Episode 13 Homes Under the Hammer

Hello. Now, property auctions attract all sorts -

from seasoned developers to property newbies.

Yes, but whatever your level of experience,

unexpected problems can always catch you out.

Yes, it's preparation, preparation, just a little bit more preparation.

And don't forget, we're always here to help.

All sorts of lots are up for grabs at auction - from your two-up,

two-down terrace houses to your plots of land

where the world is your oyster.

Yeah. The possibilities are endless and so are the opportunities.

So, what's on offer on today's programme?

In Otterton, Devon this two-bed chalet bungalow has plenty

of potential, so what's the problem?

It's that view!

Well, Martin, the vistas at this Tottenham, London flat

aren't that great either.

It doesn't have such an aspirational view.

The view at this commercial lot in Alvaston, Derby is something else.

I'm just not sure it's something good.

For what I can see, I don't really want to be going any further.

All these properties were bought at auction.

We'll find out who got them and how much they paid

when these homes went under the hammer.

Sold.

This is Budleigh Salterton in East Devon - a glorious stretch

of pebble beach still scattered with working fishing boats

and a town centre that looks lost in time.

Well, just a few miles away from that lovely beach is the equally

lovely little village of Otterton, situated on the River Otter.

And joy of joys, it is the location of the property I'm here to see.

Otterton has its own craft centre

which bakes its own bread from wholemeal flour.

This is traditional rural Devon and I love it.

But will I love today's property?

Well, the house sits on the outskirts of the village

which means you get lovely rural views and also,

it benefits from a quarter of an acre plot.

I say house, it's more like a chalet bungalow. Let's have a look.

The guide price on this one, £200-250,000.

Hm, the first thing that hits you when you walk through the door is

a bit of a smell of damp so that's not ideal.

But an odd entrance as well.

You come into this sort of, I guess, a living room area there,

although it feels more like a bedroom.

And through into this area here which is

the dining room/living area, I guess.

Very dated kitchen off there,

although you've got nice views out of those windows.

It needs sorting out and this whole place has that feel of needing

a bit of...yeah, tender loving care.

But one thing you can't get away from,

it certainly makes the most of its location.

Fantastic views out of the windows there.

Which is just as well

because inside it's not exactly a sight for sore eyes.

There's another downstairs room

at the front which I guess is a bedroom.

And there are plenty of tell-tale signs of damp.

Upstairs you have a very sloped ceiling and pastel pink bathroom.

And another bedroom which is

showing signs that all is not right with the roof.

# Cos I smell a mean trouble

# Lord, I smell trouble ahead of me, oh, yeah... #

The whole place smells mouldy and mildew-y

so back outside for a breath of fresh air, I think.

Apart from the fact that the property is

a little bit close to the road,

it really does make the most of its location with the open views.

And then at the side of it, this really nice garden.

Now, it obviously does need a bit of...time spent on it

but it's charming in its own way.

Lots of little pathways leading to hidden...

Whatever we're going to find through here. Oh, look at this.

Little clearing with a kind of Hansel and Gretel-style wooden shed.

Birds tweeting, dappled sunlight, bluebells.

I mean, yeah, it's lovely.

Ah, rural bliss.

This part of the world really is very special

and having your own mini Devonshire woodland turns this slightly mouldy

old chalet bungalow into something a bit more, well, romantic.

Ah, how lovely.

Well, it would be were it not for the horror that quite possibly

awaits anyone that buys this place.

Is the state of the property itself? No, but that certainly isn't great.

Is it the fact that you'd quite like to extend out here

and it isn't quite suitable?

No. Nice view.

Is it the fact that ideally

you'd want the bungalow to be that way a bit?

Um, no, not that.

Lovely open outlook.

Is the fact that there might be issues underneath here or

power head cables above? No, it's not that. It's that view!

Not the view itself

but the fact that local knowledge is a really important thing

because it tells you that that view looks out across a floodplain

and in fact, this whole property is in that floodplain.

So, there is a one in 100 chance every year that you'll get

a little bit closer to the waterfront than you would like.

# Too close for comfort now. #

We have all seen the devastation that flooding can cause

over the last few years, so this is now a major factor

when you look at properties.

In 2012 this field was turned into a lake and while

this house remained dry, many local houses and businesses did not

so definitely something to factor in.

We asked a local agent along to see what he thought about it all.

It's pretty tired, sadly, and obviously in need of some TLC.

And particularly with regard to heating systems and wiring etc,

it's very dated and needs quite a lot of money spending on it

to bring it up to a good modern standard.

So what about forgetting the refurbishment

and raising the place to the ground?

It's a lovely plot.

Interesting shaped plot so if you let an architect run wild here,

you could end up with a really special modern property,

taking advantage of the outlook.

Probably a reverse-level property whereby the reception rooms are

upstairs so you take advantage of the views in all directions here.

Hmm. But there is a bit of an elephant in the room here.

Namely the flooding.

What does the agent think about that particular problem?

It is an issue. However, there are plans

to carry out works further down the valley

which should alleviate that problem if they come to fruition.

But certainly there is a risk here

and anybody refurbishing this property or indeed, knocking down

and building a new property would have to take that into account.

But it's all doable.

Would this house - guided at £200-250,000 -

be worth all the hassle

that either a full refurbishment or a rebuild would entail?

If this were renovated to a good standard in its

present configuration,

you're looking just a shade under the 400,000 mark.

