Episode 69 Homes Under the Hammer


Episode 69

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Transcript


LineFromTo

Hello, and welcome to the show.

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There really is something special about the auction process.

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The strategy, the pressure.

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Yeah, sizing up the bidders, knowing that when the hammer falls,

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-it's all over.

-It really is very special,

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that feeling of knowing that out of all the bidders,

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you're the one who held your nerve and got your house under the hammer.

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The various sizes and shapes of auction properties

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never fails to boggle the mind.

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Yes, you can have a million pound property

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or a garage that has a guide price of just a few thousand pounds.

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Yeah - and this variety

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means that there's usually something for everybody.

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So what did today's buyers go for?

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I'm missing something at this two-bed terrace in Crewe.

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I was expecting a bathroom here...

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..but there isn't one. So that is good news.

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The bathroom at this one-bed cottage in Blackwell, Worcestershire,

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is full of surprises.

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I'm surprised, actually, there's a bathroom up here in the first place.

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And if size matters, this studio apartment in Poplar, London,

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might not be for you.

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And it's exactly what I expected.

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It's small.

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All these properties have been sold at auction -

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and we'll find out who bought them

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and what they paid when they went under the hammer.

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In time, sold.

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I'm in Crewe, in Cheshire,

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a town that grew up around the railway station -

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and it's sure to grow even further,

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as the HS2 train line is planned to run through here by 2027.

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Unidentified passenger, wave if you watch the show.

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Thought so!

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HS2 will cut journeys to the capital by 45 minutes.

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# Feeling all right with the groove... #

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Well, it's probably a long way away,

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but the prospect of the HS2 train link

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going to a station literally a stone's throw from here

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has got to potentially push property prices, surely,

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in one direction -

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and once it's operational,

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and it's such an easy route down into London and beyond,

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come on, £58,000 for a two-bed mid-terrace, then,

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is going to seem like an absolute bargain.

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So, what could you possibly get for your money?

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Well, straight off the street into the front living room,

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very traditional layout for these houses,

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which were probably built for the workers in the railway.

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A few nice original features, which is good to see.

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Nice front living room area, there.

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Traditional layout,

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stairs up to your bedrooms in the middle of the property -

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and then through to your rear sitting room.

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The chimney breast has been blocked up.

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A few signs of damp over there, which I'm not too keen on...

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..and it's a bit worrying,

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not sure if this is a solid floor or suspended floor.

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If it's a suspended floor,

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then that kind of damp could well have transferred itself

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to the floor joists, which isn't good -

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but then, again, traditional layout, out the back here, a kitchen...

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..and some definite signs of quite bad damp on the ceiling, there.

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Now, I was expecting a bathroom here...

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..but there isn't one.

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So that's good news - not that there isn't a bathroom,

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but it's somewhere else.

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Well, at least I hope it's somewhere else.

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So, all in all, not a bad start for that guide price.

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Yes, for £58,000 in an area on the up, this might be a real gem...

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..but let's address the problems first,

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and find the source of that damp.

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So upstairs, fairly classic layout.

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Top of the stairs, left or right, a bedroom.

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Nice sized, actually -

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but here we start to see some of the damp issues that we saw downstairs.

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Looks like it's coming in, probably the flashing around the chimney.

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However, a bit of a design flaw.

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The bathroom, no, it wasn't downstairs.

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It is, in fact, up here, which is good.

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It's accessed only from that bedroom, though,

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which really isn't ideal.

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It's a nice size, but I wonder,

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given its location and that damp downstairs in the kitchen,

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if actually there is a leak up here which is causing that problem.

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Play around with the stairs,

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swap things around and do a few stud partition walls.

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It's an age-old problem, and there is an easy solution.

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Well, easy, but kind of expensive.

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And factoring in the fact that this house needs central heating

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and the damp course, it might be too rich for some people's blood.

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One bonus is that you do have a sizeable loft space,

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but you may want to have a look at the stairs to it,

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which are a tad rustic for my liking.

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Well, at the back of the property, not that much to speak of.

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However, a few indicators.

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Nature doing its job of pointing out some potential problems,

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as it often does.

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Look at all this green kind of algae stuff.

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It could just be that this is a very dark little corner of the house -

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however, there seems to be lots more

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actually against the house itself, there,

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so I wonder if that's yet another sign of the damp we've already seen.

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As is stuff on the walls here.

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Look, all this stuff is coming off.

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Again, at the back here, you get an impression, as you do inside,

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it's a house that just needs a bit of tender loving care.

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What it also needs is a bit of a sort out.

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Look at this.

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What could be a reasonably sized little rear area

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needs to be cleaned up - and more so, at the back there,

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there is actually a little alleyway.

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That could be opened up if you spoke to the neighbours, perhaps,

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to give a really useful rear access.

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And out here, I also note a few missing slates on the roof.

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So, while you're up checking the chimney cap, best to replace them.

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It's time for a local property expert to check out this property,

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guided at £58,000.

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How much does the agent think it needs spending on it?

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The property does need quite a bit of money spending on it.

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I would envisage it needs at least £10-15,000

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spending on the property.

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So, you're talking an outlay of around £73,000 in total.

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Does that seem a worthwhile investment for sales and rentals?

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Once complete, I'd like to see this property do £80-85,000.

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From a rental point of view,

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I can see this property doing in the region of £495 per calendar month.

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Well, yes, there's a bit to be done to sort this place out,

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but even so, I think short term,

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this is a really good rental investment,

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or a pleasant house to live in.

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Longer term, though,

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a really interesting speculative investment opportunity.

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

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50 to start me on this one.

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50 bid, thank you. £50,000.

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I'm going once again. 51, 52, 53.

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Bid's at 53. 54.

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Bidding continued to £58,000, where we rejoin.

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58. 59, 60. 61. 60,000.

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On the front row, then, at £60,000, against you standing.

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At £60,000, once, then.

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£60,000 twice.

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Third and final time, £60,000.

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You've bought it, well done.

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The bidders getting the property for 60,000

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were Ali and her husband, Rob,

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buying one of two properties at this auction.

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We saw them at their other purchase in Stoke, a semidetached bungalow,

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which they completed work on in February 2017.

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Maybe try one and see how it goes.

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Yeah, yeah, we don't like to make it easy on ourselves, really.

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It may have been hard work, but they did make a £22,000 profit

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before taxes and expenses.

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And so we met again, this time to see what they were going to do

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with their £60,000 purchase.

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Ali, Rob, great to see you again.

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-Cheers.

-And you, hi.

-Good.

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Now you, if I remember rightly,

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you had a bit of a bonanza day on the auction day, didn't you?

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Oh, we did, yes. We bought two properties on the day, yes.

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Right, and this was one of them?

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Yes, yes.

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

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It was a bit of a last-minute decision.

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I had previously seen it online, and, to be honest,

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we'd scrolled through so many that it got lost amongst

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all the properties -

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but then saw it again in the brochure on the auction night...

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..but I'm from Crewe originally -

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in fact, I was born just a couple of streets away.

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-No way!

-Yes.

-Fantastic.

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And my dad used to work in this street for over 40 years.

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-Did he? What was his job?

-He was a security printer,

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so it's now a different...

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-Right.

-..organisation altogether now, but this was where he worked.

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-Oh, my gosh! How amazing.

-So I know the area, yes.

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Very much so.

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Do I take it from that you didn't visit the property particularly

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-before you bought it?

-No.

-Not really, no, no, no.

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-We didn't.

-Not really? Yes or no?

-No, no, not at all, no.

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You won't get away from it, because you know you made a boo-boo.

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I know, yes.

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Because there could've been all sorts of problems with it.

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-And there is.

-And there is.

