Episode 66 Homes Under the Hammer


Episode 66

A father helps his daughter out buying and transforming a maisonette in Ewell for her to live in, and in Derby two friends hope to create smart accommodation for seven students.


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Transcript


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Hello. Now, nobody has a crystal ball, or one that works, anyway.

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So, sometimes, well, it's quite difficult, isn't it,

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to predict the property market.

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Yeah, it shouldn't cause too much unnecessary stress,

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but you should always be thinking, "How can I add value?"

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Well, one way you could possibly do that is by heading down

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to your local property auction.

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Well, property auctions throw up all sorts of different lots.

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Over the years, we must have seen literally thousands.

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-Yeah.

-And they all have their own unique story.

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Yeah, but what did the auction catalogues offer today's buyers?

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Ah, let's find out.

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In Surrey, this maisonette is ripe for reconfiguring.

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Yeah. First thought for me is knock this through,

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give yourself a nice big lounge.

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Yes, the partitions are easy to remove, and in this house in Derby,

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it won't take much to get rid of this wall.

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And in Kent, Lucy explores a shop with a development opportunity

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at the back!

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If there's any way you could get planning on that plot, well,

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it could be wheelie, wheelie good!

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All these properties have been sold at auction,

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and we'll find out who bought them and what they paid

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when they went under the hammer.

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Sold, 190.

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This is the village of Ewell in Surrey.

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It lies on the edge of Greater London,

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so is very much a commuter belt territory.

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The name Ewell originates from the old English word

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for spring or river source,

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and indeed, the village has the main spring and pond

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which form the head of the Hogsmill River, a branch of the Thames.

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Now, half a mile from the train station

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down this very busy cul-de-sac,

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and it just goes to show,

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if you haven't got a lot of off-street parking in a cul-de-sac,

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it can become an issue.

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Property I'm here to see is that first-floor maisonette.

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It's got three bedrooms and a guide price of £130,000.

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Now, I do know after reading the auction catalogue,

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there is the possibility of off-street parking to the left.

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Let's hope upstairs is pretty.

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The current paved parking belongs to the lower maisonette.

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I reckon if you cut that hedge back,

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lay down some suitable hard standing,

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there'd easily be room to park a car in the section

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that belongs to our maisonette.

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Bit of a hallway as you come in.

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You've got bedroom one there.

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Good-sized bedroom one, double bedroom.

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Down the hallway, kitchen.

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It is a little bit tight, but it's what to expect.

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Dated, does need to be changed throughout in there.

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What else have we got down here?

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Family bathroom in a similar condition to the kitchen,

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would need to be changed.

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Another bedroom there with fitted wardrobes,

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so that's bedroom number two.

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Into the main lounge.

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So that would be bedroom number three, which is off the lounge.

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So, hold on a sec, let me check this.

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Yeah, first thought for me is knock this through,

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give yourself a nice big lounge.

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However, if you do need that third bedroom,

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you could quite easily block that off

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and put the door to that bedroom off the hallway.

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Then you'd still have your three bedrooms,

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you'd still have your lounge.

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I don't mind it, actually. I don't mind the configuration at all.

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It just needs to be modernised.

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Don't be fooled by the radiators.

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I suspect this is where the boiler used to be,

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so a new central heating system is a must,

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but there's no point in heating the house

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if all the heat's going to disappear out the windows.

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MUSIC: Cold as Ice by Foreigner

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Now, what I have noticed through the whole of this flat,

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behind these beautiful net curtains,

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there's aluminium windows throughout.

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Now, they would all need changing.

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They're all dated.

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They're not very pretty.

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So for me, get rid of them.

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But, and there is another bonus beyond the net curtains.

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You actually get a bit of back garden.

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That little bit at the back, that walled garden.

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Got a bit of an outside space as well.

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Bully bonus.

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Access to the garden is through a shared gateway,

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and a narrow path which is overgrown, as you can see.

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The garden itself could do with a bit of a mow

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and some green-fingered TLC. But that said,

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it's a good size and perfect for barbecues on a summer's day.

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Now, I think this flat is fine.

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It just needs modernising.

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But there is one big problem.

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It has an incredibly short lease of around 37 years.

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What that means is, lenders won't touch it.

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And if you want to extend that lease,

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it's going to cost you a lot of money.

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You legally have the right to extend a short lease,

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but you must have owned the property for two years.

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And bear in mind, the shorter the lease,

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the bigger the cost of extending it.

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So this auction property has its drawbacks,

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but there's definitely good potential here.

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And what about the area it's located in?

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We asked along an estate agent to tell us more about Ewell.

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Ewell's a fantastic village.

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Got some very, very good outstanding schools in and around the local

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community. Got some great links in and out of London.

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You're nice and close to Gatwick as well,

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which is always fantastic for commuters.

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Very nice village, very nice atmosphere. Very desirable.

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What about the maisonette itself?

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It would definitely need modernisation throughout.

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So that would be new kitchen, new bathroom.

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In doing so, you'd probably look at the decor as well

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and then the major part would be to extend that lease,

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to have a look at that. Other than that,

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it's a very good-sized flat and will be appealing in the marketplace.

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Can he suggest how much it could be worth on the resale market?

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With an extended lease and modernised throughout,

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we'd be looking to market the property anywhere

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from £325,000 to £350,000.

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And if put on the rental market?

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We'd be looking to market it anywhere

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from £1,200 to £1,300 per calendar month.

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I actually do like this flat.

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It does need modernising.

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The windows need to be changed throughout,

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it needs a new bathroom and a new kitchen.

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And it has got that short lease as well.

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

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Right, lot 59.

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Three-bed maisonette.

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Start at 130 on this one.

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Gent standing up, 130.

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You sitting down, 135.

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140, sir.

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There was plenty of interest from a packed auction,

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and we rejoin at £188,000.

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188. 189.

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Yes. 190.

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190. 191.

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Yes, no?

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No. 190, standing up.

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Anyone else?

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Another thousand? If not, 190.

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First time, second time.

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Third and last time.

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Sold, 190. Well done.

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Making that bid of 190 grand was building contractor Steve.

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He bought this for his daughter Grace,

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so I met him back at the property to find out about his new purchase.

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Steve, nice to meet you.

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-Good to see you.

-Congratulations as well, pal.

-Thank you.

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Why this? What was it about the property that you liked?

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It's really close to the mainline station,

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and it's the last stop so that you can use your Oyster card.

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Is it really?

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-That's cool!

-Yeah.

-So the Oyster card,

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your daughter will be travelling in and out of London?

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Yeah, she needs to. She works in Pall Mall.

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So she needs to be able to get there.

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At the moment, we're just outside of that.

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-OK.

-So it would be nice for her to be using the Oyster card.

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And it's great, isn't it? It's the last stop as well.

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-Last stop.

-How lucky.

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-Yeah.

-So have you been into property a long time, or...?

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What's your day job? What did you do before?

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I've got a design build company.

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Design. Will you be chopping and changing this a bit, or...?

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I don't think there's too much options on this one.

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-OK.

-And my daughter is going to be the project manager.

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So she will be deciding what goes on in this one.

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Really? That'll be fun!

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-That'll be fun!

-I'll be the contractor.

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Working with your daughter on a project.

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-Yeah, exactly.

-Oh, my gosh. You're going to give her the reins?

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Give her the reins.

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But make sure it's within certain purse strings.

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Yeah, of course.

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# As long as I foot the bill

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# I pay the cost

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# To be the boss. #

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Well, he's bought the house,

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but I don't think Steve's going to be the boss on this one.

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Daughter Grace is an interior designer,

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and she's used to dealing with budgets

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that run into millions of pounds.

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Unfortunately, she's got less to work with on this project.

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We hope to do it for 15,000.

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But 20, absolute max.

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Because it's for family as well.

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-Yeah.

-You have to go that bit further, don't you?

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Yeah. Well, at the moment, there's no parking,

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so parking is an issue in this road.

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So we've got to generate a driveway, which is going to take up, you know,

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a fair bit of the budget.

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So, tell me what you're going to do to this place, specifically.

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Um, new windows. None of them are in keeping with the rest of the road.

