Episode 13 Homes Under the Hammer


Episode 13

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Transcript


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Hello. Now, property auctions attract all sorts -

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from seasoned developers to property newbies.

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Yes, but whatever your level of experience,

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unexpected problems can always catch you out.

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

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

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

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two-down terrace houses to your plots of land

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where the world is your oyster.

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

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

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

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of potential, so what's the problem?

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It's that view!

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

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aren't that great either.

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It doesn't have such an aspirational view.

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

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

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

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All these properties were bought at auction.

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

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when these homes went under the hammer.

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Sold.

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This is Budleigh Salterton in East Devon - a glorious stretch

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of pebble beach still scattered with working fishing boats

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and a town centre that looks lost in time.

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

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

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

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Otterton has its own craft centre

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which bakes its own bread from wholemeal flour.

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This is traditional rural Devon and I love it.

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But will I love today's property?

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Well, the house sits on the outskirts of the village

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which means you get lovely rural views and also,

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it benefits from a quarter of an acre plot.

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

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

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

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

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But an odd entrance as well.

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

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although it feels more like a bedroom.

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And through into this area here which is

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the dining room/living area, I guess.

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Very dated kitchen off there,

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

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

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

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But one thing you can't get away from,

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it certainly makes the most of its location.

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Fantastic views out of the windows there.

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Which is just as well

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

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There's another downstairs room

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at the front which I guess is a bedroom.

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

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

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And another bedroom which is

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showing signs that all is not right with the roof.

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# Cos I smell a mean trouble

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

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The whole place smells mouldy and mildew-y

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

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Apart from the fact that the property is

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a little bit close to the road,

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

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

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

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but it's charming in its own way.

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Lots of little pathways leading to hidden...

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

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

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Birds tweeting, dappled sunlight, bluebells.

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I mean, yeah, it's lovely.

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Ah, rural bliss.

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This part of the world really is very special

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and having your own mini Devonshire woodland turns this slightly mouldy

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

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Ah, how lovely.

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

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awaits anyone that buys this place.

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

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

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and it isn't quite suitable?

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No. Nice view.

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Is it the fact that ideally

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

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Um, no, not that.

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Lovely open outlook.

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Is the fact that there might be issues underneath here or

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

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Not the view itself

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but the fact that local knowledge is a really important thing

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

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

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

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

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# Too close for comfort now. #

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We have all seen the devastation that flooding can cause

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

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when you look at properties.

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In 2012 this field was turned into a lake and while

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

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so definitely something to factor in.

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

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

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And particularly with regard to heating systems and wiring etc,

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

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to bring it up to a good modern standard.

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So what about forgetting the refurbishment

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and raising the place to the ground?

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It's a lovely plot.

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

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you could end up with a really special modern property,

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taking advantage of the outlook.

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Probably a reverse-level property whereby the reception rooms are

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

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

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Namely the flooding.

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What does the agent think about that particular problem?

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It is an issue. However, there are plans

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to carry out works further down the valley

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which should alleviate that problem if they come to fruition.

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But certainly there is a risk here

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and anybody refurbishing this property or indeed, knocking down

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

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But it's all doable.

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

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be worth all the hassle

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that either a full refurbishment or a rebuild would entail?

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If this were renovated to a good standard in its

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present configuration,

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

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If you were to knock the building down,

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put in a really nice four-bedroom detached property,

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

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Well, it's certainly a great location

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and a lovely part of the world.

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

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

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Let's hope whoever bought it has some ideas.

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

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135 is the lot number.

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Anybody want to start at 225?

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220? 210 or 200?

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No? OK.

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So, it was unsold in the room.

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# I need someone

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# Someone to love me... #

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

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for £204,000.

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

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Remember that wonky house in Paignton back in August 2012?

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Well, that was them.

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

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so keen on another challenge.

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

-Hello.

-Hi.

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-You're still standing then.

-Yeah, just about.

-Just about.

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

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a challenge, weren't you?

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

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

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

-Right.

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-New bedrooms, bathrooms, kitchen.

-Kept the roof and the back wall.

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

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Let's move on to this place.

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Yes. House Of Horrors 2.

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THEY LAUGH

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-The sequel.

-Yeah, the sequel, yeah.

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-Pretty much, yeah.

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

-It does, yeah.

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

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Well, it's the location.

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

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it's, you know, fantastic.

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

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

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-Our sort of first plan is to flatten it.

-Right.

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Raise the whole plot and, basically,

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build a bigger house further up the plot.

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Historically the floodwaters have literally lapped at the edge.

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

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if we're a metre or so higher,

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then hopefully that will be suffice with the Environment Agency.

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

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-No, we want to go...

-That way.

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

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

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

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more garden and amenity space.

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'And planning will be stringent. In particular,

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'the Environment Agency have certain criteria that must be met

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'for new builds built on or near floodplains.

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'Some are just recommendations such as,

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

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

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

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

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

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'before planning would be approved.'

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

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

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Habitat surveys and starting compiling what the planners need

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but, most notably,

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what they call a site-specific flood risk assessment

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

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and speaking to some architects.

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

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

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

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Talk me through the numbers.

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

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

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

-About 300.

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-Yeah, 300...to do it.

-High quality.

-Yeah.

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-Potentially we could walk away with about 100 each.

-Right.

-But...

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

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And then the absolute fallback is to take this property

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

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

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-A good 18 months project, I think.

-Well, listen, congratulations.

