Episode 30 Homes Under the Hammer


Episode 30

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Transcript


LineFromTo

Hello and welcome to the show.

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Now, buying a property can sometimes feel like a long, drawn-out affair.

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Sometimes it feels like it takes forever to get that deal done.

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Yes, however, there is one way that can prove quicker and easier.

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Yes, if you want to get the deal done ASAP,

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then head down to your local property auction house.

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Property developing might sound simple.

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You buy somewhere, you do it up, and you sell it for a profit.

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-Sometimes, it is.

-Yeah, but those cases are few and far between.

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Most people can expect a few bumps along the way.

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Let's find out if today's purchasers

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managed to navigate their projects successfully.

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Here's what they bought.

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In Margate, Kent, where does this lot rank on my property chart?

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I've seen worse.

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Actually, not much worse.

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Whereas Lucy gives this Shepherd's Bush flat a pretty high score.

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Tick, tick, tick. It's a good Central London pad.

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And in Birmingham, I get to grips with the scale of this task.

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This plot of land is pretty small.

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I mean, in parts, I'd guess no more than five or so metres width.

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All these properties have been sold at auction and

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

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went under the hammer.

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-GAVEL BANGS

-Yours at 78, sir.

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This is Margate on the Kent coast.

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Back in the 1800s, famous painter JMW Turner was a

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regular visitor to this seaside town,

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and was inspired enough to paint its skies and seascapes.

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Now, Margate is undergoing an era of regeneration.

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There is now a world-class art gallery

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named in Turner's honour on the seafront,

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and a growing arts scene and cafe culture.

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Well, close to the seafront and all that redevelopment is the property

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I am here to see. It's not a house, it's not a bungalow,

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it's not a plot of land, but it's down this lane.

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This little back lane seems really tucked away,

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but we're actually only

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a few minutes' walk from the seafront and the town centre.

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The lot in question is at the end.

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I am going to intrigue you further,

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because the guide price was just 18,000 to 20,000 quid.

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What does that buy you? Well...

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..this.

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Well, you didn't expect that much, did you?!

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It's a former workshop.

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It looks pretty dilapidated.

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Well...

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I've seen worse.

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Actually, not much worse.

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There's the good, the bad, and then there's the plain ugly.

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The tatty, worn render is more OK Corral than seaside abode,

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and the condition of the lane at

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this end has really deteriorated into more of a dirt track.

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So, realistically, what could you do with it?

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Well, it is certainly not very big, so...

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I don't know.

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Maybe you could store your car here.

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That would work. Everybody needs storage space,

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or maybe somewhere to store rubbish.

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That's a starting point. How about renting it out for somebody else to

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store their car? Yeah, that would also work.

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How much is it going to get you?

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I don't know, maybe 30 quid, 40 quid, 50 quid a month?

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Depends what they are around here.

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How about using it as a building plot?

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Well, it's only 0.007 of a hectare, or 0.01 of an acre,

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so it's not exactly very big.

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Could you squeeze a house on that?

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I really don't know.

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# Nothing better to do When I'm stuck on you

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# I'm still in here trying to figure it out... #

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It's not often I'm flummoxed, but I am.

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Perhaps looking inside might inspire me.

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So, what do you find when you walk through the doors?

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Well, obviously it is just a disused garage.

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It smells like a disused garage, it looks like a disused garage,

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it really is in a right old state.

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But the plot itself is quite surprising.

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It goes back a reasonable distance,

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another 20 or so feet from where I am, so it's not a bad size.

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Using it as it is, well, there's obviously electricity.

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I do not know if there's water, I can't immediately see,

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so it's good to know that there is at least one service here.

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Now, I think pretty much everything relies on knocking it down and

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building something else.

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But, build what, exactly?

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There is what looks like a recent development around here,

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so my instinct would usually say, "Yes, build a house."

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But it's a small plot, and it might be tricky for access, and of course,

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it's reliant on getting planning permission.

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We asked a local estate agent to have a look at this lot,

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guided at £18,000 to £20,000.

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Does she think it has any potential?

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Potential is the big one!

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Yeah, no, it's got masses of potential.

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You can see along the street as well some other developments that have

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popped up, which always encourages, you know,

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the rest of the area to be developed along with it.

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It's got a good little site on its own - a nice,

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detached property would sit quite well here.

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So, yeah, it's got a lot of potential.

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OK, the "potential" word.

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But what does the agent think

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you could fit in to what is a rather modest plot?

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Providing that planning was issued, I could see a nice sort of

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two-bedroom detached property with a small garden at the back.

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I don't know necessarily if there would be any specific issues that

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they'd have. Obviously, there are a lot of properties.

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Parking and things like that might be a little bit of an issue.

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There are pros and cons here, and it doesn't scream, "Planning granted".

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But if it was, what could a two-bed

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detached house be worth on the sales market?

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If you built a very high-spec nice,

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detached two-bedroom property,

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you could achieve between £195,000 to £200,000.

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And what about the rental market?

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A two-bed property in the immediate area for rental normally achieves

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between £750 per calendar month to £800 per calendar month.

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So, what do we think about this one?

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Well, for £18,000 to £20,000,

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it could come into that category of hope.

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A hope category, yes,

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you hope you might be able to achieve something with this place.

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It hasn't got planning permission at the moment,

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but maybe you could get it.

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Or, you could use it as a garage, yeah.

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At the end of the day, it's going

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to be down to whoever bought it when it went under the hammer.

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A former workshop with potential.

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Start me where you will on that one.

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Do you want to come in at £20,000, someone?

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£20,000 to get us on the way.

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£20,000 is in the room and I'm on the way.

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At 22 now, do I see?

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A £20,000 bid, I have got.

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22 at the back, 25 if you like.

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24?

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No? 24, I've got.

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26, now, may I say?

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At £24,000, 26.

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28? Are we all done at £26,000, then?

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£28,000 bid, I've got.

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Fill it up to 30 if you wish.

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At £30,000. These little lots don't come along very often.

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£30,000 bid, I've got, and 2 I'm looking for now.

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At £30,000 bid, I've got, and 2 I'm looking for

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I'm selling for the first time, then at 30.

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Second time at 30.

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Third and final time, £30,000, seated at the back, all done...

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Yours, sir, and it's T426.

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Thank you.

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# Let's go, girls! #

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It wasn't a sir, but actually,

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26-year-old Kirsty who bought the garage

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with her husband, Tom, for £30,000.

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I caught up with her to see what they had in store for their first development project.

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-Kirsty, great to meet you.

-Hi.

-Congratulations.

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-Thank you.

-So, tell me why you wanted to buy this place.

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Well, it's been a long-term goal of ours to go into property and

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investments. We've worked really hard at getting some money together,

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-and this is where we started.

-So, what is the big objective of this?

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Is it to try and get planning permission for something?

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Yes, hopefully a two-bedroomed house.

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Right, so what was it about this place other than, I guess,

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the price, that really attracted you?

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The price! It's a chance that we took as well.

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It's got a risk to it, but it's local to us, we know the area,

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and we're pretty positive that we can get planning, and hopefully,

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move onto the next.

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So, it seems Kirsty and Tom are quite single-minded,

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and are chasing a property development future.

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But let's stay with this one for now.

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They are hoping to build a two-bed house, so with that positive attitude,

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they must have spoken to planning, surely.

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-No.

-Ah. So, what are you basing your positivity

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that you might be able to get that on?

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Well, down the road there, there's exactly the same -

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a garage that's now been converted into houses.

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And then next door to us, again, they've got houses.

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Right, so within the area, similar things have been done.

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And it is very dilapidated.

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I would've thought the council would be supportive of it being brought

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-back into use.

-I hope so.