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There's a certain look that this road has got,

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so we're just going to create that look with the same type of windows.

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New central heating.

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New bathroom, new kitchen.

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Redec throughout.

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The door behind me is going to be blocked up

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and we're just going to create the third room.

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-OK.

-The third bedroom.

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So, rather than having it as a sort of a through lounge.

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Gotcha. Do know what kind of finish Grace will be looking for?

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I would imagine it'll be flat panel.

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-OK.

-And just a matte finish.

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-Modern?

-But I shall wait and see.

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-Very modern, yeah.

-Very modern?

-Yeah.

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What they call minimalist.

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Yes. OK, that's cool. So, are you worried that Grace

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is going to take over and just edge that budget too much for you?

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We've got to make sure, and we've got to do, you know, a bill

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of quantities and make sure that everything's within the price range.

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Albeit that she's got four brothers,

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-so those brothers are going to be asked to step in and help out.

-Ah!

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This is a handy family.

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Not only is Grace an interior designer,

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dad Steve does high-end new builds for clients,

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and the four brothers are no slouches either.

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My oldest son works for me.

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He's a plasterer and tiler.

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The next son down is an electrician.

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And the next son down is...

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He's got a telecoms company, but he can... He can help.

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And the youngest boy is going to be coming in and helping out

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-with all the stripping off all the paper.

-See, honestly,

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Grace has got everything covered. She'll be like that,

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she'll be clicking her fingers saying, "Wrong colour tiles".

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-Yeah.

-Good for her!

-She's looking forward to ordering her dad around.

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-And her brothers.

-Yes!

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MUSIC: Daddy Cool by Darts

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There's no doubt Grace has got it made.

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With dad Steve at the helm and four very useful brothers to call on,

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this should be a hassle-free path to success.

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Ah, I was forgetting one thing.

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The property does come with a very short lease.

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Which we knew that we only had a certain amount to spend on the basis

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that there is going to be some fee to pay further down the line.

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But as of yet, we don't know who the freeholder is,

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so we haven't been able to even think about that down the line.

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Steve needs to track down the freeholder to negotiate that lease extension.

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If the freeholder can't be traced,

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he can apply to the County Court for a vesting order.

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This is an application to have the freehold

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transferred to the leaseholder for a sum of money decided by the court.

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The cash is put aside, should the freeholder eventually turn up.

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If you find yourself in this position, get some legal advice.

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So what about a timescale then, Steve?

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At the moment, we've got around about six weeks.

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Well, do you know the values in this area?

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Do you know what you would expect to pay for a flat like this?

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If it had a good lease...

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-Yeah.

-..somewhere, 320-350.

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-And you paid 1...

-90.

-That's good, isn't it? If you get it right.

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I know it's going to be your daughter's home, but...

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Yeah, if you get it right, it'll work out well.

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If we don't get it right, we've got a property for a long time.

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Yeah, exactly. Which is not a problem either.

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-No, it's not a problem.

-Because you can keep hold of it.

-Yeah.

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-I'm pretty sure your son will dive in there, if your daughter does one.

-Yeah, exactly.

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Well, good luck. Grace will be taking over before you know it, pal.

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-All the best.

-Thank you.

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Take care.

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Firstly, what a great dad Steve is,

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helping his daughter Grace get on the property ladder.

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He's given himself a decent budget of £15,000

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and that short lease doesn't seem to bother him.

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I think with Grace's interior design eye

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and the brawn and muscle of her brothers,

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I think this place will be bang on.

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You can find out how they get on later in the programme.

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Derby was first settled in the seventh century,

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and the name's believed to mean "village of the deer" in old English.

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It was a key area in the Industrial Revolution

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and was granted city status in 1977.

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It's now home to the University of Derby,

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ranked in the top 100 universities in England and Wales.

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History lesson over,

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it's now time for a lecture in student economics.

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Well, the property I'm here to see, it really is all about location,

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because we are walking distance from the university.

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So, the idea of a four-bedroom house, guide price of £100,000...

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Oh, I'm thinking...student lets, yeah!

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You can only spot these type of auction properties

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by doing your research, and it can really pay off.

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So if I am starting with that sort of student accommodation in mind,

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I'm thinking about maximising the number of rooms.

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So let's see what we can do.

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Downstairs loo, which is quite useful,

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and then stairs up to your bedrooms.

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Now, here's the exact case in point.

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That is under... I guess, normal circumstances,

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some kind of a living room, maybe,

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but, actually, if you're doing student lets,

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that would be a bedroom for sure.

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Because you come through into this room,

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you've got what was the kitchen.

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As you can see, it is in a terrible, terrible state.

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There's sort of some things you take for granted when it comes to houses

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and having fairly solid walls is one of them.

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In this case...

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It's not ideal, is it?

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I didn't even need the BBC's comedy sound effects for that bit!

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And what's definitely not tickling my funny bone is getting a mortgage

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here, as that would be very difficult because it's non-standard

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construction, and the construction bit is definitely suspect!

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# You're not standing like you used to... #

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The ground floor has ample space, but time to look at the first floor,

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to see if the student let idea holds up better than that wobbly wall.

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So on this floor, another bedroom there.

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When I say another bedroom,

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that's assuming the one downstairs is a bedroom.

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And then into this room, which I guess is the lounge.

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And I say that because, one, it's a through route to the stairs

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which lead to more bedrooms upstairs,

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and secondly, you've got this big window and then out

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onto the balcony.

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That's a really pleasant thing to have, actually.

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That said, it doesn't look like it's in that good a condition,

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and certainly could be contributing to the problems downstairs.

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A balcony is a bonus, but the outside of this house

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needs a lot of attention.

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And to think about making this big room bedroom number three,

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you would need to think about access to the stairs.

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One more floor to go.

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One thing you can say is that all the rooms are a really nice size.

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I mean, look at the bathroom. It'd be nice if it had a toilet in it.

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Well, it sort of has a sort of half a toilet,

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so major redoing everything required.

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But it's a good size, as I said.

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Another bedroom there, really nice size double.

0:17:180:17:20

And then into probably my favourite room in the property,

0:17:200:17:25

only because it's so kind of like 1960s flower power, yeah, man.

0:17:250:17:29

One thing which isn't so lovable

0:17:290:17:31

is the fact that it hasn't got a ceiling.

0:17:310:17:34

Er...

0:17:340:17:35

Don't know why that's not there.

0:17:350:17:38

Weird!

0:17:380:17:39

MUSIC: Groovy Little Hippie Pad by ZZ Top

0:17:390:17:43

Even students with the most liberal approach to hygiene

0:17:490:17:53

might baulk at this 100 grand guided property, as it needs everything.

0:17:530:17:58

We asked an agent from the auction house that sold it

0:17:580:18:01

to tell us what else it needs to become an ideal home

0:18:010:18:04

for budding scholars.

0:18:040:18:06

This area's incredibly popular with students.

0:18:060:18:10

If you're going to rent to the student market,

0:18:100:18:12

once we get to three or more unrelated people,

0:18:120:18:14

then we need to take into account HMO regulations.

0:18:140:18:16

With regards to a HMO property,

0:18:160:18:18

you would certainly need to make sure

0:18:180:18:20

that a hard-wired fire alarm system was installed.

0:18:200:18:22

The doors would need to be up to a certain specification.

0:18:220:18:24

And again, most of these things are there for, quite rightly,

0:18:240:18:27

for the tenants' safety.

0:18:270:18:29

So to values.

0:18:290:18:30

Resale, rental, for a family tenancy and for my student let idea.

0:18:300:18:34

Once renovated to a good standard,

0:18:370:18:39

would achieve a sale somewhere in the region of £140,000.

0:18:390:18:42

And on the rental market, would anticipate a rent of £650 per calendar month.

0:18:420:18:46

If you were to offer this property to the student market,

0:18:460:18:49

once renovated to a good standard,

0:18:490:18:50

I would anticipate there being four letting rooms.

0:18:500:18:53

Four letting rooms at £70 per week over 48 weeks

0:18:530:18:56

would bring in an income of £14,000 per annum.

0:18:560:18:59

And that certainly would be the best way to maximise your investment.

