Episode 79 Homes Under the Hammer


Episode 79

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Transcript


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Hello and welcome to the show. There is no one size fits all

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when it comes to property developing.

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There are so many ways you can go.

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Hopefully, if everything does go well, you could even turn a profit.

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There's one place you can head to

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to potentially get yourself a bargain,

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and that's your local property auction.

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Making the right choices are crucial

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if you want to survive in the property game.

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Did the buyers on today's show choose wisely?

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You know what? There's only one way to find out.

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There's half-measures at this 2½-bedroom bungalow in Nottinghamshire.

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We are in through... I want to say, "through the door",

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but it's only half a door.

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This former council flat in Wandsworth, south London,

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could easily expand on its one-bedroom status.

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That could become bedroom number two.

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This large detached shop in Delabole, Cornwall,

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seems reasonable at first glance, but...

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It's a lulling you into a false sense of security.

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The rest of it is... Well, you'll see! Urgh!

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All of these properties have been sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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Madam, well done.

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DION: The village of Huthwaite in Nottinghamshire

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is also close to Derbyshire,

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both areas, of course, synonymous with coal mining.

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But there's some pretty countryside nearby

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and the market town of Mansfield is only five miles away.

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And so to the property I'm here to see.

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I've got to say, I'm quite intrigued by this one.

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In the auction catalogue it says it is a semidetached bungalow

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with two/three bedrooms.

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Is it a two-bed or is it a three-bed?

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I'm quite confused.

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What I do know - it has a guide price of £37,000-lus.

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I'm going to get inside and start counting bedrooms.

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It's also what I do when I can't sleep.

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I know it's sheep for most people, but it's an occupational hazard.

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Mind you, if I lived here I'd be counting pieces gravel at the front.

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Enough for any insomniac!

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We're in through... I want to say "through the door",

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but it's only half a door.

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As soon as you come in, it's in a bit of a state.

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I'm not sure what that cupboard is,

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but you've got that big window there.

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This seems a waste of space. I'd want to use this.

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Maybe make it into a reception room. I'd want to make it a bedroom.

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Make use of the big window.

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Get rid of that, whatever it is.

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What else do we have down the hallway?

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We have the kitchen just there to the left, which again is a big kitchen.

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A bit of a mess. A lounge here.

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A really big lounge in there with fireplace. Central heating as well.

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This must be bedroom one.

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Good-sized bedroom. Fitted wardrobes.

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Very old-fashioned, but a decent size all the same.

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Bathroom is just there.

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Start again with that.

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And here is where the end of the house would have been,

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and I am guessing this must be bedroom number two.

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Bit of an afterthought, because you've got the window

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to the bathroom just there looking into bedroom number two - not ideal.

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If you wanted to keep it as a bedroom,

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move that window to the gable end and I think you'd be sorted.

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So, bedroom one, bedroom two... Where's bedroom three?

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I'm going to have a look.

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So what I thought was a cupboard is actually the access up to the loft,

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which must be the third bedroom,

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but it definitely doesn't comply with building regulations.

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If you wanted to keep it as a bedroom and get it compliant,

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there's so many things you'd have to do - insulation,

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put some windows in and get some better access.

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MUSIC: Theme to Steptoe And Son

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I have to say, though, the overall interior of this bungalow

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reminds me of a sitcom set.

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Can't think which one, though(!)

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I do like the cool 1960s tiles in the kitchen.

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They're the only things I would keep.

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And surprisingly, although it's been empty for some time,

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there's no sign of damp.

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Now, what was that sitcom called?

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That's it. The Addams Family!

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As well as the gravel pit at the front of the house

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you've got space out the back as well.

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And I think it is quite a large area.

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Yes, it's in a bit of a mess, but you could quite easily turn this round.

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Get rid of all these slabs, level it out, stick some grass down -

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you'd have a nice back garden.

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That there as well is your garage.

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It is a bit dilapidated but I'd be inclined to keep that,

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stick your bikes in there - bit of storage. That would help.

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But the main reason I wanted to come out here is to just see

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the size of the plot, and it's a decent size.

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The old brain cells are working overtime to work out

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if this semi could be extended

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to create something much bigger.

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Let's ask a local estate agent, who should be able to advise us

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on the right approach.

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My advice would be to make this

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into a three-bedroom semidetached bungalow,

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with two bedrooms to the ground floor and a further bedroom

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to the first floor.

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I would keep the extension on the ground floor.

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It's disappointing it's not a little larger,

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so the new owner could look at probably extending that a bit more

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and making sure the bedroom on the first floor is compliant

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for building regulation purposes.

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What's the ballpark figure for doing all that work?

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I could see expenditure in the region of £25,000 on this property

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to make it into a comfortable three-bedroomed semidetached bungalow.

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So say you got it for the guide price of 37 and spent 25 on it,

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what would your £67,000 investment be worth?

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As a three-bedroomed semidetached bungalow, the price would be £105,000.

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A potential gain of £38,000, then. What about for rental?

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A three-bedroomed semidetached, I would expect £495 per calendar month.

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So it seems that third bedroom was the converted loft

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and it definitely doesn't comply with building regs.

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So currently, this is a two-bed property.

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Whoever takes this on has got their work cut out.

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Let's go to the auction house and see who wanted it.

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Lot number six.

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A two-bedroomed semidetached bungalow that needs a scheme of

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modernisation and improvement.

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I have a proxy bid in on this and I will start the bidding at £40,000.

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At £40,000 and it's in the market.

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41. 41,000. 42, two of you. 43 in the centre.

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44 is bid.

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The fast-paced bids came from several interested parties.

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We rejoin the bidding at £57,000.

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57. 58. At 58,000.

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59 elsewhere?

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At £58,000, finished and done.

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59. At 59....500.

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60,000.

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60 against you now. 60 and a half. 61.

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At 61,500.

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500.

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62.

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All done at 62,000.

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Once. Twice.

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Third chance.

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Sold at 62,000.

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Thank you.

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The successful bid came from Andy.

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He started property developing in 2008

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and he's been doing it ever since.

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So, he's no stranger to back-to-brick renovation,

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which is what's needed here.

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62 grand's worth of gut it and start again.

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Andy, nice to meet you, sir, and congratulations.

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-Thank you, Dion.

-Tell me, what made you buy this property?

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I work with a number of investors.

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We buy properties for a number of reasons.

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One, obviously, is to make money.

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The other one is, being local to the area,

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we like to bring empty homes back into use

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because having a house like this sitting around for years

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doesn't make sense, really.

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-Who'll do the work for you?

-We've got a team of contractors.

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-They do all of our work every time.

-Do you let them get on with it?

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No, no, no. They get on with it, but I project-manage on a daily basis.

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-That's good.

-You don't want to be there after they've done something -

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"You didn't tell us that."

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Andy, are there going to be any layout changes?

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Because as you come in the door,

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there's a room on the left you could make a bedroom.

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That will definitely be a third bedroom.

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-Yeah.

-Regardless of what we do upstairs.

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If we do the loft conversion, then technically that could become

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a four-bedroom.

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The first thing we could do would be to get a structural surveyor in

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or structural engineer to have a look at it.

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But as far as building control is concerned,

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we need to strengthen the beam, we need to create a fire escape

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and, you know, all the usual stuff,

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all of which no problem to us at all.

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They cost a bit of money, but it's not a problem.

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-A little bit more money.

-That's right.

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So the budget to turn all this around is how much?

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I reckon we'll do it for just under 30.

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-And you must have done your research on what they are selling for around here?

-For sure.

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What would you expect to get back?

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For a quick sale, we expect about 110, for a quick sale.

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The only bit that we try to avoid is applying to the council

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for things like extension and all that because it delays the timing.

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-Of course.

-As you know in property business, time can be money -

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not always, but it can be.

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Time can be money.

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And that also means if a property doesn't sell quickly,

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then it will be rented,

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and he's hoping that his team will have the work done in two months.