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-Good luck.

-Thanks, Martin.

-Thanks so much. Cheers.

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

-Excellent.

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-Thanks.

-Look forward to it. Cheers.

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

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

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

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Still...there are big profits to be made

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

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

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Regeneration is a real buzz word

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when you're deciding where to invest in property.

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And there are few areas where this is more applicable than

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North London's Tottenham.

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

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football stadium, which will also include a supermarket

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and 275 brand-new homes.

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However, this is just the tip of the iceberg.

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

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10,000 new homes and nearly

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a million square foot of employment space to the area.

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

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

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

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

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could be right up your street.

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Now, the guide price was £110,000

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and it's just through this doorway here.

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The outside may be a bit dated and humble,

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but the communal areas are kept well

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

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And straight into the flat.

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

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

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nice shiny new flat that looks recently decorated.

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

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

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

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could've been a little bit bigger.

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

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all singing and dancing.

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Really nice shower, new floor tiles.

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

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with a door leading off.

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And through into here a bedroom or a lounge.

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

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and increase the natural daylight.

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

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and therefore, it would just create a much better feel

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walking through that front door.

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

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so much more to this flat.

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

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

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

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

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Now, you could apply for retrospective planning

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but there is no guarantee you'll get it.

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

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

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

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Well, a bit of good news.

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This little London pad does have outside space,

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which is such a bonus.

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It doesn't have such an aspirational view.

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This concrete wall!

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

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

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

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

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We called in a local property expert to get the benefits

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of his specialist knowledge.

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

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You've got Bruce Grove on the left

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and you've got Tottenham Hill on the right.

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But downsides I would say is mainly the noise

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

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

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

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Regards to the sale price,

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

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

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achievable per calendar month.

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

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If you can get retrospective planning, well,

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this could be good value for money.

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

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Who was prepared to take on the challenge?

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Let's head to auction and find out.

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

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105. 105 is bid, thank you.

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106, do I see?

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

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

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

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121, back of the room for the first.

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At 121 for the second,

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third and final time at £121,000.

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That's yours at £121,000.

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The top bid came from Annesley,

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a former political adviser and Parliamentary candidate.

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His bidding campaign got him first past the post

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when the hammer fell at £121,000.

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Now he has decided on moving from politics to property.

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

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

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-Congratulations, Annesley.

-Thank you very much.

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So what I want to know is, what was

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

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Tottenham is undergoing a huge amount of regeneration,

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especially in light of the 2011 riots,

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

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

0:19:100:19:13

to invest in the area which is improving.

0:19:130:19:15

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

0:19:150:19:18

it will grow in desirability and in value.

0:19:180:19:22

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

0:19:220:19:24

Because I've known this area for so many years

0:19:240:19:27

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

0:19:270:19:30

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

0:19:300:19:34

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

0:19:340:19:37

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

0:19:370:19:40

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

0:19:400:19:44

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

0:19:440:19:47

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

0:19:470:19:50

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

0:19:500:19:53

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

0:19:530:19:58

But the planning problems, tell me more.

0:19:580:20:00

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

0:20:000:20:06

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

0:20:060:20:10

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

0:20:100:20:13

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

0:20:130:20:17

to have to be addressed in the next few weeks.

0:20:170:20:19

Do you think that may pose problems for you?

0:20:190:20:22

I mean, do you have a plan B?

0:20:220:20:23

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

0:20:230:20:26

is going to work.

0:20:260:20:27

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

0:20:270:20:31

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

0:20:310:20:34

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

0:20:340:20:37

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

0:20:370:20:41

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

0:20:410:20:44

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

0:20:440:20:48

# Plan B! #

0:20:480:20:50

Yep, always have a plan B.

0:20:500:20:52

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

0:20:520:20:56

on the close proximity of fast food outlets

0:20:560:20:58

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

0:20:580:21:02

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

0:21:040:21:07

Obviously, it didn't put you off

0:21:070:21:08

-finding out there were planning problems.

-Yes.

0:21:080:21:10

I did a little bit.

0:21:100:21:12

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

0:21:120:21:14

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

0:21:140:21:16

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

0:21:160:21:21

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

0:21:210:21:27

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

0:21:270:21:29

then I think it would certainly have more potential.

0:21:290:21:32

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

0:21:320:21:35

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

0:21:350:21:39

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

0:21:390:21:41

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

0:21:410:21:44

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

-It is.

0:21:440:21:48

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

0:21:480:21:52

Actually, I would leave the kitchen as it is,

0:21:520:21:54

maybe put a washing machine in there.

0:21:540:21:55

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

0:21:550:21:58

more integrated, become one room.

0:21:580:22:01

Yes, at the moment it's a bit disjointed

0:22:010:22:03

and layout is a bit awkward

0:22:030:22:04

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

0:22:040:22:07

but those are things that can be rectified fairly easily.

0:22:070:22:10

I gather that the walls are not supporting

0:22:100:22:13

so they should be able to be adjusted fairly easily.

0:22:130:22:17

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

0:22:170:22:20

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

0:22:200:22:22

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

0:22:220:22:25

Yes, that is something I also thought about.

0:22:250:22:28

'You know, I actually believe Annesley.

0:22:280:22:30

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

0:22:300:22:34

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

0:22:350:22:38

Just thought I'd mention it.

