Episode 71 Homes Under the Hammer


Episode 71

Similar Content

Browse content similar to Episode 71. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Hello, and welcome to the show.

0:00:020:00:03

Now, if you want the best possible return on an investment,

0:00:030:00:06

then property is definitely worth considering.

0:00:060:00:09

Yes, but making money is not a foregone conclusion.

0:00:090:00:13

One way to stack things in your favour, though,

0:00:130:00:15

is to head down to your local property auction.

0:00:150:00:17

Well, when you buy at auction you have options.

0:00:430:00:46

Do you do up and sell on,

0:00:460:00:48

or do you do a refurbishment and then rent it out?

0:00:480:00:52

You may even end up loving it so much it becomes your dream home.

0:00:520:00:56

Let's find out what today's buyers did when they went to auction.

0:00:560:00:59

In Doncaster, South Yorkshire, this three-bed semi has a semi-archway.

0:01:000:01:06

Any quirks are good, adds to a house - the feeling, the character.

0:01:060:01:09

In Herne Bay, Kent, Lucy looks at a plot with promising panoramas.

0:01:100:01:14

Whatever you build here will have that as a view.

0:01:140:01:19

And in the Edmonton area of London,

0:01:190:01:22

there could be lofty aspirations in this three-roomed first-floor flat.

0:01:220:01:26

One of the things you might consider doing is extending upwards.

0:01:260:01:30

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

0:01:320:01:35

who bought them and what they paid for them

0:01:350:01:37

when they went under the hammer.

0:01:370:01:39

Sold.

0:01:390:01:41

South Yorkshire now, and the town of Doncaster.

0:01:440:01:48

Once a powerhouse of the industrial north,

0:01:480:01:50

Doncaster can lay claim to two famous landmarks.

0:01:500:01:54

Westminster Abbey was created by

0:01:540:01:56

Doncaster-born architect John Francis Bentley,

0:01:560:02:00

and the clock in Big Ben by Edmund Beckett Denison,

0:02:000:02:04

also a Doncaster lad.

0:02:040:02:05

Time for us to get hands-on with our property.

0:02:050:02:08

It's always great to have a lovely big park outside your house.

0:02:100:02:14

Not so great when you've got a dual carriageway in between.

0:02:140:02:17

But location-wise, the property I'm here to see

0:02:170:02:20

is just a mile away from the town centre,

0:02:200:02:22

which could be great news for the rental market.

0:02:220:02:24

This is the property.

0:02:240:02:25

Oh, and I also spotted some off-street parking, which is good.

0:02:250:02:28

The property has three bedrooms and a guide price of £45,000 plus.

0:02:280:02:33

Let's go look.

0:02:330:02:34

It's a family house, but would a family with young kids want to live

0:02:360:02:40

on a very busy dual carriageway, even with a park on the other side?

0:02:400:02:45

# Park life... #

0:02:450:02:46

I'm not sure I would.

0:02:460:02:49

Into our hallway.

0:02:490:02:51

Now, the very first area of the hallway is under the stairs.

0:02:510:02:55

Dead space. If you like, you could get rid of this,

0:02:550:02:58

but actually some people like a wee bit of storage space

0:02:580:03:00

for their hoover, sometimes the washing machine,

0:03:000:03:02

keep it out of the kitchen. You have a very old fuse box there.

0:03:020:03:06

I'd imagine you'd struggle to get fuses for that.

0:03:060:03:09

Might need an upgrade.

0:03:090:03:10

A little toilet, doesn't have a sink,

0:03:100:03:13

but it's good to have your downstairs toilet.

0:03:130:03:15

Put a sink in there.

0:03:150:03:17

And the kitchen...

0:03:170:03:19

..it's actually a really good size.

0:03:190:03:21

You would need to replace the kitchen. Well, I say replace.

0:03:210:03:24

There's actually no kitchen in there.

0:03:240:03:25

You just need a new kitchen in.

0:03:250:03:27

Not much light coming in.

0:03:270:03:28

You could maximise light, maybe getting a different door,

0:03:280:03:31

more glass. But pretty small point.

0:03:310:03:34

Definitely enough room in there for sociable living, a dining table.

0:03:340:03:39

And then through to your reception area.

0:03:390:03:42

I can tell this has been two rooms knocked into one,

0:03:420:03:45

which gives a great sense of space.

0:03:450:03:48

And I don't hear any noise, considering how busy

0:03:480:03:51

that dual carriageway is.

0:03:510:03:53

There's double glazing,

0:03:530:03:55

and the double glazing is definitely doing its job.

0:03:550:03:58

The heating, you have central heating - good.

0:03:580:04:01

May well require an upgrade.

0:04:010:04:03

You'd want to get that checked out.

0:04:030:04:05

This has a feeling of a place that work has been started at,

0:04:050:04:09

and somebody's gone.

0:04:090:04:11

So, the ceiling paintwork is really new,

0:04:110:04:14

albeit dated, from the swirly plasterwork.

0:04:140:04:18

But all in all, a great start.

0:04:180:04:20

Yes, wallpaper has been stripped and painting's begun,

0:04:210:04:24

but that all begs the question - if they made a start, why did they stop?

0:04:240:04:29

Hopefully not because they unearthed unseen problems.

0:04:310:04:34

I can see as I come upstairs where work has already started.

0:04:370:04:40

So, wallpaper's been steamed off to expose the plasterwork,

0:04:400:04:44

which is in pretty good nick.

0:04:440:04:46

Wouldn't need a full plaster job.

0:04:460:04:47

It looks quite new, actually.

0:04:470:04:49

You might just get away with a skim.

0:04:490:04:52

And through to a bathroom.

0:04:520:04:55

Nice little flowers detail on the suite but that needs to come out,

0:04:550:04:58

modernise it. And then starting off with a really good-sized

0:04:580:05:02

child's bedroom. I can tell it's a child's bedroom,

0:05:020:05:04

some lovely paintings on the walls of castles.

0:05:040:05:07

Another bedroom is a very good size.

0:05:070:05:10

I like the design quirk of half an archway.

0:05:100:05:13

You may find that the chimney breast is next to it, so that the chimney

0:05:130:05:17

went off at an angle and therefore it's been designed around it.

0:05:170:05:21

Any quirks are good, adds to a house - the feeling, the character.

0:05:210:05:24

And through to your third bedroom, which again is a great size.

0:05:240:05:28

So often in three-beds one of the bedrooms is a bit of a compromise,

0:05:280:05:32

it's a box room, you might get away with a study or a cot.

0:05:320:05:35

But you could get a double bed comfortably into each of them.

0:05:350:05:40

I also like the floors because they're exposed,

0:05:400:05:42

and you could sand them, make a gorgeous original feature.

0:05:420:05:46

The ceilings are pretty much all painted new.

0:05:460:05:49

Some of the work's been done for you.

0:05:490:05:52

A lot still needs to be done,

0:05:520:05:54

but it strikes me that there's nothing too drastic here.

0:05:540:05:58

# I know that things could be

0:06:010:06:04

# Worse for me

0:06:040:06:05

# So I won't cry... #

0:06:050:06:07

The property itself is on a fair-size plot with a decent,

0:06:070:06:11

albeit overgrown, and not exactly private garden to the rear

0:06:110:06:15

and ample space to the side and front for that off-road parking

0:06:150:06:19

I mentioned earlier, which is essential when living

0:06:190:06:22

next to a dual carriageway.

0:06:220:06:24

That's the rub, really, here, isn't it?

0:06:240:06:27

Great size house but next to a big, busy road,

0:06:270:06:30

so not for everyone.

0:06:300:06:33

We asked along a local estate agent for his opinion on this property,

0:06:330:06:37

guided at £45,000 plus.

0:06:370:06:39

Generally, the property is in need

0:06:410:06:43

of pretty much a full refurbishment,

0:06:430:06:45

certainly a central heating system, maybe upgrading or a full rewire.

0:06:450:06:49

I think on a reasonable level, people could spend anywhere between

0:06:490:06:52

£10,000-£15,000 throughout the property, 20 at the absolute top.

0:06:520:06:57

We're in agreement there.

0:06:570:06:58

From top to bottom, this property needs plenty of work.

0:06:580:07:01

But would it be money well spent?

0:07:010:07:04

The property should achieve somewhere in the region of

0:07:040:07:06

£95,000-£100,000.

0:07:060:07:09

OK, what about rental?

0:07:090:07:11

With regards to the rent on the property,

0:07:110:07:13

in good condition, it should rent somewhere in the region of

0:07:130:07:16

£500-£550 per calendar month.