If you were to knock the building down,

put in a really nice four-bedroom detached property,

very high spec etc, you're certainly looking 600+.

Well, it's certainly a great location

and a lovely part of the world.

However, I don't think the house quite does it justice.

In terms of what to do to it, I'm really not so sure.

Let's hope whoever bought it has some ideas.

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

135 is the lot number.

Anybody want to start at 225?

220? 210 or 200?

No? OK.

So, it was unsold in the room.

# I need someone

# Someone to love me... #

But it was bought straight after the auction by Adam and Darren

for £204,000.

If you're thinking they are familiar faces on the show, you'd be right.

Remember that wonky house in Paignton back in August 2012?

Well, that was them.

I met them back at the house to find out why they were

so keen on another challenge.

-Adam, Darren, great to see you both again.

-Hello.

-Hi.

-You're still standing then.

-Yeah, just about.

-Just about.

So, the last time we met you were embarking on...well,

a challenge, weren't you?

The House Of Horrors, we've come to call it.

We managed to keep the roof and the back wall, fortunately.

-The rest had to be demolished. It was bowing and underpinning.

-Right.

-New bedrooms, bathrooms, kitchen.

-Kept the roof and the back wall.

Basically, the rest of it so it is a new house.

Let's move on to this place.

Yes. House Of Horrors 2.

THEY LAUGH

-The sequel.

-Yeah, the sequel, yeah.

-Pretty much, yeah.

-Well, you know, it has a few issues.

-It does, yeah.

So, why did you buy them? Was it just the price?

Well, it's the location.

If you can get over the hurdle of the flooding or the floodplain,

it's, you know, fantastic.

OK. Tell me how you're going to get over it.

Well, this house is obviously pretty nasty so we're thinking...

-Our sort of first plan is to flatten it.

-Right.

Raise the whole plot and, basically,

build a bigger house further up the plot.

Historically the floodwaters have literally lapped at the edge.

The neighbouring property has been high and dry so we're thinking

if we're a metre or so higher,

then hopefully that will be suffice with the Environment Agency.

You've got the road so you can't move it too far towards the road, can you?

-No, we want to go...

-That way.

Take advantage of the garden over there, put the house towards

the back, close to the road but lift it slightly.

And then, obviously, what's left here could then be

more garden and amenity space.

'And planning will be stringent. In particular,

'the Environment Agency have certain criteria that must be met

'for new builds built on or near floodplains.

'Some are just recommendations such as,

'to make the bulk of the living accommodation on the first floor

'and just have garages and utility spaces on the ground floor.

'Others are requirements such as, the height the electrical sockets

'are cited, the type of flooring used and the materials required.

'All of which will be need to be incorporated into any design

'before planning would be approved.'

So what happens now then? What's the next stage?

Well, site clearance and the various surveys that are needed.

Habitat surveys and starting compiling what the planners need

but, most notably,

what they call a site-specific flood risk assessment

which will then dictate what we can and can't do,

and speaking to some architects.

The plus side here, of course, is if you get it right,

you are into telephone numbers in terms of profit, aren't you?

Yeah, we'd hope to get a reasonable return.

Talk me through the numbers.

We're looking at something maybe of 3,000 square feet

and we want to get something that we could possibly sell for pushing 700.

-OK. So build costs on that would be what, about 200-300,000?

-About 300.

-Yeah, 300...to do it.

-High quality.

-Yeah.

-Potentially we could walk away with about 100 each.

-Right.

-But...

In an ideal world, if we walk away with 50 each, wouldn't complain.

And then the absolute fallback is to take this property

and just simply extend it and do something a bit more modest.

It's not going to happen overnight, this one, is it?

-A good 18 months project, I think.

-Well, listen, congratulations.

-Good luck.

-Thanks, Martin.

-Thanks so much. Cheers.

-And we wait with great anticipation to see how you get on.

-Excellent.

-Thanks.

-Look forward to it. Cheers.

So, it's House Of Horrors, part two the sequel for Adam and Darren.

They do seem to take them on, don't they?

First it was cracks and subsidence and now it's flooding.

Still...there are big profits to be made

if they can get over the odd hurdle or three. How will they get on?

I can't wait to find out. You can see later in the show.

Regeneration is a real buzz word

when you're deciding where to invest in property.

And there are few areas where this is more applicable than

North London's Tottenham.

Now, ambitious plans are already underway such as a brand-new

football stadium, which will also include a supermarket

and 275 brand-new homes.

However, this is just the tip of the iceberg.

By 2025 the council aim to bring more than 5,000 jobs,

10,000 new homes and nearly

a million square foot of employment space to the area.

If you're after peace and quiet and parking right outside

your front door, this will not be the location for you.

But if you want shops and transport links right on your doorstep,

well, the one-bedroom ground floor flat I'm here to see

could be right up your street.

Now, the guide price was £110,000

and it's just through this doorway here.

The outside may be a bit dated and humble,

but the communal areas are kept well

and the flat's entrance is a little away from the road noise.

And straight into the flat.

It's not what you'd normally expect, walking into a kitchen

but don't forget, we are in London here and what you see is a really

nice shiny new flat that looks recently decorated.

I mean, look at this, brand-new kitchen.

So what it lacks here is natural daylight and, I suppose,

well, it gives you a little bit back by that up there but it

could've been a little bit bigger.

Off the kitchen you've got a bathroom but again,

all singing and dancing.

Really nice shower, new floor tiles.