0:18:590:19:02

Based on the agent figures of around £14,000 a year for a student let,

0:19:020:19:06

or just under 8,000 a year for renting it as a house,

0:19:060:19:10

it's a no-brainer.

0:19:100:19:11

Well, there is a lot of work to be done on this one,

0:19:110:19:15

But it's a good-sized property, and the main thing is its location,

0:19:150:19:19

so close to the university.

0:19:190:19:20

I think it could be a really good earner.

0:19:200:19:23

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

0:19:230:19:27

Lot number 20.

0:19:280:19:29

A large property. It's a popular rental area.

0:19:290:19:31

May I say 105 for it?

0:19:310:19:34

100? 100?

0:19:340:19:35

98. Bid me where you like.

0:19:350:19:37

98, 95.

0:19:370:19:39

Don't mind where we begin.

0:19:390:19:40

95 I've got here.

0:19:400:19:41

At £95,000.

0:19:410:19:43

There was no great rush to bid for this property,

0:19:430:19:46

so we rejoin the action with the price at 104,000.

0:19:460:19:50

104 is bid.

0:19:500:19:52

104 and a half.

0:19:520:19:54

105.

0:19:540:19:56

And a half? 106?

0:19:560:19:59

106?

0:19:590:20:01

Good house. 500?

0:20:010:20:03

107, it's your turn.

0:20:030:20:05

107.

0:20:050:20:07

£107,000.

0:20:070:20:10

500?

0:20:100:20:11

Yup, 500. 108? 108.

0:20:110:20:15

Five again. At £108,000, it's going to go, no mistakes.

0:20:150:20:20

At £108,000 for the first time.

0:20:200:20:24

For the second time. Third opportunity.

0:20:240:20:27

It's yours, sir, at £108,000. 158. Thank you.

0:20:270:20:30

Getting a congratulatory smile from his sister Ranju is bidder Mahesh.

0:20:300:20:35

He clinched the property for £108,000.

0:20:350:20:39

Mahesh is no stranger to Homes Under the Hammer.

0:20:390:20:41

I met him and business partner Mayur twice back in 2015.

0:20:410:20:46

First when they bought a four-bed terrace in Normanton,

0:20:460:20:49

and again when they purchased this detached house

0:20:490:20:52

to turn into a student let.

0:20:520:20:54

And now this is their third time.

0:20:550:20:58

As Mahesh owns several student property lets already,

0:21:000:21:03

I can probably guess what they're going to do with their new purchase.

0:21:030:21:06

Mayur, Mahesh, great to see you both.

0:21:060:21:10

Again, actually!

0:21:100:21:12

-That's right.

-Yes, the third time.

0:21:120:21:14

What is it about auctions that's really sort of rocking your boat

0:21:140:21:18

-at the moment?

-Opportunities like these.

0:21:180:21:20

You rarely get them on high streets.

0:21:200:21:22

There is... In the marketplace now, there is lots of gazumping as well.

0:21:220:21:26

So, you know, if you wait for something,

0:21:260:21:28

not sure whether you would get that, and then there is also

0:21:280:21:31

the long process of getting mortgages, this and that.

0:21:310:21:34

But this one is pretty quick, and you know that once the hammer goes,

0:21:340:21:38

-it's yours.

-Remind me of your relationship,

0:21:380:21:40

how it works between you, what you do.

0:21:400:21:43

We're just friends.

0:21:430:21:45

I started on the property side, and then this guy said,

0:21:450:21:47

"OK, I'm joining in." And then the next thing you know,

0:21:470:21:49

-he's overtaking me!

-Do you pay him?

0:21:490:21:53

-Er, no. We, we...

-What, what?

0:21:530:21:58

People need friends like you.

0:21:580:21:59

What do you get out of this?

0:21:590:22:00

Because you must put a lot of effort in.

0:22:000:22:02

I just enjoy it. I just enjoy seeing a property,

0:22:020:22:04

especially something like this, which needs everything doing to it,

0:22:040:22:07

and then seeing the end result.

0:22:070:22:09

But you won't make any money out of it whatsoever?

0:22:090:22:11

No, he's too tight. He's too mean.

0:22:110:22:14

I think, let me make the money first,

0:22:150:22:18

and then we'll discuss that!

0:22:180:22:20

Wow!

0:22:210:22:22

# Can you feel that, yeah

0:22:220:22:24

# We're paying with love tonight

0:22:240:22:27

# It's not about the money, money, money

0:22:270:22:30

# We don't need your money, money, money

0:22:300:22:32

# We just want to make the world dance

0:22:320:22:35

# Forget about the price tag. #

0:22:350:22:38

Well, no wonder Mayur is a popular fellow.

0:22:380:22:40

His expertise is really helping Mahesh grow his business.

0:22:400:22:44

But what do they intend to do to this house?

0:22:440:22:47

We're going to convert this into five en-suite rooms.

0:22:470:22:50

Downstairs, where it's the kitchen,

0:22:500:22:53

that's going to remain as kitchen-diner and lounge.

0:22:530:22:56

We are thinking of extending that by three metres.

0:22:560:22:58

-Oh, wow.

-So to make it a bigger kitchen-diner lounge.

0:22:580:23:00

Especially when there's going to be five students living here.

0:23:000:23:03

-Single-storey extension?

-Yes.

-Yeah, OK, cool.

0:23:030:23:05

And the room below us will be an en-suite bedroom.

0:23:050:23:08

This room here will be an en-suite bedroom.

0:23:080:23:11

The room next to us will be en-suite bedrooms.

0:23:110:23:13

And the three rooms we've got upstairs,

0:23:130:23:15

they'll be converted into two en-suite bedrooms as well.

0:23:150:23:17

Right. You get five nice-sized en-suites.

0:23:170:23:20

The pair think the work will take three months

0:23:210:23:24

to get the permissions to convert into an HMO,

0:23:240:23:26

but what kind of rental return do they expect?

0:23:260:23:28

We're aiming at £500 a week.

0:23:320:23:34

£2,500 a month?

0:23:340:23:35

-Close to that, yeah.

-Yeah, well, yeah pretty much...

0:23:350:23:38

I mean, you've got costs at the minute, but that's fantastic.

0:23:380:23:40

So, what's the budget for the work?

0:23:400:23:43

OK. The budget we are currently looking at is about £25,000.

0:23:430:23:48

Because everything here needs doing.

0:23:480:23:51

Starting from floors and decorations.

0:23:510:23:55

And some of... As you've probably seen,

0:23:550:23:56

some of the ceilings are missing.

0:23:560:23:58

So there's loads of work, and doing altogether, it would be about 25K.

0:23:580:24:04

So, a healthy budget and a positive glowing return.

0:24:050:24:09

If they do stick to their budget,

0:24:090:24:10

they could be looking at a potential 18% yield.

0:24:100:24:14

Well, listen, congratulations.

0:24:140:24:16

Lovely to see you both again

0:24:160:24:17

-and I'm sure we'll see you again.

-Good to see you.

0:24:170:24:19

-Thank you.

-Bye, Martin. Thank you.

0:24:190:24:22

Well, if things go to plan and this place is generating £2,500 a month,

0:24:220:24:27

it's a right little earner for Mahesh.

0:24:270:24:31

And I think I might have slightly put the cat amongst the pigeons,

0:24:310:24:33

because Mayur really should be getting something for his efforts,

0:24:330:24:38

shouldn't he? Lots of work to do to sort it out, though.

0:24:380:24:41

Will they get it done in time?

0:24:410:24:43

You can find out later in the show.

0:24:430:24:44

Still to come, has the buyer of this Rainham property

0:24:460:24:49

got his lots mixed up?

0:24:490:24:50

This wasn't a safe bet for you.

0:24:500:24:52

Not really, no.

0:24:520:24:53

-Why did you end up buying this?

-Because I wanted to get next door!

0:24:530:24:57

And there's a bit of confusion in Derby, too.

0:24:570:25:00

We spent about two weeks kind of putting...

0:25:000:25:02

starting work and taking it out, and then doing it again and again.