0:07:160:07:21

This is a good solid house that needs a lot of work doing.

0:07:210:07:24

Its location brings pluses and minuses.

0:07:240:07:27

That road could put some people off, but the location means

0:07:270:07:30

the rental market should be buoyant so close to town.

0:07:300:07:33

Let's find out who thought the pros outweighed the cons

0:07:330:07:36

when it went to auction.

0:07:360:07:38

A three-bedroom semidetached in need of a scheme of upgrading

0:07:410:07:45

and improvement.

0:07:450:07:46

We do have a telephone bid on this lot, and I also have

0:07:460:07:49

a commissioned bid. Where do you want to be with this?

0:07:490:07:51

Who has got £45,000 to open the bidding?

0:07:510:07:54

At 45,000 I have, thank you. 46 with me.

0:07:540:07:58

Commissioned bids are made by the auctioneer

0:07:580:08:00

on behalf of an absent bidder who has set a pre-agreed maximum.

0:08:000:08:05

We rejoin the bidding at 65 grand.

0:08:050:08:07

65. 66? No.

0:08:070:08:10

At £65,000 then, shan't dwell.

0:08:100:08:13

At the back of room, it's £65,000

0:08:130:08:16

for the first time, for the second time,

0:08:160:08:18

sold. It's yours, sir, at £65,000.

0:08:180:08:21

That bid was made by car trader Adam.

0:08:210:08:24

He's developed property before but this was his first auction purchase.

0:08:240:08:29

Adam and girlfriend Emma have come along to tell us

0:08:290:08:32

why he's bought this three-bed semi for 20 grand over the guide price.

0:08:320:08:37

-Emma, pleased to meet you.

-You, too.

-Adam.

0:08:400:08:43

-Congratulations to you both.

-Cheers, thank you very much.

0:08:430:08:45

-The guide price was 45,000.

-Yes, that's right, yes.

0:08:450:08:49

And you got it for 65. So, were you happy going to that amount?

0:08:490:08:53

Would you have gone up further?

0:08:530:08:54

Well, it was at 63 and the auctioneer was going,

0:08:540:08:58

"Going once, going twice..."

0:08:580:09:00

But somebody put his hand up, so it went to 65.

0:09:000:09:04

I was gutted. It's obviously not just £1,000 I have to go up,

0:09:040:09:07

it's £2,000. So it was an extra £2,000 for me.

0:09:070:09:10

But 65, a little bit high...

0:09:100:09:13

..but I'm happy. All round, I'm happy.

0:09:130:09:15

This is Adam's second house,

0:09:150:09:17

and Emma's going to be helping him this time,

0:09:170:09:19

so I'm just going to be nosy.

0:09:190:09:21

How long have you two been together?

0:09:210:09:23

We've been together about six, seven months-ish now.

0:09:230:09:26

-It is six months, isn't it, baby?

-Yeah.

0:09:260:09:28

Is this your first time developing property?

0:09:280:09:31

Uh, yes. Yeah.

0:09:310:09:33

I probably... I won't do much.

0:09:330:09:35

I don't know. I'll do a few things.

0:09:350:09:38

-Yeah.

-Strip a bit of paper off.

0:09:380:09:39

-I told her she'll be doing the painting.

-Yeah.

0:09:390:09:41

I've got her recorded on my phone agreeing that she's going to be

0:09:410:09:44

-doing the painting.

-Yeah.

-So, I've got evidence to back me up.

0:09:440:09:47

What's the history of this house?

0:09:470:09:48

cos it looks like a wee bit's been done and then abandoned.

0:09:480:09:51

Yeah, when we came in...

0:09:510:09:53

It worries me slightly, because somebody's already made an attempt

0:09:530:09:57

at this house. And I've had a look round, I can't see any damp.

0:09:570:10:01

It's looking good.

0:10:010:10:02

It just needs simple jobs doing, really.

0:10:020:10:04

But somebody's started this and then walked away.

0:10:040:10:08

-Why?

-Yeah.

0:10:080:10:09

-That's what I'm thinking.

-You're scared that they discovered

0:10:090:10:12

something and ran for the hills?

0:10:120:10:13

Yeah, any time now, any day, I'm going to pull off a piece of carpet,

0:10:130:10:16

pull off a piece of wallpaper and I'm going to find the surprise.

0:10:160:10:19

What are you thinking? What are your plans?

0:10:190:10:23

Plaster, or at least skim. Not everywhere needs plastering,

0:10:230:10:26

definitely at least a skim.

0:10:260:10:27

Paint, carpets, central heating system, get the electrics checked.

0:10:270:10:32

Bathrooms. There's a toilet upstairs and downstairs,

0:10:320:10:35

obviously a bathroom upstairs. The kitchen is a really good size.

0:10:350:10:38

Not quite big enough to get an island in but plenty of room,

0:10:380:10:41

plenty of size. I've thought about knocking a wall in through

0:10:410:10:43

-to the dining area.

-Yeah.

-To this room. But it's just cost.

0:10:430:10:47

Does it need it? Is the kitchen big enough?

0:10:470:10:50

Personally, I think it's going to be all right.

0:10:500:10:52

But those ideas are going round in my head, pondering.

0:10:520:10:55

I do want to keep costs down because this is going to be

0:10:550:10:59

looking like a renter.

0:10:590:11:01

Adam hopes to get the work done here for no more than 20 grand.

0:11:010:11:05

He'll be getting in professionals to do the skilled work but saving money

0:11:050:11:09

by doing the unskilled work, with a little help from Emma, hopefully.

0:11:090:11:13

Adam thinks a three-month timescale should do it.

0:11:130:11:16

Six months together...

0:11:180:11:20

You're going to be working together on this project,

0:11:200:11:23

so how do you get on?

0:11:230:11:26

He can be quite... You can be quite bossy.

0:11:260:11:28

-Mm-hm.

-And I don't like being told what to do.

0:11:280:11:30

-Yeah.

-It is like two bulls going...

0:11:300:11:34

-Yeah, maybe we clash a little bit.

-We do.

-But no,

0:11:340:11:37

when Emma's working she works hard and the only reason she'll stop

0:11:370:11:40

-is for a drink, or a sandwich, or a snack.

-Yeah.

0:11:400:11:42

I do quite like interior design, don't I?

0:11:420:11:44

That kind of...that kind of thing.

0:11:440:11:46

But I think, obviously, you're not going to be doing too much.

0:11:460:11:49

-No, no. No.

-I think it's just obviously picking

0:11:490:11:51

the colours of the paint and stuff like that.

0:11:510:11:54

So, I don't think it's going to be too extreme.

0:11:540:11:56

OK, I can't wait to see how you get on, guys.

0:11:560:11:59

-Thank you very much.

-Hopefully, you're still speaking.

0:11:590:12:02

THEY LAUGH

0:12:020:12:03

Yeah, it might be a different girl when you come back.

0:12:030:12:06

A different helper.

0:12:060:12:07

I'm only kidding. I'm only kidding.

0:12:070:12:10

Three months, you can stick together for three months.

0:12:130:12:16

-Best of luck, guys. Good luck.

-Thank you.

-Oh, dear.

0:12:160:12:19

Adam's a young man who is not fazed by this project,

0:12:210:12:24

but I still have a couple of unanswered questions.

0:12:240:12:27

Will he find any underlying problems?

0:12:270:12:29

And will that main road put anyone off?

0:12:290:12:32

But most importantly, will he still be with Emma when we come back?

0:12:320:12:35

You can find out later in the show.

0:12:350:12:37

Lucy's on the Kent coast in the small seaside town of Herne Bay.

0:12:400:12:45

Like many of the seaside towns,

0:12:480:12:50

the beaches were really buzzing in Victorian times

0:12:500:12:53

when steamboats ran between here and London

0:12:530:12:56

ferrying holiday-makers back and forth.

0:12:560:12:59

Today, much of the 19th-century architecture remains,

0:12:590:13:03

and after a downturn of its fortunes,

0:13:030:13:06

tourists themselves are heading back to Herne Bay.

0:13:060:13:09

# Takes me back to the place that I know

0:13:090:13:14

# On the beach... #

0:13:170:13:20

The chances of finding a building plot with planning permission

0:13:230:13:26

in a town-centre location like this are, well,

0:13:260:13:30

as likely as spotting a mermaid washed up on the beach over there.

0:13:300:13:34

And the plot with planning and sea views?

0:13:340:13:38

Well, come round here. It seems almost hard to believe but,

0:13:380:13:41

oh, no, believe away, viewers, because, look,

0:13:410:13:45

here it is, right before my eyes. Amazing.

