Episode 28 Homes Under the Hammer


Episode 28

Similar Content

Browse content similar to Episode 28. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Hello, welcome to the show. Now, the twists and turns

0:00:030:00:05

and highs and lows of the property market can actually put a lot

0:00:050:00:08

of people off investing. Yes, it can be an unpredictable journey,

0:00:080:00:12

but if you start your search well prepared, you might get it right.

0:00:120:00:15

And when thinking about where to start,

0:00:150:00:17

why not consider buying your next property at auction?

0:00:170:00:20

Unfortunately, there's no magic formula when it comes to property

0:00:470:00:50

development, and it can be hard to judge the potential from afar.

0:00:500:00:54

Yeah, that's why buyers on Homes Under The Hammer often get it right.

0:00:540:00:57

They do their research and they view the property.

0:00:570:01:01

So, were the buyers on today's show prepared?

0:01:010:01:04

Let's see what they bought.

0:01:040:01:05

'Coming up, Lucy is in Coulsdon, London,

0:01:070:01:09

'but this three-bed semi ain't all it's cracked up to be.'

0:01:090:01:13

Look at that crack.

0:01:130:01:15

'Space is important to me when it comes to these commercial premises

0:01:170:01:20

'in Derby city centre.'

0:01:200:01:22

Wow.

0:01:220:01:23

HE LAUGHS Look at the size of this place.

0:01:230:01:25

'This grubby ground floor flat in Telford is a bit of a BYOB,

0:01:260:01:32

'you know, bring your own bleach.'

0:01:320:01:33

It could do with a bit of a wash.

0:01:340:01:36

'All these properties have been sold at auction,

0:01:390:01:41

'and we'll find out who bought them,

0:01:410:01:43

'and what they paid when they went under the hammer.'

0:01:430:01:45

GAVEL BANGS Yours, sir.

0:01:450:01:46

'Today, Lucy is in the small town of Coulsdon.

0:01:490:01:52

'Coulsdon lies within the far southern reaches

0:01:520:01:55

'of the Greater London boundary.'

0:01:550:01:57

'It has two train stations and the and M25 can be accessed

0:01:590:02:03

'in just 15 minutes, which has proved attractive for buyers

0:02:030:02:06

'who work in the city.

0:02:060:02:08

'And speaking of busy routes...'

0:02:080:02:09

Now, the first thing you'll notice about this road, well,

0:02:100:02:13

it's really busy.

0:02:130:02:15

And there's lots of traffic hurtling past.

0:02:150:02:17

But I'm not one to dwell on the negatives,

0:02:170:02:20

and I'm really pleased to see that the property I'm here to look at

0:02:200:02:23

is set back from the road by this rather long driveway.

0:02:230:02:27

And that means, of course, off-street parking.

0:02:270:02:29

It's a semi, it's got three bedrooms,

0:02:290:02:31

and it had a guide price of ?350,000 plus.

0:02:310:02:35

'It looks pretty good from the outside,

0:02:390:02:41

'and as well as that long driveway, it also has a garage.'

0:02:410:02:44

So, even though I'm inside the property,

0:02:470:02:49

you can still hear a little bit of that road noise out there.

0:02:490:02:53

The first thing I notice is this beautiful stained glass window

0:02:530:02:57

which I absolutely love.

0:02:570:02:59

I know it's not to everybody's taste, but I particularly love that.

0:02:590:03:02

But look how the window is on the slant.

0:03:020:03:05

And even walking in here you feel a little bit like you just want

0:03:050:03:09

to keep doing that. So, this house is definitely sort of leaning

0:03:090:03:13

towards this way.

0:03:130:03:14

But again, you'll have an abundance of lovely '30s character.

0:03:140:03:18

I bet underneath all of these, you've got nice little spindles,

0:03:180:03:21

you've got some Bakelite switches here which probably don't comply

0:03:210:03:25

with the current regulations, but they look lovely.

0:03:250:03:28

Nice big lounge through there.

0:03:280:03:29

Kitchen which is fairly small,

0:03:290:03:31

but you'd expect to see that in a house of this age.

0:03:310:03:34

And a very lilac sitting room.

0:03:340:03:37

My gosh, such a purple space!

0:03:370:03:40

So, obviously, you know, you need to redecorate here.

0:03:400:03:42

There are polystyrene tiles everywhere in this house,

0:03:420:03:46

a bit of a dated fireplace over here.

0:03:460:03:48

You probably want to change that.

0:03:480:03:50

You've got double-glazed double doors leading out to what's a very,

0:03:500:03:54

very pretty back garden.

0:03:540:03:56

And quite a lot of space in there.

0:03:560:03:58

So, some things to consider with this one, but I'd first of all

0:03:580:04:01

really look into why the floors seem to go like that.

0:04:010:04:05

# Slide away

0:04:100:04:12

# And give it all you've got

0:04:120:04:15

# My today

0:04:150:04:17

# Fell in from the top... #

0:04:170:04:20

'These telltale cracks and leaning walls

0:04:200:04:23

'are common signs of subsidence,

0:04:230:04:25

'which is enough to give anyone that sinking feeling.'

0:04:250:04:28

'Looking on the bright side, though, it's a spacious house,

0:04:290:04:32

'and there is plenty of scope to extend into the expansive garden

0:04:320:04:36

'if you were to knock down or incorporate the garage.

0:04:360:04:39

'But let's not get ahead of ourselves.'

0:04:390:04:41

OK, so back to the wonkiness of this house.

0:04:430:04:45

And we're going to head over to the coat cupboard,

0:04:450:04:47

not to show you what's inside - coats, jackets - no.

0:04:470:04:51

Take a look at this.

0:04:510:04:53

Look at that crack.

0:04:530:04:57

Wow. That's... that's quite impressive.

0:04:570:04:58

It goes on all the way up there as well.

0:04:580:05:01

And they do say if you can fit your hand inside -

0:05:010:05:04

look, I can literally fit my hand between the bricks in there -

0:05:040:05:08

it's doubly, triply serious.

0:05:080:05:09

So, a lot of money is going to have to be spent to rectify that.

0:05:090:05:13

Subsidence is definitely something to worry about here.

0:05:130:05:17

Good luck, whoever takes this property on.

0:05:170:05:19

'Unfortunately the signs of subsidence are evident across

0:05:210:05:24

'all three bedrooms upstairs.

0:05:240:05:26

'But there are ways to fix the problem.'

0:05:260:05:28

'Underpinning - which means strengthening the foundations -

0:05:300:05:33

'was traditionally done by hand, digging out underneath of the house

0:05:330:05:37

'and filling in with concrete.

0:05:370:05:39

'But, thankfully there are now alternative methods available.'

0:05:390:05:42

Now, subsidence is usually caused by soil shrinkage.

0:05:470:05:51

And often, well, that's because the trees

0:05:510:05:53

and the shrubs suck out moisture.

0:05:530:05:55

Now, just have a look at all the trees and foliage, all the way here,

0:05:550:05:59

you've got a big tree down the end there. You've got all of this.

0:05:590:06:02

I mean, look at this - the pavement is cracked so close to the house,

0:06:020:06:06

it's a bit of a worry.

0:06:060:06:07

Now, I'd say this might all be the cause of the movement here,

0:06:070:06:12

but first things first, I would get an expert to check this out

0:06:120:06:16

and give a firm diagnosis.

0:06:160:06:17

# It just depends how close to ground level you are... #

0:06:180:06:22

'So, just how worried should you be about subsidence?

0:06:240:06:27

'We asked an agent from the auction house that sold the property

0:06:280:06:31

'what she thought of the issue on this house guided at ?350,000 plus.'

0:06:310:06:37

There are some cracks in the property, it does look a little bit

0:06:370:06:40

worrying, I would suggest looking a bit deeper into that.

0:06:400:06:44

'Assuming the skewwhiff semi is sorted,

0:06:440:06:47

'what other possibilities are there for this property?'

0:06:470:06:50

Downstairs you could do a rear extension,

0:06:510:06:53

have a really lovely open-plan kitchen,

0:06:530:06:55

living area and still have ample space in the garden.

0:06:550:06:58

Upstairs, definitely enough room for a loft conversion.

0:06:580:07:01

I would only recommend to do the extensions

0:07:010:07:04

if the family was going to stay here and enjoy it.

0:07:040:07:07

If it's for a quick turnover to make a bit of money on the property,

0:07:070:07:10

I don't think that would benefit,

0:07:100:07:12

and then they'd make that extra cost back on the price.

0:07:120:07:15

'While the cost of extending might not be worth it for an investor,

0:07:150:07:19

'just what kind of price could you achieve for this house

0:07:190:07:22

'as a three-bed and as a four-bed?'

0:07:220:07:24

'I would say, once renovated as a three-bed,

0:07:260:07:28

'you'd be looking somewhere between ?430,000 to ?450,000.'

0:07:280:07:33

If you were to extend the property into a four-bed,

0:07:330:07:35

you would be looking at around ?460,000.

0:07:350:07:39

Although it could be really lovely,

0:07:410:07:43

at the moment this is a house with some serious issues.

