Episode 65 Homes Under the Hammer

Hello, and welcome to the programme.

If you've got money you're thinking about investing in property,

it can be a really exciting, profitable and fun thing to do.

Yes, there's nothing better than finding an old house and bringing it back

to its former glory.

Yes, the feeling of accomplishment is something really quite special.

But as we all know, there are lots of boxes to tick before you even

consider buying your home under the hammer.

Now, buying at auction can be a pretty simple way of purchasing a house

-these days.

-Yes, you can save time and, more importantly,

you can save money as well,

but you've got to have nailed your research first.

Yes, and did our buyers do that before they put their hands in the air?

Let's find out. Here's what they bought.

In Littleover, Derbyshire,

it's claimed this two-bed has been recently renovated.

I'm not convinced.

Strikes me as a coat of paint, between you and me.

This Barking, London, four-bed needs more than a lick of paint.

Something doesn't smell right.

So I've smelt damp, mould before.

There's something entirely different.

But I'm meeting bears and bear hugging this Cheshire shop and flat,

because I love it.

This place is fantastic.

All these properties have been sold at auction and we'll find out who

bought them and what they paid for them when they went under the hammer.

And that's how you're supposed to celebrate.

Off to Derbyshire, and the village of Littleover,

a desired location not far from Derby city centre with major road links,

which, of course, can have a downside.

Well, you are right by the side of this busy road, which isn't ideal,

but being on a major thoroughfare does have its advantages.

A bus stop. Transport links, yes, that's ideal.

Certainly in a lot of people's cases,

having a bus stop there would be a major advantage.

The property I'm here to see is a two-bed semidetached.

It's actually on this corner plot.

Um, as you can see, benefiting from a really nice-sized front garden there.

The catalogue says it's been recently improved, so that bodes well,

but you never know.

# You never know

# You never know

# You never know

# You will never know... #

What I do know is that this house has a guide price of 100 grand.

It's on a sizeable plot and has off-street parking.

So now YOU know.

So what kind of design are we in for?

Well, through the front door, little area here,

stairs up to the bedrooms and then a kitchen that way.

Looks to be fairly dated, for sure.

The boiler, well, that looks

certainly in need of probably throwing away

and replacing with something a bit more modern, energy efficient and safe.

But down here, really, the kitchen, and this room is what you've got.

It's a living room. Nice big window.

Very, very, very big pillars on that.

I don't know... Interesting construction.

But it's not a bad-sized space.

And it has to be said, this room looks freshly decorated.

It's certainly in better nick than the kitchen.

The flooring in the hall, well, that could benefit from a clean-up,

and the garden, though big, does not exactly have kerb appeal.

# No, it's not love

# But it's not bad. #

So upstairs and...

Pretty much what you might expect.

Bathroom and the loo, obviously.

Now, doesn't seem to be in that nice a condition.

This whole "recently refurbished" scenario strikes me as a coat of paint,

between you and me. But anyway.

Because you'd need to replace the kitchen and you'd need to replace the bathroom,

and the boiler and stuff, but anyway, whatever.

Um, two bedrooms, one at the back there, one at the front.

It's a good size.

At least you've got double glazing on the windows, which is nice,

keep some of the road noise down.

And...

You know, I mean, coming back to this refurbished thing,

I'd still want to just...

..rip all of it out and start again.

# Help me understand

# Well, take me as I am

# Anything for you

# Got the whole world in our hands

# Come on, take a chance and start anew. #

It's a funny one, this one.

It certainly doesn't feel like it's reaching its potential.

Perhaps outside could offer some options.

Well, out the back of the property, there is yet more land.

And of course when you see this much land around the house,

the first thing you think is, well,

what's the opportunity for potential expansion,

building some kind of an extension?

And then of course you get into the realms of planning permission.

You could do permitted development,

but if you want to do something more extensive,

and I think the property would certainly cope with that,

you're going to have to get planning permission.

Well, the good news is in the past, planning permission has been granted

for a two-storey extension here.

That planning permission has now lapsed,

but the fact that it's been basically passed in the past,

so highways approved it, the neighbours approved it,

and the designs were generally approved by the planners, that's good news.

It doesn't mean you would necessarily get it again,

but the odds are certainly stacked in your favour.

The 64,000 question is, would a two-storey extension be a wise move?

After all, no-one has used that permission.

It makes you wonder why not.

Would you be in danger of overdeveloping the site?

Any developer needs to know the ceiling price in the area

before they decide.

So time to get some info from an agent from the auction house who

sold this two-bed guided at 100,000.

Having had a look around the property,

I can see that some work has taken place.

It's had new windows,

it appears the electrical installation has been upgraded,

it has gas central heating, but it does still need some decoration,

new carpets maybe to freshen it up.

There's certainly scope to extend this property to the side,

to create further living space and maybe an additional bedroom.

Whether that will prove cost-effective or not, I'm not completely sure.

I certainly wouldn't do it if it was with a view to maximising my investment.

So, taking into consideration the cost of extending,

it doesn't sound like a project for an investor chasing profit,

but may be a great one for a family looking for a bigger house.

That might be a possibility.

Anyway, how do the numbers stack up?

Once renovated, as a two-bedroom property,

I would anticipate a sale being achieved somewhere in the region of

£128,000.

If the property were extended and fully renovated,

I would anticipate a sale being achieved on the sales market somewhere in

the region of £140,000 at best, to a high standard.

