0:00:02 > 0:00:04Hello. Now, nobody has a crystal ball, or one that works, anyway.
0:00:04 > 0:00:06So, sometimes, well, it's quite difficult, isn't it,
0:00:06 > 0:00:08to predict the property market.
0:00:08 > 0:00:10Yeah, it shouldn't cause too much unnecessary stress,
0:00:10 > 0:00:12but you should always be thinking, "How can I add value?"
0:00:12 > 0:00:16Well, one way you could possibly do that is by heading down
0:00:16 > 0:00:17to your local property auction.
0:00:44 > 0:00:47Well, property auctions throw up all sorts of different lots.
0:00:47 > 0:00:51Over the years, we must have seen literally thousands.
0:00:51 > 0:00:53- Yeah.- And they all have their own unique story.
0:00:53 > 0:00:56Yeah, but what did the auction catalogues offer today's buyers?
0:00:56 > 0:00:57Ah, let's find out.
0:00:59 > 0:01:03In Surrey, this maisonette is ripe for reconfiguring.
0:01:03 > 0:01:06Yeah. First thought for me is knock this through,
0:01:06 > 0:01:07give yourself a nice big lounge.
0:01:09 > 0:01:12Yes, the partitions are easy to remove, and in this house in Derby,
0:01:12 > 0:01:15it won't take much to get rid of this wall.
0:01:19 > 0:01:22And in Kent, Lucy explores a shop with a development opportunity
0:01:22 > 0:01:23at the back!
0:01:23 > 0:01:26If there's any way you could get planning on that plot, well,
0:01:26 > 0:01:28it could be wheelie, wheelie good!
0:01:31 > 0:01:33All these properties have been sold at auction,
0:01:33 > 0:01:35and we'll find out who bought them and what they paid
0:01:35 > 0:01:37when they went under the hammer.
0:01:37 > 0:01:39Sold, 190.
0:01:42 > 0:01:45This is the village of Ewell in Surrey.
0:01:45 > 0:01:47It lies on the edge of Greater London,
0:01:47 > 0:01:50so is very much a commuter belt territory.
0:01:50 > 0:01:53The name Ewell originates from the old English word
0:01:53 > 0:01:55for spring or river source,
0:01:55 > 0:01:59and indeed, the village has the main spring and pond
0:01:59 > 0:02:03which form the head of the Hogsmill River, a branch of the Thames.
0:02:10 > 0:02:13Now, half a mile from the train station
0:02:13 > 0:02:15down this very busy cul-de-sac,
0:02:15 > 0:02:17and it just goes to show,
0:02:17 > 0:02:20if you haven't got a lot of off-street parking in a cul-de-sac,
0:02:20 > 0:02:22it can become an issue.
0:02:22 > 0:02:26Property I'm here to see is that first-floor maisonette.
0:02:26 > 0:02:31It's got three bedrooms and a guide price of £130,000.
0:02:31 > 0:02:33Now, I do know after reading the auction catalogue,
0:02:33 > 0:02:37there is the possibility of off-street parking to the left.
0:02:37 > 0:02:40Let's hope upstairs is pretty.
0:02:44 > 0:02:48The current paved parking belongs to the lower maisonette.
0:02:48 > 0:02:50I reckon if you cut that hedge back,
0:02:50 > 0:02:52lay down some suitable hard standing,
0:02:52 > 0:02:55there'd easily be room to park a car in the section
0:02:55 > 0:02:57that belongs to our maisonette.
0:03:00 > 0:03:02Bit of a hallway as you come in.
0:03:04 > 0:03:05You've got bedroom one there.
0:03:05 > 0:03:07Good-sized bedroom one, double bedroom.
0:03:07 > 0:03:09Down the hallway, kitchen.
0:03:09 > 0:03:12It is a little bit tight, but it's what to expect.
0:03:12 > 0:03:16Dated, does need to be changed throughout in there.
0:03:16 > 0:03:18What else have we got down here?
0:03:18 > 0:03:21Family bathroom in a similar condition to the kitchen,
0:03:21 > 0:03:23would need to be changed.
0:03:23 > 0:03:25Another bedroom there with fitted wardrobes,
0:03:25 > 0:03:26so that's bedroom number two.
0:03:26 > 0:03:28Into the main lounge.
0:03:29 > 0:03:33So that would be bedroom number three, which is off the lounge.
0:03:33 > 0:03:35So, hold on a sec, let me check this.
0:03:38 > 0:03:41Yeah, first thought for me is knock this through,
0:03:41 > 0:03:43give yourself a nice big lounge.
0:03:43 > 0:03:45However, if you do need that third bedroom,
0:03:45 > 0:03:48you could quite easily block that off
0:03:48 > 0:03:50and put the door to that bedroom off the hallway.
0:03:50 > 0:03:53Then you'd still have your three bedrooms,
0:03:53 > 0:03:54you'd still have your lounge.
0:03:54 > 0:03:57I don't mind it, actually. I don't mind the configuration at all.
0:03:57 > 0:03:59It just needs to be modernised.
0:04:02 > 0:04:04Don't be fooled by the radiators.
0:04:04 > 0:04:06I suspect this is where the boiler used to be,
0:04:06 > 0:04:09so a new central heating system is a must,
0:04:09 > 0:04:11but there's no point in heating the house
0:04:11 > 0:04:14if all the heat's going to disappear out the windows.
0:04:14 > 0:04:18MUSIC: Cold as Ice by Foreigner
0:04:20 > 0:04:24Now, what I have noticed through the whole of this flat,
0:04:24 > 0:04:26behind these beautiful net curtains,
0:04:26 > 0:04:29there's aluminium windows throughout.
0:04:29 > 0:04:31Now, they would all need changing.
0:04:31 > 0:04:33They're all dated.
0:04:33 > 0:04:35They're not very pretty.
0:04:36 > 0:04:38So for me, get rid of them.
0:04:38 > 0:04:42But, and there is another bonus beyond the net curtains.
0:04:42 > 0:04:44You actually get a bit of back garden.
0:04:44 > 0:04:46That little bit at the back, that walled garden.
0:04:46 > 0:04:48Got a bit of an outside space as well.
0:04:48 > 0:04:50Bully bonus.
0:04:50 > 0:04:54Access to the garden is through a shared gateway,
0:04:54 > 0:04:57and a narrow path which is overgrown, as you can see.
0:04:57 > 0:05:00The garden itself could do with a bit of a mow
0:05:00 > 0:05:03and some green-fingered TLC. But that said,
0:05:03 > 0:05:07it's a good size and perfect for barbecues on a summer's day.
0:05:07 > 0:05:08Now, I think this flat is fine.
0:05:08 > 0:05:10It just needs modernising.
0:05:10 > 0:05:13But there is one big problem.
0:05:13 > 0:05:17It has an incredibly short lease of around 37 years.
0:05:17 > 0:05:21What that means is, lenders won't touch it.
0:05:21 > 0:05:22And if you want to extend that lease,
0:05:22 > 0:05:24it's going to cost you a lot of money.
0:05:25 > 0:05:29You legally have the right to extend a short lease,
0:05:29 > 0:05:31but you must have owned the property for two years.
0:05:31 > 0:05:34And bear in mind, the shorter the lease,
0:05:34 > 0:05:35the bigger the cost of extending it.
0:05:40 > 0:05:43So this auction property has its drawbacks,
0:05:43 > 0:05:46but there's definitely good potential here.
0:05:46 > 0:05:49And what about the area it's located in?
0:05:49 > 0:05:53We asked along an estate agent to tell us more about Ewell.
0:05:53 > 0:05:55Ewell's a fantastic village.
0:05:55 > 0:05:57Got some very, very good outstanding schools in and around the local
0:05:57 > 0:06:00community. Got some great links in and out of London.
0:06:00 > 0:06:02You're nice and close to Gatwick as well,
0:06:02 > 0:06:04which is always fantastic for commuters.
0:06:04 > 0:06:06Very nice village, very nice atmosphere. Very desirable.
0:06:08 > 0:06:10What about the maisonette itself?
0:06:10 > 0:06:12It would definitely need modernisation throughout.
0:06:12 > 0:06:14So that would be new kitchen, new bathroom.
0:06:14 > 0:06:16In doing so, you'd probably look at the decor as well
0:06:16 > 0:06:19and then the major part would be to extend that lease,
0:06:19 > 0:06:21to have a look at that. Other than that,
0:06:21 > 0:06:24it's a very good-sized flat and will be appealing in the marketplace.
0:06:24 > 0:06:27Can he suggest how much it could be worth on the resale market?
0:06:27 > 0:06:30With an extended lease and modernised throughout,
0:06:30 > 0:06:32we'd be looking to market the property anywhere
0:06:32 > 0:06:34from £325,000 to £350,000.
0:06:34 > 0:06:36And if put on the rental market?
0:06:36 > 0:06:38We'd be looking to market it anywhere
0:06:38 > 0:06:42from £1,200 to £1,300 per calendar month.
0:06:42 > 0:06:45I actually do like this flat.
0:06:45 > 0:06:46It does need modernising.
0:06:46 > 0:06:48The windows need to be changed throughout,
0:06:48 > 0:06:50it needs a new bathroom and a new kitchen.
0:06:50 > 0:06:52And it has got that short lease as well.
0:06:52 > 0:06:55Let's find out who had the cash when it went under the hammer.
0:06:56 > 0:06:58Right, lot 59.
0:06:58 > 0:07:00Three-bed maisonette.
0:07:00 > 0:07:03Start at 130 on this one.
0:07:03 > 0:07:05Gent standing up, 130.
0:07:05 > 0:07:07You sitting down, 135.
0:07:07 > 0:07:09140, sir.
0:07:09 > 0:07:12There was plenty of interest from a packed auction,
0:07:12 > 0:07:15and we rejoin at £188,000.
0:07:15 > 0:07:18188. 189.
0:07:18 > 0:07:21Yes. 190.
0:07:21 > 0:07:24190. 191.
0:07:24 > 0:07:26Yes, no?
