Episode 13

Episode 13

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0:00:02 > 0:00:04Hello. Now, property auctions attract all sorts -

0:00:04 > 0:00:07from seasoned developers to property newbies.

0:00:07 > 0:00:09Yes, but whatever your level of experience,

0:00:09 > 0:00:12unexpected problems can always catch you out.

0:00:12 > 0:00:16Yes, it's preparation, preparation, just a little bit more preparation.

0:00:16 > 0:00:18And don't forget, we're always here to help.

0:00:45 > 0:00:48All sorts of lots are up for grabs at auction - from your two-up,

0:00:48 > 0:00:50two-down terrace houses to your plots of land

0:00:50 > 0:00:52where the world is your oyster.

0:00:52 > 0:00:56Yeah. The possibilities are endless and so are the opportunities.

0:00:56 > 0:00:58So, what's on offer on today's programme?

0:01:00 > 0:01:04In Otterton, Devon this two-bed chalet bungalow has plenty

0:01:04 > 0:01:06of potential, so what's the problem?

0:01:07 > 0:01:08It's that view!

0:01:09 > 0:01:13Well, Martin, the vistas at this Tottenham, London flat

0:01:13 > 0:01:15aren't that great either.

0:01:15 > 0:01:18It doesn't have such an aspirational view.

0:01:19 > 0:01:24The view at this commercial lot in Alvaston, Derby is something else.

0:01:24 > 0:01:26I'm just not sure it's something good.

0:01:26 > 0:01:29For what I can see, I don't really want to be going any further.

0:01:30 > 0:01:32All these properties were bought at auction.

0:01:32 > 0:01:36We'll find out who got them and how much they paid

0:01:36 > 0:01:38when these homes went under the hammer.

0:01:38 > 0:01:39Sold.

0:01:43 > 0:01:47This is Budleigh Salterton in East Devon - a glorious stretch

0:01:47 > 0:01:51of pebble beach still scattered with working fishing boats

0:01:51 > 0:01:54and a town centre that looks lost in time.

0:01:57 > 0:02:01Well, just a few miles away from that lovely beach is the equally

0:02:01 > 0:02:05lovely little village of Otterton, situated on the River Otter.

0:02:05 > 0:02:10And joy of joys, it is the location of the property I'm here to see.

0:02:15 > 0:02:17Otterton has its own craft centre

0:02:17 > 0:02:21which bakes its own bread from wholemeal flour.

0:02:21 > 0:02:25This is traditional rural Devon and I love it.

0:02:25 > 0:02:27But will I love today's property?

0:02:27 > 0:02:30Well, the house sits on the outskirts of the village

0:02:30 > 0:02:33which means you get lovely rural views and also,

0:02:33 > 0:02:36it benefits from a quarter of an acre plot.

0:02:36 > 0:02:40I say house, it's more like a chalet bungalow. Let's have a look.

0:02:40 > 0:02:45The guide price on this one, £200-250,000.

0:02:47 > 0:02:49Hm, the first thing that hits you when you walk through the door is

0:02:49 > 0:02:54a bit of a smell of damp so that's not ideal.

0:02:54 > 0:02:56But an odd entrance as well.

0:02:56 > 0:02:59You come into this sort of, I guess, a living room area there,

0:02:59 > 0:03:01although it feels more like a bedroom.

0:03:01 > 0:03:03And through into this area here which is

0:03:03 > 0:03:06the dining room/living area, I guess.

0:03:06 > 0:03:09Very dated kitchen off there,

0:03:09 > 0:03:12although you've got nice views out of those windows.

0:03:12 > 0:03:16It needs sorting out and this whole place has that feel of needing

0:03:16 > 0:03:18a bit of...yeah, tender loving care.

0:03:18 > 0:03:20But one thing you can't get away from,

0:03:20 > 0:03:22it certainly makes the most of its location.

0:03:22 > 0:03:25Fantastic views out of the windows there.

0:03:26 > 0:03:28Which is just as well

0:03:28 > 0:03:31because inside it's not exactly a sight for sore eyes.

0:03:31 > 0:03:33There's another downstairs room

0:03:33 > 0:03:36at the front which I guess is a bedroom.

0:03:36 > 0:03:39And there are plenty of tell-tale signs of damp.

0:03:41 > 0:03:45Upstairs you have a very sloped ceiling and pastel pink bathroom.

0:03:49 > 0:03:51And another bedroom which is

0:03:51 > 0:03:55showing signs that all is not right with the roof.

0:03:55 > 0:04:00# Cos I smell a mean trouble

0:04:01 > 0:04:08# Lord, I smell trouble ahead of me, oh, yeah... #

0:04:08 > 0:04:12The whole place smells mouldy and mildew-y

0:04:12 > 0:04:16so back outside for a breath of fresh air, I think.

0:04:16 > 0:04:18Apart from the fact that the property is

0:04:18 > 0:04:20a little bit close to the road,

0:04:20 > 0:04:25it really does make the most of its location with the open views.

0:04:25 > 0:04:28And then at the side of it, this really nice garden.

0:04:28 > 0:04:33Now, it obviously does need a bit of...time spent on it

0:04:33 > 0:04:35but it's charming in its own way.

0:04:35 > 0:04:38Lots of little pathways leading to hidden...

0:04:38 > 0:04:41Whatever we're going to find through here. Oh, look at this.

0:04:41 > 0:04:46Little clearing with a kind of Hansel and Gretel-style wooden shed.

0:04:47 > 0:04:52Birds tweeting, dappled sunlight, bluebells.

0:04:52 > 0:04:53I mean, yeah, it's lovely.

0:04:53 > 0:04:57Ah, rural bliss.

0:04:57 > 0:04:59This part of the world really is very special

0:04:59 > 0:05:04and having your own mini Devonshire woodland turns this slightly mouldy

0:05:04 > 0:05:10old chalet bungalow into something a bit more, well, romantic.

0:05:10 > 0:05:12Ah, how lovely.

0:05:13 > 0:05:17Well, it would be were it not for the horror that quite possibly

0:05:17 > 0:05:19awaits anyone that buys this place.

0:05:19 > 0:05:24Is the state of the property itself? No, but that certainly isn't great.

0:05:24 > 0:05:28Is it the fact that you'd quite like to extend out here

0:05:28 > 0:05:30and it isn't quite suitable?

0:05:30 > 0:05:32No. Nice view.

0:05:32 > 0:05:34Is it the fact that ideally

0:05:34 > 0:05:38you'd want the bungalow to be that way a bit?

0:05:38 > 0:05:41Um, no, not that.

0:05:41 > 0:05:43Lovely open outlook.

0:05:43 > 0:05:45Is the fact that there might be issues underneath here or

0:05:45 > 0:05:48power head cables above? No, it's not that. It's that view!

0:05:48 > 0:05:50Not the view itself

0:05:50 > 0:05:54but the fact that local knowledge is a really important thing

0:05:54 > 0:05:58because it tells you that that view looks out across a floodplain

0:05:58 > 0:06:02and in fact, this whole property is in that floodplain.

0:06:02 > 0:06:07So, there is a one in 100 chance every year that you'll get

0:06:07 > 0:06:10a little bit closer to the waterfront than you would like.

0:06:10 > 0:06:16# Too close for comfort now. #

0:06:16 > 0:06:20We have all seen the devastation that flooding can cause

0:06:20 > 0:06:24over the last few years, so this is now a major factor

0:06:24 > 0:06:26when you look at properties.

0:06:26 > 0:06:30In 2012 this field was turned into a lake and while

0:06:30 > 0:06:35this house remained dry, many local houses and businesses did not

0:06:35 > 0:06:37so definitely something to factor in.

0:06:39 > 0:06:43We asked a local agent along to see what he thought about it all.

0:06:44 > 0:06:50It's pretty tired, sadly, and obviously in need of some TLC.

0:06:50 > 0:06:54And particularly with regard to heating systems and wiring etc,

0:06:54 > 0:06:57it's very dated and needs quite a lot of money spending on it

0:06:57 > 0:06:59to bring it up to a good modern standard.

0:06:59 > 0:07:02So what about forgetting the refurbishment

0:07:02 > 0:07:04and raising the place to the ground?

0:07:04 > 0:07:06It's a lovely plot.

0:07:06 > 0:07:10Interesting shaped plot so if you let an architect run wild here,

0:07:10 > 0:07:13you could end up with a really special modern property,

0:07:13 > 0:07:15taking advantage of the outlook.

0:07:15 > 0:07:18Probably a reverse-level property whereby the reception rooms are

0:07:18 > 0:07:23upstairs so you take advantage of the views in all directions here.

0:07:23 > 0:07:26Hmm. But there is a bit of an elephant in the room here.

0:07:26 > 0:07:27Namely the flooding.

0:07:27 > 0:07:31What does the agent think about that particular problem?

0:07:31 > 0:07:33It is an issue. However, there are plans

0:07:33 > 0:07:36to carry out works further down the valley

0:07:36 > 0:07:39which should alleviate that problem if they come to fruition.

0:07:39 > 0:07:40But certainly there is a risk here

0:07:40 > 0:07:44and anybody refurbishing this property or indeed, knocking down

0:07:44 > 0:07:47and building a new property would have to take that into account.

0:07:47 > 0:07:48But it's all doable.

0:07:49 > 0:07:53Would this house - guided at £200-250,000 -

0:07:53 > 0:07:54be worth all the hassle

0:07:54 > 0:07:58that either a full refurbishment or a rebuild would entail?

0:07:59 > 0:08:01If this were renovated to a good standard in its

0:08:01 > 0:08:03present configuration,

0:08:03 > 0:08:06you're looking just a shade under the 400,000 mark.

