auction involvement whatsoever?

0:22:52 > 0:22:54- First time I saw it was today. - Really?- Yeah.

0:22:54 > 0:22:58- And what are your thoughts now you've seen it? - I think it was a good buy.

0:22:58 > 0:23:00And you think you can add the amount of value that it needs?

0:23:00 > 0:23:02Yes, I think so, yeah. I think so, no problem.

0:23:02 > 0:23:05So will it be you on your own coming in or have you got a team of guys...?

0:23:05 > 0:23:07I've got a team of guys, yeah,

0:23:07 > 0:23:10who work with us permanently and they'll be here full-time.

0:23:10 > 0:23:11So are you local to the area?

0:23:11 > 0:23:14I live in Bromley, so not too far, yes.

0:23:14 > 0:23:16Not too bad. Not too bad a journey.

0:23:16 > 0:23:18Can you foresee any problems at all?

0:23:18 > 0:23:20Only with the freeholder, I think.

0:23:20 > 0:23:23And just on the timeframe,

0:23:23 > 0:23:25I think dealing with a local authority

0:23:25 > 0:23:28might take a bit longer than you'd hope for,

0:23:28 > 0:23:30so if that can move along nicely,

0:23:30 > 0:23:32then no problem at all with the build.

0:23:32 > 0:23:35Well, Tony, congratulations. I hope you get your voice back

0:23:35 > 0:23:38- and you feel better soon. - So do I, so do I.

0:23:38 > 0:23:42- Mark, until then you're just going to have to fill in the gaps. - I'll have to learn to lip-read!

0:23:42 > 0:23:46It's been absolutely fantastic meeting you both and I can't wait to see the end result here.

0:23:46 > 0:23:50- Thank you.- Thank you. - Congratulations.- OK.- Thank you.

0:23:50 > 0:23:54So buying this flat has made poor Tony speechless!

0:23:54 > 0:23:58Still, at least Mark is on hand, helping him through with his first project.

0:23:58 > 0:24:01How will they get on? I can't wait to see.

0:24:01 > 0:24:03Join me later and you can find out.

0:24:05 > 0:24:09Still to come, shocking discoveries in this shop in Delabole, Cornwall.

0:24:09 > 0:24:12Oh, good news! One thing at least you won't have to do is sort out the electrics,

0:24:12 > 0:24:15cos they look fine(!)

0:24:16 > 0:24:19Shocking news, too, from Wandsworth, south London,

0:24:19 > 0:24:21but at least Tony's got his voice back.

0:24:21 > 0:24:24I decided to leave it as a one-bedroom flat.

0:24:27 > 0:24:30DION: Back to Huthwaite in Nottinghamshire,

0:24:30 > 0:24:33where I saw this two/three-bedroom bungalow.

0:24:35 > 0:24:38There had been an attempt to create a bedroom in the loft space,

0:24:38 > 0:24:41but it was feared it didn't comply with building regulations,

0:24:41 > 0:24:46and the stair access compromised space in what could otherwise be the front bedroom.

0:24:49 > 0:24:53The property was bought for £62,000 by Andy and a group of investors,

0:24:53 > 0:24:56planning to renovate and sell on at a profit.

0:24:58 > 0:25:01Andy had several options in mind when it came to planning

0:25:01 > 0:25:03the internal space.

0:25:03 > 0:25:04As you come in the door,

0:25:04 > 0:25:07there's a room on the left you could make a bedroom.

0:25:07 > 0:25:09That will definitely be a third bedroom...

0:25:09 > 0:25:12- Yeah.- ..regardless of what we do upstairs.

0:25:12 > 0:25:13But if we do the loft conversion,

0:25:13 > 0:25:16then technically that could become a four-bedroom.

0:25:17 > 0:25:21One of the bedrooms was housed in the rear extension of the house.

0:25:21 > 0:25:24There were suspicions it had been built without planning permission

0:25:24 > 0:25:26or conforming to the regulations.

0:25:26 > 0:25:29For example, where else would you find a bedroom window

0:25:29 > 0:25:31looking into a bathroom?

0:25:31 > 0:25:35But Andy still had plans to keep the bedroom counter.

0:25:36 > 0:25:39If the extension at the back is not compliant,

0:25:39 > 0:25:42then we will knock it down and then do a full loft conversion upstairs.

0:25:42 > 0:25:44- OK.- Which obviously will change the budget...

0:25:44 > 0:25:46- Yes.- And will change the pricing as well.

0:25:46 > 0:25:49- Of course. Increase the price of the property.- Yes, for sure.

0:25:49 > 0:25:52We're back six months later to see Andy's improvements.

0:25:59 > 0:26:01The bathroom's more than a bit better. It's fantastic.

0:26:07 > 0:26:10The loft conversion has been brought up to building reg standards

0:26:10 > 0:26:13and now has plenty of light from roof windows.

0:26:14 > 0:26:18The master bedroom is now up here with en-suite facilities.

0:26:21 > 0:26:24When we asked Andy what he'd done to the house, he simply answered,

0:26:24 > 0:26:25"Everything."

0:26:29 > 0:26:33There's a new staircase accessing the loft space from the kitchen.

0:26:33 > 0:26:35Remember the kitchen?

0:26:35 > 0:26:38MUSIC: Beautiful Future by Primal Scream

0:26:48 > 0:26:52Because the stairs lead from the kitchen, a fire door has to be used,

0:26:52 > 0:26:55a door that will last a minimum of 30 minutes in a fire.

0:26:55 > 0:26:58It's known in the trade as an FD30.

0:27:02 > 0:27:04But the staircase has robbed some space from what is now

0:27:04 > 0:27:07the smallest bedroom on the left as we enter the house.

0:27:14 > 0:27:17The non-symmetrical fireplace and chimneybreast in the lounge

0:27:17 > 0:27:20has been removed, with added support from steelwork.

