Episode 79 Homes Under the Hammer

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

when it comes to property developing.

There are so many ways you can go.

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

There's one place you can head to

to potentially get yourself a bargain,

and that's your local property auction.

Making the right choices are crucial

if you want to survive in the property game.

Did the buyers on today's show choose wisely?

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

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

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

but it's only half a door.

This former council flat in Wandsworth, south London,

could easily expand on its one-bedroom status.

That could become bedroom number two.

This large detached shop in Delabole, Cornwall,

seems reasonable at first glance, but...

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

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

All of these properties have been sold at auction.

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

when they went under the hammer.

Madam, well done.

DION: The village of Huthwaite in Nottinghamshire

is also close to Derbyshire,

both areas, of course, synonymous with coal mining.

But there's some pretty countryside nearby

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

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

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

In the auction catalogue it says it is a semidetached bungalow

with two/three bedrooms.

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

I'm quite confused.

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

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

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

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

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

Enough for any insomniac!

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

but it's only half a door.

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

I'm not sure what that cupboard is,

but you've got that big window there.

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

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

Make use of the big window.

Get rid of that, whatever it is.

What else do we have down the hallway?

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

A bit of a mess. A lounge here.

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

This must be bedroom one.

Good-sized bedroom. Fitted wardrobes.

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

Bathroom is just there.

Start again with that.

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

and I am guessing this must be bedroom number two.

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

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

If you wanted to keep it as a bedroom,

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

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

I'm going to have a look.

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

which must be the third bedroom,

but it definitely doesn't comply with building regulations.

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

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

put some windows in and get some better access.

MUSIC: Theme to Steptoe And Son

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

reminds me of a sitcom set.

Can't think which one, though(!)

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

They're the only things I would keep.

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

there's no sign of damp.

Now, what was that sitcom called?

That's it. The Addams Family!

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

you've got space out the back as well.

And I think it is quite a large area.

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

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

you'd have a nice back garden.

That there as well is your garage.

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

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

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

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

The old brain cells are working overtime to work out

if this semi could be extended

to create something much bigger.

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

on the right approach.

My advice would be to make this

into a three-bedroom semidetached bungalow,

with two bedrooms to the ground floor and a further bedroom

to the first floor.

I would keep the extension on the ground floor.

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

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

and making sure the bedroom on the first floor is compliant

for building regulation purposes.

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

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

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

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

what would your £67,000 investment be worth?

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

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

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

So it seems that third bedroom was the converted loft

and it definitely doesn't comply with building regs.

So currently, this is a two-bed property.

Whoever takes this on has got their work cut out.

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

Lot number six.

A two-bedroomed semidetached bungalow that needs a scheme of

modernisation and improvement.

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

At £40,000 and it's in the market.

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

44 is bid.

The fast-paced bids came from several interested parties.

We rejoin the bidding at £57,000.

57. 58. At 58,000.

59 elsewhere?

At £58,000, finished and done.

59. At 59....500.

60,000.

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

At 61,500.

500.

62.

All done at 62,000.

Once. Twice.

Third chance.

Sold at 62,000.

Thank you.

The successful bid came from Andy.

He started property developing in 2008

and he's been doing it ever since.

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

which is what's needed here.

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

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

-Thank you, Dion.

-Tell me, what made you buy this property?

I work with a number of investors.

We buy properties for a number of reasons.

One, obviously, is to make money.

The other one is, being local to the area,

we like to bring empty homes back into use

because having a house like this sitting around for years

doesn't make sense, really.

-Who'll do the work for you?

-We've got a team of contractors.

-They do all of our work every time.

-Do you let them get on with it?

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

-That's good.

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

"You didn't tell us that."

Andy, are there going to be any layout changes?

Because as you come in the door,

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

That will definitely be a third bedroom.

-Yeah.

-Regardless of what we do upstairs.

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

a four-bedroom.

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

or structural engineer to have a look at it.