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I am going to say, "Good," because I mean good. Shouldn't do it.

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The question is, had you seen it before hand,

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would you still have bought it?

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I think so, but...

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Possibly, because we're gluttons for punishment that way...

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..and we quite like the bones of the property.

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We know this kind of property quite well.

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-And it's a bit of a challenge.

-Yes.

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Oh, good, right. Would you have paid as much as you paid?

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Before we started bidding on it, we'd put a cap of 63.

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-OK.

-And we paid 60.

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We figured, cut it low in case there is something bad inside it.

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So when you got it for 60, did your alarm bells start ringing?

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Not at the time, but...

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I did think, "Do they know something we don't?"

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Well, they might have visited it.

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-We're not fazed.

-No, no.

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-Anything is overcome-able, really.

-Yes, sure.

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Well, not only did they not view inside,

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the couple live in Edinburgh -

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quite a long commute to their new pair of properties,

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aptly described by two famous Scottish singers.

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# Well I would walk 500 miles

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# And I would walk 500 more... #

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What about the option of buying a property in Edinburgh?

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Wouldn't that have been a bit easier?

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Yeah, geographically, certainly, yes.

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We didn't really see anything at the right price, you see -

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and also, where we live, there is a lot of listed properties, as well.

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So we thought we could probably get more for our money.

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

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Damp is absolutely the first thing.

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Sort the damp out.

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We're getting damp specialists, and do that.

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We're going to get it rewired, and get the stairs reversed

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and create a hallway to make that a definite bedroom,

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rather than just a walk-through.

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-Have you had a quote for that?

-Not yet.

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Not yet - but we've got some people in mind,

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we've been recommended some people.

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I am a little wary, as you can probably tell,

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as it would cost at least several thousands of pounds

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to move the stairs.

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Plus, Ali and Rob still need to budget for the new kitchen,

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bathroom and those regular long drives from Edinburgh.

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They are unsure about renting or selling this one,

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and even though they plan to do a lot of the work themselves,

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they will still need deep pockets.

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So what is their budget?

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Possibly about 15,000, overall.

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-Including the stairs?

-Yes.

-Including the stairs, yes.

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I mean, we have got, you know, a little bit of contingency,

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which we would probably need to dip into -

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but we've got to start with some sort of figure in mind, yeah.

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Sure. What's the timescale?

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About six months.

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Yes. A realistic timescale.

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-Yeah.

-Congratulations.

-Thank you very much.

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-And good luck with it.

-Thank you.

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-Look forward to seeing the house.

-Thanks ever so much.

-OK, thank you.

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Well, quite a few challenges ahead

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for Rob and Ali to sort this place out -

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and some of them a bit of a surprise,

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because they hadn't seen the property before they bought it.

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Anyway, how will they get on, on their steep learning curve?

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You can find out later in the show.

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With its picturesque views, this could only be in Middle England.

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So it makes sense, considering we're slap bang in the middle of England.

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I'm between Worcester and Birmingham,

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a mile away from the M42 - and Barnt Green train station

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is less than a couple of miles away.

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I'm just getting in the spirit of things.

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I'm in the country.

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I'm just on the outskirts of the village of Blackwell,

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and about 40 minutes from the centre of Birmingham -

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and there's green everywhere.

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Everywhere I look.

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To my left, to my right.

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You know what? They've even got a green gate, as well.

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There seems to be a lot of birdlife around this woodland area,

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and the house comes with its fair share of greenery, too.

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1.8 acres worth, to be exact.

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That's enough of that.

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This is our house.

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Now, if you can believe it, it's only got one bedroom.

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But it's got a guide price of 125 grand,

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which makes me very intrigued.

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Let's have a look inside.

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This cottage might have the wow factor,

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but will it in a good way?

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Wow!

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Yeah, wow!

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Look at this.

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This is the original door with the original door knocker.

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Come on in. Too late.

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I'm in already -

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and you come straight into this very small, very cottagey feeling

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front first reception room.

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This will have been the old fire -

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but there's been a wood burner there.

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They've taken the burner, and they've left the wood.

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There's no glass in the windows at all.

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Wow. For me, as I come through the door,

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I'm already getting the feeling of,

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let's get rid of the whole of this building and start again -

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and I've only come into one room.

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There's a little bit of storage there.

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Through into the kitchen, through this very small, low door.

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That just gives you that cottage feeling again,

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and, you know, it's just...

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Look at the size of this place. It's absolutely tiny.

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You've got a sink in here, you've got a freestanding cooker.

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Everything needs to be done.

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I'm taking a guess this place hasn't been touched in years.

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It might have been decorated just the once.

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There's no space down here. That is it.

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That room and this kitchen, and that is it -

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and here are the stairs, minus...

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That.

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-CREW MEMBER:

-Step over it, come on. Right, action.

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Pushy, aren't you?

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All right, all right -

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and to think I joined Homes Under The Hammer for the glamour.

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Premier League winner, Golden Boot international.

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Oh, hello. Anyway, upstairs,

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we have got a lot of mould in this stairwell.

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Not good at all. It must've been closed up for some time.

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You've only got two rooms up here.

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This room is the family bathroom.

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I'm surprised, actually, there is a bathroom up here in the first place.

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This would've been a bedroom back in the day,

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but they've actually put a bathroom in here -

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and it's a good-sized bathroom. It's not bad at all...

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..but mildew, mould on the ceiling.

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Mould on the walls.

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It's a bit of a mess...

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..and it's still enticing me into taking this whole place down

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and starting again.

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HE SIGHS

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OK, through into the one bedroom, then -

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and it's not a bad size bedroom at all.

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It's a double bedroom.

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You've got a fireplace, which has been boarded up.

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There's mildew everywhere.

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It's not in great condition.

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You know what? When I walked into this place, I was totalling it,

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I was taking it down and starting again.

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Brand-new build, lovely new three-bed, four-bed house -

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but I'm having a bit of a U-turn.

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I think you could keep hold of some of this build and add to it.

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It's got a bit of character.

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I've seen loads of two-up two-downs on the show,

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with no options whatsoever.

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This one is completely different.

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At the back of the property, you've got this lean-to,

0:17:440:17:47

which is part of the footprint,

0:17:470:17:48

and is going to help if you wish to extend.

0:17:480:17:51

So much land to work with.

0:17:530:17:54

Get the right planning in place,

0:17:540:17:56

and you could turn this place into a lovely family home.

0:17:560:18:00

To be honest with you, who's going to complain?

0:18:000:18:02

Who's going to chirp up?

0:18:020:18:03

BIRDS SING

0:18:030:18:04

All right, you lot!

0:18:040:18:05

And there's a fair bit of land to play with here.

0:18:080:18:11

1,292 square yards, to be exact.

0:18:110:18:15

With some added features, like the outside toilet.

0:18:150:18:19

Could be handy when gardening.

0:18:190:18:20

OK, I can't stand the suspense any longer.

0:18:220:18:25

Time to hear from a local estate agent to see if he's spellbound,

0:18:250:18:29

or if he thinks it's a Hammer house of horror.

0:18:290:18:33

My gut feeling is that it would be a shame to knock it down,

0:18:330:18:36

because it has got a bit of character about it -

0:18:360:18:38

but, in all honesty, it needs to be a brilliant extension.

0:18:380:18:42

It desperately needs it.

0:18:420:18:43

So, like me, the agent can see potential here.

0:18:430:18:46

Which would be the most cost-effective?

0:18:460:18:48

Extend or demolish?

0:18:480:18:50

If you can get the planning,

0:18:500:18:52

and it was a good enough extension and it worked well enough,

0:18:520:18:55

then go for that, because that would probably be cheaper -

0:18:550:18:57

but in all honesty, you could knock it down, as well, to be fair.