0:13:450:13:48

And the guide price, a sizeable 180,000-185,000.

0:13:480:13:54

Incredible.

0:13:540:13:56

# Can you believe it?

0:13:560:13:59

# Can you believe it?

0:13:590:14:01

# Can you believe it feels so right? #

0:14:010:14:05

Well, the site itself is a bit of an odd, triangular shape,

0:14:120:14:16

and it's slightly sloping, so it's not perfect.

0:14:160:14:18

But not too bad.

0:14:180:14:20

Now, another negative that's worth bearing in mind is that there is a

0:14:200:14:23

main sewer that runs under this site

0:14:230:14:26

and that will need relocating,

0:14:260:14:28

and it can be costly and time-consuming.

0:14:280:14:30

But all of that pales into insignificance when you think,

0:14:300:14:33

whatever you build here will have that as a view.

0:14:330:14:38

Gorgeous!

0:14:380:14:40

# And I stare at the sea

0:14:410:14:45

# And the sea smiles for me... #

0:14:460:14:50

The sea might be smiling, but the plot is only 12 by 10 metres.

0:14:500:14:55

Is that enough space?

0:14:550:14:56

So, the drawings show a pair of two-bedroom semidetached houses here,

0:14:560:15:01

and a detached one-bed which is hugging the corner of the plot.

0:15:010:15:05

Now, they're certainly snug, filling almost all of the site.

0:15:050:15:08

But the layout of the semis, I would say they are very standard,

0:15:080:15:11

you've got a living room, kitchen,

0:15:110:15:13

loo on the ground floor, and upstairs,

0:15:130:15:16

times two bedrooms and a bathroom.

0:15:160:15:19

Now, the detached, I would say

0:15:190:15:21

is more interesting because you've got a garage and games room,

0:15:210:15:23

and a kitchen on the ground floor,

0:15:230:15:25

and then upstairs, a large living room and bedroom

0:15:250:15:28

with balcony that goes right the way round it.

0:15:280:15:31

It's a big building to have only one bedroom.

0:15:310:15:34

But due to the flood risk, well,

0:15:340:15:36

you can't have any sleeping accommodation downstairs,

0:15:360:15:39

and I'm sure the architect wanted to make the most of these views

0:15:390:15:42

from the living space.

0:15:420:15:44

It's a rather luxurious space, a bit indulgent,

0:15:440:15:47

but all the more exciting for it.

0:15:470:15:49

Since all the hard work assigning architects to negotiate

0:15:510:15:54

with the local planning office is complete,

0:15:540:15:56

the only thing left to do here was get building.

0:15:560:15:59

But before jumping ahead and getting contractors in,

0:16:000:16:03

it's a good idea to get a local estate agent to look at the plans

0:16:030:16:06

and see if they would be right for the local market,

0:16:060:16:09

which is exactly what we've done.

0:16:090:16:11

Seafront-facing property as a whole in Herne Bay, there's a huge demand.

0:16:120:16:16

Some people might not like the idea

0:16:160:16:17

there's not actually any garden space.

0:16:170:16:19

However, you've got the garden on your doorstep.

0:16:190:16:22

You're not going to get any closer to the seafront for miles here.

0:16:220:16:24

The plans... To be honest, they're the best they could be.

0:16:240:16:27

It's such a small, compact plot, and I think the plans that have been passed

0:16:270:16:30

is what's going to get the maximum profit out of it.

0:16:300:16:33

And just what could that profit be for this plot,

0:16:330:16:36

guided at 180,000-185,000?

0:16:360:16:39

I'm of the opinion the semidetached cottages,

0:16:420:16:44

always dependent on specification, you're going to be looking at

0:16:440:16:47

figures between £230,000 and £250,000.

0:16:470:16:51

For the detached property, at the moment, I'd suggest

0:16:510:16:53

an asking price of £300,000.

0:16:530:16:55

Whoa! So those top figures would mean all three properties

0:16:550:16:58

could be worth 800,000.

0:16:580:17:01

Looks like there's a TIDE-y profit in this one, for sure.

0:17:010:17:06

This is an incredibly exciting opportunity.

0:17:080:17:12

The designs are interesting, the location is fantastic,

0:17:120:17:15

and the views... Well, they're just amazing!

0:17:150:17:18

I'm sure there was plenty of interest in this one at the auction.

0:17:180:17:22

A super site, this, with planning permission for the three dwellings.

0:17:220:17:26

They're all going to have sea views at the front.

0:17:260:17:29

Start me where you will. 170 to get me going.

0:17:290:17:31

170. I'm on the way at 170.

0:17:310:17:33

At the back, £170,000.

0:17:330:17:35

There was definite interest in this plot of land,

0:17:350:17:38

but it soon came down to two very keen bidders.

0:17:380:17:41

We rejoin the bidding at 300,000.

0:17:410:17:44

300 with you, madam. 302 to you.

0:17:440:17:46

302. And four.

0:17:460:17:48

That might be another wave of the hand.

0:17:480:17:50

At 302 then to the gentleman sitting down.

0:17:500:17:52

Otherwise, for the first time at £302,000, we'll go through it again.

0:17:520:17:56

304, I've got.

0:17:560:17:58

306.

0:17:580:18:01

304 back to you, then, for the first time.

0:18:010:18:04

£304,000 for the second time.

0:18:040:18:07

Last chance if you want it.

0:18:070:18:09

304 for the third and final time.

0:18:090:18:11

-Well done.

-The successful bid was made by Galia,

0:18:110:18:14

who paid almost £120,000 more than the top guide price.

0:18:140:18:18

# Seems like a touch

0:18:180:18:21

# A touch too much... #

0:18:210:18:25

Lucy met up with Galia to find out if she paid too much

0:18:250:18:28

for the seaside plot.

0:18:280:18:30

Galia, fantastic meeting you today.

0:18:300:18:32

Thank you so much for coming along.

0:18:320:18:34

But what an incredible site.

0:18:340:18:35

Look how close the sea is!

0:18:350:18:38

I know, it's my pleasure being here as well.

0:18:380:18:40

Yeah, you can't get any closer to the sea than that. Yes.

0:18:400:18:43

But you got a little bit carried away on auction day, didn't you?

0:18:430:18:48

Yes, I did. I'm afraid things didn't go according to the plan.

0:18:480:18:52

I've actually first approached the vendor prior to the auction.

0:18:520:18:55

I made an offer of 175 and it was rejected

0:18:550:18:59

because the vendor wanted to accept 195.

0:18:590:19:01

When it came to bidding, I think the auctioneer was winding

0:19:010:19:04

another very, very interested party

0:19:040:19:07

first of all up to 250,

0:19:070:19:09

and I thought that's where we're going to stop.

0:19:090:19:11

But it went above that to 304.

0:19:110:19:14

And I'm just sitting there thinking, "No, I can't. I can't lose it."

0:19:140:19:18

"No, I can't, I can't... But I'm going to."

0:19:180:19:20

-I'm going to.

-And you paid.

-And I paid that, yes.

0:19:200:19:23

-You paid 304?

-304.

0:19:230:19:25

And you were going to buy it for... You could have bought it for 195.

0:19:250:19:28

-195, yes.

-So, what are you going to do with this site?

0:19:280:19:31

Because there's planning permission for two semis

0:19:310:19:33

and one detached house.

0:19:330:19:36

-Yes.

-Are you going to go with the plans that currently are there?

0:19:360:19:40

Unfortunately not.

0:19:400:19:42

I'm actually going to submit a planning permission

0:19:420:19:44

to erect a detached property on the site,

0:19:440:19:47

utilising all the potential space there,

0:19:470:19:50

and actually run a retreat there.

0:19:500:19:54

So, the permissions for three homes are out of the window, and Galia

0:19:540:19:58

plans a base for her detox, fitness and weight loss retreat.

0:19:580:20:02

Galia already has one such retreat in Sussex

0:20:050:20:08

and hopes to expand her business by creating another here in Herne Bay.

0:20:080:20:12

She will have her work cut out, though,

0:20:140:20:16

especially as she will now have to go back to the planners and ask

0:20:160:20:20

not just to change the design of any property but also its use.

0:20:200:20:24

Considering Galia paid £120,000 more than the guide price

0:20:250:20:30

for this plot, it's safe to say her strategy is bold.

0:20:300:20:34

Do you think that you might have paid too much at auction, though?

0:20:350:20:38

How are you going to make your money back?

0:20:380:20:40

Well, I think I did,

0:20:400:20:42

but what value can you put on that?

0:20:420:20:46

-Absolutely.

-To me, that is priceless.