0:27:23 > 0:27:26The final bedroom doesn't have fitted wardrobes any more,

0:27:26 > 0:27:29but I know which version I'D prefer to sleep in.

0:27:37 > 0:27:40Finally, to the old bedroom at the rear of the house -

0:27:40 > 0:27:43housed in the extension he feared he'd have to demolish.

0:27:46 > 0:27:48His fears were well-founded,

0:27:48 > 0:27:52but the demolition paved the way for patio doors into the garden

0:27:52 > 0:27:54and frosted glass in the bathroom,

0:27:54 > 0:27:56much more conventionally overlooking the back garden.

0:27:59 > 0:28:01To the front there's a new tarmac drive

0:28:01 > 0:28:04with a dropped kerb and off-street parking,

0:28:04 > 0:28:08but achieving this wasn't as straightforward as looks might suggest.

0:28:09 > 0:28:12The front exterior gave us one of the biggest challenges

0:28:12 > 0:28:17because when we first bought the property, the front was elevated

0:28:17 > 0:28:19with a lot of gravel,

0:28:19 > 0:28:22which apparently covered a lot of things.

0:28:22 > 0:28:24When we removed the gravel,

0:28:24 > 0:28:27we discovered there were several big tree stumps

0:28:27 > 0:28:30about that thick and about that deep.

0:28:30 > 0:28:34It took a whole week of using high-powered diggers

0:28:34 > 0:28:36just to remove them.

0:28:36 > 0:28:41We also discovered that there was an old water pipe, a copper pipe,

0:28:41 > 0:28:42that was underneath there,

0:28:42 > 0:28:46and in the process of digging up the stumps,

0:28:46 > 0:28:49that was damaged, so we had to call the water company to replace that.

0:28:49 > 0:28:51They were factors which contributed

0:28:51 > 0:28:55to delays on Andy's original two-month timescale.

0:28:55 > 0:28:59It's taken just over five months, largely to do the loft conversion,

0:28:59 > 0:29:01the demolition of the extension,

0:29:01 > 0:29:07the extra work with the tarmac and the tree stumps at the front of the property.

0:29:07 > 0:29:10And we all know the saying, "Time is money."

0:29:10 > 0:29:12I had a budget of 30,000,

0:29:12 > 0:29:15but I knew that we would probably overspend on that,

0:29:15 > 0:29:17due to some of the uncertainties,

0:29:17 > 0:29:20particularly with the rear extension,

0:29:20 > 0:29:24and the total spend has now come in to £41,000.

0:29:26 > 0:29:29We called in two estate agents with all the important local knowledge

0:29:29 > 0:29:31to give us an idea of what a property like this

0:29:31 > 0:29:34would be worth on their patch.

0:29:34 > 0:29:37First, the agent who saw the property before the work began.

0:29:40 > 0:29:42This is my second visit to the property.

0:29:42 > 0:29:46I was intrigued to see how it developed and I'm not disappointed.

0:29:46 > 0:29:48The transformation is fantastic.

0:29:48 > 0:29:50This is the first time I've been to the property.

0:29:50 > 0:29:52My first impression is that this is a home

0:29:52 > 0:29:54that's been extremely well modernised.

0:29:54 > 0:29:55The specification is stylish,

0:29:55 > 0:29:58the decorations are neutral and it's going to have wide appeal.

0:30:00 > 0:30:05Andy bought for £62,000 and has spent 41,000 refurbishing,

0:30:05 > 0:30:09so anything more than £103,000 is potential profit for him

0:30:09 > 0:30:13and his investors. So has it all been worth it?

0:30:15 > 0:30:17We have to bear in mind that at the end of the day

0:30:17 > 0:30:20it is a semidetached property, but even so, because of the condition,

0:30:20 > 0:30:25I would expect this to be achieving in the region of £130,000 now.

0:30:25 > 0:30:27My personal professional recommendation would be

0:30:27 > 0:30:30to put it on the market at an asking price of,

0:30:30 > 0:30:33shall we say, offers around £135,000.

0:30:33 > 0:30:36I'd advise the vendor to give careful consideration to any offer

0:30:36 > 0:30:38of £125,000 and above.

0:30:39 > 0:30:43We've sold the property for £130,000,

0:30:43 > 0:30:47which has realised us a profit of £26,000.

0:30:47 > 0:30:51Even though Andy's deducted £1,000 worth of expenses,

0:30:51 > 0:30:53it still sounds like a result to me.

0:30:53 > 0:30:56Andy's been developing since 2008.

0:30:56 > 0:30:59Has this project taught him anything new?

0:30:59 > 0:31:02Can you do a project and not learn anything?

0:31:02 > 0:31:04We've learnt... I've learnt quite a lot.

0:31:04 > 0:31:09It was the first time we've had to engage a structural engineer

0:31:09 > 0:31:13in our project. It's the first time we've had to lower the kerb

0:31:13 > 0:31:15to the front of a property

0:31:15 > 0:31:19and it's the first time we've done a complete driveway as well.

0:31:19 > 0:31:23So I've learnt a lot about the process for those things

0:31:23 > 0:31:28and also a reality check of the costs involved in doing them.

0:31:28 > 0:31:30Andy's not going to rest on his laurels.

0:31:30 > 0:31:34He starts his next project in three days' time.

0:31:35 > 0:31:38MUSIC: Albatross by Fleetwood Mac

0:31:41 > 0:31:43- MARTIN:- Cornwall has given us many things.

0:31:43 > 0:31:48It gave us Mick Fleetwood, the drummer in Fleetwood Mac, for instance,

0:31:48 > 0:31:53and the village I'm in gave us the first commercial wind farm in the UK.

0:31:53 > 0:31:57But probably the most famous export from here is slate.

0:31:57 > 0:32:01The village of Delabole has the oldest slate quarry in the UK,

0:32:01 > 0:32:03and some would say the world.