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Kirsty and Tom are hoping to get planning permission to build a

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two-bed town house, with parking underneath and living accommodation on the first

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and second floors. It's not dissimilar to the other properties on this

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street, but it's definitely a gamble.

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At least if planning is granted, they'll be off to a flying start.

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-Well, my husband is a builder.

-Oh, that works.

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And we have also found one or two properties for investors beforehand,

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so we have found them for other people. So it was our turn now.

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Right, OK. So, what about preliminary plans?

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-Have you got some ideas?

-Well, we've done a few drawings,

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and we've spoken to a local architect who is hopefully going

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to come down and take us through the next steps.

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Right, OK. So, what's the budget?

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70 to 75.

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Right, you paid £30,000 for it, so that's about 100-odd.

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What if you got what you wanted?

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Have you any idea what it might be worth?

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I'm hoping 140, 160 at a push.

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OK, so maybe the 40 to 60-grand profit if you can get what you need.

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What are you going to do if planners say, "Absolutely not".

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Then, our plan B is to build a double garage on it, and if, in the future,

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any laws change, we can then maybe change the use of the garage.

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Right, OK. What would you do with a double garage if you built it?

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It will be used as sort of an office space for now,

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and hopefully long-term...

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For you,

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-or rent it out?

-Rent it out.

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Great. What's the timescale for what you're planning?

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A year, because of my husband being a builder,

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he's going to do it in his spare time.

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Right, OK, are you excited about it all?

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Yeah, hopefully. I'm looking forward to it and seeing what the future holds.

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But mostly, it's going to get knocked down, clear plot of land,

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and then you'll take from there.

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-Definitely.

-Well, listen, good luck with it.

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-I'm looking forward to seeing how you get on.

-Thank you.

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Well, it's potentially a £30,000 gamble for Kirsty and Tom.

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There is no planning permission,

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there's not even an outline for planning permission.

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There isn't even a conversation with the planners to see if it even might

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be vaguely possible, sort of, permission.

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Will they get it?

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You know, there's lots of money to be made if they do.

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You can find out how it all goes later in the show.

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Lucy is in bustling Shepherd's Bush in West London.

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And this is an area that has seen a great deal of change over the years.

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At the heart of Shepherd's Bush lies Shepherd's Bush Green.

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And it is just down the road here.

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It's thought the name dates back almost 400 years,

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and refers to its use as a stopping off point for shepherds who were

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herding their flocks to Smithfield market in London.

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There is no need to flock to Central London now,

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because there are plenty of shops right on your doorstep,

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with a modern shopping centre and a more traditional market, too,

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though today, we are more concerned

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about what's in store on the property market.

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So, what could a shopping trip to the auction offer you in this area?

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Well, for a guide price of £360,000, it's this one-bedroom ground floor

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flat, and it's situated right here in this Victorian terrace.

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Looks promising on the outside.

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# I wanna go...inside

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-# How about

-Inside... #

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It's a little bit of a tight squeeze

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getting in this Victorian conversion,

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but you've got a good-sized double there, which is great.

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And into the sitting-room, the lounge,

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whatever you like to call it, but what a lovely room.

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Now, straightaway my checklist is, lovely bay window, tick,

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although you might want to upgrade those windows,

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because I noticed there's a school over the other side of the road.

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It could get a little bit noisy during term time.

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But a great space, you've got ceiling height.

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You could put a nice fireplace and surround there.

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There's loads you could do to upgrade this room, and it feels

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solid, it's got character. Yes, very nice indeed.

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# I'd like to say Baby, you so nice... #

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Well, this long, winding corridor certainly makes this flat feel a lot

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more spacious than it is. You've got a rather small bathroom.

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I think it's one of the smallest baths I've ever seen!

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And everywhere in this flat, well,

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it's just covered floor to ceiling with woodchip. Look!

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And it looks like it's been on for a million years.

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You'll never get that stuff off.

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And the kitchen at the back of the property,

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just where I like the kitchen.

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Not the largest I've seen.

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In fact, I think you might be able to extend to the side.

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And I'm wondering whether or not you can get some lovely bifold doors

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in there, or even something a little bit more traditional.

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But is it worth it? Does it have a nice enough garden?

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Let me check.

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Well, the good news is, this flat has sole use of this garden.

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And what a lovely little garden.

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Now, look, it's not the hugest of spaces, but this is London.

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You're right in the action of everything here,

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and I think it's got potential.

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Put some nice bi-folding doors here. Can you imagine?

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And still have enough space to sit out here and have a barbecue.

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So, yes, tick, tick, tick, it's a good central London pad.

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Bear in mind, though, this is a leasehold flat,

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so you will need the freeholder's permission to do any work.

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There are only 99 years left on the lease, and perhaps more worryingly,

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there are some damp issues.

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This is more of a pad fit for a frog at the moment.

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# Lady, kiss that frog... #

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We have asked a local estate agent

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to hop on over and give it a once over for us.

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# Jump in the water... #

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Now he has had a look around,

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what are his thoughts on this one-bed flat guided at £360,000?

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# Splash, dash, heard your call... #

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If this property was mine, the first thing I would do is extend it.

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The potential to the side, which is wasted space, is massive,

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and I think also with the build line,

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you could go a bit further out as well,

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so what we call it in the trade is a wraparound extension,

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and you would be able to extend from a one-bedroom, old,

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grotty flat to a really beautiful two-bedroom flat.

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So, if the full side and rear extension was done,

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I would see this become the master bedroom, followed by another bedroom,

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then a small bathroom in the middle going onto light well,

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and then the rear would be a really

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nice, big, open plan kitchen and living area,

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and then some nice bifold doors leading to the garden.

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That sounds like a good plan, but remember,

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you'll likely have to get planning permission for any extensions here.

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It will consume both time and money,

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so it all depends if you want a quick rental turnaround or more

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longer-term growth.

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What do the numbers say?

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If I was going to renovate it and keep it as a one-bedroom,

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which I wouldn't recommend, I think it would sell for about £400,000.

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And if you decided to rent it,

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you'd probably get about 1,300 per calendar month.

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The really exciting potential for this is to make it into a really

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nice two-bedroom apartment, reconfigure it,

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and I could see it selling for about £750,000.

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It's a good-sized one-bedroom flat.

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Yes, it needs a bit of work, but with the potential for extension,

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well, I think it could easily become a two-bedder.

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It's in an up-and-coming area, so there isn't anything to bleat about.

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Let's see who flocked to the auction for this property when it went under

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the hammer.

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Who would like to kick off on this?

0:17:170:17:19

I don't know... Shepherd's Bush, start at 300,000.

0:17:210:17:24

I am not going to go below 300, so 300, anywhere?

0:17:240:17:28

300 with you.

0:17:280:17:29

Anyone else?

0:17:290:17:31

305. 310. 315 on the phone?

0:17:310:17:35

315. 320 in the room.

0:17:380:17:41

325 on the phone.

0:17:410:17:43

This Shepherd's Bush lot had plenty of interest from the room,

0:17:430:17:46

and the phone bidder. We rejoin the bidding at £350,000.

0:17:460:17:50

350? 350

0:17:500:17:53

in the room. 355 to the phone.

0:17:530:17:55

355.

0:17:550:17:58

360 in the room.

0:17:580:18:00

360 with you.

0:18:000:18:02

362.5 in the room, yeah? 362.5.

0:18:020:18:06

365? 365

0:18:060:18:09

with you, yeah? 365 with you.

0:18:090:18:12

367.5. 367.5.

0:18:120:18:15

370 on the phone.

0:18:150:18:17

If not, it's going at 367.5 here.

0:18:170:18:22

First time, second time, third and last time, if you're all done...

0:18:220:18:28

-GAVEL BANGS

-Sold, 367.5.

