0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05Now, do you ever feel like a change of career,
0:00:05 > 0:00:07maybe giving something else a go?
0:00:07 > 0:00:11Well, property developing appeals to lots of people looking for a change
0:00:11 > 0:00:14of lifestyle and a chance to be their own boss.
0:00:14 > 0:00:17Yes, and it's not as easy as it seems.
0:00:17 > 0:00:21But there's one place you can start, your local property auction.
0:00:46 > 0:00:50Now, if you find it tricky picking that one property out of many on the
0:00:50 > 0:00:52market, I think the auction house could be the place for you.
0:00:52 > 0:00:56Yeah, but it's good to keep your options open and do your research on more
0:00:56 > 0:00:59than one property, in case your first choice...
0:00:59 > 0:01:01Well, you're outbid on it, for instance.
0:01:01 > 0:01:05Let's find out what today's buyers did manage to grab hold of when they
0:01:05 > 0:01:07went to auction.
0:01:07 > 0:01:12On today's show, I eventually find just what I was looking for at this
0:01:12 > 0:01:13former chapel in Devon.
0:01:14 > 0:01:16Now, that's more like it.
0:01:17 > 0:01:22I'm at the Lancashire coast to see a retirement property but, before I do,
0:01:22 > 0:01:23better get the kettle on.
0:01:23 > 0:01:26Lovely wee tea trolley.
0:01:27 > 0:01:31And in Derby, if you think I've learned my lessons about cracking
0:01:31 > 0:01:33bad jokes, well, think again.
0:01:33 > 0:01:35That is proper...
0:01:36 > 0:01:37..old school.
0:01:38 > 0:01:42All these properties have been sold at auction and we'll find out who
0:01:42 > 0:01:45bought them and what they paid when they went under the hammer.
0:01:45 > 0:01:47Sold. It's yours, madam, well bought.
0:01:50 > 0:01:52I'm in Princetown, Devon.
0:01:52 > 0:01:56Set in the beautiful landscape of the Dartmoor National Park,
0:01:56 > 0:02:01the village dates back to 1785 and was named after the Prince of Wales
0:02:01 > 0:02:05because it was built on moorland leased out by the Duchy of Cornwall,
0:02:05 > 0:02:07the Prince's estate.
0:02:07 > 0:02:11Dartmoor is also well-known for the ponies and the prison and there's
0:02:11 > 0:02:13usually some interesting property, too.
0:02:13 > 0:02:17I'm hoping for something rather special in this lovely location.
0:02:20 > 0:02:25What I'm here to see is this, a former Methodist chapel,
0:02:25 > 0:02:31built in the late 1800s and a guide price of £65,000 to £85,000,
0:02:31 > 0:02:34very imposing it is, too, built out of solid local granite.
0:02:34 > 0:02:38It's played all sorts of roles in the local community in recent times,
0:02:38 > 0:02:40but let's see what its future holds.
0:02:41 > 0:02:44I'm pretty excited to see inside this grand building.
0:02:44 > 0:02:48I'm praying for light to be streaming in through the giant windows
0:02:48 > 0:02:54and discover it's blessed with plenty of original features.
0:02:54 > 0:02:55Hoo-hoo-hoo!
0:02:57 > 0:03:00OK, OK, OK, OK...
0:03:00 > 0:03:02Oh, dear.
0:03:05 > 0:03:07That wasn't what I expected.
0:03:07 > 0:03:12Where's the big room with the high ceilings and the original features
0:03:12 > 0:03:16and oak floor and pews and organ?
0:03:16 > 0:03:17Oh, well, what have we got down here?
0:03:17 > 0:03:20More like... I don't know, an officey admin area.
0:03:20 > 0:03:22We've got lots of little rooms. There's one there.
0:03:22 > 0:03:24There's that little entrance porch that I came through.
0:03:24 > 0:03:26What's that? A little room.
0:03:26 > 0:03:27Kitchen area there.
0:03:27 > 0:03:29Bathroom.
0:03:31 > 0:03:33A bit flat really.
0:03:35 > 0:03:40# Don't let it get you down
0:03:40 > 0:03:47# Don't let it get you down. #
0:03:47 > 0:03:51Up the stairs to the left and you'll be let down by the kitchen and more
0:03:51 > 0:03:55of the same office-type rooms split up by partition walls.
0:03:55 > 0:03:58And there seems to be a serious issue with the roof,
0:03:58 > 0:04:00which isn't good news,
0:04:00 > 0:04:03but it does offer a glimpse of what's down the hall.
0:04:08 > 0:04:10Now, that's more like it.
0:04:10 > 0:04:14That is what you'd hope to have seen when you walked through the front door.
0:04:14 > 0:04:19But...that's looking up. Looking down, yeah...
0:04:20 > 0:04:22As you can see,
0:04:22 > 0:04:28a floor, or rather a ceiling has been put in for whatever it is that's downstairs.
0:04:28 > 0:04:32And this bit of the building bizarrely doesn't look like it's
0:04:32 > 0:04:36been utilised, well, for anything.
0:04:36 > 0:04:38How very odd. Because this is it, isn't it?
0:04:38 > 0:04:41This is what you want. What could this be?
0:04:41 > 0:04:43Can you imagine this as an amazing room?
0:04:43 > 0:04:44Look at those windows.
0:04:44 > 0:04:47You are going to have to face various issues like...
0:04:47 > 0:04:51With a building like this, all the sort of conservation stuff going on.
0:04:51 > 0:04:53You know, your windows are going to be paramount.
0:04:53 > 0:04:56Getting those changed to something that is going to be warm is going to be
0:04:56 > 0:04:57a bit of a challenge.
0:04:57 > 0:05:00But look at the brick, the natural stone there.
0:05:00 > 0:05:04Just the feeling, that loftiness, the beams.
0:05:04 > 0:05:06Wow!
0:05:06 > 0:05:10A building like this really gets your developer's brain buzzing.
0:05:10 > 0:05:12What would you do with it?
0:05:12 > 0:05:14One house, perhaps?
0:05:14 > 0:05:17Well, it would certainly be spectacular.
0:05:17 > 0:05:19But I don't think it's quite right for this location,
0:05:19 > 0:05:23not least because you haven't got a garden or parking and the amount of
0:05:23 > 0:05:25money you'd hope to get back, I just don't think you would.
0:05:25 > 0:05:27So, flats perhaps.
0:05:27 > 0:05:30Well, yes, that would work.
0:05:30 > 0:05:34Maybe two, three, possibly even four flats.
0:05:34 > 0:05:39Same issues - no garden, not so much an issue. No parking, big issue.
0:05:39 > 0:05:42What else? Leisure centre?
0:05:42 > 0:05:44Nice place for a dance place here.
0:05:44 > 0:05:46Maybe a gym.
0:05:46 > 0:05:48Community centre.
0:05:48 > 0:05:52Wow! It really is one that gets the brain buzzing.
0:05:52 > 0:05:53And there's no easy answer.
0:05:55 > 0:05:59Parking would seem to be the issue I keep coming back to.
0:06:00 > 0:06:04But perhaps an agent from the auction house that sold it will have
0:06:04 > 0:06:06an answer that I haven't come up with yet.
0:06:14 > 0:06:16The property, because of its scale and size, could easily be
0:06:16 > 0:06:19converted, I believe, into residential accommodation,
0:06:19 > 0:06:23whether that be a horizontal or vertical split into either flats or maybe
0:06:23 > 0:06:27houses. Maybe three units is probably the maximum I could see being
0:06:27 > 0:06:29passed by the planning authority.
0:06:29 > 0:06:31Before making any decisions,
0:06:31 > 0:06:34it's good to know what kind of market there would be for flats in
0:06:34 > 0:06:36Princetown.
0:06:37 > 0:06:39I don't actually know if there's any other flats or apartments in the
0:06:39 > 0:06:41vicinity. I've certainly never seen any.
0:06:41 > 0:06:43It's all terraced houses
0:06:43 > 0:06:45and sort of detached residences.
0:06:45 > 0:06:49So to have flats here would be quite unusual and untried and untested.
0:06:50 > 0:06:52Hmm...that is interesting.
0:06:52 > 0:06:55So it certainly wouldn't be straightforward.
0:06:55 > 0:06:57If residential planning was granted, however,
0:06:57 > 0:07:01what could potential residential dwellings sell for here?
0:07:02 > 0:07:06If the property is converted into probably two-bedroom flats,
0:07:06 > 0:07:10that sort of apartment size could fetch somewhere in the region of £120,000 to £125,000.
0:07:10 > 0:07:13If it was converted into a three-bedroom terraced house,
0:07:13 > 0:07:19maybe two or three of them, they could fetch individually maybe £135,000 to £150,000.
0:07:20 > 0:07:24Well, it's a big, bold building with bags of potential for sure.
0:07:24 > 0:07:28But it's going to take divine inspiration and someone with tonnes of cash
0:07:28 > 0:07:32to sort it out. Let's find out who that was when it went under the hammer.
0:07:34 > 0:07:39We move to one of my more favourite lots of the catalogue, actually.
0:07:39 > 0:07:42But it is just a handsome old building in part of the moor.
0:07:42 > 0:07:44So, 75.
0:07:44 > 0:07:48OK, I won't go any lower than 60. 60,000. 60.
0:07:48 > 0:07:49Three hands. 60.
0:07:49 > 0:07:52No, not a bit. Sorry. 60 on the right, though, I'll take.
0:07:52 > 0:07:5360, we are away. At 60.
