Episode 71

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0:00:02 > 0:00:03Hello, and welcome to the show.

0:00:03 > 0:00:06Now, if you want the best possible return on an investment,

0:00:06 > 0:00:09then property is definitely worth considering.

0:00:09 > 0:00:13Yes, but making money is not a foregone conclusion.

0:00:13 > 0:00:15One way to stack things in your favour, though,

0:00:15 > 0:00:17is to head down to your local property auction.

0:00:43 > 0:00:46Well, when you buy at auction you have options.

0:00:46 > 0:00:48Do you do up and sell on,

0:00:48 > 0:00:52or do you do a refurbishment and then rent it out?

0:00:52 > 0:00:56You may even end up loving it so much it becomes your dream home.

0:00:56 > 0:00:59Let's find out what today's buyers did when they went to auction.

0:01:00 > 0:01:06In Doncaster, South Yorkshire, this three-bed semi has a semi-archway.

0:01:06 > 0:01:09Any quirks are good, adds to a house - the feeling, the character.

0:01:10 > 0:01:14In Herne Bay, Kent, Lucy looks at a plot with promising panoramas.

0:01:14 > 0:01:19Whatever you build here will have that as a view.

0:01:19 > 0:01:22And in the Edmonton area of London,

0:01:22 > 0:01:26there could be lofty aspirations in this three-roomed first-floor flat.

0:01:26 > 0:01:30One of the things you might consider doing is extending upwards.

0:01:32 > 0:01:35All these properties have been sold at auction, and we'll find out

0:01:35 > 0:01:37who bought them and what they paid for them

0:01:37 > 0:01:39when they went under the hammer.

0:01:39 > 0:01:41Sold.

0:01:44 > 0:01:48South Yorkshire now, and the town of Doncaster.

0:01:48 > 0:01:50Once a powerhouse of the industrial north,

0:01:50 > 0:01:54Doncaster can lay claim to two famous landmarks.

0:01:54 > 0:01:56Westminster Abbey was created by

0:01:56 > 0:02:00Doncaster-born architect John Francis Bentley,

0:02:00 > 0:02:04and the clock in Big Ben by Edmund Beckett Denison,

0:02:04 > 0:02:05also a Doncaster lad.

0:02:05 > 0:02:08Time for us to get hands-on with our property.

0:02:10 > 0:02:14It's always great to have a lovely big park outside your house.

0:02:14 > 0:02:17Not so great when you've got a dual carriageway in between.

0:02:17 > 0:02:20But location-wise, the property I'm here to see

0:02:20 > 0:02:22is just a mile away from the town centre,

0:02:22 > 0:02:24which could be great news for the rental market.

0:02:24 > 0:02:25This is the property.

0:02:25 > 0:02:28Oh, and I also spotted some off-street parking, which is good.

0:02:28 > 0:02:33The property has three bedrooms and a guide price of £45,000 plus.

0:02:33 > 0:02:34Let's go look.

0:02:36 > 0:02:40It's a family house, but would a family with young kids want to live

0:02:40 > 0:02:45on a very busy dual carriageway, even with a park on the other side?

0:02:45 > 0:02:46# Park life... #

0:02:46 > 0:02:49I'm not sure I would.

0:02:49 > 0:02:51Into our hallway.

0:02:51 > 0:02:55Now, the very first area of the hallway is under the stairs.

0:02:55 > 0:02:58Dead space. If you like, you could get rid of this,

0:02:58 > 0:03:00but actually some people like a wee bit of storage space

0:03:00 > 0:03:02for their hoover, sometimes the washing machine,

0:03:02 > 0:03:06keep it out of the kitchen. You have a very old fuse box there.

0:03:06 > 0:03:09I'd imagine you'd struggle to get fuses for that.

0:03:09 > 0:03:10Might need an upgrade.

0:03:10 > 0:03:13A little toilet, doesn't have a sink,

0:03:13 > 0:03:15but it's good to have your downstairs toilet.

0:03:15 > 0:03:17Put a sink in there.

0:03:17 > 0:03:19And the kitchen...

0:03:19 > 0:03:21..it's actually a really good size.

0:03:21 > 0:03:24You would need to replace the kitchen. Well, I say replace.

0:03:24 > 0:03:25There's actually no kitchen in there.

0:03:25 > 0:03:27You just need a new kitchen in.

0:03:27 > 0:03:28Not much light coming in.

0:03:28 > 0:03:31You could maximise light, maybe getting a different door,

0:03:31 > 0:03:34more glass. But pretty small point.

0:03:34 > 0:03:39Definitely enough room in there for sociable living, a dining table.

0:03:39 > 0:03:42And then through to your reception area.

0:03:42 > 0:03:45I can tell this has been two rooms knocked into one,

0:03:45 > 0:03:48which gives a great sense of space.

0:03:48 > 0:03:51And I don't hear any noise, considering how busy

0:03:51 > 0:03:53that dual carriageway is.

0:03:53 > 0:03:55There's double glazing,

0:03:55 > 0:03:58and the double glazing is definitely doing its job.

0:03:58 > 0:04:01The heating, you have central heating - good.

0:04:01 > 0:04:03May well require an upgrade.

0:04:03 > 0:04:05You'd want to get that checked out.

0:04:05 > 0:04:09This has a feeling of a place that work has been started at,

0:04:09 > 0:04:11and somebody's gone.

0:04:11 > 0:04:14So, the ceiling paintwork is really new,

0:04:14 > 0:04:18albeit dated, from the swirly plasterwork.

0:04:18 > 0:04:20But all in all, a great start.

0:04:21 > 0:04:24Yes, wallpaper has been stripped and painting's begun,

0:04:24 > 0:04:29but that all begs the question - if they made a start, why did they stop?

0:04:31 > 0:04:34Hopefully not because they unearthed unseen problems.

0:04:37 > 0:04:40I can see as I come upstairs where work has already started.

0:04:40 > 0:04:44So, wallpaper's been steamed off to expose the plasterwork,

0:04:44 > 0:04:46which is in pretty good nick.

0:04:46 > 0:04:47Wouldn't need a full plaster job.

0:04:47 > 0:04:49It looks quite new, actually.

0:04:49 > 0:04:52You might just get away with a skim.

0:04:52 > 0:04:55And through to a bathroom.

0:04:55 > 0:04:58Nice little flowers detail on the suite but that needs to come out,

0:04:58 > 0:05:02modernise it. And then starting off with a really good-sized

0:05:02 > 0:05:04child's bedroom. I can tell it's a child's bedroom,

0:05:04 > 0:05:07some lovely paintings on the walls of castles.

0:05:07 > 0:05:10Another bedroom is a very good size.

0:05:10 > 0:05:13I like the design quirk of half an archway.

0:05:13 > 0:05:17You may find that the chimney breast is next to it, so that the chimney

0:05:17 > 0:05:21went off at an angle and therefore it's been designed around it.

0:05:21 > 0:05:24Any quirks are good, adds to a house - the feeling, the character.

0:05:24 > 0:05:28And through to your third bedroom, which again is a great size.

0:05:28 > 0:05:32So often in three-beds one of the bedrooms is a bit of a compromise,

0:05:32 > 0:05:35it's a box room, you might get away with a study or a cot.

0:05:35 > 0:05:40But you could get a double bed comfortably into each of them.

0:05:40 > 0:05:42I also like the floors because they're exposed,

0:05:42 > 0:05:46and you could sand them, make a gorgeous original feature.

0:05:46 > 0:05:49The ceilings are pretty much all painted new.

0:05:49 > 0:05:52Some of the work's been done for you.

0:05:52 > 0:05:54A lot still needs to be done,

0:05:54 > 0:05:58but it strikes me that there's nothing too drastic here.

0:06:01 > 0:06:04# I know that things could be

0:06:04 > 0:06:05# Worse for me

0:06:05 > 0:06:07# So I won't cry... #

0:06:07 > 0:06:11The property itself is on a fair-size plot with a decent,

0:06:11 > 0:06:15albeit overgrown, and not exactly private garden to the rear

0:06:15 > 0:06:19and ample space to the side and front for that off-road parking

0:06:19 > 0:06:22I mentioned earlier, which is essential when living

0:06:22 > 0:06:24next to a dual carriageway.

0:06:24 > 0:06:27That's the rub, really, here, isn't it?

0:06:27 > 0:06:30Great size house but next to a big, busy road,

0:06:30 > 0:06:33so not for everyone.

0:06:33 > 0:06:37We asked along a local estate agent for his opinion on this property,

0:06:37 > 0:06:39guided at £45,000 plus.

0:06:41 > 0:06:43Generally, the property is in need

0:06:43 > 0:06:45of pretty much a full refurbishment,

0:06:45 > 0:06:49certainly a central heating system, maybe upgrading or a full rewire.

0:06:49 > 0:06:52I think on a reasonable level, people could spend anywhere between

0:06:52 > 0:06:57£10,000-£15,000 throughout the property, 20 at the absolute top.

0:06:57 > 0:06:58We're in agreement there.

0:06:58 > 0:07:01From top to bottom, this property needs plenty of work.

0:07:01 > 0:07:04But would it be money well spent?

0:07:04 > 0:07:06The property should achieve somewhere in the region of

0:07:06 > 0:07:09£95,000-£100,000.

0:07:09 > 0:07:11OK, what about rental?

0:07:11 > 0:07:13With regards to the rent on the property,

0:07:13 > 0:07:16in good condition, it should rent somewhere in the region of

0:07:16 > 0:07:21£500-£550 per calendar month.

0:07:21 > 0:07:24This is a good solid house that needs a lot of work doing.

0:07:24 > 0:07:27Its location brings pluses and minuses.

0:07:27 > 0:07:30That road could put some people off, but the location means

0:07:30 > 0:07:33the rental market should be buoyant so close to town.

0:07:33 > 0:07:36Let's find out who thought the pros outweighed the cons

0:07:36 > 0:07:38when it went to auction.