Well, with a bit of refurbishment of

the recently refurbishment-ness, if you know what I mean,

this place could actually be pretty nice,

and it does benefit from this corner plot with that potential to extend.

So, yeah, a good one to go for.

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

What am I saying for this one? 95,000 for it, 95.

92,000 to start me?

92,000 I've got as an opening bid.

At 92,000, 93 is bid here.

93. 94. 95. 96.

The lot has plenty of interest and the bids keep climbing.

We rejoin with the auctioneer looking for 119,000.

119. Gentleman's bid at 119.

120. 120, done?

At £120,000,

once, twice, third chance.

Sold here, madam, thank you, 120.

One of the bidders, Lee, looks a bit unsure, but the other is smiling,

and that's Jane.

They paid 120 grand for the corner site house,

so I met up with Jane to find out more.

Jane, lovely to meet you.

-Hello, Martin.

-Congratulations!

-Thank you!

-Tell me why you wanted to buy this place.

Well, we were looking at three properties on the auction.

The first two went, so this one we were successful on.

-Brilliant. You say "we" - who's we?

-My partner, business partner.

OK. Is this something you do, then?

It's something we're starting to do.

-OK.

-Yeah.

What's prompted the start of this business?

Not able to get into our line of work in England,

so we were basically,

in the interviews told that our skills were non-transferable.

So what were you doing? Where did you come from for a start?

-Zimbabwe.

-Oh, wow!

-Yes!

-How recently were you there?

Well, we've been here for five years now.

OK. What were your skills in?

Real estate.

-Oh, right!

-Yes!

And they weren't transferable?

-No.

-OK.

I might have a job, then - what's this?

Why weren't they considered transferable?

Well, I'm not sure about that, to be honest.

-You were an estate agent there, sort of thing?

-Yes.

We don't have any of those in this country.

That's maybe why then!

We do!

We have loads! OK.

So, you were a bit disheartened at first then, were you?

Very disheartened.

So we've actually sold our main residence

and now we're using that cash to make money.

While some high street estate agents might have advised Jane

that her skills weren't transferable here, it's hard to see why,

as she has quite a property record, developing in America and Australia,

while both she and Lee have developed properties in both Zimbabwe and Bulgaria.

Quite a pair of property globetrotters and this is their first in the UK.

So what are your plans for it?

We're wanting to extend the property so it'll be a side extension,

double side extension, which will move the kitchen across into this side.

-OK.

-And basically open the whole downstairs space up.

-Nice.

And then above, what, an extra bedroom?

Yeah, extra bedroom, bathroom.

Basically, it will become a four-bedroom, three-bathroom home,

if we can go up into the loft as well.

Oh, wow, so you're thinking about putting a dormer up there or something?

-Yes.

-Oh, my gosh. So have you checked the sort of ceiling price of

properties, this is the top price that properties in this area would get

for what you are suggesting?

Yes. The side road, basically, up to about 120 for a semi.

But the main road,

um, up to 200,000.

-Oh, wow.

-Maybe just over,

so we are trying to change the frontage of the property,

from the side road to the front.

And just by changing the entrance could add £80,000 on to the price!

Well, we hope!

Because that's going to come down to what the highways authority say,

-isn't it?

-That's right.

-Whether they want that on to the main road.

-Yeah.

Just so we're all clear,

Jane thinks moving the entrance to the front of the property

on to the larger road will increase the value by up to £80,000.

Novel thinking.

But I do hope their thinking is right.

They've calculated 30 grand to do a straight refurbishment,

but if they add the side extension dormer,

they've budgeted 65,000, which should take them up to 185 grand,

a sizeable investment.

-Are you nervous about that?

-I am nervous.

I am nervous. But at the same time,

I really want to try and reach the full potential of the property.

So by the time you see us next, we'll have decided on the best route.

-And hopefully done it?

-Yes, hopefully.

Yeah, yeah.

What's the sort of timescale?

About five months.

With planning permission, I would think.

If it's successful, you will do other projects?

-Yes, absolutely.

-One, two, whatever it is in the year?

As many as we can.

Try and transition over into that being our full-time income.

Well, it's lovely to meet you. Congratulations with it.

-We look forward to seeing how you get on.

-Thank you, Martin.

So, a new career in the UK as a property developer for Jane,

and a really interesting project for her to take on.

I guess one of the big issues is that whole planning permission

and the extension, and making sure she doesn't spend too much money

taking the price of the property above the ceiling price of some

of the properties in the area. How will she get on?

You can find out later in the show.

This is the town of Barking in the outer London Borough

of Barking and Dagenham. Full of shops, restaurants and plenty of amenities,

you'd be barking up the right tree if you enjoy bustling city life.

But if there is nothing to float your boat here,

Central London is just a 40-minute commute from Barking railway station.

# You're barking up the wrong tree

# That's what she said to me. #

Less than a ten-minute walk from Barking's train station and shops,

I'm on this really busy road to see a property which is right behind these

traffic lights.

It had a guide price of £500,000 plus at auction.

It's a four-bedroom house.

OK, initial impressions,

we might be on the outskirts of London but half a million pounds?

It's pretty shabby.

Really? Let's find out what's inside.

A bit shabby, no parking whatsoever,

will it justify the half a million pound guide price when we go in?

Inside, wow.

OK, so I've smelt damp, mould before, plenty of times,

there is something entirely different.

This is, I'd put my money on some sort of animal urine.

A fox maybe? Lots of foxes? It is a real stench.

You've got stairs going up.