0:07:430:07:46

I just hope it fell into the hands of somebody, well,

0:07:460:07:49

with some experience.

0:07:490:07:51

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

0:07:510:07:54

AUCTIONEER: Two-floor, semidetached house.

0:07:570:07:59

As you see it in your catalogues,

0:07:590:08:00

no announcements or amendments on this one,

0:08:000:08:02

so I'll bring it straight in at 350, shall I?

0:08:020:08:05

Thank you, they were just first.

0:08:050:08:06

OK, 352, 355, 357, 360.

0:08:060:08:12

'There were some familiar faces in the room,

0:08:120:08:14

'and the bidding was off to a steady start.

0:08:140:08:17

'We rejoin the action at 385,000.'

0:08:170:08:20

385?

0:08:220:08:23

385, 386? 387?

0:08:230:08:25

It's going to go, and it's going at 386 now, for the first,

0:08:270:08:31

at 386 for the second,

0:08:310:08:34

third, 387, 388,

0:08:340:08:37

389?

0:08:370:08:38

It's now at the front.

0:08:400:08:41

Yes, out? 388 for the first,

0:08:410:08:44

388 for the second,

0:08:440:08:47

third, last chance.

0:08:470:08:49

GAVEL BANGS Yours, sir, at ?388,000, well done.

0:08:490:08:53

'Familiar faces and successful bidders paying 388 grand for the lot

0:08:530:08:58

'were professional property developers Chris and Pauline.

0:08:580:09:02

'This will be the husband-and-wife team's fourth time

0:09:020:09:05

'on Homes Under The Hammer. We most recently featured

0:09:050:09:08

'their fabulous property in Selhurst.

0:09:080:09:10

'Lucy caught up with them once more while daughter Molly was at school.'

0:09:120:09:16

Pauline and Chris, not you two again!

0:09:170:09:19

SHE LAUGHS

0:09:190:09:21

So, come on, whose fault is this one?

0:09:210:09:23

Totally his, I haven't even... I haven't viewed it.

0:09:230:09:26

I only saw it today for the first time.

0:09:260:09:28

So, you left it all to your dear husband.

0:09:280:09:30

Yeah. Tell me the story.

0:09:300:09:31

We'd gone to France skiing over Easter, came back,

0:09:310:09:34

I took Molly up to Manchester to stay with my sister,

0:09:340:09:36

and he went to viewings and decided that it was just a wee crack

0:09:360:09:41

in the house, there wasn't... It was nothing to be worried about,

0:09:410:09:44

just a wee...

0:09:440:09:45

I thought a bit of Polyfilla will fix... Hairline, hairline crack.

0:09:450:09:49

Anyway, I come in here, it's like the San Andreas Fault.

0:09:490:09:51

'OK, a wee crack, so how bad is the wee bit of subsidence?'

0:09:530:09:57

It drops by about five centimetres or so on the left-hand side.

0:09:590:10:04

Really, it's not a big deal.

0:10:040:10:05

OK, right, let's have a big meaty chat about this.

0:10:050:10:09

So, I'm with you on this one, Pauline.

0:10:090:10:12

I was a bit shocked, I was like, "Oh, bump!

0:10:120:10:14

"This house really leans to the right."

0:10:140:10:16

Yeah. So, what do you know about subsidence?

0:10:160:10:18

Do you think it is, are you worried and surely you are going to need to

0:10:180:10:21

get somebody around to have a look at this?

0:10:210:10:23

Yeah, I mean, for sure we'll get a professional company to sort the

0:10:230:10:26

subsidence out, that's number one job.

0:10:260:10:29

That gets fixed and then everything else goes around that.

0:10:290:10:31

But it is just a problem that needs fixing.

0:10:310:10:35

I mean, obviously with your repairs,

0:10:350:10:37

it's not going to prop the house back up again.

0:10:370:10:39

Well, the subsidence firm we're looking at, injects this foam

0:10:390:10:43

underneath the foundation

0:10:430:10:44

and it has got the potential to lift it up a bit.

0:10:440:10:46

Expanding. Maybe not five centimetres that we've dropped.

0:10:460:10:49

It's like expanding foam, but instead of being soft,

0:10:490:10:53

it sets like rock.

0:10:530:10:54

So, we're going to kind of inject synthetic rock underneath

0:10:540:10:57

the foundations, and it does have the potential to lift it up a bit.

0:10:570:11:01

'Whatever method they use,

0:11:010:11:02

'it will eat up a fair portion of their ?120,000 to ?150,000 budget.

0:11:020:11:07

'And while it's a decent figure,

0:11:070:11:09

'they are planning to extend at the rear of the property

0:11:090:11:12

'and up into the loft, creating a fourth bedroom with en suite.'

0:11:120:11:15

'There is a lot to do in their 9-12 month timescale,

0:11:170:11:21

'so they based their plans on a neighbouring property.

0:11:210:11:24

'In fact, they even have the same architect.

0:11:240:11:27

'And while they will get builders in for the major works,

0:11:270:11:30

'Pauline and Chris are pretty handy themselves.'

0:11:300:11:33

These polystyrene tiles have got my name written all over them.

0:11:340:11:38

Yes, get rid of them.

0:11:380:11:40

All throughout the whole house,

0:11:400:11:42

and all the wallpaper and stuff I will be chivvying off, I think.

0:11:420:11:46

We'll see how the house is by the time we finish,

0:11:460:11:49

and then we'll think about colours, but all will be nice and neutral,

0:11:490:11:53

nothing garish cos that won't be allowed.

0:11:530:11:55

You know, there'll be nice greys and greens.

0:11:550:11:59

Green's the new grey this year, apparently.

0:11:590:12:01

Green is the new grey,

0:12:010:12:02

so are we going to be seeing some greens poking through the grey?

0:12:020:12:05

Oh, yeah, probably, yeah.

0:12:050:12:07

Fabulous. Totally up my street.

0:12:070:12:09

And you're here every day obviously doing all the work.

0:12:090:12:12

I do a lot, I'm more at the start.

0:12:120:12:15

I'm good for demolition, but I've got no finishing skills,

0:12:150:12:18

so once we get to that point, then it's over to the builders

0:12:180:12:21

and they do all the plastering and painting, and...

0:12:210:12:23

So, working together as a team

0:12:230:12:24

is really working out for you, isn't it?

0:12:240:12:27

Well, you know, it's, like, we get on each other's nerves occasionally.

0:12:270:12:32

You know, we have little squabbles over tiles,

0:12:320:12:35

and we don't speak for a night or so, and then we compromise.

0:12:350:12:39

I always go too expensive. And who normally gets their way?

0:12:390:12:42

I do, of course.

0:12:420:12:43

Goes without saying, I'm in charge.

0:12:430:12:46

Guys, I'm so excited,

0:12:460:12:48

I'm desperate to find out the outcome for the subsidence,

0:12:480:12:52

but good luck, both of you.

0:12:520:12:53

And I'm really looking forward to seeing how you do this place.

0:12:530:12:56

Lovely to see you again, so nice, thank you.

0:12:560:12:58

Thank you, Lucy.

0:12:580:12:59

Well, Pauline and Chris, we meet again.

0:13:010:13:04

They are becoming Homes Under The Hammer frequent flyers.

0:13:040:13:07

However, they've taken on something bigger and significantly more

0:13:070:13:10

challenging. Will their property developing success story continue

0:13:100:13:15

as they tackle subsidence and extensions?

0:13:150:13:18

Join me later on in the programme and you can find out

0:13:180:13:21

how the couple get on.

0:13:210:13:22

'It's back to the city of Derby for me -

0:13:280:13:30

'an area we've visited regularly over the years

0:13:300:13:32

'on Homes Under The Hammer.'

0:13:320:13:34

'There's a lot going on here, plenty of amenities,

0:13:350:13:38

'great transport links as well as historic buildings.

0:13:380:13:42

'There's often an interesting property investment

0:13:420:13:44

'to be found, too.'

0:13:440:13:45

So, just a ten-minute walk away from Derby town centre on this very busy

0:13:470:13:51

main road, which is a mix of residential and commercial,

0:13:510:13:54

is the property I'm here to see.

0:13:540:13:56

And it's a commercial unit that I'm looking at today.

0:13:560:13:59

Part of it is being rented out to the bookies,

0:13:590:14:02

the other half is just here, and that's what I'm here to see.

0:14:020:14:05

Has a guide price of ?150,000.

0:14:050:14:09

Is it going to be worth the gamble? Let's take a look.

0:14:090:14:11

Wow! HE LAUGHS

0:14:150:14:17

Look at the size of this place.

0:14:170:14:19

And the condition it is in as well.

0:14:190:14:22

Yes, you might have to put a lick of paint up and change the flooring

0:14:220:14:25

in here, but it is in very good condition.

0:14:250:14:28

And you have got to think as well, the location...

0:14:280:14:31

It's incredibly busy out there, the footfall is superb.

0:14:310:14:35

Through here, you've got...

