Episode 32 Homes Under the Hammer


Episode 32

Property renovation series. A former dental surgery in Bexhill-on-Sea, East Sussex, a semi in Canterbury and a wonky house in Swadlincote, Derbyshire, are all sold at auction.


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Transcript


LineFromTo

Hello and welcome to the show.

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Now, sometimes buying property can be a bit of an intimidating process.

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Yeah, it can be slow and difficult,

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but if you want the keys to your property quickly,

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-there is something you can try.

-Oh, yes, Dion, that's right.

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You can own your property in just 28 days

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if you buy your home under the hammer.

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These gardens must take such a lot of hard work,

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but it's so worth it, isn't it?

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Yeah, they are, they're fantastic,

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but, as you know, property can be creative and rewarding,

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just like gardening.

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-Are you a bit of a gardener?

-I am indeed and you know what?

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I'm a property person, too, and maybe the properties

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on today's show inspired THEIR new owners.

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In East Sussex, why, oh, why are things just never straightforward?

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Potentially, this could get very complicated.

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Whereas in Kent,

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is it WORTH making this renovation a bit more complicated?

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On the face of it, I would say...yeah, I think it probably is.

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But in Derbyshire,

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I feel now I'm really getting into the swing of things.

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You can clearly see that it's not good.

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All these properties have been sold at auction.

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

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when they went under the hammer.

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Yours, madam. Thank you.

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You might have guessed by its name, but Bexhill-on-Sea

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is a popular seaside town in East Sussex.

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It's quite a relaxing place to be

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and a 2009 survey claimed it enjoyed an extra four hours of sunshine

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per week from the average seaside town in the UK.

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Well, I've travelled a few miles from Bexhill

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to a little village called Little Common,

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which has its own small high street and local amenities.

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This residential road looks like any ordinary small-town street,

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but all isn't quite what it seems.

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-# It's just an illusion

-Could it be that...? #

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Now, I say residential road, so you might assume I'm here to see

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one of these - a bungalow - or a house along here.

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Well, yes, I am, but with a difference.

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The property I'm here to see had a guide price

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of 150,000 to £190,000 and it's this.

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Looks like an unassuming bungalow with a garage on the side,

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but, in actual fact, it's a former dentist surgery

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with D1 business classing.

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Surprise!

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-# It's just an illusion

-Oo-oo-oo-oo-ah

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-# Illusion

-Oo-oo-oo-oo-ah

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# Illusion... #

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So, behind the ordinary-looking bungalow frontage

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is a business premises.

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Clearly, this was originally a residential property,

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so it'll be interesting to find out what's going on inside.

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Well, this is a jolly long yellow corridor.

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And a little quirk for you -

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exterior garage door, but look -

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this room has already been converted.

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I think I'd like to get permission to actually put

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a window in there to make it a big, lovely, sunny, solid room.

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Now, something that does concern me -

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there's water all along here and this wall is really damp.

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It's wet. Has one of the radiators been leaking? I'm not sure.

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You can tell it was a commercial property.

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You've got strip lighting, signage everywhere.

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That would have been a loo.

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That's not a bad size reception room.

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And in here, aha!

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Look, she's got a nice pair of teeth.

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You can tell this was obviously the waiting room. A nice space.

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You've got loads of sun coming in,

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because an additional little conservatory has been added on.

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Central heating's already in place.

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Over here, look, you can see this would have been the reception area.

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So, not bad at all. Good spaces.

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You know, normally I get really nervous going to the dentist,

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but I feel all right today.

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Ha-ha, yes, I'm actually all smiles about this place.

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Apart from getting a change of use back to residential,

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there is nothing here that frightens me.

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Yes, the business signs all need extracting

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and the flooring could do with some filling in.

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There's also more than a bit of spit and polish needed throughout,

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but, from what I can see so far,

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I think this is a tasty-looking refurbishment project

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and could be well worth investing in.

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# Put your money where your mouth is... #

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Now, when I view commercial properties,

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I will usually pre-warn you that conversion to residential

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is not guaranteed.

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It's all dependent on getting that all-important planning permission

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from the local authority.

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However, on this occasion,

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well, I really don't think it'll be too much of a problem.

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This is a residential area and this bungalow

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was formally someone's home.

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For me, well, it should be a home once again.

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I think it would make the most sense here.

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With the change of use sorted, it should all be very straightforward.

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Heh - no, of course not!

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Now, this portion of land at the front here wasn't actually

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sold with the bungalow at auction.

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It's owned by somebody else.

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A bit bizarre that, isn't it?

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Yes, I know, and I'm sure this grey area would have put some

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potential buyers off on auction day.

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So, what are your options here?

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Well, the best way to resolve this would be to contact the landowner,

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negotiate a price and then buy it off them.

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However, that could be easier said than done.

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Firstly, you'd need to find the contact details of the owner

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and, once that's done, they'll need to be willing to negotiate

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a fair price and sell it to you.

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Potentially, this could get very complicated.

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# How bizarre

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# How bizarre, how bizarre... #

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Mm, yes, it is a little confusing.

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Why sell off a property without selling off some of the garden,

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particularly when the triangle of land itself

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isn't big enough to build on?

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The good news, though, is the new owner of the bungalow does

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have right of access across the land and if the driveway

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could be moved across to the far left corner, this odd triangle

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of land wouldn't actually be significant.

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It's an oddity and undoubtedly will scare some potential buyers off.

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# How bizarre, how bizarre... #

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But what can a local estate agent tell us about the area

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and his thoughts about this slightly unusual lot?

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Best option for this property

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would be to turn back to residential.

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In my opinion, I don't think there is a market

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for commercial in this area.

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Yes, but that Bermuda Triangle of land?

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How much of an issue might that be?

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Not owning that little bit of land at the front could affect the

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saleability slightly, but I think the best thing, in my opinion,

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would be...is to just create some sort of flowerbed and have it

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so it's not a usable piece of land.

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Move the driveway slightly

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and then I don't think it would cause too many problems.

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OK, so, from shapes to figures,

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what might this lot, that was guided at 150 to 190,000,

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be worth as a three-bed residential property?

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I would estimate the property to be worth in the region

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of £350,000 once it is fully renovated.

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And rental?

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I would estimate the rental value, once renovated,

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to be in the region of £1,000 per calendar month.

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This is a really good property and, well, I think it's in

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a decent street and I don't think it's going to take too much work

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to turn this into a lovely home.

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So, who had the wisdom to take it on?

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

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Lot 27.

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Freehold detached former dental surgery here, ladies and gentlemen.

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Potential for change of use subject to obtaining all necessary consent.

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Dental surgery, ladies and gentlemen. Start me at 230.

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190. I'll start on the proxy here, ladies and gentlemen. 190,000.

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Who'll give me five?

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Yep, 95 at the back. 200, may I say?

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That'll be the proxy. 200? Thank you.

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200. 205, madam?

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205, thank you.

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210? 210? 15?

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15 and 20?

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20? 25? 230?

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230, thank you. 230.

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235? 235? 240?

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240? And five with the lady. Thank you. 245.

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50? What about two and a half?

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Come on. No, I'll take 246, go on.

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Madam, 247?

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247. 248? No, thought not.

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247 with you.

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I'm pretty sure it's yours now for the first, second,

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third and final time.

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At 247 with the lady.

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Sold to you, madam. Thank you.

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And after a fair amount of toing and froing,

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the hammer fell at 247,000

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and the successful bidder for the Bexhill bungalow was Vanessa.

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Vanessa, along with her three children,

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own and run a property developing company.

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She and her partner Paul joined me back at the bungalow and it

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was time for me to drill down on their plans.

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-Vanessa and Paul, congratulations.

-Thank you.

-Thank you.

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So, here we are in the dentist! A bit scary, isn't it?

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VANESSA CHUCKLES

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So, tell me the story. Why did you want to buy this?