OK, you've got a decent proportioned room here.

If I was to look for positives, what I would say, and I'm looking hard,

is that it's a double-fronted house.

So you have this feeling of light

coming in from windows on both sides.

But it's derelict.

It needs absolutely everything done, rewiring, heating, plumbing,

everything. And then you come to an extension area, and my goodness,

look at the joining - it's just a lot of rubble.

So, walking over that bit,

you come to this extension which has clearly been started but never

finished. It's big.

Maybe it was intended to be some sort of open-plan kitchen diner.

Well, everything's hanging down from the ceiling.

You would really need to check that the initial start-up of the extension

has been done properly,

otherwise you'd have to rip everything out and start again.

I'd take you outside to the garden but it's more of a rubbish tip for now.

Well, I said it didn't look half a million pounds' worth

and goodness knows how much you'd need to then put it right.

All I can say is, you're lucky you can't smell what I can.

# What does the fox say? #

The kitchen doors haven't been secured,

so I think there's probably been foxes coming in and doing their business

in the house. Yuck!

What's worse, urine, generally speaking,

can be very difficult to remove from the floorboards.

On the internet, there are tips for cleaning them,

but do be careful and take good advice before even mixing household

solutions. I'd prefer hiring a specialist professional cleaner.

Regardless, keep the room ventilated when cleaning, or in this case,

get the place ventilated pronto.

Ugh, let's not linger on this.

Upstairs, well, first thing I notice is there's no banister.

You really need to put one in,

obviously, for health and safety reasons.

OK, you've got a decent-sized bedroom up here and also there.

What I will say the place does have going for it,

there are no pokey rooms,

and you also have that double-fronted aspect

where you have windows and a sense of light coming in.

In each of the bedrooms you have a sink so it has a feel

that it was a bedsit.

Bathroom, well, just needs gutted like everything else, taken out.

They say never go under a ladder. I don't think I have much choice here.

If you get to the top,

you will see that a loft conversion has been started.

That comes as a bit of a surprise, but just like downstairs,

whoever started it hasn't finished it.

So, yeah,

the smell continues and I would say that upstairs isn't any better than

downstairs.

# What have we started?

# I'm so far in this time... #

Work has clearly been started,

but there's no guarantee it will be completed to building regs,

which could mean stripping it all back at a cost to the purchaser.

This place really needs a big cash injection on top of that guide price of

half a million pounds.

Now, just when you thought all was lost,

just when you were wondering how on earth could anyone make a profit from this,

I have a golden nugget of information I've been keeping up my sleeve.

Sorry. So, my confession is this -

this property comes with planning permission, yes,

it comes with planning permission to split the house into two

three-bedroom houses

so just now it's a four-bedroom house and it really lends

itself to doing this, splitting it down the middle,

and then on the first floor you would have two bedrooms on either side.

In the loft conversion you would have your third bedroom on either side.

So the figures could really stack up when you come to selling on two

properties or renting them out.

Told you it was a game changer.

So this could actually be two houses for the price of one.

Now, that is very interesting,

but what did a local estate agent

make of the house that went to auction

with a guide price of half a million pounds?

The property is what it is.

It certainly does require a lot of work.

I can see that they've tried to do some of the development,

started the development itself.

Um, questions are going to start coming about whether the people who have

started it have actually done the right job and whether they developed it

properly, but it's certainly a good buy.

Hopefully, it won't be "goodbye" to the building work already started,

so get in a surveyor to check it out.

But what about the plans for splitting this house in two?

Are they any good?

There aren't many properties that are double fronted within this area,

so what they've applied for with two three-bedroom houses is probably the

best use of the space that's here already.

The demand for three-bedrooms is probably going to be much better

-than it is for a four.

-I like the sound of that,

but what could a three-bed house fetch in this area?

If split into two three-bedroomed houses,

I would put this property on the market for £385-£400,000.

That could be 800 grand in total,

but how does a four-bed measure up?

I would put this property on the market for £430-£445,000.

Well, I hope whoever bought this had done their homework,

because there's just so much work to do,

but the real silver lining is that it comes with planning permission,

so there is huge potential and lots of options.

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

In Stratford, again...

Unfortunately, we missed the action on this particular lot

but the successful bid of

£530,000 came from property developer Dilawar.

Regular viewers of the show

might recognise Dilawar, on the left, and his property

manager Amrik, as they've been on the show twice before,

most recently at a property in Forest Gate, London.

And I caught up with them to hear their plans for this tatty terrace.

-Dilawar, hello, congratulations.

-Thank you.

Amrik, congratulations.

-Thank you.

-Why did you want this property?

Well, I like the property because there is scope in it and we always want

projects like this.

Do some work and, you know, enhance the value of the property.

You can't half do some work.

You got to do a lot of work.

How long have you been in property?

I've been in property nearly 50 years.

Wow. And you've been working together?

-For the last 20 years.

-20 years.

How does this relationship work?

I always buy the properties but he always manages them, the project.

-So you are the project manager?

-I am, yeah.

He's the big boss who buys the property and gives it to me,

then I do it up and then it goes to renting or whatever he wants

-to do with it.

-He's the boss?

No, I'm not the boss, we work as a team, like, you know?

-Like a family.

-Do you ever have any disagreements?

And if you do, how do you get over them?

-No, I don't think so, never.

-No, we don't

have any disagreements, there is nothing to disagree about.

Do you each have your own strengths?

Do you like doing something and you like doing something else?