0:25:020:25:05

Time to return to the Surrey village of Ewell,

0:25:110:25:14

to find out how Steve got on with this three-bed maisonette

0:25:140:25:17

which he purchased at auction for 190 grand.

0:25:170:25:20

His plan was to refurbish it

0:25:220:25:23

and make it a home for his daughter, Grace,

0:25:230:25:26

and its location made it especially desirable.

0:25:260:25:28

It's really close to the mainline station

0:25:300:25:33

and it's the last stop so that you can use your Oyster card.

0:25:330:25:37

MUSIC: Groovy Train by The Farm

0:25:370:25:40

With Grace's transport to and from London taken care of,

0:25:430:25:46

it was down to Steve and his four sons to carry out and complete

0:25:460:25:50

a total refurb of this house.

0:25:500:25:53

Added to this, Grace's interior design expertise

0:25:530:25:55

would hopefully turn this into a dream home,

0:25:550:25:58

but Steve had some important business to take care of.

0:25:580:26:01

The property does come with a very short lease.

0:26:010:26:04

There is going to be some fee to pay further down the line.

0:26:040:26:08

But as of yet, we don't know who the freeholder is.

0:26:080:26:12

Realising that money would have to be kept aside to extend the lease,

0:26:130:26:16

Steve knew that a strict budget was crucial.

0:26:160:26:19

But with daughter Grace project managing,

0:26:230:26:25

might the purse strings be loosened slightly?

0:26:250:26:28

So, are you worried that Grace is going to take over

0:26:280:26:31

and just edge that budget too much for you?

0:26:310:26:34

We've got to make sure

0:26:340:26:35

that everything's within the price range.

0:26:350:26:38

We hope to do it for 15,000, but 20 absolute max.

0:26:380:26:42

Aiming to complete within six weeks and mindful of that 20 grand limit,

0:26:460:26:50

Steve set to work.

0:26:500:26:52

Nine weeks later, we are back to catch up.

0:26:520:26:55

Forget maisonette, this is now amazing-nette,

0:27:090:27:13

and Steve's been doing a spot of redesign.

0:27:130:27:16

So this room used to have a door here,

0:27:190:27:23

going through into what was the lounge.

0:27:230:27:26

This has been blocked off, and this has now become Grace's studio.

0:27:260:27:30

This door was an original door that had been blocked off,

0:27:310:27:36

so we've just reinstated it.

0:27:360:27:38

With the new windows, it's a nice, light, bright room.

0:27:380:27:42

And the lounge that was is no longer.

0:27:450:27:47

It's now Grace's bedroom.

0:27:470:27:49

And Grace is going to have some company too,

0:27:490:27:51

as youngest brother Joel is moving in.

0:27:510:27:53

Hopefully they can live together.

0:27:550:27:57

If they can't, then we'll have to make other arrangements.

0:27:570:28:00

As well as a new kitchen and bathroom,

0:28:020:28:04

a combi boiler has been fitted and a central heating system

0:28:040:28:08

which is completely renewed.

0:28:080:28:09

As for those old aluminium windows...

0:28:090:28:12

The original windows were in very poor condition,

0:28:120:28:14

so we made arrangements for new windows to be put in.

0:28:140:28:18

Fortunately, we'd already prearranged

0:28:180:28:21

for a conservation window to be put on the front elevations.

0:28:210:28:25

And as you look around the street,

0:28:250:28:28

it now looks in keeping with everything else,

0:28:280:28:31

rather than standing out like a sore thumb.

0:28:310:28:33

Although the six weeks' timeframe slipped by three weeks,

0:28:340:28:37

my fears that Grace might run over the budget

0:28:370:28:40

proved completely unfounded.

0:28:400:28:42

It was a lot easier than I thought.

0:28:420:28:45

She didn't go overboard.

0:28:450:28:47

I think probably the most expensive things

0:28:470:28:50

were maybe the tiles in the bathroom,

0:28:500:28:52

which were a little bit more than we'd budgeted for.

0:28:520:28:54

But otherwise, we've come in just under 18,000 at the moment.

0:28:540:28:59

Her brothers and the guys that work for us have come in

0:28:590:29:02

and done most of the work.

0:29:020:29:04

I've been involved in the design, and fitting the kitchen,

0:29:040:29:08

and, really, everything else has been done by the guys that work for me.

0:29:080:29:14

Outside, the wild, overgrown back garden has been tamed.

0:29:150:29:19

And in the front,

0:29:190:29:20

preparations are being made to lay a driveway

0:29:200:29:23

for some off-road parking.

0:29:230:29:25

Has Steve managed to make any progress on extending that lease?

0:29:260:29:29

They think they've located the freeholder.

0:29:290:29:32

But because I've been so busy doing it,

0:29:320:29:35

it's not something I've really pursued at the moment.

0:29:350:29:37

It's always been in the back of our mind that this may not come off,

0:29:370:29:42

so it's always going to be a long-term investment for us.

0:29:420:29:45

And if we have to give it back after 38 years, then so be it.

0:29:450:29:49

Well, after making such a nice job of this,

0:29:510:29:54

let's hope it doesn't come to that, Steve.

0:29:540:29:56

This is a gem of a property, and it's polished up nicely,

0:29:590:30:03

but what will two local estate agents make of the jewel in Ewell,

0:30:030:30:07

starting with the agent who saw the property earlier.

0:30:070:30:10

The changes they've made are great, especially in regards to the finish,

0:30:100:30:13

both in terms of the bathroom and the kitchen,

0:30:130:30:15

and the outside space that they've made good of as well.

0:30:150:30:17

That has really added in terms of value and saleability

0:30:170:30:20

of the property, without a doubt.

0:30:200:30:21

Absolutely stunning.

0:30:210:30:22

The owner's done a fantastic job.

0:30:220:30:24

It's exactly what buyers and renters are looking for.

0:30:240:30:27

It's all neutral and modern.

0:30:270:30:29

Kitchen and bathroom, absolutely stunning.

0:30:290:30:31

So far, Steve has spent a total of £208,000 on this lovely flat.

0:30:320:30:37

So let's find out how much it would be worth

0:30:370:30:40

if he manages to extend the lease.

0:30:400:30:42

With the lease extended,

0:30:420:30:43

you would be looking at £360,000 to £370,000,

0:30:430:30:48

and it'd be a lot easier to sell,

0:30:480:30:49

because you'd open it up to the full market.

0:30:490:30:52

We'd be looking to probably market the property

0:30:520:30:54

around the sort of £350-360,000 mark.

0:30:540:30:57

If those figures are correct,

0:30:570:30:59

then it's a really good purchase and investment.

0:30:590:31:04

Based on the highest figure, that's a pre-tax profit of 162 grand.

0:31:050:31:10

But, of course, he's still got to fork out for the lease,

0:31:100:31:13

so how much could that cost?

0:31:130:31:15

Different agents have said to me it might extend from 20,000, 30,000,

0:31:150:31:21

and the top end was 100,000.

0:31:210:31:23

So if Steve had to stump up as much as 100 grand for the lease

0:31:240:31:28

to add to his spend of 208 grand,

0:31:280:31:30

based on the agent's higher valuation,

0:31:300:31:33

the maisonette could still deliver a pre-tax profit of 62 grand.

0:31:330:31:37

Not bad for a worst-case scenario.

0:31:370:31:41

What about rental valuations?

0:31:410:31:42

In terms of the property's rental,

0:31:440:31:46

you're going to be looking now, with the changes they've made,

0:31:460:31:48

it would be around the sort of £1,300-1,400 per calendar month.

0:31:480:31:51

The flat could rent for £1,500 per calendar month.

0:31:510:31:54

If Steve were to forget about extending the lease in the meantime,

0:31:550:31:58

that top rental figure would mean a healthy yield of 8.6%.

0:31:580:32:03

How does he feel about that?

0:32:030:32:05

If I was renting out, that would be a good return...

0:32:050:32:09

but I suspect I won't get anywhere near that.

0:32:090:32:11

This time round, Lucy is in Rainham,

0:32:160:32:19

one of the smaller of the Medway towns in Kent.

0:32:190:32:22

Rainham has regular train services into London

0:32:220:32:25

that take less than an hour, although for today's property,

0:32:250:32:28

pedal power is the transport option of choice.

