0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:04Many people like the thought
0:00:04 > 0:00:07of having a nice large property portfolio -
0:00:07 > 0:00:09but it doesn't have to be as grand as it sounds.
0:00:09 > 0:00:12No, for a relatively small amount of money you can get started
0:00:12 > 0:00:17and get that all-important foot on the property development ladder,
0:00:17 > 0:00:19and one good place to get yourself a bargain
0:00:19 > 0:00:21is down at your local property auction.
0:00:47 > 0:00:50Because of the variety of property available,
0:00:50 > 0:00:53the auction house can be the ideal place
0:00:53 > 0:00:55if you are looking to get value for money -
0:00:55 > 0:00:58that's if you're trying to make a living out of it, that is.
0:00:58 > 0:01:02Yes. But if you get your finances sorted and do your research,
0:01:02 > 0:01:05then there is no reason why it can't be a success.
0:01:05 > 0:01:07So here's what inspired the buyers on today's show.
0:01:09 > 0:01:12We return to a plot of land in the Welsh countryside
0:01:12 > 0:01:16I first saw in 2014 which had a slight problem -
0:01:16 > 0:01:18it doesn't have any planning permission.
0:01:19 > 0:01:22While at this house in the West Midlands,
0:01:22 > 0:01:24I'm finding planning permission
0:01:24 > 0:01:25to be as easy as...
0:01:25 > 0:01:28One, two, three.
0:01:28 > 0:01:32I don't think Lucy will find planning is quite as straightforward
0:01:32 > 0:01:36at this former takeaway in Kent, because...
0:01:36 > 0:01:39This property is Grade II listed.
0:01:40 > 0:01:41With you the first time.
0:01:41 > 0:01:43All these properties have been sold at auction,
0:01:43 > 0:01:45and we'll find out who bought them
0:01:45 > 0:01:47and what they paid when they went under the hammer.
0:01:47 > 0:01:49All done.
0:01:52 > 0:01:56Back in 2014, I was in the Welsh valley of Ebbw Vale
0:01:56 > 0:01:59where I saw a plot that had a lot of potential
0:01:59 > 0:02:02and could teach you a few lessons along the way,
0:02:02 > 0:02:06even if you knew your ABCs when it came to property.
0:02:06 > 0:02:12Well, the auction lot I am here to see is very interesting indeed
0:02:12 > 0:02:15and yet it doesn't have a single brick.
0:02:15 > 0:02:17Well, that's not strictly true -
0:02:17 > 0:02:19I suppose it has the wall around it,
0:02:19 > 0:02:21but apart from that, what we're looking at is this.
0:02:21 > 0:02:26It's the site of a former primary school which has since relocated.
0:02:26 > 0:02:32Let's go and see. So, school was out and a potential development was in,
0:02:32 > 0:02:35on an acre site with a guide price of 45 grand,
0:02:35 > 0:02:39which means a square metre of this plot would cost -
0:02:39 > 0:02:40come on class, how much?
0:02:40 > 0:02:43That's right. Around 11 quid.
0:02:43 > 0:02:47Top marks! The plot had a lot going for it -
0:02:47 > 0:02:49flat site, stunning views of the Welsh valleys -
0:02:49 > 0:02:53in other words, a developer's playground.
0:02:53 > 0:02:57Apart from...the fact that currently,
0:02:57 > 0:02:59it doesn't have any planning permission.
0:02:59 > 0:03:02So, right now, it could just be this.
0:03:03 > 0:03:05# If this is it
0:03:05 > 0:03:08# All we have
0:03:08 > 0:03:13# I'll know I've done all I can... #
0:03:15 > 0:03:17It wasn't as bad as it sounds.
0:03:17 > 0:03:20Plans for land that has been built on previously
0:03:20 > 0:03:22are generally looked at favourably -
0:03:22 > 0:03:26so there was a decent chance that plans in one form or another
0:03:26 > 0:03:28would be granted permission.
0:03:28 > 0:03:32But that permission came with a sting in its tail.
0:03:32 > 0:03:34It's definitely in an area that can be developed for housing,
0:03:34 > 0:03:35so that is good news.
0:03:35 > 0:03:38There is a demand for the right kind of housing in this area.
0:03:38 > 0:03:40So again, that's good news.
0:03:40 > 0:03:42You'd probably get support from the local council and planners,
0:03:42 > 0:03:45and that is also good news. It's all looking pretty good,
0:03:45 > 0:03:47all pretty positive - but as usual, there is a bit of a "but".
0:03:47 > 0:03:52The "but" is that, in the contract, the exchange of contracts,
0:03:52 > 0:03:54the legal pack, it talks about an overage clause.
0:03:54 > 0:04:00What that means is that any uplift in the value of the land
0:04:00 > 0:04:03and as a result of getting planning permission,
0:04:03 > 0:04:07well, the vendor, in this case, the council, gets money back.
0:04:07 > 0:04:11The overage clause in this case is 50%.
0:04:11 > 0:04:14So 50% of any uplift in the value of land.
0:04:14 > 0:04:18Definitely something to factor into your calculations.
0:04:18 > 0:04:20# It's 50-50
0:04:20 > 0:04:24# I'm 50-50... #
0:04:24 > 0:04:27Say, hypothetically, you bought the land for 50,000
0:04:27 > 0:04:29and you were able to get planning permission granted
0:04:29 > 0:04:33which raised the value of the plot to 150 grand,
0:04:33 > 0:04:35that is an uplift of 100,000,
0:04:35 > 0:04:41of which you would need to repay the council 50%, in this case, 50 grand.
0:04:41 > 0:04:44Then again, a plot of this size could easily accommodate
0:04:44 > 0:04:4810 to 15 new-build houses, so the question was,
0:04:48 > 0:04:51would the numbers add up when it went under the hammer?
0:04:54 > 0:04:57That then brings us on to lot number 15.
0:04:57 > 0:05:00Previously had a guide of £25,000 plus.
0:05:00 > 0:05:02Now that's been increased.
0:05:02 > 0:05:05We're suggesting a guide of 45 plus on that now.
0:05:05 > 0:05:07Start me somewhere, anywhere you like,
0:05:07 > 0:05:10you can either start me at 45,000 or the old guide of 25.
0:05:10 > 0:05:1225, I'm looking for.
0:05:12 > 0:05:14Make it 20 if you want, just to get it going.
0:05:14 > 0:05:16Thank you very much, I've got you at 20. At 20,000 there.
0:05:16 > 0:05:18At 20 standing, at 20,000.
0:05:18 > 0:05:19Now 21, can I see?
0:05:19 > 0:05:21After some reluctance,
0:05:21 > 0:05:26bids exceed the original and revised guide prices to where we rejoin
0:05:26 > 0:05:29with the auctioneer looking for a £65,000 bid.
0:05:29 > 0:05:3365, 66, 67,
0:05:33 > 0:05:3568, 69 and 70.
0:05:35 > 0:05:3871, 72? 72, no.
0:05:38 > 0:05:40At £71,000.
0:05:40 > 0:05:43With you at 71. 72, new bidder.
0:05:43 > 0:05:4672, 73, 74, 74 standing.
0:05:46 > 0:05:4975, 76, no.
0:05:49 > 0:05:53At £75,000, then, with you for the first time.
0:05:53 > 0:05:55Second time. Shout if I can't see you.
0:05:55 > 0:05:59Third and last time at £75,000.
0:05:59 > 0:06:01Yours, number 25, thank you very much.
0:06:01 > 0:06:04We'll have somebody down with you shortly.
0:06:04 > 0:06:09So, the former school plot went for 75 grand to Darren,
0:06:09 > 0:06:11who is the MD of a building company.
0:06:11 > 0:06:13I wanted to find out what he had planned
0:06:13 > 0:06:16for this plot with no planning permission.
0:06:17 > 0:06:18Why did you want to buy it?
0:06:18 > 0:06:20The purpose of purchasing the land
0:06:20 > 0:06:22was to develop it into social housing.
0:06:22 > 0:06:24- Oh, right. - We are a construction company,
0:06:24 > 0:06:26so we want to do the build
0:06:26 > 0:06:29and then sell the lot on to a social landlord.
0:06:29 > 0:06:32Why straight into social housing? Why not other types of housing?
0:06:32 > 0:06:35It is to do more with the location, the affordability.
0:06:35 > 0:06:39Properties in this area will only sustain a certain value -
0:06:39 > 0:06:41and from our point of view, in terms of risk profile,
0:06:41 > 0:06:44while we have the risk of purchasing the land at auction,
0:06:44 > 0:06:45it gives us a surety of our outcome.
0:06:45 > 0:06:47So tell me exactly how it works, then.
0:06:47 > 0:06:49You have approached somebody already
0:06:49 > 0:06:51and said, "Look, this is the land we've got now."
0:06:51 > 0:06:53Tell me about the process.
0:06:53 > 0:06:55It's to do with the intelligence of the area.
0:06:55 > 0:06:56We're a local contractor,
0:06:56 > 0:06:58so we approach the various bodies in the area
0:06:58 > 0:07:00and ask what sort of properties they're looking for,
0:07:00 > 0:07:02numbers of properties, areas.
0:07:02 > 0:07:05So we've done quite a lot of research in the background.
0:07:05 > 0:07:07So then we took that to one or two housing associations,
0:07:07 > 0:07:10got an expression of interest - so the risk still stays with us,
0:07:10 > 0:07:12but when we went to auction we were bidding
0:07:12 > 0:07:13with a degree of confidence
0:07:13 > 0:07:15that we knew we had an interested party at the end.
0:07:15 > 0:07:20The plans that had them interested were for 14 two- and three-bedroom
0:07:20 > 0:07:21semidetached properties,
0:07:21 > 0:07:26surrounded by the old retaining school wall to create a secure,
0:07:26 > 0:07:29almost gated development.
0:07:29 > 0:07:32And although it did not have huge profit potential,
0:07:32 > 0:07:34it was invaluable to the local area.