0:07:41 > 0:07:45A three-bedroom semidetached in need of a scheme of upgrading

0:07:45 > 0:07:46and improvement.

0:07:46 > 0:07:49We do have a telephone bid on this lot, and I also have

0:07:49 > 0:07:51a commissioned bid. Where do you want to be with this?

0:07:51 > 0:07:54Who has got £45,000 to open the bidding?

0:07:54 > 0:07:58At 45,000 I have, thank you. 46 with me.

0:07:58 > 0:08:00Commissioned bids are made by the auctioneer

0:08:00 > 0:08:05on behalf of an absent bidder who has set a pre-agreed maximum.

0:08:05 > 0:08:07We rejoin the bidding at 65 grand.

0:08:07 > 0:08:1065. 66? No.

0:08:10 > 0:08:13At £65,000 then, shan't dwell.

0:08:13 > 0:08:16At the back of room, it's £65,000

0:08:16 > 0:08:18for the first time, for the second time,

0:08:18 > 0:08:21sold. It's yours, sir, at £65,000.

0:08:21 > 0:08:24That bid was made by car trader Adam.

0:08:24 > 0:08:29He's developed property before but this was his first auction purchase.

0:08:29 > 0:08:32Adam and girlfriend Emma have come along to tell us

0:08:32 > 0:08:37why he's bought this three-bed semi for 20 grand over the guide price.

0:08:40 > 0:08:43- Emma, pleased to meet you. - You, too.- Adam.

0:08:43 > 0:08:45- Congratulations to you both.- Cheers, thank you very much.

0:08:45 > 0:08:49- The guide price was 45,000.- Yes, that's right, yes.

0:08:49 > 0:08:53And you got it for 65. So, were you happy going to that amount?

0:08:53 > 0:08:54Would you have gone up further?

0:08:54 > 0:08:58Well, it was at 63 and the auctioneer was going,

0:08:58 > 0:09:00"Going once, going twice..."

0:09:00 > 0:09:04But somebody put his hand up, so it went to 65.

0:09:04 > 0:09:07I was gutted. It's obviously not just £1,000 I have to go up,

0:09:07 > 0:09:10it's £2,000. So it was an extra £2,000 for me.

0:09:10 > 0:09:13But 65, a little bit high...

0:09:13 > 0:09:15..but I'm happy. All round, I'm happy.

0:09:15 > 0:09:17This is Adam's second house,

0:09:17 > 0:09:19and Emma's going to be helping him this time,

0:09:19 > 0:09:21so I'm just going to be nosy.

0:09:21 > 0:09:23How long have you two been together?

0:09:23 > 0:09:26We've been together about six, seven months-ish now.

0:09:26 > 0:09:28- It is six months, isn't it, baby?- Yeah.

0:09:28 > 0:09:31Is this your first time developing property?

0:09:31 > 0:09:33Uh, yes. Yeah.

0:09:33 > 0:09:35I probably... I won't do much.

0:09:35 > 0:09:38I don't know. I'll do a few things.

0:09:38 > 0:09:39- Yeah.- Strip a bit of paper off.

0:09:39 > 0:09:41- I told her she'll be doing the painting.- Yeah.

0:09:41 > 0:09:44I've got her recorded on my phone agreeing that she's going to be

0:09:44 > 0:09:47- doing the painting.- Yeah.- So, I've got evidence to back me up.

0:09:47 > 0:09:48What's the history of this house?

0:09:48 > 0:09:51cos it looks like a wee bit's been done and then abandoned.

0:09:51 > 0:09:53Yeah, when we came in...

0:09:53 > 0:09:57It worries me slightly, because somebody's already made an attempt

0:09:57 > 0:10:01at this house. And I've had a look round, I can't see any damp.

0:10:01 > 0:10:02It's looking good.

0:10:02 > 0:10:04It just needs simple jobs doing, really.

0:10:04 > 0:10:08But somebody's started this and then walked away.

0:10:08 > 0:10:09- Why?- Yeah.

0:10:09 > 0:10:12- That's what I'm thinking.- You're scared that they discovered

0:10:12 > 0:10:13something and ran for the hills?

0:10:13 > 0:10:16Yeah, any time now, any day, I'm going to pull off a piece of carpet,

0:10:16 > 0:10:19pull off a piece of wallpaper and I'm going to find the surprise.

0:10:19 > 0:10:23What are you thinking? What are your plans?

0:10:23 > 0:10:26Plaster, or at least skim. Not everywhere needs plastering,

0:10:26 > 0:10:27definitely at least a skim.

0:10:27 > 0:10:32Paint, carpets, central heating system, get the electrics checked.

0:10:32 > 0:10:35Bathrooms. There's a toilet upstairs and downstairs,

0:10:35 > 0:10:38obviously a bathroom upstairs. The kitchen is a really good size.

0:10:38 > 0:10:41Not quite big enough to get an island in but plenty of room,

0:10:41 > 0:10:43plenty of size. I've thought about knocking a wall in through

0:10:43 > 0:10:47- to the dining area.- Yeah.- To this room. But it's just cost.

0:10:47 > 0:10:50Does it need it? Is the kitchen big enough?

0:10:50 > 0:10:52Personally, I think it's going to be all right.

0:10:52 > 0:10:55But those ideas are going round in my head, pondering.

0:10:55 > 0:10:59I do want to keep costs down because this is going to be

0:10:59 > 0:11:01looking like a renter.

0:11:01 > 0:11:05Adam hopes to get the work done here for no more than 20 grand.

0:11:05 > 0:11:09He'll be getting in professionals to do the skilled work but saving money

0:11:09 > 0:11:13by doing the unskilled work, with a little help from Emma, hopefully.

0:11:13 > 0:11:16Adam thinks a three-month timescale should do it.

0:11:18 > 0:11:20Six months together...

0:11:20 > 0:11:23You're going to be working together on this project,

0:11:23 > 0:11:26so how do you get on?

0:11:26 > 0:11:28He can be quite... You can be quite bossy.

0:11:28 > 0:11:30- Mm-hm.- And I don't like being told what to do.

0:11:30 > 0:11:34- Yeah.- It is like two bulls going...

0:11:34 > 0:11:37- Yeah, maybe we clash a little bit. - We do.- But no,

0:11:37 > 0:11:40when Emma's working she works hard and the only reason she'll stop

0:11:40 > 0:11:42- is for a drink, or a sandwich, or a snack.- Yeah.

0:11:42 > 0:11:44I do quite like interior design, don't I?

0:11:44 > 0:11:46That kind of...that kind of thing.

0:11:46 > 0:11:49But I think, obviously, you're not going to be doing too much.

0:11:49 > 0:11:51- No, no. No.- I think it's just obviously picking

0:11:51 > 0:11:54the colours of the paint and stuff like that.

0:11:54 > 0:11:56So, I don't think it's going to be too extreme.

0:11:56 > 0:11:59OK, I can't wait to see how you get on, guys.

0:11:59 > 0:12:02- Thank you very much.- Hopefully, you're still speaking.

0:12:02 > 0:12:03THEY LAUGH

0:12:03 > 0:12:06Yeah, it might be a different girl when you come back.

0:12:06 > 0:12:07A different helper.

0:12:07 > 0:12:10I'm only kidding. I'm only kidding.

0:12:13 > 0:12:16Three months, you can stick together for three months.

0:12:16 > 0:12:19- Best of luck, guys. Good luck. - Thank you.- Oh, dear.

0:12:21 > 0:12:24Adam's a young man who is not fazed by this project,

0:12:24 > 0:12:27but I still have a couple of unanswered questions.

0:12:27 > 0:12:29Will he find any underlying problems?

0:12:29 > 0:12:32And will that main road put anyone off?

0:12:32 > 0:12:35But most importantly, will he still be with Emma when we come back?

0:12:35 > 0:12:37You can find out later in the show.

0:12:40 > 0:12:45Lucy's on the Kent coast in the small seaside town of Herne Bay.

0:12:48 > 0:12:50Like many of the seaside towns,

0:12:50 > 0:12:53the beaches were really buzzing in Victorian times

0:12:53 > 0:12:56when steamboats ran between here and London

0:12:56 > 0:12:59ferrying holiday-makers back and forth.

0:12:59 > 0:13:03Today, much of the 19th-century architecture remains,

0:13:03 > 0:13:06and after a downturn of its fortunes,

0:13:06 > 0:13:09tourists themselves are heading back to Herne Bay.

0:13:09 > 0:13:14# Takes me back to the place that I know

0:13:17 > 0:13:20# On the beach... #

0:13:23 > 0:13:26The chances of finding a building plot with planning permission

0:13:26 > 0:13:30in a town-centre location like this are, well,

0:13:30 > 0:13:34as likely as spotting a mermaid washed up on the beach over there.

0:13:34 > 0:13:38And the plot with planning and sea views?

0:13:38 > 0:13:41Well, come round here. It seems almost hard to believe but,

0:13:41 > 0:13:45oh, no, believe away, viewers, because, look,

0:13:45 > 0:13:48here it is, right before my eyes. Amazing.

0:13:48 > 0:13:54And the guide price, a sizeable 180,000-185,000.

0:13:54 > 0:13:56Incredible.

0:13:56 > 0:13:59# Can you believe it?

0:13:59 > 0:14:01# Can you believe it?

0:14:01 > 0:14:05# Can you believe it feels so right? #

0:14:12 > 0:14:16Well, the site itself is a bit of an odd, triangular shape,

0:14:16 > 0:14:18and it's slightly sloping, so it's not perfect.

0:14:18 > 0:14:20But not too bad.

0:14:20 > 0:14:23Now, another negative that's worth bearing in mind is that there is a

0:14:23 > 0:14:26main sewer that runs under this site

0:14:26 > 0:14:28and that will need relocating,

0:14:28 > 0:14:30and it can be costly and time-consuming.

0:14:30 > 0:14:33But all of that pales into insignificance when you think,

0:14:33 > 0:14:38whatever you build here will have that as a view.

0:14:38 > 0:14:40Gorgeous!