0:32:280:32:31

Well, this is a busy road right in the heart of Rainham.

0:32:310:32:35

And for the type of property I'm here to see, well,

0:32:350:32:38

I would say that is a good thing.

0:32:380:32:40

Because it's a two-storey retail unit

0:32:400:32:42

and it was used last as a bike shop.

0:32:420:32:45

Now, the guide price was £145,000-155,000,

0:32:450:32:49

so I'm going to step up a gear and head on in.

0:32:490:32:52

I hope I don't end up feeling a little bit flat.

0:32:520:32:54

Well, loads of passing traffic out there, which is good.

0:32:560:32:58

Ah, and look!

0:32:580:33:00

The hills are alive!

0:33:000:33:02

Not with the sound of music, I'm afraid,

0:33:020:33:04

with the sound of traffic out there.

0:33:040:33:06

But that can be a good thing.

0:33:060:33:08

And I know that the previous owners were here for over 30 years

0:33:080:33:11

with this bike shop, which is a good thing,

0:33:110:33:14

because obviously the retail business does work here.

0:33:140:33:17

You can still see, they've left some of the bike racks,

0:33:170:33:19

and you've got the cabinets here which would have been displaying

0:33:190:33:23

all their goods. And the stairs which lead up there two more space.

0:33:230:33:26

So this whole building was a commercial unit.

0:33:260:33:29

And then out the back here,

0:33:290:33:30

well, it was obviously a bit of a kitchen area,

0:33:300:33:32

maybe they repaired all the bikes out here.

0:33:320:33:35

It does need a bit of a spruce up, as you can see.

0:33:350:33:38

You know, lick of paint.

0:33:380:33:39

Could you turn this shop into something else?

0:33:390:33:42

What would be good here? A nail salon, perhaps.

0:33:420:33:44

A sunbed shop.

0:33:440:33:46

A sandwich bar! I don't know, there are lots of ideas.

0:33:460:33:48

You've got a little door which leads outside to the garden area.

0:33:480:33:52

But, look, you can see it's dirty,

0:33:520:33:54

it needs somebody to come in here and turn it around.

0:33:540:33:56

You've got strip lighting everywhere.

0:33:560:33:58

So there's work to be done, some money to be spent.

0:33:580:34:01

But it's not bad.

0:34:010:34:03

# I want to ride my

0:34:030:34:04

# Bicycle, bicycle, bicycle

0:34:040:34:08

# I want to ride my bicycle

0:34:080:34:11

# I want to ride my bike... #

0:34:110:34:13

Bunny-hop upstairs and you'll find plenty more reasons

0:34:150:34:18

to get pumped up about this property.

0:34:180:34:20

Now, I know this floor was previously used as storage,

0:34:220:34:24

but, well, I think it could be used for more than that, don't you?

0:34:240:34:28

How about converting this into a one-bedroom flat?

0:34:280:34:31

I definitely think that would work in this central spot.

0:34:310:34:34

However, before we get too carried away, there are a couple of things

0:34:340:34:37

you've got to bear in mind.

0:34:370:34:39

You're going to need planning permission from the council

0:34:390:34:42

for change of use, plus, to really make this work, well,

0:34:420:34:45

you're going to need to create separate access up here.

0:34:450:34:49

And luckily, I've just seen the spot where you could do that.

0:34:490:34:52

Lucy is not peddling you a story.

0:34:530:34:55

There really is a gate at the back under all this ivy.

0:34:550:34:59

There may even be stairs up to the first floor.

0:34:590:35:02

Who can tell?

0:35:020:35:03

On the outside of this ivy-covered wall is a pretty big surprise.

0:35:030:35:08

This is quite a big old back garden because this really big -

0:35:080:35:12

really, really, really big shed -

0:35:120:35:14

does take up quite a lot of the space.

0:35:140:35:16

But that's not all the space, because it just continues

0:35:160:35:19

to go on and on.

0:35:190:35:21

But to get there, you've got to go through another outbuilding.

0:35:210:35:24

A bit of a dark hole in there, but I'm going to explore.

0:35:240:35:27

So, it's spacious in here.

0:35:300:35:32

Look at the size of this!

0:35:320:35:34

And this is not where it ends, because there is another door,

0:35:340:35:38

and through this door is another outbuilding!

0:35:380:35:43

And it goes right the way back to that wall and then it continues.

0:35:430:35:47

More land at the back of there.

0:35:470:35:50

It's a really unusual way to access all the outside space,

0:35:500:35:54

through all these doors.

0:35:540:35:57

It's big, though.

0:35:570:35:58

This does seem to be a big waste of usable space.

0:36:010:36:04

And if you could get planning permission to demolish these units,

0:36:040:36:07

then, wow, things really could get interesting.

0:36:070:36:10

There's just one little snag.

0:36:100:36:12

You might have to walk one very fine line to get that planning approved.

0:36:120:36:16

This driveway here is owned by the neighbouring property

0:36:190:36:23

and this incey-wincey little footpath here

0:36:230:36:25

is the only access to the plot down the back there.

0:36:250:36:29

That means no rear vehicle access and no parking.

0:36:290:36:33

So, not an easy development and I'm pretty sure the planners,

0:36:330:36:37

well, they're not going to be a fan of these obstacles.

0:36:370:36:40

This one does offer some challenges,

0:36:410:36:43

so it's time to speak to an agent who knows the local market

0:36:430:36:46

and might be able to give us an inkling

0:36:460:36:48

of the planning possibilities in the area.

0:36:480:36:51

I think that planning for the land at the back is going to be

0:36:520:36:55

fairly straightforward because there are lots of little

0:36:550:36:57

one-bedroom apartments in the area.

0:36:570:37:00

If planning permission was forthcoming and obtained,

0:37:000:37:03

then four to five apartments would be possible.

0:37:030:37:05

Small, or two two-bedrooms,

0:37:070:37:09

so there's lots of potential there as long as access is available.

0:37:090:37:14

Well, this certainly is interesting.

0:37:140:37:15

There are a few different potential sources of income here.

0:37:150:37:19

The first is the retail unit,

0:37:190:37:20

which the agent thinks could bring in around £700 a month.

0:37:200:37:24

Then, if upstairs was converted into a one-bedroom flat,

0:37:240:37:28

you could get a further £575 a month which would be a nice income.

0:37:280:37:32

But the real money-maker here could be by using the land at the back

0:37:320:37:37

for new-build flats.

0:37:370:37:39

So, what could they be worth?

0:37:390:37:40

A new one-bedroom apartment would sell for £110,000

0:37:400:37:47

and a two-bedroom would sell for £130,000.

0:37:470:37:51

On face value, well, I think this former bike shop could be

0:37:530:37:57

a WHEELIE good one to go for,

0:37:570:37:59

but if there was any way you could get planning on that plot,

0:37:590:38:02

it could be wheelie, wheelie good!

0:38:020:38:05

Could you have a hybrid of retail and flats on your hands?

0:38:050:38:09

Time to find out who was ready to take the lead and win

0:38:090:38:12

the yellow jersey when this lot went under the hammer.

0:38:120:38:15

Lot 43.

0:38:170:38:19

We move now to Rainham, detached premises,

0:38:190:38:22

ground and first floor accommodation, the land to the rear.

0:38:220:38:27

What may I say? Start me at 145.

0:38:270:38:29

There's a lot of property there.

0:38:290:38:30

140? 140, then, I have, thank you.

0:38:300:38:33

At £140,000, the bid, 142 do I see?

0:38:330:38:37

142. At 145.

0:38:370:38:39

The auction took a while to get up to speed.

0:38:390:38:42

We rejoin at 165,000.

0:38:420:38:45

At 165, the bid, 168, do I see?

0:38:450:38:49

168.

0:38:490:38:50

At 170. 170 is bid.

0:38:500:38:54

172. 172.

0:38:540:38:57

At 175. 178.

0:38:570:38:59

At £175,000 the bid, anybody else can join in,

0:39:010:39:06

but directly in front of me at 175,000 for the first time,

0:39:060:39:11

175,000 for the second time,

0:39:110:39:14

175,000 for the third and final time.