0:08:06 > 0:08:08If you were to knock the building down,

0:08:08 > 0:08:12put in a really nice four-bedroom detached property,

0:08:12 > 0:08:17very high spec etc, you're certainly looking 600+.

0:08:18 > 0:08:20Well, it's certainly a great location

0:08:20 > 0:08:22and a lovely part of the world.

0:08:22 > 0:08:26However, I don't think the house quite does it justice.

0:08:26 > 0:08:30In terms of what to do to it, I'm really not so sure.

0:08:30 > 0:08:32Let's hope whoever bought it has some ideas.

0:08:32 > 0:08:35Let's find out who that was when it went under the hammer.

0:08:38 > 0:08:41135 is the lot number.

0:08:41 > 0:08:43Anybody want to start at 225?

0:08:43 > 0:08:47220? 210 or 200?

0:08:47 > 0:08:48No? OK.

0:08:49 > 0:08:52So, it was unsold in the room.

0:08:52 > 0:08:54# I need someone

0:08:56 > 0:09:00# Someone to love me... #

0:09:00 > 0:09:04But it was bought straight after the auction by Adam and Darren

0:09:04 > 0:09:07for £204,000.

0:09:07 > 0:09:11If you're thinking they are familiar faces on the show, you'd be right.

0:09:11 > 0:09:16Remember that wonky house in Paignton back in August 2012?

0:09:16 > 0:09:18Well, that was them.

0:09:18 > 0:09:21I met them back at the house to find out why they were

0:09:21 > 0:09:23so keen on another challenge.

0:09:23 > 0:09:27- Adam, Darren, great to see you both again.- Hello.- Hi.

0:09:27 > 0:09:31- You're still standing then. - Yeah, just about.- Just about.

0:09:31 > 0:09:34So, the last time we met you were embarking on...well,

0:09:34 > 0:09:36a challenge, weren't you?

0:09:36 > 0:09:38The House Of Horrors, we've come to call it.

0:09:38 > 0:09:41We managed to keep the roof and the back wall, fortunately.

0:09:41 > 0:09:46- The rest had to be demolished. It was bowing and underpinning.- Right.

0:09:46 > 0:09:49- New bedrooms, bathrooms, kitchen. - Kept the roof and the back wall.

0:09:49 > 0:09:51Basically, the rest of it so it is a new house.

0:09:51 > 0:09:53Let's move on to this place.

0:09:53 > 0:09:54Yes. House Of Horrors 2.

0:09:54 > 0:09:57THEY LAUGH

0:09:57 > 0:09:59- The sequel.- Yeah, the sequel, yeah.

0:09:59 > 0:10:04- Pretty much, yeah.- Well, you know, it has a few issues.- It does, yeah.

0:10:04 > 0:10:07So, why did you buy them? Was it just the price?

0:10:07 > 0:10:10Well, it's the location.

0:10:10 > 0:10:13If you can get over the hurdle of the flooding or the floodplain,

0:10:13 > 0:10:15it's, you know, fantastic.

0:10:15 > 0:10:17OK. Tell me how you're going to get over it.

0:10:17 > 0:10:20Well, this house is obviously pretty nasty so we're thinking...

0:10:20 > 0:10:23- Our sort of first plan is to flatten it.- Right.

0:10:23 > 0:10:25Raise the whole plot and, basically,

0:10:25 > 0:10:28build a bigger house further up the plot.

0:10:28 > 0:10:31Historically the floodwaters have literally lapped at the edge.

0:10:31 > 0:10:36The neighbouring property has been high and dry so we're thinking

0:10:36 > 0:10:39if we're a metre or so higher,

0:10:39 > 0:10:43then hopefully that will be suffice with the Environment Agency.

0:10:43 > 0:10:46You've got the road so you can't move it too far towards the road, can you?

0:10:46 > 0:10:49- No, we want to go...- That way.

0:10:49 > 0:10:53Take advantage of the garden over there, put the house towards

0:10:53 > 0:10:56the back, close to the road but lift it slightly.

0:10:56 > 0:10:58And then, obviously, what's left here could then be

0:10:58 > 0:11:01more garden and amenity space.

0:11:01 > 0:11:03'And planning will be stringent. In particular,

0:11:03 > 0:11:07'the Environment Agency have certain criteria that must be met

0:11:07 > 0:11:10'for new builds built on or near floodplains.

0:11:10 > 0:11:13'Some are just recommendations such as,

0:11:13 > 0:11:16'to make the bulk of the living accommodation on the first floor

0:11:16 > 0:11:20'and just have garages and utility spaces on the ground floor.

0:11:20 > 0:11:24'Others are requirements such as, the height the electrical sockets

0:11:24 > 0:11:28'are cited, the type of flooring used and the materials required.

0:11:28 > 0:11:31'All of which will be need to be incorporated into any design

0:11:31 > 0:11:33'before planning would be approved.'

0:11:33 > 0:11:37So what happens now then? What's the next stage?

0:11:37 > 0:11:40Well, site clearance and the various surveys that are needed.

0:11:40 > 0:11:45Habitat surveys and starting compiling what the planners need

0:11:45 > 0:11:46but, most notably,

0:11:46 > 0:11:50what they call a site-specific flood risk assessment

0:11:50 > 0:11:52which will then dictate what we can and can't do,

0:11:52 > 0:11:54and speaking to some architects.

0:11:54 > 0:11:57The plus side here, of course, is if you get it right,

0:11:57 > 0:12:00you are into telephone numbers in terms of profit, aren't you?

0:12:00 > 0:12:03Yeah, we'd hope to get a reasonable return.

0:12:03 > 0:12:05Talk me through the numbers.

0:12:05 > 0:12:08We're looking at something maybe of 3,000 square feet

0:12:08 > 0:12:14and we want to get something that we could possibly sell for pushing 700.

0:12:14 > 0:12:20- OK. So build costs on that would be what, about 200-300,000?- About 300.

0:12:20 > 0:12:23- Yeah, 300...to do it. - High quality.- Yeah.

0:12:23 > 0:12:27- Potentially we could walk away with about 100 each.- Right.- But...

0:12:27 > 0:12:31In an ideal world, if we walk away with 50 each, wouldn't complain.

0:12:31 > 0:12:34And then the absolute fallback is to take this property

0:12:34 > 0:12:39and just simply extend it and do something a bit more modest.

0:12:39 > 0:12:41It's not going to happen overnight, this one, is it?

0:12:41 > 0:12:45- A good 18 months project, I think. - Well, listen, congratulations.

0:12:45 > 0:12:49- Good luck.- Thanks, Martin. - Thanks so much. Cheers.

0:12:49 > 0:12:52- And we wait with great anticipation to see how you get on.- Excellent.

0:12:52 > 0:12:53- Thanks.- Look forward to it. Cheers.

0:12:55 > 0:13:01So, it's House Of Horrors, part two the sequel for Adam and Darren.

0:13:01 > 0:13:04They do seem to take them on, don't they?

0:13:04 > 0:13:08First it was cracks and subsidence and now it's flooding.

0:13:09 > 0:13:13Still...there are big profits to be made

0:13:13 > 0:13:19if they can get over the odd hurdle or three. How will they get on?

0:13:19 > 0:13:23I can't wait to find out. You can see later in the show.

0:13:27 > 0:13:30Regeneration is a real buzz word

0:13:30 > 0:13:33when you're deciding where to invest in property.

0:13:33 > 0:13:36And there are few areas where this is more applicable than

0:13:36 > 0:13:38North London's Tottenham.

0:13:38 > 0:13:42Now, ambitious plans are already underway such as a brand-new

0:13:42 > 0:13:46football stadium, which will also include a supermarket

0:13:46 > 0:13:49and 275 brand-new homes.

0:13:49 > 0:13:53However, this is just the tip of the iceberg.

0:13:54 > 0:14:00By 2025 the council aim to bring more than 5,000 jobs,

0:14:00 > 0:14:0210,000 new homes and nearly

0:14:02 > 0:14:07a million square foot of employment space to the area.

0:14:07 > 0:14:10If you're after peace and quiet and parking right outside

0:14:10 > 0:14:14your front door, this will not be the location for you.

0:14:14 > 0:14:18But if you want shops and transport links right on your doorstep,

0:14:18 > 0:14:21well, the one-bedroom ground floor flat I'm here to see

0:14:21 > 0:14:24could be right up your street.

0:14:24 > 0:14:26Now, the guide price was £110,000

0:14:26 > 0:14:29and it's just through this doorway here.

0:14:35 > 0:14:38The outside may be a bit dated and humble,

0:14:38 > 0:14:39but the communal areas are kept well

0:14:39 > 0:14:43and the flat's entrance is a little away from the road noise.

0:14:44 > 0:14:46And straight into the flat.

0:14:46 > 0:14:49It's not what you'd normally expect, walking into a kitchen

0:14:49 > 0:14:54but don't forget, we are in London here and what you see is a really

0:14:54 > 0:14:58nice shiny new flat that looks recently decorated.

0:14:58 > 0:15:01I mean, look at this, brand-new kitchen.

0:15:01 > 0:15:05So what it lacks here is natural daylight and, I suppose,

0:15:05 > 0:15:08well, it gives you a little bit back by that up there but it

0:15:08 > 0:15:10could've been a little bit bigger.

0:15:10 > 0:15:12Off the kitchen you've got a bathroom but again,

0:15:12 > 0:15:14all singing and dancing.

0:15:14 > 0:15:16Really nice shower, new floor tiles.

0:15:16 > 0:15:20Up a little step and you've got a bedroom or a lounge, I suppose,

0:15:20 > 0:15:22with a door leading off.

0:15:22 > 0:15:24And through into here a bedroom or a lounge.

0:15:24 > 0:15:27Now, to improve this what I would do would be to try

0:15:27 > 0:15:29and increase the natural daylight.

