Episode 62 Homes Under the Hammer


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Episode 62

Terraces in Prestatyn, north Wales, and Darley Dale in the Peak District along with a shop and flat in Folkestone in Kent are all sold at auction.


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Transcript


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Hello and welcome to the show.

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Now, it's no secret that we both love property development stories.

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Yes, and it never gets old,

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because with every new experience comes lessons learned.

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Yes, and when it comes to property, your education should never end.

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So, if you fancy learning some good stuff,

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head down to your local property auction.

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Those who buy often at the auctions know a few tricks of the trade.

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But they're no secret, do your research, view the property,

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and please read the legal pack.

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Yeah, sounds simple, doesn't it?

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But you'd be amazed at how many people

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don't stick to those simple rules.

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Let's find out the properties that we're featuring on today's show.

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I visit Prestatyn in North Wales,

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on top of my list for this three bed mid-terrace.

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It's a good view, but does this property have one of those?

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Let's find out.

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Lucy is in Folkestone,

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but it's the smell, not the sights, that bother her

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in this shop below a one-bedroom flat.

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Damp, you can just smell it the minute you walk in.

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And I'm in Darley Dale, Derbyshire.

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And a three bed terraced cottage

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where the decor takes me back to...

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Upton Park, scored there many times,

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I've got to say, thank you very much.

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All these properties have been sold at auction.

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And we will find out who bought them and what they paid

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-when they went under the hammer.

-Sold, well bought, sir.

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Situated in North Wales, Prestatyn has many holiday attractions.

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This statue depicts the town's location

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at the most northerly point of Offa's Dyke,

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one of our most popular national trails.

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It runs 177 miles south to Chepstow.

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# I'm walking... #

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I'm just a short walk from the railway station,

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but it is a steep climb.

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Well, I'm in a very desirable part of Prestatyn

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to see a three-bedroom mid-terrace with a guide price of 95,000 quid.

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Now what you'd really like

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if you were to buy a property in this part of town,

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is a good view.

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Does this property have one of those?

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Let's find out.

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Wow! Yep, it certainly does.

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# I can see for miles and miles

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# And miles and miles and miles... #

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Ah.

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Sadly, the views inside aren't quite as spectacular.

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Never mind, what have we got? Stairs up to the bedrooms there,

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we've got a living room over to the right-hand side.

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Nice fireplace, actually.

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Another living room over to this side, dual aspect.

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So, a door out to the rear courtyard there.

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Nice window, making the most of those views there.

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Which is good.

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It's definitely looking in the dilapidated category of properties,

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but I'm not seeing anything structurally that worries me.

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I quite like this,

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that is an entrance into that first right-hand sitting room there.

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So you can walk around the property which is always nice.

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And then through to the rear where you've got this kitchen.

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It almost feels like this is a bit of an extension and certainly,

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judging by the - ha-ha - original beams, ha-ha,

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it probably is.

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Strange enough, worst part of the house,

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probably last-in, first-out sort of thing.

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This definitely needs a lot of work, but then, so does the whole house.

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Normally I'd be looking at the state of the property

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and sucking in air a lot and tutting.

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But the location is fantastic.

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So is that alone enough to make it a good investment?

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# Do you wonder

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# Is it really worth your while...? #

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So, upstairs, bathroom there.

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Definitely need a refurbishment.

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But three good-sized bedrooms.

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One on that side. One towards the back,

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but it's really the ones at the front

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you're interested in, aren't you?

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because those are the ones which have that outstanding view.

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And you know what, it's one of those properties that

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you forgive it pretty much everything

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because of that.

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# It's glorious

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# Don't give it up... #

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Well, at the back of the property,

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and you've got this little courtyard area.

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That's actually the side of the kitchen with the bedrooms above.

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I think your land goes that way,

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and also a little bit that way

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to give you a little bit of outside storage.

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But in a list of names to describe the state of the garden,

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overgrown would be in the top three.

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So, another to add to the comprehensive list of to-dos,

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and the cost is certainly starting to grow.

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And though my heart says, "Yes, of course, it's worth it,"

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my head is now not so sure.

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-# Is it really, really worth it?

-I don't know

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-# Is it really, really worth it?

-I don't know... #

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So, what does the local estate agent think?

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It's a project. There is evidence of penetrating dampness

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and rising dampness here,

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so you've got to sort out the damp problem.

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Parking is very limited.

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The answer here would be to do as they've done nearby,

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where they excavate the front of the property

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and put a parking area in there,

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maybe a carport, which would make all the difference.

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So, add that driveway to the to-do list.

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And can a property guided at £95,000

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still see a decent return to go with that excellent review?

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My opinion of value here, when renovated,

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would be that the property would be something circa £175,000.

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Situated where it is, and near a holiday town,

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I can see this property potentially appealing as a holiday let.

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But how would the figures stack up?

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First, as a conventional long-term let.

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On the rental market, renovated and refurbished,

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this would achieve £700 per calendar month.

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And as a holiday let?

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I would look at the rate per week.

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It's something circa £700 a week.

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That's interesting.

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One week's holiday let could match one full month's rent.

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And though with a holiday let,

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you're unlikely to get full occupancy,

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if you could get, say, 15 to 20 weeks a year,

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you could be quids in.

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Well, it's a good price for a property in this kind of location.

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So who was inspired to buy a house on a hill overlooking Prestatyn?

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Let's go to the auction and find out.

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And with the Prestatyn house being right near the end of the auction,

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it was up for grabs in an almost empty room.

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So a three-bedroom mid-terrace,

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in need of a full upgrade and refurbishment scheme.

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The guide on this is £95,000, can I say 90?

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What's that, sir? 80,000, we are up and running at £80,000.

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Can I say 85 anywhere else?

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Anybody else, 85. 90?

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Five? 100?

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Five?

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Fair enough. 100, I have then, I'm looking for 102?

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I'll move on, for the first time at 100,000,

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second time for £100,000?

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Last chance, all going at £100,000...

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Sold. Well done, sir, you got it at 100.

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And that successful bid of £100,000

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was made by local Prestatyn man Tony.

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And he joined me back at the house with his brother, Ian.

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Tony, Ian, good to meet you both.

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-And you, Mike.

-Congratulations.

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-Thank you.

-Fantastic view.

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-Yeah, great view.

-And pretty nice house.

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Tell me why you wanted to buy it?

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Well...

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We only saw it advertised at auction, didn't we,

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about 16 hours before the actual auction day.

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16 hours?

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-Yeah.

-Right.

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So, but we live on the hillside anyway.

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-Oh, do you?

-Yeah. I live just about 1,000 metres down the road.

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So we know houses like this don't come up for sale very often here.

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-Right.

-And we know these views are a premium.

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-Right.

-We had a quick look through the window,

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and went to auction the next day.

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Tell me about you two first.

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We're brothers. We've been in partnership in business for

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26, 27 years.

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-Wow...

-And we used to have an indoor go-kart track.

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-Oh, what fun.

-Ten, 15 minutes away from here.

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Wasn't a great work-life balance,

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needed to do something different

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so we decided to get into the holiday-let market,

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-so...

-Oh, OK.

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So we got a few,

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this is the sixth or seventh one actually that we've...

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Seventh one we've bought together, yeah.

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Bought together, yeah. We've got two that are going live next week,

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and then, hopefully, the rest will be ready

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within the next three or four months hopefully, won't they?

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Fingers crossed.

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-Fingers crossed, yeah.

-So how is the holiday market in this area?

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It's changed a lot.

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It used to be a lot of people coming for two weeks holidays,

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but now its people coming for weekend breaks.

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What we're looking at as well is that we are right at the end

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or the beginning, of the Offa's Dyke path here.

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So there is a lot of walkers coming to this area to holiday.

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So, hopefully, we might get some of them renting the place.

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# She told me to walk this way

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# Talk this way... #

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Depending on whether you're walking south from here, or north to here,

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the path is just a stone's throw away.

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So there really is potential for a holiday-let market

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right on their doorstep.

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And though some people might be grateful for a roof over their heads

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and a soft bed after a long walk,

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I think most people might want a little more

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than is currently on offer.

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So tell me what you're going to do to sort it out then.

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THEY LAUGH

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Strip it right back.