Up a little step and you've got a bedroom or a lounge, I suppose,

with a door leading off.

And through into here a bedroom or a lounge.

Now, to improve this what I would do would be to try

and increase the natural daylight.

I'd take this out so you'd get the vision of the lovely window there

and therefore, it would just create a much better feel

walking through that front door.

It would be very inexpensive to do so and it would really add

so much more to this flat.

Now the flowery room would then become your lounge with an open plan

aspect to the kitchen, with next door becoming your bedroom.

But the problem here is, well, when this building was converted

into three flats, the planning permission was never ever granted.

Now, you could apply for retrospective planning

but there is no guarantee you'll get it.

And this is potentially a very big issue that will have an impact

on the value and mortgage ability of this one-bed property.

And for that matter, the flats above it. But it's not all bad news.

Well, a bit of good news.

This little London pad does have outside space,

which is such a bonus.

It doesn't have such an aspirational view.

This concrete wall!

I would start off by putting some nice white paint on that

just to...just to lift it up a little bit.

But you could hang your washing out here, you can get a breath of

fresh air and on a summer's evening, hey, you can step outside.

We called in a local property expert to get the benefits

of his specialist knowledge.

I think it's a great location for the stations.

You've got Bruce Grove on the left

and you've got Tottenham Hill on the right.

But downsides I would say is mainly the noise

cos you're on a busy road and the parking... There's no parking.

So what kind of money could this property, guided at 110 grand,

be worth if you sorted out the planning and refurbished it?

Regards to the sale price,

I believe this flat would achieve round about the £200,000 mark.

And regards to the rental side, I believe that £950 is

achievable per calendar month.

Well, to be or not to be a flat? That is the burning question here.

If you can get retrospective planning, well,

this could be good value for money.

But if not, well, it could be a very tricky investment.

Who was prepared to take on the challenge?

Let's head to auction and find out.

Lot number 50. What shall we say? Is it worth 110 to you?

105. 105 is bid, thank you.

106, do I see?

106, 107, 108, 109, 110, 111.

112? 112. 113, 114, 115, 116, 117, they were first.

118, 119, 120, 121. 122. No?

121, back of the room for the first.

At 121 for the second,

third and final time at £121,000.

That's yours at £121,000.

The top bid came from Annesley,

a former political adviser and Parliamentary candidate.

His bidding campaign got him first past the post

when the hammer fell at £121,000.

Now he has decided on moving from politics to property.

A fun fact about Annesley - as a hobby, he collects TV theme tunes

so brace yourself, we're going to be hearing a lot of those later on.

-Congratulations, Annesley.

-Thank you very much.

So what I want to know is, what was

your inspiration behind you wanting to buy this flat in Tottenham?

Tottenham is undergoing a huge amount of regeneration,

especially in light of the 2011 riots,

a lot of money is being pumped into here from the Mayor's budget

and also from the local council so I think it's a good opportunity

to invest in the area which is improving.

And a lot of first-time buyers also investing in this area because

it will grow in desirability and in value.

Do you think in a way that the riots have prompted the changes here?

Because I've known this area for so many years

and it's promised to be on the up, nothing really has happened.

I think it has focused minds and I think it's actually acted

as a catalyst for something to happen sooner rather than later.

A lot of investment has been allocated here, there are big plans

so I think it's actually helped things improve massively.

Why this property? Because I know it comes with a few problems.

Its central location, it's very close to the station.

I like the fact that it's a one-bedroom property

and I like the actual space so I think it does have potential.

But the planning problems, tell me more.

Yeah. So, I discovered when I did my homework that the last time

any sort of planning was applied for in this building was in 1950.

And since then there's been no planning applied for whatsoever

to convert into residential use, and that's something that's going

to have to be addressed in the next few weeks.

Do you think that may pose problems for you?

I mean, do you have a plan B?

I don't really have a plan B because I always assume that plan A

is going to work.

'Well, you can't knock Annesley for his optimism but the last time

'a planning application was entered for this building it was to become

'a children's clothes manufacturers in the '50s.

'And applying for a change of use isn't always easy

'so I'm here with Huey Lewis when he says...'

# Well, it's time for me to face up to reality

# Plan B! #

Yep, always have a plan B.

Also, if it comes to selling, some mortgage lenders won't be keen

on the close proximity of fast food outlets

so this might turn out to be a little former shop of horrors.

So, how much homework did you actually do with this property?

Obviously, it didn't put you off

-finding out there were planning problems.

-Yes.

I did a little bit.

Probably not as much as I should've done but I did...

I did as much as I thought I could at the time.

Clearly, with it being a converted commercial premises, it limits the

borrowing capabilities and that is probably why it ended up at auction.

So if we get the planning and if we finish the flat off,

then I think it would certainly have more potential.

So this was the right flat for you. It came up at the right price.

As a first-time project this is the sort of level I was looking at.

So, the kind of size and price I was looking at.

Are there any tweaks you might want to do in here?

-Because it's quite unusual walking straight into the kitchen.

-It is.

It is actually quite a large kitchen for the flat and so I may look at...

Actually, I would leave the kitchen as it is,

maybe put a washing machine in there.

The thing for me is, I would like to see the kitchen and lounge

more integrated, become one room.

Yes, at the moment it's a bit disjointed

and layout is a bit awkward

and I think that's another thing that may put some people off

but those are things that can be rectified fairly easily.

I gather that the walls are not supporting

so they should be able to be adjusted fairly easily.