0:07:34 > 0:07:41A typical four-person, three-bedroom house is about 120,000 in this area.
0:07:41 > 0:07:44The money is not huge in terms of the investment for the land
0:07:44 > 0:07:46or, indeed, the build costs.
0:07:46 > 0:07:49It is about £1 million all in.
0:07:49 > 0:07:50And what's the end value?
0:07:50 > 0:07:54The end build-out value will be closer to 1.6 million.
0:07:54 > 0:07:57- OK.- Obviously that will be retained by the housing association,
0:07:57 > 0:08:00they will sell some on privately and hold some,
0:08:00 > 0:08:02but effectively, they are putting the cash in
0:08:02 > 0:08:04for the build, so that's their benefit.
0:08:04 > 0:08:06We get a modest construction profit,
0:08:06 > 0:08:08we get a small profit on the land sale to cover our fees
0:08:08 > 0:08:12and the time that we invest in the land development appraisals,
0:08:12 > 0:08:15and then they get the retained value long-term.
0:08:15 > 0:08:17Right. It sounds like a win-win all round.
0:08:17 > 0:08:20It is a good formula but you need to have the wherewithal and knowledge
0:08:20 > 0:08:22and experience to do it, really.
0:08:22 > 0:08:24And it will also generate some good employment opportunities,
0:08:24 > 0:08:26which is part of the deal you would strike up
0:08:26 > 0:08:29with the housing association, that we employ locally,
0:08:29 > 0:08:31and obviously get some apprentices training on the site, as well.
0:08:31 > 0:08:34Fantastic. So are you looking forward to doing this?
0:08:34 > 0:08:39Yes, it's a really exciting project and it's really needed in the area.
0:08:39 > 0:08:41Wherewithal, knowledge and experience
0:08:41 > 0:08:42would only get you so far -
0:08:42 > 0:08:46but before they could get started, Darren and his company
0:08:46 > 0:08:49would have to get that all-important planning consent.
0:08:49 > 0:08:54We returned almost two years later to see if they had.
0:08:54 > 0:08:58# So please say you'll meet me
0:08:58 > 0:09:00# Meet me halfway... #
0:09:03 > 0:09:06A year after Darren had hoped to have finished building,
0:09:06 > 0:09:09the housing project was still a work in progress.
0:09:09 > 0:09:12One reason being, planning took a year to come through,
0:09:12 > 0:09:16and when it did, Darren had to address the overage clause.
0:09:18 > 0:09:21We had the land valued by an independent estate agent
0:09:21 > 0:09:23and they valued the site at about 100,000.
0:09:23 > 0:09:25When the local authority valued it,
0:09:25 > 0:09:28it came back as double, so they used the district valuer,
0:09:28 > 0:09:30who works for the Welsh Government.
0:09:30 > 0:09:31That gave us a problem of £100,000
0:09:31 > 0:09:33where the local authority were saying
0:09:33 > 0:09:35the land was worth 200,000,
0:09:35 > 0:09:38and both ours and our respectful client were saying 100.
0:09:38 > 0:09:41We have had to take that to the RICS,
0:09:41 > 0:09:43the Royal Institute of Chartered Surveyors.
0:09:43 > 0:09:45They are now determining who is correct.
0:09:45 > 0:09:48We're still awaiting that decision,
0:09:48 > 0:09:50but what we had to do to get the scheme to progress
0:09:50 > 0:09:53was we had to pay the money to the local authority
0:09:53 > 0:09:56so they would remove the covenant on the land.
0:09:56 > 0:09:58So, currently there is a significant sum
0:09:58 > 0:10:01deposited with the local authority.
0:10:01 > 0:10:02If we win the argument,
0:10:02 > 0:10:04the money will come back to us as the contractor.
0:10:04 > 0:10:08If the authority win the argument, the money stays with them.
0:10:08 > 0:10:12It is a very punitive clause within the contract.
0:10:12 > 0:10:15For other potential would-be developers
0:10:15 > 0:10:16looking at this type of deal,
0:10:16 > 0:10:19it is something they really need to take very seriously
0:10:19 > 0:10:20and take a lot of advice on.
0:10:20 > 0:10:24With £100,000 of the budget in limbo,
0:10:24 > 0:10:27there were further costly complications.
0:10:28 > 0:10:31We had assumed that the wall foundation was a lot lower
0:10:31 > 0:10:34than it actually was, so when we did the reduced level dig
0:10:34 > 0:10:36to get to the foundations for the flats,
0:10:36 > 0:10:39we realised there was a problem with the retaining structure
0:10:39 > 0:10:41which, if it was a small wall,
0:10:41 > 0:10:44wouldn't be such an issue but it's retaining a mountain!
0:10:44 > 0:10:48So we had to underpin the wall and we put just shy of 3,000 blocks,
0:10:48 > 0:10:50concrete blocks, into the wall to stabilise it
0:10:50 > 0:10:51and allow us to build the flats.
0:10:51 > 0:10:54That was a bit of an unknown,
0:10:54 > 0:10:57it has cost about £15,000 to deal with that problem,
0:10:57 > 0:11:00but thankfully it's an engineering solution
0:11:00 > 0:11:01that has resolved the problem
0:11:01 > 0:11:04and we've managed to move on with the rest of the scheme.
0:11:04 > 0:11:07When we last saw Darren, he was £1 million
0:11:07 > 0:11:10into his £1.7 million contract with the client,
0:11:10 > 0:11:14and the housing scheme now contained a total of 15 units
0:11:14 > 0:11:16which was made up of an adapted bungalow
0:11:16 > 0:11:20and a mixture of one-bedroom flats and two and three-bedroom semis.
0:11:22 > 0:11:24Since the project was now running smoothly,
0:11:24 > 0:11:27Darren had ideas about a change of career.
0:11:28 > 0:11:31At the entrance to the site, we have to move a telegraph pole,
0:11:31 > 0:11:33with one telephone line on it.
0:11:33 > 0:11:35We're only moving the pole about
0:11:35 > 0:11:38six metres up the road and reinstating it.
0:11:38 > 0:11:42Within our costings, we'd allowed about £1,000 to do that,
0:11:42 > 0:11:46but it has to be done by the company that own the pole.
0:11:46 > 0:11:49We've now been presented with a bill for £14,500,
0:11:49 > 0:11:51so I'm thinking of moving out of house-building
0:11:51 > 0:11:54and becoming a full-time telegraph pole mover!
0:11:54 > 0:11:57A change of career must have been very tempting.
0:11:57 > 0:11:59What a site for throwing up unexpected
0:11:59 > 0:12:01and very expensive issues.
0:12:01 > 0:12:05Find out later in the programme if there were any more surprises
0:12:05 > 0:12:08for Darren when we come back five months on.
0:12:14 > 0:12:18The West Midlands, now, and the town of Bloxwich.
0:12:18 > 0:12:21Bloxwich's neighbouring town is Walsall.
0:12:21 > 0:12:24Traditionally, there has been a rivalry between them
0:12:24 > 0:12:26dating back to the English Civil War.
0:12:26 > 0:12:31Bloxwich was Royalist, Walsall, Parliamentarian.
0:12:31 > 0:12:34The modern day has seen some investment in the town centre,
0:12:34 > 0:12:37and it has good transport links to Birmingham.
0:12:38 > 0:12:41So, I'm about a mile away from the town centre,
0:12:41 > 0:12:44and the lot I'm here to see has got...
0:12:44 > 0:12:46off-street parking.
0:12:46 > 0:12:49Yes, it's not huge, it's not in great condition,
0:12:49 > 0:12:52but it's off-street parking, which is always a bonus.
0:12:52 > 0:12:56The house itself is also set back off the road quite a distance, too,
0:12:56 > 0:12:59and you've got a shared drive.
0:12:59 > 0:13:01Right, the house is semidetached,
0:13:01 > 0:13:06it's got three bedrooms and a guide price of £75,000 plus.
0:13:06 > 0:13:09I'm excited about this one. Let's hope the inside doesn't let me down.
0:13:09 > 0:13:11Let's take a look.
0:13:11 > 0:13:14- # Don't let me down - Don't let me down
0:13:14 > 0:13:16# Don't let me down now
0:13:16 > 0:13:20# Don't let me down Don't let me down now
0:13:20 > 0:13:23# Don't let me down... #
0:13:23 > 0:13:25OK.
0:13:26 > 0:13:29OK, on the odd occasion, when you come into a property,
0:13:29 > 0:13:34it's not what you see that hits you first, it's what you smell.
0:13:34 > 0:13:39And I can smell damp, I can smell... mildew and mould,
0:13:39 > 0:13:41that's the first thing that hits you.
0:13:41 > 0:13:44Anyway, there are the stairs going up to the bedrooms,
0:13:44 > 0:13:46you've got a decent-sized hallway.
0:13:46 > 0:13:50Across the hallway, into the first reception room,
0:13:50 > 0:13:52and I can see there's a radiator here
0:13:52 > 0:13:55so there's obviously some central heating in here.
0:13:55 > 0:13:59An old-fashioned fireplace. That, if you like a fireplace,
0:13:59 > 0:14:02you might want to tidy it up and keep it.
0:14:02 > 0:14:03For me, I'd get rid of it.
0:14:03 > 0:14:08But there's loads more signs over in the bay window
0:14:08 > 0:14:11of the mould and the damp.
0:14:11 > 0:14:15It just feels like this place has had no airflow for some time.
0:14:17 > 0:14:20With so much mould, it needs a specialist to sort it out.
0:14:20 > 0:14:22# I can't get rid of you... #
0:14:22 > 0:14:25You really don't want this stuff in your house.
0:14:25 > 0:14:29Mould infiltrates and damages the fabric of the building
0:14:29 > 0:14:31and it can also be responsible
0:14:31 > 0:14:34for sinus, skin and breathing conditions.
0:14:34 > 0:14:38# I don't even know who is growing on who
0:14:38 > 0:14:39# Yeah, yeah... #
0:14:39 > 0:14:41And it's not just at the front of the house.