0:07:53 > 0:07:57At 60. At 60,000 for the first time.
0:07:58 > 0:08:0162 and then I'll take 64 from you, sir, sat behind.
0:08:01 > 0:08:03All very close. 64.
0:08:03 > 0:08:0566, I'm looking.
0:08:05 > 0:08:07With the scarf.
0:08:07 > 0:08:13A few bidders were competing for the property and we rejoin the bidding at 76,000.
0:08:14 > 0:08:15Behind, 76?
0:08:15 > 0:08:17And 78, may I?
0:08:17 > 0:08:2078, he goes. And 80.
0:08:20 > 0:08:2280. And two?
0:08:22 > 0:08:24Shake of the head. You are in, sir.
0:08:24 > 0:08:27Seated at the back. At £80,000.
0:08:27 > 0:08:29For the first time. Are we all done?
0:08:29 > 0:08:33Selling at £80,000...
0:08:33 > 0:08:35Sold. Congratulations.
0:08:35 > 0:08:36Well done.
0:08:36 > 0:08:39The successful bidder paying £80,000 for it was
0:08:39 > 0:08:45Princetown local Paul. He has lived in the village for 16 years and is very familiar
0:08:45 > 0:08:49with the former chapel, from when it was the local community space.
0:08:50 > 0:08:52Paul, good to meet you.
0:08:52 > 0:08:53- Hello.- Wow!
0:08:53 > 0:08:55Project and a half, then.
0:08:55 > 0:08:57How does it feel now you've bought it?
0:08:57 > 0:08:58Strange.
0:08:59 > 0:09:01To say the least, yeah.
0:09:01 > 0:09:04But, no, it's going to be an interesting project.
0:09:04 > 0:09:06No kidding. What are your plans for it, then?
0:09:06 > 0:09:10Hopefully we are going to be very sympathetic with the property.
0:09:10 > 0:09:14Have two flats upstairs, a flat downstairs...
0:09:14 > 0:09:18- Oh, really?- Incorporating at the back of the property three garages,
0:09:18 > 0:09:20which can't be seen from the road.
0:09:20 > 0:09:22Oh, right. So actually build the garages into the building?
0:09:22 > 0:09:25- Into the building, yeah.- Cut a big hole in the side.
0:09:25 > 0:09:27Yeah. A bit like a coach house, really.
0:09:27 > 0:09:28Ah, that's an interesting way...
0:09:28 > 0:09:32Because that did strike me as the biggest hurdle you would face, or anyone
0:09:32 > 0:09:35would face, developing it, is finding a place to park cars.
0:09:35 > 0:09:37It all depends on the National Parks.
0:09:37 > 0:09:41- Yeah.- And then, once we've been through the National Parks,
0:09:41 > 0:09:44we've then got to write to the Duchy to get clearance from the Duchy
0:09:44 > 0:09:47because they've put a couple of covenants on it about alteration to walls,
0:09:47 > 0:09:51or any of their fences, anything like that.
0:09:53 > 0:09:54OK. A fairly big...
0:09:54 > 0:09:58Big challenges and problems if you don't get agreement for that,
0:09:58 > 0:10:00wouldn't you have thought?
0:10:00 > 0:10:04Well, we will change it into storage units or...
0:10:04 > 0:10:07I joke about a swimming pool in here and put a gym...
0:10:07 > 0:10:08- Well!- It's big enough.- Yeah.
0:10:08 > 0:10:11I wonder if there's a market for that. I hadn't thought about that.
0:10:11 > 0:10:12But plan A is to convert it into flats.
0:10:12 > 0:10:15- Yeah.- And why did you decide to go down that route?
0:10:15 > 0:10:17Retirement fund. Pensions aren't doing anything.
0:10:17 > 0:10:20So try and get some money back through investment through property.
0:10:20 > 0:10:23So the idea would be to build them and then rent them out?
0:10:23 > 0:10:25Yeah. And then, maybe later on, sell them.
0:10:25 > 0:10:28Paul has some experience in renovating properties,
0:10:28 > 0:10:31particularly non-standard construction houses,
0:10:31 > 0:10:33also known as Cornish units,
0:10:33 > 0:10:37where he has re-blocked them and made them mortgagable again.
0:10:37 > 0:10:42This late 19th-century goliath with covenants, though,
0:10:42 > 0:10:45that will certainly be another thing altogether.
0:10:45 > 0:10:48- Anything on this scale?- Nothing on this scale.
0:10:48 > 0:10:50- Right. OK. - First time for everything.
0:10:50 > 0:10:54Well, I know, absolutely. So, what's the project plan?
0:10:54 > 0:10:57How are you going to go from where we are now into what you'd like it to be?
0:10:57 > 0:11:01- Talk me through the plan.- We've got an architect coming up on Thursday.
0:11:01 > 0:11:05So he's going to do the initial drawings and then see what he can make of
0:11:05 > 0:11:11the property. Then we hope to basically gut the whole building.
0:11:11 > 0:11:13So it will be a shell, the outer shell.
0:11:13 > 0:11:15- Oh, right.- Obviously, going into flats,
0:11:15 > 0:11:17we will probably put beaming block floors in.
0:11:17 > 0:11:20Things along that line because it helps with the fire regs.
0:11:20 > 0:11:22- Right.- Concrete stairways
0:11:22 > 0:11:24- at the back.- Right.
0:11:24 > 0:11:26- Yeah.- What is it going to be like up here?
0:11:26 > 0:11:29Because, obviously, this is a fairly spectacular room, as it is.
0:11:29 > 0:11:31Are you going to keep the lofty ceilings and...?
0:11:31 > 0:11:32Depends on
0:11:33 > 0:11:37how we can get around the insulation problems.
0:11:37 > 0:11:42So we might have to extra-insulate the roof to compensate for the walls.
0:11:42 > 0:11:45- Right.- We won't touch the front.
0:11:45 > 0:11:48Can't do anything with the front. We are in a conservation area. So that will have to stay.
0:11:48 > 0:11:52So have you had preliminary discussions with the planners?
0:11:52 > 0:11:53- No.- Oh.
0:11:54 > 0:11:57That's going to be an interesting day for you, isn't it?
0:11:57 > 0:11:58It is.
0:11:58 > 0:12:01I'm on the parish council, the local parish council.
0:12:01 > 0:12:03So I do know some of the planners
0:12:03 > 0:12:04and I know what they're looking for
0:12:04 > 0:12:06within the National Park.
0:12:06 > 0:12:09This is a big project but, as yet,
0:12:09 > 0:12:13Paul doesn't have a figure worked out. But he does have a plan for the
0:12:13 > 0:12:15- work.- I'll do a fair bit of work.
0:12:15 > 0:12:17- Right.- My wife will do a bit of work, as well.
0:12:17 > 0:12:18Project manage.
0:12:20 > 0:12:22We've got a lot of builders at the moment up in the village
0:12:24 > 0:12:25who haven't got work.
0:12:25 > 0:12:28So, yeah, they want to get in and get on with it.
0:12:28 > 0:12:31OK. What about timescale?
0:12:32 > 0:12:35Depending on planning, but we are looking at about 18 months.
0:12:35 > 0:12:37- OK.- Realistically.
0:12:37 > 0:12:38Are you excited by it?
0:12:38 > 0:12:40Yes. Definitely.
0:12:40 > 0:12:43What do you do when you're not doing this kind of thing?
0:12:43 > 0:12:45Fork truck driver at a local food factory...
0:12:45 > 0:12:47- Right.- ..and a retained fireman.
0:12:47 > 0:12:48- A retained fireman.- Yeah.
0:12:48 > 0:12:49Oh, fantastic.
0:12:49 > 0:12:51So you're on call, are you?
0:12:51 > 0:12:52Yes. I'm on call now.
0:12:52 > 0:12:54- On call now?- Yes.
0:12:54 > 0:12:57So if my beeper goes off, I'll be saying goodbye.
0:12:57 > 0:12:59Well, absolutely, you've got a job to do.
0:12:59 > 0:13:01Quite right. Well, congratulations.
0:13:01 > 0:13:03- Good luck.- Yes, lovely.
0:13:03 > 0:13:06- Super.- We look forward to seeing how you get on.- Thank you very much.
0:13:06 > 0:13:08Well, for this one,
0:13:08 > 0:13:12local knowledge and contacts is certainly the key
0:13:12 > 0:13:15and Paul seems to have those in abundance.
0:13:15 > 0:13:19However, this is a conservation area, a National Park,
0:13:19 > 0:13:22and there are covenants from the Duchy of Cornwall.
0:13:22 > 0:13:24This one could take a while.
0:13:24 > 0:13:29You can find out what happens to this place later in the show.
0:13:34 > 0:13:38Lying four miles north of its more famous neighbour Blackpool is the
0:13:38 > 0:13:43altogether more serene town of Thornton-Cleveleys.
0:13:43 > 0:13:47Boasting its own beach along with the promenade and Jubilee Gardens,
0:13:47 > 0:13:51the area has benefited from recent large-scale improvements.
0:13:53 > 0:13:55The property I'm here to see, well,
0:13:55 > 0:13:58it's one where you definitely want to read the small print because the
0:13:58 > 0:14:02auction catalogue describes it as an age-restricted flat
0:14:02 > 0:14:05in a managed complex, which basically means
0:14:05 > 0:14:07a retirement community.
0:14:07 > 0:14:11Now, there are some legal fees that come with the purchase of the flat
0:14:11 > 0:14:15and also there's no mention of how long the leasehold is in the catalogue.