0:07:26 > 0:07:28No. 190, standing up.
0:07:28 > 0:07:29Anyone else?
0:07:29 > 0:07:33Another thousand? If not, 190.
0:07:33 > 0:07:36First time, second time.
0:07:36 > 0:07:39Third and last time.
0:07:39 > 0:07:41Sold, 190. Well done.
0:07:44 > 0:07:48Making that bid of 190 grand was building contractor Steve.
0:07:48 > 0:07:51He bought this for his daughter Grace,
0:07:51 > 0:07:55so I met him back at the property to find out about his new purchase.
0:07:59 > 0:08:01Steve, nice to meet you.
0:08:01 > 0:08:04- Good to see you.- Congratulations as well, pal.- Thank you.
0:08:04 > 0:08:06Why this? What was it about the property that you liked?
0:08:06 > 0:08:09It's really close to the mainline station,
0:08:09 > 0:08:13and it's the last stop so that you can use your Oyster card.
0:08:13 > 0:08:15Is it really?
0:08:15 > 0:08:17- That's cool!- Yeah. - So the Oyster card,
0:08:17 > 0:08:19your daughter will be travelling in and out of London?
0:08:19 > 0:08:22Yeah, she needs to. She works in Pall Mall.
0:08:22 > 0:08:24So she needs to be able to get there.
0:08:24 > 0:08:27At the moment, we're just outside of that.
0:08:27 > 0:08:30- OK.- So it would be nice for her to be using the Oyster card.
0:08:30 > 0:08:32And it's great, isn't it? It's the last stop as well.
0:08:32 > 0:08:33- Last stop.- How lucky.
0:08:33 > 0:08:36- Yeah.- So have you been into property a long time, or...?
0:08:36 > 0:08:38What's your day job? What did you do before?
0:08:38 > 0:08:40I've got a design build company.
0:08:40 > 0:08:44Design. Will you be chopping and changing this a bit, or...?
0:08:44 > 0:08:46I don't think there's too much options on this one.
0:08:46 > 0:08:51- OK.- And my daughter is going to be the project manager.
0:08:51 > 0:08:54So she will be deciding what goes on in this one.
0:08:54 > 0:08:56Really? That'll be fun!
0:08:56 > 0:08:58- That'll be fun! - I'll be the contractor.
0:08:58 > 0:09:01Working with your daughter on a project.
0:09:01 > 0:09:04- Yeah, exactly.- Oh, my gosh. You're going to give her the reins?
0:09:04 > 0:09:05Give her the reins.
0:09:05 > 0:09:08But make sure it's within certain purse strings.
0:09:08 > 0:09:09Yeah, of course.
0:09:09 > 0:09:11# As long as I foot the bill
0:09:11 > 0:09:13# I pay the cost
0:09:13 > 0:09:16# To be the boss. #
0:09:18 > 0:09:20Well, he's bought the house,
0:09:20 > 0:09:23but I don't think Steve's going to be the boss on this one.
0:09:23 > 0:09:25Daughter Grace is an interior designer,
0:09:25 > 0:09:28and she's used to dealing with budgets
0:09:28 > 0:09:29that run into millions of pounds.
0:09:29 > 0:09:34Unfortunately, she's got less to work with on this project.
0:09:34 > 0:09:37We hope to do it for 15,000.
0:09:37 > 0:09:39But 20, absolute max.
0:09:39 > 0:09:41Because it's for family as well.
0:09:41 > 0:09:43- Yeah.- You have to go that bit further, don't you?
0:09:43 > 0:09:45Yeah. Well, at the moment, there's no parking,
0:09:45 > 0:09:49so parking is an issue in this road.
0:09:49 > 0:09:52So we've got to generate a driveway, which is going to take up, you know,
0:09:52 > 0:09:54a fair bit of the budget.
0:09:54 > 0:09:58So, tell me what you're going to do to this place, specifically.
0:09:58 > 0:10:03Um, new windows. None of them are in keeping with the rest of the road.
0:10:03 > 0:10:05There's a certain look that this road has got,
0:10:05 > 0:10:09so we're just going to create that look with the same type of windows.
0:10:09 > 0:10:11New central heating.
0:10:11 > 0:10:13New bathroom, new kitchen.
0:10:13 > 0:10:14Redec throughout.
0:10:14 > 0:10:16The door behind me is going to be blocked up
0:10:16 > 0:10:19and we're just going to create the third room.
0:10:19 > 0:10:20- OK.- The third bedroom.
0:10:20 > 0:10:24So, rather than having it as a sort of a through lounge.
0:10:24 > 0:10:27Gotcha. Do know what kind of finish Grace will be looking for?
0:10:27 > 0:10:29I would imagine it'll be flat panel.
0:10:29 > 0:10:32- OK.- And just a matte finish.
0:10:32 > 0:10:34- Modern?- But I shall wait and see.
0:10:34 > 0:10:36- Very modern, yeah. - Very modern?- Yeah.
0:10:36 > 0:10:38What they call minimalist.
0:10:38 > 0:10:41Yes. OK, that's cool. So, are you worried that Grace
0:10:41 > 0:10:44is going to take over and just edge that budget too much for you?
0:10:44 > 0:10:49We've got to make sure, and we've got to do, you know, a bill
0:10:49 > 0:10:54of quantities and make sure that everything's within the price range.
0:10:54 > 0:10:56Albeit that she's got four brothers,
0:10:56 > 0:11:01- so those brothers are going to be asked to step in and help out.- Ah!
0:11:01 > 0:11:03This is a handy family.
0:11:03 > 0:11:06Not only is Grace an interior designer,
0:11:06 > 0:11:09dad Steve does high-end new builds for clients,
0:11:09 > 0:11:11and the four brothers are no slouches either.
0:11:11 > 0:11:13My oldest son works for me.
0:11:13 > 0:11:16He's a plasterer and tiler.
0:11:16 > 0:11:19The next son down is an electrician.
0:11:19 > 0:11:21And the next son down is...
0:11:21 > 0:11:24He's got a telecoms company, but he can... He can help.
0:11:24 > 0:11:27And the youngest boy is going to be coming in and helping out
0:11:27 > 0:11:29- with all the stripping off all the paper.- See, honestly,
0:11:29 > 0:11:32Grace has got everything covered. She'll be like that,
0:11:32 > 0:11:35she'll be clicking her fingers saying, "Wrong colour tiles".
0:11:35 > 0:11:39- Yeah.- Good for her!- She's looking forward to ordering her dad around.
0:11:39 > 0:11:41- And her brothers.- Yes!
0:11:41 > 0:11:44MUSIC: Daddy Cool by Darts
0:11:52 > 0:11:55There's no doubt Grace has got it made.
0:11:55 > 0:11:59With dad Steve at the helm and four very useful brothers to call on,
0:11:59 > 0:12:03this should be a hassle-free path to success.
0:12:03 > 0:12:05Ah, I was forgetting one thing.
0:12:05 > 0:12:09The property does come with a very short lease.
0:12:09 > 0:12:15Which we knew that we only had a certain amount to spend on the basis
0:12:15 > 0:12:20that there is going to be some fee to pay further down the line.
0:12:20 > 0:12:23But as of yet, we don't know who the freeholder is,
0:12:23 > 0:12:28so we haven't been able to even think about that down the line.
0:12:28 > 0:12:33Steve needs to track down the freeholder to negotiate that lease extension.
0:12:33 > 0:12:36If the freeholder can't be traced,
0:12:36 > 0:12:39he can apply to the County Court for a vesting order.
0:12:39 > 0:12:42This is an application to have the freehold
0:12:42 > 0:12:46transferred to the leaseholder for a sum of money decided by the court.
0:12:46 > 0:12:49The cash is put aside, should the freeholder eventually turn up.
0:12:49 > 0:12:53If you find yourself in this position, get some legal advice.
0:12:53 > 0:12:55So what about a timescale then, Steve?
0:12:55 > 0:12:58At the moment, we've got around about six weeks.
0:12:58 > 0:13:00Well, do you know the values in this area?
0:13:00 > 0:13:03Do you know what you would expect to pay for a flat like this?
0:13:03 > 0:13:05If it had a good lease...
0:13:05 > 0:13:08- Yeah.- ..somewhere, 320-350.
0:13:08 > 0:13:11- And you paid 1...- 90.- That's good, isn't it? If you get it right.
0:13:11 > 0:13:13I know it's going to be your daughter's home, but...
0:13:13 > 0:13:17Yeah, if you get it right, it'll work out well.
0:13:17 > 0:13:20If we don't get it right, we've got a property for a long time.
0:13:20 > 0:13:22Yeah, exactly. Which is not a problem either.
0:13:22 > 0:13:24- No, it's not a problem.- Because you can keep hold of it.- Yeah.
0:13:24 > 0:13:29- I'm pretty sure your son will dive in there, if your daughter does one.- Yeah, exactly.
0:13:29 > 0:13:31Well, good luck. Grace will be taking over before you know it, pal.
0:13:31 > 0:13:32- All the best.- Thank you.
0:13:32 > 0:13:34Take care.
0:13:34 > 0:13:37Firstly, what a great dad Steve is,
0:13:37 > 0:13:39helping his daughter Grace get on the property ladder.
0:13:39 > 0:13:42He's given himself a decent budget of £15,000
0:13:42 > 0:13:46and that short lease doesn't seem to bother him.
0:13:46 > 0:13:48I think with Grace's interior design eye
0:13:48 > 0:13:50and the brawn and muscle of her brothers,
0:13:50 > 0:13:52I think this place will be bang on.
0:13:52 > 0:13:56You can find out how they get on later in the programme.
0:14:00 > 0:14:03Derby was first settled in the seventh century,
0:14:03 > 0:14:08and the name's believed to mean "village of the deer" in old English.
0:14:08 > 0:14:11It was a key area in the Industrial Revolution
0:14:11 > 0:14:13and was granted city status in 1977.
0:14:13 > 0:14:16It's now home to the University of Derby,
0:14:16 > 0:14:20ranked in the top 100 universities in England and Wales.
