0:00:02 > 0:00:05Hello and welcome to the show. Developing property is an absolute
0:00:05 > 0:00:06dream job for a lot of people,
0:00:06 > 0:00:08but before you go handing in your notice,
0:00:08 > 0:00:10make sure you've done your research.
0:00:10 > 0:00:13Yes, because it isn't for everybody.
0:00:13 > 0:00:17Yep. For those of you that are up for it, it can be a great career,
0:00:17 > 0:00:18so where do you start?
0:00:18 > 0:00:21Well, how about buying your home under the hammer?
0:00:47 > 0:00:49It's an amazing feeling,
0:00:49 > 0:00:51transforming a derelict, old building
0:00:51 > 0:00:53and breathing new life into it,
0:00:53 > 0:00:55but, believe me, it can be hard graft.
0:00:55 > 0:00:58Yes, I can certainly back you up on that one, Lucy.
0:00:58 > 0:01:00But how did today's buyers get on?
0:01:00 > 0:01:01I think we should find out.
0:01:04 > 0:01:08In Cheshire, I'm banking this property will keep your money safe.
0:01:10 > 0:01:11# Money, money, money. #
0:01:13 > 0:01:16While safety is definitely an additional feature
0:01:16 > 0:01:18in this Carlisle house.
0:01:18 > 0:01:24Tread carefully cos there's no flooring in this front room.
0:01:24 > 0:01:26And in this southwest London flat,
0:01:26 > 0:01:29Lucy could really do with a hard hat.
0:01:29 > 0:01:33The ceilings are sloping and they're quite low in here.
0:01:34 > 0:01:37All these properties have been sold at auction and we'll find out who
0:01:37 > 0:01:40bought them and what they paid when they went under the hammer.
0:01:40 > 0:01:41Final time.
0:01:41 > 0:01:42Yours, sir.
0:01:47 > 0:01:49The Cheshire town of Crewe
0:01:49 > 0:01:54is synonymous not only with trains but with luxury cars, too.
0:01:54 > 0:01:57The sort that can leave you with empty pockets.
0:01:58 > 0:02:01So, maybe it's just as well that the auction lot
0:02:01 > 0:02:03I'm about to deposit myself in
0:02:03 > 0:02:05is a former bank.
0:02:06 > 0:02:11Just a stone's throw from Crewe town centre, a former bank building.
0:02:11 > 0:02:14Guide price was £45,000 plus.
0:02:16 > 0:02:17HE GROANS
0:02:17 > 0:02:19# Goin' to the bank
0:02:19 > 0:02:21# She got me
0:02:21 > 0:02:22# Goin' to the bank. #
0:02:24 > 0:02:27Well, without stating the obvious, the first thing to note is
0:02:27 > 0:02:30it was a former commercial premises.
0:02:30 > 0:02:32You've got the old night safe there,
0:02:32 > 0:02:33place where the cashpoint used to be,
0:02:33 > 0:02:36probably tellers round there, all these little rooms.
0:02:36 > 0:02:38But that does throw up some issues because the first thing is,
0:02:38 > 0:02:42it will have a commercial classification in terms of
0:02:42 > 0:02:44its specific use and, if you're going to change it from that,
0:02:44 > 0:02:47you're going to have to apply for planning permission
0:02:47 > 0:02:49just to do something else with it.
0:02:49 > 0:02:54And so that, of course, throws lots of issues into the equation.
0:02:54 > 0:02:56But let's look at what we've actually got here.
0:02:56 > 0:02:59Certainly, quite a large area and, obviously,
0:02:59 > 0:03:02if you were thinking about using this as a commercial unit again,
0:03:02 > 0:03:06a very enviable location, right on the high street there.
0:03:06 > 0:03:09As you walk down through the building,
0:03:09 > 0:03:14lots of space and you can imagine this as a working bank.
0:03:14 > 0:03:16Little interview rooms,
0:03:16 > 0:03:21all these walls, of course, just stud partitions, if that.
0:03:21 > 0:03:22So, easy to take down
0:03:22 > 0:03:25and I think that's what you'd have to do before you did anything.
0:03:25 > 0:03:30Clear it out, give yourself just a blank canvas
0:03:30 > 0:03:33and then start thinking what you might use this for.
0:03:36 > 0:03:37But you could be limited,
0:03:37 > 0:03:39as the building has an A2 classification,
0:03:39 > 0:03:45which only allows for financial and professional services to operate.
0:03:45 > 0:03:47For example, it could be an employment agency
0:03:47 > 0:03:49but not a payday loan shop,
0:03:49 > 0:03:52so you need to speak to planning as a priority.
0:03:52 > 0:03:55Don't just assume it's straightforward.
0:03:55 > 0:03:58When it comes to planning, it's never safe to assume anything.
0:04:00 > 0:04:03So, upstairs, amongst other things, this,
0:04:03 > 0:04:05which I imagine was the old green room canteen
0:04:05 > 0:04:07for the staff that used to work here.
0:04:07 > 0:04:12Funnily enough, disappointingly smaller amount of space up here
0:04:12 > 0:04:14than there is downstairs
0:04:14 > 0:04:16but the reason for that will be revealed in a second.
0:04:16 > 0:04:17Loos up here,
0:04:17 > 0:04:19this large sort of landing area at the top of the stairs
0:04:19 > 0:04:22and then, through this door...
0:04:23 > 0:04:27..the reason why it feels smaller on this floor than downstairs,
0:04:27 > 0:04:32because there's this huge, great basically open-air terrace.
0:04:32 > 0:04:33Now, it's very nice,
0:04:33 > 0:04:36a nice place to come out and admire the views over Crewe,
0:04:36 > 0:04:38however, it's a bit of a wasted space, isn't it?
0:04:38 > 0:04:41So I wonder if, in any master plan,
0:04:41 > 0:04:44you could look at creating more space up here,
0:04:44 > 0:04:46maybe with some kind of extension.
0:04:46 > 0:04:49Something to contemplate and put into the general mix of
0:04:49 > 0:04:51possibilities that is this property.
0:04:51 > 0:04:55One thing I haven't shown you is probably the most interesting room
0:04:55 > 0:04:58and it's deep in the bowels of the building.
0:04:58 > 0:05:02# I found the secret The key to the vault
0:05:02 > 0:05:06# I found the secret The key to it all. #
0:05:06 > 0:05:10Well, down in the basement of the bank, as you might have expected,
0:05:10 > 0:05:12it's dark and dingy and there is...
0:05:12 > 0:05:14CREAKING
0:05:14 > 0:05:17Love that. ..a creaky door,
0:05:17 > 0:05:21leading to a vault and what you've also got is all these safes.
0:05:21 > 0:05:23So what could this be in your plan?
0:05:23 > 0:05:24I don't know.
0:05:26 > 0:05:29The mind boggles but the issue is
0:05:29 > 0:05:34you've got to somehow either use these or actually get rid of them
0:05:34 > 0:05:37and actually moving these out is going to take...
0:05:37 > 0:05:39well, a lot of effort
0:05:39 > 0:05:41but, of course, the good news is that whoever buys this
0:05:41 > 0:05:45gets all these with it...
0:05:45 > 0:05:47and whatever they might contain.
0:05:47 > 0:05:50# Money, money, money
0:05:50 > 0:05:52# Must be funny
0:05:52 > 0:05:54# In a rich man's world. #
0:05:54 > 0:05:57Looks like this place really could be a gold mine.
0:05:57 > 0:05:59# Gold! #
0:05:59 > 0:06:02Well, you know what the saying says - all that glitters...
0:06:02 > 0:06:06So, assuming downstairs will remain a commercial property,
0:06:06 > 0:06:09what could be done with the upstairs space?
0:06:09 > 0:06:12We've asked along a local estate agent to see what he thinks.
0:06:14 > 0:06:17There's very little demand for first-floor office accommodation
0:06:17 > 0:06:20so I would be looking at doing a residential conversion.
0:06:20 > 0:06:22Obviously subject to planning
0:06:22 > 0:06:24and also a little bit of a reconfiguration
0:06:24 > 0:06:28of the internal accommodation to provide a separate stair access,
0:06:28 > 0:06:30but there's enough space upstairs,
0:06:30 > 0:06:34there's generally an appetite for it from the planning perspective,
0:06:34 > 0:06:35so it's quite a possibility.
0:06:36 > 0:06:39The agent thinks a one- or two-bedroom apartment
0:06:39 > 0:06:42could sit comfortably above the retail unit
0:06:42 > 0:06:45and that the combined rental could bring in
0:06:45 > 0:06:47as much as £10,600 per year,
0:06:47 > 0:06:52which means that the £45,000 guide price looks pretty tempting.
0:06:52 > 0:06:56How much should it all be worth if sold together?
0:06:56 > 0:06:58From a valuation point of view,
0:06:58 > 0:07:02if the property was converted and it comprised a self-contained
0:07:02 > 0:07:05ground-floor commercial potentially retail unit
0:07:05 > 0:07:08with also a one/two-bedroomed flat above, I would see the value of that
0:07:08 > 0:07:13being in the region of between £90,000 and £100,000.
0:07:13 > 0:07:18Well, I can TELLER you that this place has piqued my interest
0:07:18 > 0:07:20and I reckon you can bank on good returns
0:07:20 > 0:07:23if you get this one sorted out.
0:07:23 > 0:07:25HE INHALES SHARPLY AND CLEARS THROAT
0:07:25 > 0:07:30Anyway, yes, it's a good project with some caveats about planning.
0:07:30 > 0:07:34Let's see who fancied a challenge when it went under the hammer.
0:07:34 > 0:07:37Lot 46. We now go to Crewe in Cheshire.
0:07:37 > 0:07:39It's a two-storey former banking premises.
