Episode 32 Homes Under the Hammer


Episode 32

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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... #

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Well, at the side of the property,

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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

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