0:14:20 > 0:14:22History lesson over,
0:14:22 > 0:14:25it's now time for a lecture in student economics.
0:14:25 > 0:14:30Well, the property I'm here to see, it really is all about location,
0:14:30 > 0:14:32because we are walking distance from the university.
0:14:32 > 0:14:37So, the idea of a four-bedroom house, guide price of £100,000...
0:14:37 > 0:14:41Oh, I'm thinking...student lets, yeah!
0:14:41 > 0:14:45You can only spot these type of auction properties
0:14:45 > 0:14:48by doing your research, and it can really pay off.
0:14:51 > 0:14:55So if I am starting with that sort of student accommodation in mind,
0:14:55 > 0:14:57I'm thinking about maximising the number of rooms.
0:14:57 > 0:14:58So let's see what we can do.
0:14:58 > 0:15:01Downstairs loo, which is quite useful,
0:15:01 > 0:15:02and then stairs up to your bedrooms.
0:15:02 > 0:15:04Now, here's the exact case in point.
0:15:04 > 0:15:07That is under... I guess, normal circumstances,
0:15:07 > 0:15:09some kind of a living room, maybe,
0:15:09 > 0:15:11but, actually, if you're doing student lets,
0:15:11 > 0:15:13that would be a bedroom for sure.
0:15:13 > 0:15:16Because you come through into this room,
0:15:16 > 0:15:18you've got what was the kitchen.
0:15:18 > 0:15:22As you can see, it is in a terrible, terrible state.
0:15:22 > 0:15:27There's sort of some things you take for granted when it comes to houses
0:15:27 > 0:15:31and having fairly solid walls is one of them.
0:15:31 > 0:15:33In this case...
0:15:45 > 0:15:47It's not ideal, is it?
0:15:48 > 0:15:52I didn't even need the BBC's comedy sound effects for that bit!
0:15:52 > 0:15:56And what's definitely not tickling my funny bone is getting a mortgage
0:15:56 > 0:16:00here, as that would be very difficult because it's non-standard
0:16:00 > 0:16:03construction, and the construction bit is definitely suspect!
0:16:03 > 0:16:08# You're not standing like you used to... #
0:16:08 > 0:16:13The ground floor has ample space, but time to look at the first floor,
0:16:13 > 0:16:18to see if the student let idea holds up better than that wobbly wall.
0:16:18 > 0:16:20So on this floor, another bedroom there.
0:16:20 > 0:16:21When I say another bedroom,
0:16:21 > 0:16:24that's assuming the one downstairs is a bedroom.
0:16:24 > 0:16:27And then into this room, which I guess is the lounge.
0:16:27 > 0:16:33And I say that because, one, it's a through route to the stairs
0:16:33 > 0:16:35which lead to more bedrooms upstairs,
0:16:35 > 0:16:39and secondly, you've got this big window and then out
0:16:39 > 0:16:41onto the balcony.
0:16:41 > 0:16:43That's a really pleasant thing to have, actually.
0:16:43 > 0:16:47That said, it doesn't look like it's in that good a condition,
0:16:47 > 0:16:51and certainly could be contributing to the problems downstairs.
0:16:51 > 0:16:54A balcony is a bonus, but the outside of this house
0:16:54 > 0:16:55needs a lot of attention.
0:16:55 > 0:16:59And to think about making this big room bedroom number three,
0:16:59 > 0:17:02you would need to think about access to the stairs.
0:17:02 > 0:17:04One more floor to go.
0:17:04 > 0:17:07One thing you can say is that all the rooms are a really nice size.
0:17:07 > 0:17:11I mean, look at the bathroom. It'd be nice if it had a toilet in it.
0:17:11 > 0:17:13Well, it sort of has a sort of half a toilet,
0:17:13 > 0:17:16so major redoing everything required.
0:17:16 > 0:17:18But it's a good size, as I said.
0:17:18 > 0:17:20Another bedroom there, really nice size double.
0:17:20 > 0:17:25And then into probably my favourite room in the property,
0:17:25 > 0:17:29only because it's so kind of like 1960s flower power, yeah, man.
0:17:29 > 0:17:31One thing which isn't so lovable
0:17:31 > 0:17:34is the fact that it hasn't got a ceiling.
0:17:34 > 0:17:35Er...
0:17:35 > 0:17:38Don't know why that's not there.
0:17:38 > 0:17:39Weird!
0:17:39 > 0:17:43MUSIC: Groovy Little Hippie Pad by ZZ Top
0:17:49 > 0:17:53Even students with the most liberal approach to hygiene
0:17:53 > 0:17:58might baulk at this 100 grand guided property, as it needs everything.
0:17:58 > 0:18:01We asked an agent from the auction house that sold it
0:18:01 > 0:18:04to tell us what else it needs to become an ideal home
0:18:04 > 0:18:06for budding scholars.
0:18:06 > 0:18:10This area's incredibly popular with students.
0:18:10 > 0:18:12If you're going to rent to the student market,
0:18:12 > 0:18:14once we get to three or more unrelated people,
0:18:14 > 0:18:16then we need to take into account HMO regulations.
0:18:16 > 0:18:18With regards to a HMO property,
0:18:18 > 0:18:20you would certainly need to make sure
0:18:20 > 0:18:22that a hard-wired fire alarm system was installed.
0:18:22 > 0:18:24The doors would need to be up to a certain specification.
0:18:24 > 0:18:27And again, most of these things are there for, quite rightly,
0:18:27 > 0:18:29for the tenants' safety.
0:18:29 > 0:18:30So to values.
0:18:30 > 0:18:34Resale, rental, for a family tenancy and for my student let idea.
0:18:37 > 0:18:39Once renovated to a good standard,
0:18:39 > 0:18:42would achieve a sale somewhere in the region of £140,000.
0:18:42 > 0:18:46And on the rental market, would anticipate a rent of £650 per calendar month.
0:18:46 > 0:18:49If you were to offer this property to the student market,
0:18:49 > 0:18:50once renovated to a good standard,
0:18:50 > 0:18:53I would anticipate there being four letting rooms.
0:18:53 > 0:18:56Four letting rooms at £70 per week over 48 weeks
0:18:56 > 0:18:59would bring in an income of £14,000 per annum.
0:18:59 > 0:19:02And that certainly would be the best way to maximise your investment.
0:19:02 > 0:19:06Based on the agent figures of around £14,000 a year for a student let,
0:19:06 > 0:19:10or just under 8,000 a year for renting it as a house,
0:19:10 > 0:19:11it's a no-brainer.
0:19:11 > 0:19:15Well, there is a lot of work to be done on this one,
0:19:15 > 0:19:19But it's a good-sized property, and the main thing is its location,
0:19:19 > 0:19:20so close to the university.
0:19:20 > 0:19:23I think it could be a really good earner.
0:19:23 > 0:19:27Let's find out who bought it bought it when it went under the hammer.
0:19:28 > 0:19:29Lot number 20.
0:19:29 > 0:19:31A large property. It's a popular rental area.
0:19:31 > 0:19:34May I say 105 for it?
0:19:34 > 0:19:35100? 100?
0:19:35 > 0:19:3798. Bid me where you like.
0:19:37 > 0:19:3998, 95.
0:19:39 > 0:19:40Don't mind where we begin.
0:19:40 > 0:19:4195 I've got here.
0:19:41 > 0:19:43At £95,000.
0:19:43 > 0:19:46There was no great rush to bid for this property,
0:19:46 > 0:19:50so we rejoin the action with the price at 104,000.
0:19:50 > 0:19:52104 is bid.
0:19:52 > 0:19:54104 and a half.
0:19:54 > 0:19:56105.
0:19:56 > 0:19:59And a half? 106?
0:19:59 > 0:20:01106?
0:20:01 > 0:20:03Good house. 500?
0:20:03 > 0:20:05107, it's your turn.
0:20:05 > 0:20:07107.
0:20:07 > 0:20:10£107,000.
0:20:10 > 0:20:11500?
0:20:11 > 0:20:15Yup, 500. 108? 108.
0:20:15 > 0:20:20Five again. At £108,000, it's going to go, no mistakes.
0:20:20 > 0:20:24At £108,000 for the first time.
0:20:24 > 0:20:27For the second time. Third opportunity.
0:20:27 > 0:20:30It's yours, sir, at £108,000. 158. Thank you.
0:20:30 > 0:20:35Getting a congratulatory smile from his sister Ranju is bidder Mahesh.
0:20:35 > 0:20:39He clinched the property for £108,000.
0:20:39 > 0:20:41Mahesh is no stranger to Homes Under the Hammer.
0:20:41 > 0:20:46I met him and business partner Mayur twice back in 2015.
0:20:46 > 0:20:49First when they bought a four-bed terrace in Normanton,
0:20:49 > 0:20:52and again when they purchased this detached house
0:20:52 > 0:20:54to turn into a student let.
0:20:55 > 0:20:58And now this is their third time.
0:21:00 > 0:21:03As Mahesh owns several student property lets already,
0:21:03 > 0:21:06I can probably guess what they're going to do with their new purchase.
0:21:06 > 0:21:10Mayur, Mahesh, great to see you both.
0:21:10 > 0:21:12Again, actually!
0:21:12 > 0:21:14- That's right.- Yes, the third time.
0:21:14 > 0:21:18What is it about auctions that's really sort of rocking your boat
0:21:18 > 0:21:20- at the moment? - Opportunities like these.
0:21:20 > 0:21:22You rarely get them on high streets.
0:21:22 > 0:21:26There is... In the marketplace now, there is lots of gazumping as well.
0:21:26 > 0:21:28So, you know, if you wait for something,
0:21:28 > 0:21:31not sure whether you would get that, and then there is also
0:21:31 > 0:21:34the long process of getting mortgages, this and that.
0:21:34 > 0:21:38But this one is pretty quick, and you know that once the hammer goes,
0:21:38 > 0:21:40- it's yours.- Remind me of your relationship,
0:21:40 > 0:21:43how it works between you, what you do.
0:21:43 > 0:21:45We're just friends.