I mean, how about changing some of the rooms over? That could be

the lounge, that could be the bedroom, swap them around,

open up this wall here to let the natural light flow through.

Yes, that is something I also thought about.

'You know, I actually believe Annesley.

'Maybe he's more cut out for property development than politics!

Ooh, and do you know, Adele comes from Tottenham?

Just thought I'd mention it.

# Rumour has it

# Rumour

-# Rumour has it

-Rumour

# Rumour has it. #

-Now, I know you have a political background.

-Mm-hm.

Tell me about that and why you've decided to tiptoe into property.

OK. So, I worked as a political adviser,

I stood as a candidate myself for Parliament

and I was involved in politics for a very long time.

I thought it time to take a break from that

and do something for myself.

And the great thing about this avenue is that I can

manage my own time, I've got the flexibility

and I can still do my charitable projects that I'm involved in.

And I'd love to make a success of this and do it for a few years

and maybe come back to politics in the future.

So now you have it. What is your aim?

My aim is to finish it off, possibly change the layout, get the planning

and then make a decision whether to sell it on or rent it out.

What are you going to be like if you do have to roll your sleeves up

and slap some paint on the walls and actually get your hands dirty?

I'm no good at that at all. I'm no good at that, no.

-I thought you might have said that!

-That's right.

I can't even draw a straight line so that's not going to happen.

I rely on reliable tradesman.

So your background in politics

did not teach you how to draw in a straight line and paint walls.

No. Definitely not, no.

So may I ask your budget?

How much have you got to spend on this property?

I think including the planning application,

-I'd be looking at between £2-4,000.

-Which is fantastic!

It's very, very rare I ever meet

anybody that says between 2 and £4,000.

I can imagine, yes.

There's not a huge amount that needs doing here.

The main cost, actually, will be the administrative side, the planning.

In terms of the physical property, there isn't a huge amount

to be spent here.

So, what's your timescale for this?

The planning is somewhat in the hands of the council

and so the timing is slightly unpredictable

but I would've thought 6-12 weeks.

-Good luck with the outcome.

-Thank you.

-I hope it all works out.

-Lovely to meet you today.

-Lovely to meet you, thank you.

So, Annesley has just started property developing and, well,

he's taken on a bit of a risky first project.

I just hope that planning permission

doesn't prove too much of an obstacle for him.

You can join me later on in the programme to find how he gets on.

DION: Coming up, I might be a little light on information

in Alvaston, Derby.

I can't really tell you any more than that without going inside

and I'm not doing that.

And when is a flat not a flat?

Annesley's having problems in Tottenham, London.

It was advised that we hold fire for the moment.

Back now to the picturesque Devonshire countryside

and the village of Otterton where I visited this three-bedroom house

with views that did not disappoint.

Unfortunately though, the good news ended there.

It needs sorting out and this whole place has just that feel

of needing a bit of...yeah, tender loving care.

Spacious but definitely downtrodden,

this house was also suffering quite seriously from damp

which leads me onto the next topic for discussion.

That view looks out across a floodplain and, in fact,

this whole property is in that floodplain.

So there is a one in 100 chance every year that you'll get

a little bit closer to the waterfront than you would like.

# Go look at the weather

# I believe there's going to be a flood. #

That was very worrying indeed.

But it didn't deter Adam and Darren who have a little bit of experience

with nightmare properties,

having been on the show before with a troubled house in Paignton.

They paid £204,000 for this one

and had a simple solution for this property's woes.

-Our sort of first plan is to flatten it.

-Right.

Raise the whole plot

and basically build a bigger house further up the plot.

Having done their local research, they found that the floodwaters

had in the past come as close as lapping at the back door.

So, moving over into the spacious garden and lifting it slightly,

would make the new house much more secure for years to come.

They plan to do it with a budget of £300,000 and in 18 months.

So how did they get on? We returned over 2.5 years later to find out.

# I like the way you move

# I like the way you move... #

Wow!

The old house has been flattened and by moving the site as promised

there is now a fabulous four-bedroom,

and hopefully, future-proofed house.

This house optimises modern living,

with a spacious open plan kitchen and diner.

With floor-to-ceiling windows, the inside space flows out onto

the solid oak decking, complete with hot hub,

and truly makes the most of the spectacular country views.

While water in your hot tub might be welcome, the water table

with this site was a real issue, so how did that pan out?

Yeah. We worked with the Environment Agency

and various different planning consultants

and what we did in the end, we arranged for the house to be

knocked down, moved further up the garden and it's 600mm higher

than the original finished floor level of the original house.

So, we're pretty much covered for any flooding.

# Oh, you got the feeling that I want to feel. #

DANCE MUSIC BUILDS TEMPO

This house has been finished to the highest spec,

from the integrated appliances in the kitchen to the heating system

which can be controlled by phone or tablet.

Next door is the first of four bedrooms complete with an en suite

and is, again, finished to the highest possible standard.

To the left of that there is a small office.

# You give me that feeling, you give me that feeling... #

Heading upstairs to the additional three bedrooms,

the master one here being the largest of the three with

a balcony overlooking the garden

and, again, that priceless rural landscape.

Aside from the luxury stand-alone bath, there's also an en suite

fitted with contemporary stainless steel fittings.

Next door is the third bedroom - a bit smaller than the master

but with those huge windows, it's again, all about the view.

Along the hallway is the last bedroom

and the smallest of the four but perfect for the kids.