0:39:140:39:19

At 175,000, are we all done?

0:39:190:39:22

Sold at 175,000.

0:39:220:39:24

The winning bid of 175,000 came from Steve,

0:39:240:39:28

who has actually appeared on the show before

0:39:280:39:31

with business partner Ian.

0:39:310:39:32

They bought a shop and offices which they then converted into a gym.

0:39:360:39:42

I wonder if this project will work out, too!

0:39:420:39:45

Steve, it's been a long time.

0:39:450:39:48

How many years since I last saw you?

0:39:480:39:49

Six or seven years, I reckon.

0:39:490:39:51

Tell me what you've been doing? You've been busy buying at auction,

0:39:510:39:54

-by the looks of things.

-We have. We got this last month,

0:39:540:39:56

completed yesterday. Plan was to buy this and get the next lot as well,

0:39:560:40:00

which is behind the working men's club.

0:40:000:40:02

Yeah, don't tell me, that lot came first and this lot came second.

0:40:020:40:05

No, it came second.

0:40:050:40:06

-That lot was second?

-Yeah.

0:40:060:40:07

We got this, paid a little more than we wanted to,

0:40:070:40:10

because we wanted to get that as well,

0:40:100:40:12

but that went for twice the asking price, or the guide price.

0:40:120:40:16

And it was actually bought by next door.

0:40:160:40:18

We did the numbers and I knew that we'd bought this top end

0:40:180:40:21

-of what we really wanted to pay.

-Yeah.

-Gambling for next door.

0:40:210:40:24

But, saying that, it still works out OK.

0:40:240:40:26

We should get a decent return on it, still,

0:40:260:40:28

so it's not as bad as it could have been.

0:40:280:40:29

So, Steve, tell me about that little pot of gold

0:40:290:40:32

at the end of the garden,

0:40:320:40:33

because I know there's a bit of a something, a plan of yours,

0:40:330:40:36

that you want to extend upon.

0:40:360:40:38

There is, there is. What it was, we bought this

0:40:380:40:39

knowing that we wanted to keep this as a shop and convert

0:40:390:40:42

-upstairs into a flat.

-Which is perfect.

0:40:420:40:44

Which is excellent at this end.

0:40:440:40:45

That works. At the end of the garden, there's a big,

0:40:450:40:48

derelict brick building which is actually bigger in footprint

0:40:480:40:51

than this shop itself, and we were hoping to get planning

0:40:510:40:55

to convert that into residential as well, fingers crossed.

0:40:550:40:58

But the problem is that the plot next door,

0:40:580:41:00

which was the other one we wanted to get,

0:41:000:41:02

had a right of way down the side of the property

0:41:020:41:05

which would have given us vehicular access to the back.

0:41:050:41:09

We haven't now got that,

0:41:090:41:10

and I've now got to speak to next door to ask really nicely

0:41:100:41:13

if they'll give it to us.

0:41:130:41:14

If you don't get permissions and it doesn't work your way,

0:41:140:41:17

do you have a plan B?

0:41:170:41:19

What, then, can happen?

0:41:190:41:21

Well, plan B, we'll still go for building in the back.

0:41:210:41:23

Not as many units.

0:41:230:41:25

Whereas I think we could probably get four one-bedders in the back,

0:41:250:41:28

I'll probably go for two one-bedroom apartments

0:41:280:41:31

and work on the assumption that we've got pedestrian access

0:41:310:41:35

in the back, build almost, like, two self-contained units

0:41:350:41:38

in the back garden.

0:41:380:41:39

So far, I've been talking to you and I'm hearing,

0:41:390:41:42

"A bit of a risk, a bit of a risk, bit of a risk."

0:41:420:41:45

You are really venturing into the unknown.

0:41:450:41:47

-We are.

-You've got no guarantees with this at all.

0:41:470:41:49

-Not really, no.

-This wasn't a safe bet for you.

0:41:490:41:51

-Not really, no.

-Why did you end up buying this?

0:41:510:41:54

I wanted to get next door!

0:41:540:41:56

Oh, well.

0:41:560:41:57

As someone once said, visions aren't changed, they are only refined.

0:41:570:42:02

Plans rarely stay the same and are scrapped or adjusted as needed,

0:42:020:42:06

which is a wise approach.

0:42:060:42:07

But was Steve wise to take such a risk,

0:42:070:42:09

even if it was a calculated one?

0:42:090:42:11

We've done the sums on it.

0:42:110:42:13

If we only got this, say we only got the shop

0:42:130:42:14

and we only converted upstairs and did nothing out the back,

0:42:140:42:17

return on investment, we'd still get about an 8% return.

0:42:170:42:20

So it's not too bad, so we can cope with that, that's fine.

0:42:200:42:22

So we're hoping, with the conversion for this,

0:42:220:42:25

just the shop and the flat, if we can do that for about 20, 25K,

0:42:250:42:29

we've done the whole lot for about 200.

0:42:290:42:31

-Wow.

-And that works for us.

0:42:310:42:33

That's not too bad. If we can get the back bit,

0:42:330:42:35

that's the Brucie bonus and that's what makes the difference.

0:42:350:42:38

That's the pot of gold.

0:42:380:42:39

That's where the rainbow ends!

0:42:390:42:40

-Exactly, yes.

-How long do you think it's going to be before you get

0:42:400:42:44

any answers on the back plot?

0:42:440:42:46

Well, the plan is, a bit of a risky plan...

0:42:460:42:49

Another risk?! Not another one!

0:42:490:42:51

We'll start this, we'll convert this.

0:42:510:42:53

Hopefully, by the time it's finished, we should get planning

0:42:530:42:57

approval for the flat upstairs. Once that's been done,

0:42:570:43:00

we'll then put in planning again to convert the back.

0:43:000:43:04

And then we'll see. But in the interim,

0:43:040:43:06

I've still got to speak to next door to see if I can get

0:43:060:43:09

vehicle access for the back.

0:43:090:43:11

So what sort of budget have you got to oversee all of this?

0:43:110:43:14

I reckon the back, we're probably looking at spending about 150.

0:43:140:43:18

And that's for three flats?

0:43:180:43:19

Probably 150 would be two or three flats, yes.

0:43:210:43:24

And this flat upstairs?

0:43:240:43:26

Upstairs and to convert the shop, about 25.

0:43:260:43:28

So you've got quite a busy few months ahead of you, really.

0:43:280:43:30

We want to do this in two months if we can.

0:43:300:43:32

We've already got guys put by ready to start it a week Monday.

0:43:320:43:35

-Wow!

-You're wasting money, otherwise.

0:43:350:43:37

If you buy something like this at auction,

0:43:370:43:39

until you can get someone actually living in the place,

0:43:390:43:42

it just sits there. You're paying interest on loans, etc,

0:43:420:43:45

so you want to get someone in as soon as you can,

0:43:450:43:47

so hopefully within two months, the shop, from today,

0:43:470:43:50

will be marketed from today, and the flat upstairs,

0:43:500:43:54

once we've done a little bit of jiggery-pokery up there,

0:43:540:43:56

hopefully that'll be on the market in about three or four weeks' time.

0:43:560:43:59

Steve, it's fantastic. You've got such a positive stance on this.

0:43:590:44:02

-Good luck with that.

-Thank you.

0:44:020:44:03

And I really can't wait to find out the outcome.

0:44:030:44:06

Nor can we!

0:44:060:44:07

Oh!

0:44:070:44:08

Yes, it's a real nailbiter, Lucy!

0:44:100:44:12

But, has Steve bitten off more than he can chew?

0:44:120:44:14

Join us later in the programme to find out.

0:44:140:44:17

We found out how one property's got on, but we're not done.

0:44:220:44:24

There's still two more to go.

0:44:240:44:26

Will we see beautiful bathrooms or catastrophic kitchens?

0:44:260:44:29

Yes, will they be happy campers

0:44:290:44:30

or whatever the opposite of happy campers is?!

0:44:300:44:33

Let's go back and find out.

0:44:330:44:34

Well, what's been happening in Derby?