0:22:380:22:40

# Rumour has it

0:22:400:22:41

# Rumour

0:22:410:22:42

-# Rumour has it

-Rumour

0:22:420:22:44

# Rumour has it. #

0:22:440:22:45

-Now, I know you have a political background.

-Mm-hm.

0:22:470:22:50

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

0:22:500:22:53

OK. So, I worked as a political adviser,

0:22:530:22:55

I stood as a candidate myself for Parliament

0:22:550:22:57

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

0:22:570:23:01

I thought it time to take a break from that

0:23:010:23:03

and do something for myself.

0:23:030:23:05

And the great thing about this avenue is that I can

0:23:050:23:09

manage my own time, I've got the flexibility

0:23:090:23:12

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

0:23:120:23:15

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

0:23:150:23:19

and maybe come back to politics in the future.

0:23:190:23:21

So now you have it. What is your aim?

0:23:210:23:24

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

0:23:240:23:29

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

0:23:290:23:32

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

0:23:320:23:35

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

0:23:350:23:38

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

0:23:380:23:40

-I thought you might have said that!

-That's right.

0:23:400:23:42

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

0:23:420:23:45

I rely on reliable tradesman.

0:23:450:23:48

So your background in politics

0:23:480:23:49

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

0:23:490:23:52

No. Definitely not, no.

0:23:520:23:54

So may I ask your budget?

0:23:540:23:55

How much have you got to spend on this property?

0:23:550:23:58

I think including the planning application,

0:23:580:24:00

-I'd be looking at between £2-4,000.

-Which is fantastic!

0:24:000:24:03

It's very, very rare I ever meet

0:24:030:24:05

anybody that says between 2 and £4,000.

0:24:050:24:08

I can imagine, yes.

0:24:080:24:09

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

0:24:090:24:11

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

0:24:110:24:15

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

0:24:150:24:18

to be spent here.

0:24:180:24:19

So, what's your timescale for this?

0:24:190:24:23

The planning is somewhat in the hands of the council

0:24:230:24:26

and so the timing is slightly unpredictable

0:24:260:24:29

but I would've thought 6-12 weeks.

0:24:290:24:32

-Good luck with the outcome.

-Thank you.

-I hope it all works out.

0:24:320:24:34

-Lovely to meet you today.

-Lovely to meet you, thank you.

0:24:340:24:37

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

0:24:380:24:41

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

0:24:410:24:44

I just hope that planning permission

0:24:440:24:46

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

0:24:460:24:49

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

0:24:490:24:53

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

0:24:540:24:57

in Alvaston, Derby.

0:24:570:24:58

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

0:24:580:25:02

and I'm not doing that.

0:25:020:25:04

And when is a flat not a flat?

0:25:060:25:08

Annesley's having problems in Tottenham, London.

0:25:080:25:12

It was advised that we hold fire for the moment.

0:25:120:25:15

Back now to the picturesque Devonshire countryside

0:25:170:25:20

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

0:25:200:25:24

with views that did not disappoint.

0:25:240:25:27

Unfortunately though, the good news ended there.

0:25:270:25:30

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

0:25:300:25:34

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

0:25:340:25:37

Spacious but definitely downtrodden,

0:25:370:25:39

this house was also suffering quite seriously from damp

0:25:390:25:42

which leads me onto the next topic for discussion.

0:25:420:25:46

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

0:25:460:25:49

this whole property is in that floodplain.

0:25:490:25:53

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

0:25:530:25:57

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

0:25:570:26:01

# Go look at the weather

0:26:020:26:04

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

0:26:060:26:10

That was very worrying indeed.

0:26:100:26:13

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

0:26:130:26:17

with nightmare properties,

0:26:170:26:18

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

0:26:180:26:22

They paid £204,000 for this one

0:26:220:26:24

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

0:26:240:26:28

-Our sort of first plan is to flatten it.

-Right.

0:26:280:26:31

Raise the whole plot

0:26:310:26:32

and basically build a bigger house further up the plot.

0:26:320:26:35

Having done their local research, they found that the floodwaters

0:26:350:26:38

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

0:26:380:26:42

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

0:26:420:26:47

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

0:26:470:26:50

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

0:26:500:26:56

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

0:26:560:27:01

# I like the way you move

0:27:010:27:04

# I like the way you move... #

0:27:090:27:12

Wow!

0:27:120:27:13

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

0:27:130:27:17

there is now a fabulous four-bedroom,

0:27:170:27:20

and hopefully, future-proofed house.

0:27:200:27:23

This house optimises modern living,

0:27:230:27:25

with a spacious open plan kitchen and diner.

0:27:250:27:29

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

0:27:290:27:33

the solid oak decking, complete with hot hub,

0:27:330:27:37

and truly makes the most of the spectacular country views.

0:27:370:27:40

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

0:27:410:27:45

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

0:27:450:27:49

Yeah. We worked with the Environment Agency

0:27:490:27:52

and various different planning consultants

0:27:520:27:54

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

0:27:540:27:56

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

0:27:560:28:01

than the original finished floor level of the original house.

0:28:010:28:04

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

0:28:040:28:07

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

0:28:070:28:12

DANCE MUSIC BUILDS TEMPO

0:28:160:28:20

This house has been finished to the highest spec,

0:28:240:28:27

from the integrated appliances in the kitchen to the heating system

0:28:270:28:30

which can be controlled by phone or tablet.

0:28:300:28:33

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

0:28:350:28:39

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

0:28:390:28:42

To the left of that there is a small office.