0:14:41 > 0:14:44# Cos everywhere I go you're there... #
0:14:44 > 0:14:46It's in the back reception and small kitchen,
0:14:46 > 0:14:48which needs a complete overhaul.
0:14:48 > 0:14:51So maybe it's a good idea to take out that wall and open it
0:14:51 > 0:14:54out into the second reception room,
0:14:54 > 0:14:57checking if it's a weight-bearing wall, of course.
0:14:57 > 0:15:01# I want to touch you but I'm afraid of the consequences
0:15:01 > 0:15:04# I want to banish you from whence you came
0:15:04 > 0:15:06# But you're part of me now
0:15:06 > 0:15:09# And I've only got myself to blame. #
0:15:09 > 0:15:12Upstairs, that moisture has affected the walls and the ceilings,
0:15:12 > 0:15:15in the bathroom and the bedrooms, too.
0:15:18 > 0:15:20OK, in this bedroom...
0:15:20 > 0:15:23Now, I'd like to tell you something different,
0:15:23 > 0:15:26but it's the same as most of the rooms in this house.
0:15:26 > 0:15:30There's cobwebs everywhere, it needs redecorating.
0:15:30 > 0:15:33It's got a fireplace, as well, which you'd want to take out.
0:15:33 > 0:15:35There's no flooring in, either.
0:15:35 > 0:15:38But there is one thing I'd like to show you.
0:15:40 > 0:15:42Now, take a look at that ceiling.
0:15:42 > 0:15:46Now, that's a shade you won't find on any colour chart.
0:15:46 > 0:15:49It's certainly not pure, brilliant white,
0:15:49 > 0:15:52but I'm not waving the white flag at this property just yet.
0:15:52 > 0:15:57I'm heading outside for a bit of fresh air and a fresh perspective.
0:15:57 > 0:15:59So, out into the back garden.
0:15:59 > 0:16:01Now, there's a bit of mess out here.
0:16:01 > 0:16:04Before I talk about what I've got in here,
0:16:04 > 0:16:06look at the size of this back garden.
0:16:06 > 0:16:08It goes back some distance.
0:16:08 > 0:16:11Yes, it's on split levels, but you've got loads of space out here.
0:16:11 > 0:16:13You've got an outbuilding, as well.
0:16:13 > 0:16:15But the interesting thing is...
0:16:15 > 0:16:18all this space here.
0:16:18 > 0:16:23You can come out three metres within permitted development
0:16:23 > 0:16:25without planning permission.
0:16:25 > 0:16:31You can also go a further one, two, three metres to six metres
0:16:31 > 0:16:34within permitted development.
0:16:34 > 0:16:38But you would have to undergo neighbourhood consultation
0:16:38 > 0:16:43before that happens. What I'm trying to say is - it's huge out here.
0:16:43 > 0:16:45There's loads of potential.
0:16:45 > 0:16:49# Do you see what I see? #
0:16:51 > 0:16:53Well, let's see if an agent from the auction house
0:16:53 > 0:16:55who marketed this property
0:16:55 > 0:16:58agrees with my plans for a large extension here.
0:16:59 > 0:17:01Once one starts to extend,
0:17:01 > 0:17:03if you're not careful,
0:17:03 > 0:17:07you can push the potential value up
0:17:07 > 0:17:10beyond the ceiling for the area.
0:17:10 > 0:17:12If you're going to extend it here,
0:17:12 > 0:17:16I would probably be inclined just to sort of take it out
0:17:16 > 0:17:20at six to eight feet out the back, to make a larger kitchen.
0:17:20 > 0:17:23And a larger sort of rear reception room.
0:17:23 > 0:17:26I think any further than that,
0:17:26 > 0:17:32you're starting to become expensive, and not what people really want,
0:17:32 > 0:17:35because they end up living in a tunnel.
0:17:35 > 0:17:37You could offset that feeling of a tunnel
0:17:37 > 0:17:39by including skylight windows,
0:17:39 > 0:17:42but that would add thousands to the build cost.
0:17:42 > 0:17:44Despite the sheer amount of work needed here,
0:17:44 > 0:17:46is there light at the end of the tunnel
0:17:46 > 0:17:51regarding resale value for this house guided at £75,000 plus?
0:17:51 > 0:17:56I would imagine that your price would realise, currently,
0:17:56 > 0:17:59in the region of £175,000 to £180,000.
0:18:01 > 0:18:02Right.
0:18:04 > 0:18:08This is a good-sized property, but it needs an awful lot of work doing.
0:18:08 > 0:18:11The kitchen's a bit on the small side, you need a new bathroom.
0:18:11 > 0:18:15Basically, you've got to start again and modernise this place up.
0:18:15 > 0:18:19But potentially it could be a lovely family home.
0:18:19 > 0:18:21Let's see who went for it when it went under the hammer.
0:18:21 > 0:18:25A three-bedroom freehold semidetached house.
0:18:25 > 0:18:26Guide's increased to 75.
0:18:26 > 0:18:27We will go past that.
0:18:27 > 0:18:29Shall we start there?
0:18:29 > 0:18:31For 75,000, and thank you.
0:18:31 > 0:18:3375,000, my bid is at 80 now.
0:18:33 > 0:18:3580, thank you. 85?
0:18:35 > 0:18:3685 from you, sir.
0:18:36 > 0:18:39Thank you, 85. And 90?
0:18:39 > 0:18:4090, is it, sir?
0:18:40 > 0:18:42It may have been towards the end of the day,
0:18:42 > 0:18:46but there was still a few interested bidders for this lot.
0:18:46 > 0:18:48We rejoin at 130 grand.
0:18:48 > 0:18:51130. 135? 140.
0:18:51 > 0:18:56No. You've been a great bidder, sir, but it's now with you.
0:18:56 > 0:18:57Can I just see that number?
0:18:57 > 0:18:59Number 446.
0:18:59 > 0:19:01Make no mistake.
0:19:01 > 0:19:02Are we all done?
0:19:02 > 0:19:06One, two, three.
0:19:06 > 0:19:08446, that property is now yours, sir.
0:19:08 > 0:19:11Actually, the house doesn't belong to the bidder.
0:19:11 > 0:19:15It was bought by son, Pinder, for 135 grand.
0:19:15 > 0:19:19Pinder is a business analyst, and he's taken his first steps
0:19:19 > 0:19:23into the property developing world - with help from his dad, of course.
0:19:23 > 0:19:25Rather than meet inside the mouldy house,
0:19:25 > 0:19:27we headed outside for some fresh air
0:19:27 > 0:19:29and some sunshine in the back garden,
0:19:29 > 0:19:32to have a chat about his plans for this property.
0:19:32 > 0:19:34- Pinder.- Dion, nice to meet you.
0:19:34 > 0:19:36- Nice to meet you too, young man. - Nice to see you.- Congratulations.
0:19:36 > 0:19:39- Thank you.- What was it about this particular house
0:19:39 > 0:19:42that sucked you into buying it?
0:19:42 > 0:19:45This house is in such a good location -
0:19:45 > 0:19:47and also, the school, as well.
0:19:47 > 0:19:50I mean, that would be a pull for a lot of families and stuff, so...
0:19:50 > 0:19:53that's why we thought this could be quite a lucrative adventure for us.
0:19:53 > 0:19:56Do you know this area? Are you from this area?
0:19:56 > 0:19:58- We're actually from Coventry. - Are you really?
0:19:58 > 0:20:00Massive fans of yours, Dion. Always have been...
0:20:00 > 0:20:02Listen, I knew I had one somewhere.
0:20:02 > 0:20:04Yeah, well... I think there's quite a few of us.
0:20:04 > 0:20:07- More than you'd expect.- Oh, good.
0:20:07 > 0:20:14# Reaching into the deepest shade of sky blue... #
0:20:14 > 0:20:16As a Sky Blues fan from Coventry...
0:20:16 > 0:20:18# Sky blue... #
0:20:18 > 0:20:21..Pinder will have about an hour's commute there and back
0:20:21 > 0:20:24when he's working on the house - but he won't be doing it alone.
0:20:26 > 0:20:31# So many miles away from home. #
0:20:31 > 0:20:34His dad Ragbir will be project-managing,
0:20:34 > 0:20:37and together, they've got big plans.
0:20:37 > 0:20:40We're looking to do a rear extension, five metres,
0:20:40 > 0:20:44- and really...- Wow.- ..make a big, like kitchen-diner sort of effect.
0:20:44 > 0:20:45- Yeah, yeah...- Yeah.
0:20:45 > 0:20:48The plan's granted that we're able to also...
0:20:48 > 0:20:50The brick garage here,
0:20:50 > 0:20:52we're looking to make that into, into a flat, there,
0:20:52 > 0:20:57- so a self-contained...- Really? - ..kitchen and en suite, as well.
0:20:57 > 0:21:00- Wow.- And furthermore, within the house we're also looking to do
0:21:00 > 0:21:03a loft conversion, as well. So it would be a four-bedroom...
0:21:03 > 0:21:05- Wow.- ..with a large extension...
0:21:05 > 0:21:06Extension, as well.
0:21:06 > 0:21:09Kitchen-diner and the flat, as well.
0:21:09 > 0:21:11Which is currently the brick garage.
0:21:11 > 0:21:13We're looking to maximise profit here, really.
0:21:13 > 0:21:15But what about the ceiling price in the area?
0:21:15 > 0:21:18- Have you checked that?- Yeah, we spoke to some local estate agents,
0:21:18 > 0:21:21and we've got some figures back on the plans that we want.
0:21:21 > 0:21:23But I'm a pretty optimistic guy, to be honest with you, Dion.
0:21:23 > 0:21:26Yeah, I mean, these are plans that we've got in place.
0:21:26 > 0:21:28- Yeah.- We've probably got B plans and C plans, as well.