# Real, real love...

The final room up here is the master bathroom.

Its light contemporary finish

is fitting for this breathtaking family home.

The big surprise is that this beautiful house isn't

a development project after all.

Darren stepped aside

when Adam decided he wanted to build it for himself and live in.

He has designed it quite beautifully to his own specifications.

However, getting to this stage has had its frustrations.

Yeah, the planning process was actually quite difficult.

There were problems with it being

an area of outstanding beauty and a conservation area.

The local authority didn't really want us to put anything too big here

so it did take a fair bit of time and wrangling backwards and forwards

in design and so on but in the end

I got pretty much what I was looking for.

An Area of Outstanding Natural Beauty designation means that there

are conservation rules due to its significant landscape value.

There are nearly 50 such areas across Britain

so you have to bear in mind that there could be complex

planning issues similar to those in national parks.

You have a lovely place to live in but it takes a lot of rules

to keep it lovely.

That planning process did cost time.

In fact, Adam couldn't get started on this project for nine months

while designs were being scrutinised by the planners

so I am guessing he didn't stick to that 18-month timescale.

Build time now has been about 14-16 months from when we

actually got planning so...

..a bit longer than I'd like.

So, with planning, that took this project almost 2.5 years to complete

but it's clear that Adam wanted to get it right

and, with the help of his builders, I'd say he did an excellent job

and to an incredibly high standard.

but that high spec must have come at a high price.

Yeah, originally when it first came out we sort of put a figure

thinking about 300,000, with the plot for 200,000,

and potentially sell for 650, 700.

It's actually worked out, I've nearly spent about 440 on the build.

Quite a bit more than I thought I'd spend but we'll see what it's worth.

I think there's a little bit of profit in it.

But it might just be a little, as he said, because that takes

Adam's total spend on this project to around £640,000.

So, we invited along two local estate agents to find out

if Adam's luxury home could turn a profit or end up being

a very expensive labour of love.

Well, this is the first time I've been here and I have to say

it's an absolutely fabulous property.

The layout is absolutely amazing in this property.

It's very bright, it's spacious, it's open

and it's all featured around the views, in particular

cos you've got the Otter Valley there which virtually every window

you look out of you can see straight down through.

My initial impression of the property is it's quite outstanding.

The design is very interesting

but the owner has driven it to a different level with

the quality of fixtures and fittings which I have to say,

it's many years since I've seen a property of this quality.

It's outstanding.

Regarding the flooding issue here, the owner has given that

great thought and I would imagine that it's well protected now.

Although in some people's mind that might be a little bit of concern,

but I think the current owner,

what he's done here will allay peoples fears.

All very positive indeed so let's get those values and see

if Adams luxury home will come with a luxury price tag.

I would expect it to achieve somewhere in the region of £850,000.

We would suggest a guide price of £900,000.

Um, yeah, I thought about sort of 900 maybe.

875, 900 so, yeah, I'm pretty happy with that.

I'd be pretty happy too as that's

a whopping potential pre-tax profit of £256,000.

But Adam plans to hold onto it for now and I can't blame him really.

Derby has many things to be proud of.

It was a major player in the Industrial Revolution.

And it's still an engineering powerhouse today.

Manufacturers like Rolls-Royce and Toyota help this city produce

a vast amount of cars every year.

Just south of the city centre is the suburb of Alvaston.

With great commuter links to the city,

it's always been a popular residential area.

The property I'm here to see

isn't your usual Homes Under The Hammer lot.

It's this old commercial unit, and as you can see,

it hasn't been loved for some time.

That's probably why it's got a guide price of just £15,000.

I'm going to take a look inside.

OK.

Ah.

From...

From what I can see, I don't really want to be going any further.

The ceiling is coming in. There's holes in the floorboards.

But what I can see from my safe position

is a nice big space just there.

There is a room to the side as well,

and if I lean in, I can see there's a room towards the back as well.

But I can't really tell you any more than that

without going inside, and I'm not doing that.

Before filming, some local residents

told us that this may have been the local co-op

and has probably been empty for the last 20 years.

I can't say for sure

if this building is still classified as a shop,

but what I can tell you is... I'm not going inside.

# Standing on the outside

# Looking in... #

What I can tell you is if you wanted it to be a shop,

that's classed as A1.

If you wanted it to be a restaurant or a cafe,

that's classed as A3.

Or a residential property, that's classed as C3.

The list just goes on and on.

What I would suggest is find out

what you want to use this property for,

get your application in and hope for the best.

That's about it for this property.

There's really not much more to say.

Perhaps the auctioneer who sold this property

has that little bit more to add.

It's not a busy trading area,

so my guess is that unless it was a specific trade

that people would find you for, it's not going to do very well.

I think more likely it's going to be the subject

of a planning application to turn it into residential accommodation.

So, if this was your property, what would you do with it?

I think my only purpose would be

to go down the planning application route,

get residential change of use

and make it into a one or two-bedroom apartment.

And what sort of value might these options generate?

So, if it became a one-bedroom flat,

it would have a rental value of probably £375 a calendar month.

Against that income,

it would have a market value of around £40,000 to £45,000.

If it became a two-bedroom flat,

then you would have a monthly rental of something

in the order of £400, £420 maybe,

and it would have a market value of about £50,000.

Having seen the inside of the property,

there's a whole load of work that needs to be done -

and that's just to get it safe.

With that guide price of £15,000,

you probably thought, "It's too good to be true."