Yeah, that's why we get on with it,

because he doesn't interfere with what I'm doing and I don't interfere

with...

He's the boss, I can't!

No matter who's the boss,

it's a partnership that's working out for them so far.

In fact, Dilawar has renovated so many properties, he's lost count,

so it's no wonder the planning permission for this property

caught his eye.

Well, we are going to do what the planning permission says.

We are going to make this property into two three-bedroomed dwellings.

Talk me through what you're going to do to make that happen.

As the plan says,

two bedrooms on each floor and two rooms in the loft and bathrooms,

WCs, and a big dining room and, you know, a reception room.

So they are very wisely going to go with the plans as outlined.

However, he's taken some advice from a structural surveyor

and is going to have to change some of the work that has been done.

They haven't done the work according to the building regulations,

so we have to put that right.

Is that the extension we are standing in now?

The extension, yeah.

So, structurally, what has to happen here?

Does this have to be demolished and start again?

We shouldn't think so, no, but at the same time, we have to rectify...

..certain things.

We have to make sure the building control...

..are happy with what we do.

Part of Dilawar and Amrik's

£120-£150,000 budget will be spent on hiring an architect to right

all the wrongs in the building work

so the two properties will be safe for the tenants,

as Dilawar plans to rent them out once complete.

How long are you thinking this will take? What's your timescale?

Once all the planning, I mean, the building control,

everything is in plan, once we,

like, start,

we should finish within six months.

And do you have your tradespeople lined up, who you have used before,

people that you trust to know what they are doing?

Yeah, that's right, yeah. Always,

we have teams of people who work alongside us and mostly

we supply them all the time, so hopefully once it's started,

then to the end, get it in better condition.

Congratulations again and good luck, can't wait to see what you do.

Thank you.

Owner Dilawar and project manager Amrik make a great team

and they've got loads of experience between them,

which is just as well in a property like this.

But how much repair will that extension need and how much will it cost

to make this into two houses?

Will the figures stack up?

You can find out later in the show.

Coming up, this shop in Congleton, Cheshire,

has possibly the oddest decoration I've ever seen.

Not sure why he's there, but if you bear with me, I'll find out.

And in Barking, London,

Dilawar and Amrik have found the previous works carried out at their

property to be grisly.

We had to start from the beginning, basically.

Earlier in the show, I was in the Derbyshire village of Littleover,

where I saw this two-bed semi on a substantial corner plot,

guided at 100,000.

I was optimistic,

as the catalogue stated that it was recently refurbished and

the living room and bedroom seemed to be in reasonable condition.

But the dated kitchen and tired bathroom had me thinking otherwise.

I'd still want to just rip a lot of it out and start again.

# I've got to rip it out

# Rip it out!

# I've got to tear it down... #

Not a great start.

However, it was something else in the catalogue that caught my eye.

In the past, planning permission has been granted for a two-storey

extension. The planning permission has now lapsed,

but that's good news.

It doesn't mean you would necessarily get it again,

but the odds are certainly stacked in your favour.

Buying the property for 120,000 on auction day

was Jane and partner Lee.

They had developed properties all over the world and worked as estate agents in their native Zimbabwe.

But the Derby semi was to be their first in the UK.

We're wanting to extend the property out there,

so it will be a side extension, double side extension.

Basically, it'll become a four-bedroom, three-bathroom home,

if we can go up into the loft as well.

Jane and Lee had a budget of 65 grand for the full extension

and renovation, but they had a novel idea when it came to shattering the street ceiling price.

We are trying to change the frontage of the property from the side road

-to the front.

-Just by changing the entrance,

it could add £80,000 onto the price.

We hope!

Now this I had to see.

And the turnaround FOR the turnaround was to be five months.

So, did they manage it?

We are back, just over a year and five months later.

# So turn around

# Floating so high up off the ground

# Floating so high

# Turn around

# Together nothing can stop us now

# So, baby, turn around

# Floating so high up off the ground

# Floating so high

# Turn around

# Together nothing can stop us now... #

So they didn't change the access to the property,

but they've certainly turned this house around

with a two-storey extension.

Jane and Lee felt moving the front door would impede on the space in

the new lounge area, and I think it's the right decision.

Though, at one point,

it was touch and go whether the extension could even go ahead.

As we were submitting our plans,

our architect came back and said that he felt that our boundary ran

too close to the Severn Trent sewerage,

so we had to call them and, basically, being able to go ahead with the

extension relied on Severn Trent finding out actually how far we

were, but the boundary was OK and we could then go ahead,

but it was a very scary moment indeed.

# Turn around

# Together nothing can stop us now... #

Fortunately for Jane and Lee,

the plans were approved and the extension made way for another two

good-sized bedrooms upstairs.

But it was the structure of the existing house that caused an issue.

As we peeled off the outside wall, we found wind posts, and basically,

it's just a steel post every, like,

one and a half metres around the entire perimeter of the house and

the internal walls, so any knocking through has had to be done

in accordance with where they actually are,

because we weren't allowed to move them.

We had to shift some of the entrances,

especially upstairs into the bedrooms,

and it made one of the double rooms slightly smaller, but actually,

my builder really came through and, working closely with the council,

managed to come up with some alternatives.

Wind posts are structural supports used to create stability,

so they had to work around.

But pipes and wind posts weren't the only contributing factor in the

overrun of the schedule.

I had a judo injury, so I had to go and have an operation.

I was actually out for about nearly seven months,

so that set us back a long time.