0:14:15 > 0:14:19So this is one where you want to read and reread the legal pack.
0:14:19 > 0:14:20Well, here is the complex.
0:14:20 > 0:14:24It's ground floor, one bedroom, guide price of £25,000 plus.
0:14:24 > 0:14:25Let's look inside.
0:14:33 > 0:14:37It's not often we get a property in a retirement community, so let's find
0:14:37 > 0:14:41out what's going on with all the additional fees and the leasehold.
0:14:44 > 0:14:46Inside, well,
0:14:46 > 0:14:50it's exactly what I thought it would be like in a retirement complex.
0:14:50 > 0:14:53It's sweet, it's quite small, dinky,
0:14:53 > 0:14:56good storage space to one side of the hall and on the other
0:14:56 > 0:15:01you've got your bath, a shower, and your washbasin.
0:15:01 > 0:15:03And the place is...
0:15:03 > 0:15:06It's dated, it's not been loved for a while.
0:15:06 > 0:15:08That bathroom, for instance, has been in there for decades.
0:15:08 > 0:15:10Wallpaper is coming off.
0:15:10 > 0:15:13Here you've got suitcases, bin bags, chairs,
0:15:13 > 0:15:17and then you have your fitted wardrobes, which really dates the
0:15:17 > 0:15:19place in the bedroom. You'd want to take that out.
0:15:19 > 0:15:22I've also spotted storage heaters,
0:15:22 > 0:15:24so you might want to think about getting your gas central heating in.
0:15:24 > 0:15:26But, of course, because it's leasehold,
0:15:26 > 0:15:29you would have to check with the freeholder.
0:15:29 > 0:15:31But, all in all, nothing's worrying me so far.
0:15:31 > 0:15:33It's a nice wee place.
0:15:34 > 0:15:39This purpose-designed flat is perfect for someone in their golden years
0:15:39 > 0:15:41and as there is an age restriction on it,
0:15:41 > 0:15:43its market will be restricted, too.
0:15:43 > 0:15:47So anyone bidding for it needs to be aware of that.
0:15:49 > 0:15:53Through to a reception room, lovely wee...
0:15:53 > 0:15:58..tea trolley! I'd say this place hasn't been redecorated since the late '80s.
0:15:58 > 0:16:00But what you can tell, it's got a charm,
0:16:00 > 0:16:02somebody has loved this as a home.
0:16:02 > 0:16:04Well, here's your kitchen.
0:16:04 > 0:16:08As a kitchen, it works layout-wise because it's actually quite nice how
0:16:08 > 0:16:11you have the differentiation between this and your reception room, but you
0:16:11 > 0:16:13still have a form of open-plan living.
0:16:13 > 0:16:17So a nice wee kitchen area, but definitely needs replaced.
0:16:17 > 0:16:18Now, I've spotted, in each of the rooms,
0:16:18 > 0:16:21you have a pull cord which will alert a warden,
0:16:21 > 0:16:25who is on hand 24 hours a day in a retirement complex like this.
0:16:25 > 0:16:28They are absolutely critical.
0:16:28 > 0:16:31Spotted a wee veranda as well and the sun is out just now,
0:16:31 > 0:16:34you can picture having your cup of tea with breakfast.
0:16:34 > 0:16:35It's really quite charming.
0:16:35 > 0:16:40You know, the place is dated, it absolutely needs a redecoration.
0:16:40 > 0:16:42New kitchen, new bathroom,
0:16:42 > 0:16:46but it wouldn't take much of a budget to really make this place sing.
0:16:49 > 0:16:53Yes, get it right and you could be hitting the high notes here.
0:16:53 > 0:16:58But something that could leave you flat with this flat is the management fees
0:16:58 > 0:17:00that also have to be paid.
0:17:00 > 0:17:04These include services such as the upkeep of communal areas
0:17:04 > 0:17:08and for staff to monitor the emergency pull cords,
0:17:08 > 0:17:11which could total thousands of pounds a year,
0:17:11 > 0:17:15not to mention the uncertainty over the length of the lease.
0:17:15 > 0:17:19Still, if you got this flat for a song, would it be worth the risk?
0:17:35 > 0:17:38Well, we rang a local estate agent and asked him to come along
0:17:38 > 0:17:43to see what this flat, guided at £25,000 plus, could be worth.
0:17:46 > 0:17:47Once this property is done up,
0:17:47 > 0:17:52I believe the remarketing value would be around £55,000 to £60,000.
0:17:56 > 0:17:58This is a flat with a very specific market.
0:17:58 > 0:18:01You're definitely not looking for students to move in.
0:18:01 > 0:18:02It has a real charm to it.
0:18:02 > 0:18:06And we're always saying, do your research, read the legal pack.
0:18:06 > 0:18:07But with a property like this,
0:18:07 > 0:18:11it is particularly important because there's no mention of how long the
0:18:11 > 0:18:13leasehold is in the catalogue.
0:18:13 > 0:18:16So let's find out who did their homework when it went to auction.
0:18:18 > 0:18:22It came at the very end of the day, but was the best saved till last?
0:18:22 > 0:18:2425 is your guide, then.
0:18:24 > 0:18:28Start me, 25. 20.
0:18:28 > 0:18:3020 bid.
0:18:30 > 0:18:31At 20. 21. 22.
0:18:31 > 0:18:3722. 23. 24. 25. 26.
0:18:37 > 0:18:3826. 27. 28.
0:18:38 > 0:18:43Late as it was, there were still a few bidders interested in this lot.
0:18:43 > 0:18:46We rejoin the bidding at £41,000.
0:18:46 > 0:18:49At £41,000 for the first time...
0:18:49 > 0:18:50Second time of asking...
0:18:50 > 0:18:52I'm selling at 41.
0:18:52 > 0:18:53Half, new bidder.
0:18:53 > 0:18:5542. 42.
0:18:58 > 0:18:59And a half.
0:19:00 > 0:19:04Half. 43. 43.
0:19:04 > 0:19:09And a half. Is that out?
0:19:09 > 0:19:1043, with you, madam.
0:19:10 > 0:19:12£43,000, with you and against you.
0:19:12 > 0:19:14I am here to sell. First time...
0:19:14 > 0:19:16Second time... Are you done?
0:19:16 > 0:19:17Selling away, then...
0:19:19 > 0:19:20Well done, madam.
0:19:24 > 0:19:25After a bit of a battle,
0:19:25 > 0:19:29the successful bid of £43,000 belonged to husband and wife
0:19:29 > 0:19:35Rick and Debbie. I'm excited to hear their plans for their latest acquisition.
0:19:35 > 0:19:37- Congratulations.- Thank you.
0:19:37 > 0:19:39Is this your first property?
0:19:39 > 0:19:42It's something we do together and have been doing a number of years now.
0:19:42 > 0:19:46- Ah-ha.- So we started with
0:19:46 > 0:19:51buying houses to rent, so we've got a portfolio of properties
0:19:51 > 0:19:54and then we bought a letting agent to look after our stuff and, obviously,
0:19:54 > 0:19:57other people's stuff and two years ago
0:19:57 > 0:20:01we sold the letting businesses and started buying to sell.
0:20:01 > 0:20:04OK. So you still have your portfolio of rental properties?
0:20:04 > 0:20:09- Yeah.- Yeah.- And you also are enjoying the turnaround of selling on, too?
0:20:09 > 0:20:11Yeah, which is different to the letting,
0:20:11 > 0:20:13where we sort of keep that and it's ongoing,
0:20:13 > 0:20:15where this is different to buying it,
0:20:15 > 0:20:17doing it up and then selling it on. So, yeah.
0:20:17 > 0:20:20It's a lot less hassle, buying a house and selling it,
0:20:20 > 0:20:23rather than doing it up, renting it and then looking after it that way.
0:20:23 > 0:20:24So, yeah. It's good.
0:20:24 > 0:20:28Is that a move you are trying to shift towards, doing the...?
0:20:28 > 0:20:30I don't know. We have always sort of done the rental.
0:20:30 > 0:20:33We have got 70 of our own, which I tend to run the portfolio.
0:20:33 > 0:20:35- 70?!- Yes.
0:20:35 > 0:20:36- That's good going!- Yeah.
0:20:36 > 0:20:38So it keeps us busy, anyway.
0:20:38 > 0:20:39Well, that and you look after...
0:20:39 > 0:20:41You do the accounts at the nursery, as well.
0:20:41 > 0:20:43We've got a children's nursery, as well.
0:20:43 > 0:20:45So, yeah, all busy, busy, busy.
0:20:45 > 0:20:47You are like Superwoman and Superman.
0:20:47 > 0:20:48This is a sideline.
0:21:03 > 0:21:0670 properties and a kids' nursery.
0:21:06 > 0:21:08There's no flies on these two.
0:21:08 > 0:21:09After being made redundant,
0:21:09 > 0:21:14they decided to invest in property way back in 2002 and haven't looked
0:21:14 > 0:21:15back ever since.
0:21:16 > 0:21:19What about this property?
0:21:19 > 0:21:20It's in a retirement community.
0:21:20 > 0:21:23Is that a first for you?
0:21:23 > 0:21:27Yeah, I mean, your dad actually lives in a retirement property in
0:21:27 > 0:21:32St Anne's. So we saw it and loved the concept where you have a communal area,
0:21:32 > 0:21:35where people socialise. This one's actually got a salon for the ladies.
0:21:35 > 0:21:38They have coffee mornings, bingo nights. So it's great.
0:21:38 > 0:21:40It does have a lovely feel to it.