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Got a few property rentals in Bexhill. I just really...

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I really love this area.

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I thought it would be a really good rental or for sale, so yeah,

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-sort of took the plunge.

-And this is kind of what you do,

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you do buy and sell properties anyway, don't you?

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Yeah. After my divorce, I've got three children,

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and I just sort of formed a property development company and we just...

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this is our 13th house we've renovated.

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-In how long? 13 in how many years?

-Three years.

-Wow!

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-It's been quite quick.

-That is amazing!

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So, how have you managed to plough your way through them?

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Have you, like, bought them and sold them all on?

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No, I've got five that rent and then the rest I've bought and sold,

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so, yeah, I've still got another couple that I'm just selling now.

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One I'm finishing, one's up for sale.

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And how involved do your children actually get?

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-Erm, quite a lot in the beginning.

-Yep.

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They like stripping out and my daughter loves painting,

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so she's the painter.

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We just, like, plod on, really. When I get stuck, I ask Paul.

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So Paul, what's your involvement? Come on, tell me.

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-Just the electrician and lending a hand.

-"Just!"

-"Just!"

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-Super-handy for you, Vanessa.

-Very!

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'Yes, having Paul's electrical skills,

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'daughter Rebecca's painting skills and getting help from her two

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'other kids has clearly paid dividends so far for Vanessa,

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'with those 13 properties tackled by the family firm.

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'But this bungalow does pose a few more challenges than your

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'conventional property purchase.'

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-Now, it's obviously got D1 usage at the moment.

-Yeah.

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Do you think there's going to be any problems

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switching it over to residential?

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Well, I'm hoping not, cos it was residential before.

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It was a two-bed bungalow, so it's going to be

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a three-bed bungalow, cos they got the garage converted,

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so that's the first thing, change of use.

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So, how much research did you both do with this?

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-Did you read the legal pack? Did you view the property first?

-Absolutely.

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We did it all. Did it all, yes.

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I know that that piece of land isn't mine at the front.

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So, what difficulty is that going to bring to this property?

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Well, I'm going to try and get hold of the owner and see if they

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will sell that little triangle.

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Meanwhile, I will ask the council to perhaps lower the kerb

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so I can come in on the other separate piece and then it

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doesn't really matter, to be honest.

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'Now, that's certainly the benefit of doing your homework.

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'Vanessa is a thorough lady, so I'm guessing she's planned how

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'she will turn this back into a home.'

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Replaster everywhere, new floors, new kitchen, new bathroom,

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obviously the garage door's going. New window there.

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Just the works, basically.

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So, come on, how much are you going to spend?

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It all depends on the driveway, and there has been

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a leaky roof in the conservatory,

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but I reckon probably about 25.

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So, how long do you think this is going to take you, this project?

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-It's got to be at least eight months.

-Really? So it's not quick?

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It's not quick, no.

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It does take time, cos we do a lot of the work ourselves and

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really get our hands dirty, so, no - about eight months.

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So, when you say you do the work yourself,

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-is this for you, now, your job?

-Yes.

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You wake up, you're on site, you're here with the builders every day?

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-Yeah.

-Yeah.

-Well, not builders. It's me.

-We are!

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-So, who will be fitting the kitchen and fitting the bathroom?

-I will.

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-So you'll be doing all of that?

-Yeah.

-We will.

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-And do you save so much money by doing it yourselves?

-Yes.

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Even though it takes you so much longer than getting a team in,

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-I'm sure?

-Yeah, that is...

-You've got to weigh that up.

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Yes, I know, and that might be something I change,

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but I started small. I'm building up.

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And you're doing really, really well by the sounds of things.

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Yeah, it's doing well.

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I'm really pleased and I cannot wait to see what you do here.

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-Eight months.

-Yeah.

-Yeah.

-We'll be back.

-At least!

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-LAUGHTER

-Well done, guys.

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-It's a really good buy.

-Thank you.

-Thank you.

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So, in three years, Vanessa has gained

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plenty of renovation experience

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and she's got the help of Paul and her family ready

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and raring to go with this latest project.

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I just hope she gets permission to drop that kerb

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and it isn't like pulling teeth.

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Join me later in the programme and you can find out how she gets on.

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Time now for a Canterbury Tale and there are many of those in

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this historic Kent city, with its famous cathedral being

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a place of pilgrimage since Medieval times.

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But, today, my path leads me just out of the city centre.

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Well, this particular road isn't exactly steeped in history and

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there's certainly no getting away from the fact that you are

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very close to an educational establishment,

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but the property I'm here to see sounds promising.

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190 to £200,000 for this, a three-bedroom semidetached.

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Built in the 1960s,

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this was formerly the school caretaker's house.

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Set back from the road and with a garage, it already seems like

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a lot of property for that 190 to £200,000 guide price.

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So, will the inside also make me think that this house

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has a positive future?

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Yes, it's bright, but that's good. We like a nice bright entrance hall.

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Absolutely marvellous.

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Stairs up to your bedrooms there and space where you can put things

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when you come through the door.

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Through from there into the lounge.

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Now, that is interesting.

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A colour combination I've not seen before on a fireplace.

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Er, sort of, what's that? Oxford blue and black.

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Nice, big windows.

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It looks like they're metal-framed ones, so double glazing is required.

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And then a mysterious door.

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Hm-hm, what's behind here? Cupboard space, perhaps?

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Views of the Serengeti?

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Doo-doo-doo... Wheeow!

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Nope, it's the dining room. Look at that.

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Absolutely marvellous.

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A fairly standard layout for a 1960s semi and we're liking it so far.

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Well, even with the boarded-up windows,

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this is actually quite a light, airy space.

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And the kitchen? Well, that's not bad.

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It's a decent size with decent units.

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Maybe the flooring could be improved, though.

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A lick of paint, possibly change the tiling,

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but, really, it is in pretty good fettle.

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Upstairs in what is a very serviceable house,

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you know, it's well-designed.

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Landing area here, you've got your bathroom where you hope it would be,

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at the top of the stairs.

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It needs a bit of modernisation, of course.

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Then through into the bedroom.

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All the bedrooms, it's fair to say, a good size.

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Two at the front and this one at the back.

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A bit of built-in cupboardage, which is always good

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and views out across the garden,

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-so, all in all...

-HE EXHALES

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..you know, it's... It does what it's supposed to do.

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It's a good-size family home.

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Yes, you've seen this before.

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A solid three-bed semi in reasonable order,

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which just needs some updating. Nothing more, nothing less.

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# I am what I am

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# I am what I am... #

0:16:180:16:23

Well, at the side of the property,

0:16:230:16:25

this single-storey outbuilding contains a loo.

0:16:250:16:28

Now, that is interesting, but what is more interesting would be to

0:16:280:16:32

build some kind of extension either on the side -

0:16:320:16:35

two-storey, perhaps - or at the back.

0:16:350:16:37

The nice thing is, once you take off those boards

0:16:370:16:39

from the rear property, you have actually

0:16:390:16:41

got instant access to this, which is a really nice-sized family garden.

0:16:410:16:45

Is that worth doing?

0:16:450:16:46

Don't know, you'd need to check local property prices.

0:16:460:16:49

On the face of it, I would say...yeah, I think it probably is.

0:16:490:16:52

And with a single-storey extension already in place and not

0:16:520:16:55

being one of Canterbury's historic buildings, I suspect planning

0:16:550:17:00

for a rear or side extension wouldn't be too problematic.

0:17:000:17:04

It will slow the refurbishment down, though, and would add to the

0:17:040:17:07

budget, so costs versus return do need to be considered.

0:17:070:17:12

Let's chat to a local estate agent to see what he thinks.

0:17:120:17:15

It's always worthwhile extending a property and adding value to it.