Jane's injury and other development projects the couple had in Bulgaria

meant the five-month timescale got the chop.

But did they go "hai-ya" than the £65,000 budget?

Basically, the extension has come in at £68,000,

and the refurb of the existing house has come in at 23.

That's a total of 91 grand, and when added to the purchase price

makes for a total investment of £211,000.

So, will two local estate agents think it was worth it?

My first impressions of this property are very good.

I like the fact that of the four bedrooms, three of them are double.

The kitchen is brilliant with the integral appliances.

A lot of thought has gone in there.

And the bathroom is of a very good quality as well.

Yeah, my first impressions of this property, significant extension,

good finish,

nice-size plot, done a good job.

But is there a profit for them on their £211,000 investment?

In my opinion, if I was looking to place this on the open market

I would recommend an asking price of £200,000.

On the open market I would expect this property to achieve somewhere

in the region of £210,000.

Well, I can understand why they would say that,

I think with being this part of Littleover.

But I've also looked at a lot of other variables.

There's very little stock on the market at the moment.

And also the comparables,

I found semidetached four-bedrooms

within a three-mile radius of 290.

So, we wait and see.

Unfortunately, the higher value from the agent could see Jane and Lee

make a loss of £1,000 before taxes and fees.

But let's hope Jane's research proves them wrong.

It's also worth noting the agents didn't think changing the frontage

would have added value, so Jane was right not to bother.

And she's already thinking of her next venture.

I'm looking at buying some more property in Bulgaria, renting that out.

It's getting very good returns at the moment.

And here maybe do a much smaller project.

Just a refurb of an existing property.

And maybe not take as big a risk.

We head now to Congleton in Cheshire,

a lovely little market town that sits 20 miles south of Manchester.

Right in the heart of this busy and pretty town centre is the lot I'm here to see, and what a location.

Today's lot is a commercial unit

that's over three floors and has a guide price of £160,000, plus the VAT.

I'm excited.

Let's have a look inside.

In case you were wondering about the VAT,

the tax is chargeable at 20%,

meaning it could add a lot to your final bill.

Before I go any further in there, the curb appeal is already there.

This is a perfect location for a commercial unit.

And over here,

look at this big fellow here...

I'm not sure why he's there, but if you bear with me, I'll find out.

Sorry about that. But this place is in great condition.

You've got a counter here, all ready to go.

There's not a lot you have to do to this unit to get it up and running

yet again. I've noticed here, which I thought were lights,

but they're cameras, so you've got security in already.

I can see at the end some dressing rooms.

So it may have been a clothes shop,

but really with a unit this size in this condition,

you can do with it what you please.

Great start. I'm going to check out upstairs.

When I say what you please,

that's within the limits of use classification,

under planning, of course.

So you would likely need to apply for a change of use if you wanted

to, say, sell financial services, hot food or even sell bears.

There's a few grizzlies around.

That's because Congleton is known as a bear town.

This harks back to the 1600s when the town was noted for a dancing bear.

# Look for the bare necessities

# The simple bare necessities... #

Right. Upstairs we've got...

We've got a small toilet just at the end there.

There's lots of space, just as I look through.

Obviously, the toilet doesn't have to stay there.

You can configure this place as you wish.

Through into what I would imagine would have been the kitchen area.

Look at that. That is an original period feature there,

solid as you like.

And it goes on and on.

I do like those original cupboards as well.

Across the landing,

more stairs there to go to the top of the building.

A little bit of storage to my right

and into the main living, lounge area.

Which is a really good size as well.

And look at this, you've got an original...

what looks like a '20s, maybe '30s fireplace.

You could restore that quite easily.

I love this place. I really do.

You've got the commercial unit downstairs,

which is more or less ready to go.

It's a source of income

and above that you've got the residential unit,

which could be a really smart flat.

Really like this place.

It's a winner to me.

I'm actually loving this place.

Upstairs there is a great big room to the front with lovely dark wood

flooring, and at the back there is another good-size room, which is...

..handy. There's obviously work to do on the upper levels.

That damp will obviously need looking at,

plus I can't see any central heating,

but what an amazing opportunity.

And do you know what?

There's more. OK.

And outside you've got some space.

Now when I say some space, it's quite big.

I wasn't expecting this, and you've got some storage.

What a bonus. Goes back a decent way as well,

so you could have yourself a bit of garden space, too,

whether that's residential storage or commercial, it's always a bonus.

Now, if you are thinking about making the two flats upstairs residential

and the commercial downstairs,

maybe you're thinking, "I could sell the two flats and keep the commercial,"

you would have to split up the leases, get separate leases,

which could cost you a few quid and take a bit of time.

But I've got to say, on the whole this place is fantastic.

And I love it.

Usually I'd be handing over to a local estate agent by now,

but they'll have to wait.

I just need a little bit more quality time with this one.

# What I want, you've got and it might be hard to handle

# But like the flame that burns the candle

# The candle feeds the flame

# Oh, yeah

# Well, well, you

# Ooh, ooh, ooh, ooh

# You make my dreams come true

# Hoo-ooh... #

OK, I hear you. I'll get on with it.

What does a local estate agent think of this property,

guided at £160,000 plus the VAT?

If I was personally looking to purchase this building then I would

look to squeeze the best yield out

of it by converting the first and second floor

into residential flats and keeping the ground floor

as a retail premises.

To sell or rent, then?

That's the question, it seems.

So what kind of numbers are we looking at from the ground floor retail unit?