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Strip it right back. Needs everything, windows, doors, rewire,

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central heating system, obviously new kitchens, bathrooms.

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So we're basically going to take it right back.

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But one of the main areas is, it's got no parking,

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so we're going to create a parking space at the front.

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By digging out?

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By digging out and putting a balcony over the top of it.

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-Oh, nice.

-With a glazed frontage

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and then that will be like an outside area as well.

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Oh, wow.

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And we've done that at another property before, so...

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Will that need planning permission?

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We don't think so, so fingers crossed it won't.

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I think it'll just be building recs, so...

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OK, and will that have like an outdoor seating area

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with a view and everything as well?

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Yeah, that's right. It'll go out from here.

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That would be amazing. Really capitalise on where it is.

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So what's the time scale and the budget for doing the work?

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We're looking at about four months, budget-wise,

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anywhere between sort of 30 and 40,000.

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And so is the plan to get more?

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I mean, if it's working, why don't you just continue, I guess?

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Yeah, we just, we've got another one at the moment

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that's going to take up of a lot of our time as well.

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So, once that one's boxed off as well as this one,

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then, yes, we'll certainly be looking at more in the future.

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Yeah, get these two finished first.

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And how does it work between you two guys?

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We basically do all the non-skilled labour together.

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Yeah, we do all of the ripping out.

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Tony usually finds the properties,

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and then we'll do all the ripping out, don't we?

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-Yeah.

-And then we'll get the professionals in

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to do all the proper work.

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And has it turned out to be less stressful and time-consuming

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-in the work-life balance?

-At the moment, no.

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No, far from it.

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But, hopefully the long-term picture it will, it'll turn out that way.

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We did say we've never worked so hard in our lives

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didn't we, this year?

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-Exactly.

-Bring back the go-karts!

-Yeah, exactly, yeah.

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Oh, fantastic. Well, congratulations.

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-Thank you.

-Good luck with it,

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and looking forward to see how you get on.

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Yeah. Thank you.

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-Nice to meet you.

-Cheers, cheers.

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So, Ian and Tony buying the house for the view,

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as you might have expected,

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to add to their portfolio of holiday properties.

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I'm sure it will go very well.

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Just a bit of sorting out to do first,

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before it is ready to take those first holiday-makers.

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

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Lucy is in Folkestone in Kent,

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a place ever popular with those hunting for property.

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And soon to get more popular

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when the new high-speed rail link starts -

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from the coast to London in under an hour.

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Well, just on Folkestone's pedestrianized shopping road here,

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is a mixed-use commercial and residential property.

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There's a shop on the ground floor

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and a flat spread over the two floors above.

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Now its guide price at auction was £80,000 to £82,000.

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Now the auction catalogue happened to mention

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that it's been in the same ownership since the 1960s,

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so can I expect some psychedelic wallpaper

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or even some '60s-filled decor?

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You never know.

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Well, I absolutely love the exterior.

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And no '60s interiors at all.

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But it absolutely wholeheartedly 100%...

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SHE SNIFFS

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..smells hideous in here.

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Damp, you can just smell it the minute you walk in.

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It hits you in the face.

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I mean, you can imagine, if you can smell beyond that,

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see beyond everything in here,

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you've got quite a little unusual shop frontage.

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I actually like that.

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And I do know that this is in an area

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where you can't change things like that,

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so it's going to probably have to stay as it is.

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Probably going to cost a fair bit,

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because that damp is really worrying.

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So you've got your shop downstairs, the commercial premises.

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Residential upstairs, the one-bedroom flat.

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But what I'm really glad to see is this door.

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Now the other side of this door is a little alley way,

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so whoever wants to buy this, rent it, live here,

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has their own independent access,

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so they don't need to traipse through the shop to get upstairs.

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I'm going to get upstairs and have a good look around.

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# Looks like we're getting out to explore... #

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So upstairs is the first level of the flat.

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It's not huge, you've got a very narrow staircase.

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Little staircase leading up there to the bedroom.

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And the kitchen through here, we've got a very quirky room.

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It's such an unusual shape.

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Look at it, it's sort of goes like a square shape but a bit off.

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And again, it absolutely stinks.

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My goodness. Look at that.

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The damp is everywhere on the first floor.

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Let's see if the second is as bad.

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So upstairs, well, this room

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completely mirrors the downstairs space.

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And again, the damp, you can see it you can smell it.

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So I definitely think there's something wrong with that roof.

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Now in the auction catalogue, it's interesting,

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it calls, well, this is a bedroom and next door through here a study.

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And that's because there's no window, therefore no natural light.

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And this couldn't be classed as a bedroom,

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because of the window issue.

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But honestly, it might be pushing it as a study.

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It's tiny.

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So, as a one-bedroom flat over two floors,

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with all the cosmetic work needed,

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those windows will have to be replaced like for like,

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as this is a conservation area.

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Plus, extensive replastering

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and potentially very expensive roof repairs.

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Could this flat and shop guided at 80 to 82 grand

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add up to a reasonable investment?

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We asked along a local estate agent to give us his thoughts.

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So this property is located in a very good location.

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We are at the foot of the main high street,

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and on the sort of cut through to the old high street area,

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which is the creative quarter.

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The small unit shop area downstairs,

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I think would suit a sort of boutique-type shop.

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Probably a sole trader,

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somebody who wants to run their own business from there.

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Sounds an ideal spot, but what about the flat?

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The flat area of the property is actually quite interesting.

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It's over two floors,

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it's got sash windows to the front and the rooms are unusual shapes.

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And you have, although it's only one-bedroom,

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we have a separate room as a sort of study area.

0:16:170:16:20

But it doesn't have a window or ventilation,

0:16:200:16:22

so it can't be a bedroom.

0:16:220:16:23

But it could be quite appealing to somebody,

0:16:230:16:25

and the location is very good.

0:16:250:16:27

So, what could the shop and flat sell for on the open market?

0:16:270:16:31

Once the property is fully renovated,

0:16:320:16:34

I feel that the commercial unit downstairs,

0:16:340:16:36

we'd be looking at around £30,000.

0:16:360:16:39

And the residential one-bedroom property up here, at £75,000.

0:16:390:16:45

As one building altogether, I feel that might be a better route,

0:16:450:16:49

and I think somebody would pay around £110,000 for it

0:16:490:16:53

as one unit that they could use together.

0:16:530:16:55

Well, this shop and flat are not without their problems.

0:16:560:16:59

It's in a good location,

0:16:590:17:01

and it's great that you can sort out independent access for the flat,

0:17:010:17:05

but there is so much damp to deal with.

0:17:050:17:07

So, who was tempted to buy this quirky Folkestone property?

0:17:070:17:11

Let's find out who bid for it at auction.

0:17:110:17:13

Put your hand up if you haven't bought a property yet.

0:17:130:17:15

Oh, one person.

0:17:150:17:17

All right, how much can we start the next bidding at then?

0:17:170:17:20

We've got a guide of 80 to 82,000.

0:17:200:17:23

Start me where you will,

0:17:230:17:24

but £80,000 should see hands flicking up everywhere.

0:17:240:17:27

£80,000 anywhere?

0:17:270:17:30

£80,000 to start me.

0:17:300:17:32

There's going to be a bun fight

0:17:320:17:33

if this doesn't sell in the room afterwards.

0:17:330:17:35

£70,000?

0:17:350:17:36

Thank you very much, £70,000 I am bid.

0:17:360:17:39

£70,000 I have, 72.

0:17:390:17:42

And four? 76, and eight.

0:17:420:17:45

And 80? At £80,000?

0:17:450:17:47

Lady's bid on the right-hand side at £80,000, I have.

0:17:470:17:51

82, I have.

0:17:510:17:52

What about 85?

0:17:520:17:53

After a low start,

0:17:530:17:54

bids then exceed the top of the guide-price band.

0:17:540:17:57

We rejoined the bidding at 92,000.

0:17:570:18:00

At £92,000, 95,

0:18:000:18:03

at 98, sir?

0:18:030:18:04

98. 100?

0:18:060:18:09

£98,000 I am bid,

0:18:090:18:11

100, do I see?

0:18:110:18:12

For the first time, at 98,000.

0:18:120:18:15

For the second time, at 98,000.

0:18:150:18:18

For the third and final time, 98,000, are you all done?