0:07:39 > 0:07:41I'll take 40 to start.
0:07:41 > 0:07:46Unfortunately, our cameras didn't catch the bidders on this occasion.
0:07:46 > 0:07:4942, 43, 44.
0:07:49 > 0:07:52£45,000 twice, third and final time.
0:07:52 > 0:07:54£45,000.
0:07:54 > 0:07:57You've bought it, sir, on the front.
0:07:57 > 0:08:01But the person who paid bang on the £45,000 guide price for this
0:08:01 > 0:08:02was Steve.
0:08:02 > 0:08:07Steve is local to Crewe and came along with his wife, Catherine.
0:08:07 > 0:08:10Steve has been registered blind since the age of seven
0:08:10 > 0:08:14and was also accompanied by his guide dog, John,
0:08:14 > 0:08:15but John took a break
0:08:15 > 0:08:19while we chatted about what they had planned for this property.
0:08:21 > 0:08:23Steve, Catherine. Good to meet you both.
0:08:23 > 0:08:25Hi, good to meet you.
0:08:25 > 0:08:26Congratulations!
0:08:26 > 0:08:29- You've got yourself a bank.- Yeah.
0:08:29 > 0:08:32So, tell me why you wanted to buy it.
0:08:32 > 0:08:36Well, it was there, it was empty, no-one else seemed to want it.
0:08:36 > 0:08:39Right, possibly a reason for that, do you think?
0:08:39 > 0:08:41No.
0:08:41 > 0:08:45Crewe has got quite a few empty commercial properties -
0:08:45 > 0:08:48I guess like many towns these days.
0:08:48 > 0:08:51One strategy that I have learned works really well
0:08:51 > 0:08:56in most town centres is to keep the front portion
0:08:56 > 0:08:59of the property as a commercial unit
0:08:59 > 0:09:03because that keeps the town looking like a town,
0:09:03 > 0:09:05and then convert the rear areas
0:09:05 > 0:09:08and the downstairs areas into residential.
0:09:08 > 0:09:13However, my idea is to put studio apartments in here
0:09:13 > 0:09:19for people living singly, over 35, who need to be in the town centre.
0:09:19 > 0:09:22So, Catherine, what do you think about it?
0:09:22 > 0:09:26I'm really excited. I think it's an amazing project.
0:09:26 > 0:09:30We've got a couple of other projects on the go, so it's scary.
0:09:30 > 0:09:31It's a huge thing,
0:09:31 > 0:09:35it's the biggest project that we've undertaken ourselves, but wow!
0:09:35 > 0:09:38This will be quite a challenge for Steve and Catherine
0:09:38 > 0:09:40because, even though they've got
0:09:40 > 0:09:42years of property developing experience behind them,
0:09:42 > 0:09:46this is the first time they've had to go through the planning process,
0:09:46 > 0:09:48which can be daunting.
0:09:48 > 0:09:51But they will be hiring the right people and plan to spend
0:09:51 > 0:09:54£80,000 to £90,000 on turning this project around in,
0:09:54 > 0:09:58I'd say, quite a tight eight-to-nine-month timescale.
0:09:58 > 0:10:02The planning could really hold them up but Steve isn't the type to let
0:10:02 > 0:10:04obstacles get in his way.
0:10:05 > 0:10:07So, what challenges, if any,
0:10:07 > 0:10:11does being blind give you, and how do you get over those?
0:10:11 > 0:10:13Loads. I've got lots of bruises!
0:10:13 > 0:10:15THEY LAUGH
0:10:15 > 0:10:18But... There ARE challenges
0:10:18 > 0:10:21but, then, there are challenges whatever you do.
0:10:21 > 0:10:22Everyone has challenges.
0:10:22 > 0:10:26I've met hundreds and hundreds of people now who are challenged
0:10:26 > 0:10:31in the whole issue of becoming property investors at all,
0:10:31 > 0:10:34and I, maybe because of being blind,
0:10:34 > 0:10:38am a lot more courageous than a lot of people I know,
0:10:38 > 0:10:41so I'm not afraid of working out
0:10:41 > 0:10:43that it's going to work and go for it.
0:10:43 > 0:10:46On the practical side, yes, of course,
0:10:46 > 0:10:52I don't know if there are cracks in a property above my reach.
0:10:52 > 0:10:55I can feel around as far as I can reach, which is not very far.
0:10:57 > 0:11:00And I do eventually need a pair of eyes
0:11:00 > 0:11:03but I can go on an initial viewing and detect things like damp...
0:11:03 > 0:11:05HE SNIFFS
0:11:05 > 0:11:06..because that stands out a mile.
0:11:07 > 0:11:11In fact, I often have this conversation with surveyors
0:11:11 > 0:11:16because one thing that surveyors are taught to do is to close their eyes
0:11:16 > 0:11:18and jump up and down on the floor boards
0:11:18 > 0:11:20to find out whether they're safe.
0:11:20 > 0:11:23- Right.- That takes courage.
0:11:24 > 0:11:27But I can quite often detect that a floor is not even
0:11:27 > 0:11:31just by walking across it because another thing they are taught to do
0:11:31 > 0:11:34is to put their back against a wall and walk across a room
0:11:34 > 0:11:35to detect whether it slopes at all.
0:11:35 > 0:11:38I do that naturally so I actually turn
0:11:38 > 0:11:42what a lot of people would think were disadvantages into advantages.
0:11:43 > 0:11:48Steve has adopted great techniques for getting to grips with property
0:11:48 > 0:11:50but, when it comes to more crowded quarters,
0:11:50 > 0:11:53wife Catherine plays her part.
0:11:53 > 0:11:57In a house that's occupied and people with thousands of ornaments,
0:11:57 > 0:11:59then it's hands in pockets
0:11:59 > 0:12:04and me getting to practise using adjectives a lot.
0:12:04 > 0:12:06Oh, she's good at adjectives.
0:12:06 > 0:12:10And watching from the outside, well, inside and outside,
0:12:10 > 0:12:13- what do you think?- It's fantastic.
0:12:13 > 0:12:17Sometimes I get a little bit nervous about the money, about the figures,
0:12:17 > 0:12:22but we've got an income from the properties that we're renting out
0:12:22 > 0:12:26at the moment and it's just exciting.
0:12:26 > 0:12:30Property is exciting so I'm all for it and all behind him.
0:12:30 > 0:12:31Phew!
0:12:32 > 0:12:36Listen, in this case, I really do hope you break the bank!
0:12:36 > 0:12:38And it turns out fantastic for you. Congratulations. Good luck with it.
0:12:38 > 0:12:40- Thank you.- I look forward to seeing how you get on.
0:12:40 > 0:12:42Thanks very much.
0:12:44 > 0:12:50Well, Steve clearly knows his stuff and he's a pretty inspirational guy.
0:12:50 > 0:12:53Taking on a fairly difficult project with this one, though.
0:12:53 > 0:12:57I am very concerned about the whole planning-permission issue,
0:12:57 > 0:13:01even with this still being a commercial unit.
0:13:01 > 0:13:03How will it go? It's 50-50.
0:13:03 > 0:13:05You can find out later in the show.
0:13:11 > 0:13:15Carlisle is at the northern extreme of north-west England
0:13:15 > 0:13:18and is only ten miles from the Scottish border.
0:13:18 > 0:13:22Its geographical position has meant the city has been at the centre of
0:13:22 > 0:13:26many conflicts over the years while, in more recent times,
0:13:26 > 0:13:29its location has been the cause of severe flooding -
0:13:29 > 0:13:31the last being in 2015.
0:13:35 > 0:13:37So, not far from the centre of Carlisle
0:13:37 > 0:13:40and, as I walk down this busy main street, I can't help notice
0:13:40 > 0:13:44that there are a few skips that are full of rubbish and rubble
0:13:44 > 0:13:48and that's because this area was hit pretty bad by the floods,
0:13:48 > 0:13:52as was the property that we're here to see today.
0:13:52 > 0:13:54It's a five-bed terraced house
0:13:54 > 0:13:58with a guide price of £100,000 to £125,000.
0:13:58 > 0:14:00It's a beautiful-looking building.
0:14:00 > 0:14:02What's it going to be like inside? Let's have a look.
0:14:04 > 0:14:07Anyone who has suffered the devastating effects of flood water
0:14:07 > 0:14:11will be all too familiar with the aftermath.
0:14:11 > 0:14:15Ah. Not a great start. As soon as you come through the door...
0:14:17 > 0:14:22..yes, you can see the water damage has really taken its toll here.
0:14:22 > 0:14:25Fortunately, it hasn't damaged these beautiful stained-glass windows
0:14:25 > 0:14:29either side of this porch way, but the walls, the plaster has all gone,
0:14:29 > 0:14:33it's gone back to the bare brick, which isn't brilliant.
0:14:33 > 0:14:35You've got the stairs going up to the bedrooms.
0:14:35 > 0:14:39It's a huge hallway but there's no flooring in at all.
0:14:40 > 0:14:42OK, follow me into here.
0:14:42 > 0:14:44I've got to tread carefully
0:14:44 > 0:14:48because there's no flooring in this front room.
0:14:48 > 0:14:51It's a really good-sized front room but look at the damage in here.
0:14:51 > 0:14:55Again, everything has been stripped back to the bare brick
0:14:55 > 0:14:59but if you can see beyond that, lovely high ceilings,
0:14:59 > 0:15:03really nice cornicing as well all the way around the room.
0:15:03 > 0:15:07Nice, pretty ceiling rose as well, and an original fireplace.
0:15:07 > 0:15:09Nice, big window.
0:15:09 > 0:15:11Gah, it's proper devastation in here.
0:15:11 > 0:15:13I hope this is the worst of it.