But as far as building control is concerned,

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

and, you know, all the usual stuff,

all of which no problem to us at all.

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

-A little bit more money.

-That's right.

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

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

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

-For sure.

What would you expect to get back?

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

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

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

-Of course.

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

not always, but it can be.

Time can be money.

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

then it will be rented,

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

And outside the front, and out the back,

what are your plans in particular?

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

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

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

The back, we'll do the same thing.

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

Just make it a nice home for somebody,

whether they're buying it or renting it.

Andy did pay for a mining search claim,

which reveals any history of subsidence.

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

Further research revealed other planning problems.

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

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

or if it was built within building regulations.

If the extension at the back is not compliant,

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

-OK.

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

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

-Yes. For sure.

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

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

-More research?

-Yes, absolutely!

There were two brothers.

They built this bungalow and the one next-door.

They were chocolate manufacturers in this area.

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

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

who left it, really, unoccupied since 1985.

Did he say chocolate?

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

MUSIC: Sweet Dreams by Eurythmics

Although the original factory premises were knocked down

to make way for bungalows,

manufacture was relocated to army Nissen huts

at the back of the plot around 1960.

I think this could be a selling point,

having confectionery this convenient!

# Sweet dreams are made of this... #

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

in the first place. What were you doing beforehand?

OK, I was in financial services.

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

-OK.

..who talked so much about properties.

And something just resonated with me immediately,

and then I did more research

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

either made their money in properties, real estate,

or they held their wealth in real estate.

That day everything changed for me.

Within two weeks, I started the process.

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

-Yep, look forward to it.

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

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

this will be a lovely family home.

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

You can find out later on in the programme.

-LUCY:

-Wandsworth is a district of south-west London.

It takes its name from the River Wandle

which joins the Thames at Wandsworth.

Close proximity and transport links to the city centre,

make it a desirable location.

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

so there are no bargain-basement prices here.

Wandsworth might be an expensive part of London

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

buy in this borough

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

Every little helps, after all,

especially since the average property price

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

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

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

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

was £250,000.

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

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

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

in this purpose-built block here.

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

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

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

with four flats accessed by a communal door,

so it shouldn't be too noisy.

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

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

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

a huge lounge there, and at the back here,

this is a great-sized bedroom.

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

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

A wonderful space in there, A huge kitchen.

And what I do really like about this place is

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

It's got tremendous flow - really lovely.

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

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

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

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

that can become bedroom number two.

Alternatively, you could start again and completely rearrange

this whole flat,

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

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

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

to this property.

For London, these rooms are spacious,

and a combined lounge-kitchen area

would be in keeping with the modern style of living.

One big negative with this property - the windows!

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

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

They need changing!

The windows are part of the fabric of the building

and are the freeholder's responsibility.

You might not get permission to change them

and the same goes for the layout rejig.

So what does a local estate agent think?

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

for in the region of £250,000.

It's very sought after,

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

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

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

the communal garden is well maintained.

So, very popular.

What about the feasibility of my second bedroom plans?

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

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

and so it's really worth doing.

MUSIC: It Takes Two by Marvin Gaye and Kim Weston

# It takes two, baby

# Me and you

# Just take two... #

And how would it affect the valuation figures?

So as a one-bedroom renovated flat,

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

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

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

And if converted with the freeholder's permission

to a two-bed?

As a two-bedroom flat,

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

of £400,000,

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

No, it might not be oozing character,

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

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

Ching-ching!

Who saw the potential with this flat?

Let's head to the auction and find out.

Lot 34 is... Seen this one.

Wandsworth SW18. One-bed purpose-built flat.

Nice. Good to get purpose-built flats.

Needs a bit of updating. Great location.

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

I don't know, start 250?

250 sitting down.

250. 255 with the catalogue.

260 sitting down. 265, 270.

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

We rejoin the bidding at £303,000.

303.

303 right at the back, another spot.