0:20:460:20:48

So, it's interesting. You're looking at building something

0:20:480:20:50

that's detached. What sort of budget have you got in mind?

0:20:500:20:53

Well, it's difficult to say. It's like the auction.

0:20:530:20:56

I was planning to spend 175 and I spent 304.

0:20:560:21:00

I am very much hoping to spend 250,

0:21:000:21:04

and if I'm further allowed to maybe excavate the basement area

0:21:040:21:07

for a little gym or maybe go to the second floor,

0:21:070:21:09

then certainly not more than 350.

0:21:090:21:12

But it's wishful thinking, of course.

0:21:120:21:14

Galia, you are a loose cannon.

0:21:140:21:16

And that's why people want to join my retreats.

0:21:160:21:18

They're going to follow me and they're going to be at the same helm

0:21:180:21:21

as I am. And I'm going to probably call this place not a boot camp

0:21:210:21:24

but a boat camp because I'm going to probably build it

0:21:240:21:28

in the shape of a boat.

0:21:280:21:30

-I mean, wow!

-Do you think Herne Bay are ready for such a retreat?

0:21:300:21:33

I think they are. First of all,

0:21:330:21:34

they're so close to Whitstable, where things are already happening.

0:21:340:21:37

Secondly, they're so close to London with its unique transport links

0:21:370:21:41

and, you see, a lot of my clients are international travellers.

0:21:410:21:44

So, for them it's just going to be really beautiful to visit

0:21:440:21:47

an English seaside resort,

0:21:470:21:49

and actually bring a little bit of prosperity to the area

0:21:490:21:53

and rejuvenate this area a little bit,

0:21:530:21:57

because it's definitely underestimated.

0:21:570:21:59

And playing her part in the rejuvenation plan,

0:21:590:22:02

Galia had previously bought another property

0:22:020:22:05

a few hundred yards down the beach.

0:22:050:22:08

She felt that this Victorian toilet block could be converted

0:22:080:22:11

into a gym for use by retreat clients,

0:22:110:22:14

but Lucy, rightly, was being pragmatic.

0:22:140:22:17

What if you don't get permission?

0:22:180:22:20

I hate to break it to you. Do you have a plan B?

0:22:200:22:24

If I don't get the permission the plan B is actually

0:22:240:22:27

going to make money, build the cottages and flog them.

0:22:270:22:30

I'm going to make money this way or the other.

0:22:300:22:32

I would prefer to run a retreat so I can benefit

0:22:320:22:35

and enjoy these beautiful walks myself.

0:22:350:22:37

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

0:22:370:22:41

OK, well, with planning permissions, obviously it's outside my control.

0:22:410:22:45

I'm certainly hoping a year.

0:22:450:22:47

So, you've got a year in mind...

0:22:470:22:49

-Yeah.

-..to get this place up and running.

0:22:490:22:51

It's been lovely meeting you today. Good luck with this whole project.

0:22:510:22:54

The pleasure is mine. Thank you.

0:22:540:22:56

Galia paid so much for that site, but she really wanted it,

0:22:560:23:01

and sometimes, well, the heart overrules the head.

0:23:010:23:04

But will her business plan come to fruition?

0:23:040:23:08

You can find out what happens later on in the programme.

0:23:080:23:11

Coming up, shrubbery surprises in the first-floor flat

0:23:120:23:15

in leafy Edmonton.

0:23:150:23:17

It's got this lovely little terraced area,

0:23:170:23:19

and then it comes with its very own jungle.

0:23:190:23:22

And in Herne Bay, Galia's retreat plans are delayed

0:23:230:23:27

due to an unexpected purchase.

0:23:270:23:29

So, I absolutely had to go and buy that forest.

0:23:290:23:32

Back now to half a mile from bonny Donny town centre.

0:23:360:23:40

That's Doncaster to you and me, South Yorkshire,

0:23:400:23:42

where I saw this three-bedroom semi.

0:23:420:23:45

The kitchen, you just need a new kitchen in.

0:23:450:23:48

Not much light coming in.

0:23:480:23:50

You could maximise light, maybe getting a different door,

0:23:500:23:52

more glass, but pretty small point.

0:23:520:23:55

It was bought by Adam, for 65 grand.

0:23:570:24:00

He didn't mind the busy road it fronted onto.

0:24:000:24:02

I met him and his girlfriend Emma back at the property.

0:24:020:24:06

I have had a look round, I can't see any damp.

0:24:060:24:08

It's looking good. It just needs a simple jobs doing, really.

0:24:080:24:11

But somebody's started this and then walked away. Why?

0:24:110:24:16

You're scared that they discovered something and ran for the hills?

0:24:160:24:19

Yeah. Any time now, any day, I'm going to pull off a piece of carpet,

0:24:190:24:21

pull off a piece of wallpaper and I'm going to find a surprise.

0:24:210:24:25

It was certainly puzzling, and a job not even half done.

0:24:250:24:29

Adam wasn't sure if he would sell or rent.

0:24:290:24:31

Either way, he thought three months would crack it,

0:24:310:24:34

and spend between 15-20 grand on it.

0:24:340:24:37

I wondered how their fairly new relationship would stand up.

0:24:370:24:41

You're going to be working together on this project,

0:24:410:24:44

so how do you get on?

0:24:440:24:45

He can be quite... You can be quite bossy.

0:24:450:24:47

-Mm-hm.

-And I don't like being told what to do.

0:24:470:24:49

-Yeah.

-It is like two bulls.

0:24:490:24:52

We're back nearly five and a half months later

0:24:570:25:00

to see how the bullfight went.

0:25:000:25:02

There's been a fair bit of replastering,

0:25:020:25:04

redecorating and removing of old doors.

0:25:040:25:07

There's new central heating.

0:25:070:25:09

But apart from one window, which we'll get to, they're all original.

0:25:090:25:13

There's a new consumer unit and storage space,

0:25:160:25:19

and I'm glad to see a hand basin in the downstairs loo.

0:25:190:25:22

So far, worth a round of applause.

0:25:230:25:26

# Boom! Clap! The sound of my heart

0:25:260:25:29

# The beat goes on and on and on and on and... #

0:25:290:25:32

There's a kitchen now, and it's smart.

0:25:320:25:35

OK, cue the magic door trick.

0:25:350:25:37

# Boom! Clap! The sound of my heart

0:25:370:25:39

# The beat goes on and on and on and on and... #

0:25:390:25:43

Upstairs now, and I for one can't wait to see

0:25:430:25:46

the changes to the bathroom.

0:25:460:25:48

# No silver or no gold

0:25:500:25:53

# Could dress me up so good

0:25:530:25:55

# You're the glitter in the darkness of my world... #

0:25:550:25:58

There was a lot of remedial plasterwork needed here,

0:26:030:26:06

especially by the sink and toilet, but it's definitely modern now.

0:26:060:26:10

Over to the largest bedroom,

0:26:130:26:15

where the neutral colour scheme continues.

0:26:150:26:17

Time for another magic door.

0:26:190:26:21

# Boom! Clap! You make me feel good

0:26:260:26:29

# Come on to me Come on to me now... #

0:26:290:26:32

The bedrooms, including the smallest,

0:26:350:26:37

are much calmer, and if you thought I'd forgotten to point out

0:26:370:26:40

the new window, here it is.

0:26:400:26:43

Adam's care goes beyond the interior.

0:26:430:26:45

He's shown his love outside, too.

0:26:450:26:49

# You keep burning me up with all your love, oh

0:26:490:26:52

# Boom! Clap! The sound of my heart

0:26:520:26:55

# The beat goes on and on and on and on and... #

0:26:550:26:58

Guess the most difficult job?

0:26:580:27:00

My money's on the plastering.

0:27:000:27:03

Erm... Well, no, somebody else did the plastering,

0:27:030:27:05

so it wasn't difficult - for me, anyway.

0:27:050:27:08

The painting of inside and outside,

0:27:080:27:11

that was most time-consuming, boring and...

0:27:110:27:14

Yeah, it was just so boring.

0:27:140:27:17

And so much paint. Wow.

0:27:170:27:19

Adam and Emma had only been going out for six months

0:27:210:27:23

on our first visit.

0:27:230:27:24

She described working with Adam as being like two bulls.

0:27:240:27:28

So, did this turn into a china shop?

0:27:280:27:31

And is that why Emma's not here?

0:27:310:27:33

Right, so...

0:27:330:27:36

HE LAUGHS

0:27:360:27:38

Inside, we started wallpaper stripping, me and Emma.

0:27:380:27:42

She is not here with me today but she is still, you know,

0:27:420:27:46

giving the free labour.