The ground floor alone would be worth in the region of £120,000,

and would attract a lot of investor buyers,

as the yield would be in the region of £12,000 per annum.

And if the top two floors were turned into one-bed flats,

what kind of rental could we expect?

I feel that would achieve in the region of £395 per calendar month.

And how about on the sales market?

One bedroom flats on the resale market,

I would look to achieve somewhere in the region of £60,000.

As you may have gathered, I actually love this place.

The location is spot on and the potential for this place is endless.

Let's find out who else fell for it when we went under the hammer.

Let's start this one, shall we?

Guide is 160,000.

Who's here for this at 160?

Can I have £150,000?

Who's here for this at 150,000?

I have, thank you, 155.

Next up, if I may. Thank you very much.

160 now. It's again to you, again.

Thank you very much. 160 is bid.

165? 170, I have. Let's say 175.

I'll split it with you. 172.5, 175.

177 and a half.

I'm looking at... I'll make it 178.

The bid is up to 178.

The lady right at the very front is at 177 and a half.

For the very first time in at 177 and a half.

For the second time at 177 and a half.

Third and final chance cos you, madam, yeah, you're winning it.

It's you, all right? And you've got it.

Well done. 177 and a half.

Yeah!

And that's how you're supposed to celebrate an auction victory there!

# I'm so excited!

# And I just can't hide it... #

The new owner of the shop

was actually successful businesswoman Dawn.

She got friend Amanda to do the bidding at the auction for her cos

she gets too excited.

She's here with partner Lionel, and it's my turn to get excited.

I can't wait to find out their plans.

-Lionel, nice to meet you.

-Good to meet you.

Dawn, nice to meet you, too.

-You, too.

-And congratulations.

-Thank you.

-This place is unbelievable.

So what was it that attracted you to this place, then, Lionel?

Just... Well, right in the... Right in the middle of town centre.

It's obviously got potential, you know,

but we didn't really know how much potential it had until we looked inside.

Yeah. What was big for me,

I had a dream about getting the community

into that lovely green area at the back.

So I dreamed of what we could do back there.

And this property came on, and of course it's got access to that.

-Exactly.

-And it's a whole back yard.

You could have a secret cafe, a secret garden.

So for you, Dawn, was that the attraction for you?

-Mainly the back garden bit?

-That's it.

-Really?

-I'm afraid that's it, yeah.

What is your vision for this place?

The vision for this is really, like, the buzz in the centre of Beartown.

It's the community hub.

Organic cafe that's veggie, vegan.

To really get natural produce, natural living.

And then it'll be everything to do with mind, body and soul.

-You're making a cafe downstairs?

-Yes.

-What about up here?

-What's your plans for up here?

-Well, second floor...

-Yes.

-..is going to be bears.

And bear stands for, you know, cos we're in Beartown...

..being ethical and responsible.

So it's really an education centre on how to live ethical,

responsible lives.

-It's a hub of getting people, old, young, kids together...

-I love that.

It's going to be the most beautiful, happy house, isn't it?

-Happy centre.

-I love that.

-I'd like to see it more sort of crafty, you know,

bringing kids in to do things more...

To use their energy in a more constructive manner.

-Who's going to do what?

-Well, I'm Mrs Creative.

Mrs Visionary, Mrs Dreamer.

-I'm Mr Practical.

-And that's Mr Practical, yeah.

He's like, "Hey, Dawn, calm down. You can't knock that down.

"You can't bash that. Do you realise how much that costs?"

-I'm always watching the pennies, yeah.

-That makes sense.

-Yeah.

-Harmony.

-You got to have both.

-Yeah, yeah.

-Are you going to reconfigure anything?

No, I don't think it needs anything.

It's got usable space already.

Two areas on the top floor.

An area here, in this, which could be therapies or alternative therapies.

A mid-room that's kind of a through room which could be for the community,

for the bears and things.

The outside area.

And then of course the central potentially cafe area.

So it could essentially be five or six different businesses.

You know. Working together.

And that's the idea, so...

-Bashing.

-Bashing?

-Bashing?

Bashing. I have got one passion.

-Oh, yeah, yeah.

-I've got one passion and that...

-There's a bit of bashing.

-A bit of bashing around,

because downstairs has not got a lot of natural light.

-OK.

-So the back of the shop area,

there is a little roof that could put some windows in to let the

light in because we really want natural light.

And we'll be changing all the bulbs to natural light, daylight bulbs,

-you know?

-OK.

-So that it is healthy, a healthy environment.

Both Lionel and Dawn have a background in construction as well as working within the community.

They hope to get their project up and running in roughly three months and to a loose budget of 30 grand.

That budget will have to include basic things such as rewiring,

central heating and, of course, seeking planning permission.

But their enthusiasm is infectious and I cannot wait to see how all this turns out.

What's your goal? What do you want to achieve for this place,

for the town? Just give me that in a whole.

Unity in the community.

It's a buzz of old and young integrated together.

You know. Communicating.

And enjoying and...

Something under your roof for the community?

Well, yeah. I mean, I'd like it to be our sort of charity legacy, really.

-Yeah.

-And we'd leave it to be ongoing long after...

Yeah, for the community when we go.

-I wish you all the best.

-Oh, thank you.

-Good luck to you, Lionel.

-Thank you.

-Good luck to you, Dawn.

-Thank you very much.

-Good luck. Keep an eye on her.

-Yeah, definitely!

-Keep me under control!

What a fantastic couple.

And their ideas are spot on.