0:18:280:18:31

Unfortunately, in the crowded auction room,

0:18:310:18:34

we didn't manage to spot the successful bidder, paying £367,500.

0:18:340:18:40

But Ibrahim, who bought the flat along with his business partners,

0:18:400:18:44

came along to chat to Lucy back at the property.

0:18:440:18:47

-Congratulations.

-Thank you.

0:18:490:18:50

So, Ibrahim, tell me, why did you want this flat in particular?

0:18:500:18:53

Well, it's mainly the location, really.

0:18:530:18:55

We looked at a couple of properties in this area, and the guide price,

0:18:550:18:59

and what we went up to, was within our budget.

0:18:590:19:02

It was a good buy. I mean, there's a lot of work to be done,

0:19:020:19:04

-but there's a lot of potential as well.

-So, you talk about potential.

0:19:040:19:07

How can you add value to a property like this,

0:19:070:19:10

and how are you going to in particular?

0:19:100:19:11

We're going to do a full refurbishment inside,

0:19:110:19:14

but the main works is going to be the extension in the garden.

0:19:140:19:17

We're going to have a side extension and a back extension that will extend the

0:19:170:19:21

kitchen, which will accommodate a kitchen and a living room together.

0:19:210:19:25

-It's just going to be an amazingly light filled room.

-Yes, open...

0:19:250:19:29

-Open space.

-And I think it will work having that living, kitchen,

0:19:290:19:33

dining all being zoned off in a rather large space.

0:19:330:19:36

-Oh, definitely.

-And that will allow you to have the two bedrooms.

0:19:360:19:39

-Yes.

-And I think it will be the selling point of the flat.

0:19:390:19:42

Definitely. I mean, it will make it easier in terms of planning as well.

0:19:420:19:45

There has been some planning issues. We have to apply for planning permission

0:19:450:19:48

and consent from freeholders as well,

0:19:480:19:50

but there are a lot of other properties that have the same sort

0:19:500:19:53

of proposals as what we are proposing,

0:19:530:19:55

so we shouldn't have much of a problem, really.

0:19:550:19:58

Ah, yes, planning, which means paperwork.

0:19:580:20:00

Mountains of it, no doubt.

0:20:000:20:02

Normally something most developers dread, but not Ibrahim.

0:20:020:20:06

His main day job means he and his business partners can push the pens,

0:20:060:20:10

dot the Is, and cross the Ts.

0:20:100:20:13

Basically, me and my partners, we're all solicitors, right?

0:20:140:20:17

So we do a lot of conveyancing, i.e. property, for clients,

0:20:170:20:23

so we have been seeing potential anyway. People buying and selling.

0:20:230:20:26

So we thought, let's get into it as well.

0:20:260:20:28

And for anybody watching this,

0:20:280:20:30

would you advise anybody buying at auction, they must see their

0:20:300:20:33

solicitor and check it out with their solicitor first?

0:20:330:20:35

It's a must, but I am sure a lot

0:20:350:20:38

of people are not going to listen to it. It's a must.

0:20:380:20:41

-I agree.

-Just spend a couple of hundred pounds,

0:20:410:20:44

pay a solicitor to get advice on what the terms and conditions are,

0:20:440:20:48

and the legal pack, what they're getting themselves into.

0:20:480:20:52

-Do you love what you do?

-Yeah, I really, like, enjoy what I'm doing,

0:20:520:20:55

but it's a very, very intense job.

0:20:550:20:59

Long hours, you have to put in a lot of hard work,

0:20:590:21:03

whereas property is not a lot of hard work.

0:21:030:21:05

That's the way I see it at the moment.

0:21:050:21:07

Hopefully, it's going to carry on like this.

0:21:070:21:09

Ah, they might be your famous last words!

0:21:090:21:11

-They might come back to bite you!

-Yes!

0:21:110:21:14

One thing for sure is that Ibrahim's plans of extending out the back here

0:21:140:21:18

will certainly take one big bite out of the renovation budget.

0:21:180:21:21

How much money have you got to spend here?

0:21:250:21:27

To be honest, we're looking at a maximum of £30,000, yeah?

0:21:270:21:31

So, we have got a high budget to work with for a small flat, I know.

0:21:310:21:37

It may be less, and we can do it for a lot less,

0:21:370:21:40

but we want to put in a large budget

0:21:400:21:43

so we can get the right equipment, right people,

0:21:430:21:46

to make it look really, really nice.

0:21:460:21:49

And so, what is the maximum amount you think you could sell this for?

0:21:490:21:52

Because around here, you know,

0:21:520:21:54

you have got to be a little bit careful at the moment.

0:21:540:21:57

Yeah. I have had some feedback already from agents.

0:21:570:21:59

I even had an estate agent come in today,

0:21:590:22:02

which...they've given me a guide price

0:22:020:22:05

for the region of 550,000 once it's done up, yeah?

0:22:050:22:07

Based on the plans that I've given them.

0:22:070:22:10

So we'll be happy with 550.

0:22:100:22:13

We may end up getting more.

0:22:130:22:15

Because the property prices are really going up at the moment,

0:22:150:22:17

especially in this area.

0:22:170:22:19

So, how long do you think it's going to take you to get this flat as you want it?

0:22:190:22:23

I mean, build wise, it could take up to two months, right?

0:22:230:22:27

But there's issues in relation to planning permission consents.

0:22:270:22:30

So planning permission, usually, you know, on average eight weeks.

0:22:300:22:35

Along with that, consent from the freeholders,

0:22:350:22:38

that could take up to four-five weeks as well,

0:22:380:22:40

so that may delay things,

0:22:400:22:42

but we wouldn't be stopping and waiting for those consents.

0:22:420:22:44

We'll be starting to do the works inside,

0:22:440:22:47

you know, getting down everything, getting rid of all the rubbish,

0:22:470:22:50

perhaps start plastering the inside, and then, hopefully,

0:22:500:22:54

if we get the consents and the planning permission,

0:22:540:22:56

then we want the extension.

0:22:560:22:58

So it could be between two to three months.

0:22:580:23:01

So, my next question is,

0:23:010:23:02

you're a solicitor now and a part-time property developer.

0:23:020:23:05

When does that swap around?

0:23:050:23:06

When do you become a bit full-time property developer,

0:23:060:23:08

-doing a bit of conveyancing on the side?

-I mean, we aim...

0:23:080:23:12

By the time I'm 40, I want to retire from the legal profession,

0:23:120:23:15

hopefully, and be more involved in the property

0:23:150:23:19

which all depends on how these projects run, if we can make some profit.

0:23:190:23:24

You know, it may be shorter if we

0:23:250:23:27

-can make a lot of profit in the long run.

-How old are you now?

0:23:270:23:30

-I'm 33.

-Oh, you've got ages!

0:23:300:23:32

-Yeah, ages, yeah.

-Listen, good luck with this project.

0:23:320:23:35

-Thank you very much.

-I can't wait to see if you do get permission and what it's going to look like.

0:23:350:23:39

-Thank you very much.

-Lovely to meet you, Ibrahim.

-Thank you.

0:23:390:23:42

Well, Ibrahim is definitely maximising this property to its full

0:23:420:23:46

potential, and I agree, I think it's going to look fantastic.

0:23:460:23:50

It's funny, though, how he sees the complex world of property developing

0:23:500:23:54

as an easier ride than his profession as a solicitor!

0:23:540:23:58

Let's hope he gets planning permission and all the consents he needs.

0:23:580:24:02

Join me later and you can find out how he gets on.

0:24:020:24:05

Coming up - I'm off to Birmingham,

0:24:060:24:08

and I'm not here to see a house or a flat.

0:24:080:24:11

Nope, I am here to see a plot of land behind this fence.