0:21:40 > 0:21:43You can imagine somebody living here and being very happy.
0:21:43 > 0:21:45Not least when you've done your thing to it.
0:21:45 > 0:21:48So what is...? What are the things you're going to do?
0:21:49 > 0:21:52One thing is get rid of everything that's in here.
0:21:52 > 0:21:54There's been a lot left.
0:21:54 > 0:21:57So it's going to be a mass clear-out.
0:21:57 > 0:21:59And then we are going to strip the walls back and
0:21:59 > 0:22:01I think we are going to re-paper and paint.
0:22:01 > 0:22:03New kitchen,
0:22:03 > 0:22:06rip out the wardrobes in the bedroom,
0:22:06 > 0:22:07just to create more space.
0:22:07 > 0:22:09And then bathroom, new bathroom suite,
0:22:09 > 0:22:12and we are also going to try and create a walk-in shower.
0:22:12 > 0:22:14With it being a retirement home,
0:22:14 > 0:22:17we were thinking that people might struggle to get in and out of a bath,
0:22:17 > 0:22:20so we are going to try and create a walk-in shower.
0:22:20 > 0:22:23So, so far, so rosy, but there's that leasehold.
0:22:23 > 0:22:26So there was no mention of how long the leasehold is.
0:22:26 > 0:22:29No. We are kind of struggling with that.
0:22:29 > 0:22:31Places like this have what they call a management company,
0:22:31 > 0:22:35as you will know. And you pay them X amount a month,
0:22:35 > 0:22:36which we still don't know. Obviously,
0:22:36 > 0:22:39you get your legal pack and it's usually part of that
0:22:39 > 0:22:41or an addition to that. And it just wasn't available,
0:22:41 > 0:22:45even up to the day of sort of the auction.
0:22:45 > 0:22:51And still, since the auction, which, as you know, a good few weeks ago now,
0:22:51 > 0:22:52we still haven't tracked them down yet.
0:22:52 > 0:22:54So that's for my solicitor.
0:22:54 > 0:22:58They'll soon be after us when they want the monthly payments.
0:22:58 > 0:23:03That they will and it could end up being more costly than they bargained for.
0:23:03 > 0:23:07That, plus the restricted sales market means Debbie and Rick will have to
0:23:07 > 0:23:09keep a close eye on their budget.
0:23:10 > 0:23:14It's going to be in the region of £6,000 to £7,000.
0:23:14 > 0:23:17And your timescale?
0:23:17 > 0:23:18three to four weeks, max.
0:23:18 > 0:23:20- Yeah.- Wow!
0:23:20 > 0:23:23So you guys really put your mind to it and you shift it when you get...
0:23:23 > 0:23:25Yeah, you do. Well, it's your business.
0:23:25 > 0:23:27Yeah, it's kind of...
0:23:27 > 0:23:30Without being crude, it's dead money just sat here doing nothing.
0:23:30 > 0:23:32And somebody might as well be in here enjoying it, as well.
0:23:32 > 0:23:35So, yes, as soon as we can get it round, turned around,
0:23:35 > 0:23:37get it on the market and hopefully get somebody nice in.
0:23:37 > 0:23:39- Yeah.- Move on to the next one.
0:23:39 > 0:23:42Debbie, Rick, can't wait to see what you do here.
0:23:42 > 0:23:43- Best of luck.- Thank you very much.
0:23:43 > 0:23:46- Thank you.- Thank you.
0:23:46 > 0:23:49Rick and Debbie are pros when it comes to property.
0:23:49 > 0:23:51They've got 70 in their portfolio,
0:23:51 > 0:23:52so clearly they know what they're doing.
0:23:52 > 0:23:56They've got their budget in mind and a really quick timescale to turn the
0:23:56 > 0:23:57property around.
0:23:57 > 0:24:00The only potential problem could be not knowing how long
0:24:00 > 0:24:04that leasehold is. I still can't believe they don't know what's going on there.
0:24:04 > 0:24:07You can find out what happens later in the show.
0:24:08 > 0:24:13Coming up in Derby, this house might be a bit of a tight fit for some...
0:24:13 > 0:24:15I don't want to embarrass myself,
0:24:15 > 0:24:19but I'm going to gamble that I can get this through.
0:24:19 > 0:24:24And find out how Rick and Debbie squeezed more features in this flat.
0:24:24 > 0:24:27We are especially pleased with the bathroom because we did manage to get
0:24:27 > 0:24:28in that extra shower cubicle.
0:24:31 > 0:24:34Back now to the village of Princetown, Devon.
0:24:34 > 0:24:38So named as it forms part of the Duchy of Cornwall's estate in the
0:24:38 > 0:24:40Dartmoor National Park.
0:24:41 > 0:24:46Here, I saw this former Methodist chapel, dating from the late 1800s.
0:24:46 > 0:24:49I was expecting a big expanse of pews,
0:24:49 > 0:24:52high ceilings and maybe even an organ.
0:24:53 > 0:24:56OK, OK...
0:24:56 > 0:24:57But...
0:24:59 > 0:25:01A bit flat, really.
0:25:02 > 0:25:04Flat being the operative word.
0:25:04 > 0:25:09Because the new owner, retained firefighter, Paul, was hoping to convert his
0:25:09 > 0:25:1280,000 purchase into two flats.
0:25:12 > 0:25:15We are going to be very sympathetic with the property.
0:25:15 > 0:25:17Have two flats upstairs.
0:25:17 > 0:25:19A flat downstairs.
0:25:19 > 0:25:24Incorporating at the back of the property three garages which can't be seen
0:25:24 > 0:25:27from the road. A bit like a coach house really.
0:25:27 > 0:25:29We've then got to write to the Duchy because they've put a couple of
0:25:29 > 0:25:30- covenants on it.- OK.
0:25:30 > 0:25:33Fairly big problems if you don't get agreements for that.
0:25:33 > 0:25:36Change it into storage units.
0:25:36 > 0:25:39I joke about a swimming pool in here or put a gym.
0:25:39 > 0:25:41- Well...- It's big enough!- Yeah.
0:25:41 > 0:25:45No stranger to redeveloping, although not on such a grand scale,
0:25:45 > 0:25:48Paul still had to decide on a budget.
0:25:48 > 0:25:53He had an 18-month timescale and a project manager in his wife Bridget.
0:25:54 > 0:25:55We are back four years,
0:25:55 > 0:25:58three months and two days later to see the progress,
0:25:58 > 0:26:01with no sign of a gym or swimming pool.
0:26:01 > 0:26:06Music: Take Me To Church by Hozier
0:26:08 > 0:26:13In fact, Paul has built three houses inside the chapel.
0:26:13 > 0:26:17Dividing up the structure vertically to create upstairs living areas and
0:26:17 > 0:26:19downstairs bedrooms.
0:26:19 > 0:26:23This house at the front of the chapel has three double bedrooms,
0:26:23 > 0:26:25two sharing a family bathroom,
0:26:25 > 0:26:29and a master with a walk-through wardrobe and an en-suite shower.
0:26:33 > 0:26:37Access to the other two houses is from the new entrances on the right-hand
0:26:37 > 0:26:41side of the chapel. House two in the midsection of the exterior has a
0:26:41 > 0:26:45family bathroom off the front entrance hall to serve the two front
0:26:45 > 0:26:50bedrooms and a master en-suite bedroom near the back of the chapel.
0:26:50 > 0:26:54Paul decided upside down living worked better.
0:26:54 > 0:26:57More light in the living areas and, as heat rises,
0:26:57 > 0:26:59the bedrooms will be cooler.
0:26:59 > 0:27:03Paul installed a total of two miles of underfloor heating pipe.
0:27:12 > 0:27:15Property three has two bedrooms.
0:27:15 > 0:27:19A family bathroom and an open-plan living space.
0:27:26 > 0:27:29The National Park didn't want flats, hence the change of plan,
0:27:29 > 0:27:32but I think three houses are a triumph.
0:27:35 > 0:27:36Using the same bathroom furniture,
0:27:36 > 0:27:41fixtures and tiles across all three houses afforded economies of scale
0:27:41 > 0:27:42in purchasing.
0:27:44 > 0:27:48Something which also applies to the kitchen cabinets and work surfaces
0:27:48 > 0:27:51throughout the development.
0:27:51 > 0:27:55Savings from bulk purchasing like these are essential when a project
0:27:55 > 0:27:57overruns its timescale.
0:28:08 > 0:28:12Over to Paul and his favourite part of the project.
0:28:13 > 0:28:16This is the upstairs at the front part of the building.
0:28:16 > 0:28:19As you can see, we've got the big windows that we had.
0:28:19 > 0:28:21And now we've got a nice, stable floor.
0:28:21 > 0:28:25It was a little bit unsteady when we first filmed it but, as you can see
0:28:25 > 0:28:27now, it is a bit of a show stopper.
0:28:29 > 0:28:33Paul replaced the old rickety ceiling joists with an open metal web system.
0:28:33 > 0:28:37This type of joist has greater strength than just timber,
0:28:37 > 0:28:40gives better access for running services through,
0:28:40 > 0:28:44whilst improving vibration and sound transfer.
0:28:44 > 0:28:46But before Paul could install new materials,
0:28:46 > 0:28:49he had one of the biggest jobs of the build.
0:28:49 > 0:28:53Removing the 280 tonnes of stuff that was inside,
0:28:53 > 0:28:56it all had to go out with a wheelbarrow out the front door, so...