0:21:45 > 0:21:47I started on the property side, and then this guy said,
0:21:47 > 0:21:49"OK, I'm joining in." And then the next thing you know,
0:21:49 > 0:21:53- he's overtaking me! - Do you pay him?
0:21:53 > 0:21:58- Er, no. We, we...- What, what?
0:21:58 > 0:21:59People need friends like you.
0:21:59 > 0:22:00What do you get out of this?
0:22:00 > 0:22:02Because you must put a lot of effort in.
0:22:02 > 0:22:04I just enjoy it. I just enjoy seeing a property,
0:22:04 > 0:22:07especially something like this, which needs everything doing to it,
0:22:07 > 0:22:09and then seeing the end result.
0:22:09 > 0:22:11But you won't make any money out of it whatsoever?
0:22:11 > 0:22:14No, he's too tight. He's too mean.
0:22:15 > 0:22:18I think, let me make the money first,
0:22:18 > 0:22:20and then we'll discuss that!
0:22:21 > 0:22:22Wow!
0:22:22 > 0:22:24# Can you feel that, yeah
0:22:24 > 0:22:27# We're paying with love tonight
0:22:27 > 0:22:30# It's not about the money, money, money
0:22:30 > 0:22:32# We don't need your money, money, money
0:22:32 > 0:22:35# We just want to make the world dance
0:22:35 > 0:22:38# Forget about the price tag. #
0:22:38 > 0:22:40Well, no wonder Mayur is a popular fellow.
0:22:40 > 0:22:44His expertise is really helping Mahesh grow his business.
0:22:44 > 0:22:47But what do they intend to do to this house?
0:22:47 > 0:22:50We're going to convert this into five en-suite rooms.
0:22:50 > 0:22:53Downstairs, where it's the kitchen,
0:22:53 > 0:22:56that's going to remain as kitchen-diner and lounge.
0:22:56 > 0:22:58We are thinking of extending that by three metres.
0:22:58 > 0:23:00- Oh, wow.- So to make it a bigger kitchen-diner lounge.
0:23:00 > 0:23:03Especially when there's going to be five students living here.
0:23:03 > 0:23:05- Single-storey extension? - Yes.- Yeah, OK, cool.
0:23:05 > 0:23:08And the room below us will be an en-suite bedroom.
0:23:08 > 0:23:11This room here will be an en-suite bedroom.
0:23:11 > 0:23:13The room next to us will be en-suite bedrooms.
0:23:13 > 0:23:15And the three rooms we've got upstairs,
0:23:15 > 0:23:17they'll be converted into two en-suite bedrooms as well.
0:23:17 > 0:23:20Right. You get five nice-sized en-suites.
0:23:21 > 0:23:24The pair think the work will take three months
0:23:24 > 0:23:26to get the permissions to convert into an HMO,
0:23:26 > 0:23:28but what kind of rental return do they expect?
0:23:32 > 0:23:34We're aiming at £500 a week.
0:23:34 > 0:23:35£2,500 a month?
0:23:35 > 0:23:38- Close to that, yeah. - Yeah, well, yeah pretty much...
0:23:38 > 0:23:40I mean, you've got costs at the minute, but that's fantastic.
0:23:40 > 0:23:43So, what's the budget for the work?
0:23:43 > 0:23:48OK. The budget we are currently looking at is about £25,000.
0:23:48 > 0:23:51Because everything here needs doing.
0:23:51 > 0:23:55Starting from floors and decorations.
0:23:55 > 0:23:56And some of... As you've probably seen,
0:23:56 > 0:23:58some of the ceilings are missing.
0:23:58 > 0:24:04So there's loads of work, and doing altogether, it would be about 25K.
0:24:05 > 0:24:09So, a healthy budget and a positive glowing return.
0:24:09 > 0:24:10If they do stick to their budget,
0:24:10 > 0:24:14they could be looking at a potential 18% yield.
0:24:14 > 0:24:16Well, listen, congratulations.
0:24:16 > 0:24:17Lovely to see you both again
0:24:17 > 0:24:19- and I'm sure we'll see you again. - Good to see you.
0:24:19 > 0:24:22- Thank you. - Bye, Martin. Thank you.
0:24:22 > 0:24:27Well, if things go to plan and this place is generating £2,500 a month,
0:24:27 > 0:24:31it's a right little earner for Mahesh.
0:24:31 > 0:24:33And I think I might have slightly put the cat amongst the pigeons,
0:24:33 > 0:24:38because Mayur really should be getting something for his efforts,
0:24:38 > 0:24:41shouldn't he? Lots of work to do to sort it out, though.
0:24:41 > 0:24:43Will they get it done in time?
0:24:43 > 0:24:44You can find out later in the show.
0:24:46 > 0:24:49Still to come, has the buyer of this Rainham property
0:24:49 > 0:24:50got his lots mixed up?
0:24:50 > 0:24:52This wasn't a safe bet for you.
0:24:52 > 0:24:53Not really, no.
0:24:53 > 0:24:57- Why did you end up buying this? - Because I wanted to get next door!
0:24:57 > 0:25:00And there's a bit of confusion in Derby, too.
0:25:00 > 0:25:02We spent about two weeks kind of putting...
0:25:02 > 0:25:05starting work and taking it out, and then doing it again and again.
0:25:11 > 0:25:14Time to return to the Surrey village of Ewell,
0:25:14 > 0:25:17to find out how Steve got on with this three-bed maisonette
0:25:17 > 0:25:20which he purchased at auction for 190 grand.
0:25:22 > 0:25:23His plan was to refurbish it
0:25:23 > 0:25:26and make it a home for his daughter, Grace,
0:25:26 > 0:25:28and its location made it especially desirable.
0:25:30 > 0:25:33It's really close to the mainline station
0:25:33 > 0:25:37and it's the last stop so that you can use your Oyster card.
0:25:37 > 0:25:40MUSIC: Groovy Train by The Farm
0:25:43 > 0:25:46With Grace's transport to and from London taken care of,
0:25:46 > 0:25:50it was down to Steve and his four sons to carry out and complete
0:25:50 > 0:25:53a total refurb of this house.
0:25:53 > 0:25:55Added to this, Grace's interior design expertise
0:25:55 > 0:25:58would hopefully turn this into a dream home,
0:25:58 > 0:26:01but Steve had some important business to take care of.
0:26:01 > 0:26:04The property does come with a very short lease.
0:26:04 > 0:26:08There is going to be some fee to pay further down the line.
0:26:08 > 0:26:12But as of yet, we don't know who the freeholder is.
0:26:13 > 0:26:16Realising that money would have to be kept aside to extend the lease,
0:26:16 > 0:26:19Steve knew that a strict budget was crucial.
0:26:23 > 0:26:25But with daughter Grace project managing,
0:26:25 > 0:26:28might the purse strings be loosened slightly?
0:26:28 > 0:26:31So, are you worried that Grace is going to take over
0:26:31 > 0:26:34and just edge that budget too much for you?
0:26:34 > 0:26:35We've got to make sure
0:26:35 > 0:26:38that everything's within the price range.
0:26:38 > 0:26:42We hope to do it for 15,000, but 20 absolute max.
0:26:46 > 0:26:50Aiming to complete within six weeks and mindful of that 20 grand limit,
0:26:50 > 0:26:52Steve set to work.
0:26:52 > 0:26:55Nine weeks later, we are back to catch up.
0:27:09 > 0:27:13Forget maisonette, this is now amazing-nette,
0:27:13 > 0:27:16and Steve's been doing a spot of redesign.
0:27:19 > 0:27:23So this room used to have a door here,
0:27:23 > 0:27:26going through into what was the lounge.
0:27:26 > 0:27:30This has been blocked off, and this has now become Grace's studio.
0:27:31 > 0:27:36This door was an original door that had been blocked off,
0:27:36 > 0:27:38so we've just reinstated it.
0:27:38 > 0:27:42With the new windows, it's a nice, light, bright room.
0:27:45 > 0:27:47And the lounge that was is no longer.
0:27:47 > 0:27:49It's now Grace's bedroom.
0:27:49 > 0:27:51And Grace is going to have some company too,
0:27:51 > 0:27:53as youngest brother Joel is moving in.
0:27:55 > 0:27:57Hopefully they can live together.
0:27:57 > 0:28:00If they can't, then we'll have to make other arrangements.
0:28:02 > 0:28:04As well as a new kitchen and bathroom,
0:28:04 > 0:28:08a combi boiler has been fitted and a central heating system
0:28:08 > 0:28:09which is completely renewed.
0:28:09 > 0:28:12As for those old aluminium windows...
0:28:12 > 0:28:14The original windows were in very poor condition,
0:28:14 > 0:28:18so we made arrangements for new windows to be put in.
0:28:18 > 0:28:21Fortunately, we'd already prearranged
0:28:21 > 0:28:25for a conservation window to be put on the front elevations.
0:28:25 > 0:28:28And as you look around the street,
0:28:28 > 0:28:31it now looks in keeping with everything else,
0:28:31 > 0:28:33rather than standing out like a sore thumb.
0:28:34 > 0:28:37Although the six weeks' timeframe slipped by three weeks,
0:28:37 > 0:28:40my fears that Grace might run over the budget
0:28:40 > 0:28:42proved completely unfounded.
0:28:42 > 0:28:45It was a lot easier than I thought.
0:28:45 > 0:28:47She didn't go overboard.
0:28:47 > 0:28:50I think probably the most expensive things
0:28:50 > 0:28:52were maybe the tiles in the bathroom,
0:28:52 > 0:28:54which were a little bit more than we'd budgeted for.
0:28:54 > 0:28:59But otherwise, we've come in just under 18,000 at the moment.
0:28:59 > 0:29:02Her brothers and the guys that work for us have come in
0:29:02 > 0:29:04and done most of the work.
0:29:04 > 0:29:08I've been involved in the design, and fitting the kitchen,
0:29:08 > 0:29:14and, really, everything else has been done by the guys that work for me.