0:15:29 > 0:15:34I'd take this out so you'd get the vision of the lovely window there

0:15:34 > 0:15:36and therefore, it would just create a much better feel

0:15:36 > 0:15:38walking through that front door.

0:15:38 > 0:15:42It would be very inexpensive to do so and it would really add

0:15:42 > 0:15:43so much more to this flat.

0:15:45 > 0:15:48Now the flowery room would then become your lounge with an open plan

0:15:48 > 0:15:51aspect to the kitchen, with next door becoming your bedroom.

0:15:53 > 0:15:57But the problem here is, well, when this building was converted

0:15:57 > 0:16:02into three flats, the planning permission was never ever granted.

0:16:02 > 0:16:05Now, you could apply for retrospective planning

0:16:05 > 0:16:07but there is no guarantee you'll get it.

0:16:07 > 0:16:11And this is potentially a very big issue that will have an impact

0:16:11 > 0:16:16on the value and mortgage ability of this one-bed property.

0:16:16 > 0:16:21And for that matter, the flats above it. But it's not all bad news.

0:16:21 > 0:16:22Well, a bit of good news.

0:16:22 > 0:16:24This little London pad does have outside space,

0:16:24 > 0:16:27which is such a bonus.

0:16:27 > 0:16:30It doesn't have such an aspirational view.

0:16:30 > 0:16:33This concrete wall!

0:16:33 > 0:16:36I would start off by putting some nice white paint on that

0:16:36 > 0:16:38just to...just to lift it up a little bit.

0:16:38 > 0:16:41But you could hang your washing out here, you can get a breath of

0:16:41 > 0:16:45fresh air and on a summer's evening, hey, you can step outside.

0:16:45 > 0:16:48We called in a local property expert to get the benefits

0:16:48 > 0:16:51of his specialist knowledge.

0:16:51 > 0:16:53I think it's a great location for the stations.

0:16:53 > 0:16:54You've got Bruce Grove on the left

0:16:54 > 0:16:56and you've got Tottenham Hill on the right.

0:16:56 > 0:16:59But downsides I would say is mainly the noise

0:16:59 > 0:17:03cos you're on a busy road and the parking... There's no parking.

0:17:03 > 0:17:07So what kind of money could this property, guided at 110 grand,

0:17:07 > 0:17:11be worth if you sorted out the planning and refurbished it?

0:17:11 > 0:17:12Regards to the sale price,

0:17:12 > 0:17:16I believe this flat would achieve round about the £200,000 mark.

0:17:16 > 0:17:21And regards to the rental side, I believe that £950 is

0:17:21 > 0:17:23achievable per calendar month.

0:17:23 > 0:17:29Well, to be or not to be a flat? That is the burning question here.

0:17:29 > 0:17:31If you can get retrospective planning, well,

0:17:31 > 0:17:33this could be good value for money.

0:17:33 > 0:17:37But if not, well, it could be a very tricky investment.

0:17:37 > 0:17:39Who was prepared to take on the challenge?

0:17:39 > 0:17:41Let's head to auction and find out.

0:17:41 > 0:17:48Lot number 50. What shall we say? Is it worth 110 to you?

0:17:48 > 0:17:51105. 105 is bid, thank you.

0:17:51 > 0:17:53106, do I see?

0:17:53 > 0:17:58106, 107, 108, 109, 110, 111.

0:17:58 > 0:18:05112? 112. 113, 114, 115, 116, 117, they were first.

0:18:05 > 0:18:11118, 119, 120, 121. 122. No?

0:18:11 > 0:18:14121, back of the room for the first.

0:18:14 > 0:18:17At 121 for the second,

0:18:17 > 0:18:21third and final time at £121,000.

0:18:21 > 0:18:24That's yours at £121,000.

0:18:24 > 0:18:26The top bid came from Annesley,

0:18:26 > 0:18:30a former political adviser and Parliamentary candidate.

0:18:33 > 0:18:36His bidding campaign got him first past the post

0:18:36 > 0:18:40when the hammer fell at £121,000.

0:18:40 > 0:18:44Now he has decided on moving from politics to property.

0:18:44 > 0:18:49A fun fact about Annesley - as a hobby, he collects TV theme tunes

0:18:49 > 0:18:54so brace yourself, we're going to be hearing a lot of those later on.

0:18:54 > 0:18:56- Congratulations, Annesley. - Thank you very much.

0:18:56 > 0:18:58So what I want to know is, what was

0:18:58 > 0:19:00your inspiration behind you wanting to buy this flat in Tottenham?

0:19:00 > 0:19:03Tottenham is undergoing a huge amount of regeneration,

0:19:03 > 0:19:06especially in light of the 2011 riots,

0:19:06 > 0:19:10a lot of money is being pumped into here from the Mayor's budget

0:19:10 > 0:19:13and also from the local council so I think it's a good opportunity

0:19:13 > 0:19:15to invest in the area which is improving.

0:19:15 > 0:19:18And a lot of first-time buyers also investing in this area because

0:19:18 > 0:19:22it will grow in desirability and in value.

0:19:22 > 0:19:24Do you think in a way that the riots have prompted the changes here?

0:19:24 > 0:19:27Because I've known this area for so many years

0:19:27 > 0:19:30and it's promised to be on the up, nothing really has happened.

0:19:30 > 0:19:34I think it has focused minds and I think it's actually acted

0:19:34 > 0:19:37as a catalyst for something to happen sooner rather than later.

0:19:37 > 0:19:40A lot of investment has been allocated here, there are big plans

0:19:40 > 0:19:44so I think it's actually helped things improve massively.

0:19:44 > 0:19:47Why this property? Because I know it comes with a few problems.

0:19:47 > 0:19:50Its central location, it's very close to the station.

0:19:50 > 0:19:53I like the fact that it's a one-bedroom property

0:19:53 > 0:19:58and I like the actual space so I think it does have potential.

0:19:58 > 0:20:00But the planning problems, tell me more.

0:20:00 > 0:20:06Yeah. So, I discovered when I did my homework that the last time

0:20:06 > 0:20:10any sort of planning was applied for in this building was in 1950.

0:20:10 > 0:20:13And since then there's been no planning applied for whatsoever

0:20:13 > 0:20:17to convert into residential use, and that's something that's going

0:20:17 > 0:20:19to have to be addressed in the next few weeks.

0:20:19 > 0:20:22Do you think that may pose problems for you?

0:20:22 > 0:20:23I mean, do you have a plan B?

0:20:23 > 0:20:26I don't really have a plan B because I always assume that plan A

0:20:26 > 0:20:27is going to work.

0:20:27 > 0:20:31'Well, you can't knock Annesley for his optimism but the last time

0:20:31 > 0:20:34'a planning application was entered for this building it was to become

0:20:34 > 0:20:37'a children's clothes manufacturers in the '50s.

0:20:37 > 0:20:41'And applying for a change of use isn't always easy

0:20:41 > 0:20:44'so I'm here with Huey Lewis when he says...'

0:20:44 > 0:20:48# Well, it's time for me to face up to reality

0:20:48 > 0:20:50# Plan B! #

0:20:50 > 0:20:52Yep, always have a plan B.

0:20:52 > 0:20:56Also, if it comes to selling, some mortgage lenders won't be keen

0:20:56 > 0:20:58on the close proximity of fast food outlets

0:20:58 > 0:21:02so this might turn out to be a little former shop of horrors.

0:21:04 > 0:21:07So, how much homework did you actually do with this property?

0:21:07 > 0:21:08Obviously, it didn't put you off

0:21:08 > 0:21:10- finding out there were planning problems.- Yes.

0:21:10 > 0:21:12I did a little bit.

0:21:12 > 0:21:14Probably not as much as I should've done but I did...

0:21:14 > 0:21:16I did as much as I thought I could at the time.

0:21:16 > 0:21:21Clearly, with it being a converted commercial premises, it limits the

0:21:21 > 0:21:27borrowing capabilities and that is probably why it ended up at auction.

0:21:27 > 0:21:29So if we get the planning and if we finish the flat off,

0:21:29 > 0:21:32then I think it would certainly have more potential.

0:21:32 > 0:21:35So this was the right flat for you. It came up at the right price.

0:21:35 > 0:21:39As a first-time project this is the sort of level I was looking at.

0:21:39 > 0:21:41So, the kind of size and price I was looking at.

0:21:41 > 0:21:44Are there any tweaks you might want to do in here?

0:21:44 > 0:21:48- Because it's quite unusual walking straight into the kitchen.- It is.

0:21:48 > 0:21:52It is actually quite a large kitchen for the flat and so I may look at...

0:21:52 > 0:21:54Actually, I would leave the kitchen as it is,

0:21:54 > 0:21:55maybe put a washing machine in there.

0:21:55 > 0:21:58The thing for me is, I would like to see the kitchen and lounge

0:21:58 > 0:22:01more integrated, become one room.

0:22:01 > 0:22:03Yes, at the moment it's a bit disjointed

0:22:03 > 0:22:04and layout is a bit awkward

0:22:04 > 0:22:07and I think that's another thing that may put some people off

0:22:07 > 0:22:10but those are things that can be rectified fairly easily.

0:22:10 > 0:22:13I gather that the walls are not supporting

0:22:13 > 0:22:17so they should be able to be adjusted fairly easily.

0:22:17 > 0:22:20I mean, how about changing some of the rooms over? That could be

0:22:20 > 0:22:22the lounge, that could be the bedroom, swap them around,

0:22:22 > 0:22:25open up this wall here to let the natural light flow through.

0:22:25 > 0:22:28Yes, that is something I also thought about.

0:22:28 > 0:22:30'You know, I actually believe Annesley.

0:22:30 > 0:22:34'Maybe he's more cut out for property development than politics!