0:21:28 > 0:21:31- OK, that's good. - If they don't come to fruition
0:21:31 > 0:21:34or if we want to change it, like you said,
0:21:34 > 0:21:36you talked about ceiling prices, as well,
0:21:36 > 0:21:39so they're all something that we had to take in to consider,
0:21:39 > 0:21:41but we probably will go ahead with plan A.
0:21:41 > 0:21:44How much is in the budget for plan A?
0:21:44 > 0:21:46What are you going to spend?
0:21:46 > 0:21:49We'd like to spend around 40,000.
0:21:49 > 0:21:52Hopefully we could get all the work done within that.
0:21:52 > 0:21:55- OK.- I know my dad's used tradespeople before...
0:21:55 > 0:21:59- OK.- ..and he normally gets a good price with them, so...
0:21:59 > 0:22:01That's a great thing.
0:22:01 > 0:22:02Pinder's dad Ragbir,
0:22:02 > 0:22:04who is going to be project-managing,
0:22:04 > 0:22:08has a lot of experience in building and has lots of useful contacts.
0:22:08 > 0:22:10We may bring some people from Coventry.
0:22:10 > 0:22:13He also knows people in Birmingham as well, which is close to Walsall,
0:22:13 > 0:22:16- which is pretty handy, as well. - Yeah. So he is well connected?
0:22:16 > 0:22:20Yeah, he's a pretty connected, clued-up guy, my dad...
0:22:20 > 0:22:22How long is all the work going to take?
0:22:22 > 0:22:25We're looking in the region of six months.
0:22:25 > 0:22:29Maybe a bit less. That's probably a bit of a conservative one, so yes,
0:22:29 > 0:22:31six months to do all the work,
0:22:31 > 0:22:33and hopefully we can get it back on the market
0:22:33 > 0:22:37and maybe look for a resale, or rental.
0:22:37 > 0:22:40There's nothing about this for a first venture that's worrying you?
0:22:40 > 0:22:42I know you've got your dad by your side, haven't you?
0:22:42 > 0:22:44- Yeah.- Which is handy, isn't it?
0:22:44 > 0:22:46Yeah. At the moment, nothing's worrying me.
0:22:46 > 0:22:49But we'll see, a couple of months down the line.
0:22:49 > 0:22:51- Could all change! - I might be ringing you, Dion.
0:22:51 > 0:22:53What do I do with this? What do I do with that?
0:22:53 > 0:22:58Exactly! So, is this the start of your property developing life?
0:22:58 > 0:23:00We'll see how this venture goes.
0:23:00 > 0:23:03Take one step at a time -
0:23:03 > 0:23:05but I would like to get into property,
0:23:05 > 0:23:10and it could be a career for me if I'm successful at it.
0:23:10 > 0:23:12- I wish you all the best. - Thank you very much, Dion.
0:23:12 > 0:23:14- Good luck.- Nice to meet you. - Thank you.
0:23:14 > 0:23:19I think this is a pretty big house to take on as a first project,
0:23:19 > 0:23:21but Pinder's got big ideas.
0:23:21 > 0:23:24Extension out the back here, self-contained building here.
0:23:24 > 0:23:28All I can say is, it's a good job he's got his experienced dad there
0:23:28 > 0:23:30by his side just to help him along.
0:23:30 > 0:23:32But has he taken on too much?
0:23:32 > 0:23:34Well, you can find on how he gets on later in the programme.
0:23:36 > 0:23:39Coming up, Lucy visits a former takeaway in Kent,
0:23:39 > 0:23:43but I don't think she can stomach the interior.
0:23:43 > 0:23:46I wouldn't fancy ordering my food here as it is at the moment.
0:23:47 > 0:23:50And find out if Pinder still has the hunger for property
0:23:50 > 0:23:52after his first renovation.
0:23:52 > 0:23:54Hopefully I'll be able to take on this experience
0:23:54 > 0:23:56and take it to another project.
0:23:59 > 0:24:04But first, back to a site I first visited in 2014.
0:24:04 > 0:24:08This plot of land in Ebbw Vale had once been home to a school.
0:24:08 > 0:24:11It had a rather nice retaining wall,
0:24:11 > 0:24:12and, at an acre in size,
0:24:12 > 0:24:16the 45-grand guide price was very appealing.
0:24:17 > 0:24:19Apart from the fact...
0:24:19 > 0:24:23currently, it doesn't have any planning permission.
0:24:23 > 0:24:27So right now... Well, it could just be this.
0:24:27 > 0:24:29There were definitely some pros and cons with this lot.
0:24:29 > 0:24:32As there had been a building here previously,
0:24:32 > 0:24:36getting planning permission was arguably quite likely -
0:24:36 > 0:24:38but the overage clause in the contract
0:24:38 > 0:24:41meant that if and when the planning permission was granted,
0:24:41 > 0:24:4350% of any increase in the value of the land
0:24:43 > 0:24:46would need to be repaid to the seller,
0:24:46 > 0:24:49which was, in this case, the local council.
0:24:49 > 0:24:52Weighing up the options was successful bidder Darren,
0:24:52 > 0:24:57who was a local building contractor and paid £75,000 for the site.
0:24:59 > 0:25:01Why did you want to buy it?
0:25:01 > 0:25:04The purpose of purchasing the land was to develop into social housing.
0:25:04 > 0:25:07- Oh, right.- We are a construction company,
0:25:07 > 0:25:08so we want to do the build
0:25:08 > 0:25:11and then sell the lot on to a social landlord.
0:25:11 > 0:25:14And we'll also generate some good employment opportunities,
0:25:14 > 0:25:16which is part of the deal that you would strike up
0:25:16 > 0:25:17with the housing association -
0:25:17 > 0:25:20that we employ locally, and we'll obviously get some apprentices
0:25:20 > 0:25:22- training on the site, as well. - Oh, fantastic.
0:25:22 > 0:25:27Darren and his company had plans to build 14 two- and three-bed semis -
0:25:27 > 0:25:31and when we returned almost two years later, work was well underway.
0:25:34 > 0:25:36But it was a delay in the planning process
0:25:36 > 0:25:41that had seen work unable to start until a year into the project.
0:25:41 > 0:25:45Once the planning was granted, the overage clause had to be addressed.
0:25:46 > 0:25:49We had the land valued by an independent estate agent
0:25:49 > 0:25:52and they valued the site at about 100,000.
0:25:52 > 0:25:55When the local authority valued it, it came back as double.
0:25:55 > 0:25:58So they used the district valuer, works for the Welsh Government,
0:25:58 > 0:26:01that gave us a problem of 100,000
0:26:01 > 0:26:04where the local authority was saying the land was worth 200,000
0:26:04 > 0:26:07and both ours and our respectful client was saying 100.
0:26:07 > 0:26:09In order to get on with the work,
0:26:09 > 0:26:13Darren and his company lodged the money for the overage costs,
0:26:13 > 0:26:16with the final decision resting in the hands
0:26:16 > 0:26:19of the Royal Institute of Chartered Surveyors.
0:26:19 > 0:26:21The shells of the buildings were up,
0:26:21 > 0:26:23and Darren and his team were on track
0:26:23 > 0:26:25to complete the project in the next few months.
0:26:25 > 0:26:29So when we returned five months on, did they manage it?
0:26:39 > 0:26:43It's a far cry from the empty lot that was here to start.
0:26:43 > 0:26:45There's a fantastic little cul-de-sac
0:26:45 > 0:26:49nestling in the rolling hills of the Welsh Valleys.
0:26:49 > 0:26:52There are now 15 dwellings in total.
0:26:52 > 0:26:55For starters, there's four one-bedroom flats,
0:26:55 > 0:26:59ten semidetached two- and three-bedroom properties,
0:26:59 > 0:27:01each with a bathroom and shower room,
0:27:01 > 0:27:04making them ideal for family living.
0:27:05 > 0:27:08All the houses are designed to Welsh Government requirements.
0:27:08 > 0:27:11The rooms all feel nice and spacious.
0:27:11 > 0:27:16Going outside, there's even some private garden space at the rear.
0:27:16 > 0:27:19They've also been built to sustainable homes standards
0:27:19 > 0:27:22and have rainwater harvesting systems installed.
0:27:22 > 0:27:25And finally, property 15 is a bungalow
0:27:25 > 0:27:27designed with disabled access.
0:27:28 > 0:27:32The ceilings are structurally reinforced to support hoists
0:27:32 > 0:27:36and the large kitchen-diner has rise-and-fall units
0:27:36 > 0:27:37for wheelchair access.
0:27:37 > 0:27:40The bathroom has also been specially adapted,
0:27:40 > 0:27:42with hoists and a rise-and-fall bath.
0:27:44 > 0:27:47Darren and his team have created some cracking homes,
0:27:47 > 0:27:50built in 41 weeks after the planning permission was sorted -
0:27:50 > 0:27:54and now it's time for Darren to hand the reins over to his son, Cole,
0:27:54 > 0:27:58who will be responsible for the aftercare phase of the project.
0:27:58 > 0:28:01He'll be working closely with the housing association.
0:28:01 > 0:28:03We met up with both of them
0:28:03 > 0:28:06to find out what has been the biggest challenge on this project.
0:28:08 > 0:28:11The biggest challenge has been the weather.
0:28:11 > 0:28:14We're quite high up in the Welsh Valleys,
0:28:14 > 0:28:16so temperatures do get extremely low in this area,
0:28:16 > 0:28:18so working through the winter
0:28:18 > 0:28:20and finishing a project in the winter is not ideal.
0:28:20 > 0:28:22You wouldn't normally plan it that way.
0:28:22 > 0:28:25It was dictated to us from when we had planning permission
0:28:25 > 0:28:27to when we could start the sites.
0:28:27 > 0:28:29The construction, by and large, has gone quite well,
0:28:29 > 0:28:31so there's been no real issues there -
0:28:31 > 0:28:32but, at the end of the project,
0:28:32 > 0:28:34it's all the little things that you have to do,
0:28:34 > 0:28:36getting the various approvals, getting the sign-offs,
0:28:36 > 0:28:39getting the quality right, to get the project over the line.