0:44:370:44:39

It's time to find out. It was this four-bedroomed terraced house

0:44:390:44:43

that I visited earlier, with a guide price of 100 grand.

0:44:430:44:46

With the university in close proximity,

0:44:460:44:48

there was only one thing on my mind.

0:44:480:44:51

Ooh, I'm thinking...

0:44:510:44:52

student lets! Yeah!

0:44:520:44:54

But before the prospective buyer lined up some student tenants,

0:44:540:44:58

there were just a few minor issues to address.

0:44:580:45:00

As you can see, it is in a terrible, terrible state.

0:45:000:45:04

# You shake me up

0:45:040:45:07

# You shake me down... #

0:45:070:45:08

Now THAT'S what I call shaky!

0:45:080:45:11

It was Mahesh who was the successful bidder at auction, paying 108,000.

0:45:120:45:17

Together with friend Mayur, they plan to convert this house

0:45:170:45:20

into a five-bedroom student accommodation.

0:45:200:45:22

Mahesh is the money man and Mayur comes up with all the ideas

0:45:240:45:28

for design and layout, for free.

0:45:280:45:30

-Do you pay him?

-Er, no.

0:45:310:45:34

-We...

-What?!

0:45:340:45:37

What do you get out of this? Because you must put a lot of effort in.

0:45:370:45:40

I just enjoy seeing a property, especially something like this,

0:45:400:45:44

which needs everything doing to it, and then seeing the end result.

0:45:440:45:47

Aiming for a turnaround of two months

0:45:500:45:53

to catch the new student term,

0:45:530:45:54

and with a budget of no more than 25 grand,

0:45:540:45:57

we're back four months later to see if it's all gone to plan.

0:45:570:46:00

Well, what a difference!

0:46:090:46:11

Goodbye, dilapidation, hello, modernisation.

0:46:110:46:14

And by the looks of it, hello, student tenants.

0:46:180:46:22

We caught up with Mahesh to hear what's been going on.

0:46:220:46:25

There's been lots of work gone in.

0:46:250:46:27

We brought the whole house back to bricks.

0:46:270:46:31

Then we started with new plumbing, new electrics.

0:46:310:46:35

We helped put in new kitchen, we have done new flooring.

0:46:350:46:39

Each bedroom comes equipped with an en-suite shower room

0:46:400:46:43

and a new kitchen-cum-dining area

0:46:430:46:45

provides a communal space for get-togethers.

0:46:450:46:48

But reconfiguring the entire house turned out to be a bit of a headache.

0:46:480:46:52

One of the problems was to find out exactly what is the best way we can

0:46:530:46:59

create these en-suites and still retain a good shape of room.

0:46:590:47:04

We spent about two weeks putting... start work and taking it out

0:47:040:47:08

and doing it again and again.

0:47:080:47:10

But Mahesh thinks the effort was worth it.

0:47:100:47:13

Nowadays, students have got high standards as well,

0:47:130:47:17

and they like to live in a good space.

0:47:170:47:19

And I'm sure that once they start staying in such a place,

0:47:190:47:23

they probably become, well, better students as well.

0:47:230:47:27

Well, we can only hope.

0:47:270:47:29

To obtain a licence for a house of multiple occupation,

0:47:290:47:33

Mahesh has had to show that there is sufficient space and facilities

0:47:330:47:37

for the occupants to live comfortably and safely.

0:47:370:47:40

Fire doors, smoke alarms and emergency lighting

0:47:400:47:43

have been installed throughout the building.

0:47:430:47:46

We actually put in lots of modern touches.

0:47:460:47:50

We put in occupancy sensors in the communal areas so, when you walk in,

0:47:500:47:54

it just switches on, and also, it switches off,

0:47:540:47:57

so it's also environment friendly.

0:47:570:47:59

# Five, four, three, two, one... #

0:47:590:48:05

But that's not the whole story.

0:48:050:48:06

There's been a change of plan.

0:48:060:48:08

We were initially thinking of having five bedrooms.

0:48:100:48:14

But then we changed our minds and did an extension at the back,

0:48:140:48:18

so increased it to seven bedrooms.

0:48:180:48:21

As well as two new en-suite bedrooms,

0:48:210:48:24

the new extension also holds the kitchen-diner.

0:48:240:48:27

It's taken four months to get to this stage,

0:48:270:48:29

and Mahesh reckons another month will see the extra two bedrooms completed.

0:48:290:48:34

I'm guessing this modification has also impacted on the budget.

0:48:340:48:38

Our top budget initially was 25K,

0:48:390:48:42

but we ended up spending 52.

0:48:420:48:45

That's us up to speed with the house,

0:48:450:48:47

but the question on everyone's lips is,

0:48:470:48:48

whatever happened to Mayur?

0:48:480:48:52

Mayur is now off to India.

0:48:520:48:55

He is writing a book.

0:48:550:48:57

He's not here today because he's in preparation for that,

0:48:570:49:00

but he has played a significant role here in this building.

0:49:000:49:06

He's created all these bedrooms, designed them,

0:49:060:49:09

also designed the en-suites.

0:49:090:49:11

He's not here, not because I have not paid him,

0:49:110:49:14

we are still good friends and we have some other projects in mind

0:49:140:49:17

which we are going to follow on.

0:49:170:49:19

With this project almost completed,

0:49:200:49:22

we invited two property experts to visit the house

0:49:220:49:25

and give us their impressions,

0:49:250:49:27

starting with the auctioneer who sold the property.

0:49:270:49:29

First impressions are that it is extremely clean and tidy, well-equipped.

0:49:320:49:36

It's obviously been adapted for a specific purpose

0:49:360:49:39

and I think it fits that very well.

0:49:390:49:41

The selling point for me would be the fact that every bedroom

0:49:410:49:44

is a good size, they've all got an en-suite shower room and, of course,

0:49:440:49:48

the location. It's close to the city centre and the university.

0:49:480:49:51

Do their positive comments reflect on the valuations?

0:49:520:49:54

How much could each room earn in rental income?

0:49:540:49:57

On the rental market with students,

0:49:590:50:00

I would expect £90 per student per week.

0:50:000:50:04

I would say a serviced house like this,

0:50:040:50:06

so all the bills are included in the rent,

0:50:060:50:08

you'd probably get something in the order of £90 per room per week.

0:50:080:50:12

Based on 44 weeks full occupancy,

0:50:140:50:16

seven rooms bringing in £90 per week

0:50:160:50:19

means an annual income of over 27,000.

0:50:190:50:22

Given that Mahesh has spent a total of 160,000 on this project,

0:50:220:50:26

that would give him a whopping return of 17.3%.

0:50:260:50:29

I think the rental values are a little bit on the low side.

0:50:320:50:35

We are currently receiving £95 per room for five rooms

0:50:350:50:40

which we have rented out.

0:50:400:50:42

Next year, the price will be about £110 per room.

0:50:420:50:46

And if this house were to be put on the resale market,

0:50:460:50:49

how much could it achieve in its current state?

0:50:490:50:52

On the sales market, I would market this property for £200,000.

0:50:530:50:57

It would have an open market value as an investment property

0:50:570:51:01

in the region of £200,000.

0:51:010:51:02

£200,000 for this particular property in the given area,

0:51:020:51:08

it probably is correct.

0:51:080:51:09

But there are no examples of seven bedrooms in this area

0:51:090:51:13

in this standard, so I think that's something new.

0:51:130:51:17

But this property's not for sale anyway,

0:51:170:51:21

because we are there to generate some income

0:51:210:51:25

for the next number of years.

0:51:250:51:28

Mahesh has had a busy few months and he plans for some well-earned rest.

0:51:280:51:31

I'm actually going to follow Mayur.

0:51:340:51:37

He's gone to India for about six months, so, once this is all over,

0:51:370:51:41

I'm actually going to go and join him

0:51:410:51:43

and have a short break with him.

0:51:430:51:46

It's time to get back to Rainham in Kent where, earlier,

0:51:520:51:55

Lucy took a spin around this former bike shop, which had hidden depths.

0:51:550:51:59

It's spacious in here.

0:52:000:52:01

Look at the size of this.