0:22:35 > 0:22:38Ooh, and do you know, Adele comes from Tottenham?

0:22:38 > 0:22:40Just thought I'd mention it.

0:22:40 > 0:22:41# Rumour has it

0:22:41 > 0:22:42# Rumour

0:22:42 > 0:22:44- # Rumour has it - Rumour

0:22:44 > 0:22:45# Rumour has it. #

0:22:47 > 0:22:50- Now, I know you have a political background.- Mm-hm.

0:22:50 > 0:22:53Tell me about that and why you've decided to tiptoe into property.

0:22:53 > 0:22:55OK. So, I worked as a political adviser,

0:22:55 > 0:22:57I stood as a candidate myself for Parliament

0:22:57 > 0:23:01and I was involved in politics for a very long time.

0:23:01 > 0:23:03I thought it time to take a break from that

0:23:03 > 0:23:05and do something for myself.

0:23:05 > 0:23:09And the great thing about this avenue is that I can

0:23:09 > 0:23:12manage my own time, I've got the flexibility

0:23:12 > 0:23:15and I can still do my charitable projects that I'm involved in.

0:23:15 > 0:23:19And I'd love to make a success of this and do it for a few years

0:23:19 > 0:23:21and maybe come back to politics in the future.

0:23:21 > 0:23:24So now you have it. What is your aim?

0:23:24 > 0:23:29My aim is to finish it off, possibly change the layout, get the planning

0:23:29 > 0:23:32and then make a decision whether to sell it on or rent it out.

0:23:32 > 0:23:35What are you going to be like if you do have to roll your sleeves up

0:23:35 > 0:23:38and slap some paint on the walls and actually get your hands dirty?

0:23:38 > 0:23:40I'm no good at that at all. I'm no good at that, no.

0:23:40 > 0:23:42- I thought you might have said that! - That's right.

0:23:42 > 0:23:45I can't even draw a straight line so that's not going to happen.

0:23:45 > 0:23:48I rely on reliable tradesman.

0:23:48 > 0:23:49So your background in politics

0:23:49 > 0:23:52did not teach you how to draw in a straight line and paint walls.

0:23:52 > 0:23:54No. Definitely not, no.

0:23:54 > 0:23:55So may I ask your budget?

0:23:55 > 0:23:58How much have you got to spend on this property?

0:23:58 > 0:24:00I think including the planning application,

0:24:00 > 0:24:03- I'd be looking at between £2-4,000. - Which is fantastic!

0:24:03 > 0:24:05It's very, very rare I ever meet

0:24:05 > 0:24:08anybody that says between 2 and £4,000.

0:24:08 > 0:24:09I can imagine, yes.

0:24:09 > 0:24:11There's not a huge amount that needs doing here.

0:24:11 > 0:24:15The main cost, actually, will be the administrative side, the planning.

0:24:15 > 0:24:18In terms of the physical property, there isn't a huge amount

0:24:18 > 0:24:19to be spent here.

0:24:19 > 0:24:23So, what's your timescale for this?

0:24:23 > 0:24:26The planning is somewhat in the hands of the council

0:24:26 > 0:24:29and so the timing is slightly unpredictable

0:24:29 > 0:24:32but I would've thought 6-12 weeks.

0:24:32 > 0:24:34- Good luck with the outcome. - Thank you.- I hope it all works out.

0:24:34 > 0:24:37- Lovely to meet you today. - Lovely to meet you, thank you.

0:24:38 > 0:24:41So, Annesley has just started property developing and, well,

0:24:41 > 0:24:44he's taken on a bit of a risky first project.

0:24:44 > 0:24:46I just hope that planning permission

0:24:46 > 0:24:49doesn't prove too much of an obstacle for him.

0:24:49 > 0:24:53You can join me later on in the programme to find how he gets on.

0:24:54 > 0:24:57DION: Coming up, I might be a little light on information

0:24:57 > 0:24:58in Alvaston, Derby.

0:24:58 > 0:25:02I can't really tell you any more than that without going inside

0:25:02 > 0:25:04and I'm not doing that.

0:25:06 > 0:25:08And when is a flat not a flat?

0:25:08 > 0:25:12Annesley's having problems in Tottenham, London.

0:25:12 > 0:25:15It was advised that we hold fire for the moment.

0:25:17 > 0:25:20Back now to the picturesque Devonshire countryside

0:25:20 > 0:25:24and the village of Otterton where I visited this three-bedroom house

0:25:24 > 0:25:27with views that did not disappoint.

0:25:27 > 0:25:30Unfortunately though, the good news ended there.

0:25:30 > 0:25:34It needs sorting out and this whole place has just that feel

0:25:34 > 0:25:37of needing a bit of...yeah, tender loving care.

0:25:37 > 0:25:39Spacious but definitely downtrodden,

0:25:39 > 0:25:42this house was also suffering quite seriously from damp

0:25:42 > 0:25:46which leads me onto the next topic for discussion.

0:25:46 > 0:25:49That view looks out across a floodplain and, in fact,

0:25:49 > 0:25:53this whole property is in that floodplain.

0:25:53 > 0:25:57So there is a one in 100 chance every year that you'll get

0:25:57 > 0:26:01a little bit closer to the waterfront than you would like.

0:26:02 > 0:26:04# Go look at the weather

0:26:06 > 0:26:10# I believe there's going to be a flood. #

0:26:10 > 0:26:13That was very worrying indeed.

0:26:13 > 0:26:17But it didn't deter Adam and Darren who have a little bit of experience

0:26:17 > 0:26:18with nightmare properties,

0:26:18 > 0:26:22having been on the show before with a troubled house in Paignton.

0:26:22 > 0:26:24They paid £204,000 for this one

0:26:24 > 0:26:28and had a simple solution for this property's woes.

0:26:28 > 0:26:31- Our sort of first plan is to flatten it.- Right.

0:26:31 > 0:26:32Raise the whole plot

0:26:32 > 0:26:35and basically build a bigger house further up the plot.

0:26:35 > 0:26:38Having done their local research, they found that the floodwaters

0:26:38 > 0:26:42had in the past come as close as lapping at the back door.

0:26:42 > 0:26:47So, moving over into the spacious garden and lifting it slightly,

0:26:47 > 0:26:50would make the new house much more secure for years to come.

0:26:50 > 0:26:56They plan to do it with a budget of £300,000 and in 18 months.

0:26:56 > 0:27:01So how did they get on? We returned over 2.5 years later to find out.

0:27:01 > 0:27:04# I like the way you move

0:27:09 > 0:27:12# I like the way you move... #

0:27:12 > 0:27:13Wow!

0:27:13 > 0:27:17The old house has been flattened and by moving the site as promised

0:27:17 > 0:27:20there is now a fabulous four-bedroom,

0:27:20 > 0:27:23and hopefully, future-proofed house.

0:27:23 > 0:27:25This house optimises modern living,

0:27:25 > 0:27:29with a spacious open plan kitchen and diner.

0:27:29 > 0:27:33With floor-to-ceiling windows, the inside space flows out onto

0:27:33 > 0:27:37the solid oak decking, complete with hot hub,

0:27:37 > 0:27:40and truly makes the most of the spectacular country views.

0:27:41 > 0:27:45While water in your hot tub might be welcome, the water table

0:27:45 > 0:27:49with this site was a real issue, so how did that pan out?

0:27:49 > 0:27:52Yeah. We worked with the Environment Agency

0:27:52 > 0:27:54and various different planning consultants

0:27:54 > 0:27:56and what we did in the end, we arranged for the house to be

0:27:56 > 0:28:01knocked down, moved further up the garden and it's 600mm higher

0:28:01 > 0:28:04than the original finished floor level of the original house.

0:28:04 > 0:28:07So, we're pretty much covered for any flooding.

0:28:07 > 0:28:12# Oh, you got the feeling that I want to feel. #

0:28:16 > 0:28:20DANCE MUSIC BUILDS TEMPO

0:28:24 > 0:28:27This house has been finished to the highest spec,

0:28:27 > 0:28:30from the integrated appliances in the kitchen to the heating system

0:28:30 > 0:28:33which can be controlled by phone or tablet.

0:28:35 > 0:28:39Next door is the first of four bedrooms complete with an en suite

0:28:39 > 0:28:42and is, again, finished to the highest possible standard.

0:28:42 > 0:28:45To the left of that there is a small office.

0:28:45 > 0:28:49# You give me that feeling, you give me that feeling... #

0:28:49 > 0:28:52Heading upstairs to the additional three bedrooms,

0:28:52 > 0:28:55the master one here being the largest of the three with

0:28:55 > 0:28:56a balcony overlooking the garden

0:28:56 > 0:29:00and, again, that priceless rural landscape.

0:29:00 > 0:29:04Aside from the luxury stand-alone bath, there's also an en suite

0:29:04 > 0:29:07fitted with contemporary stainless steel fittings.

0:29:10 > 0:29:15Next door is the third bedroom - a bit smaller than the master

0:29:15 > 0:29:18but with those huge windows, it's again, all about the view.

0:29:19 > 0:29:22Along the hallway is the last bedroom

0:29:22 > 0:29:25and the smallest of the four but perfect for the kids.

0:29:25 > 0:29:28# Real, real love...

0:29:28 > 0:29:31The final room up here is the master bathroom.

0:29:31 > 0:29:33Its light contemporary finish

0:29:33 > 0:29:37is fitting for this breathtaking family home.

0:29:37 > 0:29:40The big surprise is that this beautiful house isn't

0:29:40 > 0:29:43a development project after all.

0:29:43 > 0:29:44Darren stepped aside

0:29:44 > 0:29:48when Adam decided he wanted to build it for himself and live in.

0:29:48 > 0:29:52He has designed it quite beautifully to his own specifications.