0:28:420:28:45

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

0:28:450:28:49

Heading upstairs to the additional three bedrooms,

0:28:490:28:52

the master one here being the largest of the three with

0:28:520:28:55

a balcony overlooking the garden

0:28:550:28:56

and, again, that priceless rural landscape.

0:28:560:29:00

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

0:29:000:29:04

fitted with contemporary stainless steel fittings.

0:29:040:29:07

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

0:29:100:29:15

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

0:29:150:29:18

Along the hallway is the last bedroom

0:29:190:29:22

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

0:29:220:29:25

# Real, real love...

0:29:250:29:28

The final room up here is the master bathroom.

0:29:280:29:31

Its light contemporary finish

0:29:310:29:33

is fitting for this breathtaking family home.

0:29:330:29:37

The big surprise is that this beautiful house isn't

0:29:370:29:40

a development project after all.

0:29:400:29:43

Darren stepped aside

0:29:430:29:44

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

0:29:440:29:48

He has designed it quite beautifully to his own specifications.

0:29:480:29:52

However, getting to this stage has had its frustrations.

0:29:520:29:57

Yeah, the planning process was actually quite difficult.

0:29:570:29:59

There were problems with it being

0:29:590:30:01

an area of outstanding beauty and a conservation area.

0:30:010:30:04

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

0:30:040:30:08

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

0:30:080:30:11

in design and so on but in the end

0:30:110:30:13

I got pretty much what I was looking for.

0:30:130:30:15

An Area of Outstanding Natural Beauty designation means that there

0:30:150:30:20

are conservation rules due to its significant landscape value.

0:30:200:30:25

There are nearly 50 such areas across Britain

0:30:250:30:28

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

0:30:280:30:31

planning issues similar to those in national parks.

0:30:310:30:35

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

0:30:350:30:38

to keep it lovely.

0:30:380:30:40

That planning process did cost time.

0:30:400:30:42

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

0:30:420:30:46

while designs were being scrutinised by the planners

0:30:460:30:49

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

0:30:490:30:53

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

0:30:530:30:56

actually got planning so...

0:30:560:30:58

..a bit longer than I'd like.

0:30:590:31:01

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

0:31:020:31:07

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

0:31:070:31:09

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

0:31:090:31:14

and to an incredibly high standard.

0:31:140:31:16

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

0:31:160:31:19

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

0:31:200:31:23

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

0:31:230:31:26

and potentially sell for 650, 700.

0:31:260:31:29

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

0:31:290:31:34

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

0:31:340:31:37

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

0:31:370:31:39

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

0:31:390:31:42

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

0:31:420:31:47

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

0:31:500:31:55

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

0:31:550:31:59

a very expensive labour of love.

0:31:590:32:01

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

0:32:020:32:05

it's an absolutely fabulous property.

0:32:050:32:08

The layout is absolutely amazing in this property.

0:32:080:32:13

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

0:32:130:32:16

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

0:32:160:32:20

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

0:32:200:32:24

you look out of you can see straight down through.

0:32:240:32:26

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

0:32:260:32:30

The design is very interesting

0:32:300:32:33

but the owner has driven it to a different level with

0:32:330:32:36

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

0:32:360:32:40

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

0:32:400:32:43

It's outstanding.

0:32:430:32:44

Regarding the flooding issue here, the owner has given that

0:32:440:32:47

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

0:32:470:32:51

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

0:32:510:32:54

but I think the current owner,

0:32:540:32:56

what he's done here will allay peoples fears.

0:32:560:32:59

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

0:32:590:33:03

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

0:33:030:33:06

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

0:33:070:33:13

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

0:33:130:33:19

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

0:33:190:33:22

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

0:33:220:33:25

I'd be pretty happy too as that's

0:33:250:33:27

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

0:33:270:33:33

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

0:33:330:33:37

Derby has many things to be proud of.

0:33:440:33:46

It was a major player in the Industrial Revolution.

0:33:460:33:49

And it's still an engineering powerhouse today.

0:33:520:33:56

Manufacturers like Rolls-Royce and Toyota help this city produce

0:33:560:34:00

a vast amount of cars every year.

0:34:000:34:03

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

0:34:030:34:07

With great commuter links to the city,

0:34:070:34:09

it's always been a popular residential area.

0:34:090:34:12

The property I'm here to see

0:34:120:34:13

isn't your usual Homes Under The Hammer lot.

0:34:130:34:17

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

0:34:170:34:20

it hasn't been loved for some time.

0:34:200:34:23

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

0:34:230:34:28

I'm going to take a look inside.

0:34:280:34:29

OK.

0:34:330:34:35

Ah.

0:34:350:34:36

From...

0:34:360:34:37

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

0:34:370:34:41

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

0:34:410:34:47

But what I can see from my safe position

0:34:470:34:49

is a nice big space just there.

0:34:490:34:52

There is a room to the side as well,

0:34:520:34:55

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

0:34:550:34:58

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

0:34:580:35:01

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

0:35:010:35:04

Before filming, some local residents

0:35:060:35:08

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

0:35:080:35:11

and has probably been empty for the last 20 years.

0:35:110:35:14

I can't say for sure

0:35:160:35:17

if this building is still classified as a shop,

0:35:170:35:20

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

0:35:200:35:25

# Standing on the outside

0:35:250:35:29

# Looking in... #

0:35:290:35:31

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

0:35:310:35:33

that's classed as A1.