You can find out how they get on later in the programme.

There are lots of things to think about when it comes to property

and developing, and it's usually the unexpected things that turn out to be most expensive.

Yes. And the little things can soon add up, too.

It's important to be aware of so many expenses.

Yeah, there certainly is lots to look out for.

Let's see how the two main projects got on.

Time to head back to the town of Barking and to London prices,

because it was here I saw this dilapidated four-bed house with a guide price of half a million.

Now, I usually have a nose for a bargain,

but it was a whiff of something else I got here.

OK, so I've smelled damp, mould before plenty of times.

It's something entirely different.

I'd put my money on some sort of animal urine.

# That whiff on me

# Everybody gonna have a whiff on me

# Hey, hey, baby, have a whiff on me... #

It was more than a wee bit smelly,

but if you like space, then you were in luck.

It was double fronted, and work had started on a huge extension,

but I had my doubts whether it was up to building regs.

Same went for the half-finished loft conversion, and the four bedrooms needed some real TLC.

But before I wrote this derelict dwelling off, I smelled an opportunity.

This property comes with planning permission.

Yes, it comes with planning permission to split the house into two three-bedroom houses.

So the figures could really stack up when you come to selling on two

properties or renting them out. Told you it was a game changer.

Wanting to play that game were familiar faces Dilawar and Amrik.

They bought the property for £530,000 and had been developing properties together for 20 years.

And while Amrik was the property manager,

Dilawar wasn't quite so comfortable with his title.

He's the big boss who looks after the...

Buys the property and give it to me,

than I do it up and then it goes to renting or whatever he is going

-to do with it.

-No, I'm not the boss. We work as a team.

These pairs of old hands were going to do as the plan said and split

the house into two three-bedroom dwellings.

They had a budget of 120 to 150 grand to do so and they expected the build to take six months.

So here we are nine months later to see how they got on.

# I'm seeing double vision

# Everybody's singing like

# Hey!

-# Na, na, na, na

-Hey, hey

-# Na, na, na, na

-Hey!

# Na, na, na

# Hey, hey

# Na, na, na, na... #

No need to adjust your set because Amrik and Dilawar have gone ahead

and created two houses from the former four-bed property.

Each house has an identical mirror image layout.

On the first floor there are two bedrooms and a shower room.

And in the former dank and dusty loft space is now a master bedroom with an en-suite shower room.

I'll double down and say this house is unrecognisable.

The first thing they had to sort out was the previous works done on the building.

We had to start from the beginning,

basically demolish what they've done and then redo the whole thing.

If it was an empty shell we'd have been all right, better than we found it.

The house had a council enforcement notice because the extension structure was unsafe,

which meant demolishing what was there and resubmitting joints for the new work.

Getting the building safe for further renovation delayed the pair by three months,

but that troublesome extension wasn't done with them yet.

They haven't done any drainage, but they put, like, thick concrete on it.

So we had to dig up all the concrete,

as well as there is no electricity,

so we had to work with a generator all the time.

They had to dig up the road to bring that gas and water supply in because

the main pipe is across the road.

And on top of that,

there is a crossing light right in front of the house and like 50 yards down the road a bus stop.

They couldn't do anything because they had to

stop the bus stop temporarily,

and they had to turn the lights off temporarily,

put a new cross light on, and even like one thing after the other.

Bringing in services cost them another eight weeks,

and the years of penetrating damp in the property also meant replacing

the majority of the floor joists and roof joists.

With all the additional work,

it's hardly surprising the pair went over their 120 to £150,000 budget,

spending 160 grand in total.

The worst thing on that one was basically all this rubbish we had

to clear away, basically manually, which is...

Skip is like nearly 300 yards down the road.

And we must have filled about 40 skips from here.

So the labour cost more than anything else.

Well, I'm inclined to say, for what the pair faced,

a ten grand overspend is not bad at all.

And it takes their total investment here to £690,000.

So, what did two local estate agents make of the changes?

Let's start with the agent who saw it earlier.

It's a very nice, airy property.

The finishes have been done quite tastefully.

Keeping in mind the kind of use people would want to have

in the property. And what they had with this place,

what they could've done with this place, I think they got the best out of it.

I feel the property has been finished to a very good standard.

It's all laminated, the stairs are carpeted,

it's got a new kitchen, it's got three shower rooms,

so that's going to be, you know, quite a good selling point.

The agents agreed each house marketed as a three-bed could

achieve £380,000 in the sales market, so 760 grand in total,

which would give a potential pre-tax profit of 70 grand.

But as Dilawar is going to rent the two properties as four-beds using the

ground-floor room as a bedroom,

what could they achieve on the renting market?

I feel this property should achieve a rental figure

ranging from 1,600 to £1,750 per calendar month.

For the rental market as a four-bedroom property,

I would look to put this to the market for around £2,000 per calendar month.

Two grand per house would mean a potential annual yield of 6.5%.

2,300, 2,400, I think that's reasonable,

after spending that sort of money in the property.

Hopefully within a week, ten days, the property will rent out.

And then we'll go from there.

Their preferred figure of £2,400 per calendar month per house

would mean an annual income of nearly 58 grand,

and they're confident that demand in the area will mean they can achieve it.

Time to head back to the lovely market town of Congleton in Cheshire.

And that's Congle, not conga.

It was right in the town centre that I saw an interesting premises,

spread over three levels,

starting with a commercial unit on the ground floor.

# Do, do, do, come on and do the conga... #

This place is in great condition.