0:17:150:17:19

Certainly, when I first viewed the property,

0:17:190:17:21

I thought we could extend outwards as well

0:17:210:17:23

and that would give the kitchen

0:17:230:17:25

a bit more room and make a kitchen-dining area.

0:17:250:17:28

And, with what was a 190 to £200,000 guide price,

0:17:280:17:32

how would the numbers stack up?

0:17:320:17:34

I would put this property on the market at the moment for £230,000.

0:17:360:17:40

I would rent the property with a little bit of work at

0:17:400:17:43

about £1,000 per calendar month.

0:17:430:17:45

If extended and resold, I would sell this property at £250,000.

0:17:450:17:50

Well, a nice enough place

0:17:560:17:57

that doesn't need too much work to sort it out.

0:17:570:18:00

Obviously, a bit of a disadvantage that it's

0:18:000:18:02

so close to the educational establishment and it would be

0:18:020:18:05

ideally built in the 1600s rather than the 1960s,

0:18:050:18:08

but not to worry - I'm sure someone still loved the idea of

0:18:080:18:11

taking it on when it went under the hammer.

0:18:110:18:14

Over the page for the last time today for the last two lots.

0:18:170:18:20

Lot 83 is the first one.

0:18:200:18:22

It's a semidetached property with three bedrooms.

0:18:220:18:25

Needs some improvement. It's over on the east side of Canterbury.

0:18:250:18:28

Start me at 180, then.

0:18:280:18:29

180, I'm on the way. At the back, 180 I have.

0:18:290:18:31

185 I want and now I've got it. Sitting in the front row.

0:18:310:18:35

190. It's against you.

0:18:350:18:36

185 I've got. 188 I'll take if it helps.

0:18:360:18:39

188, it does. 190 if you like. 190.

0:18:390:18:43

So, despite being the penultimate lot of the day, competition was

0:18:430:18:46

fierce for the Canterbury property and we rejoin the auction

0:18:460:18:50

with bids now at 220,000.

0:18:500:18:52

220. And two. 222.

0:18:530:18:57

222.

0:18:570:18:59

And four. 224. And six.

0:18:590:19:02

226.

0:19:020:19:03

And eight? 228. 230. And two again?

0:19:030:19:07

232. And four?

0:19:080:19:09

234?

0:19:090:19:10

At £232,000 and sitting right at the back for the first time.

0:19:110:19:15

232 for the second.

0:19:150:19:17

232. If you are sure you're all done and all out,

0:19:180:19:21

third and final time...

0:19:210:19:23

£232,000...

0:19:230:19:26

And so, for £232,000,

0:19:260:19:28

the new owner of the three-bed Canterbury semi is Hari.

0:19:280:19:31

Hari knows the location well and also owns

0:19:320:19:35

a couple of rental properties in the area.

0:19:350:19:37

I met him back at the house to find out what he planned for this one.

0:19:370:19:41

-Great to meet you.

-It's very nice to meet you, Martin.

0:19:410:19:44

Congratulations.

0:19:440:19:45

-Thank you very much.

-Tell me why you wanted to buy this house.

0:19:450:19:48

-I want to make it a four-bed student let...

-Oh, wow.

0:19:480:19:51

..or possibly professional.

0:19:510:19:53

I haven't decided what I'm going to do yet.

0:19:530:19:55

But you want to do it where you rent out the rooms room by room, do you?

0:19:550:20:00

Yes, but I could make it just a one-tenant agreement.

0:20:000:20:04

And why do you want to do that

0:20:040:20:06

rather than just rent it out or sell it on?

0:20:060:20:09

-Erm, this is very close to the city centre...

-Yes.

0:20:090:20:12

-..and very close to a couple of universities.

-Yes.

0:20:120:20:15

That's why I think this is a good area.

0:20:150:20:19

So, tell me what you're going to do to the house.

0:20:190:20:22

I'm thinking I'm going to divide between the dining room and lounge

0:20:220:20:27

so I can make one communal room and one is a bedroom,

0:20:270:20:30

so I can make it a four-bedroom.

0:20:300:20:32

I'm going to keep it exactly how it is upstairs. A lick of paint.

0:20:320:20:35

I think there's not much that needs doing to it.

0:20:350:20:37

Maybe changing the doors according to building regulations

0:20:370:20:41

and my major project is the windows.

0:20:410:20:43

Kitchen and the bathroom? Will you replace both of those?

0:20:430:20:46

Er, no, I think...

0:20:460:20:48

Because I want to do some major projects in the next year and we're

0:20:480:20:53

going to possibly reconfigure the house,

0:20:530:20:56

get planning permission for on the side.

0:20:560:20:59

What will that be, then? A two-storey extension?

0:20:590:21:01

-Yes, two-storey.

-OK.

0:21:010:21:02

So, what's the budget, then, for what you're initially going to do?

0:21:020:21:06

-£15,000.

-15?

-Yes, £15,000.

0:21:060:21:09

'So, this is going to be a two-phased project

0:21:090:21:12

'with Hari looking to convert it,

0:21:120:21:14

'first as a four-bed let, potentially for students,

0:21:140:21:17

'and then, provided he gets planning, he hopes to build

0:21:170:21:20

'a large side extension to create additional rental space,

0:21:200:21:24

'and the idea is to complete the first phase in just six weeks.'

0:21:240:21:27

So, have you always been a property developer?

0:21:270:21:30

-No. I started four years ago.

-OK.

0:21:300:21:33

In 2010 I was in the military.

0:21:330:21:35

I was in Afghanistan and I got injured and I lost both legs.

0:21:350:21:40

Was it a land mine that you hit?

0:21:400:21:43

Yes, it was an old Russian mine, which was connected as an IED.

0:21:430:21:50

-Right.

-And after that, then, life is upside down.

-I'll bet!

0:21:500:21:57

But life has to carry on, so I was thinking, what am I going to do?

0:21:570:22:03

I want to work for myself and those kinds of things and this gave

0:22:030:22:08

me freedom, so I travel quite a lot abroad.

0:22:080:22:11

-I do lots of charity walks.

-Do you?

-Yes.

0:22:110:22:15

I did kayaking, five days kayaking in France.

0:22:150:22:20

I did a 460-mile kayak in the Yukon River in Canada this last year.

0:22:200:22:25

-Oh, wow!

-To give me those times, would be only the properties.

0:22:250:22:29

-OK.

-So that's why I got into property

0:22:290:22:32

and I absolutely love it and I'm loving it now.

0:22:320:22:36

-Good!

-And growing more and more!

0:22:360:22:38

'Hari was born in Nepal and joined the Gurkhas in 1999.

0:22:390:22:44

'He served all over the world and since those shattering events

0:22:440:22:47

'of 2010, he views property development as

0:22:470:22:51

'a way of getting the freedom to fulfil his ambitions.

0:22:510:22:54

'As well as an action-packed schedule, he has three children.'

0:22:540:22:58

I think what I felt was that life...

0:22:590:23:01

I thought that I could just leave it there and watch telly, play with

0:23:030:23:07

my family and the children and I could live my life like that,

0:23:070:23:12

but I think life is a bit more valuable than that, you know?

0:23:120:23:16

You should do as much as you can do and I think if I do something

0:23:160:23:21

else, it will be positive back for other people,

0:23:210:23:24

my children, my family, and also if I do something good,

0:23:240:23:29

other people can follow.

0:23:290:23:31

It sounds like you've really made the most

0:23:310:23:34

of what is a horrendous situation

0:23:340:23:36

-and turned it, as you say, on its head, but in a positive way.

-Yes.

0:23:360:23:40

I think for me it was OK, because I had support and I was trained

0:23:400:23:45

in the military that I could combat adversity and preserve myself,

0:23:450:23:52

but for my family, it was very, very hard. Really hard.

0:23:520:23:56

But I think they're loving it at the moment,

0:23:560:23:59

so I think they are proud of me!