0:14:41 > 0:14:45# And I stare at the sea

0:14:46 > 0:14:50# And the sea smiles for me... #

0:14:50 > 0:14:55The sea might be smiling, but the plot is only 12 by 10 metres.

0:14:55 > 0:14:56Is that enough space?

0:14:56 > 0:15:01So, the drawings show a pair of two-bedroom semidetached houses here,

0:15:01 > 0:15:05and a detached one-bed which is hugging the corner of the plot.

0:15:05 > 0:15:08Now, they're certainly snug, filling almost all of the site.

0:15:08 > 0:15:11But the layout of the semis, I would say they are very standard,

0:15:11 > 0:15:13you've got a living room, kitchen,

0:15:13 > 0:15:16loo on the ground floor, and upstairs,

0:15:16 > 0:15:19times two bedrooms and a bathroom.

0:15:19 > 0:15:21Now, the detached, I would say

0:15:21 > 0:15:23is more interesting because you've got a garage and games room,

0:15:23 > 0:15:25and a kitchen on the ground floor,

0:15:25 > 0:15:28and then upstairs, a large living room and bedroom

0:15:28 > 0:15:31with balcony that goes right the way round it.

0:15:31 > 0:15:34It's a big building to have only one bedroom.

0:15:34 > 0:15:36But due to the flood risk, well,

0:15:36 > 0:15:39you can't have any sleeping accommodation downstairs,

0:15:39 > 0:15:42and I'm sure the architect wanted to make the most of these views

0:15:42 > 0:15:44from the living space.

0:15:44 > 0:15:47It's a rather luxurious space, a bit indulgent,

0:15:47 > 0:15:49but all the more exciting for it.

0:15:51 > 0:15:54Since all the hard work assigning architects to negotiate

0:15:54 > 0:15:56with the local planning office is complete,

0:15:56 > 0:15:59the only thing left to do here was get building.

0:16:00 > 0:16:03But before jumping ahead and getting contractors in,

0:16:03 > 0:16:06it's a good idea to get a local estate agent to look at the plans

0:16:06 > 0:16:09and see if they would be right for the local market,

0:16:09 > 0:16:11which is exactly what we've done.

0:16:12 > 0:16:16Seafront-facing property as a whole in Herne Bay, there's a huge demand.

0:16:16 > 0:16:17Some people might not like the idea

0:16:17 > 0:16:19there's not actually any garden space.

0:16:19 > 0:16:22However, you've got the garden on your doorstep.

0:16:22 > 0:16:24You're not going to get any closer to the seafront for miles here.

0:16:24 > 0:16:27The plans... To be honest, they're the best they could be.

0:16:27 > 0:16:30It's such a small, compact plot, and I think the plans that have been passed

0:16:30 > 0:16:33is what's going to get the maximum profit out of it.

0:16:33 > 0:16:36And just what could that profit be for this plot,

0:16:36 > 0:16:39guided at 180,000-185,000?

0:16:42 > 0:16:44I'm of the opinion the semidetached cottages,

0:16:44 > 0:16:47always dependent on specification, you're going to be looking at

0:16:47 > 0:16:51figures between £230,000 and £250,000.

0:16:51 > 0:16:53For the detached property, at the moment, I'd suggest

0:16:53 > 0:16:55an asking price of £300,000.

0:16:55 > 0:16:58Whoa! So those top figures would mean all three properties

0:16:58 > 0:17:01could be worth 800,000.

0:17:01 > 0:17:06Looks like there's a TIDE-y profit in this one, for sure.

0:17:08 > 0:17:12This is an incredibly exciting opportunity.

0:17:12 > 0:17:15The designs are interesting, the location is fantastic,

0:17:15 > 0:17:18and the views... Well, they're just amazing!

0:17:18 > 0:17:22I'm sure there was plenty of interest in this one at the auction.

0:17:22 > 0:17:26A super site, this, with planning permission for the three dwellings.

0:17:26 > 0:17:29They're all going to have sea views at the front.

0:17:29 > 0:17:31Start me where you will. 170 to get me going.

0:17:31 > 0:17:33170. I'm on the way at 170.

0:17:33 > 0:17:35At the back, £170,000.

0:17:35 > 0:17:38There was definite interest in this plot of land,

0:17:38 > 0:17:41but it soon came down to two very keen bidders.

0:17:41 > 0:17:44We rejoin the bidding at 300,000.

0:17:44 > 0:17:46300 with you, madam. 302 to you.

0:17:46 > 0:17:48302. And four.

0:17:48 > 0:17:50That might be another wave of the hand.

0:17:50 > 0:17:52At 302 then to the gentleman sitting down.

0:17:52 > 0:17:56Otherwise, for the first time at £302,000, we'll go through it again.

0:17:56 > 0:17:58304, I've got.

0:17:58 > 0:18:01306.

0:18:01 > 0:18:04304 back to you, then, for the first time.

0:18:04 > 0:18:07£304,000 for the second time.

0:18:07 > 0:18:09Last chance if you want it.

0:18:09 > 0:18:11304 for the third and final time.

0:18:11 > 0:18:14- Well done.- The successful bid was made by Galia,

0:18:14 > 0:18:18who paid almost £120,000 more than the top guide price.

0:18:18 > 0:18:21# Seems like a touch

0:18:21 > 0:18:25# A touch too much... #

0:18:25 > 0:18:28Lucy met up with Galia to find out if she paid too much

0:18:28 > 0:18:30for the seaside plot.

0:18:30 > 0:18:32Galia, fantastic meeting you today.

0:18:32 > 0:18:34Thank you so much for coming along.

0:18:34 > 0:18:35But what an incredible site.

0:18:35 > 0:18:38Look how close the sea is!

0:18:38 > 0:18:40I know, it's my pleasure being here as well.

0:18:40 > 0:18:43Yeah, you can't get any closer to the sea than that. Yes.

0:18:43 > 0:18:48But you got a little bit carried away on auction day, didn't you?

0:18:48 > 0:18:52Yes, I did. I'm afraid things didn't go according to the plan.

0:18:52 > 0:18:55I've actually first approached the vendor prior to the auction.

0:18:55 > 0:18:59I made an offer of 175 and it was rejected

0:18:59 > 0:19:01because the vendor wanted to accept 195.

0:19:01 > 0:19:04When it came to bidding, I think the auctioneer was winding

0:19:04 > 0:19:07another very, very interested party

0:19:07 > 0:19:09first of all up to 250,

0:19:09 > 0:19:11and I thought that's where we're going to stop.

0:19:11 > 0:19:14But it went above that to 304.

0:19:14 > 0:19:18And I'm just sitting there thinking, "No, I can't. I can't lose it."

0:19:18 > 0:19:20"No, I can't, I can't... But I'm going to."

0:19:20 > 0:19:23- I'm going to.- And you paid. - And I paid that, yes.

0:19:23 > 0:19:25- You paid 304?- 304.

0:19:25 > 0:19:28And you were going to buy it for... You could have bought it for 195.

0:19:28 > 0:19:31- 195, yes.- So, what are you going to do with this site?

0:19:31 > 0:19:33Because there's planning permission for two semis

0:19:33 > 0:19:36and one detached house.

0:19:36 > 0:19:40- Yes.- Are you going to go with the plans that currently are there?

0:19:40 > 0:19:42Unfortunately not.

0:19:42 > 0:19:44I'm actually going to submit a planning permission

0:19:44 > 0:19:47to erect a detached property on the site,

0:19:47 > 0:19:50utilising all the potential space there,

0:19:50 > 0:19:54and actually run a retreat there.

0:19:54 > 0:19:58So, the permissions for three homes are out of the window, and Galia

0:19:58 > 0:20:02plans a base for her detox, fitness and weight loss retreat.

0:20:05 > 0:20:08Galia already has one such retreat in Sussex

0:20:08 > 0:20:12and hopes to expand her business by creating another here in Herne Bay.

0:20:14 > 0:20:16She will have her work cut out, though,

0:20:16 > 0:20:20especially as she will now have to go back to the planners and ask

0:20:20 > 0:20:24not just to change the design of any property but also its use.

0:20:25 > 0:20:30Considering Galia paid £120,000 more than the guide price

0:20:30 > 0:20:34for this plot, it's safe to say her strategy is bold.

0:20:35 > 0:20:38Do you think that you might have paid too much at auction, though?

0:20:38 > 0:20:40How are you going to make your money back?

0:20:40 > 0:20:42Well, I think I did,

0:20:42 > 0:20:46but what value can you put on that?

0:20:46 > 0:20:48- Absolutely.- To me, that is priceless.

0:20:48 > 0:20:50So, it's interesting. You're looking at building something

0:20:50 > 0:20:53that's detached. What sort of budget have you got in mind?

0:20:53 > 0:20:56Well, it's difficult to say. It's like the auction.

0:20:56 > 0:21:00I was planning to spend 175 and I spent 304.

0:21:00 > 0:21:04I am very much hoping to spend 250,

0:21:04 > 0:21:07and if I'm further allowed to maybe excavate the basement area

0:21:07 > 0:21:09for a little gym or maybe go to the second floor,

0:21:09 > 0:21:12then certainly not more than 350.

0:21:12 > 0:21:14But it's wishful thinking, of course.

0:21:14 > 0:21:16Galia, you are a loose cannon.

0:21:16 > 0:21:18And that's why people want to join my retreats.

0:21:18 > 0:21:21They're going to follow me and they're going to be at the same helm

0:21:21 > 0:21:24as I am. And I'm going to probably call this place not a boot camp

0:21:24 > 0:21:28but a boat camp because I'm going to probably build it

0:21:28 > 0:21:30in the shape of a boat.

0:21:30 > 0:21:33- I mean, wow!- Do you think Herne Bay are ready for such a retreat?

0:21:33 > 0:21:34I think they are. First of all,

0:21:34 > 0:21:37they're so close to Whitstable, where things are already happening.

0:21:37 > 0:21:41Secondly, they're so close to London with its unique transport links

0:21:41 > 0:21:44and, you see, a lot of my clients are international travellers.