0:27:460:27:47

-Hooray!

-Just thereabouts.

0:27:470:27:49

She started off wallpaper stripping and I think she got bored,

0:27:490:27:52

so she sort of left it alone a little bit and left me to do

0:27:520:27:56

all but one bedroom.

0:27:560:27:58

The bedroom Emma did tackle was the smallest one,

0:27:580:28:01

but they also found there was woodworm,

0:28:010:28:03

and getting the right-size replacement floorboards

0:28:030:28:06

was a problem, so...

0:28:060:28:09

I got woodworm killer,

0:28:090:28:11

spent about £50 on the stuff and absolutely lathered the floor in it.

0:28:110:28:14

And, touch wood, we've had no problems since.

0:28:140:28:18

The previous owners had already started work on the property

0:28:180:28:21

and then left it.

0:28:210:28:23

So, were there any other hidden nasty surprises?

0:28:230:28:26

I did have a word with my solicitor, or they contacted me, actually,

0:28:260:28:30

and said, "Did you know it was bought less than a month ago?

0:28:300:28:33

"Does this worry you? I think you're going to find a surprise."

0:28:330:28:35

But, you know, again, my fingers were tight as a knot on a boat,

0:28:350:28:39

and I did not find any surprises. Thank God.

0:28:390:28:42

And this is it. Yeah, so far so good.

0:28:420:28:45

Motor trader Adam discovered a cheaper alternative to skip hire.

0:28:460:28:51

He bought a car in part exchange for £100

0:28:510:28:54

without back seats.

0:28:540:28:56

It must have saved me £500 worth in skips.

0:28:560:29:00

And, yeah, it's still going today.

0:29:000:29:01

It's been going for the last five months. It's brilliant.

0:29:010:29:04

You've said it. Five months - that's two months

0:29:040:29:08

off the original timescale. How was that?

0:29:080:29:11

I completely blame the tradies.

0:29:110:29:13

I've had people in, do a job,

0:29:130:29:15

and they've done it wrong and I've had to get somebody else.

0:29:150:29:17

But the good ones are obviously booked in for a few weeks

0:29:170:29:20

and the not-so-good ones can come tomorrow, you know,

0:29:200:29:22

the next day, and they're no good for me. I want the best.

0:29:220:29:25

And was the 15-20 grand budget as tight as knot on a boat?

0:29:250:29:30

How much did you spend?

0:29:300:29:32

17 and a half, roughly.

0:29:320:29:34

So, I've got a little bit of change.

0:29:340:29:36

It's that time again where we invite two local estate agents along

0:29:370:29:41

to see if Adam's 65-grand purchase

0:29:410:29:44

and £17,500 refurbishment has been worth it.

0:29:440:29:48

First up, the agent we met at first filming.

0:29:480:29:51

What's the 82,5000 spend worth now?

0:29:510:29:54

I would expect the property to fetch somewhere between

0:29:540:29:56

£100,000 and £110,000.

0:29:560:30:00

On the rental market, I would expect somewhere between

0:30:000:30:02

£500 and £525 per calendar month.

0:30:020:30:06

The second agent also valued it at 110 grand for sale

0:30:060:30:09

but he differed on the rental value.

0:30:090:30:12

£525 to £550 per calendar month.

0:30:120:30:16

Adam thought he would rent this,

0:30:160:30:19

but could be tempted if there was enough profit on the resale market.

0:30:190:30:23

So, does a potential pre-tax profit of £27,500 do it for him?

0:30:230:30:28

Well, the figures do not make me want to sell it.

0:30:280:30:31

I think too much time and effort's gone into it.

0:30:310:30:34

I would push for at least 120,000.

0:30:340:30:37

And the rental at 550 a month?

0:30:370:30:39

I'm going to push for 600.

0:30:390:30:41

If I struggle... Give it a month or so,

0:30:410:30:43

if I struggle I'll take 550, yeah.

0:30:430:30:46

Well, even at £550, with an 82,500 spend,

0:30:460:30:50

it comes out at around 8% annual yield.

0:30:500:30:54

Anything still on the to-do list?

0:30:540:30:56

In current talks at the minute with a solicitor

0:30:560:30:59

knocking up the tenant agreement and things like that. That's it.

0:30:590:31:03

Edmonton in the Borough of Enfield is an area

0:31:100:31:12

that's undergone a lot of changes over the years.

0:31:120:31:15

# It meant a lot to the locals on

0:31:150:31:18

# Edmonton Green... #

0:31:180:31:22

The Edmonton Green part of the area

0:31:250:31:27

is currently the subject of a £100 million development,

0:31:270:31:30

so it's certainly a place on the up.

0:31:300:31:32

Well, I'm at the northern end of Edmonton,

0:31:340:31:37

here to see a three-roomed flat,

0:31:370:31:40

which had a guide price of £100,000 plus.

0:31:400:31:46

Sounds reasonable.

0:31:460:31:48

Probably be a catch. Usually is.

0:31:480:31:50

# Always look on the bright side of life... #

0:31:500:31:55

Don't be such a pessimist, I hear you cry.

0:31:550:31:58

But come on, there has to be a catch.

0:31:580:32:00

Through your own little entrance and up your stairs.

0:32:010:32:04

Notice that the loft hatch is open here

0:32:040:32:06

and the loft looks quite reasonable.

0:32:060:32:07

So, one of the things you might consider doing is extending upwards.

0:32:070:32:11

Create a dormer bedroom up there.

0:32:110:32:13

The problem is that this is a leasehold flat,

0:32:130:32:16

so before you do anything substantial like that

0:32:160:32:18

you need to get the approval of the freeholder.

0:32:180:32:21

It might be possible to convert it into a liveable space.

0:32:210:32:26

As always, speak to planning and the freeholder

0:32:260:32:29

before getting too excited.

0:32:290:32:30

If you could, though,

0:32:300:32:32

it would really increase the floor space and the value of this flat.

0:32:320:32:36

# We'll sit up there

0:32:360:32:39

# And watch the world go by

0:32:400:32:43

# The world go by

0:32:430:32:45

# When we find

0:32:450:32:48

# That long-lost gold mine in the sky... #

0:32:480:32:54

As I said earlier, this is described as a three-roomed flat

0:32:540:32:58

and this, at present, is an office.

0:32:580:33:00

Maybe the catch is it's not big enough

0:33:000:33:03

to be classified as a single bedroom.

0:33:030:33:06

This is the bigger of the bedrooms.

0:33:060:33:08

Nice bit of, oh, yes, OK, Egyptian artwork on the walls.

0:33:080:33:11

It's not bad. I mean, whole place is a bit tired and dated.

0:33:110:33:14

Looks like the electrics could do with updating.

0:33:140:33:16

You've got surface-mounted sockets there and wires all over the place.

0:33:160:33:20

It doesn't look to have central heating. Single-glazed windows.

0:33:200:33:24

So, obviously a major process of refurbishment required.

0:33:240:33:28

But it's not bad. It's got a good feel to it.

0:33:280:33:31

Although the presence of storage heaters

0:33:330:33:36

suggests there might not be gas, either

0:33:360:33:38

and that could mean another call with the freeholder

0:33:380:33:41

for permission and a fair amount of cost as well.

0:33:410:33:44

Your bathroom there definitely needs refurbishment.

0:33:460:33:48

And then through into this room,

0:33:480:33:50

which is your main living accommodation.

0:33:500:33:52

It's actually a really nice-sized space, this,

0:33:520:33:54

especially as you come through this way through to your kitchen.

0:33:540:33:57

Clearly seen better days

0:33:570:33:59

but I like the location.

0:33:590:34:01

Probably stick a few more windows in here

0:34:010:34:04

but, apart from that, I think it practically works very well,

0:34:040:34:07

especially as through that back door there,

0:34:070:34:09

out onto a little terrace.

0:34:090:34:11

So, all in all, you know, for that 100 grand plus guide price,

0:34:110:34:15

a lot of flat for the money.

0:34:150:34:17

There's even a fantastic bonus outside.

0:34:170:34:19

Well, outdoor space in London flats, especially, is always a lovely thing

0:34:190:34:26

to have, and obviously it brings a real premium to the property.

0:34:260:34:29

So, what's this one got?

0:34:290:34:30

Well, it's got this little terraced area

0:34:300:34:33

and then it comes with its very own jungle,

0:34:330:34:35

because everything you can see there that's green

0:34:350:34:38

is actually part of the garden.

0:34:380:34:40

Your own little stairway at the back here, which leads down to that,

0:34:400:34:42

so get somebody in and get it sorted.