0:32:03 > 0:32:07Whatever the case, Delabole's slate is world-renowned.

0:32:11 > 0:32:13Well, just a half a mile from the famous slate mine

0:32:13 > 0:32:16in the centre of the village is the property I'm here to see,

0:32:16 > 0:32:20and it certainly sounds like you get a lot of property for your money -

0:32:20 > 0:32:23a commercial unit and three flats,

0:32:23 > 0:32:27all for a guide price of £100,000-£125,000,

0:32:27 > 0:32:29although, judging by the outside,

0:32:29 > 0:32:33it's a while since this has been open for business.

0:32:33 > 0:32:36Oh, yes, it is a bit of a mess.

0:32:36 > 0:32:40Erm, anyway, let's try and see through that to describe what we've actually got.

0:32:40 > 0:32:44Obviously, a little sandwich bar area at one point over that way

0:32:44 > 0:32:47and then into the main body of the shop.

0:32:47 > 0:32:48Oh, well, good news(!)

0:32:48 > 0:32:51One thing at least you won't have to do is sort out the electrics,

0:32:51 > 0:32:52cos they look fine(!)

0:32:54 > 0:32:57Anyway, a slightly larger area of the shop here,

0:32:57 > 0:32:59but very low ceiling

0:32:59 > 0:33:02and straightaway you're getting a feeling that this is

0:33:02 > 0:33:05a very interestingly shaped building.

0:33:05 > 0:33:07Over this way, lots of space.

0:33:07 > 0:33:11Obviously, this is the shop counter or was the shop counter.

0:33:11 > 0:33:13When it comes to commercial units, of course,

0:33:13 > 0:33:15one of the key things is the amount of floor space,

0:33:15 > 0:33:17and you've certainly got a lot,

0:33:17 > 0:33:21but it's going to take a bit of imagination to see what this

0:33:21 > 0:33:22could be like.

0:33:24 > 0:33:27To say nothing of taking quite a bit of cash

0:33:27 > 0:33:31to reorganise this space into a viable commercial concern.

0:33:31 > 0:33:32One thing for sure -

0:33:32 > 0:33:35you'd need to sell quite a few sausage rolls to break even.

0:33:38 > 0:33:40Now, what about the upstairs?

0:33:42 > 0:33:44Well, up here, on this side of the building,

0:33:44 > 0:33:46two flats to start out with.

0:33:46 > 0:33:49Now, your hopes are slightly raised when you come into this room.

0:33:49 > 0:33:53Love the door, quite like the sort of half-timbered look.

0:33:53 > 0:33:55It's an interesting room.

0:33:55 > 0:34:00It's an en-suite bedroom here and then a half-decent kitchen.

0:34:01 > 0:34:05Just lulling you into a false sense of security! The rest of it is...

0:34:05 > 0:34:06Well, you'll see. Urgh!

0:34:08 > 0:34:10For a start, it is really higgledy-piggledy

0:34:10 > 0:34:16and there are more changes of level than at a rock concert's sound check!

0:34:16 > 0:34:21Ha! But a sort of entrance here, which sort of snakes its way up

0:34:21 > 0:34:24into all these rooms. I mean, it's almost like somebody just thought,

0:34:24 > 0:34:26"I know, we'll have a flat here."

0:34:26 > 0:34:29"Oh, no, let's have another one over here."

0:34:29 > 0:34:32"I need a window there, and I want a corridor," and so it goes on.

0:34:32 > 0:34:35Into this bit. There is a bedroom there full of stuff.

0:34:35 > 0:34:39This kitchen here is, well, basically, what you see.

0:34:39 > 0:34:42I think you'd need to redesign it and have a window there

0:34:42 > 0:34:45if you were to do any more, but...er...

0:34:45 > 0:34:48I don't know. Through here is your lounge

0:34:48 > 0:34:52and it is obviously a project that somebody had started and,

0:34:52 > 0:34:55for whatever reason, they didn't complete.

0:34:55 > 0:34:59That's not necessarily a bad thing, but in this case,

0:34:59 > 0:35:04I don't think it's really helped and there is a lot of work to put this right.

0:35:04 > 0:35:06Hmm, now I come to think of it,

0:35:06 > 0:35:09EVERY job has been started and not finished,

0:35:09 > 0:35:12so I'm still not very clear what we're looking at.

0:35:12 > 0:35:15In all, there appears to be three flats -

0:35:15 > 0:35:18one two-bed on the ground floor,

0:35:18 > 0:35:21the first-floor flat has a studio arrangement

0:35:21 > 0:35:24with a kitchen and a shower room - very poky -

0:35:24 > 0:35:27and the second flat is a two-bedder,

0:35:27 > 0:35:30but because of the levels, you don't know where you are.

0:35:30 > 0:35:36So, no question, major big-time renovation required inside.

0:35:36 > 0:35:38But once you step out the back,

0:35:38 > 0:35:41maybe that really doesn't matter any more,

0:35:41 > 0:35:43because there's an access there.

0:35:43 > 0:35:45You can really get an idea

0:35:45 > 0:35:48of the kind of higgledy-piggledy, hotchpotch nature

0:35:48 > 0:35:50of the building out here,

0:35:50 > 0:35:53but what we've also got are these garages

0:35:53 > 0:35:56and lots and lots of

0:35:56 > 0:36:01garden/space/potential building plot.

0:36:01 > 0:36:04Again, looking this way, well, it's chaos.

0:36:04 > 0:36:05The more I think about it,

0:36:05 > 0:36:09I wonder if one option might be to knock the whole thing down

0:36:09 > 0:36:12and then apply for planning permission for building

0:36:12 > 0:36:16some kind of housing - like two, three classic, typical,

0:36:16 > 0:36:18in-keeping properties here.

0:36:18 > 0:36:24Cos certainly you've got space, and also the outlook from the back is sensational.