0:21:44 > 0:21:47So, for them it's just going to be really beautiful to visit

0:21:47 > 0:21:49an English seaside resort,

0:21:49 > 0:21:53and actually bring a little bit of prosperity to the area

0:21:53 > 0:21:57and rejuvenate this area a little bit,

0:21:57 > 0:21:59because it's definitely underestimated.

0:21:59 > 0:22:02And playing her part in the rejuvenation plan,

0:22:02 > 0:22:05Galia had previously bought another property

0:22:05 > 0:22:08a few hundred yards down the beach.

0:22:08 > 0:22:11She felt that this Victorian toilet block could be converted

0:22:11 > 0:22:14into a gym for use by retreat clients,

0:22:14 > 0:22:17but Lucy, rightly, was being pragmatic.

0:22:18 > 0:22:20What if you don't get permission?

0:22:20 > 0:22:24I hate to break it to you. Do you have a plan B?

0:22:24 > 0:22:27If I don't get the permission the plan B is actually

0:22:27 > 0:22:30going to make money, build the cottages and flog them.

0:22:30 > 0:22:32I'm going to make money this way or the other.

0:22:32 > 0:22:35I would prefer to run a retreat so I can benefit

0:22:35 > 0:22:37and enjoy these beautiful walks myself.

0:22:37 > 0:22:41How long do you think it's going to take you to get what you want?

0:22:41 > 0:22:45OK, well, with planning permissions, obviously it's outside my control.

0:22:45 > 0:22:47I'm certainly hoping a year.

0:22:47 > 0:22:49So, you've got a year in mind...

0:22:49 > 0:22:51- Yeah.- ..to get this place up and running.

0:22:51 > 0:22:54It's been lovely meeting you today. Good luck with this whole project.

0:22:54 > 0:22:56The pleasure is mine. Thank you.

0:22:56 > 0:23:01Galia paid so much for that site, but she really wanted it,

0:23:01 > 0:23:04and sometimes, well, the heart overrules the head.

0:23:04 > 0:23:08But will her business plan come to fruition?

0:23:08 > 0:23:11You can find out what happens later on in the programme.

0:23:12 > 0:23:15Coming up, shrubbery surprises in the first-floor flat

0:23:15 > 0:23:17in leafy Edmonton.

0:23:17 > 0:23:19It's got this lovely little terraced area,

0:23:19 > 0:23:22and then it comes with its very own jungle.

0:23:23 > 0:23:27And in Herne Bay, Galia's retreat plans are delayed

0:23:27 > 0:23:29due to an unexpected purchase.

0:23:29 > 0:23:32So, I absolutely had to go and buy that forest.

0:23:36 > 0:23:40Back now to half a mile from bonny Donny town centre.

0:23:40 > 0:23:42That's Doncaster to you and me, South Yorkshire,

0:23:42 > 0:23:45where I saw this three-bedroom semi.

0:23:45 > 0:23:48The kitchen, you just need a new kitchen in.

0:23:48 > 0:23:50Not much light coming in.

0:23:50 > 0:23:52You could maximise light, maybe getting a different door,

0:23:52 > 0:23:55more glass, but pretty small point.

0:23:57 > 0:24:00It was bought by Adam, for 65 grand.

0:24:00 > 0:24:02He didn't mind the busy road it fronted onto.

0:24:02 > 0:24:06I met him and his girlfriend Emma back at the property.

0:24:06 > 0:24:08I have had a look round, I can't see any damp.

0:24:08 > 0:24:11It's looking good. It just needs a simple jobs doing, really.

0:24:11 > 0:24:16But somebody's started this and then walked away. Why?

0:24:16 > 0:24:19You're scared that they discovered something and ran for the hills?

0:24:19 > 0:24:21Yeah. Any time now, any day, I'm going to pull off a piece of carpet,

0:24:21 > 0:24:25pull off a piece of wallpaper and I'm going to find a surprise.

0:24:25 > 0:24:29It was certainly puzzling, and a job not even half done.

0:24:29 > 0:24:31Adam wasn't sure if he would sell or rent.

0:24:31 > 0:24:34Either way, he thought three months would crack it,

0:24:34 > 0:24:37and spend between 15-20 grand on it.

0:24:37 > 0:24:41I wondered how their fairly new relationship would stand up.

0:24:41 > 0:24:44You're going to be working together on this project,

0:24:44 > 0:24:45so how do you get on?

0:24:45 > 0:24:47He can be quite... You can be quite bossy.

0:24:47 > 0:24:49- Mm-hm.- And I don't like being told what to do.

0:24:49 > 0:24:52- Yeah.- It is like two bulls.

0:24:57 > 0:25:00We're back nearly five and a half months later

0:25:00 > 0:25:02to see how the bullfight went.

0:25:02 > 0:25:04There's been a fair bit of replastering,

0:25:04 > 0:25:07redecorating and removing of old doors.

0:25:07 > 0:25:09There's new central heating.

0:25:09 > 0:25:13But apart from one window, which we'll get to, they're all original.

0:25:16 > 0:25:19There's a new consumer unit and storage space,

0:25:19 > 0:25:22and I'm glad to see a hand basin in the downstairs loo.

0:25:23 > 0:25:26So far, worth a round of applause.

0:25:26 > 0:25:29# Boom! Clap! The sound of my heart

0:25:29 > 0:25:32# The beat goes on and on and on and on and... #

0:25:32 > 0:25:35There's a kitchen now, and it's smart.

0:25:35 > 0:25:37OK, cue the magic door trick.

0:25:37 > 0:25:39# Boom! Clap! The sound of my heart

0:25:39 > 0:25:43# The beat goes on and on and on and on and... #

0:25:43 > 0:25:46Upstairs now, and I for one can't wait to see

0:25:46 > 0:25:48the changes to the bathroom.

0:25:50 > 0:25:53# No silver or no gold

0:25:53 > 0:25:55# Could dress me up so good

0:25:55 > 0:25:58# You're the glitter in the darkness of my world... #

0:26:03 > 0:26:06There was a lot of remedial plasterwork needed here,

0:26:06 > 0:26:10especially by the sink and toilet, but it's definitely modern now.

0:26:13 > 0:26:15Over to the largest bedroom,

0:26:15 > 0:26:17where the neutral colour scheme continues.

0:26:19 > 0:26:21Time for another magic door.

0:26:26 > 0:26:29# Boom! Clap! You make me feel good

0:26:29 > 0:26:32# Come on to me Come on to me now... #

0:26:35 > 0:26:37The bedrooms, including the smallest,

0:26:37 > 0:26:40are much calmer, and if you thought I'd forgotten to point out

0:26:40 > 0:26:43the new window, here it is.

0:26:43 > 0:26:45Adam's care goes beyond the interior.

0:26:45 > 0:26:49He's shown his love outside, too.

0:26:49 > 0:26:52# You keep burning me up with all your love, oh

0:26:52 > 0:26:55# Boom! Clap! The sound of my heart

0:26:55 > 0:26:58# The beat goes on and on and on and on and... #

0:26:58 > 0:27:00Guess the most difficult job?

0:27:00 > 0:27:03My money's on the plastering.

0:27:03 > 0:27:05Erm... Well, no, somebody else did the plastering,

0:27:05 > 0:27:08so it wasn't difficult - for me, anyway.

0:27:08 > 0:27:11The painting of inside and outside,

0:27:11 > 0:27:14that was most time-consuming, boring and...

0:27:14 > 0:27:17Yeah, it was just so boring.

0:27:17 > 0:27:19And so much paint. Wow.

0:27:21 > 0:27:23Adam and Emma had only been going out for six months

0:27:23 > 0:27:24on our first visit.

0:27:24 > 0:27:28She described working with Adam as being like two bulls.

0:27:28 > 0:27:31So, did this turn into a china shop?

0:27:31 > 0:27:33And is that why Emma's not here?

0:27:33 > 0:27:36Right, so...

0:27:36 > 0:27:38HE LAUGHS

0:27:38 > 0:27:42Inside, we started wallpaper stripping, me and Emma.

0:27:42 > 0:27:46She is not here with me today but she is still, you know,

0:27:46 > 0:27:47giving the free labour.

0:27:47 > 0:27:49- Hooray!- Just thereabouts.

0:27:49 > 0:27:52She started off wallpaper stripping and I think she got bored,

0:27:52 > 0:27:56so she sort of left it alone a little bit and left me to do

0:27:56 > 0:27:58all but one bedroom.

0:27:58 > 0:28:01The bedroom Emma did tackle was the smallest one,

0:28:01 > 0:28:03but they also found there was woodworm,

0:28:03 > 0:28:06and getting the right-size replacement floorboards

0:28:06 > 0:28:09was a problem, so...

0:28:09 > 0:28:11I got woodworm killer,

0:28:11 > 0:28:14spent about £50 on the stuff and absolutely lathered the floor in it.

0:28:14 > 0:28:18And, touch wood, we've had no problems since.

0:28:18 > 0:28:21The previous owners had already started work on the property

0:28:21 > 0:28:23and then left it.

0:28:23 > 0:28:26So, were there any other hidden nasty surprises?

0:28:26 > 0:28:30I did have a word with my solicitor, or they contacted me, actually,

0:28:30 > 0:28:33and said, "Did you know it was bought less than a month ago?

0:28:33 > 0:28:35"Does this worry you? I think you're going to find a surprise."

0:28:35 > 0:28:39But, you know, again, my fingers were tight as a knot on a boat,

0:28:39 > 0:28:42and I did not find any surprises. Thank God.

0:28:42 > 0:28:45And this is it. Yeah, so far so good.

0:28:46 > 0:28:51Motor trader Adam discovered a cheaper alternative to skip hire.

0:28:51 > 0:28:54He bought a car in part exchange for £100

0:28:54 > 0:28:56without back seats.

0:28:56 > 0:29:00It must have saved me £500 worth in skips.

0:29:00 > 0:29:01And, yeah, it's still going today.