0:24:110:24:16

And back in London, we find out why

0:24:160:24:18

the solicitor's flat wasn't such a brief encounter.

0:24:180:24:21

It's taken over two and a half years to complete this project.

0:24:210:24:26

But first, we return to Margate in Kent, where we first saw,

0:24:310:24:36

not a house, or a flat, or even a plot of land.

0:24:360:24:39

No, in this case, it was, well...

0:24:390:24:42

So, what do you find when you walk through the doors?

0:24:420:24:44

Well, obviously, it's just a disused garage.

0:24:440:24:48

But the plot itself is quite surprising.

0:24:480:24:50

It goes back a reasonable distance, another 20 or so feet from where

0:24:500:24:55

I am, so it's not a bad size.

0:24:550:24:57

I think pretty much everything

0:24:570:24:59

relies on knocking it down and building something else.

0:24:590:25:02

-# Why don't you tear it down?

-So why don't you tear it down?

0:25:020:25:05

-# So why don't you tear it down?

-Why don't you tear it

0:25:050:25:07

-# Why don't you tear it

-Why don't you tear it all down? #

0:25:070:25:10

So, in essence, it wasn't even a garage that was up for sale,

0:25:100:25:12

more of a potential building plot.

0:25:120:25:14

But, with no planning permission and just 0.01 of an acre,

0:25:140:25:19

it wasn't the biggest of areas.

0:25:190:25:21

But with a guide price of £18,000 to £20,000,

0:25:210:25:24

it didn't have the biggest of price tags, either.

0:25:240:25:27

And that's what appealed to Kirsty, who bought it at £30,000,

0:25:310:25:35

and she knew exactly what she was taking on.

0:25:350:25:37

Well, it's got a risk to it, but it's local to us,

0:25:390:25:43

-and we know the area.

-Right, so what is the big objective for this, then,

0:25:430:25:48

is it to try to get planning permission for something?

0:25:480:25:50

Yes, hopefully a two-bedroom house.

0:25:500:25:53

Kirsty's husband, Tom, is a builder, so,

0:25:530:25:55

providing they can get planning permission,

0:25:550:25:58

he would build a two-bed house in his spare time.

0:25:580:26:01

They hoped a budget of £75,000 and a timescale of a year would see a

0:26:010:26:06

completed house on the site.

0:26:060:26:09

Nine months on, we're back to check on the progress.

0:26:110:26:14

# So take a look at me now

0:26:160:26:20

# Well, there's just an empty space

0:26:200:26:24

# There's nothing left here to remind me

0:26:240:26:30

# Just the memory of your face

0:26:300:26:33

# Now take a look at me now

0:26:330:26:36

# Cos there's just an empty space... #

0:26:370:26:41

OK, so there is no house, but there is no garage, either.

0:26:410:26:44

So, it does look like things are progressing, so what's going on?

0:26:440:26:48

Since you were last here, we've got the drawings completed,

0:26:530:26:55

we've got planning permission approved,

0:26:550:26:58

and we're starting on party wall agreements.

0:26:580:27:01

We've taken the building down and disposed of all the waste.

0:27:010:27:04

-We're moving forward.

-Getting planning permission wasn't completely

0:27:040:27:08

straightforward, with the original plans needing to be resubmitted.

0:27:080:27:12

It took five months to get the green light, but at last,

0:27:120:27:15

they are ready to build the site back up.

0:27:150:27:18

# Now I'm ready

0:27:180:27:21

# To rise again

0:27:210:27:24

# Just look at my hopes Look at my dreams... #

0:27:240:27:28

But, into what?

0:27:280:27:30

Got planning for a two-bedroom house, two-up, two-down,

0:27:300:27:33

open-plan with a little bit of storage at the front,

0:27:330:27:36

hoping to give it a bigger living room.

0:27:360:27:39

This sounds like it should make a decent starter home,

0:27:390:27:43

and a good test of their first solo building project.

0:27:430:27:47

And they don't want to go it alone with the construction work.

0:27:470:27:50

Originally, we were going to borrow the money to do the build,

0:27:510:27:55

but now we've decided we're going to front the money ourselves,

0:27:550:27:58

so, therefore, we're having to work for the money and then pay for bits as we go.

0:27:580:28:03

We had a little bit of an adaptation. I started doing smaller

0:28:030:28:06

work, thinking I could get the time to come here,

0:28:060:28:08

but then the funding didn't match up,

0:28:080:28:10

so I've had to go back to bigger jobs,

0:28:100:28:12

and that's going to help us with what we're doing here.

0:28:120:28:15

So, Tom and Kirsty have readjusted their strategy,

0:28:150:28:18

and think this approach will see the house built within a year.

0:28:180:28:21

But how much extra income will Tom

0:28:210:28:24

need to bring in to fund this project?

0:28:240:28:27

The budget is between £70,000 and £75,000.

0:28:270:28:30

With us doing most of the labour ourselves,

0:28:300:28:33

we think we can pull it in for that.

0:28:330:28:35

Having bought the old garage for £30,000,

0:28:350:28:38

with a proposed £70,000 to £75,000 build cost,

0:28:380:28:42

they're looking at a total investment

0:28:420:28:44

of between £100,000 and £105,000.

0:28:440:28:47

So, is this the right site and right house for the local market?

0:28:470:28:51

What do two local estate agents think?

0:28:510:28:54

The development is good.

0:28:540:28:56

A two-bed house will be popular, in demand,

0:28:560:28:58

and the local area is very sought after at the moment.

0:28:580:29:00

It's situated in a good location, close to the train station,

0:29:000:29:03

close to local amenities, and a very short walk to the seafront as well.

0:29:030:29:06

I think the plan for a new build here will work.

0:29:060:29:09

There's a lot of appetite for new-builds currently in

0:29:090:29:13

the Margate area, and across the country, in fact.

0:29:130:29:16

So, yes, certainly, there is an appetite for that.

0:29:160:29:19

The only downside would be parking. Local parking is fairly busy,

0:29:190:29:22

and I most of the roads around here are quite metered now,

0:29:220:29:25

so a parking space would be a nice added benefit to the space,

0:29:250:29:28

but obviously, it's quite limited around the surrounding areas.

0:29:280:29:30

The house itself would be sellable,

0:29:300:29:32

but parking is always an added benefit.

0:29:320:29:34

In order to move on to other projects,

0:29:340:29:37

this build needs to be a sell-on project, but it also needs to make money.

0:29:370:29:42

So, will that be the case if they bring it in for the proposed

0:29:420:29:46

£100,000 to £105,000 total spend?

0:29:460:29:49

To put the new property on the sales market,

0:29:490:29:52

I would be confident of achieving around £170,000 to £175,000.

0:29:520:29:55

In the current sales market, I expect this property to achieve

0:29:550:29:59

between £165,000 and £170,000.

0:29:590:30:01

I think that's a fair price.

0:30:010:30:03

-I'm very happy with that.

-Those are the figures that we had in mind,

0:30:030:30:06

-aren't they?

-Yeah.

0:30:060:30:07

So, a potential pre-tax profit of between £60,000 and £75,000 on

0:30:070:30:11

the resale market.

0:30:110:30:13

The agents also thought rental returns around £725 per

0:30:130:30:17

calendar month, or a yield of around 8% would be possible.

0:30:170:30:20

So, if it all goes to plan, I'm sure there will be smiles all round,

0:30:200:30:25

but what has pleased them the most so far?

0:30:250:30:27

I am most pleased that we have got the planning permission!

0:30:270:30:32

It was a pretty big gamble that we took, but it paid off.