I think it just might be, in this case.

Let's see who was up for the challenge

when it went under the hammer.

Lot number eight.

It's a single-storey retail unit with potential.

Well, the potential to un-board it, for starters.

Guide is £15,000. Start me at that. 15. Who's got 14?

14,000. Bid me 12 to move it on. Thank you.

£12,000 I have as an opening bid. We'll go up in 500s.

At £12,000

Despite the initial reluctance of the public to get involved,

this lot increased in value rapidly

and we rejoin the auction with the price at £30,000.

30,000. Is that it?

Can't tempt you with one more five? At £30,000, we're selling.

For the first time at 30. Second time at 30.

500. I thought you might. 31.

31.5.

32.

Is that a definite? £32,000 once, twice. Third chance.

Sold at 32,000. Thank you.

It was Jas who successfully bid on the property

on behalf of his son, Hardy.

I met up with Hardy for a chat on the pavement

to find out what his plans were.

-Hardy, nice to meet you, sir.

-Nice to meet you.

-Congratulations.

-Thank you.

We don't often do our interviews outside,

but it seems to be a little bit dangerous in there.

-You haven't started work as yet, so we're a bit safer out here.

-Yeah.

Who found it? Did you find it or...?

No, my dad actually found it when he went to the auction.

He went to the auction to see it cos it had a low guide price.

It had a guide price of £15,000, which is incredibly low, isn't it?

-Yeah.

-But your dad paid a bit more.

-Yeah.

-He ended up paying just over double.

-He did.

I still think it was a reasonable price he paid for it

cos there's still quite a lot we can do with it.

So, did you say to your dad, "Dad, I'm looking for a property.

"Would you go and get me one?" Or how did it work out?

Well, it's my first property venture,

and I've gone into partnership with him,

so he's always been property developing for a while now,

so it's just my first venture with him.

-Has he been successful, your dad, in the property world?

-Yeah.

-It's been 15 years since he's been buying properties.

-Really?

-Yeah.

-He knows his stuff then.

-Yeah, yeah.

# Stand by me

# Oh, stand by me

# Whoa, stand now

# Stand by me

# Stand by me... #

With Dad's experience to call on,

this first venture into the property developing world

shouldn't be too daunting for Hardy.

What exactly is his plan?

The initial plan we had is to turn it into a two-bedroom flat

and then see if whether we could sell it on.

-Uh-huh.

-Make a decent profit on it.

Or the second option is still make it into a two-bedroom flat

but then rent it out.

Do you know what usage is in place?

Is it residential usage or is it commercial usage?

-We're not too sure at the moment.

-Not too sure.

-Yeah.

We're not sure what it was used for.

-HE LAUGHS

-So...

The council traced it back to 1970

and they still don't know what it was used for.

So, Hardy, who's going to do all the work?

Cos they've got some work to do in there.

We've got a team of people who can do the work for us,

and we've got good men on our side,

so they can probably get everything done.

-So, what do you do as a job?

-I work in IT, logistics company.

Monday to Friday, I'm usually there.

Then weekends I'm free,

so this will probably be a weekend venture for me.

And what's your budget on sort of getting it from what it is now

to what you want it to be?

-I've got a budget of around 7,000 to get it completed.

-OK.

Are you thinking what I'm thinking?

Seven grand isn't much to turn this place around.

Apart from the usual kitchen and bathroom purchases,

this one is going to need walls,

floors, ceilings, electrics - the lot.

And if he overspends,

then that potential profit is as much at risk as the building.

If you don't get permission to change it to residential,

would you consider keeping it as a commercial unit?

Yeah, definitely.

If we could keep it as a commercial property, we'd possibly rent it out.

Then there's still always the possibility of selling it

as a commercial as well.

Dad Jas is a shopkeeper as well as a property developer,

so I'm sure he'll have some good ideas if this place

doesn't get change of use and has to stay as a commercial unit.

But these guys are making it up as they go along.

Just a bit, because...

-The first time you've seen it was...

-Well, today.

-Just now, wasn't it?

Just now, basically, when we opened the doors.

And what are your thoughts?

Quite rough...to what I expected.

We didn't expect it to be like this, but, well,

we did buy it closed, and there was no viewings, nothing.

We just bought it straight from the auction,

so we didn't know what to expect.

So, Hardy, we're going to start the work this week.

What are the builders going to do?

Well, first of all, we're going to try and get it all secured

and safe for people to come in and actually work on it,

so probably concentrate on the roof and the flooring, get it all secure.

Make sure there's no problems, go on as we carry on

with the rest of the work.

-That's the main thing at the start.

-Sounds like the right thing.

Prioritise safety, as always.

-Don't want accidents.

-Yeah, that's it.

-Hardy, good luck. I wish you all the best.

-Yep. Thank you.

I think Hardy got a bit of a surprise

when he saw for the first time what his dad bought at auction.

And they've definitely got the right idea.

Let's get this place safe before anybody steps foot inside.

Will it be commercial or will it be residential?

You can find out later in the programme which way they went.

Well, we've seen what's happened to one of our properties.

What about the other two?

Have they been bogged down by problems

or has it been a walk in the park?

Well, I'm keen to find out.

Back now to North London - Tottenham to be precise -

where earlier I looked around this one-bedroom ground-floor flat,

bought for £121,000.

At first sight, a bargain. But...

When this building was converted into three flats,

the planning permission was never, ever granted.