0:29:01 > 0:29:04It's been going for the last five months. It's brilliant.

0:29:04 > 0:29:08You've said it. Five months - that's two months

0:29:08 > 0:29:11off the original timescale. How was that?

0:29:11 > 0:29:13I completely blame the tradies.

0:29:13 > 0:29:15I've had people in, do a job,

0:29:15 > 0:29:17and they've done it wrong and I've had to get somebody else.

0:29:17 > 0:29:20But the good ones are obviously booked in for a few weeks

0:29:20 > 0:29:22and the not-so-good ones can come tomorrow, you know,

0:29:22 > 0:29:25the next day, and they're no good for me. I want the best.

0:29:25 > 0:29:30And was the 15-20 grand budget as tight as knot on a boat?

0:29:30 > 0:29:32How much did you spend?

0:29:32 > 0:29:3417 and a half, roughly.

0:29:34 > 0:29:36So, I've got a little bit of change.

0:29:37 > 0:29:41It's that time again where we invite two local estate agents along

0:29:41 > 0:29:44to see if Adam's 65-grand purchase

0:29:44 > 0:29:48and £17,500 refurbishment has been worth it.

0:29:48 > 0:29:51First up, the agent we met at first filming.

0:29:51 > 0:29:54What's the 82,5000 spend worth now?

0:29:54 > 0:29:56I would expect the property to fetch somewhere between

0:29:56 > 0:30:00£100,000 and £110,000.

0:30:00 > 0:30:02On the rental market, I would expect somewhere between

0:30:02 > 0:30:06£500 and £525 per calendar month.

0:30:06 > 0:30:09The second agent also valued it at 110 grand for sale

0:30:09 > 0:30:12but he differed on the rental value.

0:30:12 > 0:30:16£525 to £550 per calendar month.

0:30:16 > 0:30:19Adam thought he would rent this,

0:30:19 > 0:30:23but could be tempted if there was enough profit on the resale market.

0:30:23 > 0:30:28So, does a potential pre-tax profit of £27,500 do it for him?

0:30:28 > 0:30:31Well, the figures do not make me want to sell it.

0:30:31 > 0:30:34I think too much time and effort's gone into it.

0:30:34 > 0:30:37I would push for at least 120,000.

0:30:37 > 0:30:39And the rental at 550 a month?

0:30:39 > 0:30:41I'm going to push for 600.

0:30:41 > 0:30:43If I struggle... Give it a month or so,

0:30:43 > 0:30:46if I struggle I'll take 550, yeah.

0:30:46 > 0:30:50Well, even at £550, with an 82,500 spend,

0:30:50 > 0:30:54it comes out at around 8% annual yield.

0:30:54 > 0:30:56Anything still on the to-do list?

0:30:56 > 0:30:59In current talks at the minute with a solicitor

0:30:59 > 0:31:03knocking up the tenant agreement and things like that. That's it.

0:31:10 > 0:31:12Edmonton in the Borough of Enfield is an area

0:31:12 > 0:31:15that's undergone a lot of changes over the years.

0:31:15 > 0:31:18# It meant a lot to the locals on

0:31:18 > 0:31:22# Edmonton Green... #

0:31:25 > 0:31:27The Edmonton Green part of the area

0:31:27 > 0:31:30is currently the subject of a £100 million development,

0:31:30 > 0:31:32so it's certainly a place on the up.

0:31:34 > 0:31:37Well, I'm at the northern end of Edmonton,

0:31:37 > 0:31:40here to see a three-roomed flat,

0:31:40 > 0:31:46which had a guide price of £100,000 plus.

0:31:46 > 0:31:48Sounds reasonable.

0:31:48 > 0:31:50Probably be a catch. Usually is.

0:31:50 > 0:31:55# Always look on the bright side of life... #

0:31:55 > 0:31:58Don't be such a pessimist, I hear you cry.

0:31:58 > 0:32:00But come on, there has to be a catch.

0:32:01 > 0:32:04Through your own little entrance and up your stairs.

0:32:04 > 0:32:06Notice that the loft hatch is open here

0:32:06 > 0:32:07and the loft looks quite reasonable.

0:32:07 > 0:32:11So, one of the things you might consider doing is extending upwards.

0:32:11 > 0:32:13Create a dormer bedroom up there.

0:32:13 > 0:32:16The problem is that this is a leasehold flat,

0:32:16 > 0:32:18so before you do anything substantial like that

0:32:18 > 0:32:21you need to get the approval of the freeholder.

0:32:21 > 0:32:26It might be possible to convert it into a liveable space.

0:32:26 > 0:32:29As always, speak to planning and the freeholder

0:32:29 > 0:32:30before getting too excited.

0:32:30 > 0:32:32If you could, though,

0:32:32 > 0:32:36it would really increase the floor space and the value of this flat.

0:32:36 > 0:32:39# We'll sit up there

0:32:40 > 0:32:43# And watch the world go by

0:32:43 > 0:32:45# The world go by

0:32:45 > 0:32:48# When we find

0:32:48 > 0:32:54# That long-lost gold mine in the sky... #

0:32:54 > 0:32:58As I said earlier, this is described as a three-roomed flat

0:32:58 > 0:33:00and this, at present, is an office.

0:33:00 > 0:33:03Maybe the catch is it's not big enough

0:33:03 > 0:33:06to be classified as a single bedroom.

0:33:06 > 0:33:08This is the bigger of the bedrooms.

0:33:08 > 0:33:11Nice bit of, oh, yes, OK, Egyptian artwork on the walls.

0:33:11 > 0:33:14It's not bad. I mean, whole place is a bit tired and dated.

0:33:14 > 0:33:16Looks like the electrics could do with updating.

0:33:16 > 0:33:20You've got surface-mounted sockets there and wires all over the place.

0:33:20 > 0:33:24It doesn't look to have central heating. Single-glazed windows.

0:33:24 > 0:33:28So, obviously a major process of refurbishment required.

0:33:28 > 0:33:31But it's not bad. It's got a good feel to it.

0:33:33 > 0:33:36Although the presence of storage heaters

0:33:36 > 0:33:38suggests there might not be gas, either

0:33:38 > 0:33:41and that could mean another call with the freeholder

0:33:41 > 0:33:44for permission and a fair amount of cost as well.

0:33:46 > 0:33:48Your bathroom there definitely needs refurbishment.

0:33:48 > 0:33:50And then through into this room,

0:33:50 > 0:33:52which is your main living accommodation.

0:33:52 > 0:33:54It's actually a really nice-sized space, this,

0:33:54 > 0:33:57especially as you come through this way through to your kitchen.

0:33:57 > 0:33:59Clearly seen better days

0:33:59 > 0:34:01but I like the location.

0:34:01 > 0:34:04Probably stick a few more windows in here

0:34:04 > 0:34:07but, apart from that, I think it practically works very well,

0:34:07 > 0:34:09especially as through that back door there,

0:34:09 > 0:34:11out onto a little terrace.

0:34:11 > 0:34:15So, all in all, you know, for that 100 grand plus guide price,

0:34:15 > 0:34:17a lot of flat for the money.

0:34:17 > 0:34:19There's even a fantastic bonus outside.

0:34:19 > 0:34:26Well, outdoor space in London flats, especially, is always a lovely thing

0:34:26 > 0:34:29to have, and obviously it brings a real premium to the property.

0:34:29 > 0:34:30So, what's this one got?

0:34:30 > 0:34:33Well, it's got this little terraced area

0:34:33 > 0:34:35and then it comes with its very own jungle,

0:34:35 > 0:34:38because everything you can see there that's green

0:34:38 > 0:34:40is actually part of the garden.

0:34:40 > 0:34:42Your own little stairway at the back here, which leads down to that,

0:34:42 > 0:34:45so get somebody in and get it sorted.

0:34:45 > 0:34:47The thing which you don't normally have in flats,

0:34:47 > 0:34:50that bit of outside space, you've got it, so a real big bonus.

0:34:50 > 0:34:52OK, so it all needs a bit of work

0:34:52 > 0:34:55and you'd need a machete to access the outside space.

0:34:55 > 0:34:59# It's a jungle out there! #

0:34:59 > 0:35:02But it's got a fairly doable interior,

0:35:02 > 0:35:05potential for expansion upwards,

0:35:05 > 0:35:07and a guide price of 100,000.

0:35:07 > 0:35:09Of course, there must be a catch.

0:35:09 > 0:35:11But wait for it, first, before we go there,

0:35:11 > 0:35:14time to knock a bit of interior design.

0:35:16 > 0:35:19Two final things that are a bit of a concern with this flat, however.

0:35:19 > 0:35:21At the top of the stairs, glass.

0:35:21 > 0:35:23Now, that is not safety glass.

0:35:23 > 0:35:26It's a potential disaster waiting to happen.

0:35:26 > 0:35:30So, replace that as soon as you move in here with safety glass,

0:35:30 > 0:35:32or just something else. It just doesn't work.

0:35:32 > 0:35:35The second thing is something which is in the legal pack

0:35:35 > 0:35:38but you have to make sure that you read it,

0:35:38 > 0:35:42and that is that this place has got a 42-year lease remaining.

0:35:42 > 0:35:45Now, for a lot of mortgage providers that isn't long enough

0:35:45 > 0:35:47so you'd have to renegotiate that lease

0:35:47 > 0:35:50before you were able to get a mortgage,

0:35:50 > 0:35:52which means it's either a cash buyer,

0:35:52 > 0:35:55or somebody who is willing to do a very quick deal with the freeholder.

0:35:58 > 0:36:00Time to get the lowdown from a local property expert.

0:36:00 > 0:36:03First of all, the high point of this flat,

0:36:03 > 0:36:06is it the right idea to build a dormer in the loft?

0:36:08 > 0:36:10I don't think extending into the loft

0:36:10 > 0:36:12is really something that's going to be allowed

0:36:12 > 0:36:14from a planning perspective,

0:36:14 > 0:36:18although it would create extra space if it was done.

0:36:18 > 0:36:20I think the property needs, obviously, a complete refurb.