0:28:39 > 0:28:42So, I think, probably the biggest challenge for us
0:28:42 > 0:28:46has been working through the winter and the wet and the cold months.
0:28:46 > 0:28:48If the Welsh weather has been the biggest issue,
0:28:48 > 0:28:52does that mean that the overage case was resolved?
0:28:52 > 0:28:54Well, the final chapter on the overage clause,
0:28:54 > 0:28:57it's been favourable on our behalf.
0:28:57 > 0:29:01The valuation that we sold the site for to our client has been verified
0:29:01 > 0:29:04by an independent surveyor,
0:29:04 > 0:29:07so it's actually set a bit of a benchmark case now.
0:29:07 > 0:29:11So, for us, the money that we had to deposit with the local authority
0:29:11 > 0:29:14to allow us to start the site will come back.
0:29:14 > 0:29:17'Between both parties now, we both think we've reached a fair deal.
0:29:17 > 0:29:19'It's in line with our costings,
0:29:19 > 0:29:21'which was the most important thing for us
0:29:21 > 0:29:23'as a commercial organisation.'
0:29:23 > 0:29:25Probably a bit disappointing for the local authority,
0:29:25 > 0:29:28but we'll all live and learn from it.
0:29:28 > 0:29:30Going forward, we all know the starting point
0:29:30 > 0:29:32for future developments.
0:29:32 > 0:29:33They got all the work done
0:29:33 > 0:29:36for just under the agreed contract value,
0:29:36 > 0:29:40with a client of 1.7 million, so they must be happy, too.
0:29:42 > 0:29:44I think the client's pretty pleased with the project...
0:29:44 > 0:29:47Cole now gets the problem, so, as the residents move in,
0:29:47 > 0:29:48we'll find out the truth.
0:29:48 > 0:29:51- I don't know what you think about that.- I think, ultimately,
0:29:51 > 0:29:55having had meetings with them recently to agree going forward
0:29:55 > 0:29:57the next 12 months of after-sales,
0:29:57 > 0:30:01they've definitely been impressed with our performance as a contractor
0:30:01 > 0:30:03and they've been extremely complimentary,
0:30:03 > 0:30:05and I guess ultimately the biggest marker
0:30:05 > 0:30:08that we can use to see if they're happy
0:30:08 > 0:30:12is the fact that they're looking at more projects with us in the future.
0:30:13 > 0:30:16With the client happy and residents due to move in shortly,
0:30:16 > 0:30:19let's see what two local estate agents thought of the new street,
0:30:19 > 0:30:23which cost just under £1.7 million to build,
0:30:23 > 0:30:27starting with the agent who saw this when it was just a plot.
0:30:30 > 0:30:33I'm impressed. What a difference.
0:30:33 > 0:30:35Absolutely fantastic.
0:30:35 > 0:30:38From when I came here first and just saw the yard.
0:30:38 > 0:30:40First impressions of the site
0:30:40 > 0:30:43is that it's produced to a very high standard.
0:30:43 > 0:30:45Unfortunately, it isn't the best of days,
0:30:45 > 0:30:47but the views from here are outstanding.
0:30:47 > 0:30:50If these properties were coming to the market with ourselves,
0:30:50 > 0:30:52which I just wish they were,
0:30:52 > 0:30:57I genuinely believe I would have a buyer on this very, very quickly.
0:30:57 > 0:31:00The conditions of the market haven't changed so much.
0:31:00 > 0:31:03And this is what they're looking for.
0:31:03 > 0:31:06This is exactly what they're looking for.
0:31:06 > 0:31:10Unfortunately for the agents these great houses won't be for sale,
0:31:10 > 0:31:13as they are owned by a local housing association,
0:31:13 > 0:31:16who'll be renting them out to people who need them most,
0:31:16 > 0:31:19at an affordable rate set by the Welsh Government.
0:31:19 > 0:31:22However, the agents did value the properties
0:31:22 > 0:31:25and thought in total they would be worth
0:31:25 > 0:31:29somewhere around the 1.5 and £1.6 million mark.
0:31:29 > 0:31:32So what do Darren and his son Cole think of the figures?
0:31:33 > 0:31:37I think the slightly higher value is more appropriate.
0:31:37 > 0:31:41It's more in line with what we are seeing locally,
0:31:41 > 0:31:45but equally, I think developments like this will help lift the values
0:31:45 > 0:31:46in the area. So progressively,
0:31:46 > 0:31:49as other people do similar work in the area now,
0:31:49 > 0:31:51it will help lift that band.
0:31:51 > 0:31:55The new housing scheme will have a positive impact on the area,
0:31:55 > 0:31:58but has there been a positive impact on the business?
0:31:59 > 0:32:01The positive things...
0:32:01 > 0:32:03It is our first turnkey development, from start.
0:32:03 > 0:32:06We bought the land, we led the design,
0:32:06 > 0:32:09we found our client and we built it out.
0:32:09 > 0:32:11So, to do a full, what we class as a turnkey development,
0:32:11 > 0:32:13that's a real positive aspect.
0:32:13 > 0:32:15And that's the way we want to go in the future.
0:32:18 > 0:32:23Off to Kent now, and Lucy is visiting a Sittingbourne suburb
0:32:23 > 0:32:25with a nice historical vibe.
0:32:26 > 0:32:29Less than a mile from the centre of Sittingbourne
0:32:29 > 0:32:32is the historic suburb of Milton Regis.
0:32:32 > 0:32:34Now, it has more of a villagey feel,
0:32:34 > 0:32:36but it still has plenty of local amenities.
0:32:36 > 0:32:39It's got a post office, a pub, a public library -
0:32:39 > 0:32:44and the property I'm here to see is right in the heart of Milton Regis.
0:32:44 > 0:32:47It was previously a takeaway on the ground floor,
0:32:47 > 0:32:50with living accommodation on the two upper floors.
0:32:50 > 0:32:52Here it is!
0:32:52 > 0:32:54Well, it's not just this one here.
0:32:54 > 0:32:56Oh, no! It's this one, as well.
0:32:56 > 0:33:01And all for a guide price of 85 to 90,000.
0:33:01 > 0:33:03I'm going to peek in.
0:33:05 > 0:33:07Inside you can tell straightaway
0:33:07 > 0:33:10this floor here was used as a hot food takeaway.
0:33:10 > 0:33:12Right here was the servery.
0:33:12 > 0:33:17And through here, I think this may have been the restaurant area.
0:33:17 > 0:33:20Wouldn't fancy ordering my food here as it is at the moment.
0:33:20 > 0:33:23Little bit tatty, and needs everything doing.
0:33:23 > 0:33:26Through here, you've got the kitchen area.
0:33:26 > 0:33:27That's quite a big space,
0:33:27 > 0:33:31and I'm sure some of that equipment still might work,
0:33:31 > 0:33:36but as a hot food takeaway, this floor has A5 business classing,
0:33:36 > 0:33:38which gives you more flexibility
0:33:38 > 0:33:41than if it had previously been used as a shop, for example.
0:33:41 > 0:33:44Now, that is because under current regulations
0:33:44 > 0:33:46you're allowed to convert it into a shop,
0:33:46 > 0:33:47a restaurant, or a cafe,
0:33:47 > 0:33:51without applying for change of use from the local authority.
0:33:51 > 0:33:55There are plenty of other commercial businesses all along this street,
0:33:55 > 0:33:57so I would advise doing your research
0:33:57 > 0:33:59and finding out what sort of business
0:33:59 > 0:34:01really would work best here.
0:34:03 > 0:34:06There's a lot on the menu with this auction lot.
0:34:06 > 0:34:09For starters, directly above the commercial unit
0:34:09 > 0:34:12is living accommodation that you could convert into flats.
0:34:12 > 0:34:16There are three rooms to the front of the building.
0:34:16 > 0:34:20One with no window connects the two at the other end.
0:34:20 > 0:34:24Through this room is a hall, which leads to a back bedroom,
0:34:24 > 0:34:28followed by a bathroom and finally, a larger room at the end.
0:34:30 > 0:34:33You could potentially do the same with the floor above,
0:34:33 > 0:34:34which has four rooms,
0:34:34 > 0:34:37although with no kitchen or bathroom.
0:34:37 > 0:34:40So, quite a bit of plumbing work would be required here.
0:34:41 > 0:34:45And on top of all that, you'd have to create separate access to them,
0:34:45 > 0:34:49because the only way to get up to the first and second floors
0:34:49 > 0:34:51is through the commercial unit.
0:34:53 > 0:34:56# There's no other way...
0:34:57 > 0:35:01# There's no other way
0:35:01 > 0:35:04# There's no other way... #
0:35:04 > 0:35:07There might be another way to look at this property,
0:35:07 > 0:35:10because out the back is not quite so charming.
0:35:10 > 0:35:14Apart from a mixed use of flats and commercial,
0:35:14 > 0:35:18what other option on the menu could we choose for this property?
0:35:18 > 0:35:21If you want to take this development further,
0:35:21 > 0:35:23what about taking this whole property
0:35:23 > 0:35:25and turning it into residential?
0:35:25 > 0:35:27How about a couple of houses?
0:35:27 > 0:35:30However, there is something I haven't told you yet
0:35:30 > 0:35:32that could affect planning permission here.
0:35:34 > 0:35:36This property is Grade II listed.
0:35:36 > 0:35:38Now, don't get too excited,
0:35:38 > 0:35:41because that means there'll be extra restrictions
0:35:41 > 0:35:45on any changes you want to make on the inside, as well as the outside.
0:35:46 > 0:35:48Restoring this building will be expensive
0:35:48 > 0:35:53and require many consultations with the local conservation officer,
0:35:53 > 0:35:57who has to make sure all work is sympathetic to the original design.
0:35:57 > 0:35:59# You can to try to please me
0:36:01 > 0:36:03# But it won't be easy
0:36:03 > 0:36:06# And you don't stand an outside chance
0:36:06 > 0:36:07# Don't stand an outside chance
0:36:07 > 0:36:12# You don't stand an outside chance but you can try. #
0:36:12 > 0:36:14Would it be worth the time and effort, though?