0:30:320:30:35

# I'm feeling happy now

0:30:350:30:39

# You know I'm happy now

0:30:390:30:41

# You know I'm happy now

0:30:410:30:46

# You know I'm happy now... #

0:30:460:30:49

Today, we're in the Nechells area of Birmingham,

0:30:580:31:01

sandwiched between two branches of the Birmingham Canal network.

0:31:010:31:05

These canals were crucial to the industrial success of Birmingham

0:31:050:31:09

during the Victorian era, and they

0:31:090:31:11

carried coal and iron across the city from the Black Country.

0:31:110:31:15

It's been a while since these canals were used for any

0:31:150:31:18

commercial purposes,

0:31:180:31:19

but what they do do today is offer a unique backdrop to properties across

0:31:190:31:24

the city.

0:31:240:31:25

# All along the water, baby

0:31:270:31:29

# Take me to your water, baby

0:31:290:31:31

# All along your water, baby... #

0:31:310:31:34

Not far from the canals,

0:31:340:31:36

and I'm just a ten-minute train ride from Birmingham city centre.

0:31:360:31:39

This is a residential area, but I'm not here to see a house or a flat.

0:31:390:31:44

Nope, I'm here to see a plot of land behind this fence.

0:31:440:31:48

It's 167 square metres, with a guide price of £20,000.

0:31:480:31:54

But I don't think I am getting through there.

0:31:540:31:56

Let's find out if there's another way in.

0:31:560:31:58

# I gotta find if there's another way in

0:31:580:32:01

# I gotta find, I gotta find, I gotta find... #

0:32:010:32:07

OK. This plot of land is pretty small.

0:32:090:32:12

I mean, in parts, I'd guess no more than five or so metres width,

0:32:120:32:16

but it's about the same footprint as the other houses I've seen on

0:32:160:32:21

this street which means you could definitely get a house onto this site.

0:32:210:32:26

Now, what's interesting is it looks like there's definitely been

0:32:260:32:29

something, a property, here before.

0:32:290:32:32

You can see the concrete foundations,

0:32:320:32:35

even the remnants of some tiles.

0:32:350:32:37

That said, if there has been something here before,

0:32:370:32:41

and that tree was planted afterwards, it was a pretty long time ago.

0:32:410:32:45

That's a mature tree.

0:32:450:32:46

So that's the risk element - getting that planning permission.

0:32:460:32:50

Another risk element is attaching onto a neighbour's wall.

0:32:500:32:56

If you do that, you need to get permission from your neighbours.

0:32:560:32:59

It's called a party wall, which sounds like really good fun.

0:32:590:33:03

It's not when you knock on the wall, and say,

0:33:030:33:05

"Keep the party noise down!"

0:33:050:33:07

It's just means a shared wall with another party.

0:33:070:33:10

# You gotta fight

0:33:100:33:12

# For your right

0:33:120:33:13

# To party... #

0:33:130:33:16

Consulting with the planners and the neighbours might not be a party,

0:33:160:33:20

but it should be worth fighting for,

0:33:200:33:22

as there are indications that building a new house here could be

0:33:220:33:26

pretty straightforward.

0:33:260:33:28

I have been looking for some signs that the property that was here before

0:33:300:33:34

was at some point connected to services, and I've found some.

0:33:340:33:37

You have drains, you have cables, and that's a really good sign,

0:33:370:33:41

because if a property has no previous connection,

0:33:410:33:45

it can be a nightmare getting there.

0:33:450:33:46

The time process to get it connected can be very long and drawn-out,

0:33:460:33:51

but this is a residential area and all the signs are good.

0:33:510:33:54

-# Always looking for a good sign

-Looking for a good sign

0:33:540:33:59

-# I've gotta keep on trying

-Gotta keep on trying

0:33:590:34:03

-# Oh, yeah, oh, yeah

-Oh, yeah... #

0:34:030:34:06

The foundations have literally been laid here.

0:34:060:34:09

So, the question is, how to make the most of this narrow parcel of land?

0:34:120:34:16

This might not be the widest of plots, but it's deceptively long.

0:34:170:34:21

I might not be able to make it through there, it's very overgrown,

0:34:210:34:24

but really, that length gives you the potential to extend.

0:34:240:34:27

Of course, you need your planning permission just to build a property

0:34:270:34:31

first. But if you want to go past that building line, and add, say,

0:34:310:34:35

another bedroom, you could apply for that.

0:34:350:34:37

Now, I have seen the properties in

0:34:370:34:39

this very row have extended the ground floor.

0:34:390:34:43

This could be a really good sign

0:34:430:34:44

when it comes to that all-important permission.

0:34:440:34:47

It's tempting to try and squeeze as much potential profit out of this

0:34:470:34:51

plot, but it's good to get a second opinion on what could be built here.

0:34:510:34:55

We have asked along an agent from the auction house that sold it to

0:34:580:35:01

give us his thoughts on what size of

0:35:010:35:03

property would be best suited to this piece of land.

0:35:030:35:07

It would fit probably a two-bedroom one quite happily.

0:35:070:35:11

A three-bedroom one,

0:35:110:35:14

I don't think the bedrooms would be

0:35:140:35:16

particularly large if you got the three on here.

0:35:160:35:19

Now, whether they will be able to connect to the adjoining property's

0:35:190:35:24

wall is all going to depend upon

0:35:240:35:26

whether the people there will agree to allow them to do it.

0:35:260:35:30

If not, then, it would have to be built as, if you like,

0:35:300:35:34

a freestanding wall,

0:35:340:35:36

that they would build,

0:35:360:35:39

which would probably narrow down the size of the building somewhat.

0:35:390:35:43

The agent doesn't think there will be any changes in value if it was a

0:35:440:35:48

terraced or a detached property, as there would be so little space.

0:35:480:35:52

He also reckons there wouldn't be much difference between the two

0:35:520:35:56

or three-bed house, because a three-bed house

0:35:560:35:59

might mean having to have a downstairs bathroom.

0:35:590:36:02

So, what would a three-bed house fetch on the sales market?

0:36:020:36:06

I would imagine that it would

0:36:060:36:09

realise in the region of £110,000 to £120,000,

0:36:090:36:13

but that will depend upon the state of finish

0:36:130:36:17

and sizing that they get away with.

0:36:170:36:20

At first glance, there is not much

0:36:230:36:25

to get excited about with this plot of land, but it's deceptively long.

0:36:250:36:29

And I'm pretty sure there was a property here before

0:36:290:36:32

which could make things much easier down the line.

0:36:320:36:35

So, actually, I am pretty excited.

0:36:350:36:37

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

0:36:370:36:40

So, who will bid me, then, for this parcel of land?

0:36:440:36:48

£30,000 to get us started?

0:36:480:36:50

20, then? I don't want to go lower than 20.

0:36:510:36:53

We know we're going to go past this. At £20,000 I'm bid.

0:36:530:36:56

You told me earlier you have the banker's draft, sir.

0:36:560:36:58

At 20, I'm bid. 25, sir?

0:36:580:37:00

A condition of the sale on this lot meant that you could only bid if you

0:37:000:37:03

had a banker's draft.

0:37:030:37:05

There were a few interested bidders who had them in hand.

0:37:050:37:08

We rejoin the action at 29 grand.

0:37:080:37:11

29? 29. 31? 31.

0:37:110:37:15

Thank you. 33.

0:37:150:37:18

30... 35.

0:37:180:37:20

At 35, I am bid.

0:37:200:37:22

I've got 35 in front of me.

0:37:220:37:25

37, sir?

0:37:250:37:27

Thank you. You have a draft?

0:37:270:37:29

37. 39?

0:37:290:37:31

That was your magic number, 35, was it?

0:37:310:37:33

37,000 on the aisle.

0:37:330:37:35

Can I see your number, sir? Number 530.