0:36:20 > 0:36:23New kitchen, new bathroom, double glazing, central heating,

0:36:23 > 0:36:24electrics checked.

0:36:24 > 0:36:29The cost of bringing it up to top standard's

0:36:29 > 0:36:32going to be about £15,000.

0:36:32 > 0:36:34OK, and what about the cost of extending the lease?

0:36:35 > 0:36:37To extend the lease of 42 years

0:36:37 > 0:36:40is going to cost something around £80,000.

0:36:40 > 0:36:43And what could it fetch for sales and lettings?

0:36:44 > 0:36:48The resale value would be £280,000 and the rental value

0:36:48 > 0:36:50will be £1,300 per calendar month.

0:36:53 > 0:36:54Well, it's a nice little flat

0:36:54 > 0:36:58that just needs a good programme of rejuvenation to sort it out.

0:36:58 > 0:37:01Oh, and a big lot of cutting down trees in the garden.

0:37:01 > 0:37:03However, the biggest issue with this one is, of course,

0:37:03 > 0:37:06that short 42-year lease.

0:37:06 > 0:37:10It would have been in the legal pack but if you hadn't read it, blimey,

0:37:10 > 0:37:12it could really catch you out.

0:37:12 > 0:37:15Let's see what happened when it went under the hammer.

0:37:15 > 0:37:19Lot 58B is Edmonton, good area to invest in.

0:37:19 > 0:37:22So, kick off at 90 on this one.

0:37:23 > 0:37:2590,000 in the front.

0:37:25 > 0:37:2795 with you.

0:37:27 > 0:37:28100?

0:37:28 > 0:37:32Plenty of interest here. We rejoin the bidding at 160,000.

0:37:32 > 0:37:33160?

0:37:35 > 0:37:37155 standing up. 160 on the phone.

0:37:37 > 0:37:41157. 159,

0:37:41 > 0:37:42in the room.

0:37:42 > 0:37:43161.

0:37:43 > 0:37:46163. 165.

0:37:47 > 0:37:49167?

0:37:49 > 0:37:52Another go? 165, sitting down.

0:37:52 > 0:37:55First time, second time, third and last time.

0:37:55 > 0:37:59If you're all done, sold. 165.

0:37:59 > 0:38:05Paying 65 grand over the guide price were Rohema and her husband Mujibah.

0:38:05 > 0:38:07They've both appeared on the show before

0:38:07 > 0:38:11when they made their first auction purchase in East Ham.

0:38:11 > 0:38:13Then they told Lucy what got them started.

0:38:14 > 0:38:17Did you think you would get this flat on the day?

0:38:17 > 0:38:18Didn't think that we would get it.

0:38:18 > 0:38:21So what happened? How did you end up walking away with the flat?

0:38:21 > 0:38:24I think it's your programme inspired us and we raised a hand

0:38:24 > 0:38:25and we started.

0:38:27 > 0:38:29Things have moved on since then,

0:38:29 > 0:38:32as Mujibah has gone full-time at property development,

0:38:32 > 0:38:34using his skills as a builder.

0:38:34 > 0:38:36Mujibah, Rohema, lovely to meet you both.

0:38:36 > 0:38:38Tell me why you wanted to buy this flat.

0:38:38 > 0:38:42Because of location and the renting in this area is very good.

0:38:42 > 0:38:44You know the area quite well, do you?

0:38:44 > 0:38:45Yes, yes, we do.

0:38:45 > 0:38:47We did our research, yeah.

0:38:47 > 0:38:50So, when you're looking for houses to buy, what do you look for?

0:38:50 > 0:38:53We look for something doing renovation

0:38:53 > 0:38:57because I'm very interested to do with renovating and everything,

0:38:57 > 0:39:01- because I enjoy myself doing this. - You personally?- Yes.- Oh, wow.

0:39:01 > 0:39:02What else do you look for?

0:39:02 > 0:39:04I look for the rental income,

0:39:04 > 0:39:06location where we can make more profit.

0:39:06 > 0:39:09So what was it, then, you liked about this house?

0:39:09 > 0:39:12This house, actually, we didn't see before.

0:39:12 > 0:39:13- Oh, really?- Yeah.

0:39:13 > 0:39:15So, you haven't seen the flat before you bought it?

0:39:15 > 0:39:18- No. No.- When we went to auction we went for a different property.

0:39:18 > 0:39:23- Oh.- And unfortunately that property price wasn't matching our budget,

0:39:23 > 0:39:25so we actually dropped it

0:39:25 > 0:39:29and we just quickly thought we'll go for something else.

0:39:29 > 0:39:33They may be fans of the show but they've broken a golden rule,

0:39:33 > 0:39:36since they didn't view before buying.

0:39:36 > 0:39:38I'm hopeful they did, at least, read the legal pack.

0:39:40 > 0:39:44- We read...- The legal pack. - ..the legal pack.

0:39:44 > 0:39:46Quickly on the day.

0:39:46 > 0:39:49We searched the area's prices of the houses

0:39:49 > 0:39:53and we just thought it would give us a good profit, so let's go for it.

0:39:53 > 0:39:56So, tell me what you're going to do with it.

0:39:56 > 0:39:57It's basically everything

0:39:57 > 0:39:59I have to do because there is no gas.

0:39:59 > 0:40:03There is just a box outside, so then no gas connected to the house,

0:40:03 > 0:40:08so I'm need to get the gas boiler again.

0:40:08 > 0:40:10No central heating, no nothing in here.

0:40:10 > 0:40:13So, I have to do the central heating and the double glazing,

0:40:13 > 0:40:17replastering, take the ceiling down, and everything,

0:40:17 > 0:40:20new bathroom, kitchen. Complete refurbish. I have to do.

0:40:20 > 0:40:23And the garden, obviously, is junk.

0:40:23 > 0:40:25- Yes!- I have to clean this mess.

0:40:25 > 0:40:28How are you going to get rid of all that stuff in the garden?

0:40:28 > 0:40:31We already contacted the gardeners

0:40:31 > 0:40:35- and they're going to come and clear it for us.- Are they? Wow.

0:40:35 > 0:40:38So, what about internal layout? Any plans for the internal layout?

0:40:38 > 0:40:41We might do the loft conversion.

0:40:41 > 0:40:44- OK.- So, we already started speaking with the freeholder

0:40:44 > 0:40:47and, kind of, getting agreement to do the loft.

0:40:47 > 0:40:50So, we might extend another two beds upstairs.

0:40:50 > 0:40:52Two beds upstairs, OK.

0:40:52 > 0:40:55Just by putting dormers in, or something like that?

0:40:55 > 0:40:58- Yeah, yeah.- Yeah. - We have to put a dormer in.

0:40:58 > 0:41:00The freeholder already agreed,

0:41:00 > 0:41:03but main concern about the council.

0:41:03 > 0:41:06We have to apply the planning permission,

0:41:06 > 0:41:09so, if council allow us, we will do it in the future.

0:41:09 > 0:41:11Sometimes the freeholder will charge you for that.

0:41:11 > 0:41:13- Yes.- Yeah.- Are they charging?

0:41:13 > 0:41:17- They are charging.- Did they say how much?- They will charge 10,000 for..

0:41:17 > 0:41:19Getting the permission, yeah.

0:41:19 > 0:41:20To allow you to do that?

0:41:20 > 0:41:23- Yeah.- Yeah.- Presumably because it's adding value to the house.

0:41:23 > 0:41:27- Yes.- Yeah.- If you sell the leasehold in the future, then you benefit.

0:41:27 > 0:41:29Yeah, 10,000 is reasonable.

0:41:29 > 0:41:31Yeah, well, it sounds OK.

0:41:31 > 0:41:33What about the cost of doing that conversion?

0:41:33 > 0:41:36- Any idea what that's going to cost? - Most of the work I do myself,

0:41:36 > 0:41:40so within 35,000 I can do the loft conversion.

0:41:41 > 0:41:44They have a budget of 25,000 to 30,000 for the rest of the flat.

0:41:44 > 0:41:48And think three to four months will have it ready to rent

0:41:48 > 0:41:51with Mujibah doing most of the work.

0:41:51 > 0:41:53Since they've had a chat with the freeholder,

0:41:53 > 0:41:56I hope the subject of the short lease came up.

0:41:58 > 0:42:01We saw in the legal pack this lease is very short.

0:42:01 > 0:42:04- Yeah.- So, I have to do the lease extension, as well, for selling

0:42:04 > 0:42:06but I'm not thinking to sell it now

0:42:06 > 0:42:08because rental income is a very good return,

0:42:08 > 0:42:11- so I'll keep it.- Are you going to extend the lease at all, or not?

0:42:11 > 0:42:12I will, I will later.

0:42:12 > 0:42:16- Do you know how much it's going to cost to extend the lease? - 25,000 to 30,000.

0:42:16 > 0:42:18Right, OK. But that would put

0:42:18 > 0:42:20- a 99-year lease on this?- No, 125 years.

0:42:20 > 0:42:23Oh, would it be? OK. What's your involvement at this stage?

0:42:23 > 0:42:28Just doing, you know, helping them, the team, choosing the materials,

0:42:28 > 0:42:32colours, decorating, painting, and sometimes making the tea for them.

0:42:32 > 0:42:34- Yeah.- Moral support, as well.

0:42:34 > 0:42:36That's good. Well, listen, congratulations.

0:42:36 > 0:42:37Good luck with it.

0:42:37 > 0:42:40- Thank you.- Look forward to seeing how you get on.

0:42:40 > 0:42:41Thank you very much. Thank you.

0:42:41 > 0:42:46Well, nothing seems to faze our property developing couple.

0:42:46 > 0:42:48How will they get on?

0:42:48 > 0:42:51Lots of discussions to be had with the freeholder.

0:42:51 > 0:42:54It seems like those have been reasonably successful, though,

0:42:54 > 0:42:57so that is good news because it was one of my big worries.

0:42:57 > 0:42:59How will everything turn out?