0:34:420:34:45

The thing which you don't normally have in flats,

0:34:450:34:47

that bit of outside space, you've got it, so a real big bonus.

0:34:470:34:50

OK, so it all needs a bit of work

0:34:500:34:52

and you'd need a machete to access the outside space.

0:34:520:34:55

# It's a jungle out there! #

0:34:550:34:59

But it's got a fairly doable interior,

0:34:590:35:02

potential for expansion upwards,

0:35:020:35:05

and a guide price of 100,000.

0:35:050:35:07

Of course, there must be a catch.

0:35:070:35:09

But wait for it, first, before we go there,

0:35:090:35:11

time to knock a bit of interior design.

0:35:110:35:14

Two final things that are a bit of a concern with this flat, however.

0:35:160:35:19

At the top of the stairs, glass.

0:35:190:35:21

Now, that is not safety glass.

0:35:210:35:23

It's a potential disaster waiting to happen.

0:35:230:35:26

So, replace that as soon as you move in here with safety glass,

0:35:260:35:30

or just something else. It just doesn't work.

0:35:300:35:32

The second thing is something which is in the legal pack

0:35:320:35:35

but you have to make sure that you read it,

0:35:350:35:38

and that is that this place has got a 42-year lease remaining.

0:35:380:35:42

Now, for a lot of mortgage providers that isn't long enough

0:35:420:35:45

so you'd have to renegotiate that lease

0:35:450:35:47

before you were able to get a mortgage,

0:35:470:35:50

which means it's either a cash buyer,

0:35:500:35:52

or somebody who is willing to do a very quick deal with the freeholder.

0:35:520:35:55

Time to get the lowdown from a local property expert.

0:35:580:36:00

First of all, the high point of this flat,

0:36:000:36:03

is it the right idea to build a dormer in the loft?

0:36:030:36:06

I don't think extending into the loft

0:36:080:36:10

is really something that's going to be allowed

0:36:100:36:12

from a planning perspective,

0:36:120:36:14

although it would create extra space if it was done.

0:36:140:36:18

I think the property needs, obviously, a complete refurb.

0:36:180:36:20

New kitchen, new bathroom, double glazing, central heating,

0:36:200:36:23

electrics checked.

0:36:230:36:24

The cost of bringing it up to top standard's

0:36:240:36:29

going to be about £15,000.

0:36:290:36:32

OK, and what about the cost of extending the lease?

0:36:320:36:34

To extend the lease of 42 years

0:36:350:36:37

is going to cost something around £80,000.

0:36:370:36:40

And what could it fetch for sales and lettings?

0:36:400:36:43

The resale value would be £280,000 and the rental value

0:36:440:36:48

will be £1,300 per calendar month.

0:36:480:36:50

Well, it's a nice little flat

0:36:530:36:54

that just needs a good programme of rejuvenation to sort it out.

0:36:540:36:58

Oh, and a big lot of cutting down trees in the garden.

0:36:580:37:01

However, the biggest issue with this one is, of course,

0:37:010:37:03

that short 42-year lease.

0:37:030:37:06

It would have been in the legal pack but if you hadn't read it, blimey,

0:37:060:37:10

it could really catch you out.

0:37:100:37:12

Let's see what happened when it went under the hammer.

0:37:120:37:15

Lot 58B is Edmonton, good area to invest in.

0:37:150:37:19

So, kick off at 90 on this one.

0:37:190:37:22

90,000 in the front.

0:37:230:37:25

95 with you.

0:37:250:37:27

100?

0:37:270:37:28

Plenty of interest here. We rejoin the bidding at 160,000.

0:37:280:37:32

160?

0:37:320:37:33

155 standing up. 160 on the phone.

0:37:350:37:37

157. 159,

0:37:370:37:41

in the room.

0:37:410:37:42

161.

0:37:420:37:43

163. 165.

0:37:430:37:46

167?

0:37:470:37:49

Another go? 165, sitting down.

0:37:490:37:52

First time, second time, third and last time.

0:37:520:37:55

If you're all done, sold. 165.

0:37:550:37:59

Paying 65 grand over the guide price were Rohema and her husband Mujibah.

0:37:590:38:05

They've both appeared on the show before

0:38:050:38:07

when they made their first auction purchase in East Ham.

0:38:070:38:11

Then they told Lucy what got them started.

0:38:110:38:13

Did you think you would get this flat on the day?

0:38:140:38:17

Didn't think that we would get it.

0:38:170:38:18

So what happened? How did you end up walking away with the flat?

0:38:180:38:21

I think it's your programme inspired us and we raised a hand

0:38:210:38:24

and we started.

0:38:240:38:25

Things have moved on since then,

0:38:270:38:29

as Mujibah has gone full-time at property development,

0:38:290:38:32

using his skills as a builder.

0:38:320:38:34

Mujibah, Rohema, lovely to meet you both.

0:38:340:38:36

Tell me why you wanted to buy this flat.

0:38:360:38:38

Because of location and the renting in this area is very good.

0:38:380:38:42

You know the area quite well, do you?

0:38:420:38:44

Yes, yes, we do.

0:38:440:38:45

We did our research, yeah.

0:38:450:38:47

So, when you're looking for houses to buy, what do you look for?

0:38:470:38:50

We look for something doing renovation

0:38:500:38:53

because I'm very interested to do with renovating and everything,

0:38:530:38:57

-because I enjoy myself doing this.

-You personally?

-Yes.

-Oh, wow.

0:38:570:39:01

What else do you look for?

0:39:010:39:02

I look for the rental income,

0:39:020:39:04

location where we can make more profit.

0:39:040:39:06

So what was it, then, you liked about this house?

0:39:060:39:09

This house, actually, we didn't see before.

0:39:090:39:12

-Oh, really?

-Yeah.

0:39:120:39:13

So, you haven't seen the flat before you bought it?

0:39:130:39:15

-No. No.

-When we went to auction we went for a different property.

0:39:150:39:18

-Oh.

-And unfortunately that property price wasn't matching our budget,

0:39:180:39:23

so we actually dropped it

0:39:230:39:25

and we just quickly thought we'll go for something else.

0:39:250:39:29

They may be fans of the show but they've broken a golden rule,

0:39:290:39:33

since they didn't view before buying.

0:39:330:39:36

I'm hopeful they did, at least, read the legal pack.

0:39:360:39:38

-We read...

-The legal pack.

-..the legal pack.

0:39:400:39:44

Quickly on the day.

0:39:440:39:46

We searched the area's prices of the houses

0:39:460:39:49

and we just thought it would give us a good profit, so let's go for it.

0:39:490:39:53

So, tell me what you're going to do with it.

0:39:530:39:56

It's basically everything

0:39:560:39:57

I have to do because there is no gas.

0:39:570:39:59

There is just a box outside, so then no gas connected to the house,

0:39:590:40:03

so I'm need to get the gas boiler again.

0:40:030:40:08

No central heating, no nothing in here.

0:40:080:40:10

So, I have to do the central heating and the double glazing,

0:40:100:40:13

replastering, take the ceiling down, and everything,

0:40:130:40:17

new bathroom, kitchen. Complete refurbish. I have to do.

0:40:170:40:20

And the garden, obviously, is junk.

0:40:200:40:23

-Yes!

-I have to clean this mess.

0:40:230:40:25

How are you going to get rid of all that stuff in the garden?

0:40:250:40:28

We already contacted the gardeners

0:40:280:40:31

-and they're going to come and clear it for us.

-Are they? Wow.

0:40:310:40:35

So, what about internal layout? Any plans for the internal layout?

0:40:350:40:38

We might do the loft conversion.

0:40:380:40:41

-OK.

-So, we already started speaking with the freeholder

0:40:410:40:44

and, kind of, getting agreement to do the loft.

0:40:440:40:47

So, we might extend another two beds upstairs.

0:40:470:40:50

Two beds upstairs, OK.

0:40:500:40:52

Just by putting dormers in, or something like that?

0:40:520:40:55

-Yeah, yeah.

-Yeah.

-We have to put a dormer in.

0:40:550:40:58

The freeholder already agreed,

0:40:580:41:00

but main concern about the council.

0:41:000:41:03

We have to apply the planning permission,

0:41:030:41:06

so, if council allow us, we will do it in the future.

0:41:060:41:09

Sometimes the freeholder will charge you for that.

0:41:090:41:11

-Yes.

-Yeah.

-Are they charging?

0:41:110:41:13

-They are charging.

-Did they say how much?

-They will charge 10,000 for..

0:41:130:41:17

Getting the permission, yeah.

0:41:170:41:19

To allow you to do that?

0:41:190:41:20

-Yeah.