0:35:330:35:35

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

0:35:350:35:37

that's classed as A3.

0:35:370:35:39

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

0:35:390:35:43

The list just goes on and on.

0:35:430:35:45

What I would suggest is find out

0:35:450:35:47

what you want to use this property for,

0:35:470:35:49

get your application in and hope for the best.

0:35:490:35:52

That's about it for this property.

0:35:530:35:55

There's really not much more to say.

0:35:550:35:57

Perhaps the auctioneer who sold this property

0:35:590:36:01

has that little bit more to add.

0:36:010:36:04

It's not a busy trading area,

0:36:040:36:07

so my guess is that unless it was a specific trade

0:36:070:36:10

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

0:36:100:36:15

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

0:36:150:36:17

of a planning application to turn it into residential accommodation.

0:36:170:36:21

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

0:36:230:36:27

I think my only purpose would be

0:36:270:36:29

to go down the planning application route,

0:36:290:36:31

get residential change of use

0:36:310:36:33

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

0:36:330:36:37

And what sort of value might these options generate?

0:36:370:36:40

So, if it became a one-bedroom flat,

0:36:400:36:42

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

0:36:420:36:48

Against that income,

0:36:480:36:49

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

0:36:490:36:55

If it became a two-bedroom flat,

0:36:550:36:57

then you would have a monthly rental of something

0:36:570:37:00

in the order of £400, £420 maybe,

0:37:000:37:04

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

0:37:040:37:07

Having seen the inside of the property,

0:37:080:37:10

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

0:37:100:37:12

and that's just to get it safe.

0:37:120:37:14

With that guide price of £15,000,

0:37:140:37:16

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

0:37:160:37:19

I think it just might be, in this case.

0:37:190:37:21

Let's see who was up for the challenge

0:37:210:37:23

when it went under the hammer.

0:37:230:37:24

Lot number eight.

0:37:270:37:28

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

0:37:280:37:32

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

0:37:320:37:34

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

0:37:340:37:39

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

0:37:390:37:43

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

0:37:430:37:46

At £12,000

0:37:460:37:48

Despite the initial reluctance of the public to get involved,

0:37:480:37:50

this lot increased in value rapidly

0:37:500:37:53

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

0:37:530:37:57

30,000. Is that it?

0:37:570:37:59

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

0:38:000:38:05

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

0:38:050:38:09

500. I thought you might. 31.

0:38:090:38:12

31.5.

0:38:120:38:15

32.

0:38:150:38:16

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

0:38:180:38:24

Sold at 32,000. Thank you.

0:38:240:38:26

It was Jas who successfully bid on the property

0:38:280:38:31

on behalf of his son, Hardy.

0:38:310:38:34

I met up with Hardy for a chat on the pavement

0:38:340:38:37

to find out what his plans were.

0:38:370:38:39

-Hardy, nice to meet you, sir.

-Nice to meet you.

0:38:400:38:42

-Congratulations.

-Thank you.

0:38:420:38:43

We don't often do our interviews outside,

0:38:430:38:45

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

0:38:450:38:48

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

-Yeah.

0:38:480:38:52

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

0:38:520:38:53

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

0:38:530:38:55

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

0:38:550:38:58

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

0:38:580:39:02

-Yeah.

-But your dad paid a bit more.

-Yeah.

0:39:020:39:05

-He ended up paying just over double.

-He did.

0:39:050:39:07

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

0:39:070:39:10

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

0:39:100:39:12

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

0:39:120:39:15

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

0:39:150:39:17

Well, it's my first property venture,

0:39:170:39:19

and I've gone into partnership with him,

0:39:190:39:21

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

0:39:210:39:24

so it's just my first venture with him.

0:39:240:39:26

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

-Yeah.

0:39:260:39:29

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

-Really?

-Yeah.

0:39:290:39:32

-He knows his stuff then.

-Yeah, yeah.

0:39:320:39:34

# Stand by me

0:39:340:39:36

# Oh, stand by me

0:39:360:39:41

# Whoa, stand now

0:39:410:39:44

# Stand by me

0:39:440:39:46

# Stand by me... #

0:39:460:39:48

With Dad's experience to call on,

0:39:500:39:52

this first venture into the property developing world

0:39:520:39:55

shouldn't be too daunting for Hardy.

0:39:550:39:57

What exactly is his plan?

0:39:570:40:00

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

0:40:000:40:04

and then see if whether we could sell it on.

0:40:040:40:07

-Uh-huh.

-Make a decent profit on it.

0:40:070:40:09

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

0:40:090:40:12

but then rent it out.

0:40:120:40:14

Do you know what usage is in place?

0:40:140:40:16

Is it residential usage or is it commercial usage?

0:40:160:40:18

-We're not too sure at the moment.

-Not too sure.

-Yeah.

0:40:180:40:21

We're not sure what it was used for.

0:40:210:40:22

-HE LAUGHS

-So...

0:40:220:40:24

The council traced it back to 1970

0:40:240:40:26

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

0:40:260:40:28

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

0:40:280:40:30

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

0:40:300:40:32

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

0:40:320:40:34

and we've got good men on our side,

0:40:340:40:37

so they can probably get everything done.

0:40:370:40:39

-So, what do you do as a job?

-I work in IT, logistics company.

0:40:390:40:43

Monday to Friday, I'm usually there.

0:40:430:40:44

Then weekends I'm free,

0:40:440:40:46

so this will probably be a weekend venture for me.