0:29:15 > 0:29:19Outside, the wild, overgrown back garden has been tamed.
0:29:19 > 0:29:20And in the front,
0:29:20 > 0:29:23preparations are being made to lay a driveway
0:29:23 > 0:29:25for some off-road parking.
0:29:26 > 0:29:29Has Steve managed to make any progress on extending that lease?
0:29:29 > 0:29:32They think they've located the freeholder.
0:29:32 > 0:29:35But because I've been so busy doing it,
0:29:35 > 0:29:37it's not something I've really pursued at the moment.
0:29:37 > 0:29:42It's always been in the back of our mind that this may not come off,
0:29:42 > 0:29:45so it's always going to be a long-term investment for us.
0:29:45 > 0:29:49And if we have to give it back after 38 years, then so be it.
0:29:51 > 0:29:54Well, after making such a nice job of this,
0:29:54 > 0:29:56let's hope it doesn't come to that, Steve.
0:29:59 > 0:30:03This is a gem of a property, and it's polished up nicely,
0:30:03 > 0:30:07but what will two local estate agents make of the jewel in Ewell,
0:30:07 > 0:30:10starting with the agent who saw the property earlier.
0:30:10 > 0:30:13The changes they've made are great, especially in regards to the finish,
0:30:13 > 0:30:15both in terms of the bathroom and the kitchen,
0:30:15 > 0:30:17and the outside space that they've made good of as well.
0:30:17 > 0:30:20That has really added in terms of value and saleability
0:30:20 > 0:30:21of the property, without a doubt.
0:30:21 > 0:30:22Absolutely stunning.
0:30:22 > 0:30:24The owner's done a fantastic job.
0:30:24 > 0:30:27It's exactly what buyers and renters are looking for.
0:30:27 > 0:30:29It's all neutral and modern.
0:30:29 > 0:30:31Kitchen and bathroom, absolutely stunning.
0:30:32 > 0:30:37So far, Steve has spent a total of £208,000 on this lovely flat.
0:30:37 > 0:30:40So let's find out how much it would be worth
0:30:40 > 0:30:42if he manages to extend the lease.
0:30:42 > 0:30:43With the lease extended,
0:30:43 > 0:30:48you would be looking at £360,000 to £370,000,
0:30:48 > 0:30:49and it'd be a lot easier to sell,
0:30:49 > 0:30:52because you'd open it up to the full market.
0:30:52 > 0:30:54We'd be looking to probably market the property
0:30:54 > 0:30:57around the sort of £350-360,000 mark.
0:30:57 > 0:30:59If those figures are correct,
0:30:59 > 0:31:04then it's a really good purchase and investment.
0:31:05 > 0:31:10Based on the highest figure, that's a pre-tax profit of 162 grand.
0:31:10 > 0:31:13But, of course, he's still got to fork out for the lease,
0:31:13 > 0:31:15so how much could that cost?
0:31:15 > 0:31:21Different agents have said to me it might extend from 20,000, 30,000,
0:31:21 > 0:31:23and the top end was 100,000.
0:31:24 > 0:31:28So if Steve had to stump up as much as 100 grand for the lease
0:31:28 > 0:31:30to add to his spend of 208 grand,
0:31:30 > 0:31:33based on the agent's higher valuation,
0:31:33 > 0:31:37the maisonette could still deliver a pre-tax profit of 62 grand.
0:31:37 > 0:31:41Not bad for a worst-case scenario.
0:31:41 > 0:31:42What about rental valuations?
0:31:44 > 0:31:46In terms of the property's rental,
0:31:46 > 0:31:48you're going to be looking now, with the changes they've made,
0:31:48 > 0:31:51it would be around the sort of £1,300-1,400 per calendar month.
0:31:51 > 0:31:54The flat could rent for £1,500 per calendar month.
0:31:55 > 0:31:58If Steve were to forget about extending the lease in the meantime,
0:31:58 > 0:32:03that top rental figure would mean a healthy yield of 8.6%.
0:32:03 > 0:32:05How does he feel about that?
0:32:05 > 0:32:09If I was renting out, that would be a good return...
0:32:09 > 0:32:11but I suspect I won't get anywhere near that.
0:32:16 > 0:32:19This time round, Lucy is in Rainham,
0:32:19 > 0:32:22one of the smaller of the Medway towns in Kent.
0:32:22 > 0:32:25Rainham has regular train services into London
0:32:25 > 0:32:28that take less than an hour, although for today's property,
0:32:28 > 0:32:31pedal power is the transport option of choice.
0:32:31 > 0:32:35Well, this is a busy road right in the heart of Rainham.
0:32:35 > 0:32:38And for the type of property I'm here to see, well,
0:32:38 > 0:32:40I would say that is a good thing.
0:32:40 > 0:32:42Because it's a two-storey retail unit
0:32:42 > 0:32:45and it was used last as a bike shop.
0:32:45 > 0:32:49Now, the guide price was £145,000-155,000,
0:32:49 > 0:32:52so I'm going to step up a gear and head on in.
0:32:52 > 0:32:54I hope I don't end up feeling a little bit flat.
0:32:56 > 0:32:58Well, loads of passing traffic out there, which is good.
0:32:58 > 0:33:00Ah, and look!
0:33:00 > 0:33:02The hills are alive!
0:33:02 > 0:33:04Not with the sound of music, I'm afraid,
0:33:04 > 0:33:06with the sound of traffic out there.
0:33:06 > 0:33:08But that can be a good thing.
0:33:08 > 0:33:11And I know that the previous owners were here for over 30 years
0:33:11 > 0:33:14with this bike shop, which is a good thing,
0:33:14 > 0:33:17because obviously the retail business does work here.
0:33:17 > 0:33:19You can still see, they've left some of the bike racks,
0:33:19 > 0:33:23and you've got the cabinets here which would have been displaying
0:33:23 > 0:33:26all their goods. And the stairs which lead up there two more space.
0:33:26 > 0:33:29So this whole building was a commercial unit.
0:33:29 > 0:33:30And then out the back here,
0:33:30 > 0:33:32well, it was obviously a bit of a kitchen area,
0:33:32 > 0:33:35maybe they repaired all the bikes out here.
0:33:35 > 0:33:38It does need a bit of a spruce up, as you can see.
0:33:38 > 0:33:39You know, lick of paint.
0:33:39 > 0:33:42Could you turn this shop into something else?
0:33:42 > 0:33:44What would be good here? A nail salon, perhaps.
0:33:44 > 0:33:46A sunbed shop.
0:33:46 > 0:33:48A sandwich bar! I don't know, there are lots of ideas.
0:33:48 > 0:33:52You've got a little door which leads outside to the garden area.
0:33:52 > 0:33:54But, look, you can see it's dirty,
0:33:54 > 0:33:56it needs somebody to come in here and turn it around.
0:33:56 > 0:33:58You've got strip lighting everywhere.
0:33:58 > 0:34:01So there's work to be done, some money to be spent.
0:34:01 > 0:34:03But it's not bad.
0:34:03 > 0:34:04# I want to ride my
0:34:04 > 0:34:08# Bicycle, bicycle, bicycle
0:34:08 > 0:34:11# I want to ride my bicycle
0:34:11 > 0:34:13# I want to ride my bike... #
0:34:15 > 0:34:18Bunny-hop upstairs and you'll find plenty more reasons
0:34:18 > 0:34:20to get pumped up about this property.
0:34:22 > 0:34:24Now, I know this floor was previously used as storage,
0:34:24 > 0:34:28but, well, I think it could be used for more than that, don't you?
0:34:28 > 0:34:31How about converting this into a one-bedroom flat?
0:34:31 > 0:34:34I definitely think that would work in this central spot.
0:34:34 > 0:34:37However, before we get too carried away, there are a couple of things
0:34:37 > 0:34:39you've got to bear in mind.
0:34:39 > 0:34:42You're going to need planning permission from the council
0:34:42 > 0:34:45for change of use, plus, to really make this work, well,
0:34:45 > 0:34:49you're going to need to create separate access up here.
0:34:49 > 0:34:52And luckily, I've just seen the spot where you could do that.
0:34:53 > 0:34:55Lucy is not peddling you a story.
0:34:55 > 0:34:59There really is a gate at the back under all this ivy.
0:34:59 > 0:35:02There may even be stairs up to the first floor.
0:35:02 > 0:35:03Who can tell?
0:35:03 > 0:35:08On the outside of this ivy-covered wall is a pretty big surprise.
0:35:08 > 0:35:12This is quite a big old back garden because this really big -
0:35:12 > 0:35:14really, really, really big shed -
0:35:14 > 0:35:16does take up quite a lot of the space.
0:35:16 > 0:35:19But that's not all the space, because it just continues
0:35:19 > 0:35:21to go on and on.
0:35:21 > 0:35:24But to get there, you've got to go through another outbuilding.
0:35:24 > 0:35:27A bit of a dark hole in there, but I'm going to explore.
0:35:30 > 0:35:32So, it's spacious in here.
0:35:32 > 0:35:34Look at the size of this!
0:35:34 > 0:35:38And this is not where it ends, because there is another door,
0:35:38 > 0:35:43and through this door is another outbuilding!
0:35:43 > 0:35:47And it goes right the way back to that wall and then it continues.
0:35:47 > 0:35:50More land at the back of there.
0:35:50 > 0:35:54It's a really unusual way to access all the outside space,
0:35:54 > 0:35:57through all these doors.
0:35:57 > 0:35:58It's big, though.
0:36:01 > 0:36:04This does seem to be a big waste of usable space.
0:36:04 > 0:36:07And if you could get planning permission to demolish these units,
0:36:07 > 0:36:10then, wow, things really could get interesting.
0:36:10 > 0:36:12There's just one little snag.
0:36:12 > 0:36:16You might have to walk one very fine line to get that planning approved.
0:36:19 > 0:36:23This driveway here is owned by the neighbouring property
0:36:23 > 0:36:25and this incey-wincey little footpath here
0:36:25 > 0:36:29is the only access to the plot down the back there.
0:36:29 > 0:36:33That means no rear vehicle access and no parking.