0:37:350:37:38

Do I have 38? One, two, three, this is yours, sir.

0:37:380:37:42

GAVEL BANGS

0:37:420:37:44

Yes, well done, congratulations.

0:37:440:37:45

The successful bid of 37 grand was made by Riaz.

0:37:450:37:49

Riaz is a semi-retired scientist turned property developer

0:37:490:37:54

and project manager, and has been on the show before.

0:37:540:37:57

He and his business partner and builder Sylvester

0:37:570:38:00

have already tackled a 3-storey

0:38:000:38:02

terraced house in the Birmingham area of Handsworth.

0:38:020:38:06

They transformed it from being damp

0:38:060:38:09

and dull to something bright and light.

0:38:090:38:12

They've also bought a piece of land to develop in that area.

0:38:160:38:19

We'll hopefully see that project in the future, but,

0:38:190:38:22

back to the here and now.

0:38:220:38:24

What about this one?

0:38:240:38:26

-Congratulations.

-Thank you very much.

-Thank you.

0:38:300:38:32

You've got your very own plot of land. Why did you want it?

0:38:320:38:35

Actually, comparing to the previous land we bought,

0:38:350:38:41

this seemed like an easier build, because

0:38:410:38:44

although it's overgrown, it's flat, isn't it?

0:38:440:38:48

It's a really nice plot, and simple.

0:38:480:38:51

Yeah, this is really one I like!

0:38:510:38:54

What makes it a nice plot for you, Sylvester?

0:38:540:38:57

For me, when I am building houses, I need space around for delivery,

0:38:570:39:00

for everything.

0:39:000:39:01

So, it sounds like you had done your homework before you went to auction.

0:39:010:39:05

We did, yes.

0:39:050:39:06

We kind of did the background work in terms of the area and location

0:39:060:39:09

itself, and also the fact that there was a house here already,

0:39:090:39:14

and that gives us fair confidence that we should be able to obtain

0:39:140:39:18

planning permission for this property.

0:39:180:39:21

OK. Have you talked to some neighbours? Because I have noticed that...

0:39:210:39:25

I'm guessing you would attach on to the end of this terrace?

0:39:250:39:28

Yes, that would be the logical thing to do.

0:39:280:39:30

The other alternative is that we might just leave a small gap.

0:39:300:39:33

And so, then they can preserve their end-terrace status,

0:39:330:39:37

and we can then preserve our detached-house status.

0:39:370:39:40

While a detached house would be great,

0:39:400:39:42

-I guess every inch counts in a plot of this size.

-Sure.

0:39:420:39:45

-Yeah.

-What would you rather do?

0:39:450:39:47

I think I am actually comfortable

0:39:470:39:49

with the detached house status, to be honest.

0:39:490:39:52

As you said, every inch does count, but that's only the width.

0:39:540:39:58

Lengthwise, we're doing well, so instead of going that way,

0:39:580:40:01

we could actually go lengthwise into the garden itself.

0:40:010:40:05

Let's move inside the house, what are you planning for inside?

0:40:050:40:08

Well, we are planning a three-bedroom house, and Sylvester...

0:40:080:40:12

A pair of classical bathrooms.

0:40:120:40:16

Some of...

0:40:160:40:18

Try an extension to see if it's possible to do it.

0:40:180:40:22

Normal kitchen,

0:40:220:40:25

extra toilet downstairs, because there is lots of houses here

0:40:250:40:29

that doesn't have toilets downstairs.

0:40:290:40:31

So it's about providing something that might make this really attractive?

0:40:310:40:36

-Exactly.

-Yeah.

-So you'd be planning on three bedrooms upstairs?

0:40:360:40:39

Three bedrooms upstairs with a family bathroom, and a WC downstairs.

0:40:390:40:43

-Yeah.

-OK.

0:40:430:40:45

And a kitchen, and a sitting area?

0:40:450:40:48

Yes, that's right, and also possibly an extension with the garden.

0:40:480:40:52

By going for three bedrooms,

0:40:520:40:54

Riaz and Sylvester may be making it more difficult for themselves to get

0:40:540:40:58

planning passed on this relatively small plot.

0:40:580:41:02

Although going for a detached property will mean that they won't

0:41:020:41:05

have to get a third party wall agreement.

0:41:050:41:08

That might un-complicate things a bit,

0:41:080:41:11

but the planning process can move at a snail's pace.

0:41:110:41:14

Big question - how long is this going to take you?

0:41:140:41:18

Over to my friend here!

0:41:200:41:22

No, it's... My plan is maximum four months from now to completely done.

0:41:220:41:28

Four months for a complete new build?!

0:41:280:41:31

-Yeah.

-From when we obtain planning permission.

0:41:310:41:33

-OK.

-When it's all ready, I will build up to four months.

0:41:330:41:36

And the budget?

0:41:360:41:39

Well, we think it will be about 60,000 to 70,000,

0:41:390:41:44

so we will go for 60,000 with a contingency of 10,000,

0:41:440:41:47

so that's our folder.

0:41:470:41:49

OK, and what do you want to do with it?

0:41:490:41:51

-Do you want to sell it on straightaway?

-That's the idea, yes.

0:41:510:41:54

We're planning to...

0:41:540:41:56

I can't wait to see what you do and I wish you the best of luck.

0:41:560:41:59

-Thank you.

-Good luck, Riaz.

0:41:590:42:00

-Thank you.

-Good luck, Sylvester.

0:42:000:42:02

Thank you very much.

0:42:020:42:04

I think this development is all about getting that important

0:42:040:42:08

planning permission. It's about keeping the council happy,

0:42:080:42:11

and of course, the neighbours, too.

0:42:110:42:13

But if anyone can do it, I reckon it's Riaz and Sylvester.

0:42:130:42:16

They have a great working relationship and plenty of experience.

0:42:160:42:20

They just need to get that planning permission.

0:42:200:42:23

You can find out how they got on later in the show.

0:42:230:42:26

We've followed the journey of one of our buyers,

0:42:300:42:32

but what about the other two?

0:42:320:42:34

Yes, did their projects treat them well

0:42:340:42:36

or was the relationship turbulent?

0:42:360:42:38

Let's find out.

0:42:380:42:40

It was in the West London area of Shepherd's Bush where Lucy first got

0:42:420:42:47

to look around a ground floor one-bedroom flat.

0:42:470:42:50

And she had big ideas on how to develop it.

0:42:500:42:53

..with a kitchen at the back of the property.

0:42:550:42:57

Not the largest I have seen.

0:42:570:42:59

In fact, I think you might be able to extend to the side.

0:42:590:43:03

And I'm wondering whether or not you can get some lovely bifold doors in

0:43:030:43:07

there, or even something a

0:43:070:43:09

little bit more traditional, but is it worth it?

0:43:090:43:11

Does it have a nice enough garden? Let me check.

0:43:110:43:14

And the answer was a resounding yes.

0:43:140:43:18

So, with an extension, there was

0:43:180:43:20

a possibility of putting some genuine wow factor into the flat.

0:43:200:43:24

It was bought at auction for £367,500

0:43:240:43:29

by Ibrahim, who had, shall we say,

0:43:290:43:32

kept a watching brief on the property market.

0:43:320:43:36

# The way you watch me

0:43:360:43:38

# The way you watch me walking through the do-o-o-or

0:43:380:43:42

# I know what you really... #

0:43:420:43:43

Basically, me and my partners, we are all solicitors, right?

0:43:430:43:46

So we do a lot of conveyancing, i.e. property, for our clients,

0:43:460:43:51

so we have been seeing potential anyway, people buying and selling,

0:43:510:43:55

so we thought, "Let's get into it as well".