0:18:570:19:01

This property has both of us in two minds.

0:19:010:19:04

What could it sell for if you extend it to a three-bed house?

0:19:040:19:08

Probably 250-300,000.

0:19:080:19:10

If it was any smaller than that,

0:19:100:19:11

then obviously it would come down in price.

0:19:110:19:13

To do it up and extend it, I think it's at least 150,000.

0:19:130:19:18

And on the sales market, if done up and not extended?

0:19:180:19:21

Again, very unusual.

0:19:210:19:23

On a plot this size, you're probably looking at a three- or four-bed.

0:19:230:19:26

So with it being a one-bed, I would say somewhere around 300-325,000,

0:19:260:19:32

if it was all done up and landscaped properly.

0:19:320:19:34

Now, if ever there was a blank canvas, this is it.

0:19:340:19:38

You could add to this building,

0:19:380:19:40

or you could tear it down and start a fresh project.

0:19:400:19:45

There's a fair bit of land to play with, but there's so many options.

0:19:450:19:49

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

0:19:490:19:51

It's an absolute belter of a property

0:19:520:19:56

to be sold under the hammer,

0:19:560:19:58

and it needs probably everything you can think of doing to it and more.

0:19:580:20:03

Some auction houses or vendors require the 10% deposit to be paid

0:20:030:20:08

by banker's draft, as was the case for this lot.

0:20:080:20:11

The draft means the sum has been prepaid to the bank

0:20:110:20:15

and is guaranteed to be paid to the vendor.

0:20:150:20:18

Can I have 150, sir?

0:20:180:20:19

Can have 125 then?

0:20:200:20:21

It's going to go way past.

0:20:210:20:23

Is that a yes? 125, 150, sir, thank you.

0:20:230:20:27

Do have a draft, sir? At 150, I'm bid, it's at 175 now.

0:20:270:20:31

With the guide price well past, bids continued at pace,

0:20:310:20:35

until we rejoin at 275 grand.

0:20:350:20:38

275, 277.

0:20:380:20:40

No, you're saying, "No," with a smile.

0:20:420:20:43

275, can you get your draft ready, please.

0:20:430:20:47

Thank you, madam, waving it.

0:20:470:20:48

We can get the thumbs up from Rachel, this is yours at £275,000.

0:20:480:20:54

Bankers draft is good.

0:20:540:20:56

The property is now yours.

0:20:560:20:58

The former woodsman's cottage was bought by Simon.

0:20:580:21:01

Well done, best of luck.

0:21:010:21:02

Birmingham-based Simon is a ski instructor.

0:21:020:21:05

He's also learning to fly and has forged a career in pharmaceuticals,

0:21:050:21:11

as well as developing property.

0:21:110:21:13

Well, I think I was lucky to catch up with this very busy bloke

0:21:130:21:17

to discuss his 275 grand project.

0:21:170:21:20

-Simon, nice to meet you.

-Morning, how are you?

0:21:200:21:22

Congratulations, pal.

0:21:220:21:24

I love this place. It's got a great feel about it.

0:21:240:21:26

-Yes.

-What was it that attracted you to this place?

0:21:260:21:28

-Literally that, the feel.

-Was it really?

0:21:280:21:30

Yeah, yeah, yeah. The noise. There is none.

0:21:300:21:32

That's it, isn't it? Because...

0:21:320:21:34

BIRDS SING

0:21:340:21:36

It is peaceful -

0:21:360:21:37

but Simon went 150 grand over the guide price to buy this.

0:21:370:21:42

There was a lot of interest in it because of the guide price,

0:21:420:21:44

and I think that's why they set it a little bit lower

0:21:440:21:48

than it should have been -

0:21:480:21:49

but I sort of had a figure of 250 in my head.

0:21:490:21:52

There's not a lot of it.

0:21:520:21:54

What attracted you to the property itself?

0:21:540:21:56

Because there wasn't a lot of it.

0:21:560:21:57

-Really?

-So it's small, it's quaint, and then you can add to it.

0:21:570:22:01

Tell us exactly what you're going to do, then.

0:22:010:22:04

A large extension, double extension at the back.

0:22:040:22:06

So it'll look like two cottages put together.

0:22:060:22:08

-Got you.

-Then, at the back of that, a balcony,

0:22:080:22:11

-just to capture the views, you know.

-Oh, nice.

0:22:110:22:14

Big living area and bifold doors going into a patio

0:22:140:22:17

out onto the woodland, really.

0:22:170:22:20

So how many bedrooms are you going to try and achieve in the end?

0:22:200:22:23

It'll finish with one master

0:22:230:22:25

and then two more bedrooms.

0:22:250:22:26

So, three bedrooms in total.

0:22:260:22:28

And what about downstairs, then?

0:22:280:22:29

Downstairs, I want to keep the cottage feel.

0:22:290:22:31

-Got you.

-And then as you go into the new build at the back,

0:22:310:22:34

it'll be all open, so you'll have two little rooms at the front,

0:22:340:22:38

olde worlde style, and then walking into modern at the back.

0:22:380:22:41

You're knocking down the outhouse?

0:22:410:22:43

Yes! I think...

0:22:430:22:45

They're a thing of the past, you know?

0:22:450:22:47

Nobody uses outhouses any more, do you?

0:22:470:22:49

Lean-to outhouse, whatever you want to call it.

0:22:490:22:51

So upstairs, three bedrooms, en suite in one,

0:22:510:22:53

family bathroom upstairs as well?

0:22:530:22:55

Yes.

0:22:550:22:56

Simon's had his architect draw up plans,

0:22:560:22:58

and he'll be dealing with the complications

0:22:580:23:01

of working in what is a green belt area,

0:23:010:23:03

hopefully in nine months' time.

0:23:030:23:06

And despite all this effort, Simon doesn't plan to live here.

0:23:060:23:10

He already rents out four flats, and this property is an investment, too.

0:23:100:23:13

What about your budget, then? Because there's a fair bit of work

0:23:130:23:16

to be done with extensions and big doors...

0:23:160:23:19

Budgeting about 120.

0:23:190:23:21

-OK.

-And then all this will just be landscaped.

0:23:210:23:25

So, you know, you will, anywhere, feel like you're in the woods.

0:23:250:23:28

Did you ever think to yourself, I'm going to buy this,

0:23:280:23:30

I'm going to live in it?

0:23:300:23:32

-No...

-There was a little bit of hesitation.

0:23:320:23:35

Only because when we bought it,

0:23:350:23:37

you do think, "Oh, actually, it's not that far away" -

0:23:370:23:39

but I'm a townie. At the moment.

0:23:390:23:41

I think it will be... It's up for sale.

0:23:410:23:44

And you, are you looking to take your profits

0:23:440:23:46

-and then continue to go back to the auction?

-Yes, yes.

0:23:460:23:49

I mean, I normally go for somewhere, something quite safe.

0:23:490:23:53

-OK.

-Flats.

0:23:530:23:54

-That's what I was looking for at this auction.

-But you didn't!

0:23:540:23:58

I saw this and went, "Oh, I do fancy that as a project."

0:23:580:24:01

-OK.

-It's probably the biggest project, personally, I've took on,

0:24:010:24:05

yes, so it's a biggie...

0:24:050:24:07

-Yeah.

-But not too fazing, if you know what I mean?

0:24:070:24:10

-Good.

-The thing is with these properties,

0:24:100:24:12

they don't come up very often.

0:24:120:24:13

-Yeah, true.

-That's the big thing about this one,

0:24:130:24:15

it's sort of a once-in-a-lifetime property.

0:24:150:24:17

-Yes, of course.