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And outside the front, and out the back,

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what are your plans in particular?

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At the front we're going to create off-street parking,

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So I'm already talking to the council to allow us to lower the kerb.

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We'll put some turf down there, some lawn.

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The back, we'll do the same thing.

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We'll fence it all, put some lawn there.

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Just make it a nice home for somebody,

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whether they're buying it or renting it.

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Andy did pay for a mining search claim,

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which reveals any history of subsidence.

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It's compulsory if you want a mortgage in these parts.

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Further research revealed other planning problems.

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Andy may have to demolish the rear extension, losing a bedroom.

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There's no records existing of planning permission being granted,

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or if it was built within building regulations.

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If the extension at the back is not compliant,

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then we will knock it down and do a full loft conversion upstairs.

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-OK.

-It will change the budget and also change the pricing as well.

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Of course. It will increase the price on the property, won't it?

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-Yes. For sure.

-So, Andy, do you know anything about the history of this house?

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I sure do. Yes, I've done some research.

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-More research?

-Yes, absolutely!

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There were two brothers.

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They built this bungalow and the one next-door.

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They were chocolate manufacturers in this area.

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The other bungalow was inherited by the other brother's son.

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This one was inherited by the elder brother's two daughters

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who left it, really, unoccupied since 1985.

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Did he say chocolate?

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And, yes, sweet manufacturing still continues to this day.

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MUSIC: Sweet Dreams by Eurythmics

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Although the original factory premises were knocked down

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to make way for bungalows,

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manufacture was relocated to army Nissen huts

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at the back of the plot around 1960.

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I think this could be a selling point,

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having confectionery this convenient!

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# Sweet dreams are made of this... #

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Let's go back a little bit and tell us how you got into property

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in the first place. What were you doing beforehand?

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OK, I was in financial services.

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-I came across a CD of a wealth-creation expert...

-OK.

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..who talked so much about properties.

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And something just resonated with me immediately,

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and then I did more research

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and then I discovered that the vast majority of what you would call wealthy people

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either made their money in properties, real estate,

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or they held their wealth in real estate.

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That day everything changed for me.

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Within two weeks, I started the process.

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-I think you're going to do brilliant. Good luck, sir.

-Yep, look forward to it.

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What a charming man Andy is, and super-confident as well.

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I'm pretty sure in two months' time when we come back,

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this will be a lovely family home.

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The only question is, how many bedrooms will it have?

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You can find out later on in the programme.

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-LUCY:

-Wandsworth is a district of south-west London.

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It takes its name from the River Wandle

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which joins the Thames at Wandsworth.

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Close proximity and transport links to the city centre,

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make it a desirable location.

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Its variety of housing stock also makes for a popular area,

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so there are no bargain-basement prices here.

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Wandsworth might be an expensive part of London

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within which to buy a property, but on the plus side,

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buy in this borough

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and you'll benefit from the cheapest council tax in the country.

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Every little helps, after all,

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especially since the average property price

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in this south London spot is over £630,000.

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The kerb appeal of a property is so important to a lot of people,

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and you can see that there are some gorgeous, lovely period houses along here.

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However, the guide price of the property I'm here to see

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was £250,000.

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Now, you'd be very lucky to get a characterful Victorian conversion

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for that price in this sought-after part of London.

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Instead, what you do get is a one-bedroom flat

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in this purpose-built block here.

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No, it's not as pretty from the outside, but let's not judge it too harshly

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until we've seen what it's like inside.

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Thankfully, this small 1950s block only has two levels,

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with four flats accessed by a communal door,

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so it shouldn't be too noisy.

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Well, you're certainly not going to find any beams or inglenook fireplaces in here,

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but what you do get over character, is functionality and space.

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I mean, this really is spacious. A lovely big bathroom there,

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a huge lounge there, and at the back here,

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this is a great-sized bedroom.

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But you have got the flat doors, flat walls, flat ceilings.

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There's no nooks and crannies, nothing to get too excited about.

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A wonderful space in there, A huge kitchen.

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And what I do really like about this place is

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all of the rooms lead off one of the other rooms.

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It's got tremendous flow - really lovely.

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Now, having had a really good look around this flat,

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I think you might just be able to fit a second bedroom in here.

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Now, the easiest way to do that will be to move this kitchen,

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into this lounge, and then that old kitchen space in there,

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that can become bedroom number two.

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Alternatively, you could start again and completely rearrange

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this whole flat,

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although I think that would be more costly and time-consuming.

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Either way, the potential to call this a two-bedroom flat

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is a big tick in the box, and a sure-fire way of adding value

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to this property.

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For London, these rooms are spacious,

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and a combined lounge-kitchen area

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would be in keeping with the modern style of living.

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One big negative with this property - the windows!

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Look at this. They're single-glazed, they're metal,

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they're awful, they don't even look nice.

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They need changing!

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The windows are part of the fabric of the building

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and are the freeholder's responsibility.

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You might not get permission to change them

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and the same goes for the layout rejig.

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So what does a local estate agent think?

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It's very unusual to find a property on the market in this area

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for in the region of £250,000.

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It's very sought after,

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it's very difficult to find much under 300,000.

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As a purpose-built block, this is really sought after.

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It's only two storeys, there are four flats in this part,

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the communal garden is well maintained.

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So, very popular.

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What about the feasibility of my second bedroom plans?

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Just to create that second bedroom, to make it into two,

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it's, say, £5,000 and you're going to achieve £30,000 more

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and so it's really worth doing.

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MUSIC: It Takes Two by Marvin Gaye and Kim Weston

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# It takes two, baby

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# Me and you

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# Just take two... #

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And how would it affect the valuation figures?

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So as a one-bedroom renovated flat,

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this flat could sell in the region of £350,000.

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For rental purposes, as a one-bedroom flat, we would look

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at achieving in the region of £1,200 per calendar month.

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And if converted with the freeholder's permission

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to a two-bed?

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As a two-bedroom flat,

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we would expect to achieve for sales purposes somewhere in the region

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of £400,000,

0:17:320:17:35

and for rental, approximately £1,500 per calendar month.

0:17:350:17:40

No, it might not be oozing character,

0:17:400:17:43

but these purpose-built flats give you plenty of space,

0:17:430:17:46

and in this instance, you can even create that second bedroom here.

0:17:460:17:50

Ching-ching!

0:17:500:17:51

Who saw the potential with this flat?

0:17:510:17:53

Let's head to the auction and find out.

0:17:530:17:56

Lot 34 is... Seen this one.

0:17:560:17:59

Wandsworth SW18. One-bed purpose-built flat.

0:17:590:18:03

Nice. Good to get purpose-built flats.

0:18:030:18:05

Needs a bit of updating. Great location.

0:18:050:18:08

Blimey. Houses on the road are going for a million upwards.

0:18:080:18:11

I don't know, start 250?

0:18:110:18:14

250 sitting down.

0:18:140:18:15

250. 255 with the catalogue.

0:18:150:18:18

260 sitting down. 265, 270.

0:18:180:18:23

Bids climb steadily from the guide price of 250,000.

0:18:230:18:27

We rejoin the bidding at £303,000.

0:18:270:18:32

303.

0:18:320:18:34

303 right at the back, another spot.

0:18:360:18:38

304, 305, 306, 307,

0:18:380:18:43

308, 309,

0:18:430:18:46

310, 311.

0:18:460:18:49

311. One more just over the ten. 311.

0:18:490:18:52

310 down here.

0:18:520:18:54

First time. Second time.

0:18:540:18:58

Third and last time, if you're all done.

0:18:580:19:00

Sold, 310.

0:19:000:19:01

Good buy. I like that one.

0:19:010:19:03

The successful bidder in the packed auction room escaped

0:19:030:19:06

the scrutiny of our cameras,

0:19:060:19:08

but accountant Tony did catch up with me later on

0:19:080:19:12

in his £310,000 purchase, along with his builder Mark.