0:14:350:14:37

..another room just here. Another decent-sized room, so straightaway,

0:14:380:14:42

I'm thinking you could make that a separate unit to this one,

0:14:420:14:46

close the door, block it off, brick it up, do what you want.

0:14:460:14:49

But when it comes to making profit, that could be making profit,

0:14:490:14:53

this could be making profit

0:14:530:14:54

and the bookies already are paying ?6,000 a year.

0:14:540:14:59

Imagine that kind of money coming in.

0:14:590:15:01

There is definitely profit to be made here.

0:15:010:15:03

# Got brass in pocket... #

0:15:060:15:10

'Splitting these premises further would definitely give you more

0:15:110:15:14

'bang for your buck and there's loads of options here.

0:15:140:15:18

'An office, a salon, a restaurant...

0:15:180:15:20

'Just remember, different types of businesses

0:15:210:15:24

'have different use classes.

0:15:240:15:26

'Change of use sometimes requires planning permission,

0:15:260:15:29

'so always best to check with your local planners before you buy,

0:15:290:15:33

'or maybe you could do something entirely different.'

0:15:330:15:36

Having walked around the area,

0:15:390:15:40

I have noticed that whether it is residential or commercial,

0:15:400:15:43

most of the buildings are on two floors,

0:15:430:15:45

which says to me that this place

0:15:450:15:48

has the potential to be built on as well.

0:15:480:15:50

Now, you could put commercial units up there,

0:15:500:15:52

or you could put residential.

0:15:520:15:54

Now, if you were going to go down the residential route,

0:15:540:15:56

there is a lot of red tape to go through.

0:15:560:15:58

Planning, which you might not even get in the first instance,

0:15:580:16:01

cos there is not enough parking.

0:16:010:16:04

Also, you have got to think about lenders.

0:16:040:16:06

Lenders are very reluctant to lend for residential above,

0:16:060:16:10

commercial units below. So there are lots of things to think about.

0:16:100:16:14

What I would suggest is just do a little bit of research.

0:16:140:16:18

# Every time it rains

0:16:180:16:20

# It rains pennies from heaven. #

0:16:200:16:24

'I love that tune.

0:16:240:16:25

'Anyway, to find out if my idea was ever likely to fly,

0:16:250:16:28

'we have asked along an agent from the auction house that sold it.

0:16:280:16:32

'First, what does he think of the retail space?'

0:16:320:16:35

Impressed by the 4,000 square feet of the two retail units,

0:16:350:16:39

and its prominent position on the high street.

0:16:390:16:43

'And what about going up?

0:16:430:16:44

'Is there potential to expand?'

0:16:440:16:46

I feel there could be an option for the owner to maybe develop some

0:16:470:16:50

apartments above, but that would always be usual,

0:16:500:16:52

subject to planning consent.

0:16:520:16:54

'Let's get some figures for the premises as it stands currently.

0:16:550:16:59

'What could be the rental potential here?'

0:16:590:17:02

Probably likely to achieve a combined rental of probably

0:17:020:17:05

in the region of ?15,000 to ?16,000.

0:17:050:17:09

'And if the new buyer decided to sell on,

0:17:090:17:11

'how much could these units fetch on the resale market?'

0:17:110:17:14

If they were to sell the whole lot,

0:17:140:17:16

with a joined combined rent for the three units,

0:17:160:17:20

I would feel the property is likely to achieve in excess of ?200,000.

0:17:200:17:24

This is a good size commercial unit.

0:17:260:17:29

Part of it is already being let out to the bookies,

0:17:290:17:31

so if it is working for you, I'd leave that alone.

0:17:310:17:34

This part here, for me, is crying out to be in two parts.

0:17:340:17:38

I've also looked around the area,

0:17:380:17:40

and I've seen that some of the buildings have got another floor,

0:17:400:17:43

so the potential to develop this place further is great.

0:17:430:17:46

It is a really good project to get hold of.

0:17:460:17:49

Let's see who saw its potential when it went under the hammer.

0:17:490:17:52

AUCTIONEER: Two retail units, part let, part vacant.

0:17:530:17:56

Start me where you like with this one.

0:17:560:17:58

155?

0:17:580:18:00

Who's got 150?

0:18:000:18:02

145 to start me?

0:18:020:18:04

145?

0:18:040:18:06

40? 140, thank you.

0:18:060:18:08

?140,000 is the opening bid.

0:18:080:18:10

'This lot was slow out of the blocks,

0:18:110:18:13

'but the price did creep higher, with two bidders -

0:18:130:18:16

'one in the room and one on the phone -

0:18:160:18:18

'both determined to come out on top.

0:18:180:18:20

'We rejoined with the latest bid at 175 grand.'

0:18:220:18:26

175?

0:18:260:18:28

175.

0:18:280:18:30

175, 176.

0:18:310:18:33

176,000.

0:18:340:18:37

177.

0:18:370:18:38

Over to you.

0:18:380:18:39

177.

0:18:390:18:41

178?

0:18:410:18:43

?177,000.

0:18:430:18:45

Is that definite? Once, twice, third opportunity...

0:18:450:18:50

GAVEL BANGS Sold at 177, thank you.

0:18:500:18:52

'It was Jaz with that successful bid of ?177,000.

0:18:570:19:02

'Together with brother Manny,

0:19:020:19:04

'they run a small chain of funeral directors around the Midlands,

0:19:040:19:07

'and this was their fourth property.

0:19:070:19:09

'We caught up with them for a chat to find out more.'

0:19:090:19:14

Jaz, nice to meet you. And yourself. Manny, same to you.

0:19:140:19:16

Congratulations to you both.

0:19:160:19:18

Thank you very much. Tell me why this property, then.

0:19:180:19:20

I think the demographics, location etc,

0:19:200:19:23

fits in with our business model, how we're currently going.

0:19:230:19:26

More so the location.

0:19:260:19:27

OK. Was it this size of property you were looking for?

0:19:270:19:30

We were looking for something a bit smaller but...

0:19:300:19:32

we got something a bit bigger, value for money, really.

0:19:320:19:35

And you happy with what you paid for it?

0:19:350:19:37

Definitely. I think we definitely got value for money.

0:19:370:19:39

Yeah, there is a chance for some decent income here, isn't there?

0:19:390:19:42

Cos you have already got... Part of it is already rented, isn't it?

0:19:420:19:45

Yeah, a very good tenant who are already interested in extending

0:19:450:19:48

their lease, which is absolutely music to our ears.

0:19:480:19:50

Oh, well done, well done!

0:19:500:19:52

Have you had a chat with them?

0:19:520:19:54

Yes, we've had an initial chat,

0:19:540:19:56

talking figures and lengths of contracts,

0:19:560:19:58

and they are happy to stay.

0:19:580:20:00

We just need to get that contract signed now!

0:20:000:20:02

THEY LAUGH

0:20:020:20:03

# Signed on the dotted line

0:20:030:20:06

# It's gonna work out fine. #

0:20:060:20:09

'That is an excellent start.

0:20:100:20:12

'With some guaranteed long-term rental coming in,

0:20:120:20:14

'the brothers can concentrate

0:20:140:20:16

'on getting the business up and running.'

0:20:160:20:17

So what special requirements are you going to have to put in here

0:20:190:20:22

for a funeral home? Within this space that we are in now,

0:20:220:20:24

we are hopefully splitting into smaller rooms, so office space,

0:20:240:20:29

arrangement areas.

0:20:290:20:30

We wish to get a mortuary in this space also.

0:20:300:20:33

And then we've also got the back unit.

0:20:330:20:35

That is where the refrigeration units, etc, will be going,

0:20:350:20:38

and a mortuary space for the staff.

0:20:380:20:40

There will be two kind of waiting areas, reception areas

0:20:400:20:43

within this space, and chapels of rest.

0:20:430:20:46

We have already got, like, a split wall in between the two units.

0:20:460:20:49

We will put a shop front in and make that another rental unit.

0:20:490:20:53

OK, so tell me what kind of commercial units are you going

0:20:530:20:56

to put on the other side of the building? Well, hopefully,

0:20:560:21:00

we've got a couple of interested parties that want to come and look

0:21:000:21:02

at it. I think for the near future, probably section it off,

0:21:020:21:07

get some interested parties in, and see what they want to do with it.

0:21:070:21:10

And how much is all this going to cost, Manny?

0:21:100:21:13

Well, it's... Big question! Big question.

0:21:130:21:15

We are thinking around about ?60,000.

0:21:150:21:17

OK. That is what we are budgeting.

0:21:170:21:19

But we are going to aim to go way under that!

0:21:190:21:22

THEY LAUGH

0:21:220:21:24

We have got a ?60,000 budget, and we will see how it goes.

0:21:240:21:29

Your timescale - how long is it going to take?

0:21:290:21:31

Well, we're hoping five months, we can get it turned over,

0:21:310:21:35

which I think we should be able to do,

0:21:350:21:38

I say comfortably, but you never know.

0:21:380:21:40

But comfortably within five months.

0:21:400:21:41

OK, and who's going to do the work for you?

0:21:410:21:44

What we'd like to do is use local tradesmen,

0:21:440:21:46

so people from the local area.