0:42:59 > 0:43:01You can find out later in the show.

0:43:05 > 0:43:07So, we've seen the outcome for one of today's properties.

0:43:07 > 0:43:09What about the other two?

0:43:09 > 0:43:11Yes, have our buyers been ringing the changes,

0:43:11 > 0:43:13or is it a case of same old, same old?

0:43:17 > 0:43:21Time to return now to the seaside town of Herne Bay on the Kent coast

0:43:21 > 0:43:24where Lucy earlier saw this plot of land

0:43:24 > 0:43:27with planning permission for two semidetached houses

0:43:27 > 0:43:29and one fully detached one.

0:43:29 > 0:43:30# Beach baby, beach baby... #

0:43:30 > 0:43:35Whatever you build here will have that as a view.

0:43:35 > 0:43:40- Gorgeous!- The plot was bought by Galia for 304 grand,

0:43:40 > 0:43:44£119,000 over the guide price.

0:43:44 > 0:43:47But Galia was hoping to change the planning.

0:43:47 > 0:43:50I'm actually going to submit the planning permission

0:43:50 > 0:43:53to erect a detached property on the site,

0:43:53 > 0:43:56utilising all the potential space there.

0:43:56 > 0:43:59And, actually, run a retreat there.

0:43:59 > 0:44:04Galia already had a detox, weight loss, and fitness retreat in Sussex

0:44:04 > 0:44:06and she felt the up-and-coming Herne Bay area

0:44:06 > 0:44:09would be an attractive addition to the business.

0:44:09 > 0:44:12But she would require change of use

0:44:12 > 0:44:14from residential to commercial

0:44:14 > 0:44:17and Galia had also bought a former Victorian toilet block

0:44:17 > 0:44:19further down the beach,

0:44:19 > 0:44:21hoping to add a facility like a gymnasium

0:44:21 > 0:44:23to the planned retreat mix.

0:44:23 > 0:44:26Everything was dependent on planning.

0:44:26 > 0:44:28How many storeys could the retreat have

0:44:28 > 0:44:30and could a basement be allowed?

0:44:30 > 0:44:33She knew one thing, she would like a grand nautical facade.

0:44:35 > 0:44:38And I'm going to probably call this place, not a boot camp,

0:44:38 > 0:44:40but a boat camp

0:44:40 > 0:44:43because I'm going to probably build it in the shape of the boat.

0:44:43 > 0:44:47Galia thought the small retreat would be completed in a year.

0:44:51 > 0:44:54Well, we're back just over four years later.

0:44:54 > 0:44:57There are a few boats camped there

0:44:57 > 0:45:00but not exactly what Galia had in mind.

0:45:03 > 0:45:05The first planning application failed

0:45:05 > 0:45:09but eventually Galia has obtained permission for a smaller building

0:45:09 > 0:45:12more sympathetic in design to the other properties

0:45:12 > 0:45:15on the seafront, including her own toilet block.

0:45:17 > 0:45:19And, of course, the icing on the cake

0:45:19 > 0:45:24is the close proximity of this plot to the Victorian toilet,

0:45:24 > 0:45:25the white building over there.

0:45:25 > 0:45:28We're going to integrate both of them.

0:45:28 > 0:45:32I can use the same staff working in both locations,

0:45:32 > 0:45:33it's easy to reach,

0:45:33 > 0:45:36and both of them facing this beautiful, sort of, set-up.

0:45:36 > 0:45:39In between the failed planning permission application

0:45:39 > 0:45:42and the current ones that have passed,

0:45:42 > 0:45:44Galia continued to grow the business

0:45:44 > 0:45:47by creating a 15-bedroom retreat in Devon.

0:45:48 > 0:45:52The minute I exchanged the contract on the Devon retreat,

0:45:52 > 0:45:55on the very same day, the council granted me the permission

0:45:55 > 0:45:59for the plot of land to convert it to the retreat,

0:45:59 > 0:46:01and you think, "Oh, my God, you've got two retreats."

0:46:01 > 0:46:04"You've got that one and you've got that one, what are you going to do?"

0:46:04 > 0:46:09So, yeah, I thought, OK, 15-bedroom here, seven-bedroom here,

0:46:09 > 0:46:13let's do the 15-bedroom first, fill that in with the guests,

0:46:13 > 0:46:15get the money, go back to seven bedrooms.

0:46:15 > 0:46:19Galia had further delays due to a forest coming up for sale

0:46:19 > 0:46:21opposite her main Sussex retreat.

0:46:21 > 0:46:26So, I absolutely had to go and buy that forest and...

0:46:26 > 0:46:27..and it still stays as a forest,

0:46:27 > 0:46:32so we made some paths there and my guests just walk in the forest.

0:46:34 > 0:46:36Having dealt with those distractions,

0:46:36 > 0:46:40what are the plans going forward here in Herne Bay?

0:46:40 > 0:46:44I'm very much hoping to start the building project

0:46:44 > 0:46:47on the plot in about six months' time.

0:46:47 > 0:46:51And it's quite exciting to now work out on the minor details,

0:46:51 > 0:46:56like the nautical theme of the retreat, lovely little features,

0:46:56 > 0:46:58colour of the curtains,

0:46:58 > 0:47:02maybe bunk beds to make it look like it's a ship inside,

0:47:02 > 0:47:05so that, you know, you feel quite excited.

0:47:05 > 0:47:07You see the water outside

0:47:07 > 0:47:12and, inside, you feel you're on the ship sailing into unknown.

0:47:12 > 0:47:15Was it a case of sailing into the unknown

0:47:15 > 0:47:19with a £250,000 to £350,000 budget forecast?

0:47:19 > 0:47:24So far I've spent about £15,000 on architects

0:47:24 > 0:47:27and various other fees to obtain those permissions,

0:47:27 > 0:47:33and I anticipate to spend another £200,000.

0:47:33 > 0:47:36Galia spent 304,000 at auction

0:47:36 > 0:47:39and has spent another 15 on plans for the retreat.

0:47:39 > 0:47:41We called in a local estate agent

0:47:41 > 0:47:44for his specialist knowledge of the area and the plot.

0:47:44 > 0:47:46What's his view?

0:47:47 > 0:47:49It's so unique and I can't think of anything else, really,

0:47:49 > 0:47:53on the Kent coast that it compares with,

0:47:53 > 0:47:55particularly the scale of the building.

0:47:55 > 0:47:57If you're talking about a larger building

0:47:57 > 0:47:59and larger premises there are probably

0:47:59 > 0:48:00ones that would compete with it,

0:48:00 > 0:48:03but it is quite unique, in terms of its scale.

0:48:03 > 0:48:05I think, if I was the investor,

0:48:05 > 0:48:07I'd probably stick to the safer option

0:48:07 > 0:48:11of selling it as residential, rather than the commercial.

0:48:11 > 0:48:12I think there's a bigger market

0:48:12 > 0:48:14and the returns would probably be higher.

0:48:14 > 0:48:17Has the £319,000 total investment

0:48:17 > 0:48:19grown over the time since the plot was purchased?

0:48:19 > 0:48:22If I was trying to sell this plot of land, today,

0:48:22 > 0:48:25you're probably looking around 300,000, maybe 350,

0:48:25 > 0:48:27that sort of area.

0:48:27 > 0:48:29So, you need to have, actually, an imagination

0:48:29 > 0:48:34to see this car park as a plot of land.

0:48:34 > 0:48:36Well, I haven't lost any money.

0:48:36 > 0:48:39Adding Galia's added £200,000 build costs

0:48:39 > 0:48:44to the costs so far gives a total of 519,000.

0:48:44 > 0:48:47What could the building sell for when completed?

0:48:47 > 0:48:52Probably looking at a resale value freehold of around £750,000.

0:48:52 > 0:48:57That is a potential pre-tax profit of 231,000.

0:48:57 > 0:49:00I think 750

0:49:00 > 0:49:04is certainly the correct figure,

0:49:04 > 0:49:06actually, once it's done and finished.

0:49:06 > 0:49:11Even with that figure in mind, I'm already making profit.

0:49:11 > 0:49:13We know Galia's mission

0:49:13 > 0:49:16is for a bespoke bijou health and fitness retreat,

0:49:16 > 0:49:19but let's look at the commercial rental rate.

0:49:19 > 0:49:22If she tried to rent it out, £25,000 to £30,000 per annum.

0:49:22 > 0:49:26Which equates to an annual yield of just under 6%.

0:49:26 > 0:49:28But for Galia it's not just about the money.

0:49:30 > 0:49:36So, for me the views and the whole aspect of that plot is priceless.

0:49:36 > 0:49:40What sort of properties will Galia be looking out for,

0:49:40 > 0:49:43once this project is complete?

0:49:43 > 0:49:46I'm looking for, you know, disused Victorian toilets,

0:49:46 > 0:49:48or something extremely unusual.

0:49:48 > 0:49:50A castle?

0:49:51 > 0:49:55Well, there is one just a little bit further along from the toilet block.

0:49:55 > 0:49:57Any personal ambitions?

0:49:57 > 0:50:00I have this option of taking part in all sorts of activities

0:50:00 > 0:50:02that are run at my retreat

0:50:02 > 0:50:07but, personally, I would like to learn how to do ballroom dancing,

0:50:07 > 0:50:10and after that I'm going to study French.

0:50:10 > 0:50:15What specific regimes will be on offer to the clients once the retreat is complete?

0:50:15 > 0:50:20Walking on the pebbles barefoot, swimming in the sea all-weather,

0:50:20 > 0:50:22eating the seaweed.

0:50:22 > 0:50:23How exciting!

0:50:25 > 0:50:27I'm sure that sounds like a seaside idyll for some.

0:50:27 > 0:50:30Others might prefer a hot sandy beach, though.

0:50:30 > 0:50:32I guess it's horses for courses.

0:50:33 > 0:50:34Seahorses, of course.

0:50:40 > 0:50:44We return now to Edmonton Green in the London Borough of Enfield,

0:50:44 > 0:50:48where earlier I looked around this three-room first-floor flat,

0:50:48 > 0:50:51bought at auction for 165 grand.