304, 305, 306, 307,

308, 309,

310, 311.

311. One more just over the ten. 311.

310 down here.

First time. Second time.

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

Sold, 310.

Good buy. I like that one.

The successful bidder in the packed auction room escaped

the scrutiny of our cameras,

but accountant Tony did catch up with me later on

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

Guys, congratulations.

-So who has actually bought this flat?

-HOARSELY: Me.

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

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

And today you're going to be helping Tony explain

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

-I have.

-How did you lose your voice?

-Flu.

-I'm glad you could make it today.

-So you wanted to buy this property.

-I did.

-What is it you liked about this area?

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

-Yeah.

What is it that you want to achieve with this?

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

-OK.

And then probably will sell it on...

-OK.

-..in a few months' time.

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

-Absolutely.

-..into a two?

-Yes.

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

-Yes.

What do you think would work best here?

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

-the main bedroom.

-Really?

-Yeah. Absolutely.

-OK.

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

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

And it'll be a kitchen/diner.

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

for conversion to a lounge/kitchen/diner,

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

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

so having paid 310 grand, a not insignificant sum,

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

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

So your job here is to completely and utterly and solely

-just add value to this building?

-Absolutely.

So what other ideas do you have?

I think we've got to make it contemporary.

-Yes.

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

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

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

In what way are you going to make this contemporary?

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

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

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

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

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

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

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

-I think that's the way forward.

-So, Tony,

how much property experience do you have?

-None.

-None?

-No.

-This is your first project?

-My first project.

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

-I am.

-You're very busy.

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

-Surely you're going to...

-Should help with the costings.

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

-We'll have to wait and see.

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

-Yes.

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

-or any huge structural change.

-No, no.

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

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

but we don't need planning permission.

So, what do you think about the communal areas?

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

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

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

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

I mean, how much do you know about that?

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

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

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

all the windows.

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

-Absolutely.

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

-I did.

-Did you read the legal pack?

-I did indeed.

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

-None at all.

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

-First time I saw it was today.

-Really?

-Yeah.

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

-I think it was a good buy.

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

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

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

I've got a team of guys, yeah,

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

So are you local to the area?

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

Not too bad. Not too bad a journey.

Can you foresee any problems at all?

Only with the freeholder, I think.

And just on the timeframe,

I think dealing with a local authority

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

so if that can move along nicely,

then no problem at all with the build.

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

-and you feel better soon.

-So do I, so do I.

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

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

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

-Thank you.

-Thank you.

-Congratulations.

-OK.

-Thank you.

So buying this flat has made poor Tony speechless!

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

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

Join me later and you can find out.

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

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

cos they look fine(!)

Shocking news, too, from Wandsworth, south London,

but at least Tony's got his voice back.

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

DION: Back to Huthwaite in Nottinghamshire,

where I saw this two/three-bedroom bungalow.

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

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

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

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

planning to renovate and sell on at a profit.

Andy had several options in mind when it came to planning

the internal space.

As you come in the door,

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

That will definitely be a third bedroom...

-Yeah.

-..regardless of what we do upstairs.

But if we do the loft conversion,

then technically that could become a four-bedroom.

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

There were suspicions it had been built without planning permission

or conforming to the regulations.

For example, where else would you find a bedroom window

looking into a bathroom?

But Andy still had plans to keep the bedroom counter.

If the extension at the back is not compliant,

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

-OK.

-Which obviously will change the budget...

-Yes.

-And will change the pricing as well.

-Of course. Increase the price of the property.

-Yes, for sure.

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

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

The loft conversion has been brought up to building reg standards

and now has plenty of light from roof windows.

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

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

"Everything."

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

Remember the kitchen?

MUSIC: Beautiful Future by Primal Scream

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

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

It's known in the trade as an FD30.

But the staircase has robbed some space from what is now

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

The non-symmetrical fireplace and chimneybreast in the lounge

has been removed, with added support from steelwork.