-Yeah.

-Presumably because it's adding value to the house.

0:41:200:41:23

-Yes.

-Yeah.

-If you sell the leasehold in the future, then you benefit.

0:41:230:41:27

Yeah, 10,000 is reasonable.

0:41:270:41:29

Yeah, well, it sounds OK.

0:41:290:41:31

What about the cost of doing that conversion?

0:41:310:41:33

-Any idea what that's going to cost?

-Most of the work I do myself,

0:41:330:41:36

so within 35,000 I can do the loft conversion.

0:41:360:41:40

They have a budget of 25,000 to 30,000 for the rest of the flat.

0:41:410:41:44

And think three to four months will have it ready to rent

0:41:440:41:48

with Mujibah doing most of the work.

0:41:480:41:51

Since they've had a chat with the freeholder,

0:41:510:41:53

I hope the subject of the short lease came up.

0:41:530:41:56

We saw in the legal pack this lease is very short.

0:41:580:42:01

-Yeah.

-So, I have to do the lease extension, as well, for selling

0:42:010:42:04

but I'm not thinking to sell it now

0:42:040:42:06

because rental income is a very good return,

0:42:060:42:08

-so I'll keep it.

-Are you going to extend the lease at all, or not?

0:42:080:42:11

I will, I will later.

0:42:110:42:12

-Do you know how much it's going to cost to extend the lease?

-25,000 to 30,000.

0:42:120:42:16

Right, OK. But that would put

0:42:160:42:18

-a 99-year lease on this?

-No, 125 years.

0:42:180:42:20

Oh, would it be? OK. What's your involvement at this stage?

0:42:200:42:23

Just doing, you know, helping them, the team, choosing the materials,

0:42:230:42:28

colours, decorating, painting, and sometimes making the tea for them.

0:42:280:42:32

-Yeah.

-Moral support, as well.

0:42:320:42:34

That's good. Well, listen, congratulations.

0:42:340:42:36

Good luck with it.

0:42:360:42:37

-Thank you.

-Look forward to seeing how you get on.

0:42:370:42:40

Thank you very much. Thank you.

0:42:400:42:41

Well, nothing seems to faze our property developing couple.

0:42:410:42:46

How will they get on?

0:42:460:42:48

Lots of discussions to be had with the freeholder.

0:42:480:42:51

It seems like those have been reasonably successful, though,

0:42:510:42:54

so that is good news because it was one of my big worries.

0:42:540:42:57

How will everything turn out?

0:42:570:42:59

You can find out later in the show.

0:42:590:43:01

So, we've seen the outcome for one of today's properties.

0:43:050:43:07

What about the other two?

0:43:070:43:09

Yes, have our buyers been ringing the changes,

0:43:090:43:11

or is it a case of same old, same old?

0:43:110:43:13

Time to return now to the seaside town of Herne Bay on the Kent coast

0:43:170:43:21

where Lucy earlier saw this plot of land

0:43:210:43:24

with planning permission for two semidetached houses

0:43:240:43:27

and one fully detached one.

0:43:270:43:29

# Beach baby, beach baby... #

0:43:290:43:30

Whatever you build here will have that as a view.

0:43:300:43:35

-Gorgeous!

-The plot was bought by Galia for 304 grand,

0:43:350:43:40

£119,000 over the guide price.

0:43:400:43:44

But Galia was hoping to change the planning.

0:43:440:43:47

I'm actually going to submit the planning permission

0:43:470:43:50

to erect a detached property on the site,

0:43:500:43:53

utilising all the potential space there.

0:43:530:43:56

And, actually, run a retreat there.

0:43:560:43:59

Galia already had a detox, weight loss, and fitness retreat in Sussex

0:43:590:44:04

and she felt the up-and-coming Herne Bay area

0:44:040:44:06

would be an attractive addition to the business.

0:44:060:44:09

But she would require change of use

0:44:090:44:12

from residential to commercial

0:44:120:44:14

and Galia had also bought a former Victorian toilet block

0:44:140:44:17

further down the beach,

0:44:170:44:19

hoping to add a facility like a gymnasium

0:44:190:44:21

to the planned retreat mix.

0:44:210:44:23

Everything was dependent on planning.

0:44:230:44:26

How many storeys could the retreat have

0:44:260:44:28

and could a basement be allowed?

0:44:280:44:30

She knew one thing, she would like a grand nautical facade.

0:44:300:44:33

And I'm going to probably call this place, not a boot camp,

0:44:350:44:38

but a boat camp

0:44:380:44:40

because I'm going to probably build it in the shape of the boat.

0:44:400:44:43

Galia thought the small retreat would be completed in a year.

0:44:430:44:47

Well, we're back just over four years later.

0:44:510:44:54

There are a few boats camped there

0:44:540:44:57

but not exactly what Galia had in mind.

0:44:570:45:00

The first planning application failed

0:45:030:45:05

but eventually Galia has obtained permission for a smaller building

0:45:050:45:09

more sympathetic in design to the other properties

0:45:090:45:12

on the seafront, including her own toilet block.

0:45:120:45:15

And, of course, the icing on the cake

0:45:170:45:19

is the close proximity of this plot to the Victorian toilet,

0:45:190:45:24

the white building over there.

0:45:240:45:25

We're going to integrate both of them.

0:45:250:45:28

I can use the same staff working in both locations,

0:45:280:45:32

it's easy to reach,

0:45:320:45:33

and both of them facing this beautiful, sort of, set-up.

0:45:330:45:36

In between the failed planning permission application

0:45:360:45:39

and the current ones that have passed,

0:45:390:45:42

Galia continued to grow the business

0:45:420:45:44

by creating a 15-bedroom retreat in Devon.

0:45:440:45:47

The minute I exchanged the contract on the Devon retreat,

0:45:480:45:52

on the very same day, the council granted me the permission

0:45:520:45:55

for the plot of land to convert it to the retreat,

0:45:550:45:59

and you think, "Oh, my God, you've got two retreats."

0:45:590:46:01

"You've got that one and you've got that one, what are you going to do?"

0:46:010:46:04

So, yeah, I thought, OK, 15-bedroom here, seven-bedroom here,

0:46:040:46:09

let's do the 15-bedroom first, fill that in with the guests,

0:46:090:46:13

get the money, go back to seven bedrooms.

0:46:130:46:15

Galia had further delays due to a forest coming up for sale

0:46:150:46:19

opposite her main Sussex retreat.

0:46:190:46:21

So, I absolutely had to go and buy that forest and...

0:46:210:46:26

..and it still stays as a forest,

0:46:260:46:27

so we made some paths there and my guests just walk in the forest.

0:46:270:46:32

Having dealt with those distractions,

0:46:340:46:36

what are the plans going forward here in Herne Bay?

0:46:360:46:40

I'm very much hoping to start the building project

0:46:400:46:44

on the plot in about six months' time.

0:46:440:46:47

And it's quite exciting to now work out on the minor details,

0:46:470:46:51

like the nautical theme of the retreat, lovely little features,

0:46:510:46:56

colour of the curtains,

0:46:560:46:58

maybe bunk beds to make it look like it's a ship inside,

0:46:580:47:02

so that, you know, you feel quite excited.

0:47:020:47:05

You see the water outside

0:47:050:47:07

and, inside, you feel you're on the ship sailing into unknown.

0:47:070:47:12

Was it a case of sailing into the unknown

0:47:120:47:15

with a £250,000 to £350,000 budget forecast?

0:47:150:47:19

So far I've spent about £15,000 on architects

0:47:190:47:24

and various other fees to obtain those permissions,

0:47:240:47:27

and I anticipate to spend another £200,000.

0:47:270:47:33

Galia spent 304,000 at auction

0:47:330:47:36

and has spent another 15 on plans for the retreat.

0:47:360:47:39

We called in a local estate agent

0:47:390:47:41

for his specialist knowledge of the area and the plot.

0:47:410:47:44

What's his view?

0:47:440:47:46

It's so unique and I can't think of anything else, really,

0:47:470:47:49

on the Kent coast that it compares with,

0:47:490:47:53

particularly the scale of the building.

0:47:530:47:55

If you're talking about a larger building

0:47:550:47:57

and larger premises there are probably

0:47:570:47:59

ones that would compete with it,

0:47:590:48:00

but it is quite unique, in terms of its scale.

0:48:000:48:03

I think, if I was the investor,

0:48:030:48:05

I'd probably stick to the safer option

0:48:050:48:07

of selling it as residential, rather than the commercial.

0:48:070:48:11

I think there's a bigger market

0:48:110:48:12

and the returns would probably be higher.