0:23:590:24:01

I'm sure they are. Listen, congratulations. Good luck with it.

0:24:010:24:04

Thank you very much, Martin. I really appreciate it.

0:24:040:24:06

-I really look forward to seeing how you get on.

-Thanks so much.

0:24:060:24:10

Well, what an inspirational person Hari is,

0:24:100:24:13

turning his life around...in such a way.

0:24:130:24:18

Hopefully, he will turn this property

0:24:180:24:21

around equally successfully.

0:24:210:24:24

You can find out how he gets on later in the show.

0:24:240:24:28

Coming up in Derbyshire, I think I've found

0:24:280:24:30

a new angle on property design.

0:24:300:24:32

Very wonky window. The wonkiest window I've ever seen!

0:24:320:24:36

We return to Canterbury in Kent to find out why Hari

0:24:380:24:41

is so pleased about his property purchase.

0:24:410:24:44

£200 more in a month. That's great!

0:24:440:24:48

But first, we return to just outside Bexhill-on-Sea in East Sussex

0:24:510:24:55

and it was here, lurking amongst the residential properties,

0:24:550:24:59

where we first came across a place that frightens many people and

0:24:590:25:02

makes them, well, uncertain about going in.

0:25:020:25:05

# Don't be scared of me... #

0:25:060:25:10

Normally, I get really nervous going to the dentist,

0:25:100:25:13

but I feel all right today.

0:25:130:25:14

Yes, this former bungalow had been turned into a dental surgery

0:25:150:25:19

and now it was in need of some reconstruction work of its own,

0:25:190:25:23

but, with a change of use required to turn it back from commercial

0:25:230:25:26

to residential and with a strange triangle of land that wasn't sold

0:25:260:25:31

with the lot, this was a potentially scary project for the unwary.

0:25:310:25:35

None of this put off Vanessa, who bought it at auction for 247,000.

0:25:380:25:43

This was the next property project for her,

0:25:430:25:46

her three children and partner Paul.

0:25:460:25:48

After my divorce, I've got three children, and I just sort of

0:25:520:25:56

formed a property development company and this is our 13th.

0:25:560:25:59

-In how long? 13 in how many years?

-Three years.

0:25:590:26:02

-Wow!

-So it's been quite quick!

0:26:020:26:04

So, when you say you do the work yourself,

0:26:040:26:06

-is this for you, now, your job?

-Yes.

0:26:060:26:08

You wake up, you're on site,

0:26:080:26:09

you're here with the builders every day?

0:26:090:26:11

-Yeah.

-Yeah. Well, not builders. It's me.

-We are.

0:26:110:26:16

-So, who will be fitting the kitchen and fitting the bathroom?

-I will.

0:26:160:26:19

-So you will be doing all of that?

-Yeah.

-We will.

0:26:190:26:22

'So, Vanessa and Paul, who is a qualified electrician,

0:26:220:26:25

'are going to be very much hands-on and they've given themselves

0:26:250:26:29

'a £25,000 budget and a fairly relaxed timescale of eight months.'

0:26:290:26:34

But Vanessa's other properties were all straightforward refurbishments

0:26:340:26:39

without the legal complications that came with this lot.

0:26:390:26:43

So, had they bitten off more than they can chew?

0:26:430:26:45

Well, 15 months later we're back.

0:26:460:26:49

Wow! That is mighty impressive.

0:26:530:26:57

There's a completely new driveway with the access moved to the left,

0:26:570:27:01

avoiding the land that wasn't part of the lot.

0:27:010:27:04

The garage door is gone and has been replaced by a wall and a window.

0:27:040:27:08

Well, now I'm fascinated to find out what's inside.

0:27:080:27:11

We've taken the walls down in here to open it up so we've got

0:27:170:27:21

a nice, long lounge for someone.

0:27:210:27:23

Well, you certainly wouldn't mistake this for a dental surgery any more.

0:27:250:27:28

The reception area has been integrated into the large lounge

0:27:280:27:32

and there are patio doors leading out to the garden.

0:27:320:27:35

The roof has been fixed in the conservatory and I like the fact

0:27:350:27:39

that they decided to keep the fireplace as a feature.

0:27:390:27:43

We've actually taken a wall out in the kitchen, so we made

0:27:430:27:46

a larger kitchen, which we felt would be better for anybody

0:27:460:27:50

than having a separate utility area.

0:27:500:27:53

Well, now, look at that.

0:27:530:27:55

It's bright, light and, with the walls removed, twice the size!

0:27:550:27:59

I love it.

0:27:590:28:00

We've taken certain walls down and rebuilt walls so we've got

0:28:020:28:05

a nice, large bathroom for someone to use,

0:28:050:28:07

incorporating a shower and a nice bath.

0:28:070:28:10

And now, with three good-sized bedrooms, the inside of this place

0:28:150:28:18

has certainly brought a smile to my face,

0:28:180:28:22

but what about that overgrown garden?

0:28:220:28:24

We've done a lot of work in the garden.

0:28:260:28:28

There were lots of shrubs, lots of trees

0:28:280:28:30

and it was really, really congested, so all been removed.

0:28:300:28:33

It's nice and it looks quite spacious now, out here.

0:28:330:28:37

Returfed all this area down here, just keeping the wall,

0:28:370:28:41

and a really nice deck area, which would be nice to sit out on,

0:28:410:28:44

so I'm really happy with the way the garden's worked out.

0:28:440:28:46

It's really good.

0:28:460:28:48

Yes, Vanessa should be so pleased.

0:28:480:28:50

I think she and Paul have done a fantastic job,

0:28:500:28:54

but the only thing is, well, it's taken nearly double the time.

0:28:540:28:57

So, what happened?

0:28:570:28:58

We had to wait for planning permission,

0:28:580:29:00

so a couple of months went by before we could really do any serious work,

0:29:000:29:04

and then, obviously, building control and everything else,

0:29:040:29:08

so it did take a while before we got things completely organised.

0:29:080:29:12

# It's taken, it's taken so long

0:29:120:29:15

# Oh, it's been like pulling teeth... #

0:29:150:29:18

But it wasn't just extracting the change of use and getting

0:29:180:29:21

building regulations sorted that delayed things.

0:29:210:29:24

I had my leg operated on in the year, unfortunately,

0:29:240:29:27

on my Achilles tendon.

0:29:270:29:29

So I was a bit out of action so we have had more help than

0:29:290:29:32

normal, but having said that, my kids have all got involved and my

0:29:320:29:36

youngest son has knocked the walls down in the kitchen.

0:29:360:29:38

In the bathroom, my daughter has painted with me.

0:29:380:29:42

But, obviously, I couldn't bend my leg so I couldn't do low things

0:29:420:29:45

and I couldn't do high things.

0:29:450:29:47

So in the middle was fine for me! It was a bit of a slow process.

0:29:470:29:51

# It's taken, it's taken so long... #

0:29:510:29:55

Ouch! That does sound painful, but despite help from Paul

0:29:580:30:01

and the family because of the ankle, she had to get someone in to do the

0:30:010:30:06

tiling which she would normally tackle herself.

0:30:060:30:09

There were also a few other jobs that tradesmen were brought

0:30:090:30:12

in to do. So how much has all this cost?

0:30:120:30:15

A little more than I'd anticipated originally. Probably around 55.

0:30:150:30:20

But I'm really happy with the way the garden looks.

0:30:210:30:24

It's been landscaped and it looks really great.

0:30:240:30:26

And, obviously, I had to do the front driveway.

0:30:260:30:28

That had to be done properly.

0:30:280:30:30

So, yes, a bit more but I think it was worth it.

0:30:300:30:33

And it seems, indeed, in one sense, it's already paid off.

0:30:330:30:36

We put the bungalow up for sale and it sold within three weeks,

0:30:360:30:39

so, yes, we've got a buyer.

0:30:390:30:41

Well, that is great news.