0:15:15 > 0:15:19It's worth noting that once the flood-damaged property is sold on,
0:15:19 > 0:15:24the insurers are under no obligation to provide flood cover,
0:15:24 > 0:15:27which can cause issues when you're trying to get a mortgage.
0:15:28 > 0:15:30OK, through to the back of the property
0:15:30 > 0:15:31and it's the same in here as well -
0:15:31 > 0:15:35everything's been stripped back to the bare brick and no flooring.
0:15:35 > 0:15:37Again, a lot of work to be done and you're probably thinking,
0:15:37 > 0:15:40"Let's just crack on and start."
0:15:40 > 0:15:42Unfortunately, it's not that simple.
0:15:42 > 0:15:45There are a few steps you're going to have to take -
0:15:45 > 0:15:48one of them being getting a drying-out certificate
0:15:48 > 0:15:50before you do anything.
0:15:50 > 0:15:52And there's other steps as well you can take
0:15:52 > 0:15:54on the external of the building.
0:15:54 > 0:15:58Maybe trying to stop the water coming in in the first place -
0:15:58 > 0:16:02watertight external doors, a water alarm.
0:16:02 > 0:16:05They're going to help but if the water does get in,
0:16:05 > 0:16:09you might want to think about using waterproof materials on the inside.
0:16:09 > 0:16:11Maybe some waterproof plaster
0:16:11 > 0:16:15and little things like moving the sockets just that little bit higher,
0:16:15 > 0:16:18just to help in case it does come in.
0:16:18 > 0:16:20There's lots of advice out there.
0:16:20 > 0:16:23Do a bit of research, ask around, ask the right people -
0:16:23 > 0:16:25I'm pretty sure they'll want to help -
0:16:25 > 0:16:28and maybe even a grant or two if you're lucky.
0:16:35 > 0:16:39Continuing to the back of the house, there is evidence of a downstairs
0:16:39 > 0:16:43bathroom and a long room that was presumably the kitchen area.
0:16:46 > 0:16:49The rooms in the upper floor of the house
0:16:49 > 0:16:51have escaped the same distress of downstairs.
0:16:55 > 0:16:57Starting at the very top floor,
0:16:57 > 0:16:59there are two bedrooms of decent size -
0:16:59 > 0:17:03one overlooking the front and the other overlooking the rear.
0:17:07 > 0:17:10On the middle floor, there are two huge bedrooms.
0:17:19 > 0:17:22The family bathroom is down half a landing,
0:17:22 > 0:17:25where you'll find the final of the five bedrooms.
0:17:29 > 0:17:30Water damage aside,
0:17:30 > 0:17:36we have got a really good-sized five-bedroom family home
0:17:36 > 0:17:40with lovely high ceilings and some really nice period features.
0:17:40 > 0:17:44This could be a beautiful family home.
0:17:44 > 0:17:46On the other hand, I'm thinking,
0:17:46 > 0:17:49it sort of lends itself to be an HMO -
0:17:49 > 0:17:51a house of multiple occupancy.
0:17:51 > 0:17:55There are steps you would have to take in order to create that.
0:17:55 > 0:18:01Change of use, planning permission and fire safety regs as well -
0:18:01 > 0:18:05fire doors, fire alarms and fire exits as well.
0:18:05 > 0:18:08For me, that would be the way I would go
0:18:08 > 0:18:11if you wanted to maximise your investment.
0:18:12 > 0:18:17We called in a local estate agent - who has sadly had lots of experience
0:18:17 > 0:18:20with flood-damaged properties - for his opinion and valuations.
0:18:22 > 0:18:25When you're thinking of buying a flooded property,
0:18:25 > 0:18:27before any sort of major works
0:18:27 > 0:18:30can start to actually reinstate the house,
0:18:30 > 0:18:32you need to have a drying-out certificate
0:18:32 > 0:18:35which has been signed off by qualified builders
0:18:35 > 0:18:37and local councils.
0:18:37 > 0:18:39Once you've achieved that and you've got that
0:18:39 > 0:18:42then the property, you know, you can start refurbishing.
0:18:42 > 0:18:44One good reason for this being,
0:18:44 > 0:18:48there is no point in replastering a wall if there's still flood water
0:18:48 > 0:18:49lurking in its cavity.
0:18:51 > 0:18:55Assuming the house is eventually refurbished, what could it be worth?
0:18:55 > 0:18:58Once the renovation has been completed on a property like this
0:18:58 > 0:19:01in this location, you should be able to market the property
0:19:01 > 0:19:05somewhere in the region of £250,000 to £260,000.
0:19:05 > 0:19:07And on the rental market?
0:19:07 > 0:19:09As a standard rental for a one-off property
0:19:09 > 0:19:12just for one family to live in, I would imagine that the rental return
0:19:12 > 0:19:16on a property like this would be somewhere in the region of
0:19:16 > 0:19:18between £650 and £750 per calendar month.
0:19:18 > 0:19:22And if adapted and rented as a house with multiple occupancy,
0:19:22 > 0:19:24what would the rent be like then?
0:19:24 > 0:19:30As an HMO, this property would rent out room by room for between
0:19:30 > 0:19:32£75 and £90 per week,
0:19:32 > 0:19:35depending on whether the rooms were en suite or not.
0:19:35 > 0:19:37It goes without saying
0:19:37 > 0:19:40that this is not going to be a straightforward project.
0:19:40 > 0:19:44Especially on the ground floor, with that flood damage.
0:19:44 > 0:19:47But this is a beautiful five-bed property
0:19:47 > 0:19:49with a huge amount of potential.
0:19:49 > 0:19:52Let's see who went for it when it went under the hammer.
0:19:52 > 0:19:55The last lot of the day, then.
0:19:55 > 0:19:56Eyes down.
0:19:56 > 0:19:58Got a telephone bid on this.
0:19:58 > 0:20:00We're in. Don't let them have it.
0:20:00 > 0:20:02Need a bid. 100.
0:20:02 > 0:20:04Start me. At £100,000.
0:20:04 > 0:20:0590, then?
0:20:05 > 0:20:07If not, I'll take it away.
0:20:07 > 0:20:09At £90,000.
0:20:09 > 0:20:11100 here. 100 on the phone.
0:20:11 > 0:20:13105? 105 bid.
0:20:13 > 0:20:151-0-10. 1-0-10? 110.
0:20:15 > 0:20:21After a hesitant start, bids built to where we re-join at £128,000.
0:20:21 > 0:20:24128, 129.
0:20:24 > 0:20:26I'll take it. 128 and a half.
0:20:26 > 0:20:28129.
0:20:28 > 0:20:30129. Half.
0:20:30 > 0:20:31130. 130 bid.
0:20:31 > 0:20:33Half.
0:20:33 > 0:20:35It could be yours at 130 and a half.
0:20:35 > 0:20:36131.
0:20:36 > 0:20:38131 and a half.
0:20:38 > 0:20:39It's against you, sir.
0:20:39 > 0:20:40It's with you, madam.
0:20:40 > 0:20:42At £131,000.
0:20:42 > 0:20:43Half.
0:20:43 > 0:20:44Two.
0:20:44 > 0:20:4532.
0:20:45 > 0:20:4732 and a half.
0:20:47 > 0:20:51At £132,000, all yours.
0:20:51 > 0:20:53First time. Second time.
0:20:53 > 0:20:55Selling away, then,
0:20:55 > 0:20:58for the third and final time at £132,000.
0:20:58 > 0:21:00All done.
0:21:00 > 0:21:02Well done, madam. 48.
0:21:03 > 0:21:06The successful bidder was Alison,
0:21:06 > 0:21:11bidding on behalf of a social enterprise she founded in 2011.
0:21:11 > 0:21:16We met to discuss the future of her £132,000 purchase.
0:21:17 > 0:21:20- Alison, nice to meet you.- Hi. Nice to meet you.- Congratulations.
0:21:20 > 0:21:23- Hm.- You've got yourself a bit of a monster.
0:21:23 > 0:21:24- How did you find it? - We'd seen it advertised
0:21:24 > 0:21:27and it was up at auction so we thought, "Hmm."
0:21:27 > 0:21:29Shall we or shan't we? Tell us a bit more about what you do.
0:21:29 > 0:21:31We're a social enterprise.
0:21:31 > 0:21:34Initially, we were set up to provide recovery
0:21:34 > 0:21:36for people coming out of addiction.
0:21:36 > 0:21:37So, that's how it started.
0:21:37 > 0:21:40We wanted to be more self sustainable so we thought
0:21:40 > 0:21:44we could get some housing and look at rents to house homeless people.
0:21:44 > 0:21:46You've got yourself a very large building.
0:21:46 > 0:21:48Well, it's residential at the minute
0:21:48 > 0:21:51and we want to turn it into a house of multiple occupancy. So an HMO.
0:21:51 > 0:21:54So, what have you got to do to make it into an HMO?
0:21:54 > 0:21:56The first thing we have to do is get planning permission
0:21:56 > 0:21:59to change of use. We'll have to have building regulations in
0:21:59 > 0:22:01to make sure that we're complying.
0:22:01 > 0:22:04That's complying to make sure that you've got enough bathrooms,
0:22:04 > 0:22:07enough space for the amount of people.
0:22:07 > 0:22:09We're looking at five people,
0:22:09 > 0:22:11but it'll be a six-bedroom
0:22:11 > 0:22:13- cos there'll be an office space for support staff.- OK.
0:22:13 > 0:22:17I need to get a fire risk assessment. That's the first thing.
0:22:17 > 0:22:20So I'm looking now out there to see ex-fire officers to see if they can
0:22:20 > 0:22:22- come and do us a favour. - "Would you mind?"
0:22:22 > 0:22:27- "Would you mind?"- So, five separate bedrooms.- Yes.- And an office.