0:28:56 > 0:29:00And then getting everything back inside because it's quite hard to build
0:29:00 > 0:29:02houses inside a big building.
0:29:02 > 0:29:06And Paul's burdens didn't end there.
0:29:06 > 0:29:10MUSIC: Crying In The Chapel by Elvis Presley
0:29:12 > 0:29:17His finances got stretched with the extended timescale,
0:29:17 > 0:29:22with an estimated £3,500 going in council tax, water and electricity.
0:29:29 > 0:29:34But consumption of mains gas was zero to start with, because it cost
0:29:34 > 0:29:36£10,000 to get it into the building.
0:29:43 > 0:29:47To be fair, Paul only worked on the project from nine to five three days a week.
0:29:47 > 0:29:50The rest of the time was spent on his full-time jobs.
0:29:50 > 0:29:52If I brought those three days a week together,
0:29:52 > 0:29:54throughout all the weeks that we've done,
0:29:54 > 0:29:56it's probably only actually taken a year.
0:29:56 > 0:30:00Delays with planning were a major factor but, eventually, Paul found a way.
0:30:05 > 0:30:07So, what's it all cost?
0:30:07 > 0:30:12Spent near on £400,000 and that's including the purchase price of
0:30:12 > 0:30:18£80,000. So the original idea was to have flats and rent them out but,
0:30:18 > 0:30:20because we went down the line of building houses,
0:30:20 > 0:30:25so we had to basically empty the whole property, and start again,
0:30:25 > 0:30:29we decided that we will probably sell all three properties in the end.
0:30:29 > 0:30:33So, let's find out from two estate agents the valuations on his three
0:30:33 > 0:30:37houses, cunningly disguised as one chapel.
0:30:38 > 0:30:42Of the three houses, I favour the one at the front,
0:30:42 > 0:30:47just due to the lovely aspect plus also the lovely tall light windows.
0:30:47 > 0:30:50The three properties have been converted to a very high standard.
0:30:50 > 0:30:52And they've been completed very well.
0:30:52 > 0:30:56The garden space obviously for each individual property would have been an ideal scenario.
0:30:56 > 0:30:59But other than that, I think he's done as good as he can.
0:30:59 > 0:31:04The negative parts about the property is no parking and no garden.
0:31:04 > 0:31:08The agents gave a top value for the front house of 210,000,
0:31:08 > 0:31:15200,000 for the middle house and 185,000 for the rear two-bedroomed house,
0:31:15 > 0:31:19giving a grand total of £595,000,
0:31:19 > 0:31:23a potential pre-tax profit of 195,000.
0:31:23 > 0:31:25Worth all the effort and time, then, Paul?
0:31:29 > 0:31:31Yeah, that's good valuations.
0:31:31 > 0:31:35So, any advice to someone wishing to buy a chapel with restricted
0:31:35 > 0:31:39covenants in a National Park conservation area?
0:31:39 > 0:31:42It's going to be a long road you are going down, so...
0:31:42 > 0:31:44But, yeah, do your homework and look forward to it.
0:31:58 > 0:32:02The city of Derby sits on the banks of the River Derwent in Derbyshire.
0:32:02 > 0:32:07It's where English philosopher Herbert Spencer was born in 1820.
0:32:07 > 0:32:12He was a supporter of Charles Darwin's theory of evolution and coined the
0:32:12 > 0:32:14phrase "survival of the fittest".
0:32:14 > 0:32:19MUSIC: Survivor by Destiny's Child
0:32:20 > 0:32:24I wonder if today's property is a natural selection...
0:32:26 > 0:32:29This is our property.
0:32:29 > 0:32:34Entry, so you've got access to the back of the property, and...
0:32:34 > 0:32:37I'm hoping this job was done by "Arthur" at half price because he's
0:32:37 > 0:32:41only done half a job. That shouldn't be like that, I've got to say.
0:32:41 > 0:32:43Right. Three bedrooms.
0:32:43 > 0:32:45Guide price of £68,000.
0:32:45 > 0:32:48I'm going in to see what you get for your money.
0:32:50 > 0:32:52The steps are a bit too high for my old footballer's knees,
0:32:52 > 0:32:55I've got to say. But you are off the street,
0:32:55 > 0:32:58you're straight into the first reception room.
0:32:58 > 0:33:00As you come in, it does feel a little bit cold.
0:33:00 > 0:33:03You can smell a little bit of damp.
0:33:03 > 0:33:06Can't see it as yet but it does feel a little bit damp in here.
0:33:06 > 0:33:08Old-fashioned gas fire there, look,
0:33:08 > 0:33:10which...
0:33:10 > 0:33:13They've not finished fitting that. Surely, they haven't.
0:33:13 > 0:33:17And through into the second reception room.
0:33:17 > 0:33:19And as you come in,
0:33:19 > 0:33:23you can see there's damp issues around the window,
0:33:23 > 0:33:25you can see this is old-fashioned, as well.
0:33:25 > 0:33:28It's a little bit rickety, the stairs there.
0:33:28 > 0:33:30Brand-new windows, though. Happy with that.
0:33:30 > 0:33:34And then a bit further towards the back of the property,
0:33:34 > 0:33:36you've got a galley kitchen.
0:33:36 > 0:33:38Now, it's a very narrow galley kitchen
0:33:38 > 0:33:40and I don't want to embarrass
0:33:40 > 0:33:44myself, but I'm going to gamble that I can get this through.
0:33:44 > 0:33:46Here goes.
0:33:46 > 0:33:48Ah, not too bad. Get all this out.
0:33:48 > 0:33:52Get this kitchen out, get something new in here and then this...
0:33:52 > 0:33:55..is an extension.
0:33:55 > 0:33:58Now, there is no ceiling in here, and I'll tell you why,
0:33:58 > 0:34:01because it's actually sopping wet.
0:34:01 > 0:34:02You can see the colour of the wood change.
0:34:02 > 0:34:07You've got dark wood, which is wet, and then this is a little bit drier there, with the lighter wood.
0:34:07 > 0:34:10Bathroom down here, for me, just doesn't work.
0:34:10 > 0:34:13It's really tight, off the kitchen, as well.
0:34:15 > 0:34:16Get it all out. Start again.
0:34:16 > 0:34:19Find out where that water is coming in.
0:34:19 > 0:34:21Reconfigure down here for me.
0:34:21 > 0:34:26MUSIC: Rearrange by Miles Kane
0:34:30 > 0:34:33To fully get my head around how to fix this layout,
0:34:33 > 0:34:35let's have a look at what upstairs has to offer.
0:34:37 > 0:34:40At the front of the house is a large bedroom.
0:34:41 > 0:34:44But look at this down here, can't ignore this.
0:34:44 > 0:34:45It's a bit too small for my backside, but...
0:34:47 > 0:34:53Look at this. That is proper old school.
0:34:53 > 0:34:56Anyway, let's move on.
0:34:56 > 0:34:59Down the corridor, in the middle, is the second bedroom,
0:34:59 > 0:35:00which is a pretty decent size.
0:35:02 > 0:35:06OK, so down the corridor, then, and before I go into the last room,
0:35:06 > 0:35:09I don't mind this feature up here, but that,
0:35:09 > 0:35:11that glass there is not going to pass fire regs.
0:35:11 > 0:35:14You would need half-hour rated glass in there.
0:35:14 > 0:35:18But I'd want to try and keep that feature. I do like the light coming into the corridor.
0:35:18 > 0:35:20On this side, though, look at this.
0:35:20 > 0:35:23Absolutely sopping wet, that.
0:35:23 > 0:35:26Just falling away at your fingertips.
0:35:26 > 0:35:30That's definitely got to be sorted and in here, the third bedroom...
0:35:30 > 0:35:33Which does feel tiny.
0:35:33 > 0:35:34Absolutely tiny.
0:35:34 > 0:35:37The dimensions of this room are very, very small.
0:35:37 > 0:35:40Would you get a bed in here? Possibly a single.
0:35:40 > 0:35:44A very small one. But I believe it would be much better as a bathroom.
0:35:44 > 0:35:47Get that bathroom upstairs.
0:35:57 > 0:36:00Losing a bedroom might be a radical idea,
0:36:00 > 0:36:03so we've asked along the auctioneer, who sold the house, to come along and
0:36:03 > 0:36:06give his opinion on the layout issues.
0:36:06 > 0:36:09With regard to the bathroom and the kitchen arrangement,
0:36:09 > 0:36:10it just doesn't work.
0:36:10 > 0:36:11That bathroom needs to come upstairs.
0:36:11 > 0:36:13Yeah, you are going to lose a bedroom.
0:36:13 > 0:36:15But the bedroom is incredibly small anyway.
0:36:15 > 0:36:18I think, get the bathroom upstairs, make the most of what is here
0:36:18 > 0:36:20and offer it to the market with what people
0:36:20 > 0:36:22would expect for modern occupation.
0:36:22 > 0:36:25And if it was put on the resale market as a two-bed property,
0:36:25 > 0:36:29what could this house guided at 68 grand be worth?
0:36:29 > 0:36:32I would say, if offered to the market to a good standard, this house would
0:36:32 > 0:36:35sell for somewhere in the region of £110,000.
0:36:35 > 0:36:38And if it was kept as a three bed?
0:36:38 > 0:36:41I would say, if you look at the comparison of the sale of a two bedroom or
0:36:41 > 0:36:44a three bedroom, the difference would be outweighed by the fact that
0:36:44 > 0:36:46bathroom is downstairs.
0:36:46 > 0:36:48I would actually say that the figures were the same for both the
0:36:48 > 0:36:50two bedroom and the three bedroom.