0:21:460:21:48

I think that is part of our business model as well.

0:21:480:21:51

The areas that we go into,

0:21:510:21:52

hopefully we can give back into that economy, of that city,

0:21:520:21:55

so we will be using local tradesmen around Derby.

0:21:550:21:58

That is good. Keep the money in the area. Exactly.

0:21:580:22:00

So, have you thought about building up?

0:22:000:22:03

Yes, so when we'd actually seen the site and we looked around the local

0:22:030:22:07

streets, everybody's got two storeys,

0:22:070:22:09

so I think definitely got potential to go up.

0:22:090:22:12

And what would you want to put up there if that was the case?

0:22:120:22:16

We were thinking maybe residential flats,

0:22:160:22:20

we might even go to make an office accommodation upstairs

0:22:200:22:24

for our will side of the business.

0:22:240:22:26

We do wills and probates for our legal sector,

0:22:260:22:28

to maybe take that upstairs, so maybe move that upstairs.

0:22:280:22:31

That would nudge the budget up slightly, wouldn't it?

0:22:310:22:34

Oh, substantially, yes!

0:22:340:22:35

We will get downstairs done first, and then have a cup of tea

0:22:350:22:39

and a break, and then we will see what happens upstairs!

0:22:390:22:42

It is nice to have the options, though, Manny, isn't it?

0:22:420:22:44

Definitely, and it will add value to the property as well.

0:22:440:22:47

'The funeral directors business was set up in 2013,

0:22:510:22:55

'and mainly serves the Asian community.

0:22:550:22:59

'I was intrigued to find out how they started.'

0:22:590:23:01

It started maybe ten years ago when my grandad passed away.

0:23:010:23:05

And at the time, we were not 100% satisfied with the level of service

0:23:060:23:10

that we received, so that kind of put a seed in my mind.

0:23:100:23:15

Once I had finished university,

0:23:150:23:16

and I had come out and had a bit of thinking time,

0:23:160:23:19

and my brother as well, we had a passion

0:23:190:23:22

for helping the community, helping people,

0:23:220:23:24

and this kind of lined in quite well.

0:23:240:23:27

And an opportunity came up,

0:23:270:23:29

and we almost fell into the business rather than...

0:23:290:23:33

It kind of chose us.

0:23:330:23:35

'Jaz and Manny have a calling at helping others in difficult times.

0:23:350:23:39

'So what is it they want to achieve with this property?'

0:23:390:23:42

We want a place where, if somebody walks through the door,

0:23:440:23:47

they have that peace of mind, reassurance,

0:23:470:23:49

that they've come into this place and they can grieve properly. Yes.

0:23:490:23:51

So we've taken that all into context,

0:23:510:23:53

and we are trying to build a facility here for the local people

0:23:530:23:57

of Derby, so at their point of

0:23:570:24:00

bereavement, they can come in here and feel reassured.

0:24:000:24:03

Good on you. I wish you both good luck.

0:24:030:24:05

Jaz, good luck, pal.

0:24:050:24:07

Good luck to you. Manny, good luck. Thank you.

0:24:070:24:09

So, Jaz and Manny have bought this place for a specific reason -

0:24:120:24:15

for their business - they're funeral directors.

0:24:150:24:18

I do like that they are going to be renting out the other parts

0:24:180:24:21

of the building, and I also like

0:24:210:24:22

that they are going to be using local tradesmen.

0:24:220:24:25

?60,000 and five months.

0:24:250:24:28

You can find out how they do later in the programme.

0:24:280:24:30

'Still to come, this ground-floor flat

0:24:320:24:35

'in Telford is anything but a-DOOR-able.'

0:24:350:24:38

I think it is fair to say you might need a new door.

0:24:380:24:40

It is a bit of a hotch-potch.

0:24:400:24:41

'And we will find out if Jaz and Manny achieve their goal.'

0:24:430:24:46

The biggest hurdle that we found was trying to juggle our work along

0:24:460:24:50

with managing this project.

0:24:500:24:51

'Back now to the small town of Coulsdon,

0:24:550:24:57

'in the far southern reaches of the Greater London boundary,

0:24:570:25:00

'where Lucy saw this 1930s semi.'

0:25:000:25:03

'First impressions were so-so,

0:25:050:25:07

'but inside the house, it was more seesaw.'

0:25:070:25:11

Look how the window is on the slant, and even walking in here,

0:25:110:25:15

you feel a little bit like you just want to keep doing that.

0:25:150:25:18

'All the signs pointed to subsidence,

0:25:190:25:22

'but if you could see past the problems,

0:25:220:25:24

'there was a lot of potential in this spacious 1930s accommodation,

0:25:240:25:28

'as well as a generous garden with scope to extend.

0:25:280:25:31

'But upstairs, try as you might to forget,

0:25:320:25:35

'there was no getting away from those cracks.'

0:25:350:25:37

Look at that crack!

0:25:390:25:42

And they do say, if you can fit your hand inside -

0:25:420:25:46

look, I can literally fit my hand between the bricks in there -

0:25:460:25:49

it is doubly, triply serious.

0:25:490:25:51

'It was no small task,

0:25:520:25:54

'but that did not put off professional property developers,

0:25:540:25:57

'and husband and wife, Chris and Pauline,

0:25:570:26:00

'who bought the house for 388 grand.

0:26:000:26:03

'Well, it didn't put Chris off, anyway.'

0:26:030:26:05

We had gone to France skiing over Easter, came back,

0:26:060:26:09

I took Molly up to Manchester to stay with my sister,

0:26:090:26:12

and he went to viewings and decided that it was just a wee crack

0:26:120:26:16

in the house, it was nothing to be worried about.

0:26:160:26:18

It was just a wee...

0:26:180:26:20

I thought a bit of Polyfilla will fix... ..hairline crack!

0:26:200:26:24

Anyway, I come in here, it's like the San Andreas Fault.

0:26:240:26:26

'No matter whose FAULT it was,

0:26:280:26:30

'it was time to get - dare I say it? - cracking.

0:26:300:26:33

'And while the couple had a healthy budget of 120,000 to 150,000,

0:26:330:26:38

'they also had to cover an extension and loft conversion,

0:26:380:26:41

'all within a timescale of 9 to 12 months.'

0:26:410:26:44

'Well, one year on, we are back.'

0:26:460:26:48

'That is a great start, that massive tree has been cleared,

0:26:500:26:54

'and there is now a tiered garden with plenty of parking.'

0:26:540:26:57

'What's more, inside is looking positively smashing.'

0:27:000:27:04

'Chris and Pauline's builders have knocked through the former lounge,

0:27:080:27:12

'and added an extension

0:27:120:27:13

'to make an absolutely stunning family living space.

0:27:130:27:17

'They knocked down the garage,

0:27:180:27:19

'and in its place is a generous utility room and a handy WC.'

0:27:190:27:24

'As for the front, well, it's looking just as chic.

0:27:270:27:29

'And of course, no more cracks.'

0:27:290:27:31

'Let's hope the subsidence wasn't too tricky to fix.'

0:27:330:27:37

Originally, we thought it was probably a subsidence issue related

0:27:370:27:40

to the big trees out front.

0:27:400:27:41

But once we started digging up the driveway,

0:27:410:27:43

we discovered the drain from the bathroom was literally disconnected

0:27:430:27:47

by about that much.

0:27:470:27:48

So every time they flushed the toilet or emptied the bath,

0:27:480:27:51

the water washed underneath the concrete driveway.

0:27:510:27:53

It washed all the soil away and just took away the foundations

0:27:530:27:57

of the house, so it slipped down a little bit.

0:27:570:27:59

So as soon as we reconnected it,

0:27:590:28:01

put in a bit of support under all the walls...

0:28:010:28:05

..no problem any more.

0:28:060:28:08

'Well, subsidence can have many causes

0:28:080:28:10

'and drains are common culprits.

0:28:100:28:13

'The couple used the resin injection technique

0:28:130:28:16

'to strengthen the house's foundations.

0:28:160:28:19

'They made good on their plans to extend and level the house,

0:28:190:28:22

'but did they manage that loft extension?'

0:28:220:28:24

'Well, what did you expect? Of course they did.

0:28:270:28:30

'And marvellous it is, too, complete with en-suite shower room.'

0:28:300:28:34

'The rest of the bedrooms are just as stylish,

0:28:390:28:41

'thanks to Pauline's interior decor skills.

0:28:410:28:44

'Meanwhile, Chris was project manager, and tackled the rewire,

0:28:450:28:49

'but had the work signed off by a registered sparky,

0:28:490:28:53

'which, do remember, is the law.

0:28:530:28:54

'They are a perfect team, but did everything else go smoothly?'

0:28:570:29:00

The worst was planning.

0:29:010:29:03

Planning was the biggest problem, wasn't it?

0:29:030:29:05

Yeah, planning delayed us.

0:29:050:29:07

The brief I gave myself for the house was to try and match next door

0:29:070:29:11

as much as possible. We even had the same architect.

0:29:110:29:14

All he had to do was take his plans, turn them over, and go,

0:29:140:29:17

"There you go, that's your plans."