0:40:460:40:48

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

0:40:480:40:51

to what you want it to be?

0:40:510:40:53

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

-OK.

0:40:530:40:56

Are you thinking what I'm thinking?

0:40:580:41:00

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

0:41:000:41:03

Apart from the usual kitchen and bathroom purchases,

0:41:030:41:06

this one is going to need walls,

0:41:060:41:08

floors, ceilings, electrics - the lot.

0:41:080:41:12

And if he overspends,

0:41:120:41:14

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

0:41:140:41:18

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

0:41:210:41:25

would you consider keeping it as a commercial unit?

0:41:250:41:27

Yeah, definitely.

0:41:270:41:28

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

0:41:280:41:31

Then there's still always the possibility of selling it

0:41:310:41:34

as a commercial as well.

0:41:340:41:35

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

0:41:370:41:40

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

0:41:400:41:43

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

0:41:430:41:47

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

0:41:470:41:51

Just a bit, because...

0:41:510:41:53

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

-Well, today.

-Just now, wasn't it?

0:41:530:41:56

Just now, basically, when we opened the doors.

0:41:560:41:59

And what are your thoughts?

0:41:590:42:00

Quite rough...to what I expected.

0:42:000:42:02

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

0:42:020:42:05

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

0:42:050:42:07

We just bought it straight from the auction,

0:42:070:42:09

so we didn't know what to expect.

0:42:090:42:11

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

0:42:110:42:13

What are the builders going to do?

0:42:130:42:15

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

0:42:150:42:18

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

0:42:180:42:22

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

0:42:220:42:26

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

0:42:260:42:29

with the rest of the work.

0:42:290:42:30

-That's the main thing at the start.

-Sounds like the right thing.

0:42:300:42:33

Prioritise safety, as always.

0:42:330:42:35

-Don't want accidents.

-Yeah, that's it.

0:42:350:42:38

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

-Yep. Thank you.

0:42:380:42:41

I think Hardy got a bit of a surprise

0:42:410:42:43

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

0:42:430:42:46

And they've definitely got the right idea.

0:42:460:42:48

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

0:42:480:42:52

Will it be commercial or will it be residential?

0:42:520:42:54

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

0:42:540:42:57

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

0:43:010:43:03

What about the other two?

0:43:030:43:05

Have they been bogged down by problems

0:43:050:43:07

or has it been a walk in the park?

0:43:070:43:08

Well, I'm keen to find out.

0:43:080:43:10

Back now to North London - Tottenham to be precise -

0:43:110:43:14

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

0:43:140:43:18

bought for £121,000.

0:43:180:43:20

At first sight, a bargain. But...

0:43:200:43:24

When this building was converted into three flats,

0:43:240:43:27

the planning permission was never, ever granted.

0:43:270:43:31

Now, you could apply for retrospective planning,

0:43:310:43:34

but there is no guarantee you'll get it

0:43:340:43:36

and this is potentially a very big issue

0:43:360:43:39

that will have an impact on the value and mortgageability

0:43:390:43:42

of this one-bed property.

0:43:420:43:44

MUSIC: Blockbusters theme tune

0:43:440:43:46

Undeterred was Annesley,

0:43:460:43:47

who having swapped politics for property

0:43:470:43:49

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

0:43:490:43:54

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

0:43:540:43:58

and had about 100 in his collection -

0:43:580:44:01

often sourced from the original composer.

0:44:010:44:04

But I wanted to test him on one specialist subject.

0:44:040:44:09

The planning problems, tell me more.

0:44:090:44:11

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

0:44:110:44:16

in this building was in 1950,

0:44:160:44:18

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

0:44:180:44:21

to convert into residential use and that's something

0:44:210:44:24

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

0:44:240:44:26

Do you have a plan B?

0:44:260:44:28

I don't really have a plan B

0:44:280:44:29

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

0:44:290:44:31

Always risky, Annesley.

0:44:310:44:34

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

0:44:340:44:37

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

0:44:370:44:42

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

0:44:420:44:45

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

0:44:470:44:50

It's a bit bijou,

0:44:500:44:52

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

0:44:520:44:54

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

0:44:560:44:59

# I know, I know, I know

0:45:010:45:04

# That I ain't got far to go

0:45:040:45:06

# I know... #

0:45:060:45:09

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

0:45:090:45:12

with new electric radiator and carpet

0:45:120:45:15

to make the space more homely.

0:45:150:45:16

Bedroom one is still bedroom one.

0:45:210:45:23

It too has a new electric radiator panel and carpet.

0:45:280:45:32

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

0:45:330:45:37

The bathroom is pretty much as it was.

0:45:380:45:40

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

0:45:420:45:46

and the important matter of the new sofa.

0:45:460:45:49

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

0:45:510:45:54

by moving the door to the second room to the left

0:45:540:45:58

and making a platform which comes out into the kitchen

0:45:580:46:02

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

0:46:020:46:06

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

0:46:060:46:10

But why the kitchen?

0:46:100:46:12

The reason why we created a living area in the kitchen

0:46:120:46:15

is because the second room

0:46:150:46:16

that was going to be the living area originally

0:46:160:46:18

is now going to be a bedroom,

0:46:180:46:20

and for renting we thought we can maximise income

0:46:200:46:23

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

0:46:230:46:26

But the preferred option was to sell on

0:46:260:46:29

after getting planning permission for change of use,

0:46:290:46:32

so what happened?