0:36:25 > 0:36:29A local estate agent confirmed my thinking.

0:36:29 > 0:36:32It turns out there is lapsed planning permission

0:36:32 > 0:36:33for houses on this site,

0:36:33 > 0:36:37so could it be that the best solution

0:36:37 > 0:36:39would be to reinstate those plans?

0:36:41 > 0:36:44If the purchaser decided to run with what the lapsed planning consent was for,

0:36:44 > 0:36:47which was, of course, to demolish the existing building and create

0:36:47 > 0:36:49two semidetached houses,

0:36:49 > 0:36:52which themselves could fetch somewhere in the region

0:36:52 > 0:36:55of probably £135,000-£155,000 each...

0:36:55 > 0:36:58Whilst there was obviously consent at the back

0:36:58 > 0:37:00for a detached three-bedroom bungalow

0:37:00 > 0:37:03which itself would probably fetch somewhere of the region, I guess,

0:37:03 > 0:37:05of £170,000-£180,000.

0:37:05 > 0:37:07Using the top valuation,

0:37:07 > 0:37:11the potential for the "demolish and build houses" option comes in

0:37:11 > 0:37:15at a total market value of 490,000,

0:37:15 > 0:37:18whereas refurbishing the building to make four flats,

0:37:18 > 0:37:23the agent feels would market for a total of 380,000.

0:37:23 > 0:37:26However, each option has costs to be factored in.

0:37:26 > 0:37:28For the flats, refurbishment costs.

0:37:28 > 0:37:31And for the houses, not just the building costs,

0:37:31 > 0:37:34but the demolition costs, too.

0:37:34 > 0:37:36Well, definitely one of those projects

0:37:36 > 0:37:38where you really have to do your research

0:37:38 > 0:37:40and maybe think outside the box.

0:37:40 > 0:37:42Do you reopen the commercial unit,

0:37:42 > 0:37:44do you restore the flats and rent them out

0:37:44 > 0:37:48or do you knock the whole place down and build something here?

0:37:48 > 0:37:50Lots of options for whoever bought it.

0:37:50 > 0:37:54Let's find out who that was when it went under the hammer.

0:37:54 > 0:37:55Lot 118.

0:37:56 > 0:37:59Part-commercial, part-residential,

0:37:59 > 0:38:02It's currently a vacant shop and three flats in the making.

0:38:02 > 0:38:05Guide, 100-125. How about middle? How about 110?

0:38:05 > 0:38:07110 is what I'm asking for.

0:38:07 > 0:38:09How about 100?

0:38:09 > 0:38:11Won't go less than 90.

0:38:11 > 0:38:1390, choice of hands. Better-looking one I'll have.

0:38:13 > 0:38:1490 I have. At 90.

0:38:14 > 0:38:15At 90. No, that wasn't you.

0:38:15 > 0:38:17After a sluggish start,

0:38:17 > 0:38:20the packed auction room springs to bidding life

0:38:20 > 0:38:23when we rejoin at 116,000.

0:38:23 > 0:38:25116 I've got.

0:38:25 > 0:38:28118. Belligerently he goes 118, and I didn't even ask.

0:38:28 > 0:38:30And you went to 120, madam. I like you very much.

0:38:30 > 0:38:32120 I've got. At 120.

0:38:32 > 0:38:37Don't think he does. 122, 122, 124.

0:38:37 > 0:38:39What do you want to do?

0:38:39 > 0:38:42125, 125,

0:38:42 > 0:38:45126, 126, 126.

0:38:45 > 0:38:48126 for the first time and then I'll have a look about,

0:38:48 > 0:38:51but 126 you're in. 126 first time,

0:38:51 > 0:38:54126 second time,

0:38:54 > 0:38:55126 third time.

0:38:55 > 0:38:58126. Madam, well done.

0:38:58 > 0:39:01126. G416. Thank you very much.

0:39:01 > 0:39:03The 126,000 bid came from Ruth,

0:39:03 > 0:39:08who was at the auction with her daughter, Tess.

0:39:08 > 0:39:13Ruth is one of the directors in a business looking for new premises.

0:39:13 > 0:39:15Mum and daughter came along to tell me more.

0:39:16 > 0:39:18Ruth and Tess, great to meet you both.

0:39:18 > 0:39:20- Nice to meet you too. - Congratulations.

0:39:20 > 0:39:24- Thank you.- So, um, well, you've got yourself quite a challenge here.

0:39:24 > 0:39:28- Yes, we certainly have, haven't we? - Tell me why you wanted to buy it.

0:39:28 > 0:39:33We're just going to flatten it, make it into a big car park...

0:39:33 > 0:39:37- What?!- Yes.- You're knocking it down to build a car park?

0:39:37 > 0:39:40Yep. And then at the back we're going to have a branch surgery

0:39:40 > 0:39:43- for our veterinary practice. - Oh, wow, you're a vet?

0:39:43 > 0:39:47- Yes, I'm a vet.- Both of you?- No, I'm applying to veterinary college.

0:39:47 > 0:39:51- A hopeful vet.- Oh, great, so you've followed on from Mum's lead?

0:39:51 > 0:39:53- Yep.- This will be a branch surgery.

0:39:53 > 0:39:56This will be an outreach that will serve the big hospital

0:39:56 > 0:39:59we've got down in St Columb Major.

0:39:59 > 0:40:02What's the most unusual thing somebody's brought you in to fix?

0:40:02 > 0:40:03I've had a raccoon.

0:40:03 > 0:40:05Ha-ha-ha-ha!

0:40:05 > 0:40:07And I've had a python called Monty.

0:40:07 > 0:40:08- No?- Yeah.

0:40:09 > 0:40:12As I don't like snakes, it was a bit of a...

0:40:12 > 0:40:15- You don't like snakes?- No.- And somebody brought you a snake?- Yeah.