0:29:170:29:18

But when we put them in to the planning permission,

0:29:180:29:21

we got turned down.

0:29:210:29:23

So we had to appeal the planning permission,

0:29:230:29:25

so six weeks for planning permission,

0:29:250:29:27

then the appeal took about 14 weeks.

0:29:270:29:29

And then, yeah, we finally got approved on the appeal,

0:29:310:29:34

but, as I say, the 14-week delay was not a good thing.

0:29:340:29:40

We just plodded along the whole project.

0:29:400:29:42

'Despite the delays with planning, they came in on schedule,

0:29:420:29:46

'but it did contribute to an overspend of ?15,000.

0:29:460:29:50

'They spent ?165,000 overall.

0:29:500:29:53

'But Chris and daughter Molly don't look too worried,

0:29:530:29:56

'so what is the best bit of this fabulous house?'

0:29:560:29:59

It's over...

0:30:010:30:02

..I think. It has been going on for so long and it was so tedious, but,

0:30:040:30:08

you know, now, looking at it, you think,

0:30:080:30:10

"Yeah, it is a great family house now."

0:30:100:30:12

I would live in it, and that is the benchmark.

0:30:120:30:14

"Would I live in it?" "Yeah."

0:30:140:30:16

And my daughter would definitely live in it, she loves it,

0:30:160:30:18

she wants to move in.

0:30:180:30:19

'Well, join the queue, Molly,

0:30:210:30:23

'because I think this house could prove very popular indeed.

0:30:230:30:26

'Let's see what two local estate agents thought

0:30:260:30:28

'of Chris and Pauline's ?553,000 investment,

0:30:280:30:32

'starting with the agent who saw it prior to work starting.'

0:30:320:30:35

I think the property is fantastic.

0:30:380:30:41

Really got the wow factor.

0:30:410:30:42

I walked in, and I just thought, "Oh, my gosh, it is beautiful."

0:30:420:30:46

They have done a stunning job, to be honest with you.

0:30:460:30:49

And I do not often say that in property terms.

0:30:490:30:52

They really have done a high-end finish to it, above average.

0:30:520:30:56

The only negative I would say

0:30:560:30:59

is probably that it is based on a main road.

0:30:590:31:01

Now, some people will like that, and some people, it won't bother them,

0:31:010:31:04

but other people it will, but I think, as soon as they step through

0:31:040:31:07

the front door, and see what the property has to offer,

0:31:070:31:10

they are going to fall in love.

0:31:100:31:11

'But will Chris and Pauline love the values?

0:31:110:31:14

'After all, they have invested ?553,000.'

0:31:140:31:20

Because of the standard of finish and the good accommodation,

0:31:200:31:24

I would put it in a price range

0:31:240:31:27

of ?625,000 to ?650,000.

0:31:270:31:31

I think, resale value,

0:31:310:31:32

you will be looking at somewhere between ?625,000 to ?650,000.

0:31:320:31:38

That's all right. Yeah! Yeah, that's all right, actually,

0:31:380:31:40

I'm pleased with that. 'No wonder Pauline is pleased.

0:31:400:31:43

'That is a potential profit of ?97,000, minus taxes and fees,

0:31:430:31:47

'which will come in handy,

0:31:470:31:48

'as they have already bought their next project.

0:31:480:31:51

'So, here's to a long and happy career in developing.'

0:31:510:31:54

We will do all this until Molly finishes uni, and then...

0:31:560:32:00

FINISHES uni? STARTS uni! No, no, no, starts uni!

0:32:000:32:02

Starts uni! And then we quit, and then we just go on holiday forever.

0:32:020:32:07

Just the two of us. Yeah. No children.

0:32:090:32:12

'Telford in Shropshire was built in the 1960s and '70s,

0:32:180:32:22

'but it's actually named after one of my fellow Scots,

0:32:220:32:25

'Thomas Telford, the renowned engineer designed roads, canals

0:32:250:32:29

'and bridges, both here and in Scotland in the 18th century.'

0:32:290:32:33

The property I am here to see is on this estate.

0:32:350:32:37

It is three miles from the town centre,

0:32:370:32:40

and it is really well serviced,

0:32:400:32:41

with lots of shops and schools nearby.

0:32:410:32:44

This is it, it is a one-bedroom flat with a guide price of ?34,000.

0:32:440:32:49

Let's have a gander.

0:32:490:32:50

OK, into the hallway.

0:33:000:33:02

My initial thought is it could do with a bit of a wash.

0:33:020:33:06

Sometimes that makes all the difference.

0:33:060:33:08

There are loads of stains on the doors,

0:33:080:33:10

and needs a good lick of paint.

0:33:100:33:11

The bathroom is a decent size.

0:33:110:33:14

There is no shower there.

0:33:140:33:15

You would definitely need that to come out,

0:33:150:33:17

so completely new bathroom,

0:33:170:33:19

put your shower in the bath...

0:33:190:33:21

..and then on this side, you have a decent sized bedroom,

0:33:220:33:26

and your reception room - I will come to those a bit later.

0:33:260:33:28

An airing cupboard at the end of the hall, OK.

0:33:280:33:32

And into the kitchen, good size.

0:33:320:33:35

Again, needs to come out.

0:33:350:33:37

It's tired. You have got the swirls on the ceiling,

0:33:370:33:41

which really tells you how long ago this was decorated.

0:33:410:33:44

It was all the rage at one point, a good few decades ago -

0:33:440:33:47

the textured wallpaper.

0:33:470:33:49

But this kitchen strikes me as an awkward shape,

0:33:490:33:52

it is like an L shape and I am thinking...

0:33:520:33:55

This is a stud wall, so you have your airing cupboard in here,

0:33:550:33:59

a stud wall, which means it wouldn't be too much of a job to take this

0:33:590:34:03

down and open up this kitchen.

0:34:030:34:06

And people do like an open-plan kitchen area.

0:34:060:34:09

Yes, you would be losing a cupboard,

0:34:090:34:11

but you would be gaining some really nice space.

0:34:110:34:15

Often in a one-bed like this,

0:34:150:34:17

there is not much potential to change anything, really,

0:34:170:34:19

but there is a wee scope for potential right there.

0:34:190:34:22

# This must be the kitchen of my dreams

0:34:220:34:26

# Take a seat in this dream kitchen

0:34:260:34:29

# You can wipe your feet and dry your hair

0:34:290:34:33

# And if you make a wish in this dream kitchen... #

0:34:330:34:37

I think it's fair to say you might need a new door.

0:34:380:34:40

It's a bit of a hotch-potch there of holes and makeshift plasterwork.

0:34:400:34:44

In our one and only bedroom, it's good to see you've got

0:34:440:34:47

double glazing, central heating. It's a good size.

0:34:470:34:50

So you wouldn't struggle to get everything you need in here,

0:34:500:34:53

your double bed, your wardrobe.

0:34:530:34:54

You've got an electric meter in your bedroom.

0:34:540:34:56

You might prefer it in the hall, but I guess it is where it is.

0:34:560:35:00

And then on the same side of the flat you have your reception area.

0:35:000:35:05

Again, a decent size.

0:35:050:35:08

And I can't see too many problems.

0:35:080:35:11

Well, there is a wee spot of damp just there,

0:35:110:35:14

but my guess would be that's due to bad ventilation

0:35:140:35:17

and nobody living here for quite a while.

0:35:170:35:19

But all in all, you have a good find here,

0:35:190:35:22

if you are willing to put in a bit of graft.

0:35:220:35:24

It's amazing what elbow grease can do.

0:35:240:35:26

A good clean, paint, new kitchen, new bathroom,

0:35:260:35:29

and, yes, you could have a solid one-bedroom flat.

0:35:290:35:32

'We asked an agent from the auctioneers who sold the property -

0:35:350:35:39

'guided at 34 grand - to come and give us some information

0:35:390:35:41

'about the market here.'

0:35:410:35:43

In terms of the area, I think you're close to all local amenities.

0:35:440:35:47

You have got schools, shops, bus links, major road links.

0:35:470:35:51

So you are close to everything.

0:35:510:35:53

'Once refurbished, what sort of rental could this property command?'

0:35:530:35:57

For the rental market, I'd probably recommend somewhere in the region of

0:35:570:36:00

?395 per calendar month.

0:36:000:36:03

'And on the sales market?'

0:36:040:36:05

You are probably looking around ?45,000 to ?50,000.

0:36:060:36:10

This is a well built one-bedroom flat,

0:36:120:36:15

and it's in a really good rental area.

0:36:150:36:17

So, it could be a very good investment for someone.

0:36:170:36:20

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

0:36:200:36:22

AUCTIONEER: Back in Telford,

0:36:240:36:26

ground floor flat with one bedroom.

0:36:260:36:28

30,000, on we go.

0:36:280:36:30

30,000 I am bid.

0:36:320:36:33

At 30. At 30,000 I am bid.

0:36:330:36:35

Is it one? At 30.

0:36:350:36:37

One.

0:36:370:36:39

Two. At 32.

0:36:390:36:40

Three.