0:19:120:19:17

Guys, congratulations.

0:19:170:19:19

-So who has actually bought this flat?

-HOARSELY: Me.

0:19:190:19:22

So, Tony, you've bought the flat. Mark, what's your involvement going to be?

0:19:220:19:26

I'll be Tony's builder, looking after the build right through to completion.

0:19:260:19:29

And today you're going to be helping Tony explain

0:19:290:19:31

-because he's lost his voice, haven't you?

-I have.

0:19:310:19:34

-How did you lose your voice?

-Flu.

-I'm glad you could make it today.

0:19:340:19:37

-So you wanted to buy this property.

-I did.

-What is it you liked about this area?

0:19:370:19:41

-I think it's the location, and the rooms are so big.

-Yeah.

0:19:410:19:45

What is it that you want to achieve with this?

0:19:450:19:47

-Well, I want to convert from a one-bedroom into a two.

-OK.

0:19:470:19:51

And then probably will sell it on...

0:19:510:19:54

-OK.

-..in a few months' time.

0:19:540:19:56

OK. So the aim here is to convert a one-bedroom...

0:19:560:19:59

-Absolutely.

-..into a two?

0:19:590:20:00

-Yes.

-That's what you want to try and achieve?

-Yes.

0:20:000:20:02

What do you think would work best here?

0:20:020:20:05

I think the lounge that we're in at the moment should be converted into

0:20:050:20:08

-the main bedroom.

-Really?

-Yeah. Absolutely.

-OK.

0:20:080:20:10

And then the kitchen will be bedroom two and then what is the lounge...

0:20:100:20:14

What is the bedroom at the moment will become the lounge.

0:20:140:20:17

And it'll be a kitchen/diner.

0:20:170:20:18

Hmm. It's interesting that Mark feels the bedroom is the best option

0:20:180:20:22

for conversion to a lounge/kitchen/diner,

0:20:220:20:25

but will he be making use of the built-in cupboard space?

0:20:250:20:28

Tony said he intends to sell on in a few months,

0:20:290:20:32

so having paid 310 grand, a not insignificant sum,

0:20:320:20:37

he's got some leeway to refurbish and make a profit

0:20:370:20:40

if the agents' valuation of 400,000 for a two-bed flat is on the money.

0:20:400:20:45

So your job here is to completely and utterly and solely

0:20:460:20:50

-just add value to this building?

-Absolutely.

0:20:500:20:52

So what other ideas do you have?

0:20:520:20:55

I think we've got to make it contemporary.

0:20:550:20:57

-Yes.

-Although it's a '50s-type block,

0:20:570:21:00

when you walk in the front door it doesn't have to be that,

0:21:000:21:03

and I think with the light we've got here, I think that will work really, really well.

0:21:030:21:07

In what way are you going to make this contemporary?

0:21:070:21:09

What little features are you going to put in the flat?

0:21:090:21:11

I think because you're going to have a kitchen/diner, it's got to work on its own.

0:21:110:21:15

As you come into there, that's what you're going to see first,

0:21:150:21:18

so that's got to be bright and airy, nice and simple.

0:21:180:21:21

And I think the bedrooms are quite a large size for a flat of this size,

0:21:210:21:25

so I think it won't need too much in the way of alteration,

0:21:250:21:29

and keep it nice and as big as we can make it feel.

0:21:290:21:32

-I think that's the way forward.

-So, Tony,

0:21:320:21:34

how much property experience do you have?

0:21:340:21:36

-None.

-None?

-No.

-This is your first project?

-My first project.

0:21:360:21:40

-Now, Tony, I know you're an accountant.

-I am.

-You're very busy.

0:21:400:21:43

Surely that's going to help you keep an eye on the budget.

0:21:430:21:45

-Surely you're going to...

-Should help with the costings.

0:21:450:21:47

-You're going to be right on target with it all, aren't you?

-We'll have to wait and see.

0:21:470:21:51

So, obviously you're planning on moving a lot around.

0:21:510:21:54

-Yes.

-Obviously you're not going to be taking out a lot of walls

0:21:540:21:56

-or any huge structural change.

-No, no.

0:21:560:21:58

But will you need permission from the freeholder to do the work here?

0:21:580:22:01

Yes, we will, yeah. Yeah, we need permission to convert from one to two bedrooms,

0:22:010:22:05

but we don't need planning permission.

0:22:050:22:07

So, what do you think about the communal areas?

0:22:070:22:09

The great thing about this building is you've got lots of space.

0:22:090:22:12

It's quite open as you walk in. But when it comes to, you know,

0:22:120:22:16

putting some paint on the walls and making the area liveable,

0:22:160:22:20

you've got to rely on the freeholder and the funds available.

0:22:200:22:23

I mean, how much do you know about that?

0:22:230:22:26

Well, I know they are going to replace all the windows.

0:22:260:22:30

It's the local council that are freeholders in this case

0:22:310:22:34

and it's definitely a bonus to discover that they will be replacing

0:22:340:22:38

all the windows.

0:22:380:22:40

-That's going to add value to this property.

-Absolutely.

0:22:400:22:43

-Before the hammer went down, did you know that?

-I did.

0:22:430:22:45

-Did you read the legal pack?

-I did indeed.

-So how involved did you get with all of that?

0:22:450:22:49

-None at all.

-So you didn't have any pre-auction involvement whatsoever?

0:22:490:22:52

-First time I saw it was today.

-Really?

-Yeah.

0:22:520:22:54

-And what are your thoughts now you've seen it?

-I think it was a good buy.

0:22:540:22:58

And you think you can add the amount of value that it needs?

0:22:580:23:00

Yes, I think so, yeah. I think so, no problem.

0:23:000:23:02

So will it be you on your own coming in or have you got a team of guys...?

0:23:020:23:05

I've got a team of guys, yeah,

0:23:050:23:07

who work with us permanently and they'll be here full-time.

0:23:070:23:10

So are you local to the area?

0:23:100:23:11

I live in Bromley, so not too far, yes.

0:23:110:23:14

Not too bad. Not too bad a journey.

0:23:140:23:16

Can you foresee any problems at all?

0:23:160:23:18

Only with the freeholder, I think.

0:23:180:23:20

And just on the timeframe,

0:23:200:23:23

I think dealing with a local authority

0:23:230:23:25

might take a bit longer than you'd hope for,

0:23:250:23:28

so if that can move along nicely,

0:23:280:23:30

then no problem at all with the build.

0:23:300:23:32

Well, Tony, congratulations. I hope you get your voice back

0:23:320:23:35

-and you feel better soon.

-So do I, so do I.

0:23:350:23:38

-Mark, until then you're just going to have to fill in the gaps.

-I'll have to learn to lip-read!

0:23:380:23:42

It's been absolutely fantastic meeting you both and I can't wait to see the end result here.

0:23:420:23:46

-Thank you.

-Thank you.

-Congratulations.

-OK.

-Thank you.

0:23:460:23:50

So buying this flat has made poor Tony speechless!

0:23:500:23:54

Still, at least Mark is on hand, helping him through with his first project.

0:23:540:23:58

How will they get on? I can't wait to see.

0:23:580:24:01

Join me later and you can find out.

0:24:010:24:03

Still to come, shocking discoveries in this shop in Delabole, Cornwall.

0:24:050:24:09

Oh, good news! One thing at least you won't have to do is sort out the electrics,

0:24:090:24:12

cos they look fine(!)

0:24:120:24:15

Shocking news, too, from Wandsworth, south London,

0:24:160:24:19

but at least Tony's got his voice back.

0:24:190:24:21

I decided to leave it as a one-bedroom flat.

0:24:210:24:24

DION: Back to Huthwaite in Nottinghamshire,

0:24:270:24:30

where I saw this two/three-bedroom bungalow.