0:36:52 > 0:36:56So, there's a bit of damp at the back, a bit of damp at the front,
0:36:56 > 0:36:58and a bit more damp upstairs.
0:36:58 > 0:37:01There is a fair amount of work that needs to be done here and a fair
0:37:01 > 0:37:04amount of cash that needs to be spent to get it right.
0:37:04 > 0:37:06That said, the windows are OK.
0:37:06 > 0:37:11Let's find out whose spirits weren't dampened when it went under the hammer.
0:37:11 > 0:37:12Mid-terrace, close to town,
0:37:12 > 0:37:15accommodation detailed for you in your catalogue there.
0:37:15 > 0:37:17Where do you want to start with this?
0:37:17 > 0:37:18Who's got £60,000?
0:37:18 > 0:37:19Thank you, we are away.
0:37:19 > 0:37:22At £60,000, I have here.
0:37:22 > 0:37:2361 now elsewhere.
0:37:23 > 0:37:26£60,000 his bid and one.
0:37:26 > 0:37:2861 is bid and two.
0:37:28 > 0:37:30And three now. 63 is bid.
0:37:30 > 0:37:33- And four.- Despite the poor condition of the house,
0:37:33 > 0:37:36there were a number of interested bidders vying for this lot.
0:37:36 > 0:37:41We rejoin the bidding at £79,500.
0:37:41 > 0:37:44And a half. At 79,500 for the second time.
0:37:44 > 0:37:46We are selling, ladies and gentlemen, make no mistake.
0:37:46 > 0:37:49New place, back of the room, at 80,000.
0:37:49 > 0:37:51And a half again. And a half.
0:37:51 > 0:37:5381, sir? 81.
0:37:53 > 0:37:54And a half. Shakes her head.
0:37:54 > 0:37:59Well fought. At £81,000, then, at the back of the room for the first time.
0:37:59 > 0:38:03At £81,000 for the second time.
0:38:03 > 0:38:06Fair warning, third and final time, the hammer is up, it goes...
0:38:06 > 0:38:08She is back at 81 and a half.
0:38:08 > 0:38:10Another one, sir? Try one more?
0:38:10 > 0:38:1282. No.
0:38:12 > 0:38:16You are out. 81 and a half, you're bidding number, sir?
0:38:16 > 0:38:20It's 361. For the first time, second time, third and final time.
0:38:20 > 0:38:22Sure and done it goes.
0:38:22 > 0:38:25Sold at 81,500 and thank you, sir.
0:38:25 > 0:38:29Bidder Andy must have property in his blood because he bumped into his
0:38:29 > 0:38:31relatives at the auction.
0:38:31 > 0:38:34He is following in his parents' footsteps by getting into the
0:38:34 > 0:38:36property business.
0:38:36 > 0:38:41I met up with Andy and dad Ian to find out why this house
0:38:41 > 0:38:43became his first auction purchase.
0:38:44 > 0:38:46- Ian, nice to meet you. - Good to meet you, as well.
0:38:46 > 0:38:47Andy, nice to meet you, too, chaps.
0:38:47 > 0:38:49- Nice to meet you.- What made you want this property?
0:38:49 > 0:38:54I think the main thing for me was it was in the right location because
0:38:54 > 0:38:56it's not far from the unis.
0:38:56 > 0:39:00I viewed it twice with both you and Mum. So, yeah...
0:39:00 > 0:39:02You viewed it twice and you still wanted to buy it?
0:39:02 > 0:39:04Yeah!
0:39:04 > 0:39:06Yeah, absolutely.
0:39:06 > 0:39:09Some would call us crazy.
0:39:09 > 0:39:11Tell me, right... Let's get to the nitty-gritty of it.
0:39:11 > 0:39:13Let's start downstairs.
0:39:13 > 0:39:14What are your plans downstairs here, then?
0:39:14 > 0:39:16Yeah, so, at the moment, what I thought was,
0:39:16 > 0:39:19obviously, you've got a kitchen basically down here and then a bathroom.
0:39:19 > 0:39:23- Yeah.- Now, what I'm thinking is take away the bathroom,
0:39:23 > 0:39:24put that upstairs...
0:39:24 > 0:39:25OK.
0:39:25 > 0:39:31And then what we will do is extend the kitchen and have a double doors at the end.
0:39:31 > 0:39:34Gotcha. Will you keep a toilet down here?
0:39:34 > 0:39:36- No.- The toilet upstairs.
0:39:36 > 0:39:38Yeah, we are going to have the toilet upstairs, switch it around,
0:39:38 > 0:39:40as you can see it's going to need a full rewire.
0:39:40 > 0:39:42Full works.
0:39:42 > 0:39:44Full works.
0:39:44 > 0:39:47We're going to need central heating. It's going to need plasterwork.
0:39:47 > 0:39:49Everything, basically.
0:39:49 > 0:39:52- Let's talk damp.- Damp, yeah.
0:39:52 > 0:39:54There's a lot of it. It's rife in this building.
0:39:54 > 0:40:00- Absolutely, yeah.- Is that going to cost you a lot of money to get it right?
0:40:00 > 0:40:02- Yeah.- It's effort and time, really.
0:40:02 > 0:40:04I don't think it's necessarily the money,
0:40:04 > 0:40:06it's a case of knowing what to do and how to do it.
0:40:06 > 0:40:11- That's the key thing.- Also, we've got a roof repair that needs to happen.
0:40:11 > 0:40:14- OK.- So the roof is going to be done,
0:40:14 > 0:40:18so obviously that will be the first thing that we do, get the roof...
0:40:18 > 0:40:20- Get it watertight.- Yeah, absolutely.
0:40:20 > 0:40:21And the same thing down here.
0:40:21 > 0:40:23It needs a DPC down here.
0:40:23 > 0:40:26- Yeah.- We are going to do all that, as well.
0:40:26 > 0:40:29Regular viewers will know that DPC stands for damp proof course.
0:40:29 > 0:40:32This is a treatment to prevent damp.
0:40:32 > 0:40:34And there are other techniques.
0:40:34 > 0:40:37Either way, you can get a damp proof specialist to advise you on which is
0:40:37 > 0:40:39the best course to take.
0:40:39 > 0:40:42I'm sure that, in this house,
0:40:42 > 0:40:45solving the damp issue is going to take a bit of time and money.
0:40:45 > 0:40:47What kind of budget have you got for that?
0:40:47 > 0:40:48How much have you got to spend?
0:40:48 > 0:40:50I'm going for 25.
0:40:50 > 0:40:57- 25k?- 25k. It's a bit optimistic, but I think we will try and keep to that.
0:40:57 > 0:40:58So, 25 grand budget.
0:40:58 > 0:41:00- Yeah.- And how long is it going to take, the work?
0:41:00 > 0:41:01I'm saying four months.
0:41:01 > 0:41:03- Yeah.- Four months from start to finish.
0:41:03 > 0:41:06- Yeah.- Yeah.- And do you get involved in the work at all or...?
0:41:06 > 0:41:08- A team of builders?- Yeah, I mean, Andrew...
0:41:08 > 0:41:11We are getting together a lot of quotation work at the moment.
0:41:11 > 0:41:14So, yeah, there will be a lot of people involved in getting it done.
0:41:14 > 0:41:16Andrew will control it.
0:41:16 > 0:41:18And that's what he's really keen to do.
0:41:18 > 0:41:22And, yeah, we'll make sure it's done properly and in the right timescale.
0:41:22 > 0:41:24What are you hoping to get back off this?
0:41:24 > 0:41:27Are you looking to sell it or rent it out?
0:41:27 > 0:41:32Potentially, we would look to buy it from Andrew when he's actually done
0:41:32 > 0:41:37all the renovation work and our other properties are buy-to-let properties,
0:41:37 > 0:41:39so that's what we'd be wanting to continue with.
0:41:39 > 0:41:43Let me get this straight. You are buying this and you're going to do it up
0:41:43 > 0:41:45and then...potentially...
0:41:45 > 0:41:48..you're potentially going to buy it off of Andy?
0:41:48 > 0:41:49- Yeah.- OK,
0:41:49 > 0:41:53so are you going to try and make as much money as you possibly can off
0:41:53 > 0:41:56- your dad?- That's the balance.
0:41:57 > 0:42:01- OK.- Yeah. It's going to be a lot of discussions along the way.
0:42:01 > 0:42:03I bet.
0:42:03 > 0:42:04And my wife will have quite a bit of say.
0:42:04 > 0:42:07Because it's a formula we've developed over the years.
0:42:07 > 0:42:09- OK.- And it has to be right.
0:42:09 > 0:42:10So this will be right.
0:42:10 > 0:42:12And then we'll look to potentially buy it.
0:42:12 > 0:42:15But I'm going to want to make a good bit of money.
0:42:15 > 0:42:20So it's making sure that these guys have got a good house to go buy,
0:42:20 > 0:42:23but it also gets me a bit of money.
0:42:23 > 0:42:24I wish you all the best, chaps.
0:42:24 > 0:42:26I hope it works out.
0:42:26 > 0:42:30- Thank you.- I hope he doesn't take too much profit
0:42:30 > 0:42:32- off you.- No, no.
0:42:32 > 0:42:34Mum and Dad have been good to me,
0:42:34 > 0:42:36so I'll make sure they get a good job here.
0:42:36 > 0:42:38See, you've always got to look after your parents.
0:42:38 > 0:42:40- Absolutely.- Andy, that's very clever.