0:30:420:30:44

But a £55,000 budget on top of her £247,000 purchase price takes

0:30:440:30:49

Vanessa's total cost to 302,000.

0:30:490:30:53

So is she right? Was it worth the extra spend?

0:30:530:30:57

What do two local estate agents think?

0:30:570:30:59

First off, the agent who saw it the first time.

0:30:590:31:02

I'm very impressed with the changes that they've done.

0:31:020:31:04

I think they've made the bungalow really bright,

0:31:040:31:06

spacious and they've taken a couple of walls down just to

0:31:060:31:09

give it that bit more feel of space, I think. So, very impressed.

0:31:090:31:11

I think what they've done is quite superb, really.

0:31:110:31:15

They've really opened it up. The gardens are nice and wide.

0:31:150:31:17

There's a bit of room between the bungalow next door and to the

0:31:170:31:20

other side.

0:31:200:31:21

The front garden, they've obviously created the lovely big block-paved

0:31:210:31:24

driveway, so plenty of parking, so they've made it much nicer.

0:31:240:31:29

Well, Vanessa may have already sold the house, but did she get the

0:31:290:31:32

best price for it?

0:31:320:31:34

I think this property would sell for, in the current market,

0:31:340:31:37

between £390,000 and £400,000.

0:31:370:31:40

I would suggest a figure around £390,000 to £400,000.

0:31:400:31:45

I think that's spot-on, since I've actually managed to achieve 392,500.

0:31:450:31:51

-So, yes, happy with that.

-Pretty good.

0:31:510:31:54

And that £392,500 sale price would see a pre-tax profit of £90,500.

0:31:540:32:02

And if the new owner was looking to rent the bungalow out, the agents

0:32:020:32:06

felt values of around £1,200 per calendar month would be possible.

0:32:060:32:11

So in the end, this property purchase

0:32:110:32:13

has worked out well for Vanessa, her kids and Paul.

0:32:130:32:17

-So is she ready now to sink her teeth into more projects?

-Yes.

0:32:170:32:22

-We've just bought two more flats, so more renovations.

-More work.

0:32:220:32:27

Yes, more work.

0:32:270:32:28

Swadlincote is at the heart of the National Forest,

0:32:330:32:35

but it's also the main town in the district of South Derbyshire.

0:32:350:32:39

So you get the best of both worlds - town and country.

0:32:390:32:43

On this well-kept street, which has some really nice countryside

0:32:430:32:46

views, is the property I'm here to see.

0:32:460:32:49

It's a three-bedroom semidetached house with a guide price of £58,000.

0:32:490:32:54

And here it is and it doesn't look too bad so far. Or does it?

0:32:540:32:59

Maybe I spoke too soon. I can see some cracks on the render.

0:32:590:33:03

I hope that is not a running theme.

0:33:030:33:06

The front door and windows look pretty new, which is good,

0:33:060:33:09

but I'm hoping those cracks aren't recent.

0:33:090:33:12

I definitely need to explore further.

0:33:120:33:16

OK. In out of the cold.

0:33:160:33:18

The door seemed to fall away from me.

0:33:180:33:21

In front of me I've got the stairs going up to the bedrooms.

0:33:210:33:25

As soon as you walk into this property you get

0:33:250:33:27

a feel it's falling away from you.

0:33:270:33:29

That door just fell away from me. Let's see if this door's the same.

0:33:290:33:33

Yes. Automatic doors as well.

0:33:350:33:37

This is a good size room and I can't help,

0:33:370:33:40

I've got to reiterate that I'm falling to my left all the time.

0:33:400:33:44

The levels seem to be quite strange.

0:33:440:33:46

This is a really nice big lounge, dining area, living room area.

0:33:460:33:51

Strange colour of purple but you know, each to their own.

0:33:510:33:55

But the levels do really worry me. What have we got in here?

0:33:550:34:00

We've got a bit of storage in here.

0:34:000:34:02

But if I let that go, the same thing happens.

0:34:020:34:05

Again, nice double-glazed windows, though, which I do like.

0:34:050:34:09

And through into the kitchen, which is a good size galley kitchen.

0:34:090:34:14

It looks in decent condition.

0:34:140:34:16

The whole place needs to be re-painted and brightened up somewhat.

0:34:160:34:22

Down here, you'd possibly have a table and chairs.

0:34:220:34:25

But the levels do worry me.

0:34:250:34:27

They are not quite right and if I open that slightly and just

0:34:270:34:32

leave it...

0:34:320:34:33

..you can clearly see that it's not good.

0:34:340:34:37

# Here comes that sinking feeling

0:34:370:34:40

# Here comes that sinking feeling... #

0:34:450:34:49

The only positive, if you can call it that, is that the doors do

0:34:500:34:54

swing freely, which suggests they have been hung like that and

0:34:540:34:58

therefore the house may have been off-kilter for some time.

0:34:580:35:02

That's potentially good news because it could mean the house

0:35:020:35:05

has settled and won't move any more.

0:35:050:35:08

But I can't emphasise this enough. Get this checked out by an expert.

0:35:080:35:12

Not only could it put buyers off, but it could also, potentially,

0:35:120:35:16

put lenders off too, which could affect its value.

0:35:160:35:19

OK, upstairs to the three bedrooms.

0:35:210:35:23

Right at the bottom of the corridor here we've got the family bathroom

0:35:230:35:26

which is a good sized bathroom in not bad condition either.

0:35:260:35:30

And the three bedrooms. I'm going to come into there in one second.

0:35:300:35:34

Two further bedrooms here,

0:35:340:35:36

one at the front of the property with fitted wardrobes and

0:35:360:35:39

more of a box bedroom just there in the middle with a very wonky window.

0:35:390:35:43

The wonkiest window I've ever seen!

0:35:430:35:46

Into this bedroom, the third of the three.

0:35:460:35:50

Not bad sized bedrooms at all.

0:35:500:35:52

The whole of this house needs modernising but I just want

0:35:520:35:55

to try something.

0:35:550:35:57

Let me just get my Homes Under The Hammer wages out!

0:35:570:36:01

A bit of overtime this month! Let me just try this.

0:36:010:36:05

# You've got to roll with it

0:36:100:36:12

# You've got to take your time

0:36:120:36:14

# You've got to say what you say...

0:36:140:36:17

That's not good.

0:36:170:36:18

And sometimes it's good to be on a roll.

0:36:180:36:21

This may not be one of those times.

0:36:210:36:23

But again, there is some encouragement in that the flooring,

0:36:230:36:26

doors and windows may have been fitted around the house's incline.

0:36:260:36:31

With no obvious cracks in sight,

0:36:310:36:33

I do sense the movement may be historical, which is good news.

0:36:330:36:37

Perhaps a look outside will shed more light on the matter.

0:36:370:36:40

OK, outside in the back garden and the theme of...

0:36:400:36:44

OK...slanty floors and gradients continues.

0:36:440:36:48

Here we are at the end of the back garden on a bit of patioed area.

0:36:490:36:53

It's not as steep as I made out.

0:36:530:36:54

It's a slight gradient, but it's not too bad.

0:36:540:36:58

It's in good condition as well.

0:36:580:36:59

You've got an area here where you could put a greenhouse or a shed.

0:36:590:37:04

There's not much work to do out here. Just like in the house.

0:37:040:37:07

Not much to do at all.

0:37:070:37:09

It is a slightly odd one, this, because if this was all on

0:37:100:37:14

the level, I would be enthusiastic about the general state and

0:37:140:37:17

layout of this house.

0:37:170:37:19

But with its wonkiness, I still have nagging doubts about this place.

0:37:190:37:23

So is this a place where you can see the money rolling in or roll away?

0:37:250:37:30

What does a local estate agent think?

0:37:300:37:32

The movement in this house is quite significant and we would

0:37:340:37:40

suggest the surveyor would need to inspect the property and we

0:37:400:37:47

would need him to disclose whether it is past movement or not.