0:24:300:24:33

There had been an attempt to create a bedroom in the loft space,

0:24:350:24:38

but it was feared it didn't comply with building regulations,

0:24:380:24:41

and the stair access compromised space in what could otherwise be the front bedroom.

0:24:410:24:46

The property was bought for £62,000 by Andy and a group of investors,

0:24:490:24:53

planning to renovate and sell on at a profit.

0:24:530:24:56

Andy had several options in mind when it came to planning

0:24:580:25:01

the internal space.

0:25:010:25:03

As you come in the door,

0:25:030:25:04

there's a room on the left you could make a bedroom.

0:25:040:25:07

That will definitely be a third bedroom...

0:25:070:25:09

-Yeah.

-..regardless of what we do upstairs.

0:25:090:25:12

But if we do the loft conversion,

0:25:120:25:13

then technically that could become a four-bedroom.

0:25:130:25:16

One of the bedrooms was housed in the rear extension of the house.

0:25:170:25:21

There were suspicions it had been built without planning permission

0:25:210:25:24

or conforming to the regulations.

0:25:240:25:26

For example, where else would you find a bedroom window

0:25:260:25:29

looking into a bathroom?

0:25:290:25:31

But Andy still had plans to keep the bedroom counter.

0:25:310:25:35

If the extension at the back is not compliant,

0:25:360:25:39

then we will knock it down and then do a full loft conversion upstairs.

0:25:390:25:42

-OK.

-Which obviously will change the budget...

0:25:420:25:44

-Yes.

-And will change the pricing as well.

0:25:440:25:46

-Of course. Increase the price of the property.

-Yes, for sure.

0:25:460:25:49

We're back six months later to see Andy's improvements.

0:25:490:25:52

The bathroom's more than a bit better. It's fantastic.

0:25:590:26:01

The loft conversion has been brought up to building reg standards

0:26:070:26:10

and now has plenty of light from roof windows.

0:26:100:26:13

The master bedroom is now up here with en-suite facilities.

0:26:140:26:18

When we asked Andy what he'd done to the house, he simply answered,

0:26:210:26:24

"Everything."

0:26:240:26:25

There's a new staircase accessing the loft space from the kitchen.

0:26:290:26:33

Remember the kitchen?

0:26:330:26:35

MUSIC: Beautiful Future by Primal Scream

0:26:350:26:38

Because the stairs lead from the kitchen, a fire door has to be used,

0:26:480:26:52

a door that will last a minimum of 30 minutes in a fire.

0:26:520:26:55

It's known in the trade as an FD30.

0:26:550:26:58

But the staircase has robbed some space from what is now

0:27:020:27:04

the smallest bedroom on the left as we enter the house.

0:27:040:27:07

The non-symmetrical fireplace and chimneybreast in the lounge

0:27:140:27:17

has been removed, with added support from steelwork.

0:27:170:27:20

The final bedroom doesn't have fitted wardrobes any more,

0:27:230:27:26

but I know which version I'D prefer to sleep in.

0:27:260:27:29

Finally, to the old bedroom at the rear of the house -

0:27:370:27:40

housed in the extension he feared he'd have to demolish.

0:27:400:27:43

His fears were well-founded,

0:27:460:27:48

but the demolition paved the way for patio doors into the garden

0:27:480:27:52

and frosted glass in the bathroom,

0:27:520:27:54

much more conventionally overlooking the back garden.

0:27:540:27:56

To the front there's a new tarmac drive

0:27:590:28:01

with a dropped kerb and off-street parking,

0:28:010:28:04

but achieving this wasn't as straightforward as looks might suggest.

0:28:040:28:08

The front exterior gave us one of the biggest challenges

0:28:090:28:12

because when we first bought the property, the front was elevated

0:28:120:28:17

with a lot of gravel,

0:28:170:28:19

which apparently covered a lot of things.

0:28:190:28:22

When we removed the gravel,

0:28:220:28:24

we discovered there were several big tree stumps

0:28:240:28:27

about that thick and about that deep.

0:28:270:28:30

It took a whole week of using high-powered diggers

0:28:300:28:34

just to remove them.

0:28:340:28:36

We also discovered that there was an old water pipe, a copper pipe,

0:28:360:28:41

that was underneath there,

0:28:410:28:42

and in the process of digging up the stumps,

0:28:420:28:46

that was damaged, so we had to call the water company to replace that.

0:28:460:28:49

They were factors which contributed

0:28:490:28:51

to delays on Andy's original two-month timescale.

0:28:510:28:55

It's taken just over five months, largely to do the loft conversion,

0:28:550:28:59

the demolition of the extension,

0:28:590:29:01

the extra work with the tarmac and the tree stumps at the front of the property.

0:29:010:29:07

And we all know the saying, "Time is money."

0:29:070:29:10

I had a budget of 30,000,

0:29:100:29:12

but I knew that we would probably overspend on that,

0:29:120:29:15

due to some of the uncertainties,

0:29:150:29:17

particularly with the rear extension,

0:29:170:29:20

and the total spend has now come in to £41,000.

0:29:200:29:24

We called in two estate agents with all the important local knowledge

0:29:260:29:29

to give us an idea of what a property like this

0:29:290:29:31

would be worth on their patch.

0:29:310:29:34

First, the agent who saw the property before the work began.

0:29:340:29:37

This is my second visit to the property.

0:29:400:29:42

I was intrigued to see how it developed and I'm not disappointed.

0:29:420:29:46

The transformation is fantastic.

0:29:460:29:48

This is the first time I've been to the property.

0:29:480:29:50

My first impression is that this is a home

0:29:500:29:52

that's been extremely well modernised.

0:29:520:29:54

The specification is stylish,

0:29:540:29:55

the decorations are neutral and it's going to have wide appeal.

0:29:550:29:58

Andy bought for £62,000 and has spent 41,000 refurbishing,

0:30:000:30:05

so anything more than £103,000 is potential profit for him

0:30:050:30:09

and his investors. So has it all been worth it?

0:30:090:30:13

We have to bear in mind that at the end of the day

0:30:150:30:17

it is a semidetached property, but even so, because of the condition,

0:30:170:30:20

I would expect this to be achieving in the region of £130,000 now.

0:30:200:30:25

My personal professional recommendation would be

0:30:250:30:27

to put it on the market at an asking price of,

0:30:270:30:30

shall we say, offers around £135,000.

0:30:300:30:33

I'd advise the vendor to give careful consideration to any offer

0:30:330:30:36

of £125,000 and above.

0:30:360:30:38

We've sold the property for £130,000,

0:30:390:30:43

which has realised us a profit of £26,000.

0:30:430:30:47

Even though Andy's deducted £1,000 worth of expenses,

0:30:470:30:51

it still sounds like a result to me.

0:30:510:30:53

Andy's been developing since 2008.

0:30:530:30:56

Has this project taught him anything new?

0:30:560:30:59

Can you do a project and not learn anything?

0:30:590:31:02

We've learnt... I've learnt quite a lot.

0:31:020:31:04

It was the first time we've had to engage a structural engineer

0:31:040:31:09

in our project. It's the first time we've had to lower the kerb

0:31:090:31:13

to the front of a property

0:31:130:31:15

and it's the first time we've done a complete driveway as well.

0:31:150:31:19

So I've learnt a lot about the process for those things

0:31:190:31:23

and also a reality check of the costs involved in doing them.

0:31:230:31:28

Andy's not going to rest on his laurels.

0:31:280:31:30

He starts his next project in three days' time.

0:31:300:31:34

MUSIC: Albatross by Fleetwood Mac

0:31:350:31:38

-MARTIN:

-Cornwall has given us many things.

0:31:410:31:43

It gave us Mick Fleetwood, the drummer in Fleetwood Mac, for instance,

0:31:430:31:48

and the village I'm in gave us the first commercial wind farm in the UK.

0:31:480:31:53

But probably the most famous export from here is slate.