-Because, you know, you can go and get a terrace,

0:24:170:24:20

you can go and get a flat, but something like this,

0:24:200:24:22

they're once in a blue moon,

0:24:220:24:23

so, the idea is just to take the time and enjoy it.

0:24:230:24:26

-Well, exactly.

-And be happy with the outcome.

0:24:260:24:28

-That's the idea.

-Simon, good luck.

0:24:280:24:30

-Thank you.

-I wish you all the best, pal.

0:24:300:24:32

Thank you very much. Cheers.

0:24:320:24:33

So, Simon's a self-confessed townie, a city lad,

0:24:350:24:38

but he's happy to take on this project out in the country,

0:24:380:24:42

and he wants to make it double the size with sliding doors at the side

0:24:420:24:47

to the driveway, and he wants to make it ultra modern.

0:24:470:24:50

I'm just sad he's going to get rid of that outside toilet.

0:24:500:24:54

Do stay tuned and you can find out how he gets on.

0:24:540:24:56

Coming up, my key to maximising space in this Poplar studio.

0:24:580:25:02

You can't change the square footage,

0:25:020:25:05

but you can maximise your space and make it look good.

0:25:050:25:08

And there's some good news at this former woodsman's one-bed cottage

0:25:110:25:14

in Blackwell, Worcestershire.

0:25:140:25:16

All the hard work has been done.

0:25:160:25:18

Time to return to the railway town of Crewe in Cheshire,

0:25:240:25:28

and a two-bed mid-terrace guided at 58,000.

0:25:280:25:32

It had some unwanted features, damp and more damp,

0:25:320:25:36

plus a traditional layout of a front sitting room and rear room...

0:25:360:25:41

..but one terrace tradition had been tackled.

0:25:410:25:43

The bathroom, no, it wasn't downstairs.

0:25:430:25:45

It is, in fact, up here, which is good.

0:25:450:25:47

It's accessed only from that bedroom, though.

0:25:470:25:52

Which really isn't ideal.

0:25:520:25:53

I thought moving the staircase could offer an easy solution

0:25:530:25:57

to the bedroom layout. But...

0:25:570:25:59

Well, easy, but kind of expensive.

0:25:590:26:01

But I wonder, given its location and that damp downstairs in the ba...

0:26:010:26:06

..in the kitchen, rather, if actually,

0:26:060:26:08

there's a leak up here which is causing that problem.

0:26:080:26:10

Edinburgh-based Ali and Rob bought this for 60,000

0:26:100:26:13

as well as a bungalow at the same auction.

0:26:130:26:15

Talk about diving straight in to the deep end

0:26:150:26:18

for these novice developers -

0:26:180:26:20

but they committed one of the two cardinal Hammer sins,

0:26:200:26:23

you can guess which one it was,

0:26:230:26:24

when I tell you that at least they'd read the legal pack.

0:26:240:26:28

So I guess, the question is, had you seen it beforehand,

0:26:280:26:30

would you still have bought it?

0:26:300:26:32

I think so, but...

0:26:320:26:33

Possibly. Because we're gluttons for punishment that way.

0:26:330:26:37

And it's a bit of a challenge.

0:26:370:26:39

To say damp was an issue would be a fine example of under exaggeration,

0:26:390:26:44

but Ali and Rob thought they would need six months to sort this out.

0:26:440:26:48

But their first viewing was by torchlight,

0:26:480:26:50

as it was dark and there was no electricity

0:26:500:26:54

when they finally got the keys.

0:26:540:26:56

# How can I see the light

0:26:560:26:59

# When the darkness is so bright... #

0:27:040:27:07

We're back nearly 22 months later.

0:27:070:27:10

What a change.

0:27:120:27:13

It's as if the house just needed a little creative inspiration -

0:27:130:27:17

and some dosh.

0:27:170:27:18

# I want to be like you want me to... #

0:27:190:27:24

Ali and Rob did a list of our top re's - rewire, re-plaster

0:27:270:27:32

back from brick downstairs, re-plumb,

0:27:320:27:36

redecorate and renew floorings -

0:27:360:27:39

and I don't think they'll be re-gretting a single one of them.

0:27:390:27:42

Oh, and there was a new one,

0:27:430:27:45

re-levelling the rear reception floor,

0:27:450:27:47

which had a six inch slope on it.

0:27:470:27:49

# Do you feel like you feel alive? #

0:27:520:27:55

I do like the new retro radiators and the fireplace.

0:27:590:28:01

# My heart wasn't there but it is now... #

0:28:050:28:13

And all the front room heaters are much easier on the eye.

0:28:150:28:19

Ali and Rob also recapped and re-leaded the chimney,

0:28:220:28:26

but they weren't able to redirect the staircase.

0:28:260:28:29

More of that in a bit.

0:28:290:28:31

Can you work out why the bedroom on the right seems a bit narrower

0:28:310:28:35

than it used to be? It's to do with access to the bathroom.

0:28:350:28:39

# I feel so much better now

0:28:390:28:41

# I feel so much better now... #

0:28:470:28:51

The space for a new corridor came from the width of this bedroom.

0:28:540:28:58

Looking back from the bathroom behind,

0:28:580:29:00

it's clear that both bedrooms have independent access to it.

0:29:000:29:05

It turned out, turning the staircase wasn't an option,

0:29:050:29:08

due to the limit of floor-to-ceiling space.

0:29:080:29:11

It would actually be against regulations to put it that steep,

0:29:110:29:14

so we've had to leave the stairs the way round they are.

0:29:140:29:17

You know how we always bang on about doing your research.

0:29:180:29:21

If Ali and Rob had talked to their neighbours sooner,

0:29:210:29:24

they may have saved some time and money.

0:29:240:29:26

We found out after we'd done all the investigation

0:29:260:29:29

that they'd already looked into all that

0:29:290:29:31

and there was nothing they could do.

0:29:310:29:33

When removing the concrete slabs at the back,

0:29:350:29:37

they discovered Staffordshire blue brick,

0:29:370:29:40

which surprisingly is made from red clay that turns blue

0:29:400:29:43

when fired in a low oxygen environment.

0:29:430:29:46

They just raised the bricks up and made a whole new surface.

0:29:460:29:50

There were some unpleasant surprises, too.

0:29:500:29:53

We also found a drain that had been covered up with a for sale sign

0:29:530:29:57

that had a big hole in it,

0:29:570:29:58

so we've had a manhole cover installed in the back yard.

0:29:580:30:02

Then there was the shocking discovery of the electric shower

0:30:020:30:06

installation that definitely wouldn't pass current regulations -

0:30:060:30:10

or even the old ones, for that matter.

0:30:100:30:12

The electric cable for it went out the back of the shower, outside,

0:30:120:30:19

down the wall, into the kitchen and hooked up to the cooker point.

0:30:190:30:25

Whoever installed this was taking a big risk,

0:30:250:30:27

because should work you carry out kill or injure someone,

0:30:270:30:31

you could end up in prison.

0:30:310:30:33

Once again, a reminder that electrics are not for amateurs.

0:30:330:30:36

Always get the work carried out by a certified professional,

0:30:360:30:39

like Ali and Rob are in the process of doing

0:30:390:30:42

with their new electric shower -

0:30:420:30:44

but dodgy electrics weren't an end to their problems.

0:30:440:30:48

We also found fire damage.

0:30:480:30:50

Fire damage and damp, we had it all, you know?!

0:30:500:30:52

Ali and Rob prioritised work on the bungalow which they sold,

0:30:530:30:57

and after commuting south, decided to move into this property

0:30:570:31:01

whilst work continued, all of which meant overrunning

0:31:010:31:04

their approximate six month timescale.

0:31:040:31:07

So how accurate was the £15,000 budget forecast?

0:31:070:31:10

It's just around the 16,000 mark, I think.