0:36:33 > 0:36:37So, not an easy development and I'm pretty sure the planners,
0:36:37 > 0:36:40well, they're not going to be a fan of these obstacles.
0:36:41 > 0:36:43This one does offer some challenges,
0:36:43 > 0:36:46so it's time to speak to an agent who knows the local market
0:36:46 > 0:36:48and might be able to give us an inkling
0:36:48 > 0:36:51of the planning possibilities in the area.
0:36:52 > 0:36:55I think that planning for the land at the back is going to be
0:36:55 > 0:36:57fairly straightforward because there are lots of little
0:36:57 > 0:37:00one-bedroom apartments in the area.
0:37:00 > 0:37:03If planning permission was forthcoming and obtained,
0:37:03 > 0:37:05then four to five apartments would be possible.
0:37:07 > 0:37:09Small, or two two-bedrooms,
0:37:09 > 0:37:14so there's lots of potential there as long as access is available.
0:37:14 > 0:37:15Well, this certainly is interesting.
0:37:15 > 0:37:19There are a few different potential sources of income here.
0:37:19 > 0:37:20The first is the retail unit,
0:37:20 > 0:37:24which the agent thinks could bring in around £700 a month.
0:37:24 > 0:37:28Then, if upstairs was converted into a one-bedroom flat,
0:37:28 > 0:37:32you could get a further £575 a month which would be a nice income.
0:37:32 > 0:37:37But the real money-maker here could be by using the land at the back
0:37:37 > 0:37:39for new-build flats.
0:37:39 > 0:37:40So, what could they be worth?
0:37:40 > 0:37:47A new one-bedroom apartment would sell for £110,000
0:37:47 > 0:37:51and a two-bedroom would sell for £130,000.
0:37:53 > 0:37:57On face value, well, I think this former bike shop could be
0:37:57 > 0:37:59a WHEELIE good one to go for,
0:37:59 > 0:38:02but if there was any way you could get planning on that plot,
0:38:02 > 0:38:05it could be wheelie, wheelie good!
0:38:05 > 0:38:09Could you have a hybrid of retail and flats on your hands?
0:38:09 > 0:38:12Time to find out who was ready to take the lead and win
0:38:12 > 0:38:15the yellow jersey when this lot went under the hammer.
0:38:17 > 0:38:19Lot 43.
0:38:19 > 0:38:22We move now to Rainham, detached premises,
0:38:22 > 0:38:27ground and first floor accommodation, the land to the rear.
0:38:27 > 0:38:29What may I say? Start me at 145.
0:38:29 > 0:38:30There's a lot of property there.
0:38:30 > 0:38:33140? 140, then, I have, thank you.
0:38:33 > 0:38:37At £140,000, the bid, 142 do I see?
0:38:37 > 0:38:39142. At 145.
0:38:39 > 0:38:42The auction took a while to get up to speed.
0:38:42 > 0:38:45We rejoin at 165,000.
0:38:45 > 0:38:49At 165, the bid, 168, do I see?
0:38:49 > 0:38:50168.
0:38:50 > 0:38:54At 170. 170 is bid.
0:38:54 > 0:38:57172. 172.
0:38:57 > 0:38:59At 175. 178.
0:39:01 > 0:39:06At £175,000 the bid, anybody else can join in,
0:39:06 > 0:39:11but directly in front of me at 175,000 for the first time,
0:39:11 > 0:39:14175,000 for the second time,
0:39:14 > 0:39:19175,000 for the third and final time.
0:39:19 > 0:39:22At 175,000, are we all done?
0:39:22 > 0:39:24Sold at 175,000.
0:39:24 > 0:39:28The winning bid of 175,000 came from Steve,
0:39:28 > 0:39:31who has actually appeared on the show before
0:39:31 > 0:39:32with business partner Ian.
0:39:36 > 0:39:42They bought a shop and offices which they then converted into a gym.
0:39:42 > 0:39:45I wonder if this project will work out, too!
0:39:45 > 0:39:48Steve, it's been a long time.
0:39:48 > 0:39:49How many years since I last saw you?
0:39:49 > 0:39:51Six or seven years, I reckon.
0:39:51 > 0:39:54Tell me what you've been doing? You've been busy buying at auction,
0:39:54 > 0:39:56- by the looks of things. - We have. We got this last month,
0:39:56 > 0:40:00completed yesterday. Plan was to buy this and get the next lot as well,
0:40:00 > 0:40:02which is behind the working men's club.
0:40:02 > 0:40:05Yeah, don't tell me, that lot came first and this lot came second.
0:40:05 > 0:40:06No, it came second.
0:40:06 > 0:40:07- That lot was second?- Yeah.
0:40:07 > 0:40:10We got this, paid a little more than we wanted to,
0:40:10 > 0:40:12because we wanted to get that as well,
0:40:12 > 0:40:16but that went for twice the asking price, or the guide price.
0:40:16 > 0:40:18And it was actually bought by next door.
0:40:18 > 0:40:21We did the numbers and I knew that we'd bought this top end
0:40:21 > 0:40:24- of what we really wanted to pay. - Yeah.- Gambling for next door.
0:40:24 > 0:40:26But, saying that, it still works out OK.
0:40:26 > 0:40:28We should get a decent return on it, still,
0:40:28 > 0:40:29so it's not as bad as it could have been.
0:40:29 > 0:40:32So, Steve, tell me about that little pot of gold
0:40:32 > 0:40:33at the end of the garden,
0:40:33 > 0:40:36because I know there's a bit of a something, a plan of yours,
0:40:36 > 0:40:38that you want to extend upon.
0:40:38 > 0:40:39There is, there is. What it was, we bought this
0:40:39 > 0:40:42knowing that we wanted to keep this as a shop and convert
0:40:42 > 0:40:44- upstairs into a flat. - Which is perfect.
0:40:44 > 0:40:45Which is excellent at this end.
0:40:45 > 0:40:48That works. At the end of the garden, there's a big,
0:40:48 > 0:40:51derelict brick building which is actually bigger in footprint
0:40:51 > 0:40:55than this shop itself, and we were hoping to get planning
0:40:55 > 0:40:58to convert that into residential as well, fingers crossed.
0:40:58 > 0:41:00But the problem is that the plot next door,
0:41:00 > 0:41:02which was the other one we wanted to get,
0:41:02 > 0:41:05had a right of way down the side of the property
0:41:05 > 0:41:09which would have given us vehicular access to the back.
0:41:09 > 0:41:10We haven't now got that,
0:41:10 > 0:41:13and I've now got to speak to next door to ask really nicely
0:41:13 > 0:41:14if they'll give it to us.
0:41:14 > 0:41:17If you don't get permissions and it doesn't work your way,
0:41:17 > 0:41:19do you have a plan B?
0:41:19 > 0:41:21What, then, can happen?
0:41:21 > 0:41:23Well, plan B, we'll still go for building in the back.
0:41:23 > 0:41:25Not as many units.
0:41:25 > 0:41:28Whereas I think we could probably get four one-bedders in the back,
0:41:28 > 0:41:31I'll probably go for two one-bedroom apartments
0:41:31 > 0:41:35and work on the assumption that we've got pedestrian access
0:41:35 > 0:41:38in the back, build almost, like, two self-contained units
0:41:38 > 0:41:39in the back garden.
0:41:39 > 0:41:42So far, I've been talking to you and I'm hearing,
0:41:42 > 0:41:45"A bit of a risk, a bit of a risk, bit of a risk."
0:41:45 > 0:41:47You are really venturing into the unknown.
0:41:47 > 0:41:49- We are.- You've got no guarantees with this at all.
0:41:49 > 0:41:51- Not really, no.- This wasn't a safe bet for you.
0:41:51 > 0:41:54- Not really, no.- Why did you end up buying this?
0:41:54 > 0:41:56I wanted to get next door!
0:41:56 > 0:41:57Oh, well.
0:41:57 > 0:42:02As someone once said, visions aren't changed, they are only refined.
0:42:02 > 0:42:06Plans rarely stay the same and are scrapped or adjusted as needed,
0:42:06 > 0:42:07which is a wise approach.
0:42:07 > 0:42:09But was Steve wise to take such a risk,
0:42:09 > 0:42:11even if it was a calculated one?
0:42:11 > 0:42:13We've done the sums on it.
0:42:13 > 0:42:14If we only got this, say we only got the shop
0:42:14 > 0:42:17and we only converted upstairs and did nothing out the back,
0:42:17 > 0:42:20return on investment, we'd still get about an 8% return.
0:42:20 > 0:42:22So it's not too bad, so we can cope with that, that's fine.
0:42:22 > 0:42:25So we're hoping, with the conversion for this,
0:42:25 > 0:42:29just the shop and the flat, if we can do that for about 20, 25K,
0:42:29 > 0:42:31we've done the whole lot for about 200.
0:42:31 > 0:42:33- Wow.- And that works for us.
0:42:33 > 0:42:35That's not too bad. If we can get the back bit,
0:42:35 > 0:42:38that's the Brucie bonus and that's what makes the difference.
0:42:38 > 0:42:39That's the pot of gold.
0:42:39 > 0:42:40That's where the rainbow ends!
0:42:40 > 0:42:44- Exactly, yes.- How long do you think it's going to be before you get
0:42:44 > 0:42:46any answers on the back plot?
0:42:46 > 0:42:49Well, the plan is, a bit of a risky plan...
0:42:49 > 0:42:51Another risk?! Not another one!
0:42:51 > 0:42:53We'll start this, we'll convert this.
0:42:53 > 0:42:57Hopefully, by the time it's finished, we should get planning
0:42:57 > 0:43:00approval for the flat upstairs. Once that's been done,
0:43:00 > 0:43:04we'll then put in planning again to convert the back.
0:43:04 > 0:43:06And then we'll see. But in the interim,
0:43:06 > 0:43:09I've still got to speak to next door to see if I can get
0:43:09 > 0:43:11vehicle access for the back.
0:43:11 > 0:43:14So what sort of budget have you got to oversee all of this?