0:18:180:18:23

Sold at 98,000.

0:18:230:18:24

At £98,000, the buyer was John, who's already a local resident.

0:18:240:18:29

Guess what he does for a living?

0:18:290:18:31

# Hey, Mr Taxi Driver! #

0:18:310:18:34

And the good news is, this is the cabbie's first property purchase,

0:18:340:18:37

and he's bought it for himself.

0:18:370:18:39

John, congratulations.

0:18:400:18:41

I think it's brilliant what you've bought here at auction.

0:18:410:18:44

You've got a lot of work to do.

0:18:440:18:45

How do you feel now? The hammer went down, and it's yours.

0:18:450:18:48

-Scared.

-Are you scared?

0:18:490:18:52

No, this is quite a lot of work to do.

0:18:520:18:55

Yes.

0:18:550:18:57

So tell me about your journey

0:18:570:18:58

and how you've got to end up being here in this position.

0:18:580:19:01

Well, I'm renting a place at the moment and getting a bit older now,

0:19:010:19:05

so I thought if I don't get myself a place, I never will, so...

0:19:050:19:09

So how did you manage to finance this?

0:19:090:19:12

Had to take out a bridging loan at the moment

0:19:120:19:14

because they won't give me any,

0:19:140:19:16

a mortgage on it, because it's part-commercial, part-residential.

0:19:160:19:21

So were are you hoping to buy this

0:19:210:19:23

and then be able to get a mortgage on it straightaway?

0:19:230:19:26

I hoped to yes, but

0:19:260:19:30

they don't seem to want to know, no.

0:19:300:19:32

So you've had to get a bridging loan,

0:19:320:19:34

which is really costly.

0:19:340:19:35

-Yes.

-And is that worrying you at all?

0:19:350:19:38

Not hugely, but as long as it's not too long,

0:19:380:19:43

as long as I get something sorted fairly quickly. Yeah.

0:19:430:19:47

# I want a roof over my head

0:19:470:19:51

# And bread on the table... #

0:19:510:19:54

So, John has decided it's time to own a home.

0:19:540:19:56

However, a bridging loan might not be the best choice,

0:19:560:19:59

they're really designed for short-term,

0:19:590:20:02

and they can be very expensive,

0:20:020:20:04

with a much higher interest rate than a conventional loan.

0:20:040:20:07

It's always wise to arrange a loan and the interest rate

0:20:070:20:10

before you put your hand up at auction.

0:20:100:20:12

But the first thing John should do now,

0:20:120:20:14

is get a specialist to source a good mortgage deal and quickly.

0:20:140:20:18

We're still in a rush to put a roof over his head,

0:20:180:20:21

John has a property with serious roof problems.

0:20:210:20:25

So tell me about the roof, it looks as though there's leaks everywhere,

0:20:270:20:31

it could be quite an expensive job to rectify.

0:20:310:20:32

Have you been up to check it out?

0:20:320:20:34

No, no, no.

0:20:340:20:35

I'm a bit of a wimp, me, I'm scared of heights.

0:20:350:20:39

So, I'll just get somebody else to go up there.

0:20:390:20:41

John, you need to sort it out.

0:20:410:20:43

I mean, there's obviously problems up on the roof.

0:20:430:20:45

Yes, yes, yeah, I have to get someone in

0:20:450:20:47

who knows what they're doing.

0:20:470:20:49

So are you worried that what you've bought

0:20:490:20:52

might end up costing so much more than what you initially thought?

0:20:520:20:55

I hope it doesn't, but...

0:20:550:20:56

The roof is the biggest, biggest expense, really.

0:20:580:21:02

Unfortunately, while John did view the property before the auction,

0:21:020:21:05

he didn't consult any experts about the damp.

0:21:050:21:09

# Oh, no... #

0:21:090:21:12

Have you got any idea of the budget,

0:21:120:21:14

and how much money you're going to need to spend here

0:21:140:21:16

to turn things around?

0:21:160:21:19

No, no...

0:21:190:21:21

John, you're really frightening me.

0:21:210:21:23

How much do you think you might need to do the work here?

0:21:230:21:27

If I wanted to change any of the windows,

0:21:270:21:29

it's a conservation area, so...

0:21:290:21:31

You're looking at about a grand a piece on those sash windows.

0:21:310:21:35

So I take it you're probably not going to be changing the windows?

0:21:350:21:38

No, no. Not in the short-term, no.

0:21:380:21:41

It's just the roof really, it's the main cost.

0:21:410:21:44

Have you got any idea how much that might cost you?

0:21:440:21:46

I did phone somebody up and I managed to get a...

0:21:460:21:49

they gave a rough sort of idea of about three and a half grand,

0:21:490:21:53

plus scaffolding.

0:21:530:21:54

And that was just on the phone.

0:21:540:21:55

They hadn't seen it, so that's a really loose estimate.

0:21:550:21:58

-Rough, rough.

-OK, right, that's worrying me as well.

0:21:580:22:02

What about your funds?

0:22:020:22:05

So, did you put all your money into this property?

0:22:050:22:07

-Yes, yeah.

-So you don't have any side funds to pay for the works?

0:22:070:22:12

Not a lot, no, no.

0:22:120:22:14

How long do you think it's going to take you?

0:22:140:22:16

It's probably going to take a year to sort the place out.

0:22:160:22:19

I work on weekends, and in the evenings,

0:22:190:22:21

so I'll just have to try and do a bit during the day.

0:22:210:22:24

Are you worried about renting out the shop?

0:22:240:22:26

Once you've got it tip-top and all looking good,

0:22:260:22:28

you've got to find somebody that wants to rent it from you.

0:22:280:22:30

What sort of business could you see running from here?

0:22:300:22:33

Yeah, there's a lot of art shops and I think down,

0:22:330:22:36

down sort of around the old high street area there.

0:22:360:22:39

Are you going to be all right?

0:22:390:22:42

-Hopefully.

-THEY LAUGH

0:22:420:22:44

Listen, we shouldn't laugh, because this is quite serious.

0:22:440:22:47

I don't want you spending any more money on that bridging loan.

0:22:470:22:50

No, no, no, I've got to get that sorted as soon as possible.

0:22:500:22:54

-Good luck with this.

-Thank you.

0:22:540:22:55

I really can't wait to see how you turn it around.

0:22:550:22:58

-Lovely meeting you.

-Thank you, thanks very much.

0:22:580:23:00

Thank you.

0:23:000:23:01

John wanted to leave the world of renting behind,

0:23:020:23:05

to buy his first property.

0:23:050:23:06

But he's bought a bit of a tricky one here.

0:23:060:23:09

My biggest worry is his finances!

0:23:090:23:11

That bridging loan!

0:23:110:23:13

We'll find out which problems John solves later in the show.

0:23:130:23:16

Still to come, in Derbyshire this three-bed Darley Dale cottage

0:23:180:23:22

gets me channelling my inner Sherlock Holmes.

0:23:220:23:25

I'm taking a guess, that was the colour of the wallpaper.

0:23:250:23:28

And at John's Folkestone property,

0:23:300:23:32

avian residents mean his roof repair plans have had their chips.

0:23:320:23:37

Seagulls were on there.

0:23:370:23:40

We're heading back to North Wales now,

0:23:420:23:44

and the picturesque seaside town of Prestatyn

0:23:440:23:47

where, earlier, I saw this three-bedroom mid-terraced property

0:23:470:23:50

guided at 95 grand.

0:23:500:23:52

My first thought was, does it have a good view?

0:23:520:23:55

Yep, it certainly does.

0:23:590:24:00

# Ain't no mountain high enough

0:24:000:24:03

# Ain't no valley low enough

0:24:030:24:05

# Ain't no river wide enough

0:24:050:24:07

# To keep me from you... #

0:24:070:24:10

Sadly, the internal view of the property was far less inspiring.

0:24:100:24:14

Particularly in the kitchen and bathroom.

0:24:140:24:17

The three bedrooms, though, were a good size,

0:24:170:24:20

and the front ones enjoyed this spectacular vantage point.

0:24:200:24:23

Paying 100 grand for the property

0:24:260:24:28

were brothers Ian and Tony, on the right.