0:22:27 > 0:22:29- And an office.- Tell us how you're going to configure.
0:22:29 > 0:22:30Where's the office going to go?
0:22:30 > 0:22:33It's going to go in one of the bedrooms upstairs.
0:22:33 > 0:22:35It's a very large bedroom. It looks like it's already had
0:22:35 > 0:22:37a doorway through where I want to knock through.
0:22:37 > 0:22:39So we're just going to split that.
0:22:39 > 0:22:41It'll still be a large bedroom but a smaller office.
0:22:41 > 0:22:44We're only talking two members of staff at any one time
0:22:44 > 0:22:47are going to be here. Because we've got staff on site,
0:22:47 > 0:22:49we don't want to impede on the residents that live here
0:22:49 > 0:22:52so we're going to put an extra toilet and sink in.
0:22:52 > 0:22:53It's already got two showers and a bath.
0:22:53 > 0:22:55I think that's ideal for the residents
0:22:55 > 0:22:58but it'd be nice to have a toilet that staff can use,
0:22:58 > 0:23:00and the residents, if they wish.
0:23:00 > 0:23:02But at least the staff will never be bothering the residents
0:23:02 > 0:23:04when it comes to the bathroom.
0:23:04 > 0:23:07You've got planning, you've got building regs,
0:23:07 > 0:23:08you've got security regs.
0:23:08 > 0:23:11All those kind of things you have to overcome and then
0:23:11 > 0:23:14you've got to start spending a few quid on it to get it right.
0:23:14 > 0:23:16What is your budget to turn this place around?
0:23:16 > 0:23:20I think it would cost about 30,000
0:23:20 > 0:23:24but I'm hoping to come well under that by using volunteers.
0:23:24 > 0:23:27The community's good. Carlisle community is really good
0:23:27 > 0:23:30- when there's been a disaster like the floods.- OK.
0:23:30 > 0:23:33- 30 grand, you said, budget-wise? - Yeah.- What about your timescale?
0:23:33 > 0:23:35- How long's it going to take? - Two months, I think.
0:23:35 > 0:23:37I hope. Two months.
0:23:37 > 0:23:40- Really?- I've got an electrician coming in tomorrow.
0:23:40 > 0:23:42- OK.- Getting it rewired tomorrow.
0:23:42 > 0:23:45- It's very tight, Alison. - It's very tight but I think,
0:23:45 > 0:23:48with all the help in the community and people willing
0:23:48 > 0:23:51to drop down tools and come on board, I think we'll do it.
0:23:51 > 0:23:54- Great adventure here.- Yeah.- I'm pretty sure you'll get it right.
0:23:54 > 0:23:56- Good luck.- Thank you. - Hope it works out for you.
0:23:56 > 0:23:59- Thank you very much. - Take care, Alison.- OK.
0:23:59 > 0:24:01Now, that's a huge project
0:24:01 > 0:24:03but a very inspirational lady
0:24:03 > 0:24:06and she's doing it for all the right reasons.
0:24:06 > 0:24:10£30,000 budget and two months, I'm not too sure about,
0:24:10 > 0:24:11but, with the help of the community
0:24:11 > 0:24:13- they're all going to pull together -
0:24:13 > 0:24:16I'm pretty sure she's going to get this exactly how she wants it.
0:24:16 > 0:24:20You can find out how she gets on later in the programme.
0:24:20 > 0:24:24Still to come, things are getting colourful in this London flat.
0:24:24 > 0:24:27A rather interesting colour combination
0:24:27 > 0:24:29of a pink ceiling and egg-yolk-yellow cabinets.
0:24:31 > 0:24:35And, back in Carlisle, Alison has a slight problem.
0:24:35 > 0:24:37We couldn't even get people in to give us quotes,
0:24:37 > 0:24:40they were so busy for the flood zone areas.
0:24:44 > 0:24:46It's time to head back to Crewe
0:24:46 > 0:24:51and the former bank premises I visited earlier in the programme.
0:24:51 > 0:24:54The first thing is, it will have a commercial classification,
0:24:54 > 0:24:58in terms of its specific use and, if you're going to change it from that,
0:24:58 > 0:25:00you're going to have to apply for planning permission
0:25:00 > 0:25:02just to do something else with it.
0:25:02 > 0:25:04The likelihood of having to spend time and money
0:25:04 > 0:25:08on planning permission might not appeal to everyone.
0:25:08 > 0:25:11# I'm gonna spend, spend, spend. #
0:25:11 > 0:25:15And with more and more shops being vacated on Britain's high streets,
0:25:15 > 0:25:19the question is, how do you repurpose these empty premises?
0:25:19 > 0:25:23Steve thinks he has an answer and, after paying 45 grand at auction,
0:25:23 > 0:25:24he and his wife, Catherine,
0:25:24 > 0:25:29accompanied by Steve's guide dog, John, came to tell me about it.
0:25:29 > 0:25:35My idea is to put studio apartments in here for people living singly,
0:25:35 > 0:25:39over 35, who need to be in the town centre.
0:25:41 > 0:25:43A full-time property investor,
0:25:43 > 0:25:46Steve's plan was to convert this into a nine-bedroom HMO,
0:25:46 > 0:25:50together with a small retail unit to the front of the building.
0:25:50 > 0:25:55And he was hopeful that £80,000 and an eight-to-nine-month timescale
0:25:55 > 0:25:57would be sufficient for him to complete the job.
0:25:57 > 0:26:00Well, 15 months later, we're back and...
0:26:01 > 0:26:05..it looks like there's been a bit of a hold-up at this former bank.
0:26:05 > 0:26:09# I ain't a-wastin' time no more
0:26:09 > 0:26:13# Cos time goes by like pouring rain. #
0:26:13 > 0:26:19Yes, Steve's had a frustrating time with delays and design problems.
0:26:19 > 0:26:24He's here to give us an update and is joined by his new architect, Tom.
0:26:24 > 0:26:30Since the last filming, we've put in the planning application
0:26:30 > 0:26:34which originally was to create nine beds as an HMO.
0:26:35 > 0:26:38Been quite a few changes since then but...
0:26:39 > 0:26:43..at least we did get the planning permission, which was great news.
0:26:43 > 0:26:47The original design didn't take into account some of the issues,
0:26:47 > 0:26:50in terms of moving one of the walls downstairs.
0:26:50 > 0:26:53We've since done a proper survey of the building
0:26:53 > 0:26:56to discover just exactly how thick some of the walls are
0:26:56 > 0:27:00and, in actual fact, some of them are a metre thick
0:27:00 > 0:27:01and they're reinforced concrete.
0:27:02 > 0:27:06And, in fact, the original plan meant that we needed to move
0:27:06 > 0:27:08one of those walls just a few inches,
0:27:08 > 0:27:11and it just isn't worth the cost.
0:27:11 > 0:27:13# To be thick as a brick. #
0:27:13 > 0:27:17Being unable to move that metre-thick reinforced concrete
0:27:17 > 0:27:22meant dropping the two basement bedrooms from the original plan.
0:27:22 > 0:27:24With all the previous design problems,
0:27:24 > 0:27:26Steve employed Tom to take over the project
0:27:26 > 0:27:28and his new design has been approved
0:27:28 > 0:27:31by both planning and building control.
0:27:32 > 0:27:36We've got a shop/office area on the ground floor,
0:27:36 > 0:27:39which Steve's planning to use as a letting agency.
0:27:39 > 0:27:44We've then got four equally sized bedrooms, all with en suite,
0:27:44 > 0:27:45and a small brew station
0:27:45 > 0:27:48just for making cups of tea, coffee, and a microwave.
0:27:48 > 0:27:50Going up to the first-floor level,
0:27:50 > 0:27:55we've then got three equally sized bedrooms, all with en suite,
0:27:55 > 0:27:57another kind of brew station.
0:27:57 > 0:27:58And, then, in the basement area,
0:27:58 > 0:28:01what we've done is put the kitchen area in that space
0:28:01 > 0:28:03because it's not a habitable room
0:28:03 > 0:28:05and therefore it doesn't need a window.
0:28:05 > 0:28:09# Nothing ever goes to plan. #
0:28:10 > 0:28:13And in the process of clearing out the old bank fittings,
0:28:13 > 0:28:15they came across another problem.
0:28:17 > 0:28:18The wall just behind me,
0:28:18 > 0:28:21there was a big cashpoint machine
0:28:21 > 0:28:26and downstairs in the vaults, there were two large safes...
0:28:27 > 0:28:30..which had to be removed and the vault doors had to be removed.
0:28:30 > 0:28:33And then, in the process, we discovered that we'd got asbestos
0:28:33 > 0:28:35to deal with, as well.
0:28:36 > 0:28:40Once the asbestos was cleared, it was safe for contractors to move in
0:28:40 > 0:28:44and strip out the interior fixtures and fittings.
0:28:44 > 0:28:47But have these unforeseen obstacles impacted
0:28:47 > 0:28:50on Steve's budget of 80-90,000?
0:28:50 > 0:28:54We're just putting the build contract out to tender now.
0:28:54 > 0:28:57So we'll see how close to budget we're hoping.
0:28:57 > 0:28:59I've had various conversations with Tom,
0:28:59 > 0:29:02hoping that we can keep it under 100,000.
0:29:02 > 0:29:04That would make it very manageable.
0:29:06 > 0:29:10We're expecting about three to four months on site construction,
0:29:10 > 0:29:13so we're hoping there shouldn't be any real delays
0:29:13 > 0:29:14or unforeseen circumstances.
0:29:17 > 0:29:20This bank job has been 15 months in the planning
0:29:20 > 0:29:24but how much cash can Steve get away with?