0:40:15 > 0:40:17- Or chickens. - You don't like chickens?

0:40:17 > 0:40:19Only on the plate.

0:40:19 > 0:40:22- What's not to like about a chicken? - Oh, furs, feathers.

0:40:22 > 0:40:25Right, OK, so you've got a snake phobia and a chicken phobia.

0:40:25 > 0:40:28- Yeah, yeah.- Not brilliant for a vet, really, is it?

0:40:28 > 0:40:31- Not really.- Obviously, the snake one isn't going to happen very often.

0:40:31 > 0:40:34- No, hopefully.- What happened with Monty when they brought him in?

0:40:34 > 0:40:37- Oh, he had scale rot.- Oh, no. - Quite serious if you're a snake.

0:40:37 > 0:40:40- Well, probably, yeah.- Yeah, yeah, antibiotics under the skin.

0:40:40 > 0:40:43I said to my boss at the time, "I hope he doesn't bite me."

0:40:43 > 0:40:46He said, "Actually, it's if he starts wrapping himself around you

0:40:46 > 0:40:48"that you need to worry."

0:40:48 > 0:40:52MUSIC: Theme to Monty Python's Flying Circus

0:40:52 > 0:40:57So, Ruth and her fellow veterinary directors are planning,

0:40:57 > 0:41:01well, you guessed it, something completely different -

0:41:01 > 0:41:06somewhere where if you're suffering from scale rot, like Monty was,

0:41:06 > 0:41:09you'll be very glad to see it.

0:41:09 > 0:41:12But will the planners be equally pleased?

0:41:12 > 0:41:15That's the question, and if planning is granted,

0:41:15 > 0:41:20it's hoped there won't be any deceased parrots here in the future.

0:41:21 > 0:41:22RASPBERRY SOUND

0:41:22 > 0:41:25What was it that appealed about it, then?

0:41:25 > 0:41:28Frontage on the main high street

0:41:28 > 0:41:31and the lack of another vet's in the area as well obviously.

0:41:31 > 0:41:32- Right.- Yeah,

0:41:32 > 0:41:36but it's very difficult to find properties in the right area

0:41:36 > 0:41:41with potential for car park and on the main high street.

0:41:41 > 0:41:44So explain to me a bit more about what you're planning to do.

0:41:44 > 0:41:46- Knock it flat.- Knock it down.

0:41:46 > 0:41:48Tarmac the whole place out.

0:41:48 > 0:41:53And put some prefab buildings in at first so we can be up and running

0:41:53 > 0:41:55as quickly as possible.

0:41:55 > 0:41:57Now, I know what you're thinking - prefabs?!

0:41:57 > 0:42:00But not just any old prefabs, oh, no.

0:42:01 > 0:42:05Nowadays you can actually build these modern units

0:42:05 > 0:42:06that are very presentable,

0:42:06 > 0:42:10that have actually a veterinary surgery inside them -

0:42:10 > 0:42:13operating theatres, consulting rooms, waiting rooms,

0:42:13 > 0:42:14- the whole works.- X-ray rooms.

0:42:14 > 0:42:17They can last for about 25 years.

0:42:17 > 0:42:18- Plomp.- Yeah.- Yeah.- Yeah.

0:42:18 > 0:42:21What a great way of doing it!

0:42:21 > 0:42:24- Yeah.- The fact that it gives you an opportunity to try the business out.- Yes.

0:42:24 > 0:42:27- If it fails, you go, "Not to worry." - Yep, that's right.

0:42:27 > 0:42:29- Pick it up and move it on. - Move to another space.

0:42:29 > 0:42:33I suspect we'll need... We'll want to open more branch surgeries,

0:42:33 > 0:42:35and so when we're finished here,

0:42:35 > 0:42:38they can be picked up and taken to the next site.

0:42:38 > 0:42:41But what's the council view going to be on

0:42:41 > 0:42:44these peri-PET-etic prefabs?

0:42:44 > 0:42:47I know some councils want to know how long they'll be installed

0:42:47 > 0:42:49before granting permission.

0:42:49 > 0:42:53I suppose they don't want prefabs sprouting up all around the country.

0:42:53 > 0:42:56So what's the budget for what you've got planned?

0:42:56 > 0:43:01Right, so we're looking at about 30,000 to have it demolished

0:43:01 > 0:43:03and taken away,

0:43:03 > 0:43:07and then we've got to think about tarmacking the car park -

0:43:07 > 0:43:12that'll be about another 30,000. And then we're looking at about 100,000

0:43:12 > 0:43:13for the prefab units.

0:43:13 > 0:43:16- Right, OK.- So, let's say 160

0:43:16 > 0:43:20and then probably another ten for other expenses -

0:43:20 > 0:43:24putting on the mains, architects' expenses, that sort of thing,

0:43:24 > 0:43:25so 170.

0:43:25 > 0:43:27And that's to do the prefab units?

0:43:27 > 0:43:31- Yes.- And what about building whatever you might build?

0:43:31 > 0:43:34- Do you have any idea...?- No, no, we haven't thought about that yet.

0:43:34 > 0:43:35No. No.

0:43:35 > 0:43:38Because that will be three or four years down the line.

0:43:38 > 0:43:41- After you've seen whether or not it's worked.- Yes. Yes.

0:43:43 > 0:43:47Well, I've certainly seen places in a worse condition than this

0:43:47 > 0:43:52brought back to life, but Ruth and Tess's plan is to knock it down

0:43:52 > 0:43:56and turn it into a car park for their veterinary practice.

0:43:56 > 0:43:57In order for that to happen,

0:43:57 > 0:44:00they have to get the approval of the planners, though.

0:44:00 > 0:44:03How will they get on when they start getting their plans?

0:44:03 > 0:44:05You can find out later in the show.

0:44:10 > 0:44:14Being cautious can pay off when it comes to getting it right in property.