0:24:280:24:30

Years ago, they had decided to sell their demanding go-kart business

0:24:310:24:35

and go into property development

0:24:350:24:37

in the hope of a better work-life balance.

0:24:370:24:40

They already have six other holiday lets in their portfolio.

0:24:400:24:43

And were aiming this for the same market,

0:24:430:24:46

because of its proximity to the Offa's Dyke path.

0:24:460:24:49

When we met them, I hit them with my favourite question,

0:24:500:24:53

you know the one.

0:24:530:24:55

So tell me what you're going to do to sort it out then?

0:24:550:24:58

Strip it right back, needs everything, windows, doors, rewired,

0:24:590:25:02

central heating system.

0:25:020:25:04

One of the main areas is, it's got no parking,

0:25:040:25:06

so we're going to create a parking space at the front.

0:25:060:25:08

-By digging out?

-By digging out,

0:25:080:25:10

and putting a balcony over the top of it.

0:25:100:25:12

-Oh, nice.

-With a glazed frontage.

0:25:120:25:14

All that digging and clearing would certainly worsen

0:25:160:25:19

my work-life balance.

0:25:190:25:20

We're back, just over eight months later, to see the changes.

0:25:220:25:26

# I can't wait to go home

0:25:260:25:29

# I'm on my way... #

0:25:290:25:31

And what a change.

0:25:310:25:33

They've really solved the parking issue.

0:25:330:25:36

And opened the view up to the outside space.

0:25:360:25:39

# Over the castle on the hill... #

0:25:390:25:44

I can't wait to look inside.

0:25:440:25:46

Remember the old bathroom?

0:25:470:25:49

It now has a much more hygienic flooring

0:25:490:25:52

and waterproof cladding for a groutless mould-free finish.

0:25:520:25:56

Worthy of a 5-star hotel.

0:25:560:25:58

And ideal for the demands of frequent changeovers

0:25:580:26:01

with holiday lets.

0:26:010:26:02

Do you remember how the master bedroom looked?

0:26:040:26:07

Nope? No worries, I'll take you back to when it was like this.

0:26:070:26:11

# Take me back to when... #

0:26:110:26:14

Well, actually, Ed, it was February 2017,

0:26:140:26:18

we did mention it earlier.

0:26:180:26:20

Anyway, this bedroom being at the front of the house

0:26:200:26:22

is one of the two that really enjoy those fantastic views.

0:26:220:26:26

And there's lots of touches of luxury here in the dressing room.

0:26:260:26:30

# I can't wait to go home... #

0:26:300:26:34

Well, just keep singing for a minute, we're nearly done now.

0:26:340:26:37

And here's bedroom two.

0:26:370:26:39

And finally, upstairs, the back bedroom.

0:26:470:26:50

# Over the castle on the hill

0:26:500:26:55

# Hey, hoo, oh... #

0:26:550:26:58

Well, we'd better hurry things along now,

0:26:580:27:00

because I think Ed needs to get off home.

0:27:000:27:02

Pretty much anything you would've done to the kitchen

0:27:020:27:04

would've been an improvement.

0:27:040:27:06

And this certainly is.

0:27:060:27:08

And the front room, let's face it, it was pretty user-hostile.

0:27:080:27:13

Now, it's got a homely log burner making it, ooh, homely.

0:27:130:27:18

And the dining room has a rejuvenated feature,

0:27:180:27:22

over to Tony and Ian.

0:27:220:27:23

You can get off now, Mr Sheeran.

0:27:240:27:26

We decided to put the French doors,

0:27:260:27:28

just to bring the garden into the house, almost.

0:27:280:27:31

Because nowadays, a good garden is almost like an extra room.

0:27:310:27:34

It's like an extra living room.

0:27:340:27:35

And the brothers didn't do it all on their own.

0:27:350:27:38

They called in a relatively seasoned tradesman,

0:27:380:27:41

Ian's father-in-law, Bob, and his best friend, Brian.

0:27:410:27:44

We cleared all the rubbish out of the way, didn't we?

0:27:440:27:46

-And they had all the tools to hand.

-Well, they were great, weren't they?

0:27:460:27:49

-Oh, yeah, couldn't have done it without them.

-No.

0:27:490:27:51

But working with family and friends can be tricky.

0:27:510:27:53

Was there any sibling rivalry?

0:27:530:27:55

We wouldn't be brothers if we didn't fall out, would we?

0:27:550:27:58

No.

0:27:580:27:59

The chaps are fairly cool about doubling the timescale

0:28:000:28:02

to eight months. They put new drains in at the back,

0:28:020:28:05

plus planning for the carport took its time, as did digging it out.

0:28:050:28:09

There must have been about 20 odd tonne that we'd actually handballed

0:28:110:28:14

at some stage up to a skip 200 metres up the road, and between the

0:28:140:28:18

two of us, we shifted most probably 18.5 of those tonnes, didn't we?

0:28:180:28:21

-Yeah, definitely.

-So, yeah.

0:28:210:28:23

I'm told "handballed" is a technical term

0:28:230:28:26

used in the wheelbarrow fraternity.

0:28:260:28:28

So, how's the new work-life balance compared with the old days?

0:28:280:28:32

Well, we had a little say in when we worked at the go-kart tracks,

0:28:330:28:36

saying, "It's not exactly digging coal, is it?"

0:28:360:28:39

But this has been worse.

0:28:390:28:40

The original budget was £30,000-40,000,

0:28:400:28:43

and Tony and Ian reckon they've spent £42,000 before fees.

0:28:430:28:47

But have they learned anything for the future?

0:28:470:28:49

Find somewhere with better access.

0:28:510:28:53

Yeah, without a doubt.

0:28:530:28:55

The chaps also learned that a previous occupier was

0:28:550:28:58

privileged to be one of the few saxophonists

0:28:580:29:01

who is rumoured to have played with Dusty Springfield.

0:29:010:29:04

On occasion, we do hear the slight sort of tones of a saxophone

0:29:040:29:08

late at night, don't we?

0:29:080:29:10

# Spooky... #

0:29:100:29:12

The chaps have started taming the overgrown back garden,

0:29:140:29:16

and they're going to invest more in its landscaping in due course.

0:29:160:29:20

They've found it's got three distinct levels,

0:29:200:29:23

and want to capitalise on it.

0:29:230:29:25

# Ooh, spooky... #

0:29:260:29:28

The spectre of estate agents' valuations may put a shiver down

0:29:320:29:35

some developers' backs, but I suspect not here. So first, the

0:29:350:29:39

agent who's visited this particular haunt before work started.

0:29:390:29:46

It's a nice traditional property.

0:29:460:29:48

Dates back, I think, to about the 1890s.

0:29:480:29:50

So they haven't ruined it in any way.

0:29:500:29:53

I think it's a really, really nice property.

0:29:530:29:55

I think the property has been done to a very high standard,

0:29:550:29:58

a really nice finish, even down to the doors.

0:29:580:30:01

So, having bought it for 100,000 and spending 42,000 on it,

0:30:010:30:05

the top agent sales evaluation came out at 220 grand,

0:30:050:30:09

a potential 78 grand profit.

0:30:090:30:12

But as we know, the chaps aren't in it for the short-term game.

0:30:120:30:15

It's more about maximising their assets in the long-term.

0:30:150:30:19

So if it was a holiday let, it could achieve around £800 a week.

0:30:190:30:22

In the high season, this would achieve £850 per week.

0:30:220:30:28

And in low season, I would suggest that it would be

0:30:280:30:32

something in the order of £600-£650 per week.

0:30:320:30:36

For simplicity, let's take the average of £725 per calendar month,

0:30:360:30:41

which equates to an annual yield of nearly 7%.

0:30:410:30:45

We've had some forecasts done already.

0:30:450:30:47

They were projecting about £20,000 a year based on 30 weeks occupancy.

0:30:470:30:51

So, if we have, you know, anything over 40 weeks, it's a bonus.

0:30:510:30:56

Has anything in this project made them wary of

0:30:560:30:59

returning to the auction?

0:30:590:31:00

-Nothing to be afraid of.

-Definitely not.

0:31:000:31:02

We've bought most probably half our portfolio now, at auction, so...

0:31:020:31:06

You know, I'd recommend it to anyone as long as they do their homework.