0:31:100:31:15

We invited two local property experts along,

0:31:180:31:20

to witness Ali and Rob's handiwork.

0:31:200:31:23

What is most appealing?

0:31:230:31:25

It's nice to see a mix of old and new,

0:31:250:31:27

what with the ceiling roses,

0:31:270:31:29

standing radiators, modern kitchen and bathroom suites.

0:31:290:31:32

On the surface, it looks good.

0:31:320:31:34

The key areas I really like is the kitchen.

0:31:340:31:36

I think they've done it to a really high spec.

0:31:360:31:38

As well, the bathroom, it's a fantastic size,

0:31:380:31:40

as are both of these bedrooms.

0:31:400:31:42

The couple bought for 60,000, and spent a further 16,000 on it,

0:31:420:31:46

so disregarding taxes and expenses,

0:31:460:31:48

anything over 76,000 is a potential profit.

0:31:480:31:52

If we were to put this property on the market today,

0:31:520:31:54

I'd be looking at putting it on in the region of £90,000.

0:31:540:31:57

If we were to market the property,

0:31:570:31:58

I would expect to achieve in the region of 80 to £85,000.

0:31:580:32:01

-OK!

-OK.

0:32:020:32:04

-We'll take that!

-Yeah.

0:32:040:32:05

The agents' top rental value is £500 per calendar month,

0:32:090:32:12

but Ali and Rob had decided to sell,

0:32:120:32:14

and are using the profits from this and their bungalow

0:32:140:32:17

to buy their yurt village development in Lincolnshire,

0:32:170:32:20

where they hope to self-build a house and keep goats and chickens...

0:32:200:32:24

..but one thing they've learned along the way

0:32:250:32:27

is, complete the sentence, Rob,

0:32:270:32:29

no matter how well you know the area...

0:32:290:32:31

You should view the property first!

0:32:330:32:36

This is Poplar, an area of East London,

0:32:410:32:44

but it hasn't always been particularly popular -

0:32:440:32:47

but I'm pleased to report that Poplar is becoming more popular.

0:32:470:32:50

Only one mile from Canary Wharf, more people than ever

0:32:510:32:55

want to live in the commutable yet relatively affordable area.

0:32:550:32:59

It's a district that's been heavily regenerated.

0:32:590:33:02

There's so much new development here,

0:33:020:33:04

including a £300 million investment that's been pumped into the historic

0:33:040:33:09

Chrisp Street Market, creating new homes and retail space.

0:33:090:33:13

Sounds like an ideal place to invest in an auction property.

0:33:130:33:17

This area's dominated by different aged blocks of flats,

0:33:220:33:26

some modern, some older.

0:33:260:33:27

The one I'm here to see is in this block, here.

0:33:270:33:30

It's a studio with a guide price of £175,000 plus.

0:33:300:33:35

I'm guessing you don't get a lot of space for your money,

0:33:350:33:37

but there's only one way to find out.

0:33:370:33:40

# Things are looking up

0:33:400:33:42

# I've seen the opportunity... #

0:33:420:33:45

Things are literally looking up,

0:33:450:33:46

as these clean communal areas are always a good sign.

0:33:460:33:49

Upstairs, I took the stairs, four flights up -

0:33:520:33:56

but there is a lift, which is really good news.

0:33:560:33:59

Actually, this is lovely.

0:33:590:34:00

Especially on a great day.

0:34:000:34:02

You've got views over Poplar,

0:34:020:34:04

there's loads happening down there -

0:34:040:34:07

oh, and if I go like this, I can see Canary Wharf.

0:34:070:34:10

You can pay an awful lot more money for that -

0:34:100:34:13

but they do say it's what's inside that counts, so let's find out.

0:34:130:34:16

Inside, to a very small hall area.

0:34:180:34:22

A bathroom. You've got enough room there for your shower in your bath.

0:34:220:34:25

Of course, it's pretty small, but it is London.

0:34:250:34:28

And your kitchen.

0:34:280:34:29

That needs to come out, the bathroom needs to come out,

0:34:290:34:32

complete modernisation. The kitchen is small.

0:34:320:34:34

Enough room for your appliances and no more.

0:34:340:34:37

Through to your studio, living area, and it's exactly what I expected.

0:34:370:34:42

It's small. That's very old.

0:34:420:34:44

You want to think about replacing that with a combi boiler.

0:34:440:34:47

You've got a couple of damp patches, I'm spotting.

0:34:480:34:50

Nothing major, but they're on the ceiling, and of course,

0:34:500:34:53

we are on the top floor, so above is the roof, and fingers crossed,

0:34:530:34:56

there's no problems there,

0:34:560:34:58

but you do always want to check that out with a damp specialist.

0:34:580:35:01

I do wonder what was here once, some sort of fireplace.

0:35:010:35:04

The windows, now, they've seen better days.

0:35:040:35:07

The handle's just about falling off.

0:35:070:35:09

The rubber casing is almost completely gone.

0:35:090:35:11

But outside, you have the London landmark, the Gherkin.

0:35:120:35:16

That's put a smile on my face.

0:35:160:35:17

On one side you've got Canary Wharf,

0:35:170:35:19

the other side you've got the Gherkin,

0:35:190:35:21

it's definitely not all bad.

0:35:210:35:23

For a young professional wanting a short commute to the office,

0:35:260:35:29

this could be i-dill...

0:35:290:35:32

..but if you are planning to making structural changes here,

0:35:320:35:35

you could find yourself in a bit of a...

0:35:350:35:37

Pickle.

0:35:370:35:39

My first thought with any studio flat is,

0:35:390:35:41

can you make it into a one-bedroom, because then you'd be adding value,

0:35:410:35:45

but there's just not the space to do it here.

0:35:450:35:47

So let's think around it.

0:35:470:35:49

How can you make this flat feel more spacious?

0:35:490:35:51

For me, it's a no-brainer to take down the kitchen wall.

0:35:510:35:55

So, you'd take down the kitchen wall,

0:35:550:35:57

but you would absolutely have to check with the freeholder,

0:35:570:36:00

because this is a leasehold property,

0:36:000:36:01

that you have permission to do that.

0:36:010:36:03

Once that's down, you can really think about maximising your space,

0:36:030:36:07

and it would feel so much bigger.

0:36:070:36:09

Now that does mean you'll be living, cooking and sleeping

0:36:090:36:12

in the same space, so that might not be for everyone,

0:36:120:36:15

and you would have to check that your plans

0:36:150:36:18

did meet building regulations.

0:36:180:36:20

There might be issues around fire prevention.

0:36:200:36:22

But once you've done that, it's time to think about furniture,

0:36:220:36:27

being clever, how you can make this feel bigger.

0:36:270:36:30

So glass tables, glass shelves, nothing that feels cluttered.

0:36:300:36:35

Definitely not any oversized furniture.

0:36:350:36:37

Keep it small, maybe a foldaway bed.

0:36:370:36:39

You can't change the square footage,

0:36:390:36:42

but you can maximise your space and make it look good.

0:36:420:36:44

Yes, aesthetics are important,

0:36:460:36:48

but could it look good from an investment point of view?

0:36:480:36:52

Let's see what a local estate agent thought of this studio flat

0:36:520:36:57

guided at £175,000 plus.

0:36:570:36:59

It's a little bit on the small side, smaller than I expected to see.

0:36:590:37:02

I think my only concern

0:37:020:37:03

is there's quite a lot of work to be done in here.

0:37:030:37:06

New kitchen, new bathroom

0:37:060:37:07

and full redecoration to the property, as well.

0:37:070:37:09

He's not wrong. It's a small space,

0:37:090:37:12

but are there any big pros or cons here?