0:31:530:31:57

The village of Delabole has the oldest slate quarry in the UK,

0:31:570:32:01

and some would say the world.

0:32:010:32:03

Whatever the case, Delabole's slate is world-renowned.

0:32:030:32:07

Well, just a half a mile from the famous slate mine

0:32:110:32:13

in the centre of the village is the property I'm here to see,

0:32:130:32:16

and it certainly sounds like you get a lot of property for your money -

0:32:160:32:20

a commercial unit and three flats,

0:32:200:32:23

all for a guide price of £100,000-£125,000,

0:32:230:32:27

although, judging by the outside,

0:32:270:32:29

it's a while since this has been open for business.

0:32:290:32:33

Oh, yes, it is a bit of a mess.

0:32:330:32:36

Erm, anyway, let's try and see through that to describe what we've actually got.

0:32:360:32:40

Obviously, a little sandwich bar area at one point over that way

0:32:400:32:44

and then into the main body of the shop.

0:32:440:32:47

Oh, well, good news(!)

0:32:470:32:48

One thing at least you won't have to do is sort out the electrics,

0:32:480:32:51

cos they look fine(!)

0:32:510:32:52

Anyway, a slightly larger area of the shop here,

0:32:540:32:57

but very low ceiling

0:32:570:32:59

and straightaway you're getting a feeling that this is

0:32:590:33:02

a very interestingly shaped building.

0:33:020:33:05

Over this way, lots of space.

0:33:050:33:07

Obviously, this is the shop counter or was the shop counter.

0:33:070:33:11

When it comes to commercial units, of course,

0:33:110:33:13

one of the key things is the amount of floor space,

0:33:130:33:15

and you've certainly got a lot,

0:33:150:33:17

but it's going to take a bit of imagination to see what this

0:33:170:33:21

could be like.

0:33:210:33:22

To say nothing of taking quite a bit of cash

0:33:240:33:27

to reorganise this space into a viable commercial concern.

0:33:270:33:31

One thing for sure -

0:33:310:33:32

you'd need to sell quite a few sausage rolls to break even.

0:33:320:33:35

Now, what about the upstairs?

0:33:380:33:40

Well, up here, on this side of the building,

0:33:420:33:44

two flats to start out with.

0:33:440:33:46

Now, your hopes are slightly raised when you come into this room.

0:33:460:33:49

Love the door, quite like the sort of half-timbered look.

0:33:490:33:53

It's an interesting room.

0:33:530:33:55

It's an en-suite bedroom here and then a half-decent kitchen.

0:33:550:34:00

Just lulling you into a false sense of security! The rest of it is...

0:34:010:34:05

Well, you'll see. Urgh!

0:34:050:34:06

For a start, it is really higgledy-piggledy

0:34:080:34:10

and there are more changes of level than at a rock concert's sound check!

0:34:100:34:16

Ha! But a sort of entrance here, which sort of snakes its way up

0:34:160:34:21

into all these rooms. I mean, it's almost like somebody just thought,

0:34:210:34:24

"I know, we'll have a flat here."

0:34:240:34:26

"Oh, no, let's have another one over here."

0:34:260:34:29

"I need a window there, and I want a corridor," and so it goes on.

0:34:290:34:32

Into this bit. There is a bedroom there full of stuff.

0:34:320:34:35

This kitchen here is, well, basically, what you see.

0:34:350:34:39

I think you'd need to redesign it and have a window there

0:34:390:34:42

if you were to do any more, but...er...

0:34:420:34:45

I don't know. Through here is your lounge

0:34:450:34:48

and it is obviously a project that somebody had started and,

0:34:480:34:52

for whatever reason, they didn't complete.

0:34:520:34:55

That's not necessarily a bad thing, but in this case,

0:34:550:34:59

I don't think it's really helped and there is a lot of work to put this right.

0:34:590:35:04

Hmm, now I come to think of it,

0:35:040:35:06

EVERY job has been started and not finished,

0:35:060:35:09

so I'm still not very clear what we're looking at.

0:35:090:35:12

In all, there appears to be three flats -

0:35:120:35:15

one two-bed on the ground floor,

0:35:150:35:18

the first-floor flat has a studio arrangement

0:35:180:35:21

with a kitchen and a shower room - very poky -

0:35:210:35:24

and the second flat is a two-bedder,

0:35:240:35:27

but because of the levels, you don't know where you are.

0:35:270:35:30

So, no question, major big-time renovation required inside.

0:35:300:35:36

But once you step out the back,

0:35:360:35:38

maybe that really doesn't matter any more,

0:35:380:35:41

because there's an access there.

0:35:410:35:43

You can really get an idea

0:35:430:35:45

of the kind of higgledy-piggledy, hotchpotch nature

0:35:450:35:48

of the building out here,

0:35:480:35:50

but what we've also got are these garages

0:35:500:35:53

and lots and lots of

0:35:530:35:56

garden/space/potential building plot.

0:35:560:36:01

Again, looking this way, well, it's chaos.

0:36:010:36:04

The more I think about it,

0:36:040:36:05

I wonder if one option might be to knock the whole thing down

0:36:050:36:09

and then apply for planning permission for building

0:36:090:36:12

some kind of housing - like two, three classic, typical,

0:36:120:36:16

in-keeping properties here.

0:36:160:36:18

Cos certainly you've got space, and also the outlook from the back is sensational.

0:36:180:36:24

A local estate agent confirmed my thinking.

0:36:250:36:29

It turns out there is lapsed planning permission

0:36:290:36:32

for houses on this site,

0:36:320:36:33

so could it be that the best solution

0:36:330:36:37

would be to reinstate those plans?

0:36:370:36:39

If the purchaser decided to run with what the lapsed planning consent was for,

0:36:410:36:44

which was, of course, to demolish the existing building and create

0:36:440:36:47

two semidetached houses,

0:36:470:36:49

which themselves could fetch somewhere in the region

0:36:490:36:52

of probably £135,000-£155,000 each...

0:36:520:36:55

Whilst there was obviously consent at the back

0:36:550:36:58

for a detached three-bedroom bungalow

0:36:580:37:00

which itself would probably fetch somewhere of the region, I guess,

0:37:000:37:03

of £170,000-£180,000.

0:37:030:37:05

Using the top valuation,

0:37:050:37:07

the potential for the "demolish and build houses" option comes in

0:37:070:37:11

at a total market value of 490,000,

0:37:110:37:15

whereas refurbishing the building to make four flats,

0:37:150:37:18

the agent feels would market for a total of 380,000.

0:37:180:37:23

However, each option has costs to be factored in.

0:37:230:37:26

For the flats, refurbishment costs.

0:37:260:37:28

And for the houses, not just the building costs,

0:37:280:37:31

but the demolition costs, too.

0:37:310:37:34

Well, definitely one of those projects

0:37:340:37:36

where you really have to do your research

0:37:360:37:38

and maybe think outside the box.

0:37:380:37:40

Do you reopen the commercial unit,

0:37:400:37:42

do you restore the flats and rent them out

0:37:420:37:44

or do you knock the whole place down and build something here?

0:37:440:37:48

Lots of options for whoever bought it.

0:37:480:37:50

Let's find out who that was when it went under the hammer.

0:37:500:37:54

Lot 118.

0:37:540:37:55

Part-commercial, part-residential,

0:37:560:37:59

It's currently a vacant shop and three flats in the making.

0:37:590:38:02

Guide, 100-125. How about middle? How about 110?

0:38:020:38:05

110 is what I'm asking for.

0:38:050:38:07

How about 100?

0:38:070:38:09

Won't go less than 90.

0:38:090:38:11

90, choice of hands. Better-looking one I'll have.

0:38:110:38:13

90 I have. At 90.

0:38:130:38:14

At 90. No, that wasn't you.

0:38:140:38:15

After a sluggish start,

0:38:150:38:17

the packed auction room springs to bidding life

0:38:170:38:20

when we rejoin at 116,000.