0:31:060:31:10

We're in Derbyshire, in the village of Darley Dale,

0:31:130:31:16

a popular spot on the edge of the Peak District, with some

0:31:160:31:20

very attractive period properties built using stone from the region.

0:31:200:31:25

This area is not just a lovely place to live,

0:31:250:31:28

but it's popular with holiday-makers,

0:31:280:31:30

so I'm hoping to find something interesting.

0:31:300:31:33

Now, the property I'm here to see is this. It's a three-bed cottage,

0:31:330:31:37

over three floors with a guide price of £78,000 plus.

0:31:370:31:42

It's raining, so I'm going inside.

0:31:420:31:44

# And a little rain never hurt no-one... #

0:31:440:31:49

All right, so we're in, and straight into the front room.

0:31:510:31:55

Good size, actually. Wasn't expecting it to be this big at all.

0:31:550:31:59

Fireplace here, gas fire, nice high ceiling.

0:31:590:32:03

Central heating as well.

0:32:030:32:05

It does...

0:32:050:32:06

OK, I'm taking a guess, that WAS the colour of the wallpaper.

0:32:060:32:10

So, yes, it hasn't been touched in some time.

0:32:100:32:13

Through across a small hallway,

0:32:130:32:15

there are the stairs going up to the bedrooms.

0:32:150:32:17

I'll get up there later. Into the second reception room,

0:32:170:32:20

and you've got some... you could call it vintage.

0:32:200:32:25

Some people might call it retro.

0:32:250:32:27

Whatever it is, get rid of it.

0:32:270:32:29

This is '80s. We don't want '80s now, we want modern.

0:32:290:32:32

Get rid of this, more space in here, good size room again.

0:32:320:32:36

I recognise that stadium - West Ham's old ground, called Upton Park.

0:32:360:32:40

Scored there many times, I've got to say, thank you very much.

0:32:400:32:43

And then you stroll into the kitchen.

0:32:430:32:46

Galley kitchen, good size again.

0:32:460:32:48

And there is a lean-to just out here as well.

0:32:480:32:52

But, like everything else I've seen so far,

0:32:520:32:54

this place needs a bit of TLC.

0:32:540:32:57

Needs a bit of effort and a bit of love given to it.

0:32:570:33:00

Modernise it - that's all it needs so far.

0:33:000:33:03

Upstairs, there are more rooms in need of TLC,

0:33:110:33:15

two bedrooms and a bathroom, to be precise.

0:33:150:33:18

And wow, an avocado suite.

0:33:180:33:20

Now I've heard that these are sought-after again.

0:33:200:33:23

Just shows you, hang onto something long enough, and...

0:33:230:33:27

No, take it out.

0:33:270:33:29

And there's a lot of wood panelling on show, and I would definitely

0:33:290:33:32

get rid of it and take this house up a level.

0:33:320:33:35

Speaking of upper-level...

0:33:350:33:37

So this is your third bedroom in the loft space. Now, it's

0:33:380:33:43

quite unusual you've got this much headroom in a loft space bedroom.

0:33:430:33:48

But it's good, it's a double size.

0:33:480:33:49

You'd get a double bed in here, no problem at all.

0:33:490:33:51

You've got some wardrobes here...

0:33:510:33:54

Which aren't too bad, bit of cupboard space.

0:33:540:33:56

You could also use this as an office if you were to work from home.

0:33:560:34:01

Have this as your office space, get rid of the wardrobes,

0:34:010:34:04

you won't need those. Make it just that little bit bigger.

0:34:040:34:06

I'm happy with the size of this room. And, if you are...

0:34:060:34:10

..6' 2" plus, on your tip-toes, you can enjoy the view.

0:34:120:34:17

# Peekaboo! Peekaboo! #

0:34:170:34:22

You might only get a peek at the Peak District from here,

0:34:230:34:27

but it's better than nothing.

0:34:270:34:29

And although we're at the top of the house,

0:34:290:34:31

we haven't peaked yet at this property.

0:34:310:34:34

So let's have a look out the back, see what we've got.

0:34:340:34:36

That's Dublin!

0:34:380:34:40

And he's scored again!

0:34:400:34:42

Anyway, the back garden is long and thin. It's a decent size.

0:34:420:34:45

But it's the back of the house I wanted to look at,

0:34:450:34:47

and I know what you're thinking. You're thinking the same as me.

0:34:470:34:50

DOG BARKS What about...?

0:34:500:34:52

And the dog is thinking the same thing as well.

0:34:520:34:54

A bit of an extension, not that simple.

0:34:540:34:56

This is a conservation area. This is the Derbyshire Dales -

0:34:560:35:00

you can't just stick up a conservatory wherever you want.

0:35:000:35:03

# Change is hard, I should know... #

0:35:030:35:09

A chat with your local planning officer is a good way to find out

0:35:110:35:15

what you can and can't do in a conservation area.

0:35:150:35:18

There are normally restrictions on anything to do with the exterior,

0:35:180:35:22

such as types of materials used in cladding,

0:35:220:35:25

external walls, chimneys, and windows.

0:35:250:35:28

This ensures that all buildings in a conservation area remain in keeping

0:35:280:35:32

with the area's special architectural quality.

0:35:320:35:36

The building isn't listed, though, so work can be done internally

0:35:360:35:40

to this house to get it fully modernised.

0:35:400:35:42

We've asked along an agent from the auction house that sold it

0:35:420:35:45

to see what he thinks of this place.

0:35:450:35:48

Having seen the property myself,

0:35:480:35:50

internally, it needs a good scheme of improvements, really,

0:35:500:35:53

ranging from a new kitchen and bathroom to re-plastering,

0:35:530:35:56

perhaps a new central heating system,

0:35:560:35:59

some windows will need replacing.

0:35:590:36:00

So overall, a comprehensive scheme of improvements that is needed,

0:36:000:36:05

and will surely bring it up to a nice, modern day standard.

0:36:050:36:07

And once fully modernised,

0:36:090:36:10

what could this house guided at 78 grand plus be worth?

0:36:100:36:13

On the open market, it's likely to achieve in the region of

0:36:140:36:17

£165,000-£170,000.

0:36:170:36:19

So this cottage needs a bit of money spending on it,

0:36:240:36:27

and it's in a conservation area, so you are restricted somewhat

0:36:270:36:31

on what you can do to the outside of this place.

0:36:310:36:34

But you're in the Peak District, it's beautiful here.

0:36:340:36:37

This should appeal to a lot of people.

0:36:370:36:40

So, why don't we find out who peaked at the right time

0:36:400:36:44

when it went under the hammer?

0:36:440:36:46

Highly desirable location.

0:36:460:36:47

I know lots of you have been to see this property.

0:36:470:36:49

So, guide price here is 78,000.

0:36:510:36:53

Who will start me off on the guide at 78?

0:36:530:36:56

75?

0:36:560:36:57

We'll go further away than this.

0:36:570:36:59

72? We've got 72,000 to put this into the bidding.

0:36:590:37:02

She has, thank you, at £72,000 we're away.

0:37:020:37:04

72, I have, 73 now?

0:37:040:37:07

72,000, 73?

0:37:070:37:09

There was plenty of interest in this lot,

0:37:090:37:12

but eventually, it boiled down to two bidders at the back of the room.

0:37:120:37:16

They soon took the bids up to £102,000.

0:37:160:37:20

102? It's back at 102 and a half.

0:37:200:37:23

And a half again. 103. And a half?

0:37:230:37:26

104. And a half?

0:37:260:37:29

105?

0:37:290:37:30

Fair warning, the hammer is up at £104,500.

0:37:300:37:33

It goes to the gentleman right in front of me seated.

0:37:330:37:36

Sold. Well bought, sir, at 104 and a half.

0:37:360:37:40

Thank you.

0:37:400:37:41

And, after a tensely-fought lot,

0:37:410:37:43

the purchaser who paid £104,500 for this was Daniel, who was seated.

0:37:430:37:49

Stood behind him was property broker Abdul. Abdul has been on the show

0:37:490:37:52

before when he renovated a house in Swadlincote.

0:37:520:37:56

In his role as a property broker, Abdul searches for

0:37:580:38:01

suitable properties to purchase and renovate for his investors.

0:38:010:38:05

In this case, he's working for Daniel.