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

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

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

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

His fears were well-founded,

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

and frosted glass in the bathroom,

much more conventionally overlooking the back garden.

To the front there's a new tarmac drive

with a dropped kerb and off-street parking,

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

The front exterior gave us one of the biggest challenges

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

with a lot of gravel,

which apparently covered a lot of things.

When we removed the gravel,

we discovered there were several big tree stumps

about that thick and about that deep.

It took a whole week of using high-powered diggers

just to remove them.

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

that was underneath there,

and in the process of digging up the stumps,

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

They were factors which contributed

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

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

the demolition of the extension,

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

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

I had a budget of 30,000,

but I knew that we would probably overspend on that,

due to some of the uncertainties,

particularly with the rear extension,

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

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

to give us an idea of what a property like this

would be worth on their patch.

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

This is my second visit to the property.

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

The transformation is fantastic.

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

My first impression is that this is a home

that's been extremely well modernised.

The specification is stylish,

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

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

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

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

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

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

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

My personal professional recommendation would be

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

shall we say, offers around £135,000.

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

of £125,000 and above.

We've sold the property for £130,000,

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

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

it still sounds like a result to me.

Andy's been developing since 2008.

Has this project taught him anything new?

Can you do a project and not learn anything?

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

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

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

to the front of a property

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

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

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

Andy's not going to rest on his laurels.

He starts his next project in three days' time.

MUSIC: Albatross by Fleetwood Mac

-MARTIN:

-Cornwall has given us many things.

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

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

But probably the most famous export from here is slate.

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

and some would say the world.

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

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

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

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

a commercial unit and three flats,

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

although, judging by the outside,

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

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

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

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

and then into the main body of the shop.

Oh, well, good news(!)

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

cos they look fine(!)

Anyway, a slightly larger area of the shop here,

but very low ceiling

and straightaway you're getting a feeling that this is

a very interestingly shaped building.

Over this way, lots of space.

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

When it comes to commercial units, of course,

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

and you've certainly got a lot,

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

could be like.

To say nothing of taking quite a bit of cash

to reorganise this space into a viable commercial concern.

One thing for sure -

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

Now, what about the upstairs?

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

two flats to start out with.

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

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

It's an interesting room.

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

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

Well, you'll see. Urgh!

For a start, it is really higgledy-piggledy

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

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

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

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

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

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

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

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

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

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

I don't know. Through here is your lounge

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

for whatever reason, they didn't complete.

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

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

Hmm, now I come to think of it,

EVERY job has been started and not finished,

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

In all, there appears to be three flats -

one two-bed on the ground floor,

the first-floor flat has a studio arrangement

with a kitchen and a shower room - very poky -

and the second flat is a two-bedder,

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

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

But once you step out the back,

maybe that really doesn't matter any more,

because there's an access there.

You can really get an idea

of the kind of higgledy-piggledy, hotchpotch nature

of the building out here,

but what we've also got are these garages

and lots and lots of

garden/space/potential building plot.

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

The more I think about it,

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

and then apply for planning permission for building

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

in-keeping properties here.

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

A local estate agent confirmed my thinking.

It turns out there is lapsed planning permission

for houses on this site,

so could it be that the best solution

would be to reinstate those plans?

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

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

two semidetached houses,

which themselves could fetch somewhere in the region

of probably £135,000-£155,000 each...

Whilst there was obviously consent at the back

for a detached three-bedroom bungalow

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

of £170,000-£180,000.

Using the top valuation,

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

at a total market value of 490,000,

whereas refurbishing the building to make four flats,

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

However, each option has costs to be factored in.

For the flats, refurbishment costs.

And for the houses, not just the building costs,

but the demolition costs, too.

Well, definitely one of those projects

where you really have to do your research

and maybe think outside the box.

Do you reopen the commercial unit,

do you restore the flats and rent them out

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

Lots of options for whoever bought it.

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

Lot 118.