0:29:52 > 0:29:57However, getting to this stage has had its frustrations.

0:29:57 > 0:29:59Yeah, the planning process was actually quite difficult.

0:29:59 > 0:30:01There were problems with it being

0:30:01 > 0:30:04an area of outstanding beauty and a conservation area.

0:30:04 > 0:30:08The local authority didn't really want us to put anything too big here

0:30:08 > 0:30:11so it did take a fair bit of time and wrangling backwards and forwards

0:30:11 > 0:30:13in design and so on but in the end

0:30:13 > 0:30:15I got pretty much what I was looking for.

0:30:15 > 0:30:20An Area of Outstanding Natural Beauty designation means that there

0:30:20 > 0:30:25are conservation rules due to its significant landscape value.

0:30:25 > 0:30:28There are nearly 50 such areas across Britain

0:30:28 > 0:30:31so you have to bear in mind that there could be complex

0:30:31 > 0:30:35planning issues similar to those in national parks.

0:30:35 > 0:30:38You have a lovely place to live in but it takes a lot of rules

0:30:38 > 0:30:40to keep it lovely.

0:30:40 > 0:30:42That planning process did cost time.

0:30:42 > 0:30:46In fact, Adam couldn't get started on this project for nine months

0:30:46 > 0:30:49while designs were being scrutinised by the planners

0:30:49 > 0:30:53so I am guessing he didn't stick to that 18-month timescale.

0:30:53 > 0:30:56Build time now has been about 14-16 months from when we

0:30:56 > 0:30:58actually got planning so...

0:30:59 > 0:31:01..a bit longer than I'd like.

0:31:02 > 0:31:07So, with planning, that took this project almost 2.5 years to complete

0:31:07 > 0:31:09but it's clear that Adam wanted to get it right

0:31:09 > 0:31:14and, with the help of his builders, I'd say he did an excellent job

0:31:14 > 0:31:16and to an incredibly high standard.

0:31:16 > 0:31:19but that high spec must have come at a high price.

0:31:20 > 0:31:23Yeah, originally when it first came out we sort of put a figure

0:31:23 > 0:31:26thinking about 300,000, with the plot for 200,000,

0:31:26 > 0:31:29and potentially sell for 650, 700.

0:31:29 > 0:31:34It's actually worked out, I've nearly spent about 440 on the build.

0:31:34 > 0:31:37Quite a bit more than I thought I'd spend but we'll see what it's worth.

0:31:37 > 0:31:39I think there's a little bit of profit in it.

0:31:39 > 0:31:42But it might just be a little, as he said, because that takes

0:31:42 > 0:31:47Adam's total spend on this project to around £640,000.

0:31:50 > 0:31:55So, we invited along two local estate agents to find out

0:31:55 > 0:31:59if Adam's luxury home could turn a profit or end up being

0:31:59 > 0:32:01a very expensive labour of love.

0:32:02 > 0:32:05Well, this is the first time I've been here and I have to say

0:32:05 > 0:32:08it's an absolutely fabulous property.

0:32:08 > 0:32:13The layout is absolutely amazing in this property.

0:32:13 > 0:32:16It's very bright, it's spacious, it's open

0:32:16 > 0:32:20and it's all featured around the views, in particular

0:32:20 > 0:32:24cos you've got the Otter Valley there which virtually every window

0:32:24 > 0:32:26you look out of you can see straight down through.

0:32:26 > 0:32:30My initial impression of the property is it's quite outstanding.

0:32:30 > 0:32:33The design is very interesting

0:32:33 > 0:32:36but the owner has driven it to a different level with

0:32:36 > 0:32:40the quality of fixtures and fittings which I have to say,

0:32:40 > 0:32:43it's many years since I've seen a property of this quality.

0:32:43 > 0:32:44It's outstanding.

0:32:44 > 0:32:47Regarding the flooding issue here, the owner has given that

0:32:47 > 0:32:51great thought and I would imagine that it's well protected now.

0:32:51 > 0:32:54Although in some people's mind that might be a little bit of concern,

0:32:54 > 0:32:56but I think the current owner,

0:32:56 > 0:32:59what he's done here will allay peoples fears.

0:32:59 > 0:33:03All very positive indeed so let's get those values and see

0:33:03 > 0:33:06if Adams luxury home will come with a luxury price tag.

0:33:07 > 0:33:13I would expect it to achieve somewhere in the region of £850,000.

0:33:13 > 0:33:19We would suggest a guide price of £900,000.

0:33:19 > 0:33:22Um, yeah, I thought about sort of 900 maybe.

0:33:22 > 0:33:25875, 900 so, yeah, I'm pretty happy with that.

0:33:25 > 0:33:27I'd be pretty happy too as that's

0:33:27 > 0:33:33a whopping potential pre-tax profit of £256,000.

0:33:33 > 0:33:37But Adam plans to hold onto it for now and I can't blame him really.

0:33:44 > 0:33:46Derby has many things to be proud of.

0:33:46 > 0:33:49It was a major player in the Industrial Revolution.

0:33:52 > 0:33:56And it's still an engineering powerhouse today.

0:33:56 > 0:34:00Manufacturers like Rolls-Royce and Toyota help this city produce

0:34:00 > 0:34:03a vast amount of cars every year.

0:34:03 > 0:34:07Just south of the city centre is the suburb of Alvaston.

0:34:07 > 0:34:09With great commuter links to the city,

0:34:09 > 0:34:12it's always been a popular residential area.

0:34:12 > 0:34:13The property I'm here to see

0:34:13 > 0:34:17isn't your usual Homes Under The Hammer lot.

0:34:17 > 0:34:20It's this old commercial unit, and as you can see,

0:34:20 > 0:34:23it hasn't been loved for some time.

0:34:23 > 0:34:28That's probably why it's got a guide price of just £15,000.

0:34:28 > 0:34:29I'm going to take a look inside.

0:34:33 > 0:34:35OK.

0:34:35 > 0:34:36Ah.

0:34:36 > 0:34:37From...

0:34:37 > 0:34:41From what I can see, I don't really want to be going any further.

0:34:41 > 0:34:47The ceiling is coming in. There's holes in the floorboards.

0:34:47 > 0:34:49But what I can see from my safe position

0:34:49 > 0:34:52is a nice big space just there.

0:34:52 > 0:34:55There is a room to the side as well,

0:34:55 > 0:34:58and if I lean in, I can see there's a room towards the back as well.

0:34:58 > 0:35:01But I can't really tell you any more than that

0:35:01 > 0:35:04without going inside, and I'm not doing that.

0:35:06 > 0:35:08Before filming, some local residents

0:35:08 > 0:35:11told us that this may have been the local co-op

0:35:11 > 0:35:14and has probably been empty for the last 20 years.

0:35:16 > 0:35:17I can't say for sure

0:35:17 > 0:35:20if this building is still classified as a shop,

0:35:20 > 0:35:25but what I can tell you is... I'm not going inside.

0:35:25 > 0:35:29# Standing on the outside

0:35:29 > 0:35:31# Looking in... #

0:35:31 > 0:35:33What I can tell you is if you wanted it to be a shop,

0:35:33 > 0:35:35that's classed as A1.

0:35:35 > 0:35:37If you wanted it to be a restaurant or a cafe,

0:35:37 > 0:35:39that's classed as A3.

0:35:39 > 0:35:43Or a residential property, that's classed as C3.

0:35:43 > 0:35:45The list just goes on and on.

0:35:45 > 0:35:47What I would suggest is find out

0:35:47 > 0:35:49what you want to use this property for,

0:35:49 > 0:35:52get your application in and hope for the best.

0:35:53 > 0:35:55That's about it for this property.

0:35:55 > 0:35:57There's really not much more to say.

0:35:59 > 0:36:01Perhaps the auctioneer who sold this property

0:36:01 > 0:36:04has that little bit more to add.

0:36:04 > 0:36:07It's not a busy trading area,

0:36:07 > 0:36:10so my guess is that unless it was a specific trade

0:36:10 > 0:36:15that people would find you for, it's not going to do very well.

0:36:15 > 0:36:17I think more likely it's going to be the subject

0:36:17 > 0:36:21of a planning application to turn it into residential accommodation.

0:36:23 > 0:36:27So, if this was your property, what would you do with it?

0:36:27 > 0:36:29I think my only purpose would be

0:36:29 > 0:36:31to go down the planning application route,

0:36:31 > 0:36:33get residential change of use

0:36:33 > 0:36:37and make it into a one or two-bedroom apartment.

0:36:37 > 0:36:40And what sort of value might these options generate?

0:36:40 > 0:36:42So, if it became a one-bedroom flat,

0:36:42 > 0:36:48it would have a rental value of probably £375 a calendar month.

0:36:48 > 0:36:49Against that income,

0:36:49 > 0:36:55it would have a market value of around £40,000 to £45,000.

0:36:55 > 0:36:57If it became a two-bedroom flat,

0:36:57 > 0:37:00then you would have a monthly rental of something

0:37:00 > 0:37:04in the order of £400, £420 maybe,

0:37:04 > 0:37:07and it would have a market value of about £50,000.

0:37:08 > 0:37:10Having seen the inside of the property,

0:37:10 > 0:37:12there's a whole load of work that needs to be done -

0:37:12 > 0:37:14and that's just to get it safe.

0:37:14 > 0:37:16With that guide price of £15,000,

0:37:16 > 0:37:19you probably thought, "It's too good to be true."

0:37:19 > 0:37:21I think it just might be, in this case.

0:37:21 > 0:37:23Let's see who was up for the challenge

0:37:23 > 0:37:24when it went under the hammer.

0:37:27 > 0:37:28Lot number eight.

0:37:28 > 0:37:32It's a single-storey retail unit with potential.