0:43:550:43:58

So, Ibrahim, with two other colleagues,

0:43:580:44:00

seemed well positioned to be a property developer.

0:44:000:44:03

And yes, he read the legal pack, and, yes, a he knew flat was leasehold,

0:44:030:44:06

and yes, he knew exactly what he wanted to do with it.

0:44:060:44:09

The main works is going to be the extension in the garden.

0:44:110:44:14

We are going to have a side extension and a back extension that will extend the kitchen,

0:44:140:44:18

which will accommodate a kitchen and a living room altogether.

0:44:180:44:22

Of course, the project timescale was reliant on planning permission,

0:44:220:44:25

which Ibrahim was hoping would take eight weeks.

0:44:250:44:28

He hoped to get the freeholder's permission by then, too.

0:44:280:44:32

Build time, he reckoned on being another two months.

0:44:320:44:34

So, with a bit of luck, he hoped to

0:44:340:44:37

complete the refurbishment from start to finish in four months.

0:44:370:44:42

He had a healthy budget of £30,000 to get ready to sell on,

0:44:420:44:46

and with three solicitors on the case, what could possibly go wrong?

0:44:460:44:49

Now, 33 months later, we're back.

0:44:530:44:56

Well, so far, it's promising,

0:45:030:45:04

but this refurbishment was all about improving the size of the kitchen

0:45:040:45:08

space, because do you remember what it was like?

0:45:080:45:11

# When I was little

0:45:110:45:15

# Yeah, once when I was little... #

0:45:150:45:22

Yes, it might have been small once, but the kitchen is all grown-up now.

0:45:230:45:28

The bathroom is now a posh shower room.

0:45:360:45:39

And, with such a large kitchen/diner at the back,

0:45:430:45:46

the front lounge has been turned into a bedroom.

0:45:460:45:49

With the old bedroom refurbished, this is now a smart two-bed flat,

0:45:540:45:58

but why has it taken so long to sort it out?

0:45:580:46:01

Basically, this is a terraced house,

0:46:040:46:06

so obviously we need to get party wall agreements done by both neighbours,

0:46:060:46:10

so that, you know, on its own, took over six months,

0:46:100:46:14

so that delayed the project by six months.

0:46:140:46:18

# It's my party and I'll cry if I want to

0:46:180:46:22

# Cry if I want to Cry if I want to

0:46:220:46:25

# You would cry too if it happened to you... #

0:46:250:46:30

A party wall is not just about the shared house wall.

0:46:300:46:33

It applies to garden walls and foundations near boundaries,

0:46:330:46:37

so they needed a party wall agreement,

0:46:370:46:40

which meant a lengthy legal process.

0:46:400:46:42

Then there was time negotiating

0:46:420:46:45

the freeholder's permission and extending the lease to 125 years.

0:46:450:46:50

The planning process took longer than planned,

0:46:500:46:53

and add all these into the mix, and slowly watch the time trickle away.

0:46:530:46:57

Thank goodness they didn't have to pay all the legal fees!

0:46:570:47:00

So, aside from the paperwork, who carried out the hard labour?

0:47:000:47:05

We had a builder that was doing the work.

0:47:050:47:07

Obviously, he had his own tradesmen dealing with the electrics and

0:47:070:47:11

plumbing and everything else separately,

0:47:110:47:14

but we mainly managed the project ourselves.

0:47:140:47:17

So we was hands on, with my other business partners.

0:47:170:47:21

The building team actually did the work in four months,

0:47:240:47:26

but they had to negotiate a premium with the freeholder of £25,000 to

0:47:260:47:32

carry out the renovation,

0:47:320:47:33

so I rather expect they overspent that £30,000 budget.

0:47:330:47:37

At the end, we've ended up spending around £70,000.

0:47:370:47:42

That includes all the freeholder's premium, surveyors' fees,

0:47:420:47:47

for the party walls. That delayed, and obviously that exceeded, you know, costs.

0:47:470:47:51

It incurred further costs.

0:47:510:47:53

A £70,000 spend on top of the purchase price of £367,500

0:47:540:48:00

would take the trio's costs to £437,500.

0:48:000:48:06

But, in the buoyant London market,

0:48:060:48:09

could a two and a half year wait

0:48:090:48:11

actually end up paying dividends for this now two-bed flat?

0:48:110:48:15

What do two local property experts think?

0:48:150:48:17

Having just come into the property, I'm very impressed with the light.

0:48:190:48:23

The fact that it feels very spacious,

0:48:230:48:25

and you've got very good ceiling height,

0:48:250:48:26

particularly in the entrance hall and the bedrooms.

0:48:260:48:29

I understand the property was a one-bedroom flat before,

0:48:290:48:31

and the owners have redeveloped it into a two-bedroom,

0:48:310:48:36

and I think they've really maximised the space.

0:48:360:48:39

The overall standard of the finish is very good.

0:48:390:48:41

There's lots of nice features, and would certainly be very

0:48:410:48:43

appealing for the market you're aiming at in

0:48:430:48:45

this area, which is generally young city or media professionals.

0:48:450:48:49

The property market is stable,

0:48:490:48:51

and we're very lucky that we are in London,

0:48:510:48:54

so there are always people that need to live somewhere.

0:48:540:48:57

It's really done to a high standard, it's in a good location,

0:48:570:49:00

it should sell at the right price.

0:49:000:49:02

The plan for Ibrahim and his colleagues is to sell the flat on.

0:49:040:49:08

Indeed, they already have it on the market.

0:49:080:49:10

But what do the agents think their £437,500 investment could be worth?

0:49:100:49:16

If this property was to come to the market,

0:49:160:49:18

I feel it would achieve a price in

0:49:180:49:21

the region of £625,000 to £650,000.

0:49:210:49:23

I would expect this property to come onto the market in the region of

0:49:230:49:26

£650,000, and the owner should seriously

0:49:260:49:31

consider any offers in excess of £635,000.

0:49:310:49:34

So, what does Ibrahim think of those numbers?

0:49:340:49:37

We are looking to achieve between £620,000 to £650,000,

0:49:380:49:43

so anything close to £650,000 would be great.

0:49:430:49:47

And those kind of figures could see a potential pre-tax profit of

0:49:470:49:51

£182,500 and £212,500

0:49:510:49:55

minus taxes and any remaining expenses.

0:49:550:49:59

They could also get rental figures of around £2,000

0:49:590:50:02

per calendar month, which is just over a 5% yield,

0:50:020:50:05

so it looks like time has been kind to them.

0:50:050:50:08

It's been great. I mean, it's been really challenging.

0:50:110:50:14

Obviously, we've had a number of problems,

0:50:140:50:16

and it's taken them over two and a half years.

0:50:160:50:18

But we've learned a lot,

0:50:180:50:20

to be fair, so it's been a good experience, really.

0:50:200:50:23

It was close to the Birmingham Canal network

0:50:280:50:30

in the Nechells area of the city

0:50:300:50:32

where we first saw something that could float someone's boat.

0:50:320:50:36

But buying it would be considered a bit of a punt.

0:50:360:50:40

OK. This plot of land is pretty small. I mean, in parts,

0:50:400:50:45

I would guess no more than five or so metres width,

0:50:450:50:48

but it's about the same footprint as the other houses I've seen on

0:50:480:50:53

this street, which means you could

0:50:530:50:55

definitely get a house onto this site.

0:50:550:50:58

Yes, it was a tight squeeze beside the existing house.

0:50:580:51:01

# Next to me, oh-oh

0:51:010:51:06

# Next to me, oh-oh... #

0:51:060:51:11

But there had been a building previously on the site,

0:51:110:51:14

which meant services were accessible,

0:51:140:51:16

and that the chances of

0:51:160:51:17

planning permission being granted were pretty high.