0:38:050:38:08

I met him back at the house to find out more.

0:38:080:38:10

-Abdul.

-Nice meeting you again.

-You've been on the show before,

0:38:100:38:13

-and you're still at it.

-I source the properties for the investors,

0:38:130:38:15

so this is for another investor.

0:38:150:38:17

Is this what they were looking for?

0:38:170:38:19

Yeah, they're looking for flip projects.

0:38:190:38:21

So buy something run down like this,

0:38:210:38:23

you know, spend a bit of money, and sell it on.

0:38:230:38:26

OK, so have your clients seen this?

0:38:260:38:29

Yes. I always advise my clients to come and view the property...

0:38:290:38:32

-Clever.

-..prior to auction.

-Good work, good work, yes.

0:38:320:38:34

-I'll take a handshake on that one, good work.

-Thank you.

0:38:340:38:36

-Good work. Good work, don't let your clients down.

-No. Never.

0:38:360:38:39

Now when they seen it, were they happy? Did they say, "Well done"?

0:38:390:38:41

Yeah, there's bags of potential on this property.

0:38:410:38:45

We've had a value of about £185,000.

0:38:450:38:49

-OK.

-Similar properties have sold for about £190,000.

0:38:490:38:53

So if we achieve 185, then the investor is going to be very happy.

0:38:530:38:56

So you've done your research in the area, you know what

0:38:560:38:58

-properties are going for?

-Yeah, that's what we expertise in.

0:38:580:39:01

So we don't just source it,

0:39:010:39:02

we do all the evaluation reports etc for the investor.

0:39:020:39:05

So, it saves them a lot of the legwork and the tension

0:39:050:39:08

and the headache.

0:39:080:39:09

There are plenty of people who want to invest their savings in property,

0:39:090:39:13

but don't have the time or expertise to do so.

0:39:130:39:16

So they go through brokers like Abdul or other companies

0:39:160:39:19

offering a similar service.

0:39:190:39:21

As always, it's important to make sure the companies are reputable.

0:39:210:39:25

And also remember that there is always a risk that you could

0:39:250:39:29

lose out on any project. The one thing that can minimise that risk is

0:39:290:39:33

making sure that for every project, you do something I'm always

0:39:330:39:37

banging on about - research, research, and more research.

0:39:370:39:42

So, in the Peak District here, very pretty place.

0:39:420:39:44

You get a lot of holiday-makers here as well.

0:39:440:39:47

Was that in the thinking with the client?

0:39:470:39:50

That's one thing that impressed the investor,

0:39:500:39:53

because there's lots of tourism, and we've studied the market quite well,

0:39:530:39:58

and the properties are selling very fast.

0:39:580:40:00

So that's what appealed to the investor most.

0:40:000:40:02

Well, this is in a conservation area first and foremost,

0:40:020:40:05

so you're kind of restricted. Did they know that? Do they mind?

0:40:050:40:08

That's right, yeah, no, that's what they used me for.

0:40:080:40:10

And, of course, it's a restricted area.

0:40:100:40:13

-We can't change the outside.

-Uh-huh.

-We can't do an extension.

0:40:130:40:16

But interiorly, we've been given advice we can change it,

0:40:160:40:19

-bring it to a modern standard.

-It's just all old-fashioned, isn't it?

0:40:190:40:22

That's right, strip it all bare. You know, bring it back to freshness.

0:40:220:40:26

-That's the plan.

-What's your budget for this project?

0:40:260:40:29

Maximum budget, £20,000.

0:40:290:40:31

-OK.

-But there's always unforeseen things popping up.

0:40:310:40:35

-Of course.

-But we're going to tend to stick to the budget, £20,000.

0:40:350:40:38

OK, 20 grand, and what's it going to be spent on?

0:40:380:40:41

I know you want to refurb it, and just change it all.

0:40:410:40:43

Yes, so rewiring the place. You know, decorating the whole place.

0:40:430:40:48

-Probably going to put a coal burner there.

-OK.

0:40:480:40:50

Changing the doors, etc.

0:40:500:40:52

So everything's just going to come back to the bare brick.

0:40:520:40:54

-Bare brick?

-Yeah, bare brick, and style all over again.

0:40:540:40:58

Are you getting involved in this one?

0:40:580:40:59

Are you getting your hands dirty on this one?

0:40:590:41:01

No, I might take the tie off, though.

0:41:010:41:03

-Is that the lot?

-Yeah, that's the lot!

0:41:030:41:05

No, I project manage the repairs for the investor.

0:41:050:41:07

So 20 grand budget - how long is it going to take you to do?

0:41:070:41:10

We're looking at about three months. Three months timescale.

0:41:100:41:12

-Start to finish?

-Yeah, start to finish.

0:41:120:41:14

OK, and you're happy with this project moving forward?

0:41:140:41:16

Very, very happy, yeah. Very happy.

0:41:160:41:18

-Can't wait to start.

-I can't wait to see it.

0:41:180:41:20

I really can't. I wish you all the best.

0:41:200:41:21

-Thank you, sir.

-Good luck, Abdul.

-Thank you very much.

0:41:210:41:24

Well, it's good to see Abdul again, and as per usual,

0:41:250:41:28

he's as confident as ever.

0:41:280:41:30

He's talking the talk, but can he walk the walk?

0:41:300:41:33

He's happy with this project,

0:41:330:41:34

but will his clients be happy with the end product?

0:41:340:41:37

You can find out how he gets on later in the programme.

0:41:370:41:40

Well, earlier on we saw how one property turned out,

0:41:430:41:46

but what about the other two?

0:41:460:41:47

Yes, will they look any different and will all that time and money

0:41:470:41:50

have been well spent? Let's find out.

0:41:500:41:52

Back to Folkestone in Kent now,

0:41:550:41:57

where Lucy looked around a mixed use lot.

0:41:570:41:59

A shop on the ground floor, and a two-storey flat above,

0:41:590:42:03

all guided at between £80,000 and £82,000.

0:42:030:42:06

The main problem with the property got up Lucy's nose straightaway.

0:42:060:42:11

Damp - you can just smell it the minute you walk in.

0:42:110:42:14

It hits you in the face.

0:42:140:42:16

The property was bought for £98,000 by local Folkestone cabbie, John.

0:42:160:42:22

This was his first property purchase to save him from

0:42:220:42:24

paying rent, and to get on the property ladder.

0:42:240:42:27

But the premises weren't mortgageable,

0:42:270:42:29

and John had taken out a bridging loan to finance the purchase.

0:42:290:42:33

And is that worrying you at all?

0:42:340:42:36

Not hugely.

0:42:370:42:39

But, as long as I can get something sorted fairly quickly, yeah.

0:42:390:42:43

Time is of the essence with bridging loans,

0:42:430:42:45

as they are one of the most expensive ways to borrow money,

0:42:450:42:49

and John had ploughed all his money into the property,

0:42:490:42:52

so financing the refurbishment and the cost of the loan concerned Lucy.

0:42:520:42:57

There was expensive roof work to be done,

0:42:570:42:59

and the windows weren't in good nick.

0:42:590:43:02

About a grand apiece on those sash windows.

0:43:020:43:05

So I take it you're probably not going to be changing the windows?

0:43:050:43:08

No, no, not in the short-term, no.

0:43:080:43:10

How long do you think it's going to take you?

0:43:100:43:12

It's probably going to take a year to sort the place out.

0:43:120:43:16

I work on weekends and in the evenings,

0:43:160:43:18

so I just have to try and do a bit during the day.

0:43:180:43:22

With lots of damp and the financial and time pressures,

0:43:220:43:25

John certainly had a challenge on his hands.

0:43:250:43:27

Well, it's nearly 16 months on,

0:43:290:43:31

and we've returned to see how he's getting on.

0:43:310:43:33

But don't get your hopes up before we arrived,

0:43:330:43:36

he warned us it was at the, "worse before it gets better," stage.

0:43:360:43:41

Yep, I'd say that looks worse.

0:43:420:43:45

John's taken the back to brick approach in spades,

0:43:470:43:51

and in the process, revealed a fireplace in the living room

0:43:510:43:53

just by the shop window.

0:43:530:43:55

Let's take a look at the top floor, where John's currently living.