0:46:320:46:34

We spoke to a planning advisor and he recommended that

0:46:340:46:38

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

0:46:380:46:41

The freeholder of the building has just bought the freehold

0:46:410:46:44

and we can't do anything until he comes forward

0:46:440:46:47

and we work together to put an application in.

0:46:470:46:49

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

0:46:490:46:51

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

0:46:510:46:55

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

0:46:550:46:58

MUSIC: ITV News theme

0:46:580:47:00

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

0:47:000:47:03

so what news is there of plan B?

0:47:030:47:06

So, given the planning issues,

0:47:060:47:08

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

0:47:080:47:11

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

0:47:110:47:15

We can then put a collaborative planning application in.

0:47:150:47:18

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

0:47:180:47:24

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

0:47:240:47:27

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

0:47:270:47:31

-especially as he didn't have one.

-MUSIC: The A-Team theme

0:47:310:47:33

We asked two estate agents to spin around and give us

0:47:330:47:36

their valuations for the flat.

0:47:360:47:38

Now, we have lots of valuations to get through,

0:47:400:47:42

so pencils and paper at the ready.

0:47:420:47:45

First off, the valuation

0:47:450:47:47

in the flat's current unmortgagable state.

0:47:470:47:50

Without planning permission,

0:47:500:47:52

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

0:47:520:47:55

I would suggest around £180,000.

0:47:550:47:58

Without the planning permission,

0:47:580:48:00

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

0:48:000:48:04

Well, that's still quite a gain.

0:48:040:48:06

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

0:48:060:48:12

an increase of £57,000.

0:48:120:48:15

Now, what if Annesley can make the flat mortgageable?

0:48:150:48:18

With planning permission,

0:48:180:48:20

this property will achieve approximately around £270,000.

0:48:200:48:25

I think with planning permission on a sellers market,

0:48:250:48:28

we'd look to achieve around £275,000.

0:48:280:48:31

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

0:48:310:48:35

more than double the flat's value

0:48:350:48:37

without planning permission to be a flat.

0:48:370:48:40

How does that feel?

0:48:400:48:42

I'm pleased about that

0:48:420:48:44

and it makes me more confident moving forward.

0:48:440:48:47

-MUSIC: The Magic Roundabout theme

-Now, to the rental values.

0:48:470:48:50

Annesley has already marketed the flat to rent

0:48:500:48:52

and has had much interest.

0:48:520:48:54

His tenants are due to move in shortly.

0:48:540:48:56

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

0:48:560:48:59

I think on the rental market

0:48:590:49:00

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

0:49:000:49:04

This would achieve £1,100 per calendar month.

0:49:040:49:08

-MUSIC: The Bill theme tune

-In fact, Annesley got the top end

0:49:080:49:10

of those figures, getting £1,350

0:49:100:49:14

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

0:49:140:49:19

So, how has the foray into property been?

0:49:190:49:22

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

0:49:240:49:27

I think one has to bear in mind

0:49:270:49:28

that you have to be flexible in your approach.

0:49:280:49:30

Initially I thought I was going to sell it on.

0:49:300:49:32

Now I'm going to rent it out

0:49:320:49:33

given the circumstances we've talked about.

0:49:330:49:35

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

0:49:350:49:38

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

0:49:380:49:42

and that certainly gave me a head start,

0:49:420:49:45

and I would recommend it to anybody else

0:49:450:49:48

who wants to go into it.

0:49:480:49:49

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

0:49:490:49:53

I'd like to see how this goes first

0:49:530:49:55

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

0:49:550:49:58

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

0:49:580:50:03

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

0:50:030:50:07

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

0:50:070:50:09

That's the plan.

0:50:090:50:11

MUSIC: Original ITN News theme

0:50:110:50:12

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

0:50:120:50:15

Did Annesley manage to name

0:50:150:50:17

all the TV theme tunes we used in his film?

0:50:170:50:20

Somehow, I think he probably did.

0:50:200:50:23

We are heading back to Derby and the area of Alvaston

0:50:300:50:33

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

0:50:330:50:39

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

0:50:400:50:46

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

0:50:460:50:51

Ah. From...

0:50:510:50:53

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

0:50:530:50:56

there's holes in the floorboards.

0:50:560:50:59

I can't really tell you any more than that

0:50:590:51:02

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

0:51:020:51:05

# You can look but you better not touch, boy

0:51:050:51:08

# You can look Better not touch

0:51:080:51:11

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

0:51:110:51:15

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

0:51:150:51:17

Safety first is what I say,

0:51:170:51:19

But Hardy and his dad Jas threw caution to the wind

0:51:190:51:22

when they paid £32,000 at auction.

0:51:220:51:25

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

0:51:270:51:30

and Hardy had seen even less.

0:51:300:51:33

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

-Today.

-Just now, wasn't it?

0:51:350:51:38

Just now, basically, when we opened the doors.

0:51:380:51:40

And what are your thoughts?

0:51:400:51:42

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

0:51:420:51:44

We just bought it straight from the auction,

0:51:440:51:46

so we didn't know what to expect.

0:51:460:51:48

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

0:51:500:51:53

the property into a one or two-bed flat.

0:51:530:51:56

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

0:51:560:52:00

# I'm ready

0:52:010:52:03

# I'm ready for it

0:52:030:52:05

# I'm ready... #

0:52:050:52:07

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

0:52:070:52:11

that's really in keeping with the area.