Now, you could apply for retrospective planning,

but there is no guarantee you'll get it

and this is potentially a very big issue

that will have an impact on the value and mortgageability

of this one-bed property.

MUSIC: Blockbusters theme tune

Undeterred was Annesley,

who having swapped politics for property

paid £121,000 for this lot, with the intention of selling on.

In his spare time, he liked to collect TV theme tunes,

and had about 100 in his collection -

often sourced from the original composer.

But I wanted to test him on one specialist subject.

The planning problems, tell me more.

Yeah, so, I discovered the last time any sort of planning was applied for

in this building was in 1950,

and since then there's been no planning applied for whatsoever

to convert into residential use and that's something

that's going to have to be addressed in the next few weeks.

Do you have a plan B?

I don't really have a plan B

because I always assume that plan A is going to work.

Always risky, Annesley.

His plan A was estimated to take six to 12 weeks,

planning dependent, with a budget of £2,000 to £4,000.

We're back 15 weeks later to see what's happened.

A new seating area has happened at the far end of the kitchen.

It's a bit bijou,

but you don't have to go far to the new washing machine.

In fact, you're pretty close to all things in the flat.

# I know, I know, I know

# That I ain't got far to go

# I know... #

What was the lounge space is now classed as bedroom two,

with new electric radiator and carpet

to make the space more homely.

Bedroom one is still bedroom one.

It too has a new electric radiator panel and carpet.

# That ain't got far to go... #

The bathroom is pretty much as it was.

Time now for Annesley to face what would be Minister's Question Time,

and the important matter of the new sofa.

So, what we've done here is created an extra living space

by moving the door to the second room to the left

and making a platform which comes out into the kitchen

in a sort of L-shape which has given us the space for the sofa.

Well, as they say in Westminster, the eyes to the left have it.

But why the kitchen?

The reason why we created a living area in the kitchen

is because the second room

that was going to be the living area originally

is now going to be a bedroom,

and for renting we thought we can maximise income

through having a two-bedroom flat rather than a one-bedroom.

But the preferred option was to sell on

after getting planning permission for change of use,

so what happened?

We spoke to a planning advisor and he recommended that

we collaborate with the other flats and put an application in together.

The freeholder of the building has just bought the freehold

and we can't do anything until he comes forward

and we work together to put an application in.

So, it was advised that we hold fire at the moment

and then work together to get planning for the entire building,

the split commercial/residential, and that's what we intend to do.

MUSIC: ITV News theme

So, plan A hasn't yet come to fruition,

so what news is there of plan B?

So, given the planning issues,

I'm not going to be selling it on immediately.

I'm going to be renting it out for six months to a year.

We can then put a collaborative planning application in.

Subject to that going well, I would look to sell it on at that point.

Well, he might not be able to make his fortune straightaway,

but he has been fortunate that plan B has worked out,

-especially as he didn't have one.

-MUSIC: The A-Team theme

We asked two estate agents to spin around and give us

their valuations for the flat.

Now, we have lots of valuations to get through,

so pencils and paper at the ready.

First off, the valuation

in the flat's current unmortgagable state.

Without planning permission,

given the fact that it would only appeal to cash buyers,

I would suggest around £180,000.

Without the planning permission,

I would've thought it would achieve around £180,000.

Well, that's still quite a gain.

Annesley bought for £121,000 and has spent £2,000 on it since -

an increase of £57,000.

Now, what if Annesley can make the flat mortgageable?

With planning permission,

this property will achieve approximately around £270,000.

I think with planning permission on a sellers market,

we'd look to achieve around £275,000.

Taking the largest figure, that's a gain of £152,000 -

more than double the flat's value

without planning permission to be a flat.

How does that feel?

I'm pleased about that

and it makes me more confident moving forward.

-MUSIC: The Magic Roundabout theme

-Now, to the rental values.

Annesley has already marketed the flat to rent

and has had much interest.

His tenants are due to move in shortly.

Let's find out if he's got a good rate.

I think on the rental market

we'd be looking to achieve around £1,300 per calendar month.

This would achieve £1,100 per calendar month.

-MUSIC: The Bill theme tune

-In fact, Annesley got the top end

of those figures, getting £1,350

including bills per calendar month, giving him a yield of 13%.

So, how has the foray into property been?

It's certainly been a learning experience, learning curve.

I think one has to bear in mind

that you have to be flexible in your approach.

Initially I thought I was going to sell it on.

Now I'm going to rent it out

given the circumstances we've talked about.

But otherwise, I think I've been quite lucky.

A lot of the work had already been done before I bought the property,

and that certainly gave me a head start,

and I would recommend it to anybody else

who wants to go into it.

So, has the experience made him want to rush back to the listings?

I'd like to see how this goes first

and then after that maybe look at other properties either in this area

or the other periphery bits of North London which I know well,

and I'm hopeful that I could find something else which

I could add value to and either rent or sell on.

That's the plan.

MUSIC: Original ITN News theme

There's still one burning question on all our minds.

Did Annesley manage to name

all the TV theme tunes we used in his film?

Somehow, I think he probably did.

We are heading back to Derby and the area of Alvaston

where earlier I saw an unusual auction lot guided at £15,000.

Now, although this commercial unit looked about £14,999 overpriced

from the outside, was the real prize on the inside?

Ah. From...

From what I can see, the ceiling is coming in,

there's holes in the floorboards.

I can't really tell you any more than that

without going inside, and I'm not doing that.