0:38:200:38:23

116 I've got.

0:38:230:38:25

118. Belligerently he goes 118, and I didn't even ask.

0:38:250:38:28

And you went to 120, madam. I like you very much.

0:38:280:38:30

120 I've got. At 120.

0:38:300:38:32

Don't think he does. 122, 122, 124.

0:38:320:38:37

What do you want to do?

0:38:370:38:39

125, 125,

0:38:390:38:42

126, 126, 126.

0:38:420:38:45

126 for the first time and then I'll have a look about,

0:38:450:38:48

but 126 you're in. 126 first time,

0:38:480:38:51

126 second time,

0:38:510:38:54

126 third time.

0:38:540:38:55

126. Madam, well done.

0:38:550:38:58

126. G416. Thank you very much.

0:38:580:39:01

The 126,000 bid came from Ruth,

0:39:010:39:03

who was at the auction with her daughter, Tess.

0:39:030:39:08

Ruth is one of the directors in a business looking for new premises.

0:39:080:39:13

Mum and daughter came along to tell me more.

0:39:130:39:15

Ruth and Tess, great to meet you both.

0:39:160:39:18

-Nice to meet you too.

-Congratulations.

0:39:180:39:20

-Thank you.

-So, um, well, you've got yourself quite a challenge here.

0:39:200:39:24

-Yes, we certainly have, haven't we?

-Tell me why you wanted to buy it.

0:39:240:39:28

We're just going to flatten it, make it into a big car park...

0:39:280:39:33

-What?!

-Yes.

-You're knocking it down to build a car park?

0:39:330:39:37

Yep. And then at the back we're going to have a branch surgery

0:39:370:39:40

-for our veterinary practice.

-Oh, wow, you're a vet?

0:39:400:39:43

-Yes, I'm a vet.

-Both of you?

-No, I'm applying to veterinary college.

0:39:430:39:47

-A hopeful vet.

-Oh, great, so you've followed on from Mum's lead?

0:39:470:39:51

-Yep.

-This will be a branch surgery.

0:39:510:39:53

This will be an outreach that will serve the big hospital

0:39:530:39:56

we've got down in St Columb Major.

0:39:560:39:59

What's the most unusual thing somebody's brought you in to fix?

0:39:590:40:02

I've had a raccoon.

0:40:020:40:03

Ha-ha-ha-ha!

0:40:030:40:05

And I've had a python called Monty.

0:40:050:40:07

-No?

-Yeah.

0:40:070:40:08

As I don't like snakes, it was a bit of a...

0:40:090:40:12

-You don't like snakes?

-No.

-And somebody brought you a snake?

-Yeah.

0:40:120:40:15

-Or chickens.

-You don't like chickens?

0:40:150:40:17

Only on the plate.

0:40:170:40:19

-What's not to like about a chicken?

-Oh, furs, feathers.

0:40:190:40:22

Right, OK, so you've got a snake phobia and a chicken phobia.

0:40:220:40:25

-Yeah, yeah.

-Not brilliant for a vet, really, is it?

0:40:250:40:28

-Not really.

-Obviously, the snake one isn't going to happen very often.

0:40:280:40:31

-No, hopefully.

-What happened with Monty when they brought him in?

0:40:310:40:34

-Oh, he had scale rot.

-Oh, no.

-Quite serious if you're a snake.

0:40:340:40:37

-Well, probably, yeah.

-Yeah, yeah, antibiotics under the skin.

0:40:370:40:40

I said to my boss at the time, "I hope he doesn't bite me."

0:40:400:40:43

He said, "Actually, it's if he starts wrapping himself around you

0:40:430:40:46

"that you need to worry."

0:40:460:40:48

MUSIC: Theme to Monty Python's Flying Circus

0:40:480:40:52

So, Ruth and her fellow veterinary directors are planning,

0:40:520:40:57

well, you guessed it, something completely different -

0:40:570:41:01

somewhere where if you're suffering from scale rot, like Monty was,

0:41:010:41:06

you'll be very glad to see it.

0:41:060:41:09

But will the planners be equally pleased?

0:41:090:41:12

That's the question, and if planning is granted,

0:41:120:41:15

it's hoped there won't be any deceased parrots here in the future.

0:41:150:41:20

RASPBERRY SOUND

0:41:210:41:22

What was it that appealed about it, then?

0:41:220:41:25

Frontage on the main high street

0:41:250:41:28

and the lack of another vet's in the area as well obviously.

0:41:280:41:31

-Right.

-Yeah,

0:41:310:41:32

but it's very difficult to find properties in the right area

0:41:320:41:36

with potential for car park and on the main high street.

0:41:360:41:41

So explain to me a bit more about what you're planning to do.

0:41:410:41:44

-Knock it flat.

-Knock it down.

0:41:440:41:46

Tarmac the whole place out.

0:41:460:41:48

And put some prefab buildings in at first so we can be up and running

0:41:480:41:53

as quickly as possible.

0:41:530:41:55

Now, I know what you're thinking - prefabs?!

0:41:550:41:57

But not just any old prefabs, oh, no.

0:41:570:42:00

Nowadays you can actually build these modern units

0:42:010:42:05

that are very presentable,

0:42:050:42:06

that have actually a veterinary surgery inside them -

0:42:060:42:10

operating theatres, consulting rooms, waiting rooms,

0:42:100:42:13

-the whole works.

-X-ray rooms.

0:42:130:42:14

They can last for about 25 years.

0:42:140:42:17

-Plomp.

-Yeah.

-Yeah.

-Yeah.

0:42:170:42:18

What a great way of doing it!

0:42:180:42:21

-Yeah.

-The fact that it gives you an opportunity to try the business out.

-Yes.

0:42:210:42:24

-If it fails, you go, "Not to worry."

-Yep, that's right.

0:42:240:42:27

-Pick it up and move it on.

-Move to another space.

0:42:270:42:29

I suspect we'll need... We'll want to open more branch surgeries,

0:42:290:42:33

and so when we're finished here,

0:42:330:42:35

they can be picked up and taken to the next site.

0:42:350:42:38

But what's the council view going to be on

0:42:380:42:41

these peri-PET-etic prefabs?

0:42:410:42:44

I know some councils want to know how long they'll be installed

0:42:440:42:47

before granting permission.

0:42:470:42:49

I suppose they don't want prefabs sprouting up all around the country.

0:42:490:42:53

So what's the budget for what you've got planned?

0:42:530:42:56

Right, so we're looking at about 30,000 to have it demolished

0:42:560:43:01

and taken away,

0:43:010:43:03

and then we've got to think about tarmacking the car park -

0:43:030:43:07

that'll be about another 30,000. And then we're looking at about 100,000

0:43:070:43:12

for the prefab units.

0:43:120:43:13

-Right, OK.

-So, let's say 160

0:43:130:43:16

and then probably another ten for other expenses -

0:43:160:43:20

putting on the mains, architects' expenses, that sort of thing,

0:43:200:43:24

so 170.

0:43:240:43:25

And that's to do the prefab units?

0:43:250:43:27

-Yes.

-And what about building whatever you might build?

0:43:270:43:31

-Do you have any idea...?

-No, no, we haven't thought about that yet.

0:43:310:43:34

No. No.

0:43:340:43:35

Because that will be three or four years down the line.

0:43:350:43:38

-After you've seen whether or not it's worked.

-Yes. Yes.

0:43:380:43:41

Well, I've certainly seen places in a worse condition than this

0:43:430:43:47

brought back to life, but Ruth and Tess's plan is to knock it down

0:43:470:43:52

and turn it into a car park for their veterinary practice.

0:43:520:43:56

In order for that to happen,

0:43:560:43:57

they have to get the approval of the planners, though.

0:43:570:44:00

How will they get on when they start getting their plans?

0:44:000:44:03

You can find out later in the show.