0:44:010:44:04

Unfortunately, the boiler blew up just after John moved in,

0:44:050:44:09

so there's no heating or hot water,

0:44:090:44:11

apart from the electric shower, now behind this screen.

0:44:110:44:14

Up here, I've took all the walls out.

0:44:170:44:21

There was a bedroom there, main bedroom,

0:44:210:44:23

small box room there, and bathroom at the back.

0:44:230:44:26

What I would like to do is put a bathroom in the middle,

0:44:270:44:32

and have the back of the building as a small second bedroom.

0:44:320:44:37

And before he can tackle reroofing,

0:44:370:44:39

there's a problem up here with rotting joists.

0:44:390:44:42

Yeah, I'm going to have to replace all the joists there

0:44:420:44:46

before anyone can do anything, really.

0:44:460:44:48

And just probably get somebody in to actually put the actual roof on.

0:44:480:44:54

The joist ends have rotted - they were resting on this wooden

0:44:540:44:57

wall plate, which has also rotted in places.

0:44:570:45:00

John is hoping to make a lot of the internal changes himself,

0:45:020:45:06

but he's wise to be calling in specialist roofers

0:45:060:45:08

to fix and secure the roof's structure.

0:45:080:45:10

He's repointing the old walls,

0:45:120:45:14

because the mortar has turned to dust.

0:45:140:45:17

The rotting joists and the sandy mortar story

0:45:170:45:19

continues on the first floor.

0:45:190:45:22

John's new layout sounds good, but do remember,

0:45:230:45:26

while it's OK to knock down non-supporting walls,

0:45:260:45:29

supporting walls need to be removed by the book.

0:45:290:45:32

Structural engineers' calculations are required by building control

0:45:330:45:37

to determine the type of steel support required to keep

0:45:370:45:41

the upper floors from falling through.

0:45:410:45:43

John's tackling the jobs he feels he can do himself.

0:45:440:45:48

Obviously, that involves dust getting on both floors,

0:45:480:45:53

and it's a bit awkward when I'm actually living here,

0:45:530:45:58

to try and work around myself.

0:45:580:46:00

It can be a fine balance between getting in the professionals

0:46:020:46:05

for some jobs, and economics,

0:46:050:46:07

which often dictate what you can afford to do.

0:46:070:46:10

But some building works - electric and gas work, for instance -

0:46:110:46:14

should never be carried out by unqualified people.

0:46:140:46:17

Whoever does the work, it will all need to be inspected and passed

0:46:180:46:22

by building regulations. Some of the windows

0:46:220:46:25

have had to be replaced by Perspex sheets, as they weren't secure

0:46:250:46:29

in the rotting frames, and fell out, including the bathroom.

0:46:290:46:33

Lucy was right to be worried about them.

0:46:330:46:35

On the face of it, it looks bad.

0:46:380:46:40

It is, but with stripping out, John's cured the damp problem.

0:46:400:46:44

There was a pipe running from the next-door neighbour's roof,

0:46:470:46:51

which was going into the corner of my guttering as well.

0:46:510:46:54

I had to move the pipe, because even with the gutter cleared,

0:46:540:46:57

it still wouldn't cope with it all,

0:46:570:46:58

and it was just running down that back wall there.

0:46:580:47:01

# Here I am, stuck in the middle with you... #

0:47:010:47:05

Above this lobby area on the first floor, John is planning on making

0:47:050:47:08

a roof terrace, and as for the leaky main roof...

0:47:080:47:11

Being up there, I've patched it up a little bit.

0:47:110:47:14

Seagulls were in there last year.

0:47:140:47:17

But the scaffolding to repair the neighbour's chimney pot

0:47:170:47:19

got in John's way. It stayed there until the gulls had gone away,

0:47:190:47:23

and come back again.

0:47:230:47:25

# Here I am, stuck in the middle with you... #

0:47:250:47:28

Since 1981, seagulls, like all UK wild birds,

0:47:290:47:33

have been protected under the Wildlife and Countryside Act.

0:47:330:47:36

It's illegal to take, damage or destroy the nest of any wild bird

0:47:370:47:41

whilst it's in use or being built.

0:47:410:47:44

John's certainly tenacious,

0:47:470:47:49

stripping the debris and even taking it to the tip in his car.

0:47:490:47:53

Despite a catalogue of issues, and with no definite budget,

0:47:530:47:56

he's managing to put a positive spin on living in this shell

0:47:560:47:59

and paying an expensive loan.

0:47:590:48:02

Maybe I'm saving on the rent with what I was paying before,

0:48:040:48:08

but it's still sort of a...

0:48:080:48:13

Quite a bit.

0:48:130:48:14

With the bridging loan,

0:48:160:48:17

don't forget you only pay off interest, and they are high rates,

0:48:170:48:21

and involve costly entry and exit fees.

0:48:210:48:23

Should be worth it in the end, hopefully.

0:48:250:48:28

Let's find out, as we invite a commercial property

0:48:300:48:33

and a residential property expert in

0:48:330:48:35

for their valuations on the shop and on the flat.

0:48:350:48:38

It's most likely to be some type of food or drink establishment,

0:48:390:48:44

I would say, rather than a retail shop.

0:48:440:48:46

Something like a micro-pub or wine bar.

0:48:460:48:49

Oh, a micro-pub downstairs, I like the sound of that,

0:48:490:48:53

so long as the flat is well soundproofed.

0:48:530:48:55

Anyway, the entrance to the flat is also going to be improved,

0:48:550:48:58

as John plans to section it off from the rear of the shop.

0:48:580:49:01

By doing the work on the shop himself,

0:49:060:49:08

John has kept the renovation costs to a bare minimum,

0:49:080:49:11

on top of his £98,000 purchase price.

0:49:110:49:14

But what's the end value of the property likely to be?

0:49:140:49:17

Certainly once it's all complete, I would expect the owner to be

0:49:170:49:21

able to receive a figure in the region of £5,000 per annum,

0:49:210:49:25

which equates to roughly £415 per calendar month.

0:49:250:49:29

Yes, quite a bit more than what I thought it might have been.

0:49:300:49:34

Yeah. Didn't think it would be worth that much.

0:49:340:49:37

We know that John's intention is to live above the shop

0:49:370:49:40

- that's why he bought it - but could that rental value,

0:49:400:49:43

added to the shop's potential income, sway him to rent out both?

0:49:430:49:47

As a one bed, I would expect it to achieve around £700 a month.

0:49:470:49:51

As a two bed, slightly more, around £750.

0:49:520:49:57

For the flat rental values alone, would John be tempted to move out?

0:49:570:50:01

For that sort of money, yeah. Yeah, that's, a bit high, isn't it?

0:50:030:50:07

Well, John seems chuffed with that.

0:50:080:50:10

Perhaps he's beginning to see the light at the end of the tunnel.

0:50:100:50:13

But this is a bit of a cautionary tale.

0:50:130:50:16

It's really, really not good practice to bid for a property

0:50:160:50:19

without having your finance and your budget in place.

0:50:190:50:22

In this case, with the bridging loan, time literally is money

0:50:220:50:26

and there's still a long way to go. Just how long, John?

0:50:260:50:30

Hopefully, sort of the middle of next year,

0:50:320:50:36

hopefully sort of pretty much be getting towards getting it done,

0:50:360:50:41

hopefully. Fingers crossed.

0:50:410:50:44

We've all got our fingers and toes crossed.

0:50:450:50:47

Time to head back to the Peak District, where I saw a property

0:50:520:50:55

that was quite jolly from the outside,

0:50:550:50:57

but the inside was a little bit dated and tired.

0:50:570:51:00

But I had a prescription for that.

0:51:010:51:04

This place needs a bit of TLC,

0:51:040:51:06

needs a bit of effort and a bit of love given to it.

0:51:060:51:09

# Can you feel a little love? #

0:51:090:51:14

What I did love about it is the space on offer.

0:51:150:51:18

Not only did it have two bedrooms and a bathroom on the first floor,

0:51:180:51:22

there was a lot more space on offer in the third bedroom in the loft.

0:51:220:51:25

And, if you are...

0:51:270:51:30

..6' 2" plus, on your tip-toes, you can enjoy the view.

0:51:310:51:36

# Can you see what I see? #

0:51:360:51:39

Someone who DID see what I saw was Abdul,

0:51:390:51:42

a property broker who recommended this to one of his investors.