0:36:400:36:42

34 now.

0:36:420:36:44

At 33,000 for the flat...

0:36:440:36:45

34?

0:36:470:36:49

At 34,000.

0:36:490:36:50

Is it 35?

0:36:500:36:52

Bid's against you in the corner.

0:36:520:36:54

I'll take a half if it will help.

0:36:540:36:56

34 and a half.

0:36:560:36:58

35.

0:36:580:37:00

Another half at 35.

0:37:000:37:02

No, he says.

0:37:020:37:04

For the first time of asking at 35.

0:37:040:37:06

And the second.

0:37:060:37:08

All done, then.

0:37:080:37:09

The third time of asking, 35,000 and selling.

0:37:090:37:12

GAVEL BANGS

0:37:120:37:13

Thank you, sir. Well done, you've bought it.

0:37:130:37:15

'Paying just 1,000 over the guide and getting the flat for 35 grand

0:37:150:37:20

'were Aidan and Ian. They each have their own property letting companies

0:37:200:37:24

'but have set themselves up in a joint venture

0:37:240:37:27

'to renovate properties.

0:37:270:37:29

'They are familiar with this estate,

0:37:290:37:31

'having bought properties here already.

0:37:310:37:33

'So, time to find out what they have planned here.'

0:37:330:37:36

Ian, Aidan? Aidan.

0:37:370:37:39

Aidan! Pleased to meet you, Aidan. And pleased to meet you, Ian.

0:37:390:37:42

Congratulations on your recent purchase.

0:37:420:37:44

Now, where is that accent from?

0:37:440:37:46

Dumfries and Galloway. Dumfries and Galloway!

0:37:480:37:50

So what brings you down here?

0:37:500:37:51

We met each other a couple of years ago and got on really well.

0:37:510:37:55

Thought it'd be a good idea to bring our skills together.

0:37:550:37:58

Because it sounds like you were doing pretty well doing your own

0:37:580:38:00

things individually, but is part of it just, if you do get on,

0:38:000:38:03

it's quite a nice thing to do together? Yeah, definitely.

0:38:030:38:06

It's nice to have somebody to bounce off as well. Yeah.

0:38:060:38:09

And bigger projects sometimes.

0:38:090:38:11

So, what attracted you to this property?

0:38:110:38:14

Had you been to see it before auction?

0:38:140:38:16

No. No. No!

0:38:160:38:18

We know the area. And we know the properties.

0:38:180:38:20

What was your feeling when you came in for the first time?

0:38:200:38:23

Because you came in as owners.

0:38:230:38:25

Well, we had looked through the window, hadn't we?

0:38:250:38:28

And, to be honest, we bought another two which was pretty much the same.

0:38:280:38:33

Yeah. But, yeah, it's...

0:38:330:38:35

..not the best. What are your plans for this?

0:38:360:38:38

Is it to rent or to sell on?

0:38:380:38:40

We have decided we're going to rent it out.

0:38:410:38:43

So we're going to spend some money on it and rent the property out.

0:38:430:38:46

Looking around, I was thinking there is a wee bit of space in the airing

0:38:460:38:49

cupboard which I guess could make a little bit more room in the kitchen.

0:38:490:38:53

Were you thinking along those lines?

0:38:530:38:55

Yeah, I think take the wall out there.

0:38:550:38:57

Maybe just put a table and chairs there.

0:38:580:39:01

To make it a bit more room for a... like a little dining room area.

0:39:010:39:05

Nice new kitchen. Nice new kitchen, yeah.

0:39:050:39:07

Nice new bathroom. Redec, carpets, make sure the electric's OK.

0:39:070:39:11

New doors. New doors.

0:39:110:39:13

A nice home for somebody.

0:39:130:39:15

Do you have a bit of a game plan, where you think,

0:39:150:39:18

when you are at auction, "OK, that is the price,

0:39:180:39:20

"I want this rental yield" -

0:39:200:39:22

is that what you thought about this property?

0:39:220:39:24

Yeah, we had the price in our heads.

0:39:240:39:26

We were not going to go over it.

0:39:260:39:28

We got it for what we wanted to pay.

0:39:280:39:30

What do you plan to spend, what budget do you have?

0:39:300:39:34

Three grand? Four at tops.

0:39:340:39:36

Yeah. And that will get new kitchen, new bathroom?

0:39:360:39:40

New bathroom. Knock the wall down.

0:39:400:39:42

Redec, new carpets.

0:39:420:39:45

So what is your secret,

0:39:450:39:46

because that sounds like that money is going to go quite a long way?

0:39:460:39:50

And I think it's interesting for anyone watching.

0:39:500:39:54

How do you make your money cover all of that?

0:39:540:39:56

What is the secret? Well, we shop around for kitchens

0:39:560:40:01

and get the best deal.

0:40:010:40:03

So, you know...

0:40:030:40:05

And we've got workers that work for us, so...

0:40:050:40:09

That's how we keep costs down, really.

0:40:090:40:11

And do you bring...? We do it quickly. Do it quickly, yeah.

0:40:110:40:13

Two to three weeks, it will be done.

0:40:130:40:16

Two to three weeks? Yeah.

0:40:160:40:17

That's exciting. Yeah.

0:40:170:40:18

Do you have any hands-on graft yourself,

0:40:180:40:22

or do you just leave it to everyone else?

0:40:220:40:23

Leave it to everyone else. Yeah. Just come in and crack the whip.

0:40:230:40:27

'Well, they certainly will be cracking the whip to get this done

0:40:270:40:30

'in two to three weeks. However,

0:40:300:40:32

'it sounds like Aidan and Ian might want it fast but they want it good

0:40:320:40:36

'too, which is always good to hear.'

0:40:360:40:38

I think it's really important to present a property

0:40:400:40:43

that you would pretty much want to live in it yourself.

0:40:430:40:46

So that the tenant, what I find is, looks after it.

0:40:460:40:50

And they do, if you give them something nice that is showing them

0:40:500:40:54

respect, and that is in return, it's given back to you,

0:40:540:40:56

so, yeah, definitely.

0:40:560:40:58

You say you know this area well.

0:40:580:41:00

Is this the area you have stuck to for buying property so far?

0:41:000:41:04

No. We have done other estates

0:41:040:41:08

and we have also done detached properties.

0:41:080:41:13

We work with landlords,

0:41:130:41:14

who just want us to do properties up for them.

0:41:140:41:17

But I'd say at the moment, predominantly Shropshire.

0:41:170:41:21

Yeah. We are always looking out for a deal.

0:41:210:41:24

And you want to make a quick turnaround, make a quick profit,

0:41:240:41:26

so that you can build a bit of an empire together? Yeah. Yeah.

0:41:260:41:29

Try and take over the world.

0:41:290:41:30

'Apart from the two flats they have already tackled on this estate,

0:41:320:41:35

'they have worked in HMOs, convergence,

0:41:350:41:38

'renovations and extensions over the last two years.

0:41:380:41:41

'Seems there is no stopping these two.'

0:41:410:41:43

Do you two get on really well together?

0:41:450:41:47

Have you ever, cos you've worked a wee bit together,

0:41:470:41:49

ever any disagreements?

0:41:490:41:50

No. Not really.

0:41:500:41:52

Not at all. We complement each other really well. Yeah.

0:41:520:41:54

Do you have nicknames for each other?

0:41:540:41:56

Not yet.

0:41:560:41:57

Not yet!

0:41:570:41:58

Is it all work, work, work for you boys or do you hang out?

0:42:010:42:05

No, we are...

0:42:050:42:07

We are in a golf society,

0:42:070:42:09

so every third Wednesday in the month we go and play golf

0:42:090:42:13

all over the country, which is great fun.

0:42:130:42:16

And we have gone on holiday together, haven't we?

0:42:170:42:20

Yeah.

0:42:200:42:21

So, yeah, playing golf.

0:42:210:42:24

Hang about quite a bit. The wives don't quite like that.

0:42:240:42:27

We seem to get away with it quite well. Yeah.

0:42:270:42:29

That's nice that you go on holiday together, with your wives as well?

0:42:320:42:36

Sounds a bit of a bromance, it's nice.

0:42:360:42:38

A bromance! Yeah!

0:42:380:42:40

# Love is in the air...

0:42:430:42:45

# Everywhere I look around...

0:42:460:42:48

'I'm glad these two are good sports as well as good mates.'

0:42:480:42:52

# Love is in the air

0:42:520:42:54

# Every sight and every sound... #

0:42:540:42:56

Can't wait to see what you do with the place,

0:42:590:43:01

and really quickly by the sounds of it. Best of luck. Great to meet you.

0:43:010:43:04

And you, Martel. Thanks very much. Thank you, Martel. Thanks.

0:43:040:43:08

Aidan and Ian are seasoned property developers,

0:43:080:43:11

and this flat should not pose too much of a problem for them.

0:43:110:43:13

But what I'm really interested to see is how that blossoming bromance

0:43:130:43:17

develops. You can find out later in the show.

0:43:170:43:20

Earlier we saw property number one,

0:43:240:43:26

but how are the other two getting on? Yes.