0:37:470:37:51

If the property needs to be underpinned, that can be very,

0:37:510:37:55

very costly and expensive to any buyer.

0:37:550:37:58

They would never recoup that amount.

0:37:580:38:01

OK, then. So from an investment point of view,

0:38:010:38:04

any current subsidence could spell disaster and may also make

0:38:040:38:08

this house unmortgageable.

0:38:080:38:10

This could mean that re-sale might only be possible for a cash buyer.

0:38:100:38:15

So what difference might that make to the value of the house,

0:38:150:38:17

which was guided at 58 grand?

0:38:170:38:19

If the property has to rely on a cash buyer, we'd be looking at

0:38:220:38:26

a figure in the region of £85,000.

0:38:260:38:30

If we didn't have to rely on a cash buyer, I would feel that we

0:38:300:38:35

could achieve in the region of £100,000.

0:38:350:38:37

That's encouraging. So what about its rental potential?

0:38:390:38:43

The property could rent for £600 to £625 per calendar month.

0:38:430:38:49

This looks like it should be a very straightforward project.

0:38:530:38:57

However, I've walked around that house and it's got some very

0:38:570:39:00

unlevel floors and some wonky windows.

0:39:000:39:04

It's going to take someone very level-headed to get this

0:39:040:39:07

place sorted out.

0:39:070:39:08

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

0:39:080:39:12

Lot 60 today.

0:39:140:39:16

A traditional three-bedroom semidetached house ready for

0:39:160:39:19

immediate occupation.

0:39:190:39:20

Who will start me off at the guide of 58? 58, I have. 59 elsewhere.

0:39:200:39:25

59 and 60. 60 is bid. It's against you. 61, 62, 62, is bid.

0:39:250:39:33

With the price of the lot going up slowly, we re-join the bidding

0:39:350:39:39

at £69,000.

0:39:390:39:40

69, 69 taken. And a half. 70,000. And a half. 71.

0:39:420:39:48

71 and a half.

0:39:500:39:54

At £71,000, seated in the second row for the first time.

0:39:540:39:58

£71,000 for the second time.

0:39:580:40:00

The third and final time, make no mistake, it goes. Sold.

0:40:020:40:06

It's yours, sir, at 71,000. Thank you.

0:40:060:40:09

And so with the hammer falling at £71,000, the successful bidder

0:40:090:40:12

for the three-bed house in Swadlincote was Abdul.

0:40:120:40:15

Abdul is an auction broker and buys houses for clients.

0:40:180:40:22

I met him back at the house to hear more.

0:40:220:40:24

-Abdul, nice to meet you, sir.

-Hi, Dion. How are you?

-Congratulations.

0:40:270:40:30

-Thank you very much.

-Tell us a bit more about your business.

0:40:300:40:32

-What do you do?

-We source discounted properties for clients.

0:40:320:40:34

There are a lot of professionals, overseas investors,

0:40:340:40:37

they don't have time to source discounted properties

0:40:370:40:39

so we do all the legwork that's involved.

0:40:390:40:42

At the same time we've got a team of builders that we know that

0:40:420:40:44

bring properties back to freshness.

0:40:440:40:46

And is it mainly properties like these that you source?

0:40:460:40:49

We do two types of projects.

0:40:490:40:51

We do a buy-to-let project where there is not much needed,

0:40:510:40:54

just a bit of painting to bring it back to freshness.

0:40:540:40:56

Or there is a flip project that we offer where it is

0:40:560:40:59

a rundown house that needs a lot of modernising.

0:40:590:41:01

What is the plan for this one, then? For your client?

0:41:010:41:04

This one was bought for a doctor. He has got two minds.

0:41:040:41:07

The reason we insisted for him to buy this one was because

0:41:070:41:11

a few doors away, a property got sold for £110,000.

0:41:110:41:14

Slightly bigger, but same three bedrooms.

0:41:140:41:17

And he managed to achieve this for 71,000.

0:41:170:41:19

So there is a lot of movement.

0:41:190:41:21

We have advised him to put it back on the market for 95,000,

0:41:210:41:23

so it's his choice, really.

0:41:230:41:25

He might rent it out or flip it.

0:41:250:41:27

So what made you get into property, then?

0:41:270:41:29

I used to run a packaging business and I used to go to work late

0:41:290:41:33

because I used to be very attracted to the Homes Under The Hammer

0:41:330:41:36

series and I realised it's a very good business to get into and

0:41:360:41:41

I started my property business.

0:41:410:41:42

Once I started my property business, looking at how things work,

0:41:420:41:45

I realised there was a big dip in the market.

0:41:450:41:49

So in the space of nine months, we've sold numerous properties

0:41:490:41:52

and we've become a very common figure in the auction room

0:41:520:41:55

and I should say this, it's all thanks to Homes Under The Hammer.

0:41:550:41:58

-Really?

-Yes.

-This is an absolute pleasure.

-Thank you.

0:41:580:42:02

-Just pop the cheque in the post!

-Thank you!

0:42:020:42:05

# Thank you very much

0:42:050:42:07

# That's really nice to know

0:42:070:42:10

# That you enjoy the show... #

0:42:100:42:12

It's great when people get inspired to try something new and

0:42:120:42:16

so far Abdul's career path seems to be working out for him, but

0:42:160:42:20

every property purchase has different challenges and this

0:42:200:42:23

one is no exception.

0:42:230:42:24

Let me start with what I noticed as soon as I came into the property.

0:42:260:42:30

When I came in the front door, I felt like I was falling towards

0:42:300:42:34

the back of the property.

0:42:340:42:35

-That's right.

-Has the property got a problem?

0:42:350:42:38

There is a bit of subsiding in the property.

0:42:380:42:40

There's a history of mining, as well.

0:42:400:42:42

But we've been advised that it shouldn't be a problem.

0:42:420:42:45

Nothing in the legal pack at all?

0:42:450:42:47

No, nothing in the legal pack for this.

0:42:470:42:49

And you're not going to do anything about it? Have you had it checked?

0:42:490:42:53

As long as our surveyor approves it, we can put it back on the market.

0:42:530:42:56

-Happy to go.

-That's right.

-Right, that's done.

0:42:560:42:58

What are you going to do with the inside of the property?

0:42:580:43:00

Interior, the colours, as you can see, are quite odd.

0:43:000:43:03

The investor has suggested that he might freshen it up a little bit.

0:43:030:43:06

Probably paint the whole house white.

0:43:060:43:08

Are you changing any of the configuration?

0:43:080:43:10

-Are you changing upstairs?

-No.

0:43:100:43:11

-On this one, everything stays the way it is.

-As it is?

-As it is, yes.

0:43:110:43:14

-And what's your budget?

-Personally I would advise the investor to spend

0:43:140:43:17

not more than £3,000 renovating the place.

0:43:170:43:20

It needs a new gas fire, a bit of attention here and there.

0:43:200:43:23

How long is it going to take? What's your timescale?

0:43:230:43:25

-I've been told it's going to be about two weeks.

-Two weeks?

0:43:250:43:27

Two weeks, yes. There's not much needed, really.

0:43:270:43:29

-That is a quick turnaround.

-The main issue is the outside rendering.

-Yes.

0:43:290:43:33

There's a few cracks out there.

0:43:330:43:35

So they might want to repair that before bringing an estate agent in.

0:43:350:43:40

Let's hope for Abdul and his client's sake there's

0:43:400:43:42

nothing structural that needs addressing here.

0:43:420:43:45

Otherwise, that two-week timescale and the three-grand budget

0:43:450:43:48

can go straight out of that wonky window.

0:43:480:43:52

So Abdul, what role are you going to play on this project?

0:43:520:43:55

-Project managing.

-OK. Is that what you do on most of the projects?

-Yes.