0:37:32 > 0:37:34Well, the potential to un-board it, for starters.

0:37:34 > 0:37:39Guide is £15,000. Start me at that. 15. Who's got 14?

0:37:39 > 0:37:4314,000. Bid me 12 to move it on. Thank you.

0:37:43 > 0:37:46£12,000 I have as an opening bid. We'll go up in 500s.

0:37:46 > 0:37:48At £12,000

0:37:48 > 0:37:50Despite the initial reluctance of the public to get involved,

0:37:50 > 0:37:53this lot increased in value rapidly

0:37:53 > 0:37:57and we rejoin the auction with the price at £30,000.

0:37:57 > 0:37:5930,000. Is that it?

0:38:00 > 0:38:05Can't tempt you with one more five? At £30,000, we're selling.

0:38:05 > 0:38:09For the first time at 30. Second time at 30.

0:38:09 > 0:38:12500. I thought you might. 31.

0:38:12 > 0:38:1531.5.

0:38:15 > 0:38:1632.

0:38:18 > 0:38:24Is that a definite? £32,000 once, twice. Third chance.

0:38:24 > 0:38:26Sold at 32,000. Thank you.

0:38:28 > 0:38:31It was Jas who successfully bid on the property

0:38:31 > 0:38:34on behalf of his son, Hardy.

0:38:34 > 0:38:37I met up with Hardy for a chat on the pavement

0:38:37 > 0:38:39to find out what his plans were.

0:38:40 > 0:38:42- Hardy, nice to meet you, sir. - Nice to meet you.

0:38:42 > 0:38:43- Congratulations.- Thank you.

0:38:43 > 0:38:45We don't often do our interviews outside,

0:38:45 > 0:38:48but it seems to be a little bit dangerous in there.

0:38:48 > 0:38:52- You haven't started work as yet, so we're a bit safer out here.- Yeah.

0:38:52 > 0:38:53Who found it? Did you find it or...?

0:38:53 > 0:38:55No, my dad actually found it when he went to the auction.

0:38:55 > 0:38:58He went to the auction to see it cos it had a low guide price.

0:38:58 > 0:39:02It had a guide price of £15,000, which is incredibly low, isn't it?

0:39:02 > 0:39:05- Yeah. - But your dad paid a bit more.- Yeah.

0:39:05 > 0:39:07- He ended up paying just over double. - He did.

0:39:07 > 0:39:10I still think it was a reasonable price he paid for it

0:39:10 > 0:39:12cos there's still quite a lot we can do with it.

0:39:12 > 0:39:15So, did you say to your dad, "Dad, I'm looking for a property.

0:39:15 > 0:39:17"Would you go and get me one?" Or how did it work out?

0:39:17 > 0:39:19Well, it's my first property venture,

0:39:19 > 0:39:21and I've gone into partnership with him,

0:39:21 > 0:39:24so he's always been property developing for a while now,

0:39:24 > 0:39:26so it's just my first venture with him.

0:39:26 > 0:39:29- Has he been successful, your dad, in the property world?- Yeah.

0:39:29 > 0:39:32- It's been 15 years since he's been buying properties.- Really?- Yeah.

0:39:32 > 0:39:34- He knows his stuff then. - Yeah, yeah.

0:39:34 > 0:39:36# Stand by me

0:39:36 > 0:39:41# Oh, stand by me

0:39:41 > 0:39:44# Whoa, stand now

0:39:44 > 0:39:46# Stand by me

0:39:46 > 0:39:48# Stand by me... #

0:39:50 > 0:39:52With Dad's experience to call on,

0:39:52 > 0:39:55this first venture into the property developing world

0:39:55 > 0:39:57shouldn't be too daunting for Hardy.

0:39:57 > 0:40:00What exactly is his plan?

0:40:00 > 0:40:04The initial plan we had is to turn it into a two-bedroom flat

0:40:04 > 0:40:07and then see if whether we could sell it on.

0:40:07 > 0:40:09- Uh-huh.- Make a decent profit on it.

0:40:09 > 0:40:12Or the second option is still make it into a two-bedroom flat

0:40:12 > 0:40:14but then rent it out.

0:40:14 > 0:40:16Do you know what usage is in place?

0:40:16 > 0:40:18Is it residential usage or is it commercial usage?

0:40:18 > 0:40:21- We're not too sure at the moment. - Not too sure.- Yeah.

0:40:21 > 0:40:22We're not sure what it was used for.

0:40:22 > 0:40:24- HE LAUGHS - So...

0:40:24 > 0:40:26The council traced it back to 1970

0:40:26 > 0:40:28and they still don't know what it was used for.

0:40:28 > 0:40:30So, Hardy, who's going to do all the work?

0:40:30 > 0:40:32Cos they've got some work to do in there.

0:40:32 > 0:40:34We've got a team of people who can do the work for us,

0:40:34 > 0:40:37and we've got good men on our side,

0:40:37 > 0:40:39so they can probably get everything done.

0:40:39 > 0:40:43- So, what do you do as a job? - I work in IT, logistics company.

0:40:43 > 0:40:44Monday to Friday, I'm usually there.

0:40:44 > 0:40:46Then weekends I'm free,

0:40:46 > 0:40:48so this will probably be a weekend venture for me.

0:40:48 > 0:40:51And what's your budget on sort of getting it from what it is now

0:40:51 > 0:40:53to what you want it to be?

0:40:53 > 0:40:56- I've got a budget of around 7,000 to get it completed.- OK.

0:40:58 > 0:41:00Are you thinking what I'm thinking?

0:41:00 > 0:41:03Seven grand isn't much to turn this place around.

0:41:03 > 0:41:06Apart from the usual kitchen and bathroom purchases,

0:41:06 > 0:41:08this one is going to need walls,

0:41:08 > 0:41:12floors, ceilings, electrics - the lot.

0:41:12 > 0:41:14And if he overspends,

0:41:14 > 0:41:18then that potential profit is as much at risk as the building.

0:41:21 > 0:41:25If you don't get permission to change it to residential,

0:41:25 > 0:41:27would you consider keeping it as a commercial unit?

0:41:27 > 0:41:28Yeah, definitely.

0:41:28 > 0:41:31If we could keep it as a commercial property, we'd possibly rent it out.

0:41:31 > 0:41:34Then there's still always the possibility of selling it

0:41:34 > 0:41:35as a commercial as well.

0:41:37 > 0:41:40Dad Jas is a shopkeeper as well as a property developer,

0:41:40 > 0:41:43so I'm sure he'll have some good ideas if this place

0:41:43 > 0:41:47doesn't get change of use and has to stay as a commercial unit.

0:41:47 > 0:41:51But these guys are making it up as they go along.

0:41:51 > 0:41:53Just a bit, because...

0:41:53 > 0:41:56- The first time you've seen it was... - Well, today.- Just now, wasn't it?

0:41:56 > 0:41:59Just now, basically, when we opened the doors.

0:41:59 > 0:42:00And what are your thoughts?

0:42:00 > 0:42:02Quite rough...to what I expected.

0:42:02 > 0:42:05We didn't expect it to be like this, but, well,

0:42:05 > 0:42:07we did buy it closed, and there was no viewings, nothing.

0:42:07 > 0:42:09We just bought it straight from the auction,

0:42:09 > 0:42:11so we didn't know what to expect.

0:42:11 > 0:42:13So, Hardy, we're going to start the work this week.

0:42:13 > 0:42:15What are the builders going to do?

0:42:15 > 0:42:18Well, first of all, we're going to try and get it all secured

0:42:18 > 0:42:22and safe for people to come in and actually work on it,

0:42:22 > 0:42:26so probably concentrate on the roof and the flooring, get it all secure.

0:42:26 > 0:42:29Make sure there's no problems, go on as we carry on

0:42:29 > 0:42:30with the rest of the work.

0:42:30 > 0:42:33- That's the main thing at the start. - Sounds like the right thing.

0:42:33 > 0:42:35Prioritise safety, as always.

0:42:35 > 0:42:38- Don't want accidents. - Yeah, that's it.

0:42:38 > 0:42:41- Hardy, good luck. I wish you all the best.- Yep. Thank you.

0:42:41 > 0:42:43I think Hardy got a bit of a surprise

0:42:43 > 0:42:46when he saw for the first time what his dad bought at auction.

0:42:46 > 0:42:48And they've definitely got the right idea.

0:42:48 > 0:42:52Let's get this place safe before anybody steps foot inside.

0:42:52 > 0:42:54Will it be commercial or will it be residential?

0:42:54 > 0:42:57You can find out later in the programme which way they went.

0:43:01 > 0:43:03Well, we've seen what's happened to one of our properties.

0:43:03 > 0:43:05What about the other two?

0:43:05 > 0:43:07Have they been bogged down by problems

0:43:07 > 0:43:08or has it been a walk in the park?

0:43:08 > 0:43:10Well, I'm keen to find out.

0:43:11 > 0:43:14Back now to North London - Tottenham to be precise -

0:43:14 > 0:43:18where earlier I looked around this one-bedroom ground-floor flat,

0:43:18 > 0:43:20bought for £121,000.

0:43:20 > 0:43:24At first sight, a bargain. But...

0:43:24 > 0:43:27When this building was converted into three flats,

0:43:27 > 0:43:31the planning permission was never, ever granted.

0:43:31 > 0:43:34Now, you could apply for retrospective planning,

0:43:34 > 0:43:36but there is no guarantee you'll get it

0:43:36 > 0:43:39and this is potentially a very big issue

0:43:39 > 0:43:42that will have an impact on the value and mortgageability

0:43:42 > 0:43:44of this one-bed property.