Part-commercial, part-residential,

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

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

110 is what I'm asking for.

How about 100?

Won't go less than 90.

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

90 I have. At 90.

At 90. No, that wasn't you.

After a sluggish start,

the packed auction room springs to bidding life

when we rejoin at 116,000.

116 I've got.

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

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

120 I've got. At 120.

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

What do you want to do?

125, 125,

126, 126, 126.

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

but 126 you're in. 126 first time,

126 second time,

126 third time.

126. Madam, well done.

126. G416. Thank you very much.

The 126,000 bid came from Ruth,

who was at the auction with her daughter, Tess.

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

Mum and daughter came along to tell me more.

Ruth and Tess, great to meet you both.

-Nice to meet you too.

-Congratulations.

-Thank you.

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

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

-Tell me why you wanted to buy it.

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

-What?!

-Yes.

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

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

-for our veterinary practice.

-Oh, wow, you're a vet?

-Yes, I'm a vet.

-Both of you?

-No, I'm applying to veterinary college.

-A hopeful vet.

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

-Yep.

-This will be a branch surgery.

This will be an outreach that will serve the big hospital

we've got down in St Columb Major.

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

I've had a raccoon.

Ha-ha-ha-ha!

And I've had a python called Monty.

-No?

-Yeah.

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

-You don't like snakes?

-No.

-And somebody brought you a snake?

-Yeah.

-Or chickens.

-You don't like chickens?

Only on the plate.

-What's not to like about a chicken?

-Oh, furs, feathers.

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

-Yeah, yeah.

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

-Not really.

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

-No, hopefully.

-What happened with Monty when they brought him in?

-Oh, he had scale rot.

-Oh, no.

-Quite serious if you're a snake.

-Well, probably, yeah.

-Yeah, yeah, antibiotics under the skin.

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

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

"that you need to worry."

MUSIC: Theme to Monty Python's Flying Circus

So, Ruth and her fellow veterinary directors are planning,

well, you guessed it, something completely different -

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

you'll be very glad to see it.

But will the planners be equally pleased?

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

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

RASPBERRY SOUND

What was it that appealed about it, then?

Frontage on the main high street

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

-Right.

-Yeah,

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

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

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

-Knock it flat.

-Knock it down.

Tarmac the whole place out.

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

as quickly as possible.

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

But not just any old prefabs, oh, no.

Nowadays you can actually build these modern units

that are very presentable,

that have actually a veterinary surgery inside them -

operating theatres, consulting rooms, waiting rooms,

-the whole works.

-X-ray rooms.

They can last for about 25 years.

-Plomp.

-Yeah.

-Yeah.

-Yeah.

What a great way of doing it!

-Yeah.

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

-Yes.

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

-Yep, that's right.

-Pick it up and move it on.

-Move to another space.

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

and so when we're finished here,

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

But what's the council view going to be on

these peri-PET-etic prefabs?

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

before granting permission.

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

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

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

and taken away,

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

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

for the prefab units.

-Right, OK.

-So, let's say 160

and then probably another ten for other expenses -

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

so 170.

And that's to do the prefab units?

-Yes.

-And what about building whatever you might build?

-Do you have any idea...?

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

No. No.

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

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

-Yes. Yes.

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

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

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

In order for that to happen,

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

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

You can find out later in the show.

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

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

Let's go back and find out.

-LUCY:

-My turn now to take you back to Wandsworth

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

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

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

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

that could become bedroom number two.

Alternatively, you could start again

and completely rearrange this whole flat,

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

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

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

to this property.

Accountant Tony, on the right,

bought this as his first renovation project.

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

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

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

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

OK. What do you think would work best here?

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

-the main bedroom.

-Really?

-Absolutely.

And then the kitchen will be bedroom two,

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

and it will be a kitchen/diner.

Not exactly what I had in my mind,

but it would still have that extra bedroom space

that's much sought after in London.

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

the local council, were due to replace the windows.

Can you foresee any problems at all?