You've got a counter here, all ready to go.

There's not a lot you'd have to do to this unit to get it up and running yet again.

There was a lot of property for the £160,000 plus VAT guide price,

as on the first and second floor were residential units,

out back was an outbuilding and a large back garden as well.

In fact, this property was such a good opportunity,

I could barely contain my excitement.

# Wake me up before you go go

# Don't leave me hanging on like a yo-yo

# Wake me up before you go go

# Take me dancing tonight... #

And neither could Amanda on auction day,

who was bidding on behalf of friends Dawn and Lionel.

Dawn had a successful background in construction and they had paid

£177,500 for what was a dream project for Dawn.

I had a dream about getting the community into that lovely green

area at the back. I dreamed of what we could do back there.

And this property came on, and of course it's got access to that.

So, Dawn, what is your vision for this place?

Organic cafe that's veggie, vegan.

To get natural produce, natural living,

and then it'll be everything to do with mind, body and soul.

Dawn and Lionel would be putting mind, body,

soul and 30 grand plus three months into this project.

So would they have flower powered through it when we came back almost a year and a half later?

# Feeling fine

# Can handle whatever

# Gonna be all right

# Cos it's all coming together

# Rain or shine

# No matter the weather

# Gonna be all right

# Cos it's all coming together... #

So the cafe is still coming together,

but there have been some nice improvements such as extending

the ground floor and adding some fantastic skylights

to let all that natural light in.

But are things looking as bright on the first floor?

# A brand-new day

# Got a new direction

# Take a breath and take a step... #

Upstairs has been freshened up with new flooring and decor, and the

second floor has been stripped back to basics.

So it is really coming together.

But there has been a major change of plan.

Dawn's daughter April and her partner Chris have taken over the project.

So here they are, along with baby Jess to tell us more.

It's been a dream of ours to open a cafe together,

work together for a number of years now, four years, probably.

But we were living in Hebden Bridge in West Yorkshire,

so this just wasn't really an option when they bought it.

And then we just decided, do you know what? We miss family too much.

We're too far away. Let's come back.

-And this is when...

-And at that time...

-Yeah.

They had some people that were in here anyway,

or planning on coming in here and they dropped out, and it was just...

-Perfect opportunity.

-We just sort of jumped on that opportunity, yeah.

And then we just took it on, which is a few months ago now.

So we just, yeah, we just decided this is it.

This is our time.

Chris and April have been running the project for five months now

and plan to create offices and a holistic studio on the top floor,

a yoga studio and an event space on the first,

and a vegan cafe and eco shop on the ground floor.

Our plans in the future are to try and get a zero waste cafe,

so that means not using takeaway cups,

getting people to re-use and bring in things, containers,

have a really sustainable eco shop

so that all products can be reused and recycled.

Ideally, if we could be generating our own electricity, saving our own water...

-Yeah.

-And just, yeah, composting all of the food waste from the cafe,

that would be the dream.

I think mum Dawn would approve of that as well as the outside seating area being built in the garden.

The couple now think the project will be complete in three months

with the cafe opening two months later.

Work was initially delayed as Dawn and Lionel struggled

to find builders and had various tenancies fall through,

much to April and Chris' fortune.

April and Chris now have a local team of builders and are also roping

in family members to do some of the work to keep the cost down.

It started out that my mum and Lionel were going to spend £30,000 doing it up,

but now it's gone to nearly 80,000, so...

-Yeah.

-A big jump.

-The last time that we spoke to them it was at 80,000.

Yes, yes. And from now on we're kind of taking on the rest of the work,

so we're hoping to keep it a lot less.

Wow indeed.

That projected 80 grand spend

would take the project outlay to £257,500 so far.

And it's not done yet.

But in the meantime,

let's see what two local estate agents made of the beginnings of this project,

starting with the agent who saw it earlier.

It's great to be back at the property,

and to have seen the work that's been carried out so far.

It's looking really good,

and really looking forward to seeing the end result.

First impressions is it's got a good, large open space downstairs,

but it's not completely finished yet here on the first and second floor.

There may not be much here, but what do they think of the plans?

A vegan cafe is certainly unique and there's not too many of them around,

but I do genuinely think in a town like this, lots of boutique shops,

people will be interested and it could really work.

April and Chris will be running the cafe and the studio for the foreseeable future.

But has the work added value to the property?

Dawn and Lionel bought it for £177,500 and intended spending 80 grand on it.

That would take their total spend to £257,500,

not including any VAT.

When this building's complete I believe it should be able to get

£220,000 to £270,000 on the market at the moment.

When the work's completed on this property I think it will be placed

onto the market in the region of £275,000.

-That's pretty good.

-That is, that's good.

There's some profit to be made there.

There is. Yeah. Just a little bit.

You know, she's gone over budget, my mum. I think that's quite good, actually.

The higher value could give Dawn and Lionel a pre-tax and VAT profit

of 17.5 K once complete.

So they'll need to keep an eye on the budget, while April, Chris,

Jess and daughter River get the cafe up and running.

What's nice is all the big opening,

the reveal for Congleton to bring that unity in the community,

like my mum says. Bring everyone in here!

Well, that's it for today's show.

We hope you've learned some valuable lessons, and trust us,

those lessons could save you a fortune.

Yes, it's all about research, people, and boxing clever with your budget.

So be sure to tune in next time when we look at another three properties,

here on Homes Under The Hammer.

-Bye-bye.

-Bye-bye.