0:42:40 > 0:42:43- Good luck to you, pal.- Cheers.- Ian, good luck.
0:42:43 > 0:42:45- All the best, chaps.- All the best. - Thank you.
0:42:45 > 0:42:49So, Andy and Ian have got all the right ideas, but getting this place
0:42:49 > 0:42:52up and running for 25 grand?
0:42:52 > 0:42:54I'm not sure that's going to work.
0:42:54 > 0:42:59Now, I know Andy knows all about costings, but I think Andy's costings are
0:42:59 > 0:43:04going to be costly. You can find out how they get on later in the programme.
0:43:07 > 0:43:10We've seen what happened on one of our development properties, but did the
0:43:10 > 0:43:12other two fare better or worse?
0:43:12 > 0:43:16Yeah, did they finish the project with gusto and are ready to move onto
0:43:16 > 0:43:18the next one or are they put off for life?
0:43:18 > 0:43:20Let's go back and find out.
0:43:24 > 0:43:27Time to head back to the Lancashire coast, where I saw something slightly
0:43:27 > 0:43:31unusual for a Homes Under The Hammer property.
0:43:31 > 0:43:36It was a ground floor flat in a complex restricted to those aged over 65.
0:43:37 > 0:43:40One thing that wasn't complex was the layout.
0:43:40 > 0:43:42With a bathroom off the hall,
0:43:42 > 0:43:47a decent-sized bedroom and a living room with a small kitchen just off it.
0:43:47 > 0:43:50So, nice wee kitchen area, but definitely needs replaced.
0:43:50 > 0:43:54Now, I've spotted, in each of the rooms, you have a pull cord which will
0:43:54 > 0:44:00alert a warden who is on hand 24 hours a day in a retirement complex like this.
0:44:00 > 0:44:05Services like these, of course, cost money, so when taking on this auction lot,
0:44:05 > 0:44:09you would have to pay the annual management fees and, on top of that,
0:44:09 > 0:44:11there was also a worry about the lease,
0:44:11 > 0:44:15as there was no mention of how many years were left on it in the legal pack.
0:44:15 > 0:44:20Experienced property developers Debbie and Rick knew all this but it
0:44:20 > 0:44:24didn't put them off purchasing the flat for £43,000.
0:44:26 > 0:44:30It was a bit risky, all right, but with 70 properties in their portfolio,
0:44:30 > 0:44:34they had the experience to turn this round.
0:44:34 > 0:44:36It's in a retirement community.
0:44:36 > 0:44:37- Is that a first for you?- Yeah,
0:44:37 > 0:44:42so we saw it and loved the concept where you have a communal area,
0:44:42 > 0:44:45people to socialise... This one's actually got a salon for the ladies.
0:44:45 > 0:44:47They have coffee mornings, bingo nights.
0:44:47 > 0:44:49So it's great.
0:44:49 > 0:44:55They also had smart plans on how to best modernise the flat itself before selling it on.
0:44:55 > 0:44:57With it being a retirement home,
0:44:57 > 0:45:00we are thinking that people might struggle to get in and out of
0:45:00 > 0:45:03a bath, so we are going to try and create a walk-in shower.
0:45:03 > 0:45:07They were going to arm their regular building team with seven grand and
0:45:07 > 0:45:09three to four weeks to get the work done.
0:45:09 > 0:45:14So it is a surprise that we are actually heading back three months later
0:45:14 > 0:45:17to see how they got on with this little retirement flat.
0:45:17 > 0:45:23MUSIC: Golden Years by David Bowie
0:45:34 > 0:45:39I think it's safe to say this flat now has its best years ahead of it.
0:45:39 > 0:45:43The revamped bathroom also has a walk-in shower.
0:45:48 > 0:45:52Debbie and Rick have done a gold standard refurb throughout.
0:46:24 > 0:46:30So, the renovation is complete and will make a lovely home for someone in their golden years.
0:46:30 > 0:46:34However, have Rick and Debbie found out how many years are left on the
0:46:34 > 0:46:37lease since we last saw them?
0:46:37 > 0:46:40When we first bought the property, we didn't know what the leasehold was.
0:46:40 > 0:46:46Since then, we found out it was 125 years and it started in 1989,
0:46:46 > 0:46:48which leaves us 97 years.
0:46:50 > 0:46:54That's a relief. They also discovered that the total service charges and
0:46:54 > 0:46:59the ground rent here amount to £3,300 per year.
0:46:59 > 0:47:04So in the last three months, that will have already cost them £825,
0:47:04 > 0:47:08so I'm a bit surprised they didn't push to get the work done closer to
0:47:08 > 0:47:11their four-week original plan.
0:47:11 > 0:47:13In regards to the timescale, we are over.
0:47:13 > 0:47:15But we have been on holiday.
0:47:15 > 0:47:19In the meantime, we have bought two other properties and our contractor
0:47:19 > 0:47:20has been here, there and everywhere.
0:47:20 > 0:47:24When he was here, it actually took him, in a total time, about four weeks.
0:47:27 > 0:47:31It might have taken a little while longer than planned, but the building
0:47:31 > 0:47:38work itself came in just under their seven grand budget with a total spend here of £6,500.
0:47:38 > 0:47:45This project seems to have gone very smoothly but, even with Debbie and Rick's years of experience,
0:47:45 > 0:47:49there are always unexpected problems to deal with on every property.
0:47:50 > 0:47:54The biggest challenge on the project was probably the water cylinder,
0:47:54 > 0:47:56which you don't see, it's in a cupboard.
0:47:56 > 0:48:00But it was replacing the old one, which leaked, to bring it up to date with
0:48:00 > 0:48:05the new system. Originally, we thought we could keep the patio doors,
0:48:05 > 0:48:06but they were made of wood.
0:48:06 > 0:48:10Again, very old. So we had to put new plastic ones in.
0:48:10 > 0:48:15We would have liked to put French doors in but, to keep within the
0:48:15 > 0:48:18regulations of the building, we had to put sliding patio doors in.
0:48:18 > 0:48:21Overall, the thing we are most pleased with is the overall outcome of the
0:48:21 > 0:48:24property, but we are especially pleased with the bathroom because we did
0:48:24 > 0:48:26manage to get in that extra shower cubicle.
0:48:26 > 0:48:30Rick and Debbie do have other rental properties in their portfolio,
0:48:30 > 0:48:33but this flat is destined for the sales market,
0:48:33 > 0:48:38so we've asked along two local estate agents for their opinions.
0:48:38 > 0:48:40The main selling points of the property is that
0:48:40 > 0:48:43the bathroom incorporates both a bath and a shower.
0:48:43 > 0:48:46The negatives towards the property are that it is on a busy road,
0:48:46 > 0:48:48so you can hear a bit of noise pollution.
0:48:48 > 0:48:52However, the pro side to that is the fact that some people do actually like
0:48:52 > 0:48:55to people watch and so they do like that on their doorstep at the same time.
0:48:55 > 0:48:57First impressions of the property,
0:48:57 > 0:48:59it's been done to a good standard.
0:48:59 > 0:49:01It's nice and modern. New kitchen and bathroom.
0:49:02 > 0:49:04Demand for this type of property is hit and miss.
0:49:04 > 0:49:07Sometimes, they can sell really quickly.
0:49:07 > 0:49:09Sometimes, they take a bit of time to go, as well.
0:49:09 > 0:49:11It will have a limited market,
0:49:11 > 0:49:16as you have to be 65 years or older to live in this retirement community.
0:49:16 > 0:49:21But I'm sure this modernised flat, only five miles from the beach
0:49:21 > 0:49:23and local shops, will be popular.
0:49:23 > 0:49:27Just what kind of sales return can Debbie and Rick expect on their
0:49:27 > 0:49:30£49,500 investment?
0:49:31 > 0:49:33Due to the level of competition in this area,
0:49:33 > 0:49:36the average property is going for 75,000.
0:49:36 > 0:49:38But due to the standard of this property,
0:49:38 > 0:49:41I would put an initial price of 85,000 on.
0:49:41 > 0:49:46On the sales market, we'd expect this to achieve round about £85,000.
0:49:46 > 0:49:47I think that's kind of realistic.
0:49:47 > 0:49:50- Yeah.- It's on at 89,950 at the moment.
0:49:50 > 0:49:54But we'd be looking in the region of 85,000, yeah.
0:49:54 > 0:49:57Yeah. That would be good.
0:49:57 > 0:50:01That's a profit of £35,500 before taxes,
0:50:01 > 0:50:05fees and, of course, what their total maintenance and ground rent fees come
0:50:05 > 0:50:08to by the time they've sold the flat.
0:50:09 > 0:50:11Not bad going, though.
0:50:11 > 0:50:14Debbie and Rick must be pleased with how it's turned out.
0:50:14 > 0:50:17The project has been quite a good one for us...
0:50:17 > 0:50:19- Yeah.- ..because it's been a quick turnaround.
0:50:19 > 0:50:22- Yeah.- So this was a baby one, but it was a good one.
0:50:22 > 0:50:26This experience has been a little bit different with it being a retirement community,
0:50:26 > 0:50:28as in having to liaise with the warden,
0:50:28 > 0:50:32having residents to consider, but everybody has been absolutely lovely,
0:50:32 > 0:50:34very excited about Homes Under The Hammer.
0:50:34 > 0:50:38Everybody wants to tune in to watch it, so we will definitely do it again.
0:50:41 > 0:50:43I've never played for Derby County.
0:50:43 > 0:50:44Scored against them, obviously.