0:37:120:37:15

I really like the location, that's the biggest thing for me.

0:37:150:37:18

Nice views out across to London and to certain different aspects.

0:37:180:37:21

I think the only real flip side for me

0:37:210:37:22

is probably the construction of the property.

0:37:220:37:24

I think it's nonstandard construction,

0:37:240:37:26

possibly concrete build,

0:37:260:37:28

and also it's got deck access to the rear.

0:37:280:37:30

Deck access is basically where you access the property via a deck,

0:37:300:37:34

like a pathway at the back of the property,

0:37:340:37:36

so from that point of view,

0:37:360:37:37

you might have a problem with a few mortgages on that,

0:37:370:37:40

so, yeah, have to wait and see.

0:37:400:37:41

As ever, you should always make sure you have finance in place

0:37:410:37:45

before bidding at auction.

0:37:450:37:46

Lenders can be nervous about properties

0:37:460:37:49

that stray too far from what they think of as the norm,

0:37:490:37:52

so nonstandard construction and the deck access

0:37:520:37:56

could mean this is one for a cash investor.

0:37:560:37:59

Bearing all this in mind, what could it be worth once sorted out?

0:37:590:38:03

You know, a good standard of finish,

0:38:030:38:05

I think we'd be looking around £240-250,000.

0:38:050:38:08

Yes, this property is small,

0:38:090:38:11

and it's a bit rough round the edges,

0:38:110:38:14

but what it has going for it is a cracking location.

0:38:140:38:17

Let's find out who was prepared to invest in this ever-improving area

0:38:170:38:21

when it went to auction.

0:38:210:38:22

It's a purpose-built flat in need of modernisation,

0:38:240:38:27

offered with vacant possession, 190 anywhere?

0:38:270:38:30

You having a go? Thank you.

0:38:300:38:31

190, I've got.

0:38:310:38:33

191, 192, 193...

0:38:330:38:36

A rapid sequence of bids followed

0:38:360:38:39

until we rejoined the bidding at £196,000.

0:38:390:38:43

196. 197. 198, yeah?

0:38:430:38:46

198. 199. 200.

0:38:460:38:49

200 back in.

0:38:490:38:51

201, 202?

0:38:510:38:53

Go through it again. 201 for the first, 201 for the second,

0:38:530:38:57

201 for the third and final time.

0:38:570:38:59

All done, sold, 201.

0:38:590:39:01

That successful bid of £201,000 on the day

0:39:040:39:07

came from Bill and his son James -

0:39:070:39:10

and I caught up with this pair to hear what they had planned

0:39:100:39:14

for the studio flat.

0:39:140:39:15

James, pleased to meet you.

0:39:180:39:19

-Thank you.

-And Bill.

0:39:190:39:21

-Bill, yes.

-Congratulations on your purchases.

0:39:210:39:23

-Thank you very much.

-So, why this one?

0:39:230:39:25

It was a small project to start off with, it's our first one,

0:39:250:39:29

so we're looking for something to get into

0:39:290:39:32

that won't take too long and,

0:39:320:39:34

er, might make us a little bit of profit in the short-term.

0:39:340:39:36

So tell me a bit about you.

0:39:360:39:38

What do you do?

0:39:380:39:39

What's your background, Bill?

0:39:390:39:41

Well, I'm retired. I used to be in IT.

0:39:410:39:44

I was a project manager for a while,

0:39:440:39:46

but I really wanted to do something else,

0:39:460:39:48

and, er, the opportunity came up to work with James.

0:39:480:39:52

And, James, what's your background?

0:39:520:39:55

I currently work for a large water company full-time.

0:39:550:39:58

A plumbing background and a gas engineer -

0:39:580:40:01

but I love doing things from home, DIY,

0:40:010:40:05

plus built my own home extension on our house,

0:40:050:40:08

so I'm keen to get my hands dirty and hopefully turn this around.

0:40:080:40:13

So, father and son, who's the boss?

0:40:130:40:16

My dad, I think. Financially, at least, anyway.

0:40:160:40:18

In control of the money!

0:40:190:40:21

-Definitely.

-And for myself,

0:40:220:40:24

it will be, obviously, purchasing things like the bathroom suite,

0:40:240:40:28

the kitchen, new boiler, all the other bits and pieces.

0:40:280:40:32

-And doing most of the work.

-And doing most of the work, yes!

0:40:320:40:36

# Like father

0:40:360:40:38

# Like son... #

0:40:390:40:43

Yep, it looks like those roles

0:40:430:40:45

are pretty clearly defined from the offset, so,

0:40:450:40:49

what tasks is James going to have on his to-do list?

0:40:490:40:53

Ideally, what we'd like to do is open this back wall on the back of

0:40:530:40:57

the kitchen, and open it up into the lounge area.

0:40:570:41:01

I do think that side, there's much we can do.

0:41:010:41:03

Obviously, put in a new bathroom suite, brand-new kitchen,

0:41:030:41:06

and hopefully taking out the hot water cylinder

0:41:060:41:08

and putting a combi boiler in

0:41:080:41:09

to make more space within the living area.

0:41:090:41:11

So, we're agreed on all that,

0:41:110:41:13

but have they explored getting permission from the landlord

0:41:130:41:17

to do the work?

0:41:170:41:18

I've made tentative enquiries already with the landlord here,

0:41:180:41:23

with the freeholder.

0:41:230:41:24

They haven't been able to give us a definite indication as to whether

0:41:240:41:28

we'd be successful or not,

0:41:280:41:29

and they won't do that until we've got completion.

0:41:290:41:32

Hopefully, we get a favourable outcome.

0:41:320:41:35

Open it up, make it nice and fresh, Bob's your uncle.

0:41:350:41:37

Bill's your uncle - except Bill's your dad.

0:41:370:41:40

Bill's your dad doesn't really have the same ring, does it?

0:41:410:41:44

Moving swiftly on,

0:41:440:41:45

Bill and James have a budget of ten grand

0:41:450:41:48

for their first renovation project,

0:41:480:41:50

and plan to get the work complete in six months,

0:41:500:41:53

with James getting stuck in at evenings and weekends.

0:41:530:41:56

Hopefully, it'll be happy families at the end

0:41:570:42:00

when it's ready to sell on.

0:42:000:42:01

How do you two get on, generally? Be honest.

0:42:020:42:06

-Any fights?

-Don't think so.

-No.

0:42:060:42:08

As long as you - as long as you keep your nose out of my bank account,

0:42:080:42:11

it'll be all right.

0:42:110:42:12

I'm just buying the stuff, that's it.

0:42:120:42:14

Hopefully, he'll let me just crack on with it.

0:42:140:42:16

As long as we agree, which I think we do, pretty much,

0:42:160:42:20

it should be good.

0:42:200:42:21

Good. Congratulations again.

0:42:210:42:23

Thank you very much.

0:42:230:42:24

-And good luck. Cheers.

-Thank you.

-Thank you.

-Thanks, James.

0:42:240:42:28

So this is a first investment property

0:42:280:42:30

for father and son team Bill and James,

0:42:300:42:33

and they're starting off with something small

0:42:330:42:35

and hopefully straightforward -

0:42:350:42:37

but will they get that permission to knock down the kitchen wall

0:42:370:42:40

and really improve the space?

0:42:400:42:42

You can find out later in the show.

0:42:420:42:43

Well, earlier we saw how one of our property developers got on.

0:42:470:42:51

What about the other two?

0:42:510:42:52

Yes, I'm intrigued to see how the other two got on,

0:42:520:42:55

and if there were any unexpected surprises.

0:42:550:42:57

Yeah, I don't mind an unexpected surprise,

0:42:570:43:00

it's the expensive ones that I'm not a fan of.