0:44:14 > 0:44:17Now, we saw how one of our buyers got on, but what about the other two?

0:44:17 > 0:44:19Let's go back and find out.

0:44:21 > 0:44:24- LUCY:- My turn now to take you back to Wandsworth

0:44:24 > 0:44:30where earlier I saw this one-bedroom first-floor flat, sold for 310,000.

0:44:30 > 0:44:34I thought the key to its success would be to add a second bedroom.

0:44:38 > 0:44:42Now, the easiest way to do that would be to move this kitchen

0:44:42 > 0:44:45into this lounge and then that old kitchen space in there, well,

0:44:45 > 0:44:47that could become bedroom number two.

0:44:47 > 0:44:50Alternatively, you could start again

0:44:50 > 0:44:52and completely rearrange this whole flat,

0:44:52 > 0:44:57although I think that would be more costly and more time-consuming.

0:44:57 > 0:45:01Either way, the potential to call this a two-bedroom flat

0:45:01 > 0:45:04is a big tick in the box and a sure-fire way of adding value

0:45:04 > 0:45:05to this property.

0:45:07 > 0:45:08Accountant Tony, on the right,

0:45:08 > 0:45:11bought this as his first renovation project.

0:45:11 > 0:45:14He brought along his builder Mark to take look over the flat

0:45:14 > 0:45:18and act as his spokesman because Tony had lost his voice!

0:45:20 > 0:45:23And what is it that you want to achieve with this?

0:45:23 > 0:45:25Well, I want it to be converted from a one-bedroom to a two.

0:45:25 > 0:45:28OK. What do you think would work best here?

0:45:28 > 0:45:31I think the lounge that we're in at the moment should be converted into

0:45:31 > 0:45:34- the main bedroom.- Really? - Absolutely.

0:45:34 > 0:45:37And then the kitchen will be bedroom two,

0:45:37 > 0:45:40and what is the bedroom at the moment will become the lounge

0:45:40 > 0:45:41and it will be a kitchen/diner.

0:45:41 > 0:45:43Not exactly what I had in my mind,

0:45:43 > 0:45:46but it would still have that extra bedroom space

0:45:46 > 0:45:49that's much sought after in London.

0:45:49 > 0:45:52The flat does have a 125-year lease, and the freeholders,

0:45:52 > 0:45:56the local council, were due to replace the windows.

0:45:58 > 0:46:00Can you foresee any problems at all?

0:46:00 > 0:46:02Just on the timeframe.

0:46:02 > 0:46:05I think dealing with a local authority might take a bit longer

0:46:05 > 0:46:09than you'd hope for, so if that can move along nicely,

0:46:09 > 0:46:11then no problem at all with the build.

0:46:11 > 0:46:13He had a predicted £35,000 budget

0:46:13 > 0:46:17and a timescale of two to three months.

0:46:17 > 0:46:20We're back eight months later to see the results.

0:46:24 > 0:46:27The new windows are a big improvement,

0:46:27 > 0:46:31but it looks like neither mine or Mark's plan has come to fruition,

0:46:31 > 0:46:34so there is now a large lounge/dining-kitchen.

0:46:38 > 0:46:42High-spec units, white walls and laminate flooring in this open space

0:46:42 > 0:46:44modernise the flat fabulously.

0:46:48 > 0:46:50The bathroom's followed suit, too,

0:46:50 > 0:46:54with fixtures and fittings that would be fitting in Scandinavia!

0:46:54 > 0:46:57MUSIC: A Better Day by Avicii

0:46:57 > 0:46:59# Magic call from a pretty thing

0:46:59 > 0:47:04# Maybe it might be time

0:47:04 > 0:47:07# For a better day

0:47:12 > 0:47:14# For a better day

0:47:19 > 0:47:21# For a better day... #

0:47:21 > 0:47:24The bedroom used to have access to the kitchen,

0:47:24 > 0:47:27and Mark was going to make this room a lounge/diner.

0:47:31 > 0:47:33But it's still the only bedroom,

0:47:33 > 0:47:36but with the access door to the kitchen walled up,

0:47:36 > 0:47:38you can make more use of the space.

0:47:40 > 0:47:43It's now a really spacious one-bedroom flat,

0:47:43 > 0:47:45but why the change of plan?

0:47:45 > 0:47:49Fortunately, Tony's got his voice back, so he can tell us.

0:47:51 > 0:47:54I decided to leave it as a one-bedroom place

0:47:54 > 0:47:56because when I put it onto paper,

0:47:56 > 0:48:01on the plan, it would mean a very small two-bedroom place.

0:48:01 > 0:48:04The second bedroom would be extremely small

0:48:04 > 0:48:07and I thought a large one-bedroom would sell far more

0:48:07 > 0:48:08than a smaller two-bedroom.

0:48:09 > 0:48:14Interesting. Usually developers feel the maximum return can be had

0:48:14 > 0:48:17by carving more rooms into the available space,

0:48:17 > 0:48:20but I do take the point that the living space is much more generous

0:48:20 > 0:48:22with this template.

0:48:22 > 0:48:24The planning process, as expected,

0:48:24 > 0:48:29did introduce delays, and costs from work on the windows will be paid off

0:48:29 > 0:48:31to the freeholder in the first year.

0:48:32 > 0:48:35The windows will be included in the surcharge,

0:48:35 > 0:48:40and the surcharge for this particular year will be about £5,000.

0:48:40 > 0:48:43Tony's original budget was 35,000.

0:48:43 > 0:48:47Have there been savings from not doing the second bedroom?

0:48:47 > 0:48:48Well, actually, it's come in...

0:48:48 > 0:48:51Including the windows, it's about £25,000.

0:48:52 > 0:48:54Mark and Tony have done well there.

0:48:54 > 0:48:58But then again, the spend all has to be weighed up against the profit

0:48:58 > 0:49:01and that's why we've asked two local estate agents along

0:49:01 > 0:49:04to try and find out if Tony has made the right choice.