0:29:24 > 0:29:26We have asked two local property experts
0:29:26 > 0:29:30to take a look around but, before they give us their valuations,
0:29:30 > 0:29:33what do they think of Steve and Tom's revised plans?
0:29:33 > 0:29:36I think the idea of turning the place into studio apartments
0:29:36 > 0:29:38is a fantastic idea.
0:29:38 > 0:29:40It's really close to the town -
0:29:40 > 0:29:41in fact, it's in the town.
0:29:41 > 0:29:45You've got all the local shops within a few hundred yards,
0:29:45 > 0:29:47so it's ideal from that point of view.
0:29:47 > 0:29:51A lot of local businesses, so it's a great idea to do the apartments.
0:29:51 > 0:29:55The rooms are adequate, they are single rooms,
0:29:55 > 0:29:56a little on the small side
0:29:56 > 0:30:00but, nonetheless, they will cater to the local market.
0:30:01 > 0:30:04And what about the all-important room rental?
0:30:04 > 0:30:08I would estimate that each room will be capable of generating
0:30:08 > 0:30:14a rental of about £80-£90 per week on an all-inclusive basis,
0:30:14 > 0:30:16without the tenant having to pay any additional bills.
0:30:16 > 0:30:20We'd be looking around about £80-£85.
0:30:20 > 0:30:23That's pretty much the figure that I've been working on all along.
0:30:25 > 0:30:28At full occupancy, a room rate of £90 a week
0:30:28 > 0:30:31would generate an income of £2,500 per month.
0:30:32 > 0:30:35That's a whopping 20.8% yield,
0:30:35 > 0:30:39based on Steve's estimated spend of 145,000.
0:30:41 > 0:30:43How much do they think the building could be worth
0:30:43 > 0:30:45on the resale market once renovated?
0:30:47 > 0:30:48I think, for seven apartments,
0:30:48 > 0:30:50once it's all completed and all nicely finished,
0:30:50 > 0:30:56we'd be looking around about £175,000 to £185,000.
0:30:56 > 0:30:59I would estimate that, once the property is fully let,
0:30:59 > 0:31:00it would command a value
0:31:00 > 0:31:05of somewhere between £150,000 to £200,000.
0:31:05 > 0:31:07I haven't really focused on the commercial value
0:31:07 > 0:31:10because that's not what I do.
0:31:10 > 0:31:13Fair enough, Steve, but a resale value of 200,000 means that,
0:31:13 > 0:31:16assuming costs of 145,000,
0:31:16 > 0:31:20there is a pre-tax profit sitting there of 55,000.
0:31:21 > 0:31:26So, despite the delays, has Steve enjoyed this project?
0:31:26 > 0:31:28I've learned so much.
0:31:28 > 0:31:31So, looking forward to taking that knowledge on
0:31:31 > 0:31:33to bigger and more exciting projects, quite frankly.
0:31:38 > 0:31:42This is southwest London. Tooting, to be exact.
0:31:55 > 0:31:58So, what does Tooting have to offer?
0:31:58 > 0:32:01Well, it has plenty of open space with its common,
0:32:01 > 0:32:03it has lots of shops and restaurants,
0:32:03 > 0:32:05including excellent curry houses,
0:32:05 > 0:32:08there's a lido for whenever you fancy a dip outdoors,
0:32:08 > 0:32:11there's good transport links into the city
0:32:11 > 0:32:14and lots of period architecture.
0:32:14 > 0:32:16You also get more for your money round here
0:32:16 > 0:32:19than in nearby areas such as Balham.
0:32:19 > 0:32:24So, it's no wonder that Tooting is considered a very tempting prospect
0:32:24 > 0:32:26when it comes to buying property.
0:32:26 > 0:32:29And the property in question is in a great location,
0:32:29 > 0:32:34just a few minutes' walk from the Tooting Bec tube station.
0:32:34 > 0:32:37The property I'm here to see is a leasehold flat
0:32:37 > 0:32:40and it's in this Victorian terrace.
0:32:40 > 0:32:42Now, the flat has got two bedrooms.
0:32:42 > 0:32:47It went up for auction with a guide price of £300,000.
0:32:47 > 0:32:50Now, my first impressions are that the outside - look over here -
0:32:50 > 0:32:52needs a little bit of work.
0:32:52 > 0:32:55The windowsills - look - they're crumbling, and the roof, well,
0:32:55 > 0:32:58it looks quite old and I've seen a few missing tiles.
0:32:58 > 0:33:01So let's hope inside is in a little bit better nick.
0:33:09 > 0:33:11Well, this is a split-level flat
0:33:11 > 0:33:14which is spread over the first and second floors,
0:33:14 > 0:33:16so you can go up or you can stay down.
0:33:16 > 0:33:19Now, down here we've got the bathroom, just there,
0:33:19 > 0:33:22and right at the back is the kitchen.
0:33:22 > 0:33:25Lovely pineapple. It's very dated in here.
0:33:25 > 0:33:28A rather interesting colour combination of a pink ceiling
0:33:28 > 0:33:31and rather nice egg-yolk-yellow cabinets.
0:33:31 > 0:33:32But it is a good size
0:33:32 > 0:33:35and the great thing is you've got enough space here
0:33:35 > 0:33:38for a sit-down table, so you can eat your dinner,
0:33:38 > 0:33:41which is a real bonus in a kitchen this size.
0:33:41 > 0:33:44# Pink, it's my new obsession
0:33:45 > 0:33:50# Yeah, pink, it's not even a question. #
0:33:52 > 0:33:55Up a few stairs, and you have one of the two bedrooms.
0:33:55 > 0:33:57It's a really good-sized double, actually.
0:33:57 > 0:34:01And then you have - well, this huge, lovely, light living room.
0:34:01 > 0:34:03Straightaway, I'm thinking,
0:34:03 > 0:34:06is there room to move that kitchen in here?
0:34:06 > 0:34:09You could then turn the kitchen into another bedroom
0:34:09 > 0:34:12and, especially in London, more bedrooms adds value
0:34:12 > 0:34:16and, in effect, well, it will make this house more saleable.
0:34:16 > 0:34:19So, there is a chance to rejig the layout and add value
0:34:19 > 0:34:23in this spacious flat. And there is still one more room to go.
0:34:27 > 0:34:31Up on the top floor and you currently have the second bedroom.
0:34:31 > 0:34:32Now, as you can see,
0:34:32 > 0:34:36the ceilings are sloping and they are quite low in here.
0:34:36 > 0:34:41Surprisingly, in England, there is no legal minimum for ceiling height,
0:34:41 > 0:34:43except over stairways.
0:34:43 > 0:34:45But there practical considerations, of course.
0:34:45 > 0:34:49Now, you don't want to be constantly bent over and banging your head.
0:34:49 > 0:34:52Now, the usual standard is 2.4 metres -
0:34:52 > 0:34:55that's about 7½ foot - floor to ceiling,
0:34:55 > 0:34:59and with sloping ceilings, well, it's recommended that at least
0:34:59 > 0:35:0450% of the floor space should have at least 2.1 metres in height.
0:35:04 > 0:35:08So, I think this room does work perfectly as it is.
0:35:08 > 0:35:12Of course, the thing you need before you rejig the flat is the permission
0:35:12 > 0:35:15of the freeholder and, if you've got permission,
0:35:15 > 0:35:17the work could cost a fair bit.
0:35:17 > 0:35:20But I think it could make this place very profitable indeed.
0:35:22 > 0:35:24But, before you get carried away
0:35:24 > 0:35:28and you start thinking about how you can renovate and improve this flat,
0:35:28 > 0:35:32there's one future expense you are going to have to take on board.
0:35:32 > 0:35:35The lease on this flat - wait for it, you know what I'm going to say.
0:35:35 > 0:35:37It's only 66 years in length.
0:35:37 > 0:35:40Now, mortgage lenders, they hate short leases,
0:35:40 > 0:35:43so if you intend to sell this on at some point in the near future,
0:35:43 > 0:35:47it'll be worth paying to extend the lease as soon as possible
0:35:47 > 0:35:50because the shorter the lease, the more expensive it tends to get.
0:35:50 > 0:35:51And, in this case,
0:35:51 > 0:35:54you're already looking at tens of thousands of pounds.
0:35:56 > 0:36:00Time to turn to a local property expert to find out how much a lease
0:36:00 > 0:36:02extension could actually cost.
0:36:05 > 0:36:08Having a short lease can be an issue,
0:36:08 > 0:36:10especially cost-wise to renew the lease.
0:36:10 > 0:36:14I mean, I dealt with one recently that was about a 59-year lease
0:36:14 > 0:36:17to extend and we were looking at about £60,000
0:36:17 > 0:36:19is what the freeholder was asking for to extend the lease.
0:36:19 > 0:36:23So it's quite drastic at this point.
0:36:23 > 0:36:26So, what rent could you achieve on this property?
0:36:26 > 0:36:30You'd be looking round about £1,500 to, let's say, £1,600,
0:36:30 > 0:36:34depending on the level of standard of the property, per calendar month.
0:36:34 > 0:36:37However, that potential third bedroom makes the numbers
0:36:37 > 0:36:40even more interesting, as the agent thinks that could rent
0:36:40 > 0:36:46for as much as £2,100 per calendar month. What about resales?
0:36:46 > 0:36:48This flat as a two-bed,
0:36:48 > 0:36:52you could put it on the market at around £650,000.
0:36:52 > 0:36:55As a three-bed, you'd be then looking at a lot higher than that.
0:36:55 > 0:36:57You'd be looking around the £700,000 mark, effectively.
0:36:57 > 0:36:59Maybe 725.
0:37:02 > 0:37:04This Tooting flat.
0:37:04 > 0:37:08Well, it needs refurbishment and it also has that short lease.