Just on the timeframe.

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

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

then no problem at all with the build.

He had a predicted £35,000 budget

and a timescale of two to three months.

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

The new windows are a big improvement,

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

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

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

modernise the flat fabulously.

The bathroom's followed suit, too,

with fixtures and fittings that would be fitting in Scandinavia!

MUSIC: A Better Day by Avicii

# Magic call from a pretty thing

# Maybe it might be time

# For a better day

# For a better day

# For a better day... #

The bedroom used to have access to the kitchen,

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

But it's still the only bedroom,

but with the access door to the kitchen walled up,

you can make more use of the space.

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

but why the change of plan?

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

I decided to leave it as a one-bedroom place

because when I put it onto paper,

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

The second bedroom would be extremely small

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

than a smaller two-bedroom.

Interesting. Usually developers feel the maximum return can be had

by carving more rooms into the available space,

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

with this template.

The planning process, as expected,

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

to the freeholder in the first year.

The windows will be included in the surcharge,

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

Tony's original budget was 35,000.

Have there been savings from not doing the second bedroom?

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

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

Mark and Tony have done well there.

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

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

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

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

in this instance?

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

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

Sometimes that's a big mistake

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

whereas this sort of flat, it's spacious,

it's well laid out,

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

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

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

The best refurbished properties that I see have white ceilings,

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

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

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

This is an intriguing renovation.

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

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

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

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

it's location.

So what about this location

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

A lot of people are moving from north of the river

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

and more open space.

Tony's intention has always been to sell on.

His total spend so far is 335,000.

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

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

but I would guide it at £400,000.

In terms of the value of this flat,

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

That might not be what the owner wants,

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

and what else is sold in the area.

At the moment for a local authority property,

that's about the ceiling.

Yes, I would have thought 400,000

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

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

The 380, to me, would be rather low.

If he got that 390,000,

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

and in case you were wondering,

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

reduced the value,

so maybe it's time to rethink London spaces.

Are they pleased with how things have gone?

Yeah, I mean, I'm really pleased.

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

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

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

So, hopefully, he's happy.

Well, I think I'd be ecstatic!

-MARTIN:

-Back now to Delabole in Cornwall, where earlier

I looked around this derelict shop with three flats above,

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

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

an aspiring vet,

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

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

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

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

-Knock it flat.

-Knock it down.

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

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

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

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

That will be about another 30,000.

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

-Right, OK.

-So, let's say 160,

and then probably another ten for other expenses -

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

So 170.

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

in six to 12 months.

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

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

with a bustling surgery full of pets,

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

The property has, in fact, deteriorated even further

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

Kim was recently appointed development manager by the practice

and Delabole now falls within her remit.

Fortunately, the neighbours across the road loaned us a room

more convivial for our interview.

When we bought Delabole,

we'd thought that we would go ahead

and turn it into a branch practice here,

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

About two months later,

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

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

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

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

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

Obviously, this has taken time and effort

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

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

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

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

So, after sitting on the building for over two years

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

the practice decided to put the Delabole the property

back up for auction.

Have they been able to recoup their initial outlay

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

We invited two property experts along

to outline the prospects of this lot.

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

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

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

It just needs to go and be redeveloped.

I work in the local area

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

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

to be developed and tidied up to look smart.

Usually, when we revisit a property,

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

Perhaps the more pertinent question this time is,

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

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

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

and I think they would sell pretty well.

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

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

as it were - the rest of the country.

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

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

with two semidetached houses and a bungalow.

The agents consider that if those plans went ahead today,

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

The practice did consider pursuing planning

and building houses on the land,

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

What value would they have added?

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

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

but it would make it a more attractive proposition.

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

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

and just to break ground and off he goes,

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

OK, the time of reckoning has arrived.

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

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

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

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

We're very, very pleased with that figure.

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

not done very much at all.

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

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

Property renovation stories never fail to keep us hooked.

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

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