0:50:44 > 0:50:47But I did visit the city earlier in the show.
0:50:47 > 0:50:52It was raining. I'm hoping this job was done by Arthur at half price
0:50:52 > 0:50:53because he's only done half a job.
0:50:53 > 0:50:57Sorry. This three-bed terrace had seen drier days.
0:50:57 > 0:51:00Smell a little bit of damp, can't see it as yet,
0:51:00 > 0:51:02but it does feel a little bit damp in here.
0:51:02 > 0:51:07MUSIC: Love Is All Around Me by Wet Wet Wet
0:51:09 > 0:51:13Nowhere more so than that downstairs bathroom...
0:51:13 > 0:51:17Now, there is no ceiling in here because it's actually sopping wet.
0:51:17 > 0:51:20..and the upstairs corridor.
0:51:20 > 0:51:24Look at this. Absolutely sopping wet, that.
0:51:24 > 0:51:26Damp was all around me.
0:51:26 > 0:51:30In summary, the house was wet, wet, wet.
0:51:34 > 0:51:38But building professional Andy saw the appeal and bought
0:51:38 > 0:51:43it for 81 and a half grand with a view to doing it up and selling it back to his parents
0:51:43 > 0:51:45for their rental portfolio.
0:51:45 > 0:51:49I liked his style when I met him with his dad, Ian.
0:51:49 > 0:51:53It was in the right location because it's not far from unis.
0:51:53 > 0:51:57I viewed it twice with both you and Mum. So, yeah.
0:51:57 > 0:51:59So you viewed it twice and you still wanted to buy it?!
0:51:59 > 0:52:01Yeah!
0:52:01 > 0:52:07- Yeah, absolutely.- Nothing was going to dampen Andy's spirits on this one,
0:52:07 > 0:52:10so let's see how he's got on five months later.
0:52:10 > 0:52:15Being close to the universities meant that this was a no-brainer as a student let
0:52:15 > 0:52:19and Andy has converted the house accordingly.
0:52:19 > 0:52:23The front lounge is now a bedroom and, yes, that is the front door.
0:52:23 > 0:52:26It'll make sense a little later.
0:52:26 > 0:52:30He's had a damp proof course installed and re-plastered throughout,
0:52:30 > 0:52:33even hacking back to bare brick himself.
0:52:33 > 0:52:38What was the rear reception is now a communal living area.
0:52:38 > 0:52:40In sharp contrast to how it was,
0:52:40 > 0:52:43I think a new tenant will find this house to be...
0:52:43 > 0:52:50# Home and dry. #
0:52:50 > 0:52:54The old downstairs bathroom and kitchen area is stunning,
0:52:54 > 0:52:56with integrated appliances.
0:52:56 > 0:52:59As well as a way into the rejuvenated garden,
0:52:59 > 0:53:04the French doors give independent access to the lounge and upstairs via
0:53:04 > 0:53:09the side alleyway. With full central heating and double glazing,
0:53:09 > 0:53:12it will become a welcome place to feel...
0:53:12 > 0:53:18# Home and dry
0:53:18 > 0:53:25# Home and dry. #
0:53:25 > 0:53:31The house will be let furnished and all the bedrooms have wardrobe and study space.
0:53:31 > 0:53:35So the bedrooms are now made up of this single and two doubles.
0:53:38 > 0:53:42And what was the smallest bedroom has now made a superb bathroom.
0:53:42 > 0:53:46Although it did require a new soil part installation.
0:53:46 > 0:53:50Worth the cost, as were the roof repairs that were needed.
0:53:52 > 0:53:54We did know about that before, but...
0:53:54 > 0:53:59So we allocated costs, but one of the surprises was that there was actually
0:53:59 > 0:54:01dry rot in some of the joists.
0:54:01 > 0:54:03So that wasn't ideal.
0:54:03 > 0:54:06That was just above the kitchen. So that kind of went pretty smoothly.
0:54:06 > 0:54:08We got a sub-contractor in.
0:54:08 > 0:54:12Working with tradesmen is one project management skill, but how was it
0:54:12 > 0:54:14working with Mum and Dad?
0:54:14 > 0:54:19We did have a few differences of opinion but, you know, we got through it,
0:54:19 > 0:54:24as you do. So, yeah, they have been a massive help and guide, as such,
0:54:24 > 0:54:25with my first project.
0:54:25 > 0:54:27So, what's been the biggest learning curve?
0:54:27 > 0:54:32I had quite a good idea about costs and how much they would be.
0:54:32 > 0:54:37But I think the thing I have learnt is logistically and individual tasks.
0:54:37 > 0:54:38So the garden, for example.
0:54:38 > 0:54:42It was undulated, the soil was everywhere.
0:54:42 > 0:54:47You couldn't see the path, you couldn't see the back hard landscaping.
0:54:47 > 0:54:50Yeah, now it's a good place for the students just to chill out,
0:54:50 > 0:54:52maybe have a barbecue.
0:54:52 > 0:54:56During the renovation, Andy decided to improve the quality of some things,
0:54:56 > 0:55:00fitting oak veneer flooring, better quality bathroom and kitchen,
0:55:00 > 0:55:03which has increased the budget.
0:55:03 > 0:55:06It's gone up to £27,000.
0:55:06 > 0:55:09But we've increased the specification throughout the house.
0:55:09 > 0:55:12And so I think it's money well spent.
0:55:12 > 0:55:15It's not just about cosmetic work, though.
0:55:15 > 0:55:18Landlords are required to meet regulations.
0:55:18 > 0:55:22He didn't need a HMO licence in this location, but Andy needed to comply
0:55:22 > 0:55:27with regs like fire alarms, heat detectors and carbon monoxide alarms,
0:55:27 > 0:55:29so costs had to be factored in.
0:55:29 > 0:55:35But, in this case, the improved spec had increased timescale and budget.
0:55:35 > 0:55:37We actually had pretty much finished within four weeks,
0:55:37 > 0:55:42but we had to do loads of snags within that month and we had to finish
0:55:42 > 0:55:46off the garden. Well, I did. So, yeah...
0:55:48 > 0:55:51Green-fingered Andy paid £81,500 at auction,
0:55:51 > 0:55:54plus £27,000 refurbishing the place,
0:55:54 > 0:55:58so we invited along two local agents to get their opinions.
0:55:58 > 0:56:02First impressions, this property is of a very high standard.
0:56:02 > 0:56:03It's light, it's bright,
0:56:03 > 0:56:09it's incredibly inviting for the prospective purchaser or the tenants in occupation.
0:56:09 > 0:56:13The demand for student property in older terraced housing
0:56:13 > 0:56:14is on the wane in Derby.
0:56:14 > 0:56:17So you've got to have this kind of quality to compete.
0:56:17 > 0:56:21Otherwise people move into purpose-built new flats or halls.
0:56:22 > 0:56:27Students can also look to local councils' landlord accreditation schemes
0:56:27 > 0:56:30to assist in finding good, safe accommodation.
0:56:30 > 0:56:35So clearly, high standards in this competitive market was the right way to go.
0:56:35 > 0:56:39So, what's the property worth now it's been refurbished?
0:56:39 > 0:56:45Anything over Andy's £108,500 total spend is a potential profit.
0:56:45 > 0:56:50Resale, it ought to go on the market round about the £125,000 mark.
0:56:50 > 0:56:57I see this property on the open market by private treaty within the region of £125,000 to £135,000.
0:56:57 > 0:57:00I was hoping for the top end of that,
0:57:00 > 0:57:02as people would expect.
0:57:02 > 0:57:04But, yeah, I'm pretty happy with that.
0:57:04 > 0:57:08Let's hope Andy's parents will be happy to pay that top figure.
0:57:08 > 0:57:13Which would give him a potential profit of £26,500 before taxes and
0:57:13 > 0:57:18expenses. But what yield can Mum and Sad expect on their purchase of
0:57:18 > 0:57:21£135,000?
0:57:21 > 0:57:24This property, if it's let out to students per room, per week,
0:57:24 > 0:57:27would be within the region of £75 per week.
0:57:27 > 0:57:29If the property is let out into the student market,
0:57:29 > 0:57:33it would roughly be £75 per week per room.
0:57:33 > 0:57:37Working on the agents' assumption of a 44-week tenancy,
0:57:37 > 0:57:41that total is £9,900 a year for the three rooms,
0:57:41 > 0:57:45giving Mum and Dad a yield of nearly 7.5%.
0:57:45 > 0:57:50In fact, Andy's parents have contracts with three students already on that
0:57:50 > 0:57:53basis, so it's a win-win situation.
0:57:53 > 0:57:56So, what's next for Andy?
0:57:56 > 0:57:59So I'm going to be doing my chartership next year with the
0:57:59 > 0:58:01Royal Institute Of Chartered Surveyors.
0:58:01 > 0:58:04So that's what I'm going to be focused on next.
0:58:04 > 0:58:09But, in the meantime, I think I'll be trying to purchase another property
0:58:09 > 0:58:12and refurbing it, so that's what's next for me.
0:58:15 > 0:58:19That's it for today, but we'll have more properties and enthusiastic buyers
0:58:19 > 0:58:22- for you next time.- And maybe that enthusiasm's rubbed off and you're
0:58:22 > 0:58:25thinking about giving property a go yourself.
0:58:25 > 0:58:27If so, there'll be lots more advice for you here,
0:58:27 > 0:58:29next time on Homes Under The Hammer.
0:58:29 > 0:58:30- Bye-bye.- Bye-bye.- Goodbye.