0:37:08 > 0:37:11But don't dismiss it out of hand because there is potential here
0:37:11 > 0:37:16to make this property better, bigger, and worth more bucks.
0:37:16 > 0:37:19Let's find out who spotted this one at the auction.
0:37:19 > 0:37:22300, I'm bid. 305, do I see?
0:37:22 > 0:37:23£300,000 I have.
0:37:23 > 0:37:25305 now?
0:37:25 > 0:37:26Yes, 305. 310.
0:37:26 > 0:37:28307, I'll take.
0:37:28 > 0:37:29310.
0:37:29 > 0:37:32After a lukewarm start, the bidding heats up
0:37:32 > 0:37:35and we re-join it at 350,000.
0:37:35 > 0:37:37£350,000.
0:37:37 > 0:37:40351. 352. 353.
0:37:40 > 0:37:41Are you sure?
0:37:43 > 0:37:47Selling to the gentleman at £352,000.
0:37:47 > 0:37:49353. 354, sir.
0:37:49 > 0:37:51355, madam.
0:37:51 > 0:37:57No? With the gentleman at 354 for the first, 354 for the second,
0:37:57 > 0:37:58third and final time.
0:37:58 > 0:38:01Yours, sir, at £354,000.
0:38:03 > 0:38:08That final bid of £354,000 was made by Jez, here on the right,
0:38:08 > 0:38:11and his business partner, Carl.
0:38:11 > 0:38:14Regular viewers may recognise property developer Jez
0:38:14 > 0:38:18as he appeared on Homes Under The Hammer back in 2013
0:38:18 > 0:38:22when he bought two flats in Streatham, London.
0:38:22 > 0:38:25Jez had hoped that the sale of that Streatham property
0:38:25 > 0:38:27would also help fund his wedding.
0:38:27 > 0:38:30So, let's find out what Jez and Carl
0:38:30 > 0:38:32have planned for their latest property purchase.
0:38:34 > 0:38:36Jez and Carl, congratulations.
0:38:36 > 0:38:39Now, Jez, we met, gosh, was it about a year ago?
0:38:39 > 0:38:42And you were saving up some money to get married.
0:38:42 > 0:38:44- That's right, yes. - So, what has happened?
0:38:44 > 0:38:46Did you end up getting married?
0:38:46 > 0:38:48We've got married, we've had a baby son.
0:38:48 > 0:38:50- Oh, wow!- Moved to the countryside to one of the loveliest villages in
0:38:50 > 0:38:55- England.- So you've been extremely busy.- Extremely busy, yes.
0:38:55 > 0:38:57So, this is your next venture.
0:38:57 > 0:38:59Are you doing this as a joint venture with Carl?
0:38:59 > 0:39:01That's right, yes.
0:39:01 > 0:39:04Carl was actually a tenant of mine six years ago.
0:39:04 > 0:39:06We've since become friends
0:39:06 > 0:39:08and I've been trying to persuade him to get on the property ladder.
0:39:08 > 0:39:11What was he like? Was he a nightmare trying to talk you into doing this?
0:39:11 > 0:39:13He's been on the phone to me for years for this.
0:39:13 > 0:39:15So, finally, I'm just going to go for it.
0:39:15 > 0:39:18Now, Jez is really experienced, he's done it quite a few times before,
0:39:18 > 0:39:22haven't you? Why do you think having Carl on board is going to be an
0:39:22 > 0:39:25- asset?- Well, Carl is a boiler engineer, for a start.
0:39:25 > 0:39:27- Wahey.- So, he can handle all the plumbing side of things and,
0:39:27 > 0:39:31as you know, London, having a plumber who's going to turn up
0:39:31 > 0:39:33for sure is a very valuable thing.
0:39:33 > 0:39:35So, how long have you been a plumber for?
0:39:35 > 0:39:36About 15 years now.
0:39:36 > 0:39:40So, hopefully, I can get back here some evenings and weekends,
0:39:40 > 0:39:42during the day, even. Just get it done.
0:39:42 > 0:39:45With Jez's property-developing experience
0:39:45 > 0:39:47and Carl's plumbing expertise,
0:39:47 > 0:39:50this should be a winning combination.
0:39:50 > 0:39:53But what do they plan to do with the layout of the property?
0:39:53 > 0:39:56Well, there is a plan to put it to the freeholder
0:39:56 > 0:39:57to ask to buy the loft space
0:39:57 > 0:40:00and, assuming we can get to a reasonable figure on that,
0:40:00 > 0:40:03we'll convert the loft into an extra bedroom.
0:40:03 > 0:40:05So, how much would you be prepared to pay, first and foremost,
0:40:05 > 0:40:09for that loft space? Because a lot of people don't realise that
0:40:09 > 0:40:13when you buy a top floor flat, you don't actually always own the loft.
0:40:13 > 0:40:16That's right. Yeah. It'll come down to negotiation but I think we'd be
0:40:16 > 0:40:18prepared to pay between 10,000 and 20,000.
0:40:18 > 0:40:21OK. Wow. Wow. That's quite a lot of money, then.
0:40:21 > 0:40:24Well, we want to tuck in an extra toilet
0:40:24 > 0:40:26so that there's two in the property
0:40:26 > 0:40:30and we want to actually move the wall back by 40 centimetres or so
0:40:30 > 0:40:33in the lounge, to increase the size of the space
0:40:33 > 0:40:34and run the kitchen in there
0:40:34 > 0:40:37which will actually give us an extra bedroom.
0:40:37 > 0:40:40So, it will become a three-bedroom property even without the loft done.
0:40:40 > 0:40:44So, if you do get the loft, it'll be a four-bedroom property.
0:40:44 > 0:40:47I don't know whether it'd be better for you guys just to keep it as
0:40:47 > 0:40:48a really good three-bedroom property
0:40:48 > 0:40:50with a bigger lounge and dining area.
0:40:50 > 0:40:53Well, that is the other option and, once we've got the shell,
0:40:53 > 0:40:57if we get the loft and if we get permission to put a dormer up there,
0:40:57 > 0:41:00once we've got the shell up, we can sort of feel what space we've got
0:41:00 > 0:41:01and make a decision accordingly.
0:41:01 > 0:41:03Well, I've got to ask this all-important question.
0:41:03 > 0:41:06The budget. How much do you think you're going to spend here
0:41:06 > 0:41:09- with the loft?- With the loft, £90,000 to £100,000.
0:41:09 > 0:41:11OK. And what about without the loft?
0:41:11 > 0:41:14Without the loft, 50,000 to 60,000.
0:41:14 > 0:41:17Now, that's not all you've got to lay out for, is it?
0:41:17 > 0:41:19Because you've also got to think about this lease.
0:41:19 > 0:41:22You bought this property at auction with a fairly short lease.
0:41:22 > 0:41:24- Is it 66 years is left? - That's correct.
0:41:24 > 0:41:27So, how much do you think you might have to pay to renew?
0:41:27 > 0:41:32We've offered 40,000 but I think they wanted 60, didn't they?
0:41:32 > 0:41:35Hopefully, we'll end up around the 40 mark but it's always plus costs,
0:41:35 > 0:41:39surveyors and solicitors, so it might end up costing us 45.
0:41:39 > 0:41:42So, this budget could reach some dizzying heights.
0:41:42 > 0:41:45Quite apart from the renovations, they could be looking at something
0:41:45 > 0:41:51around 75-80 grand for the loft and the extended lease.
0:41:51 > 0:41:54The guys have already started negotiating the lease extension but,
0:41:54 > 0:41:59with so much to sort out, what kind of timescale are they looking at?
0:41:59 > 0:42:01We would like to get it done as quickly as possible
0:42:01 > 0:42:04but, unfortunately, we're now in the hands of the freeholders
0:42:04 > 0:42:07to give permission and in the hands of the planners
0:42:07 > 0:42:08to get planning profession.
0:42:08 > 0:42:11So we think it'll be about a four-month timeframe to do the work
0:42:11 > 0:42:14but we don't know when we're going to be able to start.
0:42:14 > 0:42:16So, who is the one doing all the legwork?
0:42:16 > 0:42:18All the phone calls, planning applications, who's doing all that?
0:42:18 > 0:42:21You're doing all that. But you can do that from the comfort of your own
0:42:21 > 0:42:24- country house.- That's right.
0:42:24 > 0:42:25Can't you? And you can be here.
0:42:25 > 0:42:27Yeah. That's right.
0:42:27 > 0:42:30I mean, any kind of labouring, helping the guys out and, obviously,
0:42:30 > 0:42:32doing any plumbing and heating.
0:42:32 > 0:42:35Access for other trades, etc.
0:42:35 > 0:42:36Guys, congratulations,
0:42:36 > 0:42:39and I really hope you get the permissions you need.
0:42:39 > 0:42:42- Well done. Lovely to see you again. - Thank you. Cheers.- Thank you.
0:42:44 > 0:42:46Jez and Carl have known each other and worked together for years
0:42:46 > 0:42:48and now they're going into business together
0:42:48 > 0:42:50and they're buying this flat.
0:42:50 > 0:42:52Will they be able to buy that loft space?
0:42:52 > 0:42:55Will they agree on a fee for the new leas?
0:42:55 > 0:42:58And will they get planning permission?
0:43:01 > 0:43:03Earlier, we saw how they got on in this first property.
0:43:03 > 0:43:06But what about the other two? How did they get on?
0:43:06 > 0:43:07Well, let's find out.
0:43:09 > 0:43:11Back now to the northwest of England
0:43:11 > 0:43:14and the historic city of Carlisle.
0:43:15 > 0:43:19It was here I explored this grand five-bedroom townhouse.
0:43:23 > 0:43:25Unfortunately, the property had been devastated -
0:43:25 > 0:43:28like so many others in the city - by flooding.