0:43:000:43:02

Let's see what happened.

0:43:020:43:03

Back now to a lovely spot in north-east Worcestershire.

0:43:050:43:08

A mile away from the M42 lies the village of Blackwell,

0:43:080:43:12

where I looked around this one-bedroom

0:43:120:43:14

former woodsman's cottage and a plot nearly 1,300 square yards.

0:43:140:43:18

There's been a wood burner there.

0:43:200:43:22

They've taken the burner and they've left the wood.

0:43:220:43:26

There's no glass in the windows at all.

0:43:260:43:29

Wow.

0:43:310:43:32

It was bought by Simon, who works in the pharmaceutical industry,

0:43:320:43:36

for 275 grand, with a view to extend, and so on.

0:43:360:43:41

I want to keep the cottage feel,

0:43:410:43:43

and then as you go into the new-build at the back,

0:43:430:43:45

it'll be all open,

0:43:450:43:46

so you'll have two little rooms at the front, olde worlde style,

0:43:460:43:50

and then walking into modern at the back.

0:43:500:43:52

What about your budget, then? Because there's a fair bit of work

0:43:520:43:55

to be done with extensions and big doors and...

0:43:550:43:57

Budgeting about 120.

0:43:570:44:00

OK. Did you ever think to yourself,

0:44:000:44:02

"I'm going to buy this, I'm going to live in it?"!

0:44:020:44:04

No, I'm a townie.

0:44:040:44:06

At the moment, it's up for sale.

0:44:060:44:07

Simon had a local architect who has worked closely with the council,

0:44:080:44:12

so he was optimistic about plans being passed.

0:44:120:44:16

He saw property developing as a hobby to occupy his spare time.

0:44:160:44:20

In this case, he thought nine months of it is all it would take.

0:44:200:44:23

We're back five months later to see how he's getting on.

0:44:230:44:26

In essence, there have been changes inside, as you can see,

0:44:280:44:32

and on the face of it, they are changes for the worst...

0:44:320:44:36

..but as you know, on a refurbishment,

0:44:360:44:38

things have to get worse before they can get better,

0:44:380:44:41

which is certainly the case here.

0:44:410:44:43

At least inside.

0:44:430:44:44

Outside, though, there have been positive changes.

0:44:470:44:51

Simon's plans have gained planning permission,

0:44:510:44:54

and after shifting 30 tonnes of soil and putting in footings,

0:44:540:44:57

the new extension is starting to emerge out of the ground.

0:44:570:45:01

The new bricks are a close match to the existing ones,

0:45:020:45:05

and work divides between outside construction on fine days

0:45:050:45:09

and internal stripping back in bad weather.

0:45:090:45:12

Over to Simon for a tour of the works.

0:45:120:45:15

OK, this is coming out of the existing cottage

0:45:150:45:18

into the new extension.

0:45:180:45:19

This is all one room.

0:45:190:45:21

Kitchen area, stairs going up to the first floor,

0:45:210:45:25

and that's the living area down this end,

0:45:250:45:27

with a little utility room at the back.

0:45:270:45:29

Basically, this is open-plan living.

0:45:290:45:33

So you've gone from olde worlde,

0:45:330:45:35

two little tiny rooms which we're keeping as a snug, an office,

0:45:350:45:40

two bedrooms, and then, here,

0:45:400:45:42

we will go up the stairs into a big master bathroom, onto the landing,

0:45:420:45:47

and then a box room and an en suite bathroom.

0:45:470:45:51

I mean, you can visualise it now.

0:45:510:45:53

Plenty of light through the big windows.

0:45:530:45:55

You get a feeling of the size of it now,

0:45:550:45:57

so I'm really happy with it at the moment.

0:45:570:45:59

So basically, this is just about the downstairs open-plan living.

0:45:590:46:03

As expected, although the planning process took its time,

0:46:050:46:08

overall, Simon got good feedback from the council.

0:46:080:46:11

By listening to them in the first place,

0:46:110:46:14

we haven't had to go to and fro.

0:46:140:46:15

We've just said, "What can we go up to?"

0:46:150:46:17

And that's what we've done.

0:46:170:46:19

Because it was a falling down cottage,

0:46:190:46:21

and we wanted to keep it as a cottage and not development land,

0:46:210:46:24

because you've got to live in it, they were quite good.

0:46:240:46:28

You know, I can't - I can't really knock them.

0:46:280:46:29

It wasn't, "Oh, no, we don't like building."

0:46:290:46:32

You know, they want to see the place up and running.

0:46:320:46:34

You know, it's... It's an eyesore!

0:46:340:46:36

But it's an eyesore with an owner that has a vision.

0:46:360:46:39

Now, how has it been project managing at the same time

0:46:390:46:42

as your day job in the pharmaceutical industry?

0:46:420:46:45

There's only three of us on site,

0:46:460:46:47

and we've got two guys here at the moment.

0:46:470:46:50

They're pretty much here full-time.

0:46:500:46:52

So I go to work early in the morning, do three or four hours,

0:46:520:46:56

then I come on site.

0:46:560:46:57

Managing the time hasn't been too difficult.

0:46:570:47:01

How is the 120 grand budget going?

0:47:010:47:03

Oh, that's gone. No, it hasn't!

0:47:030:47:06

Phew! You had me there.

0:47:060:47:07

No, no, I mean, we're at the start of the project.

0:47:070:47:11

Planning has got a certain cost, which, you know, we met.

0:47:110:47:15

The ground works, we found nothing untoward,

0:47:150:47:19

so that can be a big, big problem.

0:47:190:47:21

So, we saved a little money there, and we've just started building,

0:47:210:47:26

so the costs haven't started to grow yet.

0:47:260:47:29

And what about the timescale, originally planned for nine months?

0:47:290:47:33

We're on schedule. We've had it for about five months.

0:47:330:47:37

Obviously, three or four months of that took,

0:47:370:47:40

was taken by getting the planning.

0:47:400:47:43

We've actually been working on it for probably six weeks now.

0:47:430:47:46

Um, but all the hard work has been done.

0:47:460:47:49

-And what's been the best bits so far?

-None of it!

0:47:490:47:52

It's all been enjoyment.

0:47:540:47:56

From the auction, which was great fun, to actually getting planning,

0:47:560:48:01

which was the big hurdle.

0:48:010:48:03

That was a massive high -

0:48:030:48:04

and then once you start actually working on it,

0:48:040:48:08

it's becoming reality.

0:48:080:48:09

So, yeah, it's been enjoyable.

0:48:090:48:12

We haven't had any downs at the moment.

0:48:120:48:14

They've all been ups, they've all been highs.

0:48:140:48:16

But there's been a change of plan.

0:48:160:48:18

Simon's decided to keep the house

0:48:180:48:20

and live in it with his girlfriend, Kim.

0:48:200:48:22

We've got what we wanted,

0:48:260:48:27

so we're happy, we're building it for ourselves.

0:48:270:48:29

So it's going to be a family home.

0:48:290:48:31

Wow. Simon has decided to give up his townie ways.

0:48:330:48:37

Time to find out from two local estate agents,

0:48:370:48:39

could he make a profit

0:48:390:48:41

if he changed his mind again?

0:48:410:48:43

Firstly, what do the agents make of this unusual project?

0:48:430:48:46

The layout will be a lot better than it is at the moment.

0:48:470:48:52

You're still going to have walking straight into a living room

0:48:520:48:55

off the front, but that's accommodated,

0:48:550:48:57

because the main living area

0:48:570:48:59

is going to be at the back of the house now,

0:48:590:49:01

so I don't think that's as big an issue as it would've been

0:49:010:49:03

with the cottage originally.