0:43:260:43:27

Did their best laid plans go well or were they forced to rethink?

0:43:270:43:32

Let's find out.

0:43:320:43:33

'Now we return to Derby,

0:43:360:43:38

'where I had a look at two separate retail units which had a guide price

0:43:380:43:42

'of 150 grand.'

0:43:420:43:43

'One was already rented out to a bookies,

0:43:450:43:48

'but it was the unoccupied part I was interested in.'

0:43:480:43:50

Wow! HE LAUGHS

0:43:520:43:54

Look at the size of this place.

0:43:540:43:56

Yes, you might have to put a lick of paint up and change the flooring

0:43:560:44:00

in here, but it is in very good condition.

0:44:000:44:03

'With the other unit already bringing in rents,

0:44:040:44:07

'this unit looked like it could be split in two.

0:44:070:44:10

'And its position on a busy road with promising retail potential

0:44:100:44:13

'was encouraging.'

0:44:130:44:15

When it comes to making profit, that could be making profit,

0:44:160:44:19

this could be making profit

0:44:190:44:20

and the bookies already are paying ?6,000 a year.

0:44:200:44:25

'And for the more ambitious investor,

0:44:260:44:29

'why stop on the ground floor?'

0:44:290:44:30

Having walked around the area,

0:44:300:44:32

I have noticed that whether it's residential or commercial,

0:44:320:44:35

most of the buildings are on two floors.

0:44:350:44:37

It says to me this place has the potential to be built on as well.

0:44:370:44:42

'It was funeral directors Jaz on the left and his brother Manny

0:44:440:44:48

'who brought these premises for ?177,000,

0:44:480:44:52

'as part of their business expansion.'

0:44:520:44:54

Within this space we are in now,

0:44:540:44:56

we hopefully are splitting it into smaller rooms, so office space,

0:44:560:45:00

arrangement areas. We wish to get a mortuary in this space also.

0:45:000:45:05

'While retaining the existing tenant next door,

0:45:050:45:08

'they plan to divide a vacant area into two,

0:45:080:45:11

'keeping half for their business and leasing the other half out.'

0:45:110:45:14

We have already got, like, a split wall in between the two units.

0:45:140:45:18

We will put a shop front in

0:45:180:45:19

and make that another rental unit.

0:45:190:45:21

'The brothers hope to complete the project within five months,

0:45:230:45:26

'and at a cost of no more than 60 grand.

0:45:260:45:29

'11 months later, we are back to catch up on their progress.'

0:45:290:45:33

'The main development which will house the funeral business

0:45:440:45:47

'is almost complete.

0:45:470:45:49

'What was a large, open-plan unit has been subdivided,

0:45:520:45:56

'but there is still a lot of work to do.

0:45:560:45:58

'When complete, they will have created

0:45:580:46:00

'the different zones required.'

0:46:000:46:02

'These include a large reception, a more intimate family area,

0:46:030:46:08

'private offices, a chapel room, and at the back,

0:46:080:46:12

'a preparation area and a refrigeration room.

0:46:120:46:16

'Next door, the refurbishment of the retail unit is ongoing,

0:46:160:46:20

'but it is now completely separate from the rest of the building.

0:46:200:46:24

'It has been a busy time for the brothers

0:46:240:46:26

'and while Manny takes care of business,

0:46:260:46:28

'Jaz has managed to take a bit of time out to explain how this project

0:46:280:46:32

'has gone.'

0:46:320:46:34

We are probably about three weeks away from actually opening the

0:46:340:46:36

doors to the public. There's a few details that are missing.

0:46:360:46:39

We are still waiting on some specialist equipment in the mortuary

0:46:390:46:42

to be delivered and fitted.

0:46:420:46:45

The signage outside still needs to be fitted.

0:46:450:46:47

And the rest of things like the furniture, etc,

0:46:470:46:49

which will be coming in within the next week.

0:46:490:46:51

'Things are obviously not that advanced next door,

0:46:540:46:57

'but the pace will be picking up soon.

0:46:570:46:59

'And Jaz reckons it won't be empty for much longer.'

0:46:590:47:03

We are in negotiations with a restaurant, currently,

0:47:030:47:05

who are waiting upon planning permission before we finalise

0:47:050:47:09

that rental agreement.

0:47:090:47:10

'And the brothers have been true to their ethos

0:47:110:47:14

'of using local resources.'

0:47:140:47:16

Everything you see around you has been built and bought locally,

0:47:160:47:20

and built by local Derbyshire tradesmen.

0:47:200:47:23

We've been going through a recruitment process currently,

0:47:230:47:25

and we are close to employing some people,

0:47:250:47:27

and they will be people locally from the Derbyshire area.

0:47:270:47:30

'Looking from the outside, there has been no move to expand upwards,

0:47:320:47:37

'but that does not mean it won't happen.'

0:47:370:47:39

We've actually had the builders and surveyors out to have a look

0:47:390:47:41

at the current structure work.

0:47:410:47:43

They actually agree with us that they think it's feasible

0:47:430:47:46

to build up, which is fantastic news.

0:47:460:47:48

We are actually planning on building a residential site upstairs.

0:47:480:47:54

But probably not in the next few years,

0:47:540:47:56

so it's a project down the line.

0:47:560:47:59

'It has taken 11 months to reach this point,

0:47:590:48:01

'more than double their original five-month estimate.'

0:48:010:48:04

It has been a slow project.

0:48:040:48:07

The biggest hurdle we have found was trying to juggle our work along with

0:48:070:48:11

managing this project,

0:48:110:48:13

which we probably did not anticipate would take so long.

0:48:130:48:16

'And how about juggling that budget?

0:48:160:48:18

'Originally, they hoped to spend under 60 grand.'

0:48:180:48:21

We have been very good with our budget.

0:48:230:48:25

We are currently on about ?45,000.

0:48:250:48:27

We are anticipating another probably ?5,000 that we'll be spending

0:48:270:48:32

in the next couple of weeks. We will still be under,

0:48:320:48:35

significantly under the budget that we first anticipated.

0:48:350:48:38

'This is the fourth branch of the brothers' business.

0:48:400:48:43

'So they are not looking for a quick profit.

0:48:430:48:46

'But we've asked two local estate agents along to give us their

0:48:460:48:50

'thoughts on this 227 grand investment.

0:48:500:48:54

'First the agent who saw it before.'

0:48:540:48:56

Quite significant changes, since my last visit here a year or so ago.

0:48:560:49:02

Interesting concept, they have a funeral parlour now running adjacent

0:49:020:49:06

to what will potentially be a restaurant.

0:49:060:49:08

The layout, there are a lot of rooms here to use which you would imagine

0:49:080:49:11

is important. So there is plenty of storage space, showrooms,

0:49:110:49:14

office rooms, and the finish is really good.

0:49:140:49:16

It's clean, it's tidy and it's neat.

0:49:160:49:19

It has just got a nice feel to it.

0:49:190:49:21

'So, positive views from the agents.

0:49:210:49:23

'And since it has been nearly a year since we visited,

0:49:230:49:26

'has the value of the units increased

0:49:260:49:29

'bearing in mind the brothers paid 177 grand at auction?'

0:49:290:49:32

I feel it is likely to achieve in the region of sort of ?250,000.

0:49:340:49:38

The property is quite unique, there aren't many direct comparables,

0:49:380:49:41

but I would expect this to market in the region of ?245,000.

0:49:410:49:45

'After a total spend of ?227,000,

0:49:450:49:49

'that top value of 250 grand leaves Jaz and Manny a potential 23 grand

0:49:490:49:55

'profit. Not forgetting to add the rent of five and a half grand

0:49:550:49:59

'they have received so far from the bookies next door.

0:49:590:50:02

'So, what does Jaz make of the figures?'

0:50:020:50:05

The resale value is interesting.

0:50:050:50:06

I think it's exactly where we expected it to be at this stage

0:50:060:50:09

of the project. However,

0:50:090:50:11

it was not a thing that we really considered, selling this project.

0:50:110:50:14

However, we don't know what might happen in the future.

0:50:140:50:17

'And what about the rental income?'

0:50:180:50:20

On the rental market, I would expect the entire building to achieve

0:50:200:50:24

in the region of ?20,000 a year.

0:50:240:50:25

It's probably likely to achieve

0:50:250:50:28

in the region of ?15,000 to ?20,000 per year.

0:50:280:50:31

They are quite significantly lower than what we actually are

0:50:310:50:33

achieving on this site.

0:50:330:50:35

We will be getting close to ?30,000 across all three sites.

0:50:350:50:39

'Jaz is currently negotiating rents on the other two units,

0:50:400:50:44

'and his business will pay rent on this one.

0:50:440:50:47

'If he is right about that 30K figure, that would mean a yield

0:50:470:50:50

'of 13%. So, how is Jaz feeling about his new branch right now?'

0:50:500:50:56

It's just itchy feet now.

0:50:570:50:59

Can't wait to get it open.

0:50:590:51:00

'Time to head back to Telford in Shropshire where I saw this

0:51:060:51:09

'one-bedroom ground floor flat with a guide price of ?34,000.'