# You can look but you better not touch, boy

# You can look Better not touch

# You can look but you better not Oh, no, you better not

# Oh, no, you better not... #

Safety first is what I say,

But Hardy and his dad Jas threw caution to the wind

when they paid £32,000 at auction.

Like me, Jas had been unable to see inside the property,

and Hardy had seen even less.

-The first time you've seen it was...

-Today.

-Just now, wasn't it?

Just now, basically, when we opened the doors.

And what are your thoughts?

Quite rough...to what I expected. No viewings, nothing.

We just bought it straight from the auction,

so we didn't know what to expect.

What they expected was to be able to get permission to convert

the property into a one or two-bed flat.

Nine months on and the two-bed flat is very much ready.

# I'm ready

# I'm ready for it

# I'm ready... #

Gone are the boarded-up windows and in comes a smart brick finish

that's really in keeping with the area.

Being a curved corner site and having a flat roof isn't ideal,

but inside Hardy and Jas have found a way to make it work.

The bedrooms might have odd angles, but they are clean and fresh -

just like the bathroom layout, which makes use of all the space.

But the real jewel of the flat is the kitchen and living area.

What was a collapsing roof now has stylish skylights

to let in natural light that would otherwise be impossible

as the property doesn't have rear windows.

Throughout, there is a high standard of finish and smart, neutral decor.

With Hardy busy at work, his dad Jas came along to tell us

how he turned to this shell into something swell.

We had to apply for planning permission

because we applied for planning for change of use

and they came back to us, they said, "OK, you can have it,

"but you didn't really need it

"because the building was derelict for so long."

And then we started on the roof originally.

While we done that, started taking the walls down,

but we had to put the roof on stilts because it was that bad.

After that, we made the foundations strong,

put insulation in the floor

and then started building the brickwork back up.

And with the curve, the bricklayers were struggling with it,

but they done a good job.

They certainly have.

But I'm intrigued how they overcame the challenge of the roof.

Originally, we were going to do a felt roof,

but then when we got into building regulations and things,

they said, you know,

you have to have the UV values and all the other stuff,

so we designed it with the skylights just to give it a bit more light

cos we've got no rear windows.

So, we shopped around, found some skylights.

Looked into the rubber roof.

You know, we just sort of upped the spec a bit and, you know,

it's just giving that little bit of a wow factor.

The spec is high, but there are some things you can't see

that also gives it the wow factor.

Jas has added extra insulation under the floor

and gone for a top-end finish wherever he could.

But having paid double the original guide price

and the agent who came to see

suggesting the resale price of around £50,000,

I'm worried they have overspent.

The original budget was... we don't know what...

cos we weren't sure what was going to happen.

But after doing everything, the spend is about 34,000.

It's a little bit more than what I wanted to spend,

but I think it's worth what we spent.

Well, I seem to recall a budget of £7,000 being mentioned,

but I never thought that was a realistic figure.

Given the work that needed doing,

I'm not surprised that it's taken seven months.

But has Jas had any help from Hardy?

Hardy's role has mainly been silent partner.

We've gone 50-50 on it.

Originally I wanted to get him more involved,

but with his work he's just been a bit busy,

so I think he was happy staying a silent partner.

And what's the pair's plan for the property now?

We have been approached for rental already,

but I'd rather sell it and then move on to the next one.

So, Jas will want to know the price he can expect

on both markets,

which is where our local property experts come in.

What do they think of the flat,

starting with the agent who saw it when we couldn't even get inside.

We were dealing with something which was a total wreck.

It had to change in some way, didn't it?

Of course, we're stuck with an odd shape, really.

It's a wedge, so to put internal walls in

means you've got to have all sorts of curious angles,

and I think in truth, for the space that's here,

he's probably made the best out of it

that you could possibly achieve.

There's a lot of things they've done,

the architraves, skirting board, looks like good quality.

So, the quality of finish seems very good.

That's my initial impression.

I think the appeal of this property

will be mainly for the buy-to-let market.

Not having a garden is a good thing if you're a landlord.

I would say if I had to put money on it

that the buyer for this will be letting it out straightaway.

Speaking of money, Jas has spent a total of £66,000

purchasing and renovating this property.

What can it make on the sales market?

I suggest a sale price that would be achievable would be about £70,000.

This is based on the rental return.

On the current sales market, I think this probably would struggle

to achieve more than between £65,000 and £75,000.

Clearly, it might have an asking price in excess of that,

but at the end of the day I think that's where it's going to pan out.

I think they're a bit on the low side.

I think I can probably get a little bit more.

70 grand would generate just £4,000 in profit

before the usual taxes and expenses.

That's not great, so how about rentals?

I would say you'd rent it out at £475 a calendar month.

If the property were offered on the rental market,

I would suggest £475 per calendar month.

I was looking around about the 500 mark,

so 475, 500, it's about right.

£475 per calendar month gives Jas and Hardy

a yield of 8.5%,

but Jas is going to stick with selling and hopefully achieve more

than the agents' valuations.

Any profit will go into the next project,

and that's hopefully a little closer to home.

So, now, after this project

I'm looking at doing a complete build on my own home.

Might do another refurbishment in between.

Otherwise, the next couple of months we'll be starting

a build on our own house.

We visit auction houses all over the country.

-Yes, so next time we might be in your area.

-Yeah.

Wherever we are, you won't want to miss it.

-Goodbye.

-Goodbye.

-Bye.