0:44:030:44:05

Being cautious can pay off when it comes to getting it right in property.

0:44:100:44:14

Now, we saw how one of our buyers got on, but what about the other two?

0:44:140:44:17

Let's go back and find out.

0:44:170:44:19

-LUCY:

-My turn now to take you back to Wandsworth

0:44:210:44:24

where earlier I saw this one-bedroom first-floor flat, sold for 310,000.

0:44:240:44:30

I thought the key to its success would be to add a second bedroom.

0:44:300:44:34

Now, the easiest way to do that would be to move this kitchen

0:44:380:44:42

into this lounge and then that old kitchen space in there, well,

0:44:420:44:45

that could become bedroom number two.

0:44:450:44:47

Alternatively, you could start again

0:44:470:44:50

and completely rearrange this whole flat,

0:44:500:44:52

although I think that would be more costly and more time-consuming.

0:44:520:44:57

Either way, the potential to call this a two-bedroom flat

0:44:570:45:01

is a big tick in the box and a sure-fire way of adding value

0:45:010:45:04

to this property.

0:45:040:45:05

Accountant Tony, on the right,

0:45:070:45:08

bought this as his first renovation project.

0:45:080:45:11

He brought along his builder Mark to take look over the flat

0:45:110:45:14

and act as his spokesman because Tony had lost his voice!

0:45:140:45:18

And what is it that you want to achieve with this?

0:45:200:45:23

Well, I want it to be converted from a one-bedroom to a two.

0:45:230:45:25

OK. What do you think would work best here?

0:45:250:45:28

I think the lounge that we're in at the moment should be converted into

0:45:280:45:31

-the main bedroom.

-Really?

-Absolutely.

0:45:310:45:34

And then the kitchen will be bedroom two,

0:45:340:45:37

and what is the bedroom at the moment will become the lounge

0:45:370:45:40

and it will be a kitchen/diner.

0:45:400:45:41

Not exactly what I had in my mind,

0:45:410:45:43

but it would still have that extra bedroom space

0:45:430:45:46

that's much sought after in London.

0:45:460:45:49

The flat does have a 125-year lease, and the freeholders,

0:45:490:45:52

the local council, were due to replace the windows.

0:45:520:45:56

Can you foresee any problems at all?

0:45:580:46:00

Just on the timeframe.

0:46:000:46:02

I think dealing with a local authority might take a bit longer

0:46:020:46:05

than you'd hope for, so if that can move along nicely,

0:46:050:46:09

then no problem at all with the build.

0:46:090:46:11

He had a predicted £35,000 budget

0:46:110:46:13

and a timescale of two to three months.

0:46:130:46:17

We're back eight months later to see the results.

0:46:170:46:20

The new windows are a big improvement,

0:46:240:46:27

but it looks like neither mine or Mark's plan has come to fruition,

0:46:270:46:31

so there is now a large lounge/dining-kitchen.

0:46:310:46:34

High-spec units, white walls and laminate flooring in this open space

0:46:380:46:42

modernise the flat fabulously.

0:46:420:46:44

The bathroom's followed suit, too,

0:46:480:46:50

with fixtures and fittings that would be fitting in Scandinavia!

0:46:500:46:54

MUSIC: A Better Day by Avicii

0:46:540:46:57

# Magic call from a pretty thing

0:46:570:46:59

# Maybe it might be time

0:46:590:47:04

# For a better day

0:47:040:47:07

# For a better day

0:47:120:47:14

# For a better day... #

0:47:190:47:21

The bedroom used to have access to the kitchen,

0:47:210:47:24

and Mark was going to make this room a lounge/diner.

0:47:240:47:27

But it's still the only bedroom,

0:47:310:47:33

but with the access door to the kitchen walled up,

0:47:330:47:36

you can make more use of the space.

0:47:360:47:38

It's now a really spacious one-bedroom flat,

0:47:400:47:43

but why the change of plan?

0:47:430:47:45

Fortunately, Tony's got his voice back, so he can tell us.

0:47:450:47:49

I decided to leave it as a one-bedroom place

0:47:510:47:54

because when I put it onto paper,

0:47:540:47:56

on the plan, it would mean a very small two-bedroom place.

0:47:560:48:01

The second bedroom would be extremely small

0:48:010:48:04

and I thought a large one-bedroom would sell far more

0:48:040:48:07

than a smaller two-bedroom.

0:48:070:48:08

Interesting. Usually developers feel the maximum return can be had

0:48:090:48:14

by carving more rooms into the available space,

0:48:140:48:17

but I do take the point that the living space is much more generous

0:48:170:48:20

with this template.

0:48:200:48:22

The planning process, as expected,

0:48:220:48:24

did introduce delays, and costs from work on the windows will be paid off

0:48:240:48:29

to the freeholder in the first year.

0:48:290:48:31

The windows will be included in the surcharge,

0:48:320:48:35

and the surcharge for this particular year will be about £5,000.

0:48:350:48:40

Tony's original budget was 35,000.

0:48:400:48:43

Have there been savings from not doing the second bedroom?

0:48:430:48:47

Well, actually, it's come in...

0:48:470:48:48

Including the windows, it's about £25,000.

0:48:480:48:51

Mark and Tony have done well there.

0:48:520:48:54

But then again, the spend all has to be weighed up against the profit

0:48:540:48:58

and that's why we've asked two local estate agents along

0:48:580:49:01

to try and find out if Tony has made the right choice.

0:49:010:49:04

Is a spacious one-bed flat better than a small two-bed

0:49:040:49:08

in this instance?

0:49:080:49:09

I think there's always a temptation with people trying to cut things up

0:49:090:49:12

into smaller units, so you get two beds instead of one.

0:49:120:49:17

Sometimes that's a big mistake

0:49:170:49:19

because all that happens is you get a very cramped flat,

0:49:190:49:22

whereas this sort of flat, it's spacious,

0:49:220:49:25

it's well laid out,

0:49:250:49:26

there'll be a bigger audience for this sort of accommodation,

0:49:260:49:29

so it's not just a bolthole for a lot of people,

0:49:290:49:33

So it's important that they have a good living space.

0:49:330:49:37

The best refurbished properties that I see have white ceilings,

0:49:370:49:40

white walls, white finish. It's clean, it's neutral.

0:49:400:49:43

You know, people can just imagine their own furniture in there.

0:49:440:49:47

So I would have converted it the way this developer's done it.

0:49:470:49:50

This is an intriguing renovation.

0:49:500:49:53

It's quality over quantity, and this agent's view was that a top-spec

0:49:530:49:57

one-bed could potentially make more money than a cramped two-bed.

0:49:570:50:02

Well, I'm going to chew on that one, for sure.

0:50:020:50:04

But in London, it's not just space that makes a profitable property,

0:50:050:50:09

it's location.

0:50:090:50:10

So what about this location

0:50:100:50:12

and the great London "north or south of the river" divide?

0:50:120:50:16

A lot of people are moving from north of the river

0:50:170:50:20

to come to this area because they get more space for their money

0:50:200:50:23

and more open space.

0:50:230:50:24

Tony's intention has always been to sell on.

0:50:260:50:29

His total spend so far is 335,000.

0:50:290:50:32

Does it look like there's still potential profit here?

0:50:320:50:36

My estimate of market value would be £390,000,

0:50:360:50:41

but I would guide it at £400,000.

0:50:410:50:43

In terms of the value of this flat,

0:50:430:50:45

I could see it sitting comfortably on the market at £380,000.

0:50:450:50:50

That might not be what the owner wants,

0:50:500:50:52

but you've got to look at what else is for sale

0:50:520:50:54

and what else is sold in the area.

0:50:540:50:56

At the moment for a local authority property,

0:50:560:50:58

that's about the ceiling.

0:50:580:50:59

Yes, I would have thought 400,000

0:50:590:51:02

would have been more of a realistic price to put it on the market for.