0:43:550:43:58

We manage the builders and we give them a report on a weekly basis or

0:43:580:44:02

every fortnight on what's happened, what the builders have done.

0:44:020:44:05

Abdul, I wish you all the best.

0:44:050:44:07

-I hope it works out for you and your client.

-Thank you very much.

0:44:070:44:09

-Take it easy.

-Nice meeting you. Thank you.

-Pleasure.

0:44:090:44:13

I've got to say, I know a lot of people that would be a lot more

0:44:130:44:16

worried about those wonky floors and wonky windows than Abdul is.

0:44:160:44:20

He's given himself a three-grand budget and

0:44:200:44:22

a very tight timescale of two weeks.

0:44:220:44:26

One thing I will say about him though, I admire his tenacity.

0:44:260:44:29

You can find out how he gets on later in the programme.

0:44:290:44:32

Well, that's one property sorted, but what about the other two?

0:44:350:44:38

Yes, Martin, how have they done?

0:44:380:44:40

-Have they bitten off more than they can chew?

-Only one way to find out.

0:44:400:44:43

Stick around.

0:44:430:44:45

It was in Canterbury, Kent, where we first saw a three-bed semi.

0:44:450:44:49

It had a garage, off-road parking,

0:44:490:44:51

plenty of space back and front and inside, a practical, good layout.

0:44:510:44:55

It was bought by ex-Gurkha soldier Hari for £232,000 as part of

0:44:580:45:04

his ever-expanding property portfolio.

0:45:040:45:07

In 2010, I was in Afghanistan and I got injured and I lost both legs.

0:45:070:45:15

-Right.

-After that, life was upside down.

-I'll bet.

0:45:150:45:22

Life has to carry on, so I was thinking what am I going to do.

0:45:220:45:27

I want to work for myself and those kind of things

0:45:270:45:31

and this gave me freedom.

0:45:310:45:33

I travel quite a lot abroad. I do lots of charity walks.

0:45:330:45:38

So that's why I got into property and I absolutely love it and

0:45:380:45:44

I'm loving it now.

0:45:440:45:45

Hari really was quite an inspiration and he'd really taken to his

0:45:460:45:50

new career with several properties already to his name.

0:45:500:45:53

With a budget of £15,000, he planned to make this a four-bedroom house

0:45:550:45:59

and then to rent it out to students on a single tenancy agreement.

0:45:590:46:04

He hoped to complete the work in around six weeks and now,

0:46:040:46:07

bang on that timescale, we are back.

0:46:070:46:09

That's more like it.

0:46:140:46:15

Kerb appeal definitely up a notch or two with the new windows and

0:46:150:46:19

a roof that's been completely retiled.

0:46:190:46:21

But will inside pass inspection?

0:46:230:46:25

Well, that fireplace is much improved.

0:46:300:46:33

It's now all crisp and clean,

0:46:330:46:35

although I did think those doors were going.

0:46:350:46:37

As you can see, we didn't block this door, as it was.

0:46:400:46:44

I decided to let it out to a family, so I thought that would be

0:46:440:46:49

more social.

0:46:490:46:51

It's easy and more light and airy.

0:46:510:46:53

And I think when you look at it, I think it looks great.

0:46:530:46:56

So Hari is going for a family let, but he still thinks

0:46:580:47:01

he will eventually convert it into a four-bed student let.

0:47:010:47:06

For now, there is a very presentable dining room space with doors

0:47:060:47:09

out to the garden and a well-appointed family kitchen.

0:47:090:47:12

But what about upstairs?

0:47:180:47:20

The three bedrooms have been fully renovated...

0:47:270:47:30

..and the bathroom?

0:47:340:47:35

That's been revamped, though the pine cladding does remain.

0:47:380:47:43

The back garden has been tidied up and, overall, the house is

0:47:430:47:46

definitely much improved.

0:47:460:47:49

I project managed it myself.

0:47:490:47:53

I just tried to minimise the cost down, but I had great builders,

0:47:530:47:59

so they did a really good job, I think.

0:47:590:48:02

I do like what's been done here.

0:48:020:48:04

But this was going to be phase one with a planned phase two to add

0:48:040:48:07

a large side extension.

0:48:070:48:09

So is that still going to be the case?

0:48:090:48:13

Yes. My plan is still on.

0:48:130:48:15

I'm just taking a bit of time.

0:48:150:48:17

I'm doing other things, so once I'm back from America, I will get

0:48:170:48:22

planning permission and ready to go.

0:48:220:48:24

I am changing the tenants and that is the time I would extend

0:48:240:48:28

the property.

0:48:280:48:30

Well, that could be a few years down the line, so let's assess phase one.

0:48:300:48:34

How much did that cost?

0:48:340:48:37

I calculated it last night and it is £16,771 and 21p.

0:48:370:48:45

Well, he certainly knows his figures,

0:48:480:48:50

to the nearest penny, in fact.

0:48:500:48:52

But that budget with his £232,000 purchase price takes his

0:48:520:48:56

total spend to just below £249,000.

0:48:560:49:00

So is that money well spent? What do two local estate agents think?

0:49:000:49:05

I think the changes he's made have been spot-on.

0:49:070:49:10

He's spent money in the right places.

0:49:100:49:12

He hasn't overdressed the house in other places.

0:49:120:49:14

I think he's made the property stand out.

0:49:140:49:17

The property in all is done to a very nice standard.

0:49:170:49:21

I feel that the kitchen has quite a nice feel to it and quite

0:49:210:49:24

a modern feel.

0:49:240:49:25

I feel that the bathroom, still with the pine cladding,

0:49:250:49:29

could be slightly updated.

0:49:290:49:31

He may have got it right for the rental market, but what about

0:49:310:49:34

the resale market?

0:49:340:49:35

How would his £249,000 investment fare?

0:49:350:49:38

I would offer this property to the market at 235 to £240,000.

0:49:400:49:44

I would expect this property to sell for between £240,000 all the

0:49:450:49:50

way up to £250,000.

0:49:500:49:52

It was a good thing this was planned as a rental because currently

0:49:540:49:57

Hari wouldn't be seeing much of a profit on a resale.

0:49:570:50:00

So what about the all-important rental market?

0:50:000:50:04

First, as it currently stands as a three-bed family let.

0:50:040:50:07

I would rent this out to a family for £1,000 per calendar month.

0:50:100:50:13

I would expect the residential market of renting this would

0:50:130:50:17

be between £1,000 and £1,100.

0:50:170:50:22

I think that's great. I was thinking about £1,100.

0:50:220:50:26

And if Hari does convert to a four-bed let and tries renting it

0:50:260:50:30

out on the student market, what values might he see then?

0:50:300:50:33

I would let this property to four students at £1,400 per

0:50:330:50:37

calendar month.

0:50:370:50:39

I would expect this, as a room share or a student let,

0:50:390:50:42

to rent anywhere between 1,200 to £1,400 per calendar month.

0:50:420:50:46

That's great.

0:50:460:50:48

I was expecting £1,200 so £200 more in a month, that's great.

0:50:480:50:54

So, currently, he should get a yield just over 5% which would rise

0:50:540:50:59

to 6.5% if he converts the dining room into a four-bedroom.

0:50:590:51:03

Both of those are sound values,

0:51:030:51:06

so is he planning more property purchases?

0:51:060:51:09

Yes. I will definitely build my portfolio and learning more,

0:51:090:51:16

investing in bigger properties.

0:51:160:51:18

Possibly I might go to commercial, new builds,

0:51:180:51:22

that's where I want to go next.

0:51:220:51:24

Yes, but what about away from properties?

0:51:250:51:28

Tomorrow I am flying to the United States and Florida to play

0:51:290:51:35

golf with a charity who help rehabilitated soldiers.