0:52:010:52:04

And through this door...

0:52:040:52:05

..is another outbuilding!

0:52:060:52:08

Well, this space proved too much of a temptation for Steve

0:52:080:52:12

and his silent business partner, Ian, who paid £175,000 at auction,

0:52:120:52:16

a bit more than they would have liked.

0:52:160:52:18

The first of Steve's plans was to refurbish the shop

0:52:210:52:24

and convert upstairs into a one-bedroom flat.

0:52:240:52:27

But the real potential was in the back garden.

0:52:270:52:29

At the end of the garden, there's a big, derelict brick building

0:52:290:52:32

which is actually bigger in footprint than the shop itself,

0:52:320:52:35

and we was hoping to be able to get planning permission to convert that

0:52:350:52:39

into residential as well, fingers crossed.

0:52:390:52:42

Fingers and toes, because obtaining planning permission

0:52:420:52:46

would be no easy ride, particularly since right of access

0:52:460:52:49

to the back of the property belonged to next door.

0:52:490:52:52

Now I've got to speak to next door to ask really nicely

0:52:530:52:56

if they'll give it to us.

0:52:560:52:59

First things first,

0:52:590:53:00

Steve had to get the shop and the new flat

0:53:000:53:03

earning income as quickly as possible.

0:53:030:53:06

The partners set aside two months and £25,000

0:53:060:53:10

to update the shop and convert upstairs.

0:53:100:53:13

Four months later, we're back to see how phase one is getting on.

0:53:130:53:16

The tired upstairs accommodation

0:53:260:53:28

is now a bright and cheerful one-bedroom flat,

0:53:280:53:31

almost ready for a tenant to move into.

0:53:310:53:34

Steve's awaiting delivery of glass panels which will add

0:53:340:53:37

a classy finishing touch to the stairway.

0:53:370:53:40

It's been a simple conversion process at the front of the building

0:53:400:53:43

but trickier at the back.

0:53:430:53:45

This was probably the most challenging area in the flat conversion.

0:53:460:53:50

Main reason was because it was so tight for space.

0:53:500:53:52

We had before a little office area over here and in the back, here,

0:53:520:53:56

it was just a fireplace, an old toilet and a basin in there.

0:53:560:54:01

I had to make sure we utilised the space enough to get a kitchen in

0:54:010:54:04

which you could use, but also

0:54:040:54:06

that you could at least swing a cat in the bathroom area.

0:54:060:54:09

Get the shower and toilet in and it just about fits.

0:54:090:54:12

It was really, really tight but we think it's worked.

0:54:120:54:16

Downstairs, the shell of a retail unit is finished

0:54:160:54:19

but the new tenant is currently fitting out the shop to their requirements.

0:54:190:54:22

Once everything's done, Rainham will have a smart new tea shop.

0:54:250:54:29

The shop was in a bit of a mess when we moved in,

0:54:290:54:33

so we completely gutted it, re-stripped it, new electrics,

0:54:330:54:36

new plumbing, new kitchen, new bathroom.

0:54:360:54:38

Basically, we just gave it a white canvas.

0:54:380:54:40

Steve comes across as a pretty organised sort of chap,

0:54:420:54:45

but when it comes to planning permission, he doesn't half cut things fine.

0:54:450:54:49

Planning permission for the flat and development as a whole,

0:54:490:54:52

we've put in for, as we started the works.

0:54:520:54:54

We completed the works before we actually got planning permission,

0:54:540:54:58

so we got planning permission five days ago

0:54:580:55:00

and the works were completed about six days ago,

0:55:000:55:03

so it was done on risk, but fortunately it paid off.

0:55:030:55:06

Steve had a need for speed,

0:55:060:55:07

but we would never recommend you do work without having planning

0:55:070:55:11

permission granted. There's a danger the council could come back

0:55:110:55:14

and make you undo some or all of the works.

0:55:140:55:17

Despite Steve's fast-track approach,

0:55:170:55:19

his timescale slipped by about eight weeks.

0:55:190:55:22

But what about the budget?

0:55:220:55:24

We've gone a bit over budget, probably about 30,000, maybe 32,

0:55:240:55:28

which brings us to about 205, 207.

0:55:280:55:30

So far, so good for Steve and Ian,

0:55:310:55:33

but phase two of their grand plan could be the biggest challenge.

0:55:330:55:36

But, for now,

0:55:390:55:40

we've invited two local property experts to have a look around

0:55:400:55:43

at what's been done so far and tell us what they think.

0:55:430:55:46

Having had the opportunity to look around the property,

0:55:470:55:50

I think they've done a good job.

0:55:500:55:53

They've done exactly what they need to do.

0:55:530:55:55

Not too much and not too little.

0:55:550:55:57

The standard's right.

0:55:570:55:59

Actually perfect for the location and the type of property.

0:55:590:56:03

I actually like the property.

0:56:030:56:04

I think it's in a good location and I think they've done a good job

0:56:040:56:07

dividing the two units.

0:56:070:56:08

Steve thinks he just about got away with the compact kitchen upstairs,

0:56:090:56:13

but will the experts agree?

0:56:130:56:15

The layout of the first-floor flat is...

0:56:160:56:20

interesting. It has resulted in a very small kitchen.

0:56:200:56:23

The agents feel that demand is high in this area for this type

0:56:230:56:27

of accommodation, and, since Steve and Ian plan to rent out the flat,

0:56:270:56:31

they suggest a rental income of between £650 and £700 per calendar month.

0:56:310:56:37

And both agents agree that the shop should rent

0:56:370:56:40

for around £750 per calendar month.

0:56:400:56:42

They've already been signed now so we know exactly what

0:56:420:56:45

we're getting, so we are getting 700 for the shop

0:56:450:56:49

and we are getting 650 for the flat.

0:56:490:56:51

That combined monthly rent of £1,350

0:56:510:56:54

means that Steve and Ian are currently getting a return

0:56:540:56:58

on their £207,000 investment of just under 8%.

0:56:580:57:01

But, of course, that's all phase one.

0:57:010:57:04

How are plans for the rear development progressing?

0:57:040:57:06

We are hoping to get planning for four more one-bedroom flats.

0:57:070:57:11

When we bought the property,

0:57:110:57:12

we wanted access to the rear so we could give a parking space

0:57:120:57:15

for the flat we're standing in now and also for

0:57:150:57:18

a potential new development at the rear.

0:57:180:57:20

It all helps with planning if you can get parking spaces

0:57:200:57:23

but it's not a necessity. I've been round to see the working men's club.

0:57:230:57:27

They've been fantastic, by the way. They really have been helpful.

0:57:270:57:30

But, through conversations with them,

0:57:300:57:32

it was crystal clear that they didn't want us to have any access

0:57:320:57:35

on their land long-term whatsoever,

0:57:350:57:37

so we basically had to throw that away, that idea.

0:57:370:57:40

So we've now gone down the route of saying we'll go for flats,

0:57:400:57:43

and the flats won't have any car parking whatsoever.

0:57:430:57:45

And, at the end of the day, not everyone's got a car.

0:57:450:57:47

So it doesn't really matter, to be honest.

0:57:470:57:49

And how long does he think the process could take?

0:57:490:57:52

Fingers crossed, if you come back in a year's time, we've got planning

0:57:520:57:55

out the back and we've started the development

0:57:550:57:57

and hopefully finished it by then as well,

0:57:570:57:59

you'll see a plot that's got four flats and one shop,

0:57:590:58:02

hopefully all rented out.

0:58:020:58:05

Well, all over the UK pretty much all year,

0:58:070:58:10

there are property auctions going on.

0:58:100:58:12

Yes, that's right, that's why we always try and catch the action

0:58:120:58:14

-wherever we go.

-Yeah, so join us next time here

0:58:140:58:16

-on Homes Under The Hammer.

-Goodbye.

0:58:160:58:18

A super dad helps his daughter out buying and transforming a maisonette in Ewell for her to live in, and in Derby two friends hope to create smart accommodation for seven students. In Rainham in Kent, a developer has ambitious plans to smarten up a shop and create a flat above it. But will he also get permission to redevelop land at the back into more homes?


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