0:51:090:51:13

'Now, I'm not afraid of getting my hands dirty, but...'

0:51:140:51:18

It could do with a bit of a wash.

0:51:180:51:20

Sometimes that makes all the difference.

0:51:200:51:22

There are loads of stains on the doors

0:51:220:51:24

and it needs a good lick of paint.

0:51:240:51:25

'The grotty bathroom was no different, and to be honest,

0:51:270:51:30

'needed a total refit.

0:51:300:51:32

'There was a decent size double bedroom

0:51:320:51:34

'and a fairly spacious living room.'

0:51:340:51:36

'But there was a bit of scope to shape things up

0:51:390:51:42

'when it came to the kitchen.'

0:51:420:51:44

This is a stud wall, so you have your airing cupboard in here,

0:51:460:51:49

your stud wall, which means it would not be too much of a job

0:51:490:51:53

to take this down and open up this kitchen.

0:51:530:51:56

AUCTIONEER: 35...

0:51:560:51:57

'When it came to auction day,

0:51:570:51:59

'property developing duo Ian and Aidan snapped up the grubby

0:51:590:52:03

'ground floor flat for 35 grand,

0:52:030:52:06

'a mere ?1,000 over the guide price.

0:52:060:52:08

'So, their combined experience was already paying off.

0:52:110:52:14

'But it was not just about business for these two.'

0:52:140:52:17

We have gone on holiday together, haven't we?

0:52:190:52:21

Yeah.

0:52:210:52:23

So, yeah, we play golf.

0:52:230:52:25

Hang about quite a bit. The wives don't quite like that.

0:52:250:52:28

We seem to get away with it quite well.

0:52:280:52:30

Yeah. THEY LAUGH

0:52:300:52:32

I sense a bit of a bromance. It's nice. Yeah.

0:52:330:52:36

A bromance! Yeah!

0:52:360:52:38

# Ra-ra-ah-ah-ah-ah

0:52:380:52:40

# Ro mah Ro-mah-mah

0:52:400:52:42

# Gaga Ooh-la-la!

0:52:420:52:44

# Want your bad romance... #

0:52:440:52:47

'This bromance was leaving nothing to chance.

0:52:480:52:51

'With the help of their builders,

0:52:510:52:53

'they hoped to have the property ready for rental

0:52:530:52:55

'in two to three weeks, and for a budget of four grand.

0:52:550:52:59

'We are back just one month later to see how they got on.'

0:52:590:53:02

'The kitchen has been brought back to life with the help of some trendy

0:53:120:53:15

'tiles and fab textiles.

0:53:150:53:17

'As I suggested, the airing cupboard has been used to expand the kitchen,

0:53:170:53:22

'allowing space for a table.

0:53:220:53:23

'And new units, fitted appliances

0:53:230:53:26

'and stylish worktops really complete the look.'

0:53:260:53:29

'The bathroom looks spic and span.

0:53:340:53:36

'The new suite and vanity unit add a tad of class

0:53:360:53:39

'and those accent tiles really make the decor pop.

0:53:390:53:43

'The bedroom is no longer dirty, but divine.

0:53:470:53:50

'And new wall and floor coverings really smarten the place up.

0:53:500:53:54

'The living area is looking much more relaxing, too.

0:53:590:54:01

'Freshly decorated in neutral tones, it's a head-to-toe makeover.'

0:54:010:54:06

'Did anything original make the cut?'

0:54:070:54:11

The only thing we saved was the bath, wasn't it?

0:54:110:54:13

The electrics were OK.

0:54:130:54:15

We had them checked. The boiler was OK. Yeah.

0:54:150:54:17

And we kept a few spiders, did we?

0:54:170:54:19

No!

0:54:190:54:21

'Creepy-crawlies don't seem to have put off their builders,

0:54:220:54:26

'who have done a fantastic job.

0:54:260:54:28

'Now, is that because they had top-notch project managers?'

0:54:280:54:31

I think I come once.

0:54:320:54:34

We... Well, you were on holiday. Yeah!

0:54:340:54:36

So, effectively...

0:54:380:54:39

..they don't need hands-on management.

0:54:410:54:43

They like to be left to get on with it.

0:54:430:54:45

They know what they are doing.

0:54:450:54:47

What's really important is that we get all the materials ready for them

0:54:470:54:50

and get it delivered on-site.

0:54:500:54:52

So, we're in and out, but we're not heavy management.

0:54:520:54:54

'Considering they stuck to that rapid two to three week turnaround,

0:54:560:54:59

'it seems like everything went according to plan.

0:54:590:55:02

'What about that four grand budget?'

0:55:020:55:05

?4,002.36.

0:55:050:55:09

By the ?2 we went over budget, yeah,

0:55:090:55:11

he did give me a bit of a telling off because I went overboard

0:55:110:55:14

on the tiles.

0:55:140:55:15

'Could this mean trouble in paradise? Not to worry, Aidan,

0:55:150:55:19

'I'm sure you can absorb the two quid overspend

0:55:190:55:21

'with the rental income.'

0:55:210:55:23

So, the plan is this afternoon we get it furnished,

0:55:240:55:28

and tomorrow, people moving in.

0:55:280:55:31

'So now seems like a good time for some values.

0:55:320:55:35

'But first, let's see what two local estate agents thought of the changes

0:55:350:55:39

'to the flat, starting with the agent who saw it first.'

0:55:390:55:43

I think there's been some substantial improvements

0:55:430:55:46

that have been made.

0:55:460:55:47

You know, from when we were last previously here,

0:55:470:55:49

we recommended the kitchen,

0:55:490:55:51

the bathroom, you know, to have improvements.

0:55:510:55:53

They have certainly taken that on board.

0:55:530:55:55

Obviously the brand-new kitchen/diner, you have extra space.

0:55:550:56:00

So, you know, if somebody wants to sit and enjoy a meal, they have

0:56:000:56:02

obviously got space to do that now which is good.

0:56:020:56:04

The finish for this type of property,

0:56:040:56:07

I would say they have got spot on.

0:56:070:56:09

You wouldn't want to go too overboard with the finish because

0:56:090:56:12

of the resale, there is a limited price that you could reach.

0:56:120:56:16

And also for the rental market,

0:56:160:56:17

which probably is best suited for this type of property.

0:56:170:56:20

'What kind of figure could the house achieve on the sales market,

0:56:220:56:24

'considering Ian and Aidan's total investment of ?39,000?'

0:56:240:56:28

I think from the sales market perspective,

0:56:310:56:33

you are probably looking somewhere in the region of ?45,000 to ?50,000.

0:56:330:56:38

Now the property has been renovated, being a ground floor apartment,

0:56:380:56:42

I would suggest marketing price of around ?50,000,

0:56:420:56:47

to achieve between ?48,000 and ?50,000.

0:56:470:56:50

'Not bad. That's a potential profit of 11 grand minus taxes and fees.

0:56:500:56:56

'But Aidan and Ian already have a tenant lined up!

0:56:560:56:59

'So what did agents think they should be achieving

0:56:590:57:02

'on the rental market?'

0:57:020:57:04

I think for rental purposes,

0:57:040:57:06

you are probably looking somewhere in the region of ?375 to ?400

0:57:060:57:10

per calendar month.

0:57:100:57:11

If you were to put this on the rental market today,

0:57:110:57:14

I would suggest it rental income

0:57:140:57:16

of around about ?400 per calendar month.

0:57:160:57:18

That's OK. Yeah.

0:57:180:57:20

But we have already rented for 425.

0:57:200:57:23

We are happy with that. Yeah.

0:57:230:57:24

I think the condition of it warranted slightly more.

0:57:240:57:27

'The figure of ?425 per calendar month the guys would be achieving

0:57:300:57:34

'works out a whopping yield of 13%,

0:57:340:57:37

'showing us this bromance is a match made in heaven.

0:57:370:57:40

'So, do they have any top tips for potential investors out there?'

0:57:410:57:44

Make sure that the boiler is OK.

0:57:460:57:48

Make sure you understand the properties you are buying

0:57:480:57:52

and the market that you are aiming for.

0:57:520:57:55

And within probably 5% to 10%,

0:57:550:57:58

exactly what you are going to spend on it.

0:57:580:58:00

And if you are not sure, give us a call.

0:58:000:58:02

Well, that's the last of today's property stories.

0:58:060:58:08

But there are many, many more to share with you.

0:58:080:58:10

And the best bit is that every project tells its own story.

0:58:100:58:14

Yes, join us again here on Homes Under The Hammer.

0:58:140:58:16

We will have loads more. See you.

0:58:160:58:18

Bye-bye. Goodbye.

0:58:180:58:19

What makes you two different from each other?

0:58:460:58:49

Um, we both live on different roads.

0:58:490:58:53

His favourite food is apples, my favourite food is cucumber.

0:58:530:58:56

Both...

0:58:560:58:58

She never stops talking!

0:58:590:59:02

Oh, no, we're not, look.

0:59:020:59:04

Download Subtitles

SRT

ASS