0:51:420:51:46

Have your clients seen this?

0:51:470:51:49

Yes, I always advise my clients to come and view the properties...

0:51:490:51:52

-Clever, good work.

-..prior to auction.

0:51:520:51:54

Good work, good work, yes, I'll take a handshake on that one, good work.

0:51:540:51:57

-Don't let your clients down.

-No, never.

0:51:570:51:59

Now when they seen it, were they happy? Did they say, "Well done"?

0:51:590:52:02

Yeah, there's bags of potential on this property.

0:52:020:52:06

Well, Abdul hoped to unleash all the potential that this dated cottage

0:52:060:52:10

could offer, for a 20 grand budget and in three months.

0:52:100:52:14

But now, six months later, we're back.

0:52:150:52:17

Wow, I can see why things have taken a little longer.

0:52:250:52:29

Opening up this lounge wasn't part of the original plan,

0:52:290:52:32

but I'd say it's been worth it.

0:52:320:52:33

Abdul's team of builders had discovered a load-bearing joist that

0:52:340:52:38

was already in place, so at some stage, this was an open-plan area,

0:52:380:52:43

then separated by a stud wall, now it's open-plan again.

0:52:430:52:47

Just goes to show, it's all about personal preference.

0:52:470:52:50

I'm also glad to see some original features have been uncovered.

0:52:500:52:53

Although, I do like an ultra-modern kitchen, so I hope some of these

0:52:560:53:00

dated units have been given the heave-ho.

0:53:000:53:02

This fresh modern look continues upstairs.

0:53:150:53:17

They may not have laid out the red carpet,

0:53:190:53:21

but I'm hoping a replacement for the avocado bathroom

0:53:210:53:23

is awaiting its premiere.

0:53:230:53:25

Nice.

0:53:270:53:28

The bedrooms have also had the star treatment,

0:53:360:53:39

and been freshly decorated.

0:53:390:53:40

And up in the loft, the cupboards have gone,

0:53:450:53:48

to create more space.

0:53:480:53:51

I'd like to say, "Let's enjoy the view,"

0:53:510:53:53

but it's another wet day out there.

0:53:530:53:55

But Abdul has given us another surprise,

0:53:560:53:59

as there is now off-street parking.

0:53:590:54:02

When it comes to turning your garden into a driveway,

0:54:020:54:05

always check whether you need planning permission.

0:54:050:54:07

Different councils have different rules,

0:54:070:54:10

but you will need permission for a dropped kerb.

0:54:100:54:12

Abdul's enthusiasm for developing properties hasn't been dampened,

0:54:130:54:17

despite the weather.

0:54:170:54:19

When it comes to being a project manager,

0:54:190:54:21

it's not just about sourcing the property.

0:54:210:54:23

It's about sourcing the property and making sure the builders do a

0:54:230:54:26

good job, so the amount of times I've travelled to this property,

0:54:260:54:29

to make sure things are right, I've lost count. But that's my job.

0:54:290:54:34

With the front of the property,

0:54:340:54:35

we needed a stamp of approval from the investor,

0:54:350:54:37

because we thought this was a conservation area,

0:54:370:54:39

and we might not be able to take a brick wall out.

0:54:390:54:42

But we managed to find out it's not under the conservation area,

0:54:420:54:46

so we managed to take that off and created a driveway which adds value

0:54:460:54:50

to the property. I managed to convince the investor,

0:54:500:54:53

even though he's spending a little bit more.

0:54:530:54:55

But that adds a lot of value, so we're hoping he'll achieve

0:54:550:54:59

much more profit due to that having a car parking spot.

0:54:590:55:04

So, a bit of give and take with the investor. At the end of the day,

0:55:040:55:07

it's in Abdul's interest to maximise the investor's return,

0:55:070:55:11

but it can't be at the expense of the budget.

0:55:110:55:14

So, did he stick to it on this project?

0:55:140:55:16

Million-dollar question. On this one the budget was £20,000.

0:55:170:55:21

Well, we've gone lower than that. Including the landscaping

0:55:210:55:24

and everything, we're looking at about £19,000.

0:55:240:55:27

Well done on that, and also well done on the timescale.

0:55:270:55:31

The work has been done in three months,

0:55:310:55:34

but they didn't start right away.

0:55:340:55:36

That's why we're coming back six months on.

0:55:360:55:38

It has taken a bit of a while. That's because the investor,

0:55:390:55:42

he had different minds about this property,

0:55:420:55:44

to do with the budget, etc, so we've managed to convince him.

0:55:440:55:47

We've finished, we've completed the project and we're just waiting for

0:55:470:55:51

the end result now. We do understand there's a high demand in the area

0:55:510:55:54

for properties, so we're hoping for him to achieve a very big profit

0:55:540:55:57

on this one.

0:55:570:55:59

Well, it's time to find out if it's all gone to plan

0:55:590:56:01

for Abdul and his client. We asked along two local estate agents

0:56:010:56:05

to have a look at the property, and give us their thoughts.

0:56:050:56:09

First, let's hear from the agent who saw it last time.

0:56:090:56:11

Now, seeing it for the second time, I'm pleasantly surprised.

0:56:130:56:16

Done very well, nice neutral colours,

0:56:160:56:19

and good quality fitments. So, yeah, good job.

0:56:190:56:23

It's a traditional cottage,

0:56:230:56:26

obviously surrounded by lovely countryside.

0:56:260:56:29

But it's been done to a nice specification, modern.

0:56:290:56:33

So the big thing, really, for a potential buyer,

0:56:330:56:35

they haven't got to spend anything,

0:56:350:56:37

which at this level, is important to people.

0:56:370:56:39

It's a hit with the agents, but will this £123,500 investment

0:56:400:56:46

hit the profit margins Abdul and his client are looking for?

0:56:460:56:50

If we were to place it on the open market,

0:56:510:56:53

I would say in the region of £170,000 £180,000.

0:56:530:56:57

I would anticipate marketing this property in the region of £180,000.

0:56:570:57:03

I think that's a good price.

0:57:030:57:04

We were aiming to achieve a little bit more because there's a property

0:57:040:57:07

that's come on the market a few doors away.

0:57:070:57:10

It was marketed for £199,500. It didn't last that long in the market,

0:57:100:57:14

it's been sold. And this is a better property,

0:57:140:57:16

so we're aiming to achieve a little bit more.

0:57:160:57:18

But even with the figures that they've, you know, given you,

0:57:180:57:21

I think that's a very good profit.

0:57:210:57:23

£50,000-60,000 profit - that's amazing.

0:57:230:57:25

Taking the agent's top evaluation means a potential profit of £56,500,

0:57:280:57:32

minus taxes and fees, including Abdul's, of course.

0:57:320:57:37

But there's more to it for Abdul than making money.

0:57:370:57:41

The passion has grown for me,

0:57:410:57:43

and the family's involved into the business as well.

0:57:430:57:45

So at times when I'm going to view the properties,

0:57:450:57:47

I take my little ones with me, and I tell them,

0:57:470:57:49

"All right, you're going into a property - look for faults.

0:57:490:57:52

"Look for cracks, look for faults, and that's what we're here for".

0:57:520:57:54

So particularly, this property, I had my two sons come around

0:57:540:57:57

when I sourced the property, and that's what they were doing.

0:57:570:58:00

They were looking for cracks and faults.

0:58:000:58:02

And now, when they see the end result,

0:58:020:58:04

it creates a passion with them as well.

0:58:040:58:06

So they feel like, "You know what, Dad? You've done a great job,"

0:58:060:58:08

and it brings smiles to the family as well.

0:58:080:58:11

We hope you've enjoyed today's projects, and maybe even picked up

0:58:150:58:18

-a tip or two.

-Yes, we hope we have inspired you.

0:58:180:58:21

And we'll have lots more where that came from next time,

0:58:210:58:24

-here on Homes Under The Hammer.

-See you.

-Goodbye.

0:58:240:58:26

Two terraces near beautiful countryside in Prestatyn in north Wales and Darley Dale in the Peak District and a shop and flat in Folkestone in Kent are all sold under the hammer. All three properties need a lot of work and Martin, Dion and Lucy meet the new investors to hear their plans.