0:51:350:51:39

Then I have got a garden party in Buckingham Palace and also

0:51:390:51:44

I've got kayak experience with injured soldiers, with amputees,

0:51:440:51:49

and in December, I'm skiing in Nepal.

0:51:490:51:52

# Don't you let nothing, nothing stand in your way... #

0:51:530:52:00

If that wasn't enough, a small hike up Everest is planned in the future.

0:52:000:52:06

That's amazing. As they say, you can't keep a good man down.

0:52:060:52:09

# Ain't no stopping us now

0:52:090:52:12

# We're on the move... #

0:52:120:52:14

Swadlincote in Derbyshire is where I first saw this three-bed semi.

0:52:220:52:27

From the moment I walked in, I felt something just wasn't right.

0:52:270:52:30

You get a feel it's falling away from you.

0:52:320:52:34

That door just fell away from me. Let's see if this door is the same.

0:52:340:52:38

# Let it swing, let it rock and roll... #

0:52:380:52:43

That's not good.

0:52:450:52:47

And though the house did leave you with a bit of

0:52:470:52:49

a sinking feeling, it wasn't in bad nick at all.

0:52:490:52:52

There were signs that the movement was historic and not actually

0:52:520:52:56

a problem any more.

0:52:560:52:57

With a bid of £71,000, the successful bidder was Abdul,

0:52:590:53:03

an auction broker who buys properties on behalf of clients.

0:53:030:53:07

Tell us a bit more about your business.

0:53:090:53:11

There are a lot of professionals, overseas investors who don't

0:53:110:53:14

have time to source discounted properties,

0:53:140:53:16

so we do all the legwork that's involved.

0:53:160:53:19

At the same time, we've got a team of builders that we know that

0:53:190:53:21

bring properties back to freshness.

0:53:210:53:23

And what's the plan for this one then?

0:53:230:53:24

He might rent it out or flip it.

0:53:240:53:26

But if this was a sinking ship, his client had no intention of pushing

0:53:280:53:31

the boat out with just a three-grand budget and a two-week timescale.

0:53:310:53:36

Now, just three weeks later, we are back.

0:53:360:53:39

Get ready with the big drumroll.

0:53:390:53:41

Only kidding.

0:53:450:53:46

It's not changed that much.

0:53:460:53:48

In fact, even the cracks on the rendering are still there.

0:53:480:53:52

The investors had two choices.

0:53:520:53:54

They had the choice of selling the property that would make

0:53:540:53:57

a good amount of money, or renting out the property.

0:53:570:53:59

They have decided to take the rent out route.

0:53:590:54:01

So they've spent the very minimum on the property.

0:54:010:54:05

OK, then - let's play spot-the-difference.

0:54:050:54:08

Before.

0:54:080:54:09

After.

0:54:090:54:11

Before.

0:54:110:54:13

After.

0:54:130:54:14

Not a lot of difference there.

0:54:140:54:16

We just painted a bit of skirtings and doors and they've

0:54:160:54:20

tidied the property.

0:54:200:54:21

Oh, yes, I spotted that. Look at the door. Look. What a transformation!

0:54:230:54:29

OK, so not much changed, but it wasn't in bad condition to

0:54:300:54:34

start with, so I'm guessing it didn't take much time to do either.

0:54:340:54:37

It took them one day to paint the skirtings and clean the property.

0:54:390:54:44

# Just one, just one Just one day... #

0:54:440:54:50

One day may have been all it needed to lick this place back into shape,

0:54:500:54:54

but surely there was no glossing over those signs

0:54:540:54:57

of previous subsidence.

0:54:570:54:59

They've had a few local agents come in, I think, and they've

0:54:590:55:02

not had an issue with the subsiding, so they feel quite

0:55:020:55:06

comfortable to let it out at its current position,

0:55:060:55:09

so they've decided to take that route and rent it out as it is.

0:55:090:55:12

Yes. With this aimed at the rental market, any concerns over further

0:55:140:55:19

movements are less pressing.

0:55:190:55:20

It might affect its ease of a resale, but it's unlikely to greatly

0:55:200:55:24

affect the rental potential.

0:55:240:55:26

So come on then, let's talk numbers.

0:55:280:55:31

Because I thought they were going to sort the rendering out, the

0:55:310:55:33

budget was about £3,000.

0:55:330:55:35

Because they have just touched it with

0:55:350:55:37

a bit of paint, I think they have spent less than £200.

0:55:370:55:40

Well, 71 grand was the purchase price at auction

0:55:410:55:45

and £200 spent takes it to £71,200.

0:55:450:55:49

But keeping the cost down doesn't always pay dividends.

0:55:490:55:52

What do two local property experts think?

0:55:530:55:56

It's my first time here at the property and I think the

0:56:000:56:03

property is absolutely fine.

0:56:030:56:04

If it's for the rental market,

0:56:040:56:06

I think it does exactly what it

0:56:060:56:07

says it does and it's absolutely fine for that market.

0:56:070:56:10

The property is very much as we saw it the first time, which is

0:56:100:56:14

slightly disappointing.

0:56:140:56:16

I would have expected some of the rooms to be painted to

0:56:170:56:21

enhance, but...it is what it is.

0:56:210:56:26

I think the leaning wonkiness could put some people off.

0:56:260:56:29

It does give quite a strange sensation when you're

0:56:290:56:31

walking around the property.

0:56:310:56:34

And that wonkiness would be a potential concern when

0:56:340:56:37

putting the house on the resale market.

0:56:370:56:39

But even so, Abdul is actually keen for the investor to sell this

0:56:390:56:43

house on, but they've opted to rent it out.

0:56:430:56:46

So is that the right decision for their £71,200 investment?

0:56:460:56:50

On the sales market, I feel it would achieve

0:56:520:56:53

a price in the region of £95,000.

0:56:530:56:57

I would have thought on the current sales market, an asking price

0:56:570:57:00

of £85,000 would be appropriate.

0:57:000:57:03

Probably to secure a sale, somewhere in the region of £80,000.

0:57:030:57:07

We've had a valuation close to £100,000.

0:57:070:57:11

We have advised the investor to sell it for £100,000, but

0:57:110:57:13

he has decided to hold it for a couple of years and rent it

0:57:130:57:16

out and re-evaluate, then sell it.

0:57:160:57:19

Interesting. It does potentially mean that would be

0:57:190:57:22

a very quick pre-tax profit of 24 grand.

0:57:220:57:25

But what about the all-important rental?

0:57:250:57:28

On the rental market, I would expect to achieve in the region of

0:57:310:57:34

between 475 and £500 per calendar month.

0:57:340:57:38

I would anticipate a monthly rent being achieved somewhere in

0:57:380:57:41

the region of 480-£500 per calendar month.

0:57:410:57:44

There's a few viewings that have taken place and we have

0:57:440:57:47

achieved £550.

0:57:470:57:50

Well, with Abdul securing a tenant for £550 per calendar month,

0:57:500:57:54

he has achieved over a 9% yield for his investor which is

0:57:540:57:58

a good return in anyone's book.

0:57:580:58:00

-So what's next for him?

-We have snapped another property at 135,000.

0:58:000:58:05

That's a rundown property.

0:58:050:58:07

We tend to spend about 30,000 for the investor and put it back

0:58:070:58:10

on the market for resale.

0:58:100:58:12

Well, that's it for today's show. What do you think?

0:58:150:58:17

Did it make you want to go to the auctions?

0:58:170:58:20

Well, you don't have to, because we have got plenty more stories.

0:58:200:58:22

So join us here for more Homes Under The Hammer next time.

0:58:220:58:25

-See you.

-Goodbye.

-Goodbye.

0:58:250:58:26

A former dental surgery in Bexhill-on-Sea in East Sussex, a 1960s semi in Canterbury and a house with wonky floors and windows in Swadlincote in Derbyshire are all sold under the hammer. Martin Lucy and Dion meet the new owners and hear their plans to make money from their buys.