0:51:020:51:05

And I'd be... I'd be quite pleased if I achieved the 390.

0:51:050:51:09

The 380, to me, would be rather low.

0:51:090:51:11

If he got that 390,000,

0:51:110:51:14

then that would mean a pre-tax profit of 55 grand,

0:51:140:51:17

and in case you were wondering,

0:51:170:51:19

one of the agents thought making it into a two-bed would have

0:51:190:51:23

reduced the value,

0:51:230:51:25

so maybe it's time to rethink London spaces.

0:51:250:51:28

Are they pleased with how things have gone?

0:51:280:51:31

Yeah, I mean, I'm really pleased.

0:51:330:51:34

I really don't think we could have achieved any more than what we've achieved.

0:51:340:51:39

Yeah, I'm pleased with the way it's turned out,

0:51:390:51:42

and obviously for our customer that's the most important thing.

0:51:420:51:45

So, hopefully, he's happy.

0:51:450:51:47

Well, I think I'd be ecstatic!

0:51:470:51:49

-MARTIN:

-Back now to Delabole in Cornwall, where earlier

0:51:540:51:57

I looked around this derelict shop with three flats above,

0:51:570:52:01

bought at auction by a veterinary practice for 126,000.

0:52:010:52:05

I met with Ruth, one of the practice directors and her daughter, Tess,

0:52:050:52:10

an aspiring vet,

0:52:100:52:11

to find out why the practice had chosen this particular location.

0:52:110:52:15

It's very difficult to find properties in the right area

0:52:150:52:18

with potential for car park and on the main high street.

0:52:180:52:22

So explain to me a bit more about what you're planning to do.

0:52:220:52:25

-Knock it flat.

-Knock it down.

0:52:250:52:27

Tarmac the whole place out and put some prefab buildings in first,

0:52:270:52:34

so we can be up and running as quickly as possible.

0:52:340:52:37

We're looking at about 30,000 to have it demolished and taken away

0:52:370:52:42

and then we've got to think about tarmacking the car park.

0:52:420:52:46

That will be about another 30,000.

0:52:460:52:48

And then we're looking at about 100,000 for the prefab units.

0:52:480:52:52

-Right, OK.

-So, let's say 160,

0:52:520:52:55

and then probably another ten for other expenses -

0:52:550:52:59

putting on the mains, architects' expenses, that sort of thing.

0:52:590:53:03

So 170.

0:53:030:53:04

The business hoped to have the new prefab practice up and running

0:53:040:53:08

in six to 12 months.

0:53:080:53:09

Well, we're back two years and two weeks later.

0:53:090:53:12

Well, what I thought would be a new, shiny car park

0:53:270:53:30

with a bustling surgery full of pets,

0:53:300:53:32

owners and their charges is little different to what I saw so long ago.

0:53:320:53:37

The property has, in fact, deteriorated even further

0:53:410:53:45

and there are only parts of it that are safe to enter.

0:53:450:53:49

Kim was recently appointed development manager by the practice

0:53:520:53:56

and Delabole now falls within her remit.

0:53:560:53:59

Fortunately, the neighbours across the road loaned us a room

0:53:590:54:02

more convivial for our interview.

0:54:020:54:04

When we bought Delabole,

0:54:060:54:08

we'd thought that we would go ahead

0:54:080:54:10

and turn it into a branch practice here,

0:54:100:54:14

possibly base some of our large animal work from this area.

0:54:140:54:19

About two months later,

0:54:190:54:21

a site we'd been after in St Austell came up

0:54:210:54:25

and it's just such a good opportunity for us, we had to go for it.

0:54:250:54:29

We had to put a lot of time and resources into developing St Austell.

0:54:290:54:34

It opened last January and we're already up to trying to make it a two-man practice,

0:54:340:54:39

looking at making it a three-man practice next year.

0:54:390:54:41

Obviously, this has taken time and effort

0:54:410:54:44

and it meant that Delabole had to go on hold and we thought,

0:54:440:54:48

"This is silly. We're probably upsetting the neighbours."

0:54:480:54:51

I came up and looked at the building a few months ago.

0:54:510:54:54

It was deteriorating badly. So we suggested it went back to auction.

0:54:540:54:59

So, after sitting on the building for over two years

0:54:590:55:01

and choosing to develop the other site in St Austell, which has a bigger population,

0:55:010:55:06

the practice decided to put the Delabole the property

0:55:060:55:09

back up for auction.

0:55:090:55:10

Have they been able to recoup their initial outlay

0:55:100:55:13

or has the market been performing well enough even to make a profit?

0:55:130:55:18

We invited two property experts along

0:55:200:55:23

to outline the prospects of this lot.

0:55:230:55:26

Don't worry, they know the no-go areas inside the building!

0:55:260:55:30

First up, the auctioneer who sold it the day before we filmed.

0:55:300:55:34

My initial thoughts are, "How is this still stood up?"

0:55:360:55:39

It just needs to go and be redeveloped.

0:55:410:55:44

I work in the local area

0:55:440:55:45

and this has been a bit of an eyesore for a number of years,

0:55:450:55:48

so I'm sure the neighbours in the area would be happy for it

0:55:480:55:50

to be developed and tidied up to look smart.

0:55:500:55:52

Usually, when we revisit a property,

0:55:520:55:55

we ask the agents what they think about the standard of finish.

0:55:550:55:59

Perhaps the more pertinent question this time is,

0:55:590:56:01

"Will the general area ever be able to support a development here?"

0:56:010:56:05

Things have improved a great deal in the last couple of years

0:56:070:56:10

and I think there would be a demand for properties to be developed on this site,

0:56:100:56:13

and I think they would sell pretty well.

0:56:130:56:15

So you've got Padstow cachet here on the north Cornwall coastline

0:56:150:56:20

and it's so easily accessible to get back to the mainland as well,

0:56:200:56:25

as it were - the rest of the country.

0:56:250:56:27

So it's just beginning to just bubble away nicely.

0:56:270:56:31

When we first visited, there were lapsed plans for developing the site

0:56:320:56:36

with two semidetached houses and a bungalow.

0:56:360:56:38

The agents consider that if those plans went ahead today,

0:56:380:56:42

the site would now be worth £85,000 more than it was two years ago.

0:56:420:56:47

The practice did consider pursuing planning

0:56:470:56:49

and building houses on the land,

0:56:490:56:51

but decided against it as it was outside of their specialisation.

0:56:510:56:56

What value would they have added?

0:56:560:56:59

If you got planning permission on this site in its current state,

0:56:590:57:01

it wouldn't necessarily add a vast amount of value to its selling price

0:57:010:57:05

but it would make it a more attractive proposition.

0:57:050:57:07

If the people who sold it at auction had got the planning and made it

0:57:070:57:11

what's known as "oven-ready" for a builder to come in

0:57:110:57:14

and just to break ground and off he goes,

0:57:140:57:17

it would probably have been worth another £10,000 or £15,000.

0:57:170:57:23

OK, the time of reckoning has arrived.

0:57:230:57:25

Two years ago this property sold at auction for 126,000.

0:57:250:57:30

Now, in its more dilapidated state, what did it sell for?

0:57:300:57:34

At yesterday's auction, the property sold for £130,500.

0:57:340:57:39

That's a small profit of 4,500, minus expenses.

0:57:390:57:43

We're very, very pleased with that figure.

0:57:430:57:46

Having paid 126,000 for it two years ago, the property has stood there,

0:57:460:57:51

not done very much at all.

0:57:510:57:54

So, yes, everyone, including all the partners, are absolutely delighted.

0:57:540:57:58

A great result, but, for me, it will always be an "indelabole" memory!

0:57:580:58:03

Property renovation stories never fail to keep us hooked.

0:58:070:58:11

Yes, and we've got plenty more where these came from.

0:58:110:58:13

Yes, so make sure you join us next time on Homes Under The Hammer.

0:58:130:58:17

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