0:50:52 > 0:50:55Your bathroom there definitely needs refurbishment.

0:50:55 > 0:50:56And then through into this room,

0:50:56 > 0:50:58which is your main living accommodation.

0:50:58 > 0:51:00This is a nice living area,

0:51:00 > 0:51:03especially as you come through this way through to your kitchen.

0:51:03 > 0:51:05Clearly seen better days.

0:51:05 > 0:51:07Probably stick a few more windows in here,

0:51:07 > 0:51:10but, apart from that, I think it practically works very well,

0:51:10 > 0:51:12especially as it's through that back door there

0:51:12 > 0:51:14out on to a little terrace.

0:51:14 > 0:51:16And the added bonus was this jungle.

0:51:16 > 0:51:20Outside space in London is always something that comes at a premium,

0:51:20 > 0:51:23so why was this flat guided at 100 grand?

0:51:23 > 0:51:25Yes, there was a catch.

0:51:25 > 0:51:27A short 42-year lease.

0:51:27 > 0:51:31It was bought by Rohema and her husband Mujibah,

0:51:31 > 0:51:34who weren't too concerned about the short lease,

0:51:34 > 0:51:38as they were adding this to their rental portfolio.

0:51:38 > 0:51:41- What do you look for? - We look for something,

0:51:41 > 0:51:44I'm very interested to do with renovating and everything,

0:51:44 > 0:51:47because I enjoy myself doing this.

0:51:47 > 0:51:49I look for the rental income, location,

0:51:49 > 0:51:51- where we can make more profit. - Right.

0:51:51 > 0:51:56It's an approach they've found very profitable over the years.

0:51:56 > 0:51:58But I was interested to see what changes they would bring

0:51:58 > 0:52:03to this property, which they bought without seeing inside.

0:52:03 > 0:52:08So, I have to do the central heating, the double glazing, replastering,

0:52:08 > 0:52:11take the ceiling down and everything, new bathroom, kitchen,

0:52:11 > 0:52:14and the garden, obviously, is junk.

0:52:14 > 0:52:16- Yes!- I have to clean this mess.

0:52:16 > 0:52:20They thought it would take three to four months to do the refurbishment

0:52:20 > 0:52:21and were looking into the feasibility

0:52:21 > 0:52:25of extending into the roof space with another two bedrooms.

0:52:25 > 0:52:29Well, we're back five months later, and let's start with that jungle.

0:52:31 > 0:52:33Underneath it they found a garden

0:52:33 > 0:52:36which, after calling in landscapers, turned out nice again.

0:52:38 > 0:52:40What about the interior?

0:52:40 > 0:52:43# And I'm picking up the pieces I want to cry

0:52:43 > 0:52:50# But you don't see that I'm the one by your side... #

0:52:50 > 0:52:52There's a list of new things.

0:52:52 > 0:52:55New gas supply for the house and central heating,

0:52:55 > 0:52:58new flooring, and a new fuse box and a rewire.

0:53:00 > 0:53:04# And I'm picking up the pieces... #

0:53:04 > 0:53:07A lot of unwanted pieces have been picked up.

0:53:07 > 0:53:10# I found a photograph

0:53:10 > 0:53:14# Behind the TV... #

0:53:14 > 0:53:17It's much tidier.

0:53:17 > 0:53:21# Are you missing the way it used to be?

0:53:21 > 0:53:27# And I have changed this room around more often lately... #

0:53:29 > 0:53:31The new list continues with new doors and new plasterboard

0:53:31 > 0:53:33and skimmed ceilings.

0:53:33 > 0:53:36But not until they'd called someone in to fix a roof leak

0:53:36 > 0:53:39and not forgetting, of course, there's a new bathroom.

0:53:44 > 0:53:48When we last saw them, the couple were planning a loft extension

0:53:48 > 0:53:51and weren't in a great hurry to extend the 42-year lease,

0:53:51 > 0:53:53as they were letting the flat.

0:53:53 > 0:53:55But recent developments have changed that.

0:53:59 > 0:54:02# And I'm picking up the pieces she left behind. #

0:54:06 > 0:54:09Over to Rohema to take up the story.

0:54:10 > 0:54:13While we was doing the work the ground floor vendor

0:54:13 > 0:54:16showed interest to sell the property,

0:54:16 > 0:54:19so we just thought, you know, we can get a good deal

0:54:19 > 0:54:21and he actually sold the property to us

0:54:21 > 0:54:24below the market value, so that was good.

0:54:25 > 0:54:28Owning the upstairs and downstairs flat

0:54:28 > 0:54:31makes applying for the freehold a much simpler legal process.

0:54:31 > 0:54:34It's still expensive but they've saved money

0:54:34 > 0:54:38by holding off on the loft conversion.

0:54:38 > 0:54:40We're not going to do the loft conversion now.

0:54:40 > 0:54:44Once we get the freehold, then we'll think do loft conversion,

0:54:44 > 0:54:47or move on to another project.

0:54:47 > 0:54:49We have researched the market

0:54:49 > 0:54:53and found out there is more demand for two-bedroom houses, or flats,

0:54:53 > 0:54:57and our downstairs is already rented out,

0:54:57 > 0:55:00and upstairs is already rented out.

0:55:00 > 0:55:01If further proof were needed,

0:55:01 > 0:55:05clearly these two don't let the grass grow under their feet.

0:55:05 > 0:55:07How was it clearing the garden?

0:55:07 > 0:55:09It took us about two days to clear.

0:55:09 > 0:55:11Everything was just dumped in there,

0:55:11 > 0:55:15so we actually hired three skips to clear them.

0:55:15 > 0:55:19Once was everything cleared, we actually found out

0:55:19 > 0:55:21there's built... A shed was there.

0:55:21 > 0:55:24There was nice old tiles was there.

0:55:24 > 0:55:26So, the garden was done

0:55:26 > 0:55:31but was hidden under the jungle and the rubble and old furniture.

0:55:31 > 0:55:33Were there any arguments along the way?

0:55:33 > 0:55:35Definitely, definitely.

0:55:35 > 0:55:39There was lots of arguments and disagreements

0:55:39 > 0:55:42with the colours, with the sizes.

0:55:42 > 0:55:47Sometimes just the stress and the pressure, yeah.

0:55:47 > 0:55:50What about the three- to four-month timescale?

0:55:50 > 0:55:54It's ended up 16 weeks because we bought the ground floor flat.

0:55:54 > 0:56:00So we was doing the work there, so that's why it took 16 weeks.

0:56:00 > 0:56:04And the £25,000 to £30,000 budget forecast?

0:56:04 > 0:56:08With everything, it's 19,000.

0:56:08 > 0:56:09Not...

0:56:09 > 0:56:12It didn't exceed 19, innit?

0:56:12 > 0:56:15- Yeah, just...- 19,000.- ..19,000.

0:56:15 > 0:56:17We called in two local estate agents

0:56:17 > 0:56:20to get their opinions and evaluations.

0:56:20 > 0:56:24Mujibah and Rohema bought upstairs for 165 grand

0:56:24 > 0:56:27and spent 19 more refurbishing it.

0:56:27 > 0:56:30It's been done to a good standard.

0:56:30 > 0:56:32A lot of people will be interested in the property.

0:56:32 > 0:56:37A lot of neutral colours, playing safe with magnolia white walls.

0:56:37 > 0:56:39It would be a good property for the rental market

0:56:39 > 0:56:41and also the selling market,

0:56:41 > 0:56:43depending what options the landlords go for.

0:56:43 > 0:56:46And the agent who saw the property before the work began.

0:56:46 > 0:56:48It's my second time inside the property.

0:56:48 > 0:56:50Cor, there's been fantastic changes.

0:56:50 > 0:56:52It doesn't look like the same place.

0:56:52 > 0:56:54Shows really, really well now.

0:56:54 > 0:56:57It's a popular property, anyway, this type of accommodation.

0:56:57 > 0:57:01But it's been done up and it looks spectacular.

0:57:01 > 0:57:03We know this is going straight to rent

0:57:03 > 0:57:06but what potential profit could they realise

0:57:06 > 0:57:10if they sold their £184,000 investment on the open market?

0:57:10 > 0:57:15Well, the agents' values varied between 250,000 and 285,000.

0:57:15 > 0:57:16What do you make of that?

0:57:18 > 0:57:21- Yeah. - 285 is a reasonable price, I think,

0:57:21 > 0:57:25because recently we bought a ground floor

0:57:25 > 0:57:27and it was in-between 250 and 285.

0:57:27 > 0:57:31So, if they sold, that could mean a potential profit of around £100,000

0:57:31 > 0:57:36minus taxes and any fees, including extending that lease.

0:57:36 > 0:57:39So, what about the all-important rental?

0:57:39 > 0:57:43The rental would be about £1,250 per calendar month.

0:57:43 > 0:57:47Rental should be around £1,250 per calendar month

0:57:47 > 0:57:49to £1,300 per calendar month.

0:57:49 > 0:57:54We already rent out the same, actually, so, with the price range.

0:57:54 > 0:57:56For 1,250, yeah.

0:57:56 > 0:58:00On this upper flat they spent 184,000,

0:58:00 > 0:58:06so that £1,250 per calendar month gives a yield of just over 8%.

0:58:06 > 0:58:10But will they continue with the buy-to-let model?

0:58:10 > 0:58:14This is my job the last 12 years... 14 years I'm doing this.

0:58:14 > 0:58:15So, yeah, I'll continue.

0:58:19 > 0:58:21So, that's it for today's show.

0:58:21 > 0:58:23Do you think our buyers made some mistakes,

0:58:23 > 0:58:25or did they get it right from beginning to end?

0:58:25 > 0:58:28Don't worry, we've got plenty more stories in the pipeline,

0:58:28 > 0:58:30so join us next time on Homes Under The Hammer.

0:58:30 > 0:58:31- Goodbye.- Bye-bye.