0:49:04 > 0:49:08Is a spacious one-bed flat better than a small two-bed

0:49:08 > 0:49:09in this instance?

0:49:09 > 0:49:12I think there's always a temptation with people trying to cut things up

0:49:12 > 0:49:17into smaller units, so you get two beds instead of one.

0:49:17 > 0:49:19Sometimes that's a big mistake

0:49:19 > 0:49:22because all that happens is you get a very cramped flat,

0:49:22 > 0:49:25whereas this sort of flat, it's spacious,

0:49:25 > 0:49:26it's well laid out,

0:49:26 > 0:49:29there'll be a bigger audience for this sort of accommodation,

0:49:29 > 0:49:33so it's not just a bolthole for a lot of people,

0:49:33 > 0:49:37So it's important that they have a good living space.

0:49:37 > 0:49:40The best refurbished properties that I see have white ceilings,

0:49:40 > 0:49:43white walls, white finish. It's clean, it's neutral.

0:49:44 > 0:49:47You know, people can just imagine their own furniture in there.

0:49:47 > 0:49:50So I would have converted it the way this developer's done it.

0:49:50 > 0:49:53This is an intriguing renovation.

0:49:53 > 0:49:57It's quality over quantity, and this agent's view was that a top-spec

0:49:57 > 0:50:02one-bed could potentially make more money than a cramped two-bed.

0:50:02 > 0:50:04Well, I'm going to chew on that one, for sure.

0:50:05 > 0:50:09But in London, it's not just space that makes a profitable property,

0:50:09 > 0:50:10it's location.

0:50:10 > 0:50:12So what about this location

0:50:12 > 0:50:16and the great London "north or south of the river" divide?

0:50:17 > 0:50:20A lot of people are moving from north of the river

0:50:20 > 0:50:23to come to this area because they get more space for their money

0:50:23 > 0:50:24and more open space.

0:50:26 > 0:50:29Tony's intention has always been to sell on.

0:50:29 > 0:50:32His total spend so far is 335,000.

0:50:32 > 0:50:36Does it look like there's still potential profit here?

0:50:36 > 0:50:41My estimate of market value would be £390,000,

0:50:41 > 0:50:43but I would guide it at £400,000.

0:50:43 > 0:50:45In terms of the value of this flat,

0:50:45 > 0:50:50I could see it sitting comfortably on the market at £380,000.

0:50:50 > 0:50:52That might not be what the owner wants,

0:50:52 > 0:50:54but you've got to look at what else is for sale

0:50:54 > 0:50:56and what else is sold in the area.

0:50:56 > 0:50:58At the moment for a local authority property,

0:50:58 > 0:50:59that's about the ceiling.

0:50:59 > 0:51:02Yes, I would have thought 400,000

0:51:02 > 0:51:05would have been more of a realistic price to put it on the market for.

0:51:05 > 0:51:09And I'd be... I'd be quite pleased if I achieved the 390.

0:51:09 > 0:51:11The 380, to me, would be rather low.

0:51:11 > 0:51:14If he got that 390,000,

0:51:14 > 0:51:17then that would mean a pre-tax profit of 55 grand,

0:51:17 > 0:51:19and in case you were wondering,

0:51:19 > 0:51:23one of the agents thought making it into a two-bed would have

0:51:23 > 0:51:25reduced the value,

0:51:25 > 0:51:28so maybe it's time to rethink London spaces.

0:51:28 > 0:51:31Are they pleased with how things have gone?

0:51:33 > 0:51:34Yeah, I mean, I'm really pleased.

0:51:34 > 0:51:39I really don't think we could have achieved any more than what we've achieved.

0:51:39 > 0:51:42Yeah, I'm pleased with the way it's turned out,

0:51:42 > 0:51:45and obviously for our customer that's the most important thing.

0:51:45 > 0:51:47So, hopefully, he's happy.

0:51:47 > 0:51:49Well, I think I'd be ecstatic!

0:51:54 > 0:51:57- MARTIN:- Back now to Delabole in Cornwall, where earlier

0:51:57 > 0:52:01I looked around this derelict shop with three flats above,

0:52:01 > 0:52:05bought at auction by a veterinary practice for 126,000.

0:52:05 > 0:52:10I met with Ruth, one of the practice directors and her daughter, Tess,

0:52:10 > 0:52:11an aspiring vet,

0:52:11 > 0:52:15to find out why the practice had chosen this particular location.

0:52:15 > 0:52:18It's very difficult to find properties in the right area

0:52:18 > 0:52:22with potential for car park and on the main high street.

0:52:22 > 0:52:25So explain to me a bit more about what you're planning to do.

0:52:25 > 0:52:27- Knock it flat.- Knock it down.

0:52:27 > 0:52:34Tarmac the whole place out and put some prefab buildings in first,

0:52:34 > 0:52:37so we can be up and running as quickly as possible.

0:52:37 > 0:52:42We're looking at about 30,000 to have it demolished and taken away

0:52:42 > 0:52:46and then we've got to think about tarmacking the car park.

0:52:46 > 0:52:48That will be about another 30,000.

0:52:48 > 0:52:52And then we're looking at about 100,000 for the prefab units.

0:52:52 > 0:52:55- Right, OK.- So, let's say 160,

0:52:55 > 0:52:59and then probably another ten for other expenses -

0:52:59 > 0:53:03putting on the mains, architects' expenses, that sort of thing.

0:53:03 > 0:53:04So 170.

0:53:04 > 0:53:08The business hoped to have the new prefab practice up and running

0:53:08 > 0:53:09in six to 12 months.

0:53:09 > 0:53:12Well, we're back two years and two weeks later.