0:36:14 > 0:36:17Well, we asked a local estate agent along to give us an idea
0:36:17 > 0:36:19if local planning might consider
0:36:19 > 0:36:22a change of use on this listed building.
0:36:24 > 0:36:26# I know you think you'll get me... #
0:36:26 > 0:36:29Well, the conservation officer who would oversee this area
0:36:29 > 0:36:31is looking to retain the character
0:36:31 > 0:36:34and protect the integrity of the buildings that are here,
0:36:34 > 0:36:37but that doesn't mean to say that they're not going to be averse
0:36:37 > 0:36:38to a change of use
0:36:38 > 0:36:41and different uses out of the buildings that are here.
0:36:41 > 0:36:44I'd like to think that the planners would be quite amenable
0:36:44 > 0:36:46to a conversion back into residential accommodation,
0:36:46 > 0:36:49because that's originally what the building would've been.
0:36:49 > 0:36:53So, um, if they took an historic view,
0:36:53 > 0:36:56then it may very well be welcomed.
0:36:56 > 0:36:59The agent thinks a pair of four or five-bedroom houses
0:36:59 > 0:37:03would be a good option and would be likely to get approval.
0:37:03 > 0:37:05But there's a lot of work to do.
0:37:05 > 0:37:08Could the eventual sales figures stack up,
0:37:08 > 0:37:13even if you got it for around that £85-90,000 guide price?
0:37:13 > 0:37:17Well, I think these two houses would be really quite substantial units
0:37:17 > 0:37:19and could offer an awful lot of character,
0:37:19 > 0:37:21and I think, in that respect,
0:37:21 > 0:37:24and the potential values for these could be somewhere in the region
0:37:24 > 0:37:26of 230 to £250,000 for each unit.
0:37:27 > 0:37:30Well, there's certainly a lot of work to be done
0:37:30 > 0:37:33and there's plenty of space to play with, which is a bonus -
0:37:33 > 0:37:35and a number of options to consider, as well.
0:37:35 > 0:37:38So if you want to make the most of this internal space,
0:37:38 > 0:37:40you'll need to get the planners onside.
0:37:40 > 0:37:43Let's see who wanted to take away this property
0:37:43 > 0:37:45when we went to the auction.
0:37:45 > 0:37:47Another takeaway premises.
0:37:47 > 0:37:50But a big three-storey commercial residential,
0:37:50 > 0:37:52and well worth the refurb that's needed.
0:37:52 > 0:37:54Start me where you will on that one.
0:37:54 > 0:37:56Really attractive guide price, I thought.
0:37:56 > 0:37:59Give me 80, then. Got to start somewhere.
0:37:59 > 0:38:0180,000. 80,000, I'm obliged.
0:38:01 > 0:38:03At 82. 85.
0:38:03 > 0:38:0585. 87.
0:38:05 > 0:38:07I've got 85,000 and I'm looking for 87.
0:38:07 > 0:38:10You can't believe that it's going to be sold for that, but it will be.
0:38:10 > 0:38:12Now, we'll sell it for the first time.
0:38:12 > 0:38:14I will... 87, thank you.
0:38:14 > 0:38:1587.
0:38:15 > 0:38:17At 90. 92.
0:38:17 > 0:38:2192, 95. 95, 97?
0:38:21 > 0:38:2397. 97.
0:38:23 > 0:38:24And 100.
0:38:24 > 0:38:26102.
0:38:26 > 0:38:29102. And five. And seven.
0:38:29 > 0:38:31107.
0:38:31 > 0:38:34107. If you don't buy it, what are you going to do with those men
0:38:34 > 0:38:37that are booked to go in there Monday? 107, can I say?
0:38:37 > 0:38:40Well, if completed by Monday, of course. 107.
0:38:40 > 0:38:41110. 110.
0:38:41 > 0:38:44No? 108, then. Because you've been with it all this time.
0:38:44 > 0:38:47108. Put in a white swing instead of a coloured one,
0:38:47 > 0:38:49that'll save a grand. 108. 109.
0:38:49 > 0:38:52109. You could buy it for that.
0:38:52 > 0:38:53109. 110.
0:38:53 > 0:38:55Just £1,000 now.
0:38:55 > 0:38:59It's not a big gap. The first time then, at £109,000.
0:38:59 > 0:39:02Second time at £109,000.
0:39:02 > 0:39:03Third and final time.
0:39:03 > 0:39:07Yours at 109, G280. Thank you.
0:39:07 > 0:39:10The successful bidder paying £109,000 for this was Paul.
0:39:12 > 0:39:16Paul is an experienced builder who normally works in London.
0:39:16 > 0:39:19He met Lucy to discuss what he had planned
0:39:19 > 0:39:21for this Grade II listed building.
0:39:23 > 0:39:25Great to meet you today. Congratulations.
0:39:25 > 0:39:29- Thank you.- Now, I want to know why you wanted to buy this.
0:39:29 > 0:39:33Erm... I looked at it before the auction and...
0:39:33 > 0:39:36I didn't bother to investigate inside,
0:39:36 > 0:39:38or look into any of the details of it,
0:39:38 > 0:39:42but I turned up at the auction and the bidding was going so slowly
0:39:42 > 0:39:44that I bought it on impulse.
0:39:44 > 0:39:47- You just bought it for 109,000? - Yeah.
0:39:47 > 0:39:51Do you think you've got this sort of steal at £109,000?
0:39:51 > 0:39:52Is that what you wanted to buy it?
0:39:52 > 0:39:55Yeah, it's a lot of property for such small money.
0:39:55 > 0:39:57Have you bought anything else locally?
0:39:57 > 0:40:00- The shop next door.- You've bought the shop next door?- Yeah.
0:40:00 > 0:40:03Buying without viewing properly is something we always advise against,
0:40:03 > 0:40:06but Paul also paid 130 grand for the lot next door,
0:40:06 > 0:40:09which includes the barn at the back.
0:40:09 > 0:40:12- So when you came away on auction day...- Mm-hm?
0:40:12 > 0:40:14You'd spent all that money!
0:40:14 > 0:40:17- Yeah.- Were you a bit shocked and surprised?
0:40:17 > 0:40:18Yeah, I was a bit,
0:40:18 > 0:40:20because I hadn't gone there intending to buy it at all.
0:40:20 > 0:40:22So I'd just spent 200...
0:40:22 > 0:40:24You know, over a quarter of a million pounds.
0:40:24 > 0:40:27- Just on impulse. - So you've got quite a big plot
0:40:27 > 0:40:28if you add these two together.
0:40:28 > 0:40:31So come on, then. Tell me, what are your plans?
0:40:31 > 0:40:34Subject to planning, this will turn into two houses.
0:40:34 > 0:40:35The shop that I bought next door
0:40:35 > 0:40:37will turn into two three-bedroom houses,
0:40:37 > 0:40:40and hopefully the barn will turn into a pair of semis.
0:40:40 > 0:40:41How are you going to do that?
0:40:41 > 0:40:44And how are you going to do that without tampering too much?
0:40:44 > 0:40:46Because it is listed.
0:40:46 > 0:40:47It will actually improve it,
0:40:47 > 0:40:49because it was always two properties -
0:40:49 > 0:40:52and they took the spine wall out to make it into one.
0:40:52 > 0:40:54So, we'll put that back
0:40:54 > 0:40:57and that will improve the stability of the building.
0:40:57 > 0:41:00- So, not flats.- No, we originally thought about flats,
0:41:00 > 0:41:04but the council's policy is to turn shops into houses.
0:41:04 > 0:41:06Because it's listed,
0:41:06 > 0:41:08I'm sure you'll have a lot of involvement with the planners.
0:41:08 > 0:41:10Yeah. Yeah, the conservation officer...
0:41:10 > 0:41:12They'll be involved from the beginning,
0:41:12 > 0:41:15and we will get a lot of delays, you know,
0:41:15 > 0:41:18talking to them about what they will allow and what they won't allow.
0:41:18 > 0:41:21So you've also got to put in your mind and think about this,
0:41:21 > 0:41:23- it is on a busy high street.- Mm-hm.
0:41:23 > 0:41:24Obviously it's not that busy,
0:41:24 > 0:41:27- but you still get lots of passing traffic.- Yeah.
0:41:27 > 0:41:30You've got to think about the noise implications and the type of buyer.
0:41:30 > 0:41:31Who is going to want to buy this?
0:41:31 > 0:41:35Well... Because we're only five minutes' walk from the station,
0:41:35 > 0:41:37it's going to appeal to a lot of people that are commuting.
0:41:37 > 0:41:41People in London put a higher value on the interior.
0:41:41 > 0:41:43They don't mind traffic
0:41:43 > 0:41:45and they don't mind, you know - because they're used to it.
0:41:48 > 0:41:51Paul is allowing a budget of £80,000 per unit.
0:41:51 > 0:41:53And assuming planning permission is sorted,
0:41:53 > 0:41:56he hopes the work will take six months.
0:41:56 > 0:41:58It's a big project, but he's got history.
0:42:00 > 0:42:02My previous home was a scheduled monument when I took it on.
0:42:02 > 0:42:05And we renovated it into a very high standard,
0:42:05 > 0:42:07copied a lot of the period details,
0:42:07 > 0:42:10and that was under the control of English Heritage.
0:42:10 > 0:42:12So you really are interested in history?
0:42:12 > 0:42:16I mean, this is something that really excites you, isn't it?
0:42:16 > 0:42:18Yeah, you know...and most of the London properties
0:42:18 > 0:42:21are either Victorian or Georgian, so there's some history to it,
0:42:21 > 0:42:23so we're used to working on period properties.
0:42:23 > 0:42:25You are the man for the job.
0:42:25 > 0:42:28Good luck with this. Really lovely talking to you today, Paul.
0:42:28 > 0:42:31- OK.- Even though it was a crazy buy on impulse!