0:43:14 > 0:43:18I reckon the back, we're probably looking at spending about 150.
0:43:18 > 0:43:19And that's for three flats?
0:43:21 > 0:43:24Probably 150 would be two or three flats, yes.
0:43:24 > 0:43:26And this flat upstairs?
0:43:26 > 0:43:28Upstairs and to convert the shop, about 25.
0:43:28 > 0:43:30So you've got quite a busy few months ahead of you, really.
0:43:30 > 0:43:32We want to do this in two months if we can.
0:43:32 > 0:43:35We've already got guys put by ready to start it a week Monday.
0:43:35 > 0:43:37- Wow! - You're wasting money, otherwise.
0:43:37 > 0:43:39If you buy something like this at auction,
0:43:39 > 0:43:42until you can get someone actually living in the place,
0:43:42 > 0:43:45it just sits there. You're paying interest on loans, etc,
0:43:45 > 0:43:47so you want to get someone in as soon as you can,
0:43:47 > 0:43:50so hopefully within two months, the shop, from today,
0:43:50 > 0:43:54will be marketed from today, and the flat upstairs,
0:43:54 > 0:43:56once we've done a little bit of jiggery-pokery up there,
0:43:56 > 0:43:59hopefully that'll be on the market in about three or four weeks' time.
0:43:59 > 0:44:02Steve, it's fantastic. You've got such a positive stance on this.
0:44:02 > 0:44:03- Good luck with that.- Thank you.
0:44:03 > 0:44:06And I really can't wait to find out the outcome.
0:44:06 > 0:44:07Nor can we!
0:44:07 > 0:44:08Oh!
0:44:10 > 0:44:12Yes, it's a real nailbiter, Lucy!
0:44:12 > 0:44:14But, has Steve bitten off more than he can chew?
0:44:14 > 0:44:17Join us later in the programme to find out.
0:44:22 > 0:44:24We found out how one property's got on, but we're not done.
0:44:24 > 0:44:26There's still two more to go.
0:44:26 > 0:44:29Will we see beautiful bathrooms or catastrophic kitchens?
0:44:29 > 0:44:30Yes, will they be happy campers
0:44:30 > 0:44:33or whatever the opposite of happy campers is?!
0:44:33 > 0:44:34Let's go back and find out.
0:44:37 > 0:44:39Well, what's been happening in Derby?
0:44:39 > 0:44:43It's time to find out. It was this four-bedroomed terraced house
0:44:43 > 0:44:46that I visited earlier, with a guide price of 100 grand.
0:44:46 > 0:44:48With the university in close proximity,
0:44:48 > 0:44:51there was only one thing on my mind.
0:44:51 > 0:44:52Ooh, I'm thinking...
0:44:52 > 0:44:54student lets! Yeah!
0:44:54 > 0:44:58But before the prospective buyer lined up some student tenants,
0:44:58 > 0:45:00there were just a few minor issues to address.
0:45:00 > 0:45:04As you can see, it is in a terrible, terrible state.
0:45:04 > 0:45:07# You shake me up
0:45:07 > 0:45:08# You shake me down... #
0:45:08 > 0:45:11Now THAT'S what I call shaky!
0:45:12 > 0:45:17It was Mahesh who was the successful bidder at auction, paying 108,000.
0:45:17 > 0:45:20Together with friend Mayur, they plan to convert this house
0:45:20 > 0:45:22into a five-bedroom student accommodation.
0:45:24 > 0:45:28Mahesh is the money man and Mayur comes up with all the ideas
0:45:28 > 0:45:30for design and layout, for free.
0:45:31 > 0:45:34- Do you pay him?- Er, no.
0:45:34 > 0:45:37- We...- What?!
0:45:37 > 0:45:40What do you get out of this? Because you must put a lot of effort in.
0:45:40 > 0:45:44I just enjoy seeing a property, especially something like this,
0:45:44 > 0:45:47which needs everything doing to it, and then seeing the end result.
0:45:50 > 0:45:53Aiming for a turnaround of two months
0:45:53 > 0:45:54to catch the new student term,
0:45:54 > 0:45:57and with a budget of no more than 25 grand,
0:45:57 > 0:46:00we're back four months later to see if it's all gone to plan.
0:46:09 > 0:46:11Well, what a difference!
0:46:11 > 0:46:14Goodbye, dilapidation, hello, modernisation.
0:46:18 > 0:46:22And by the looks of it, hello, student tenants.
0:46:22 > 0:46:25We caught up with Mahesh to hear what's been going on.
0:46:25 > 0:46:27There's been lots of work gone in.
0:46:27 > 0:46:31We brought the whole house back to bricks.
0:46:31 > 0:46:35Then we started with new plumbing, new electrics.
0:46:35 > 0:46:39We helped put in new kitchen, we have done new flooring.
0:46:40 > 0:46:43Each bedroom comes equipped with an en-suite shower room
0:46:43 > 0:46:45and a new kitchen-cum-dining area
0:46:45 > 0:46:48provides a communal space for get-togethers.
0:46:48 > 0:46:52But reconfiguring the entire house turned out to be a bit of a headache.
0:46:53 > 0:46:59One of the problems was to find out exactly what is the best way we can
0:46:59 > 0:47:04create these en-suites and still retain a good shape of room.
0:47:04 > 0:47:08We spent about two weeks putting... start work and taking it out
0:47:08 > 0:47:10and doing it again and again.
0:47:10 > 0:47:13But Mahesh thinks the effort was worth it.
0:47:13 > 0:47:17Nowadays, students have got high standards as well,
0:47:17 > 0:47:19and they like to live in a good space.
0:47:19 > 0:47:23And I'm sure that once they start staying in such a place,
0:47:23 > 0:47:27they probably become, well, better students as well.
0:47:27 > 0:47:29Well, we can only hope.
0:47:29 > 0:47:33To obtain a licence for a house of multiple occupation,
0:47:33 > 0:47:37Mahesh has had to show that there is sufficient space and facilities
0:47:37 > 0:47:40for the occupants to live comfortably and safely.
0:47:40 > 0:47:43Fire doors, smoke alarms and emergency lighting
0:47:43 > 0:47:46have been installed throughout the building.
0:47:46 > 0:47:50We actually put in lots of modern touches.
0:47:50 > 0:47:54We put in occupancy sensors in the communal areas so, when you walk in,
0:47:54 > 0:47:57it just switches on, and also, it switches off,
0:47:57 > 0:47:59so it's also environment friendly.
0:47:59 > 0:48:05# Five, four, three, two, one... #
0:48:05 > 0:48:06But that's not the whole story.
0:48:06 > 0:48:08There's been a change of plan.
0:48:10 > 0:48:14We were initially thinking of having five bedrooms.
0:48:14 > 0:48:18But then we changed our minds and did an extension at the back,
0:48:18 > 0:48:21so increased it to seven bedrooms.
0:48:21 > 0:48:24As well as two new en-suite bedrooms,
0:48:24 > 0:48:27the new extension also holds the kitchen-diner.
0:48:27 > 0:48:29It's taken four months to get to this stage,
0:48:29 > 0:48:34and Mahesh reckons another month will see the extra two bedrooms completed.
0:48:34 > 0:48:38I'm guessing this modification has also impacted on the budget.
0:48:39 > 0:48:42Our top budget initially was 25K,
0:48:42 > 0:48:45but we ended up spending 52.
0:48:45 > 0:48:47That's us up to speed with the house,
0:48:47 > 0:48:48but the question on everyone's lips is,
0:48:48 > 0:48:52whatever happened to Mayur?
0:48:52 > 0:48:55Mayur is now off to India.
0:48:55 > 0:48:57He is writing a book.
0:48:57 > 0:49:00He's not here today because he's in preparation for that,
0:49:00 > 0:49:06but he has played a significant role here in this building.
0:49:06 > 0:49:09He's created all these bedrooms, designed them,
0:49:09 > 0:49:11also designed the en-suites.
0:49:11 > 0:49:14He's not here, not because I have not paid him,
0:49:14 > 0:49:17we are still good friends and we have some other projects in mind
0:49:17 > 0:49:19which we are going to follow on.
0:49:20 > 0:49:22With this project almost completed,
0:49:22 > 0:49:25we invited two property experts to visit the house
0:49:25 > 0:49:27and give us their impressions,
0:49:27 > 0:49:29starting with the auctioneer who sold the property.
0:49:32 > 0:49:36First impressions are that it is extremely clean and tidy, well-equipped.
0:49:36 > 0:49:39It's obviously been adapted for a specific purpose
0:49:39 > 0:49:41and I think it fits that very well.
0:49:41 > 0:49:44The selling point for me would be the fact that every bedroom
0:49:44 > 0:49:48is a good size, they've all got an en-suite shower room and, of course,
0:49:48 > 0:49:51the location. It's close to the city centre and the university.
0:49:52 > 0:49:54Do their positive comments reflect on the valuations?
0:49:54 > 0:49:57How much could each room earn in rental income?
0:49:59 > 0:50:00On the rental market with students,
0:50:00 > 0:50:04I would expect £90 per student per week.
0:50:04 > 0:50:06I would say a serviced house like this,
0:50:06 > 0:50:08so all the bills are included in the rent,
0:50:08 > 0:50:12you'd probably get something in the order of £90 per room per week.
0:50:14 > 0:50:16Based on 44 weeks full occupancy,
0:50:16 > 0:50:19seven rooms bringing in £90 per week
0:50:19 > 0:50:22means an annual income of over 27,000.
0:50:22 > 0:50:26Given that Mahesh has spent a total of 160,000 on this project,
0:50:26 > 0:50:29that would give him a whopping return of 17.3%.
0:50:32 > 0:50:35I think the rental values are a little bit on the low side.
0:50:35 > 0:50:40We are currently receiving £95 per room for five rooms
0:50:40 > 0:50:42which we have rented out.
0:50:42 > 0:50:46Next year, the price will be about £110 per room.
0:50:46 > 0:50:49And if this house were to be put on the resale market,
0:50:49 > 0:50:52how much could it achieve in its current state?