0:53:27 > 0:53:30Well, what I thought would be a new, shiny car park

0:53:30 > 0:53:32with a bustling surgery full of pets,

0:53:32 > 0:53:37owners and their charges is little different to what I saw so long ago.

0:53:41 > 0:53:45The property has, in fact, deteriorated even further

0:53:45 > 0:53:49and there are only parts of it that are safe to enter.

0:53:52 > 0:53:56Kim was recently appointed development manager by the practice

0:53:56 > 0:53:59and Delabole now falls within her remit.

0:53:59 > 0:54:02Fortunately, the neighbours across the road loaned us a room

0:54:02 > 0:54:04more convivial for our interview.

0:54:06 > 0:54:08When we bought Delabole,

0:54:08 > 0:54:10we'd thought that we would go ahead

0:54:10 > 0:54:14and turn it into a branch practice here,

0:54:14 > 0:54:19possibly base some of our large animal work from this area.

0:54:19 > 0:54:21About two months later,

0:54:21 > 0:54:25a site we'd been after in St Austell came up

0:54:25 > 0:54:29and it's just such a good opportunity for us, we had to go for it.

0:54:29 > 0:54:34We had to put a lot of time and resources into developing St Austell.

0:54:34 > 0:54:39It opened last January and we're already up to trying to make it a two-man practice,

0:54:39 > 0:54:41looking at making it a three-man practice next year.

0:54:41 > 0:54:44Obviously, this has taken time and effort

0:54:44 > 0:54:48and it meant that Delabole had to go on hold and we thought,

0:54:48 > 0:54:51"This is silly. We're probably upsetting the neighbours."

0:54:51 > 0:54:54I came up and looked at the building a few months ago.

0:54:54 > 0:54:59It was deteriorating badly. So we suggested it went back to auction.

0:54:59 > 0:55:01So, after sitting on the building for over two years

0:55:01 > 0:55:06and choosing to develop the other site in St Austell, which has a bigger population,

0:55:06 > 0:55:09the practice decided to put the Delabole the property

0:55:09 > 0:55:10back up for auction.

0:55:10 > 0:55:13Have they been able to recoup their initial outlay

0:55:13 > 0:55:18or has the market been performing well enough even to make a profit?

0:55:20 > 0:55:23We invited two property experts along

0:55:23 > 0:55:26to outline the prospects of this lot.

0:55:26 > 0:55:30Don't worry, they know the no-go areas inside the building!

0:55:30 > 0:55:34First up, the auctioneer who sold it the day before we filmed.

0:55:36 > 0:55:39My initial thoughts are, "How is this still stood up?"

0:55:41 > 0:55:44It just needs to go and be redeveloped.

0:55:44 > 0:55:45I work in the local area

0:55:45 > 0:55:48and this has been a bit of an eyesore for a number of years,

0:55:48 > 0:55:50so I'm sure the neighbours in the area would be happy for it

0:55:50 > 0:55:52to be developed and tidied up to look smart.

0:55:52 > 0:55:55Usually, when we revisit a property,

0:55:55 > 0:55:59we ask the agents what they think about the standard of finish.

0:55:59 > 0:56:01Perhaps the more pertinent question this time is,

0:56:01 > 0:56:05"Will the general area ever be able to support a development here?"

0:56:07 > 0:56:10Things have improved a great deal in the last couple of years

0:56:10 > 0:56:13and I think there would be a demand for properties to be developed on this site,

0:56:13 > 0:56:15and I think they would sell pretty well.

0:56:15 > 0:56:20So you've got Padstow cachet here on the north Cornwall coastline

0:56:20 > 0:56:25and it's so easily accessible to get back to the mainland as well,

0:56:25 > 0:56:27as it were - the rest of the country.

0:56:27 > 0:56:31So it's just beginning to just bubble away nicely.

0:56:32 > 0:56:36When we first visited, there were lapsed plans for developing the site

0:56:36 > 0:56:38with two semidetached houses and a bungalow.

0:56:38 > 0:56:42The agents consider that if those plans went ahead today,

0:56:42 > 0:56:47the site would now be worth £85,000 more than it was two years ago.

0:56:47 > 0:56:49The practice did consider pursuing planning

0:56:49 > 0:56:51and building houses on the land,

0:56:51 > 0:56:56but decided against it as it was outside of their specialisation.

0:56:56 > 0:56:59What value would they have added?

0:56:59 > 0:57:01If you got planning permission on this site in its current state,

0:57:01 > 0:57:05it wouldn't necessarily add a vast amount of value to its selling price

0:57:05 > 0:57:07but it would make it a more attractive proposition.

0:57:07 > 0:57:11If the people who sold it at auction had got the planning and made it

0:57:11 > 0:57:14what's known as "oven-ready" for a builder to come in

0:57:14 > 0:57:17and just to break ground and off he goes,

0:57:17 > 0:57:23it would probably have been worth another £10,000 or £15,000.

0:57:23 > 0:57:25OK, the time of reckoning has arrived.

0:57:25 > 0:57:30Two years ago this property sold at auction for 126,000.

0:57:30 > 0:57:34Now, in its more dilapidated state, what did it sell for?

0:57:34 > 0:57:39At yesterday's auction, the property sold for £130,500.

0:57:39 > 0:57:43That's a small profit of 4,500, minus expenses.

0:57:43 > 0:57:46We're very, very pleased with that figure.

0:57:46 > 0:57:51Having paid 126,000 for it two years ago, the property has stood there,

0:57:51 > 0:57:54not done very much at all.

0:57:54 > 0:57:58So, yes, everyone, including all the partners, are absolutely delighted.

0:57:58 > 0:58:03A great result, but, for me, it will always be an "indelabole" memory!

0:58:07 > 0:58:11Property renovation stories never fail to keep us hooked.

0:58:11 > 0:58:13Yes, and we've got plenty more where these came from.

0:58:13 > 0:58:17Yes, so make sure you join us next time on Homes Under The Hammer.