0:43:44 > 0:43:46MUSIC: Blockbusters theme tune

0:43:46 > 0:43:47Undeterred was Annesley,

0:43:47 > 0:43:49who having swapped politics for property

0:43:49 > 0:43:54paid £121,000 for this lot, with the intention of selling on.

0:43:54 > 0:43:58In his spare time, he liked to collect TV theme tunes,

0:43:58 > 0:44:01and had about 100 in his collection -

0:44:01 > 0:44:04often sourced from the original composer.

0:44:04 > 0:44:09But I wanted to test him on one specialist subject.

0:44:09 > 0:44:11The planning problems, tell me more.

0:44:11 > 0:44:16Yeah, so, I discovered the last time any sort of planning was applied for

0:44:16 > 0:44:18in this building was in 1950,

0:44:18 > 0:44:21and since then there's been no planning applied for whatsoever

0:44:21 > 0:44:24to convert into residential use and that's something

0:44:24 > 0:44:26that's going to have to be addressed in the next few weeks.

0:44:26 > 0:44:28Do you have a plan B?

0:44:28 > 0:44:29I don't really have a plan B

0:44:29 > 0:44:31because I always assume that plan A is going to work.

0:44:31 > 0:44:34Always risky, Annesley.

0:44:34 > 0:44:37His plan A was estimated to take six to 12 weeks,

0:44:37 > 0:44:42planning dependent, with a budget of £2,000 to £4,000.

0:44:42 > 0:44:45We're back 15 weeks later to see what's happened.

0:44:47 > 0:44:50A new seating area has happened at the far end of the kitchen.

0:44:50 > 0:44:52It's a bit bijou,

0:44:52 > 0:44:54but you don't have to go far to the new washing machine.

0:44:56 > 0:44:59In fact, you're pretty close to all things in the flat.

0:45:01 > 0:45:04# I know, I know, I know

0:45:04 > 0:45:06# That I ain't got far to go

0:45:06 > 0:45:09# I know... #

0:45:09 > 0:45:12What was the lounge space is now classed as bedroom two,

0:45:12 > 0:45:15with new electric radiator and carpet

0:45:15 > 0:45:16to make the space more homely.

0:45:21 > 0:45:23Bedroom one is still bedroom one.

0:45:28 > 0:45:32It too has a new electric radiator panel and carpet.

0:45:33 > 0:45:37# That ain't got far to go... #

0:45:38 > 0:45:40The bathroom is pretty much as it was.

0:45:42 > 0:45:46Time now for Annesley to face what would be Minister's Question Time,

0:45:46 > 0:45:49and the important matter of the new sofa.

0:45:51 > 0:45:54So, what we've done here is created an extra living space

0:45:54 > 0:45:58by moving the door to the second room to the left

0:45:58 > 0:46:02and making a platform which comes out into the kitchen

0:46:02 > 0:46:06in a sort of L-shape which has given us the space for the sofa.

0:46:06 > 0:46:10Well, as they say in Westminster, the eyes to the left have it.

0:46:10 > 0:46:12But why the kitchen?

0:46:12 > 0:46:15The reason why we created a living area in the kitchen

0:46:15 > 0:46:16is because the second room

0:46:16 > 0:46:18that was going to be the living area originally

0:46:18 > 0:46:20is now going to be a bedroom,

0:46:20 > 0:46:23and for renting we thought we can maximise income

0:46:23 > 0:46:26through having a two-bedroom flat rather than a one-bedroom.

0:46:26 > 0:46:29But the preferred option was to sell on

0:46:29 > 0:46:32after getting planning permission for change of use,

0:46:32 > 0:46:34so what happened?

0:46:34 > 0:46:38We spoke to a planning advisor and he recommended that

0:46:38 > 0:46:41we collaborate with the other flats and put an application in together.

0:46:41 > 0:46:44The freeholder of the building has just bought the freehold

0:46:44 > 0:46:47and we can't do anything until he comes forward

0:46:47 > 0:46:49and we work together to put an application in.

0:46:49 > 0:46:51So, it was advised that we hold fire at the moment

0:46:51 > 0:46:55and then work together to get planning for the entire building,

0:46:55 > 0:46:58the split commercial/residential, and that's what we intend to do.

0:46:58 > 0:47:00MUSIC: ITV News theme

0:47:00 > 0:47:03So, plan A hasn't yet come to fruition,

0:47:03 > 0:47:06so what news is there of plan B?

0:47:06 > 0:47:08So, given the planning issues,

0:47:08 > 0:47:11I'm not going to be selling it on immediately.

0:47:11 > 0:47:15I'm going to be renting it out for six months to a year.

0:47:15 > 0:47:18We can then put a collaborative planning application in.

0:47:18 > 0:47:24Subject to that going well, I would look to sell it on at that point.

0:47:24 > 0:47:27Well, he might not be able to make his fortune straightaway,

0:47:27 > 0:47:31but he has been fortunate that plan B has worked out,

0:47:31 > 0:47:33- especially as he didn't have one. - MUSIC: The A-Team theme

0:47:33 > 0:47:36We asked two estate agents to spin around and give us

0:47:36 > 0:47:38their valuations for the flat.

0:47:40 > 0:47:42Now, we have lots of valuations to get through,

0:47:42 > 0:47:45so pencils and paper at the ready.

0:47:45 > 0:47:47First off, the valuation

0:47:47 > 0:47:50in the flat's current unmortgagable state.

0:47:50 > 0:47:52Without planning permission,

0:47:52 > 0:47:55given the fact that it would only appeal to cash buyers,

0:47:55 > 0:47:58I would suggest around £180,000.

0:47:58 > 0:48:00Without the planning permission,

0:48:00 > 0:48:04I would've thought it would achieve around £180,000.

0:48:04 > 0:48:06Well, that's still quite a gain.

0:48:06 > 0:48:12Annesley bought for £121,000 and has spent £2,000 on it since -

0:48:12 > 0:48:15an increase of £57,000.

0:48:15 > 0:48:18Now, what if Annesley can make the flat mortgageable?

0:48:18 > 0:48:20With planning permission,

0:48:20 > 0:48:25this property will achieve approximately around £270,000.

0:48:25 > 0:48:28I think with planning permission on a sellers market,

0:48:28 > 0:48:31we'd look to achieve around £275,000.

0:48:31 > 0:48:35Taking the largest figure, that's a gain of £152,000 -

0:48:35 > 0:48:37more than double the flat's value

0:48:37 > 0:48:40without planning permission to be a flat.

0:48:40 > 0:48:42How does that feel?

0:48:42 > 0:48:44I'm pleased about that

0:48:44 > 0:48:47and it makes me more confident moving forward.

0:48:47 > 0:48:50- MUSIC: The Magic Roundabout theme - Now, to the rental values.

0:48:50 > 0:48:52Annesley has already marketed the flat to rent

0:48:52 > 0:48:54and has had much interest.

0:48:54 > 0:48:56His tenants are due to move in shortly.

0:48:56 > 0:48:59Let's find out if he's got a good rate.

0:48:59 > 0:49:00I think on the rental market

0:49:00 > 0:49:04we'd be looking to achieve around £1,300 per calendar month.

0:49:04 > 0:49:08This would achieve £1,100 per calendar month.

0:49:08 > 0:49:10- MUSIC: The Bill theme tune - In fact, Annesley got the top end

0:49:10 > 0:49:14of those figures, getting £1,350

0:49:14 > 0:49:19including bills per calendar month, giving him a yield of 13%.

0:49:19 > 0:49:22So, how has the foray into property been?

0:49:24 > 0:49:27It's certainly been a learning experience, learning curve.

0:49:27 > 0:49:28I think one has to bear in mind

0:49:28 > 0:49:30that you have to be flexible in your approach.

0:49:30 > 0:49:32Initially I thought I was going to sell it on.

0:49:32 > 0:49:33Now I'm going to rent it out

0:49:33 > 0:49:35given the circumstances we've talked about.

0:49:35 > 0:49:38But otherwise, I think I've been quite lucky.

0:49:38 > 0:49:42A lot of the work had already been done before I bought the property,

0:49:42 > 0:49:45and that certainly gave me a head start,

0:49:45 > 0:49:48and I would recommend it to anybody else

0:49:48 > 0:49:49who wants to go into it.

0:49:49 > 0:49:53So, has the experience made him want to rush back to the listings?

0:49:53 > 0:49:55I'd like to see how this goes first

0:49:55 > 0:49:58and then after that maybe look at other properties either in this area

0:49:58 > 0:50:03or the other periphery bits of North London which I know well,

0:50:03 > 0:50:07and I'm hopeful that I could find something else which

0:50:07 > 0:50:09I could add value to and either rent or sell on.

0:50:09 > 0:50:11That's the plan.

0:50:11 > 0:50:12MUSIC: Original ITN News theme

0:50:12 > 0:50:15There's still one burning question on all our minds.

0:50:15 > 0:50:17Did Annesley manage to name

0:50:17 > 0:50:20all the TV theme tunes we used in his film?

0:50:20 > 0:50:23Somehow, I think he probably did.

0:50:30 > 0:50:33We are heading back to Derby and the area of Alvaston

0:50:33 > 0:50:39where earlier I saw an unusual auction lot guided at £15,000.

0:50:40 > 0:50:46Now, although this commercial unit looked about £14,999 overpriced

0:50:46 > 0:50:51from the outside, was the real prize on the inside?

0:50:51 > 0:50:53Ah. From...

0:50:53 > 0:50:56From what I can see, the ceiling is coming in,

0:50:56 > 0:50:59there's holes in the floorboards.

0:50:59 > 0:51:02I can't really tell you any more than that

0:51:02 > 0:51:05without going inside, and I'm not doing that.