0:43:29 > 0:43:32To let the house dry out, the ground floor had to be gutted.
0:43:34 > 0:43:37Follow me into here. I've got to tread carefully
0:43:37 > 0:43:39because there's no flooring in this front room.
0:43:39 > 0:43:42It's a really good-size front room
0:43:42 > 0:43:44but look at the damage in here.
0:43:46 > 0:43:49The flood had totally ravaged that ground floor
0:43:49 > 0:43:51but upstairs was untouched
0:43:51 > 0:43:55and was a reminder of what a great home this was and could be again.
0:43:57 > 0:44:01It was Alison, chief executive of a social enterprise,
0:44:01 > 0:44:04who purchased the property for 132 grand,
0:44:04 > 0:44:08and she had some very worthy plans for her acquisition.
0:44:10 > 0:44:15We were set up to provide recovery for people coming out of addiction.
0:44:15 > 0:44:18So that's how we started and we wanted to be more self sustainable
0:44:18 > 0:44:22so we thought we could get some housing and look at rents
0:44:22 > 0:44:23to house homeless people.
0:44:25 > 0:44:26So, once renovated,
0:44:26 > 0:44:32Alison planned to turn this large house into a five-bed HMO.
0:44:32 > 0:44:36She had a timescale of two months and the budget of £30,000
0:44:36 > 0:44:39but, with the promise of volunteers lending a hand,
0:44:39 > 0:44:41she hoped it would be less.
0:44:42 > 0:44:46So, has something good come out of those awful floods?
0:44:52 > 0:44:55We returned four months later and there's a real change.
0:44:57 > 0:45:00The walls have all been re-plastered and painted
0:45:00 > 0:45:03and the flood damage is nowhere to be seen.
0:45:05 > 0:45:08It's had a full rewire and, in case of future flooding,
0:45:08 > 0:45:10all the sockets have been raised.
0:45:13 > 0:45:18That dead space at the back is now a fully working modern kitchen.
0:45:22 > 0:45:25Here's Alison to tell us what's been happening.
0:45:25 > 0:45:28Well, on the ground floor, obviously,
0:45:28 > 0:45:30the last time you were here, all the floor was up
0:45:30 > 0:45:31and there was no flooring down,
0:45:31 > 0:45:34and there was a shower room with a toilet into it.
0:45:34 > 0:45:37We've now make that a shower and toilet and a separate toilet
0:45:37 > 0:45:39for the staff to use.
0:45:39 > 0:45:42We've also made the front sitting room into an office.
0:45:42 > 0:45:45The back room, which is a lovely sitting room, as well,
0:45:45 > 0:45:47we've used as a communal area for our residents.
0:45:49 > 0:45:53The residents are, of course, what this project was all about.
0:45:53 > 0:45:56So the upstairs has been reconfigured.
0:45:56 > 0:45:59They've split that large bedroom into a smaller bedroom
0:45:59 > 0:46:02and a second staff office.
0:46:02 > 0:46:07One of the concerns was that planning issues would cause delays.
0:46:07 > 0:46:10Well, actually, in the end we didn't need planning permission because,
0:46:10 > 0:46:13even though we've made it into a six-bedroom,
0:46:13 > 0:46:14we're having one as an office
0:46:14 > 0:46:18so there's only going to be five residents living.
0:46:18 > 0:46:19If we went over six,
0:46:19 > 0:46:21then we would need planning permission of a change of use,
0:46:21 > 0:46:24but as it was just a five-bedroom and we're keeping it to only five
0:46:24 > 0:46:26residents, we were able to not need planning permission
0:46:26 > 0:46:29or building regulations, which was a good saving.
0:46:32 > 0:46:34While luck went their way with planning,
0:46:34 > 0:46:39initially they weren't so lucky on another front -
0:46:39 > 0:46:40finding people to do the work.
0:46:42 > 0:46:44We couldn't even get people in to give us quotes,
0:46:44 > 0:46:47they were so busy for the flood zone areas.
0:46:47 > 0:46:49So that's been the biggest challenge,
0:46:49 > 0:46:50but also the most rewarding.
0:46:50 > 0:46:53Because we couldn't get the tradesmen in, we had to
0:46:53 > 0:46:57rely on our residents and volunteers and they've all come in and they've
0:46:57 > 0:46:59really got stuck in and it's wonderful to see.
0:46:59 > 0:47:02We got 50% off paint,
0:47:02 > 0:47:05we just went out there and I rang round and went, sort of,
0:47:05 > 0:47:08cap in hand, begging, and they've been really generous.
0:47:08 > 0:47:11I have to say, the community has been really, really good to us.
0:47:11 > 0:47:15So, with the exception of an electrician, a plumber,
0:47:15 > 0:47:19and plasterer, Alison's volunteers have come up trumps.
0:47:19 > 0:47:23So, with all hands on deck, how has the budget held out?
0:47:23 > 0:47:29We've spent £25,432 and that's all the invoices in
0:47:29 > 0:47:34and we're hopeful that we'll get a £5,000 grant resilience
0:47:34 > 0:47:36back from Carlisle City Council.
0:47:36 > 0:47:39So, in all, we've come in at 20,000.
0:47:39 > 0:47:42Alison has clearly been watching the pennies,
0:47:42 > 0:47:45coming in much lower than her 30 grand budget,
0:47:45 > 0:47:48but how long did it take her and her volunteers?
0:47:49 > 0:47:52Well, it's taken us about 3½ months
0:47:52 > 0:47:53to get to the stage where we are now.
0:47:53 > 0:47:55Obviously, for an HMO, we still need the fire doors
0:47:55 > 0:47:58and the fire alarms, which is getting put in next week.
0:47:58 > 0:48:01However, considering we didn't have the tradesmen,
0:48:01 > 0:48:03I think we've done pretty well.
0:48:05 > 0:48:07The team have done a really good job.
0:48:07 > 0:48:12Alison has managed to create a home for five people in need,
0:48:12 > 0:48:15and they will all be moving in within the next two weeks,
0:48:15 > 0:48:19and all for a total cost of £157,500.
0:48:22 > 0:48:26However, Alison's enterprise is investing in property
0:48:26 > 0:48:27as well as people
0:48:27 > 0:48:31so we've asked two local estate agents to give as their thoughts.
0:48:31 > 0:48:32First, the agent who saw it before.
0:48:34 > 0:48:39You know, they've done a very nice job of the refurb after the flood.
0:48:39 > 0:48:40Downstairs is a good standard.
0:48:40 > 0:48:43They've kept parts of it to run for the business
0:48:43 > 0:48:46and, overall, you know, it's a good property.
0:48:46 > 0:48:47The layout of the property works well
0:48:47 > 0:48:50and the subtle improvements that have been made,
0:48:50 > 0:48:51including splitting the bedroom and
0:48:51 > 0:48:54the ground floor bathroom work well, certainly if the property
0:48:54 > 0:48:58is going to be is going to be used for multiple occupants.
0:48:58 > 0:49:01The agents seem pleased with the standard of refurbishment
0:49:01 > 0:49:05but will the risk of flooding affect the property's value?
0:49:05 > 0:49:07With the properties in this part of Carlisle, obviously,
0:49:07 > 0:49:10a lot of them flooded and, as yet,
0:49:10 > 0:49:14we're still not seeing any of the refurbished houses coming back to
0:49:14 > 0:49:17the market. Pre-flood, this house would have been, in this condition,
0:49:17 > 0:49:20certainly, somewhere in the region of £250,000.
0:49:20 > 0:49:22But until the confidence returns,
0:49:22 > 0:49:24and people start buying houses again,
0:49:24 > 0:49:29we see these prices rise, we have to go with, you know,
0:49:29 > 0:49:33stripped-out flood values, plus the cost of a refurbishment.
0:49:33 > 0:49:36Clearly, it's going to take a while for this area to get back to normal
0:49:36 > 0:49:40and both agents agree - valuations are tricky.
0:49:40 > 0:49:45But both thought it would sell for around £175,000 to £180,000,
0:49:45 > 0:49:48which means the property is worth 22,500 grand more
0:49:48 > 0:49:51than Alison has spent on it.
0:49:51 > 0:49:53As far as rentals go,
0:49:53 > 0:49:57the estimates from the agents were around £90 per week per room,
0:49:57 > 0:50:00which would be a decent yield of nearly 13%.
0:50:02 > 0:50:05I think 180 is a fair price
0:50:05 > 0:50:08and that makes the company that we've made a profit.
0:50:08 > 0:50:11However, because we're not selling,
0:50:11 > 0:50:14I'm not really interested in that side of things but it's always good
0:50:14 > 0:50:17for the future and, depending on what happens to
0:50:17 > 0:50:20Carlisle's flood defences, hopefully, the property market
0:50:20 > 0:50:23will go up in value over the years.
0:50:23 > 0:50:26So, what's next for Alison and her business?
0:50:26 > 0:50:29I would love us to become a registered social landlord.
0:50:29 > 0:50:32That's maybe the next step but, from what I'm gathering,
0:50:32 > 0:50:33it's quite difficult to get there.
0:50:33 > 0:50:37So, anybody out there that wants to help, here I am!
0:50:40 > 0:50:43Back now to Tooting in London,
0:50:43 > 0:50:46where Lucy gave this flat on two floors the once over.
0:50:48 > 0:50:50Straightaway, I'm thinking,
0:50:50 > 0:50:52"Is there room to move that kitchen in here?"
0:50:52 > 0:50:56You could then turn the kitchen into another bedroom and,
0:50:56 > 0:51:00especially in London, more bedrooms adds value and, in effect, well,
0:51:00 > 0:51:02it would make this house more saleable.