0:52:110:52:14

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

0:52:140:52:18

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

0:52:180:52:22

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

0:52:240:52:28

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

0:52:280:52:31

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

0:52:330:52:37

What was a collapsing roof now has stylish skylights

0:52:370:52:41

to let in natural light that would otherwise be impossible

0:52:410:52:44

as the property doesn't have rear windows.

0:52:440:52:47

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

0:52:480:52:53

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

0:52:530:52:56

how he turned to this shell into something swell.

0:52:560:52:59

We had to apply for planning permission

0:53:020:53:04

because we applied for planning for change of use

0:53:040:53:07

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

0:53:070:53:10

"but you didn't really need it

0:53:100:53:12

"because the building was derelict for so long."

0:53:120:53:14

And then we started on the roof originally.

0:53:140:53:16

While we done that, started taking the walls down,

0:53:160:53:18

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

0:53:180:53:21

After that, we made the foundations strong,

0:53:210:53:24

put insulation in the floor

0:53:240:53:27

and then started building the brickwork back up.

0:53:270:53:29

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

0:53:290:53:33

but they done a good job.

0:53:330:53:35

They certainly have.

0:53:350:53:37

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

0:53:370:53:42

Originally, we were going to do a felt roof,

0:53:420:53:44

but then when we got into building regulations and things,

0:53:440:53:47

they said, you know,

0:53:470:53:49

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

0:53:490:53:53

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

0:53:530:53:57

cos we've got no rear windows.

0:53:570:53:59

So, we shopped around, found some skylights.

0:53:590:54:02

Looked into the rubber roof.

0:54:020:54:04

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

0:54:040:54:07

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

0:54:070:54:11

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

0:54:110:54:14

that also gives it the wow factor.

0:54:140:54:17

Jas has added extra insulation under the floor

0:54:170:54:20

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

0:54:200:54:23

But having paid double the original guide price

0:54:230:54:26

and the agent who came to see

0:54:260:54:28

suggesting the resale price of around £50,000,

0:54:280:54:31

I'm worried they have overspent.

0:54:310:54:33

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

0:54:330:54:38

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

0:54:380:54:41

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

0:54:410:54:44

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

0:54:440:54:46

but I think it's worth what we spent.

0:54:460:54:50

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

0:54:500:54:53

but I never thought that was a realistic figure.

0:54:530:54:56

Given the work that needed doing,

0:54:560:54:58

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

0:54:580:55:01

But has Jas had any help from Hardy?

0:55:010:55:04

Hardy's role has mainly been silent partner.

0:55:040:55:08

We've gone 50-50 on it.

0:55:080:55:09

Originally I wanted to get him more involved,

0:55:090:55:12

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

0:55:120:55:14

so I think he was happy staying a silent partner.

0:55:140:55:18

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

0:55:200:55:24

We have been approached for rental already,

0:55:240:55:27

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

0:55:270:55:31

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

0:55:330:55:36

on both markets,

0:55:360:55:37

which is where our local property experts come in.

0:55:370:55:40

What do they think of the flat,

0:55:400:55:42

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

0:55:420:55:46

We were dealing with something which was a total wreck.

0:55:470:55:50

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

0:55:500:55:52

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

0:55:520:55:54

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

0:55:540:55:57

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

0:55:570:55:59

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

0:55:590:56:02

he's probably made the best out of it

0:56:020:56:04

that you could possibly achieve.

0:56:040:56:06

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

0:56:060:56:08

the architraves, skirting board, looks like good quality.

0:56:080:56:11

So, the quality of finish seems very good.

0:56:110:56:13

That's my initial impression.

0:56:130:56:14

I think the appeal of this property

0:56:140:56:16

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

0:56:160:56:19

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

0:56:190:56:22

I would say if I had to put money on it

0:56:220:56:24

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

0:56:240:56:27

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

0:56:290:56:34

purchasing and renovating this property.

0:56:340:56:36

What can it make on the sales market?

0:56:360:56:39

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

0:56:390:56:45

This is based on the rental return.

0:56:450:56:47

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

0:56:470:56:52

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

0:56:520:56:56

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

0:56:560:56:58

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

0:56:580:57:02

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

0:57:020:57:05

I think I can probably get a little bit more.

0:57:050:57:09

70 grand would generate just £4,000 in profit

0:57:090:57:13

before the usual taxes and expenses.

0:57:130:57:15

That's not great, so how about rentals?

0:57:150:57:19

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

0:57:190:57:22

If the property were offered on the rental market,

0:57:220:57:25

I would suggest £475 per calendar month.

0:57:250:57:28

I was looking around about the 500 mark,

0:57:280:57:31

so 475, 500, it's about right.

0:57:310:57:35

£475 per calendar month gives Jas and Hardy

0:57:350:57:40

a yield of 8.5%,

0:57:400:57:42

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

0:57:420:57:45

than the agents' valuations.

0:57:450:57:47

Any profit will go into the next project,

0:57:470:57:49

and that's hopefully a little closer to home.

0:57:490:57:51

So, now, after this project

0:57:510:57:53

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

0:57:530:57:57

Might do another refurbishment in between.

0:57:570:58:00

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

0:58:000:58:03

a build on our own house.

0:58:030:58:04

We visit auction houses all over the country.

0:58:070:58:10

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

-Yeah.

0:58:100:58:13

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

0:58:130:58:15

-Goodbye.

-Goodbye.

-Bye.

0:58:150:58:16

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