0:50:53 > 0:50:57On the sales market, I would market this property for £200,000.
0:50:57 > 0:51:01It would have an open market value as an investment property
0:51:01 > 0:51:02in the region of £200,000.
0:51:02 > 0:51:08£200,000 for this particular property in the given area,
0:51:08 > 0:51:09it probably is correct.
0:51:09 > 0:51:13But there are no examples of seven bedrooms in this area
0:51:13 > 0:51:17in this standard, so I think that's something new.
0:51:17 > 0:51:21But this property's not for sale anyway,
0:51:21 > 0:51:25because we are there to generate some income
0:51:25 > 0:51:28for the next number of years.
0:51:28 > 0:51:31Mahesh has had a busy few months and he plans for some well-earned rest.
0:51:34 > 0:51:37I'm actually going to follow Mayur.
0:51:37 > 0:51:41He's gone to India for about six months, so, once this is all over,
0:51:41 > 0:51:43I'm actually going to go and join him
0:51:43 > 0:51:46and have a short break with him.
0:51:52 > 0:51:55It's time to get back to Rainham in Kent where, earlier,
0:51:55 > 0:51:59Lucy took a spin around this former bike shop, which had hidden depths.
0:52:00 > 0:52:01It's spacious in here.
0:52:01 > 0:52:04Look at the size of this.
0:52:04 > 0:52:05And through this door...
0:52:06 > 0:52:08..is another outbuilding!
0:52:08 > 0:52:12Well, this space proved too much of a temptation for Steve
0:52:12 > 0:52:16and his silent business partner, Ian, who paid £175,000 at auction,
0:52:16 > 0:52:18a bit more than they would have liked.
0:52:21 > 0:52:24The first of Steve's plans was to refurbish the shop
0:52:24 > 0:52:27and convert upstairs into a one-bedroom flat.
0:52:27 > 0:52:29But the real potential was in the back garden.
0:52:29 > 0:52:32At the end of the garden, there's a big, derelict brick building
0:52:32 > 0:52:35which is actually bigger in footprint than the shop itself,
0:52:35 > 0:52:39and we was hoping to be able to get planning permission to convert that
0:52:39 > 0:52:42into residential as well, fingers crossed.
0:52:42 > 0:52:46Fingers and toes, because obtaining planning permission
0:52:46 > 0:52:49would be no easy ride, particularly since right of access
0:52:49 > 0:52:52to the back of the property belonged to next door.
0:52:53 > 0:52:56Now I've got to speak to next door to ask really nicely
0:52:56 > 0:52:59if they'll give it to us.
0:52:59 > 0:53:00First things first,
0:53:00 > 0:53:03Steve had to get the shop and the new flat
0:53:03 > 0:53:06earning income as quickly as possible.
0:53:06 > 0:53:10The partners set aside two months and £25,000
0:53:10 > 0:53:13to update the shop and convert upstairs.
0:53:13 > 0:53:16Four months later, we're back to see how phase one is getting on.
0:53:26 > 0:53:28The tired upstairs accommodation
0:53:28 > 0:53:31is now a bright and cheerful one-bedroom flat,
0:53:31 > 0:53:34almost ready for a tenant to move into.
0:53:34 > 0:53:37Steve's awaiting delivery of glass panels which will add
0:53:37 > 0:53:40a classy finishing touch to the stairway.
0:53:40 > 0:53:43It's been a simple conversion process at the front of the building
0:53:43 > 0:53:45but trickier at the back.
0:53:46 > 0:53:50This was probably the most challenging area in the flat conversion.
0:53:50 > 0:53:52Main reason was because it was so tight for space.
0:53:52 > 0:53:56We had before a little office area over here and in the back, here,
0:53:56 > 0:54:01it was just a fireplace, an old toilet and a basin in there.
0:54:01 > 0:54:04I had to make sure we utilised the space enough to get a kitchen in
0:54:04 > 0:54:06which you could use, but also
0:54:06 > 0:54:09that you could at least swing a cat in the bathroom area.
0:54:09 > 0:54:12Get the shower and toilet in and it just about fits.
0:54:12 > 0:54:16It was really, really tight but we think it's worked.
0:54:16 > 0:54:19Downstairs, the shell of a retail unit is finished
0:54:19 > 0:54:22but the new tenant is currently fitting out the shop to their requirements.
0:54:25 > 0:54:29Once everything's done, Rainham will have a smart new tea shop.
0:54:29 > 0:54:33The shop was in a bit of a mess when we moved in,
0:54:33 > 0:54:36so we completely gutted it, re-stripped it, new electrics,
0:54:36 > 0:54:38new plumbing, new kitchen, new bathroom.
0:54:38 > 0:54:40Basically, we just gave it a white canvas.
0:54:42 > 0:54:45Steve comes across as a pretty organised sort of chap,
0:54:45 > 0:54:49but when it comes to planning permission, he doesn't half cut things fine.
0:54:49 > 0:54:52Planning permission for the flat and development as a whole,
0:54:52 > 0:54:54we've put in for, as we started the works.
0:54:54 > 0:54:58We completed the works before we actually got planning permission,
0:54:58 > 0:55:00so we got planning permission five days ago
0:55:00 > 0:55:03and the works were completed about six days ago,
0:55:03 > 0:55:06so it was done on risk, but fortunately it paid off.
0:55:06 > 0:55:07Steve had a need for speed,
0:55:07 > 0:55:11but we would never recommend you do work without having planning
0:55:11 > 0:55:14permission granted. There's a danger the council could come back
0:55:14 > 0:55:17and make you undo some or all of the works.
0:55:17 > 0:55:19Despite Steve's fast-track approach,
0:55:19 > 0:55:22his timescale slipped by about eight weeks.
0:55:22 > 0:55:24But what about the budget?
0:55:24 > 0:55:28We've gone a bit over budget, probably about 30,000, maybe 32,
0:55:28 > 0:55:30which brings us to about 205, 207.
0:55:31 > 0:55:33So far, so good for Steve and Ian,
0:55:33 > 0:55:36but phase two of their grand plan could be the biggest challenge.
0:55:39 > 0:55:40But, for now,
0:55:40 > 0:55:43we've invited two local property experts to have a look around
0:55:43 > 0:55:46at what's been done so far and tell us what they think.
0:55:47 > 0:55:50Having had the opportunity to look around the property,
0:55:50 > 0:55:53I think they've done a good job.
0:55:53 > 0:55:55They've done exactly what they need to do.
0:55:55 > 0:55:57Not too much and not too little.
0:55:57 > 0:55:59The standard's right.
0:55:59 > 0:56:03Actually perfect for the location and the type of property.
0:56:03 > 0:56:04I actually like the property.
0:56:04 > 0:56:07I think it's in a good location and I think they've done a good job
0:56:07 > 0:56:08dividing the two units.
0:56:09 > 0:56:13Steve thinks he just about got away with the compact kitchen upstairs,
0:56:13 > 0:56:15but will the experts agree?
0:56:16 > 0:56:20The layout of the first-floor flat is...
0:56:20 > 0:56:23interesting. It has resulted in a very small kitchen.
0:56:23 > 0:56:27The agents feel that demand is high in this area for this type
0:56:27 > 0:56:31of accommodation, and, since Steve and Ian plan to rent out the flat,
0:56:31 > 0:56:37they suggest a rental income of between £650 and £700 per calendar month.
0:56:37 > 0:56:40And both agents agree that the shop should rent
0:56:40 > 0:56:42for around £750 per calendar month.
0:56:42 > 0:56:45They've already been signed now so we know exactly what
0:56:45 > 0:56:49we're getting, so we are getting 700 for the shop
0:56:49 > 0:56:51and we are getting 650 for the flat.
0:56:51 > 0:56:54That combined monthly rent of £1,350
0:56:54 > 0:56:58means that Steve and Ian are currently getting a return
0:56:58 > 0:57:01on their £207,000 investment of just under 8%.
0:57:01 > 0:57:04But, of course, that's all phase one.
0:57:04 > 0:57:06How are plans for the rear development progressing?
0:57:07 > 0:57:11We are hoping to get planning for four more one-bedroom flats.
0:57:11 > 0:57:12When we bought the property,
0:57:12 > 0:57:15we wanted access to the rear so we could give a parking space
0:57:15 > 0:57:18for the flat we're standing in now and also for
0:57:18 > 0:57:20a potential new development at the rear.
0:57:20 > 0:57:23It all helps with planning if you can get parking spaces
0:57:23 > 0:57:27but it's not a necessity. I've been round to see the working men's club.
0:57:27 > 0:57:30They've been fantastic, by the way. They really have been helpful.
0:57:30 > 0:57:32But, through conversations with them,
0:57:32 > 0:57:35it was crystal clear that they didn't want us to have any access
0:57:35 > 0:57:37on their land long-term whatsoever,
0:57:37 > 0:57:40so we basically had to throw that away, that idea.
0:57:40 > 0:57:43So we've now gone down the route of saying we'll go for flats,
0:57:43 > 0:57:45and the flats won't have any car parking whatsoever.
0:57:45 > 0:57:47And, at the end of the day, not everyone's got a car.
0:57:47 > 0:57:49So it doesn't really matter, to be honest.
0:57:49 > 0:57:52And how long does he think the process could take?
0:57:52 > 0:57:55Fingers crossed, if you come back in a year's time, we've got planning
0:57:55 > 0:57:57out the back and we've started the development
0:57:57 > 0:57:59and hopefully finished it by then as well,
0:57:59 > 0:58:02you'll see a plot that's got four flats and one shop,
0:58:02 > 0:58:05hopefully all rented out.
0:58:07 > 0:58:10Well, all over the UK pretty much all year,
0:58:10 > 0:58:12there are property auctions going on.
0:58:12 > 0:58:14Yes, that's right, that's why we always try and catch the action
0:58:14 > 0:58:16- wherever we go.- Yeah, so join us next time here
0:58:16 > 0:58:18- on Homes Under The Hammer. - Goodbye.