0:49:030:49:06

A lot of people around here love their privacy,

0:49:060:49:09

and, you know, it's, it's tree-lined,

0:49:090:49:11

it's framed by well-established trees,

0:49:110:49:13

so it's a nice secluded spot in a really desirable location.

0:49:130:49:17

Simon paid £275,000,

0:49:170:49:19

and hopes to complete within his 120 grand budget,

0:49:190:49:25

a grand total of £395,000.

0:49:250:49:28

So what could it sell for once it's finished to a high spec?

0:49:280:49:32

A realistic valuation in the £550,000

0:49:320:49:36

would be a reasonable expectation.

0:49:360:49:39

You may, depending on the market conditions at the time,

0:49:390:49:42

want to try it at a higher asking price and see where the market goes,

0:49:420:49:45

but we would have to review that at the time.

0:49:450:49:47

I think in the current market, where we stand here today,

0:49:470:49:50

if the property's done to the finish that we would expect,

0:49:500:49:54

we are looking to achieve about £550,000.

0:49:540:49:58

Well, this derelict old cottage

0:49:580:49:59

is going to be given a new lease of life,

0:49:590:50:02

and it looks, if Simon changes his mind again,

0:50:020:50:05

as if he could potentially realise a pre-tax profit of £155,000.

0:50:050:50:11

What does he make of that?

0:50:110:50:12

It's nice to hear that you're putting value into something,

0:50:120:50:16

and it's growing, so it is an investment.

0:50:160:50:18

Obviously, it is for the future, so, I'm pleased with the valuation.

0:50:180:50:24

That's good.

0:50:240:50:25

It's back to East London now and the area of Poplar.

0:50:290:50:33

Sitting just one mile from Canary Wharf,

0:50:330:50:35

Poplar is a much sought-after area with buyers and investors alike,

0:50:350:50:40

making it, well, popular.

0:50:400:50:42

# You know and I know your popular mind is like... #

0:50:420:50:47

I came here to look at a fourth floor studio flat with a guide price

0:50:470:50:52

of £175,000 plus -

0:50:520:50:55

and with stunning views of the city from the front and the back,

0:50:550:50:59

I was keen to maximise the potential here.

0:50:590:51:02

How can you make this flat feel more spacious?

0:51:030:51:06

For me, it's a no-brainer to take down the kitchen wall.

0:51:060:51:10

So you take down the kitchen wall,

0:51:100:51:11

but you would absolutely have to check with the freeholder,

0:51:110:51:14

because this is a leasehold property,

0:51:140:51:16

that you have permission to do that -

0:51:160:51:17

but once that's down, you can really think about maximising your space,

0:51:170:51:21

and it would feel so much bigger.

0:51:210:51:23

Yes, for me, when buying a studio property,

0:51:250:51:28

it's all about making the most of what you've got,

0:51:280:51:31

and I felt this could make a really sound investment.

0:51:310:51:35

Two people who agreed with me were father and son team Bill and James.

0:51:350:51:39

All done. Sold, 201.

0:51:390:51:41

First-time investors Bill and James bought a property for £201,000

0:51:410:51:47

at auction, and they had some familiar sounding plans.

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Ideally, what we'd like to do is open this back wall

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on the back of the kitchen, and open it up into the lounge area.

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I don't think that side, there's much we can do.

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Obviously, put in a new bathroom suite, same with the kitchen.

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Brand-new kitchen going in there...

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..and hopefully taking out the hot water cylinder

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and putting a combi boiler in to make more space in the living area.

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Bill would be overseeing the project,

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while son James planned to do a lot of the work himself,

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being a qualified plumber and gas engineer.

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They had a budget of ten grand and a timescale of six months,

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to make this poky studio a spacious one.

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We are back just short of eight months later.

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# Looking good

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# Looking so good

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# You're looking good

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# I knew that you would... #

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Due to building regulations,

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they weren't able to make the property open-plan,

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but they did move the boiler into the kitchen

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and extend the kitchen a couple of feet for more space.

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Smart thinking.

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# Looking good

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# Oh, so good... #

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The bathroom has been re-plumbed and refitted by James.

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The entire flat has been rewired to suit a modern buyer.

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# You make me feel good

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# You make me feel good... #

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It's clean, neutral and absolutely perfect for the sales market.

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OK, so what we did, our initial thoughts

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were to knock down this wall behind us and make it all open-plan -

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but, unfortunately, due to building control,

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we weren't allowed to do that,

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and the flat being on the fourth floor,

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we were advised that we would have to put in a sprinkler system,

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so, we decided against that.

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We had the place replastered from top to bottom.

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We put in new ceilings, put new LED spotlights in,

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put the storage space in behind us,

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so, obviously, got storage space within the flat.

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I did the whole plumbing system and central heating system myself,

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being gas safe registered and a plumber, um,

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so it kept the costs down quite a bit...

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..and also the kitchen, we did ourselves as well.

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The extra space we've created by moving the wall back,

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that enabled us to put in some slimline units in the kitchen,

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so, more storage space, as well.

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The only person we got in

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was the chippy to do the worktop itself,

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to get that fitted together and make it key in nicely

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with the rest of the units.

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My role has been support, definitely support role.

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James has taken the lead on everything.

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Um, so, whatever he's told me needs to be done,

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then I've got on with it, really.

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So from my point of view,

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I had a go at the skirting.

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I did a lot of the painting, but it was supporting, taking walls down,

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building new ones, anything that James needed, really,

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I was there to help.

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Moving the kitchen wall did extend its space,

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but would it translate into profit?

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James and Bill had a budget of ten grand and a timescale of six months.

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How's that looking now?

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Yeah, we originally thought we were going to be able to get away

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with about £10,000, but we ended up spending about 11 and a half,

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so, over our original budget.

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We initially said six months.

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Due to myself, I have a full-time job,

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and only being able to get over here

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sort of evenings and weekends, really,

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um, it did take a little bit longer.

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One of those was the fact of, like we were saying earlier, the wall,

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we had to wait for building control to come back

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and say yes or no to that.

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We had to wait a little while for that.

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Once we got a, "No," we had to rethink what we were going to do.

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So, yeah, it took on a bit longer.

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So, all in all, they invested £212,500,

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and are eager to get the property onto the sales market.

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We asked two local estate agents along for their opinions.

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I think by making the kitchen a little bit larger,

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and having the space for it to become fully functional

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with a fridge freezer

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will certainly add benefits to the flat itself.

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I think they took the right amount of space

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and they haven't made the studio area too small.

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This is my first visit to the property,

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and what they've done to it is lovely.

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Decoration is nice and bright.

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It's got lovely views over the city.

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South-west facing, so a lot of light is coming into the property.

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So, the agents sound enthusiastic -

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but let's hear those all-important valuations.

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When this property goes on the market

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it would achieve in the region of £250,000.

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I believe the property should go on the market for £250,000,

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and I believe offers should be invited close to that level.

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OK. It's less than we thought, to be honest with you.

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We have had some valuations already from a few agents,

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and they've gone from about 258 up to 270,000.

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So, we're hoping for a little bit more than that,

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to be honest with you, at this stage.

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So, not quite the numbers they were looking for,

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but a £250,000 sale would still result

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in a very healthy pre-tax profit of £37,500.

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So, whatever way you look at it,

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their first project has been a success -

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but will they be venturing back to the auction room?

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Er, yeah, I think so.

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Hopefully! I don't know!

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Yeah, I think so. We'll give it another go.

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See what happens.

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As you've seen, it's important to have a little bit of flexibility

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-with your plans.

-Yes, you never know what's round the corner

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or under the plaster.

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So join us next time when we see another three properties

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-that went under the hammer.

-Bye-bye.

-Bye-bye.

-Goodbye.

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