0:42:31 > 0:42:33- I think you've got a good one here. - I hope so, yeah.- Congratulations.
0:42:33 > 0:42:35- Thank you.- Thank you.
0:42:36 > 0:42:39Well, Paul might have a building background,
0:42:39 > 0:42:41but before he can get started with his ambitious plans,
0:42:41 > 0:42:44he needs to secure the planning permission,
0:42:44 > 0:42:46and the listed status of this property
0:42:46 > 0:42:48will only make it all the more challenging.
0:42:48 > 0:42:51Join me later in the programme and you can find out
0:42:51 > 0:42:54whether Paul has been left feeling sweet...
0:42:54 > 0:42:56or sour.
0:43:00 > 0:43:03So we've seen how one renovation got on. What about the others?
0:43:03 > 0:43:05Have their efforts paid off?
0:43:05 > 0:43:06Well, only one way to find out -
0:43:06 > 0:43:09and that's to head back and have a look.
0:43:10 > 0:43:13Time to head back to the town of Bloxwich in the West Midlands,
0:43:13 > 0:43:17where I saw a three-bed semidetached house which wasn't to be sniffed at.
0:43:20 > 0:43:23OK, on the odd occasion when you come into a property,
0:43:23 > 0:43:27it's not what you see that hits you first, it's what you smell -
0:43:27 > 0:43:33and I can smell damp, I can smell mildew and mould.
0:43:33 > 0:43:35That's the first thing that hits you.
0:43:35 > 0:43:38The other thing you could smell here was potential.
0:43:38 > 0:43:42Aside from a complete renovation in all rooms,
0:43:42 > 0:43:46this house offered the chance to add more space out the back.
0:43:46 > 0:43:48The large split-level garden and garage
0:43:48 > 0:43:50offered plenty of usable space.
0:43:50 > 0:43:52This meant adding an extension to the back here
0:43:52 > 0:43:54could have been the best way to add value.
0:43:56 > 0:43:57This is just what Pinder thought
0:43:57 > 0:44:01when he paid £135,000 for this house.
0:44:01 > 0:44:05It may be his first renovation, but with the support of his dad,
0:44:05 > 0:44:08who has years of experience in property development,
0:44:08 > 0:44:11he was pushing the boat out even further
0:44:11 > 0:44:12than an extension on this one.
0:44:12 > 0:44:16He'd also planned to convert the garage into a self-contained flat
0:44:16 > 0:44:20and go up into the loft, adding a fourth bedroom.
0:44:20 > 0:44:22Lofty ambitions indeed,
0:44:22 > 0:44:25that would need the support of the local planning department.
0:44:26 > 0:44:28I'm a pretty optimistic guy, to be honest with you, Dion.
0:44:28 > 0:44:32There's nothing about this for a first venture that's worrying you?
0:44:32 > 0:44:34At the moment, nothing's worrying me.
0:44:34 > 0:44:37But we'll see a couple of months down the line.
0:44:37 > 0:44:40- Ha! Could all change! - I might be ringing you, Dion.
0:44:40 > 0:44:43- What do I do with this? What do I do with that?- Exactly!
0:44:43 > 0:44:45Well, I never did get a call from Pinder -
0:44:45 > 0:44:48and to be fair, I think if I gave him a ring before we came back
0:44:48 > 0:44:52just five months later, he would've said...
0:44:52 > 0:44:54# Wha-wha-what did you say?
0:44:54 > 0:44:56# You're breaking up on me
0:44:56 > 0:44:58# Sorry I cannot hear you
0:44:58 > 0:45:00# I'm kinda busy
0:45:00 > 0:45:02# I'm kinda busy
0:45:02 > 0:45:04# I'm kinda busy
0:45:04 > 0:45:06# Sorry I cannot hear you
0:45:06 > 0:45:08# I'm kinda busy... #
0:45:08 > 0:45:12He and his dad and been very busy turning this house around
0:45:12 > 0:45:17in just five months. The entire downstairs has been transformed.
0:45:17 > 0:45:20The new extension leads off to two reception rooms
0:45:20 > 0:45:24that have been knocked through to create a large living space.
0:45:29 > 0:45:32Next door, the old kitchen is now a study.
0:45:34 > 0:45:37And there's now a downstairs toilet under the stairs.
0:45:39 > 0:45:42Upstairs, they have managed to maximise every inch
0:45:42 > 0:45:45of the old bathroom to fit a bath and a shower in.
0:45:47 > 0:45:51By taking the house back to brick to rewire, replaster and re-plumb,
0:45:51 > 0:45:54they have removed every trace of mould.
0:45:56 > 0:45:58Although they stopped short of a loft conversion,
0:45:58 > 0:46:01in fear of overdeveloping the house,
0:46:01 > 0:46:04they did go through with the plan of converting the garage.
0:46:05 > 0:46:08Now it's a self-contained single room flat with its own bathroom.
0:46:14 > 0:46:17So much work has gone into this massive project.
0:46:17 > 0:46:21Pinder must have gained so much experience in the last few months.
0:46:22 > 0:46:27So, I've been working on weekends, helping my dad out,
0:46:27 > 0:46:30who is primarily the project manager here.
0:46:30 > 0:46:32My initial role was just labouring when I came over,
0:46:32 > 0:46:35just to give a hand to people.
0:46:35 > 0:46:38Other than that, my dad was overseeing everyone.
0:46:38 > 0:46:40And he's drawn upon his expertise
0:46:40 > 0:46:44and his network of workers to complete the project.
0:46:45 > 0:46:48That experience has helped them come in one month ahead of schedule
0:46:48 > 0:46:52and an impressive five grand under their 40 grand budget for the work.
0:46:52 > 0:46:54It almost sounds like it was too easy.
0:46:57 > 0:47:00I'd say the biggest challenge would be the commute.
0:47:00 > 0:47:02Sometimes we get stuck in traffic,
0:47:02 > 0:47:05going from different cities from Coventry to Walsall.
0:47:05 > 0:47:08It's not always easy, travelling in the morning,
0:47:08 > 0:47:10erm, with workers, as well.
0:47:10 > 0:47:13So, that has probably been the main challenge.
0:47:13 > 0:47:15If we were looking to do it again,
0:47:15 > 0:47:20we'd probably go closer to home and look for a project there.
0:47:20 > 0:47:23That hasn't been the only journey Pinder has had to overcome
0:47:23 > 0:47:26on this project, as he's also had an uphill climb
0:47:26 > 0:47:29learning the ins and outs of property development.
0:47:29 > 0:47:31This experience has been a steep learning curve.
0:47:31 > 0:47:35I just tried to absorb as much information from my father
0:47:35 > 0:47:36as possible and therefore,
0:47:36 > 0:47:38hopefully, I'll be able to take on experiences
0:47:38 > 0:47:40and take it to another project.
0:47:41 > 0:47:44Well, before they think about moving on to the next property,
0:47:44 > 0:47:46it's time to see if this one
0:47:46 > 0:47:49could provide the capital for future projects.
0:47:49 > 0:47:53We've asked along two local estate agents to see what they think.
0:47:53 > 0:47:55I think the layout's good.
0:47:55 > 0:47:58Originally, I gather it was a two reception room property
0:47:58 > 0:48:00that's been knocked into one,
0:48:00 > 0:48:02and with the rear extension, as well,
0:48:02 > 0:48:05the ground floor accommodation is very, very good.
0:48:05 > 0:48:06The standard of the finish is good.
0:48:06 > 0:48:08Certainly the bathroom and kitchen,
0:48:08 > 0:48:11which are ideal features to any buyer,
0:48:11 > 0:48:13are done to a very high standard.
0:48:13 > 0:48:17The rest of the property has been done to a good standard,
0:48:17 > 0:48:19which will allow for anyone to come in
0:48:19 > 0:48:22and put their own mark on the property.
0:48:22 > 0:48:23Some good feedback,
0:48:23 > 0:48:26but will the sales figures reflect the work they've put in
0:48:26 > 0:48:29to their 170 grand investment?
0:48:29 > 0:48:32I would look for achieving 200,000,
0:48:32 > 0:48:36with a starting value of around 210,000.
0:48:36 > 0:48:38If I was to put this property on the market today,
0:48:38 > 0:48:40I would put it on the market
0:48:40 > 0:48:43at something in the region of 200 to £225,000.
0:48:43 > 0:48:46Well, personally, I think them sale values are kind of low,
0:48:46 > 0:48:47to be honest with you.
0:48:47 > 0:48:51We've also had our own local estate agent come down
0:48:51 > 0:48:53and value the property themselves.
0:48:53 > 0:48:57And they feel like it should be on the market for 259,000,
0:48:57 > 0:49:00to achieve a sale figure of £250,000.
0:49:02 > 0:49:03Well, at the end of the day,
0:49:03 > 0:49:07a house is worth as much as somebody is willing to pay for it.
0:49:07 > 0:49:11There's a potential pre-tax profit of between 30 and 80 grand.
0:49:11 > 0:49:14So it's a successful first project by anyone's standards.
0:49:14 > 0:49:17But perhaps rental might be the better option.
0:49:19 > 0:49:22The property, I believe, would be a better rental property.
0:49:22 > 0:49:26It has been set up and designed to attract that type of client.
0:49:26 > 0:49:29And I believe this property would achieve
0:49:29 > 0:49:31around £850 per calendar month.
0:49:31 > 0:49:36Rental figure, somewhere in the region of 850 to £950 per month.
0:49:36 > 0:49:38The rental figures are pretty similar
0:49:38 > 0:49:40to what we had been expecting -
0:49:40 > 0:49:44and to be honest with you, it is a long-term project
0:49:44 > 0:49:48and a long-term development and I do see this being in the portfolio.
0:49:48 > 0:49:52So, maybe the rental figures is something that we may pursue.
0:49:54 > 0:49:57The top rental figure would give a yield of 6%,
0:49:57 > 0:50:00and despite the varying sales figures either way,
0:50:00 > 0:50:02they have added value to this property,
0:50:02 > 0:50:04which was the main objective.