0:51:170:51:21

And so, it was bought at auction by part-time scientist turned property

0:51:230:51:27

developer Riaz and his builder and business partner Sylvester

0:51:270:51:32

for £37,000.

0:51:320:51:34

They had already sized up the opportunities here.

0:51:340:51:38

Instead of going that way,

0:51:380:51:39

we could actually go lengthwise into the garden itself and put a garden

0:51:390:51:43

room and everything, so from that perspective, I am quite comfortable.

0:51:430:51:47

Let's move inside the house.

0:51:470:51:49

What are you planning for inside?

0:51:490:51:51

Well, we're planning a three-bedroom house and a family bathroom,

0:51:510:51:55

-and a WC downstairs.

-Yeah.

0:51:550:51:58

Big question - how long is this going to take you?

0:51:580:52:01

My plan is maximum four months, from now to completely done.

0:52:010:52:06

Four months for a complete new build?!

0:52:060:52:09

From when we obtain planning permission.

0:52:090:52:12

-OK.

-When it's all ready, I will build up to four months.

0:52:120:52:15

So, once planning permission was granted, Sylvester wasn't hanging about.

0:52:150:52:20

Along with the proposed four-month build time,

0:52:200:52:22

they hoped to construct the house at

0:52:220:52:25

a cost of between £60,000 and £70,000.

0:52:250:52:28

So, how has it all gone?

0:52:280:52:29

Well, now, six months on, we're back.

0:52:290:52:32

# Oh, now, all I see is pretty little flowers open up to me

0:52:320:52:38

# Take them home, press them well

0:52:380:52:42

# Bring them to the garden and lay them by the wishing well... #

0:52:420:52:48

Hmm. Pretty flowers they might be, bluebells, if I am not mistaken,

0:52:480:52:52

but in terms of signs of construction, the site's looking a little bare.

0:52:520:52:57

So, what's going on?

0:52:570:52:59

My architect and I put together a plan for the site and,

0:53:010:53:05

having a detailed discussion with the architect,

0:53:050:53:09

it was going to be a really tight squeeze to have three-bedrooms in,

0:53:090:53:13

so he suggested simply going for a two-bedroom house,

0:53:130:53:17

and so that's what we submitted to the council to obtain

0:53:170:53:21

planning permission, which we duly got a month or so ago.

0:53:210:53:25

Right, well, that's good,

0:53:250:53:26

and I can see a two-bed makes more sense than three,

0:53:260:53:30

but a month has passed since planning,

0:53:300:53:32

and Riaz and Sylvester said they'd have it all built in four.

0:53:320:53:36

Well, since then, things have changed.

0:53:360:53:39

I have two other projects on the go, and one of them,

0:53:390:53:42

I was hoping to complete and

0:53:420:53:44

sell off and that's unfortunately running behind schedule

0:53:440:53:49

by a couple of months,

0:53:490:53:50

and so I need some injection of cash for the other project.

0:53:500:53:54

So we took a decision that we'll actually simply sell this and then

0:53:540:53:59

use the cash to fund the other two projects.

0:53:590:54:03

# No time for making my moves

0:54:030:54:07

# No time

0:54:070:54:09

# No time for hitting my grooves

0:54:110:54:14

# No time... #

0:54:140:54:15

Sometimes I guess you just have to prioritise,

0:54:150:54:18

and it seems this development was one too many for the pair.

0:54:180:54:22

But, it's not just the flowers that have now made this site more

0:54:220:54:26

attractive to sell on.

0:54:260:54:27

It's now got those plans, and Riaz is pretty pleased with those.

0:54:270:54:32

Imagine there's a lovely porch here, coming through.

0:54:320:54:37

You enter into the front door.

0:54:370:54:41

Stairs leading up to the first floor, and then over here would be a

0:54:410:54:47

kitchen, and then leading onto beyond there would be

0:54:470:54:52

the dining room and the lounge. And then walking upstairs

0:54:520:54:56

would be the landing leading onto the master bedroom above,

0:54:560:55:01

as well as this second bedroom, and also a large family bathroom.

0:55:010:55:07

I think this will make a great little house,

0:55:070:55:10

and it should be fairly straightforward to build.

0:55:100:55:13

And I can't help but feel that Riaz

0:55:130:55:15

and Sylvester are missing a trick not building a house here.

0:55:150:55:18

But what do two local estate agents think?

0:55:210:55:23

Oh, I think that the design of the property is the right property.

0:55:280:55:30

It's very similar to the properties that are around it,

0:55:300:55:33

and I think it would blend in very, very nicely.

0:55:330:55:36

And I think that the plans that have been done and the designs

0:55:360:55:39

are exactly what's required for this plot.

0:55:390:55:41

I think the land is a good piece of land for the development.

0:55:410:55:44

It's a residential area.

0:55:440:55:46

A two-bedroom detached house would sit nicely here.

0:55:460:55:49

The site cost £37,000 for Riaz and Sylvester to purchase at auction,

0:55:510:55:56

and with the additional costs of getting the plans drawn up and

0:55:560:56:00

passed, they think their total spend to date is 40 grand.

0:56:000:56:04

So, how much is this plot worth now

0:56:040:56:06

that planning permission is in place?

0:56:060:56:09

The land, with planning permission as it stands,

0:56:090:56:12

would be in the region of £30,000.

0:56:120:56:15

I'd say the guide would be roughly

0:56:150:56:16

between £30,000 to £40,000 for the land.

0:56:160:56:19

Well, at this moment, we've given

0:56:190:56:21

permission for the auctioneer to auction this land and put a

0:56:210:56:24

reserve price in the region of £44,000.

0:56:240:56:27

As long as we get somewhere between £40,000 and £44,000,

0:56:270:56:30

I will be happy.

0:56:300:56:32

Yes, I get the feeling that Riaz really just wants to get rid of

0:56:340:56:37

this plot and move on as soon as possible.

0:56:370:56:40

But could building the house be a better financial option?

0:56:400:56:43

The house, once it's constructed,

0:56:440:56:46

depending on the quality of the finish,

0:56:460:56:49

would fetch somewhere between £125,000 and £130,000.

0:56:490:56:54

Looking at recent comparables in the area within the last three months

0:56:540:56:58

that have sold, I would say in the region of £130,000 to £135,000,

0:56:580:57:03

the house could be sold for.

0:57:030:57:05

'With build costs of around 70 grand,

0:57:050:57:07

'the pair might have seen a pre-tax profit of between £15,000 and

0:57:070:57:11

'£20,000 if they had constructed the two-bedroom house.

0:57:110:57:15

'So, what does Riaz feel about that now?'

0:57:150:57:18

That's in line with what I had in mind,

0:57:180:57:21

so if our plan to sell doesn't come into fruition,

0:57:210:57:24

then we'll just build and sell on.

0:57:240:57:27

So, I guess, never say never,

0:57:290:57:31

but this could still be something they see through to the end.

0:57:310:57:34

But, whatever happens, how does Riaz feel about purchasing this plot?

0:57:340:57:38

It's always a risk, and sometimes risks pay off,

0:57:410:57:45

and sometimes it doesn't.

0:57:450:57:47

I work on the principle that, you know,

0:57:470:57:49

you celebrate success and you learn from failures, so either way,

0:57:490:57:54

I'm going to win.

0:57:540:57:55

Whether you are an auction beginner or a bidding expert,

0:57:570:58:01

there's always bargains to be had under the hammer.

0:58:010:58:03

And we love following the journeys that start in the auction house.

0:58:030:58:07

And we'll certainly have lots more

0:58:070:58:08

for you next time here on Homes Under The Hammer.

0:58:080:58:11

-Bye-bye.

-Bye-bye.

-Goodbye.

0:58:110:58:13

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