0:51:05 > 0:51:08# You can look but you better not touch, boy

0:51:08 > 0:51:11# You can look Better not touch

0:51:11 > 0:51:15# You can look but you better not Oh, no, you better not

0:51:15 > 0:51:17# Oh, no, you better not... #

0:51:17 > 0:51:19Safety first is what I say,

0:51:19 > 0:51:22But Hardy and his dad Jas threw caution to the wind

0:51:22 > 0:51:25when they paid £32,000 at auction.

0:51:27 > 0:51:30Like me, Jas had been unable to see inside the property,

0:51:30 > 0:51:33and Hardy had seen even less.

0:51:35 > 0:51:38- The first time you've seen it was... - Today.- Just now, wasn't it?

0:51:38 > 0:51:40Just now, basically, when we opened the doors.

0:51:40 > 0:51:42And what are your thoughts?

0:51:42 > 0:51:44Quite rough...to what I expected. No viewings, nothing.

0:51:44 > 0:51:46We just bought it straight from the auction,

0:51:46 > 0:51:48so we didn't know what to expect.

0:51:50 > 0:51:53What they expected was to be able to get permission to convert

0:51:53 > 0:51:56the property into a one or two-bed flat.

0:51:56 > 0:52:00Nine months on and the two-bed flat is very much ready.

0:52:01 > 0:52:03# I'm ready

0:52:03 > 0:52:05# I'm ready for it

0:52:05 > 0:52:07# I'm ready... #

0:52:07 > 0:52:11Gone are the boarded-up windows and in comes a smart brick finish

0:52:11 > 0:52:14that's really in keeping with the area.

0:52:14 > 0:52:18Being a curved corner site and having a flat roof isn't ideal,

0:52:18 > 0:52:22but inside Hardy and Jas have found a way to make it work.

0:52:24 > 0:52:28The bedrooms might have odd angles, but they are clean and fresh -

0:52:28 > 0:52:31just like the bathroom layout, which makes use of all the space.

0:52:33 > 0:52:37But the real jewel of the flat is the kitchen and living area.

0:52:37 > 0:52:41What was a collapsing roof now has stylish skylights

0:52:41 > 0:52:44to let in natural light that would otherwise be impossible

0:52:44 > 0:52:47as the property doesn't have rear windows.

0:52:48 > 0:52:53Throughout, there is a high standard of finish and smart, neutral decor.

0:52:53 > 0:52:56With Hardy busy at work, his dad Jas came along to tell us

0:52:56 > 0:52:59how he turned to this shell into something swell.

0:53:02 > 0:53:04We had to apply for planning permission

0:53:04 > 0:53:07because we applied for planning for change of use

0:53:07 > 0:53:10and they came back to us, they said, "OK, you can have it,

0:53:10 > 0:53:12"but you didn't really need it

0:53:12 > 0:53:14"because the building was derelict for so long."

0:53:14 > 0:53:16And then we started on the roof originally.

0:53:16 > 0:53:18While we done that, started taking the walls down,

0:53:18 > 0:53:21but we had to put the roof on stilts because it was that bad.

0:53:21 > 0:53:24After that, we made the foundations strong,

0:53:24 > 0:53:27put insulation in the floor

0:53:27 > 0:53:29and then started building the brickwork back up.

0:53:29 > 0:53:33And with the curve, the bricklayers were struggling with it,

0:53:33 > 0:53:35but they done a good job.

0:53:35 > 0:53:37They certainly have.

0:53:37 > 0:53:42But I'm intrigued how they overcame the challenge of the roof.

0:53:42 > 0:53:44Originally, we were going to do a felt roof,

0:53:44 > 0:53:47but then when we got into building regulations and things,

0:53:47 > 0:53:49they said, you know,

0:53:49 > 0:53:53you have to have the UV values and all the other stuff,

0:53:53 > 0:53:57so we designed it with the skylights just to give it a bit more light

0:53:57 > 0:53:59cos we've got no rear windows.

0:53:59 > 0:54:02So, we shopped around, found some skylights.

0:54:02 > 0:54:04Looked into the rubber roof.

0:54:04 > 0:54:07You know, we just sort of upped the spec a bit and, you know,

0:54:07 > 0:54:11it's just giving that little bit of a wow factor.

0:54:11 > 0:54:14The spec is high, but there are some things you can't see

0:54:14 > 0:54:17that also gives it the wow factor.

0:54:17 > 0:54:20Jas has added extra insulation under the floor

0:54:20 > 0:54:23and gone for a top-end finish wherever he could.

0:54:23 > 0:54:26But having paid double the original guide price

0:54:26 > 0:54:28and the agent who came to see

0:54:28 > 0:54:31suggesting the resale price of around £50,000,

0:54:31 > 0:54:33I'm worried they have overspent.

0:54:33 > 0:54:38The original budget was... we don't know what...

0:54:38 > 0:54:41cos we weren't sure what was going to happen.

0:54:41 > 0:54:44But after doing everything, the spend is about 34,000.

0:54:44 > 0:54:46It's a little bit more than what I wanted to spend,

0:54:46 > 0:54:50but I think it's worth what we spent.

0:54:50 > 0:54:53Well, I seem to recall a budget of £7,000 being mentioned,

0:54:53 > 0:54:56but I never thought that was a realistic figure.

0:54:56 > 0:54:58Given the work that needed doing,

0:54:58 > 0:55:01I'm not surprised that it's taken seven months.

0:55:01 > 0:55:04But has Jas had any help from Hardy?

0:55:04 > 0:55:08Hardy's role has mainly been silent partner.

0:55:08 > 0:55:09We've gone 50-50 on it.

0:55:09 > 0:55:12Originally I wanted to get him more involved,

0:55:12 > 0:55:14but with his work he's just been a bit busy,

0:55:14 > 0:55:18so I think he was happy staying a silent partner.

0:55:20 > 0:55:24And what's the pair's plan for the property now?

0:55:24 > 0:55:27We have been approached for rental already,

0:55:27 > 0:55:31but I'd rather sell it and then move on to the next one.

0:55:33 > 0:55:36So, Jas will want to know the price he can expect

0:55:36 > 0:55:37on both markets,

0:55:37 > 0:55:40which is where our local property experts come in.

0:55:40 > 0:55:42What do they think of the flat,

0:55:42 > 0:55:46starting with the agent who saw it when we couldn't even get inside.

0:55:47 > 0:55:50We were dealing with something which was a total wreck.

0:55:50 > 0:55:52It had to change in some way, didn't it?

0:55:52 > 0:55:54Of course, we're stuck with an odd shape, really.

0:55:54 > 0:55:57It's a wedge, so to put internal walls in

0:55:57 > 0:55:59means you've got to have all sorts of curious angles,

0:55:59 > 0:56:02and I think in truth, for the space that's here,

0:56:02 > 0:56:04he's probably made the best out of it

0:56:04 > 0:56:06that you could possibly achieve.

0:56:06 > 0:56:08There's a lot of things they've done,

0:56:08 > 0:56:11the architraves, skirting board, looks like good quality.

0:56:11 > 0:56:13So, the quality of finish seems very good.

0:56:13 > 0:56:14That's my initial impression.

0:56:14 > 0:56:16I think the appeal of this property

0:56:16 > 0:56:19will be mainly for the buy-to-let market.

0:56:19 > 0:56:22Not having a garden is a good thing if you're a landlord.

0:56:22 > 0:56:24I would say if I had to put money on it

0:56:24 > 0:56:27that the buyer for this will be letting it out straightaway.

0:56:29 > 0:56:34Speaking of money, Jas has spent a total of £66,000

0:56:34 > 0:56:36purchasing and renovating this property.

0:56:36 > 0:56:39What can it make on the sales market?

0:56:39 > 0:56:45I suggest a sale price that would be achievable would be about £70,000.

0:56:45 > 0:56:47This is based on the rental return.

0:56:47 > 0:56:52On the current sales market, I think this probably would struggle

0:56:52 > 0:56:56to achieve more than between £65,000 and £75,000.

0:56:56 > 0:56:58Clearly, it might have an asking price in excess of that,

0:56:58 > 0:57:02but at the end of the day I think that's where it's going to pan out.

0:57:02 > 0:57:05I think they're a bit on the low side.

0:57:05 > 0:57:09I think I can probably get a little bit more.

0:57:09 > 0:57:1370 grand would generate just £4,000 in profit

0:57:13 > 0:57:15before the usual taxes and expenses.

0:57:15 > 0:57:19That's not great, so how about rentals?

0:57:19 > 0:57:22I would say you'd rent it out at £475 a calendar month.

0:57:22 > 0:57:25If the property were offered on the rental market,

0:57:25 > 0:57:28I would suggest £475 per calendar month.

0:57:28 > 0:57:31I was looking around about the 500 mark,

0:57:31 > 0:57:35so 475, 500, it's about right.

0:57:35 > 0:57:40£475 per calendar month gives Jas and Hardy

0:57:40 > 0:57:42a yield of 8.5%,

0:57:42 > 0:57:45but Jas is going to stick with selling and hopefully achieve more

0:57:45 > 0:57:47than the agents' valuations.

0:57:47 > 0:57:49Any profit will go into the next project,

0:57:49 > 0:57:51and that's hopefully a little closer to home.

0:57:51 > 0:57:53So, now, after this project

0:57:53 > 0:57:57I'm looking at doing a complete build on my own home.

0:57:57 > 0:58:00Might do another refurbishment in between.

0:58:00 > 0:58:03Otherwise, the next couple of months we'll be starting

0:58:03 > 0:58:04a build on our own house.

0:58:07 > 0:58:10We visit auction houses all over the country.

0:58:10 > 0:58:13- Yes, so next time we might be in your area.- Yeah.

0:58:13 > 0:58:15Wherever we are, you won't want to miss it.

0:58:15 > 0:58:16- Goodbye.- Goodbye.- Bye.