0:50:04 > 0:50:08Well, that, and for Pinder to get his feet wet in property development
0:50:08 > 0:50:10to follow in his father's footsteps.
0:50:10 > 0:50:11The experience has been great.
0:50:11 > 0:50:14I've had some really good bonding time with my father
0:50:14 > 0:50:17and I've learned some really good tricks on the way.
0:50:17 > 0:50:20With his first successful project under his belt,
0:50:20 > 0:50:22it seems, in this case,
0:50:22 > 0:50:25the apple certainly hasn't fallen far from the tree.
0:50:32 > 0:50:35It's time now to head back to Milton Regis in Kent,
0:50:35 > 0:50:37where Lucy saw a Grade II listed building
0:50:37 > 0:50:41that contained living accommodation above a Chinese restaurant.
0:50:43 > 0:50:45Right here was the servery.
0:50:45 > 0:50:50And through here, I think this may have been the restaurant area.
0:50:50 > 0:50:54Wouldn't fancy ordering my food here as it is at the moment.
0:50:54 > 0:50:57Little bit tatty, and needs everything doing.
0:50:57 > 0:51:00It had a class A5 commercial use,
0:51:00 > 0:51:03so regulations meant there were plenty of options on the menu
0:51:03 > 0:51:06for what you could do with the ground floor.
0:51:06 > 0:51:10It could remain as a restaurant, become a cafe, or even a shop.
0:51:12 > 0:51:15However, that's not why experienced builder Paul
0:51:15 > 0:51:19decided to pay £109,000 for the property at auction.
0:51:19 > 0:51:21He was cooking up something different here
0:51:21 > 0:51:25and didn't even look inside pre-auction, a Hammer no-no -
0:51:25 > 0:51:29because he had a gut feeling it was full of potential.
0:51:29 > 0:51:32- I bought it on impulse. - You just bought it for 109,000?
0:51:32 > 0:51:34Yeah, it's a lot of property for such small money.
0:51:34 > 0:51:37So come on, then. Tell me, what are your plans?
0:51:37 > 0:51:40Subject to planning, then, erm, this will turn into two houses.
0:51:40 > 0:51:41How are you going to do that?
0:51:41 > 0:51:44And how are you going to do that without tampering too much?
0:51:44 > 0:51:45Because it is listed.
0:51:45 > 0:51:49It will actually improve it, because it was always two properties,
0:51:49 > 0:51:52and they took the spine wall out to make it into one,
0:51:52 > 0:51:53so we'll put that back,
0:51:53 > 0:51:57and that will improve the stability of the building.
0:51:57 > 0:51:59I'm so excited to see the outcome here.
0:51:59 > 0:52:03Initially, Paul thought the planning process would take about eight weeks
0:52:03 > 0:52:05and the building work around six months.
0:52:05 > 0:52:08So now we're heading back almost three years later.
0:52:08 > 0:52:11It must be ready, right?
0:52:11 > 0:52:17# Maybe sometime sooner or later
0:52:18 > 0:52:22# But I don't think I'm ready yet
0:52:25 > 0:52:28# I'm not feeling up to it now
0:52:30 > 0:52:33# Just not that steady yet
0:52:36 > 0:52:40# And I don't need you telling me how. #
0:52:44 > 0:52:47Sadly, nothing about this project has been simple -
0:52:47 > 0:52:50and the reason for the delay is, of course,
0:52:50 > 0:52:53because the building is a Grade II listed one.
0:52:55 > 0:52:58It's been a bit of a roller-coaster.
0:52:58 > 0:53:01We kept thinking that we'd reached a point where we could go ahead,
0:53:01 > 0:53:05but kept getting rejections.
0:53:05 > 0:53:08Normal planning permission only takes eight weeks
0:53:08 > 0:53:10and, erm...
0:53:10 > 0:53:14This took three years, which kind of set us back a bit.
0:53:14 > 0:53:18During this time, we've had problems with security.
0:53:18 > 0:53:20We've had three arson attacks,
0:53:20 > 0:53:26people have been in and stolen all the cables and pipework.
0:53:26 > 0:53:29The fire damage wasn't just restricted to this house.
0:53:29 > 0:53:32The other lot he bought next door
0:53:32 > 0:53:33had its barn set on fire,
0:53:33 > 0:53:37and the main building suffered the same delays in planning.
0:53:37 > 0:53:41Back next door, Paul and his team were granted permission
0:53:41 > 0:53:45to strip this 15th-century property back to the bare brick,
0:53:45 > 0:53:49so they could see the condition of the old timber frame building.
0:53:49 > 0:53:53Sadly, hiding underneath the plaster were a few nasty surprises.
0:53:55 > 0:53:58We've got the main structural beam running through,
0:53:58 > 0:54:04but the valley has given way over the years and rotted this beam out.
0:54:04 > 0:54:07So this beam wasn't sitting on anything
0:54:07 > 0:54:12and this is the... this is the structure of the beam.
0:54:12 > 0:54:16Erm, it's no longer serving its purpose,
0:54:16 > 0:54:19and we need to replace this completely
0:54:19 > 0:54:22and pick up this beam at the same time.
0:54:23 > 0:54:25# I need support... #
0:54:25 > 0:54:27Once the beams are sorted,
0:54:27 > 0:54:30Paul can get down to fitting out the houses.
0:54:30 > 0:54:33The kitchens will actually be to the front of the property,
0:54:33 > 0:54:34because of the road noise,
0:54:34 > 0:54:37meaning the living space will be towards the back.
0:54:39 > 0:54:41The first floor will have two bedrooms
0:54:41 > 0:54:43and a family-sized bathroom.
0:54:43 > 0:54:45The other two bedrooms will be in the attic.
0:54:47 > 0:54:49Now the planning has been passed,
0:54:49 > 0:54:53will Paul be able to stick to his original six-month build time?
0:54:55 > 0:54:58The timescale should be the same from now,
0:54:58 > 0:55:03providing that we don't come up against any problems
0:55:03 > 0:55:07with the authorities. We've got a bit of a challenge,
0:55:07 > 0:55:13because building regs have different requirements to the planning people,
0:55:13 > 0:55:16so we have to try and meet the building regs,
0:55:16 > 0:55:20but at the same time not destroy the fabric of the building.
0:55:21 > 0:55:24Paul has spent £20,000 on the work so far
0:55:24 > 0:55:28and thinks it'll be another 120,000 to complete the two houses.
0:55:28 > 0:55:31Time to ask along two local estate agents
0:55:31 > 0:55:35to see if they think all the years' work are going to pay off.
0:55:35 > 0:55:38The overall size of the property is very good.
0:55:38 > 0:55:40The living accommodation is a very good size
0:55:40 > 0:55:43and the location is very good to local schools
0:55:43 > 0:55:46and within walking distance to Sittingbourne train station.
0:55:46 > 0:55:48I think the properties, once completed, will be great,
0:55:48 > 0:55:51and we would have buyers for the properties coming from London,
0:55:51 > 0:55:54because this area is really up and coming,
0:55:54 > 0:55:57from people moving out of London.
0:55:57 > 0:56:00Encouraging noises from the agents, then.
0:56:00 > 0:56:01It sounds like Paul's impulse buy
0:56:01 > 0:56:04was a good decision in terms of location.
0:56:04 > 0:56:08Could there be light at the end of a very long development tunnel?
0:56:08 > 0:56:13So far, he's invested £129,000 in this project.
0:56:13 > 0:56:16The agents think if he sold it right now,
0:56:16 > 0:56:20he could get between £400,000 and £450,000 for the two houses.
0:56:20 > 0:56:24After three long years, that must be tempting.
0:56:24 > 0:56:28I've always been of the opinion that it's better to go the full distance
0:56:28 > 0:56:31and end up with owning the property,
0:56:31 > 0:56:37but if 450,000 for the two properties is viable,
0:56:37 > 0:56:41then it would make more sense to go down that one.
0:56:41 > 0:56:43If Paul sold now, that would mean a potential
0:56:43 > 0:56:48of £321,000 profit, minus taxes and fees.
0:56:48 > 0:56:52So could he make more if he finishes it?
0:56:52 > 0:56:54He would, of course, have months more of hassle and hard work
0:56:54 > 0:56:58and it would take his costs up to 249,000.
0:56:58 > 0:57:01What could the completed houses sell for?
0:57:01 > 0:57:03I would recommend a resale figure
0:57:03 > 0:57:08of £350,000 to 375,000, per each property.
0:57:08 > 0:57:11We would value them at £395,000 each.
0:57:11 > 0:57:18Crikey! Those top figures would mean a potential profit of £541,000.
0:57:18 > 0:57:23So, a possible 321,000 now, or 541,000 later.
0:57:23 > 0:57:25Which will Paul go for?
0:57:26 > 0:57:29I need to speak to my financial advisers
0:57:29 > 0:57:33to find out what it's going to cost me in tax
0:57:33 > 0:57:37to sell the properties on, so I'm very encouraged.
0:57:37 > 0:57:40Yeah, it's taken me by surprise.
0:57:40 > 0:57:43This project has certainly been taxing,
0:57:43 > 0:57:45so maybe it's fitting that the final decision
0:57:45 > 0:57:48on whether or not Paul will complete this renovation
0:57:48 > 0:57:50will come down to the figures.
0:57:50 > 0:57:54Hopefully the extra £220,000 pre-tax profit Paul could make here
0:57:54 > 0:57:57when the houses are complete will spur him on,
0:57:57 > 0:58:01and we can return again to see this listed building restored fully.
0:58:07 > 0:58:09Well, we hope you've enjoyed today's show,
0:58:09 > 0:58:11seeing how other people tried it out.
0:58:11 > 0:58:13Maybe we've inspired you to give it a go.
0:58:13 > 0:58:15Yes, I hope we've been some help to you.
0:58:15 > 0:58:17See you next time on Homes Under The Hammer.
0:58:17 > 0:58:18- Goodbye.- Bye-bye.