0:51:03 > 0:51:06The downsides were the short 66-year lease
0:51:06 > 0:51:08which could cost a lot to extend
0:51:08 > 0:51:12and possibly the extra expense to develop the loft,
0:51:12 > 0:51:14as it didn't belong to the auction lot.
0:51:16 > 0:51:19And, of course, all the permission and building plans to get through.
0:51:22 > 0:51:25Property developer Jez and his new business partner, Carl,
0:51:25 > 0:51:30who is a heating engineer, paid £354,000 for it -
0:51:30 > 0:51:32£54,000 over the guide price.
0:51:34 > 0:51:36So, what is the big, grand plan here?
0:51:36 > 0:51:39Well, there is a plan to approach the freeholder
0:51:39 > 0:51:40to ask to buy the loft space.
0:51:40 > 0:51:44We'll convert the loft into an extra bedroom and we want to actually
0:51:44 > 0:51:47move the wall back by 40 centimetres or so
0:51:47 > 0:51:50in the lounge to increase the size of the space and run the kitchen in
0:51:50 > 0:51:54there, which will actually give us extra bedroom.
0:51:54 > 0:51:57Jez and Carl were relying on getting a lease extension and planning
0:51:57 > 0:52:02permission before starting work but estimated the work would take
0:52:02 > 0:52:06approximately four months with a budget of 90,000 to 100,000.
0:52:07 > 0:52:11Well, we've returned 17 months later
0:52:11 > 0:52:14and, well, outside doesn't look much different.
0:52:15 > 0:52:18Let's see if anything's been going on inside.
0:52:20 > 0:52:23# Everything changes but you
0:52:23 > 0:52:27# We're a thousand miles apart but you know I love you. #
0:52:29 > 0:52:32The kitchen units have been replaced but, apart from a clean-up
0:52:32 > 0:52:35and coat of paint, not much else has changed.
0:52:38 > 0:52:40But someone has moved in
0:52:40 > 0:52:42and the spacious sitting room is serving as a bedroom.
0:52:42 > 0:52:46Come to think of it, that's quite a few changes.
0:52:46 > 0:52:49Not least a change of plan,
0:52:49 > 0:52:52and that short lease was the main reason.
0:52:52 > 0:52:53Over to Jez.
0:52:54 > 0:52:57It was going to be a drawn-out process extending the lease.
0:52:57 > 0:53:02Carl and I decided jointly that I would buy him out and I would
0:53:02 > 0:53:05sort of take the long-haul approach to this project.
0:53:05 > 0:53:08So my brother came in and helped me freshen the place up.
0:53:08 > 0:53:12We actually changed the kitchen completely and three guys came in
0:53:12 > 0:53:15and rented it off me for a year and it's actually worked very well.
0:53:17 > 0:53:20So, the old plan has gone out of the window.
0:53:20 > 0:53:23But Jez has been working on a plan B.
0:53:25 > 0:53:28In conjunction with the leaseholder downstairs,
0:53:28 > 0:53:32I actually bought the freehold from the freeholder and then,
0:53:32 > 0:53:33about six months later,
0:53:33 > 0:53:37persuaded the leaseholder downstairs to also sell his flat to me.
0:53:37 > 0:53:40So, I've actually ended up with the whole building top to bottom.
0:53:40 > 0:53:44I subsequently went to the council and applied for planning
0:53:44 > 0:53:48to turn it from two flats in the building to three flats -
0:53:48 > 0:53:50one on each floor - and it came through straightaway,
0:53:50 > 0:53:52which we were really pleased about.
0:53:52 > 0:53:54Well, I was not expecting THAT.
0:53:54 > 0:53:58So, with three flats being in the plan now, what's he going to do?
0:54:00 > 0:54:02Starting at the top of the building,
0:54:02 > 0:54:05the main body of the house will have a mansard extension.
0:54:05 > 0:54:07The rear addition here,
0:54:07 > 0:54:10we're actually going to increase the height of the roof
0:54:10 > 0:54:14by about 40 centimetres or so, keeping the same slope of the roof,
0:54:14 > 0:54:15and, here on the ground floor,
0:54:15 > 0:54:18we're actually going to do a four-metre extension
0:54:18 > 0:54:21from this wall outwards, which will come to about here,
0:54:21 > 0:54:23and that extension will actually also wrap around
0:54:23 > 0:54:26into the alleyway there, leaving a skylight,
0:54:26 > 0:54:29so we've still got light into the back bedroom on the ground floor and
0:54:29 > 0:54:33that will actually - once we take out these two walls -
0:54:33 > 0:54:37give a really big space of something like 30 square metres,
0:54:37 > 0:54:40which will have lovely glass bifolding doors going out
0:54:40 > 0:54:44into the garden and be a really great entertaining space.
0:54:44 > 0:54:46Well, it looks like Jez has found
0:54:46 > 0:54:49a very clever way to keep this project afloat.
0:54:49 > 0:54:52How is he going to use the space on the first floor?
0:54:53 > 0:54:57The first floor will become a self-contained flat with
0:54:57 > 0:55:00the living room and kitchen at the front,
0:55:00 > 0:55:02main bedroom at the back
0:55:02 > 0:55:05and a dining room/second bedroom in the middle.
0:55:05 > 0:55:08Up in the loft, we're going to have a one-bedroom flat,
0:55:08 > 0:55:12again using the rear second floor as its living room kitchen
0:55:12 > 0:55:16and the loft space itself as a bedroom and bathroom.
0:55:16 > 0:55:19Jez had expected his total refurb costs,
0:55:19 > 0:55:23including that loft extension, to come in at 90,000 to 100,000
0:55:23 > 0:55:27but, of course, that wasn't including the new plans.
0:55:27 > 0:55:30What kind of budget is he looking at now?
0:55:30 > 0:55:33I've actually invested about 850,000 here so far.
0:55:33 > 0:55:36To implement the planning permission that we've got, at the moment,
0:55:36 > 0:55:41our best guess is about £350,000 to do the whole job, top to bottom.
0:55:43 > 0:55:47Crikey! With this project spend now looking like somewhere
0:55:47 > 0:55:49around the £1.2 million mark,
0:55:49 > 0:55:53it's time to find out what two local estate agents
0:55:53 > 0:55:55will make of Jez's plans,
0:55:55 > 0:55:58starting with the agent who saw the flat originally.
0:56:00 > 0:56:03The plans that have been passed for the building are brilliant.
0:56:03 > 0:56:05I mean, in this location, with Tooting Bec station
0:56:05 > 0:56:08just around the corner, the plans and what they've done is actually
0:56:08 > 0:56:10properties that are well sought-after, I would say.
0:56:10 > 0:56:13I think they're really good plans and I think they're going to
0:56:13 > 0:56:16work well to the kind of demographic for this area, as well.
0:56:16 > 0:56:18Well, the plans have impressed.
0:56:18 > 0:56:22And both agents agreed that, in its current state,
0:56:22 > 0:56:26the building could be worth a combined total of £1 million
0:56:26 > 0:56:29and, less the freehold purchase price of 50,000,
0:56:29 > 0:56:34that's a pre-tax profit of £150,000.
0:56:34 > 0:56:37So, what are the valuations once the work is complete?
0:56:37 > 0:56:41He could be looking anything from around the £700,000 mark
0:56:41 > 0:56:44for the ground-floor three-bedroom flat, with the garden.
0:56:44 > 0:56:46The first-floor flat is a one-bed
0:56:46 > 0:56:49and also the top-floor flat is a one-bed.
0:56:49 > 0:56:51He would be looking, I would say,
0:56:51 > 0:56:53probably around the £425,000, £450,000 mark.
0:56:53 > 0:56:56The ground-floor flat would sell for in the region
0:56:56 > 0:56:59of £680,000 to £700,000.
0:56:59 > 0:57:02The upper-floor flat, in my opinion, would sell for in the region of
0:57:02 > 0:57:04£400,000 to £420,000
0:57:04 > 0:57:07and the top-floor flat, in my opinion
0:57:07 > 0:57:10would sell for £400,000 to £420,000.
0:57:10 > 0:57:14If Jez were to achieve those top valuations, that could be a total
0:57:14 > 0:57:20of 1.6 million, which could mean a pre-tax profit of around £400,000.
0:57:20 > 0:57:25And, if Jez were to make that first-floor flat a two-bed,
0:57:25 > 0:57:29both agents agreed it could be worth around £600,000.
0:57:29 > 0:57:34That would give him a very healthy pre-tax profit of £550,000.
0:57:34 > 0:57:36So, what does Jez think of those valuations?
0:57:38 > 0:57:39Yeah, they're really encouraging.
0:57:39 > 0:57:42My own view was actually pretty similar to those.
0:57:42 > 0:57:44I'm still keen to sell at least two,
0:57:44 > 0:57:47maybe all three of them when the project is done.
0:57:47 > 0:57:50And has he got his eye on any other properties?
0:57:50 > 0:57:53This one's actually quite a chunky project so
0:57:53 > 0:57:57I'll have to get this one done, hopefully sold,
0:57:57 > 0:57:59and then go back into the market.
0:57:59 > 0:58:02Now I've got a kid, I've got quite a few bills to pay
0:58:02 > 0:58:03so I've got to keep earning money.
0:58:03 > 0:58:05But I love what I do, so that's not a problem.
0:58:08 > 0:58:10Well, if you're thinking about buying at auction,
0:58:10 > 0:58:14hopefully we've given you some useful hints and tips.
0:58:14 > 0:58:17And maybe we've even inspired you to take the plunge.
0:58:17 > 0:58:20Yes, and even if you'd rather sit on the side-lines and watch from there,
0:58:20 > 0:58:22we don't mind cos we've got lots more stories where that came from
0:58:22 > 0:58:26- here on Homes Under The Hammer. Bye-bye.- See you soon.- Goodbye.