0:48:120:48:14

Has the £319,000 total investment

0:48:140:48:17

grown over the time since the plot was purchased?

0:48:170:48:19

If I was trying to sell this plot of land, today,

0:48:190:48:22

you're probably looking around 300,000, maybe 350,

0:48:220:48:25

that sort of area.

0:48:250:48:27

So, you need to have, actually, an imagination

0:48:270:48:29

to see this car park as a plot of land.

0:48:290:48:34

Well, I haven't lost any money.

0:48:340:48:36

Adding Galia's added £200,000 build costs

0:48:360:48:39

to the costs so far gives a total of 519,000.

0:48:390:48:44

What could the building sell for when completed?

0:48:440:48:47

Probably looking at a resale value freehold of around £750,000.

0:48:470:48:52

That is a potential pre-tax profit of 231,000.

0:48:520:48:57

I think 750

0:48:570:49:00

is certainly the correct figure,

0:49:000:49:04

actually, once it's done and finished.

0:49:040:49:06

Even with that figure in mind, I'm already making profit.

0:49:060:49:11

We know Galia's mission

0:49:110:49:13

is for a bespoke bijou health and fitness retreat,

0:49:130:49:16

but let's look at the commercial rental rate.

0:49:160:49:19

If she tried to rent it out, £25,000 to £30,000 per annum.

0:49:190:49:22

Which equates to an annual yield of just under 6%.

0:49:220:49:26

But for Galia it's not just about the money.

0:49:260:49:28

So, for me the views and the whole aspect of that plot is priceless.

0:49:300:49:36

What sort of properties will Galia be looking out for,

0:49:360:49:40

once this project is complete?

0:49:400:49:43

I'm looking for, you know, disused Victorian toilets,

0:49:430:49:46

or something extremely unusual.

0:49:460:49:48

A castle?

0:49:480:49:50

Well, there is one just a little bit further along from the toilet block.

0:49:510:49:55

Any personal ambitions?

0:49:550:49:57

I have this option of taking part in all sorts of activities

0:49:570:50:00

that are run at my retreat

0:50:000:50:02

but, personally, I would like to learn how to do ballroom dancing,

0:50:020:50:07

and after that I'm going to study French.

0:50:070:50:10

What specific regimes will be on offer to the clients once the retreat is complete?

0:50:100:50:15

Walking on the pebbles barefoot, swimming in the sea all-weather,

0:50:150:50:20

eating the seaweed.

0:50:200:50:22

How exciting!

0:50:220:50:23

I'm sure that sounds like a seaside idyll for some.

0:50:250:50:27

Others might prefer a hot sandy beach, though.

0:50:270:50:30

I guess it's horses for courses.

0:50:300:50:32

Seahorses, of course.

0:50:330:50:34

We return now to Edmonton Green in the London Borough of Enfield,

0:50:400:50:44

where earlier I looked around this three-room first-floor flat,

0:50:440:50:48

bought at auction for 165 grand.

0:50:480:50:51

Your bathroom there definitely needs refurbishment.

0:50:520:50:55

And then through into this room,

0:50:550:50:56

which is your main living accommodation.

0:50:560:50:58

This is a nice living area,

0:50:580:51:00

especially as you come through this way through to your kitchen.

0:51:000:51:03

Clearly seen better days.

0:51:030:51:05

Probably stick a few more windows in here,

0:51:050:51:07

but, apart from that, I think it practically works very well,

0:51:070:51:10

especially as it's through that back door there

0:51:100:51:12

out on to a little terrace.

0:51:120:51:14

And the added bonus was this jungle.

0:51:140:51:16

Outside space in London is always something that comes at a premium,

0:51:160:51:20

so why was this flat guided at 100 grand?

0:51:200:51:23

Yes, there was a catch.

0:51:230:51:25

A short 42-year lease.

0:51:250:51:27

It was bought by Rohema and her husband Mujibah,

0:51:270:51:31

who weren't too concerned about the short lease,

0:51:310:51:34

as they were adding this to their rental portfolio.

0:51:340:51:38

-What do you look for?

-We look for something,

0:51:380:51:41

I'm very interested to do with renovating and everything,

0:51:410:51:44

because I enjoy myself doing this.

0:51:440:51:47

I look for the rental income, location,

0:51:470:51:49

-where we can make more profit.

-Right.

0:51:490:51:51

It's an approach they've found very profitable over the years.

0:51:510:51:56

But I was interested to see what changes they would bring

0:51:560:51:58

to this property, which they bought without seeing inside.

0:51:580:52:03

So, I have to do the central heating, the double glazing, replastering,

0:52:030:52:08

take the ceiling down and everything, new bathroom, kitchen,

0:52:080:52:11

and the garden, obviously, is junk.

0:52:110:52:14

-Yes!

-I have to clean this mess.

0:52:140:52:16

They thought it would take three to four months to do the refurbishment

0:52:160:52:20

and were looking into the feasibility

0:52:200:52:21

of extending into the roof space with another two bedrooms.

0:52:210:52:25

Well, we're back five months later, and let's start with that jungle.

0:52:250:52:29

Underneath it they found a garden

0:52:310:52:33

which, after calling in landscapers, turned out nice again.

0:52:330:52:36

What about the interior?

0:52:380:52:40

# And I'm picking up the pieces I want to cry

0:52:400:52:43

# But you don't see that I'm the one by your side... #

0:52:430:52:50

There's a list of new things.

0:52:500:52:52

New gas supply for the house and central heating,

0:52:520:52:55

new flooring, and a new fuse box and a rewire.

0:52:550:52:58

# And I'm picking up the pieces... #

0:53:000:53:04

A lot of unwanted pieces have been picked up.

0:53:040:53:07

# I found a photograph

0:53:070:53:10

# Behind the TV... #

0:53:100:53:14

It's much tidier.

0:53:140:53:17

# Are you missing the way it used to be?

0:53:170:53:21

# And I have changed this room around more often lately... #

0:53:210:53:27

The new list continues with new doors and new plasterboard

0:53:290:53:31

and skimmed ceilings.

0:53:310:53:33

But not until they'd called someone in to fix a roof leak

0:53:330:53:36

and not forgetting, of course, there's a new bathroom.

0:53:360:53:39

When we last saw them, the couple were planning a loft extension

0:53:440:53:48

and weren't in a great hurry to extend the 42-year lease,

0:53:480:53:51

as they were letting the flat.

0:53:510:53:53

But recent developments have changed that.

0:53:530:53:55

# And I'm picking up the pieces she left behind. #

0:53:590:54:02

Over to Rohema to take up the story.

0:54:060:54:09

While we was doing the work the ground floor vendor

0:54:100:54:13

showed interest to sell the property,

0:54:130:54:16

so we just thought, you know, we can get a good deal

0:54:160:54:19

and he actually sold the property to us

0:54:190:54:21

below the market value, so that was good.

0:54:210:54:24

Owning the upstairs and downstairs flat

0:54:250:54:28

makes applying for the freehold a much simpler legal process.

0:54:280:54:31

It's still expensive but they've saved money

0:54:310:54:34

by holding off on the loft conversion.

0:54:340:54:38

We're not going to do the loft conversion now.

0:54:380:54:40

Once we get the freehold, then we'll think do loft conversion,

0:54:400:54:44

or move on to another project.

0:54:440:54:47

We have researched the market

0:54:470:54:49

and found out there is more demand for two-bedroom houses, or flats,

0:54:490:54:53

and our downstairs is already rented out,

0:54:530:54:57

and upstairs is already rented out.

0:54:570:55:00

If further proof were needed,

0:55:000:55:01

clearly these two don't let the grass grow under their feet.

0:55:010:55:05

How was it clearing the garden?

0:55:050:55:07

It took us about two days to clear.

0:55:070:55:09

Everything was just dumped in there,

0:55:090:55:11

so we actually hired three skips to clear them.

0:55:110:55:15

Once was everything cleared, we actually found out

0:55:150:55:19

there's built... A shed was there.

0:55:190:55:21

There was nice old tiles was there.

0:55:210:55:24

So, the garden was done

0:55:240:55:26

but was hidden under the jungle and the rubble and old furniture.

0:55:260:55:31

Were there any arguments along the way?

0:55:310:55:33

Definitely, definitely.

0:55:330:55:35

There was lots of arguments and disagreements

0:55:350:55:39

with the colours, with the sizes.

0:55:390:55:42

Sometimes just the stress and the pressure, yeah.

0:55:420:55:47

What about the three- to four-month timescale?

0:55:470:55:50

It's ended up 16 weeks because we bought the ground floor flat.

0:55:500:55:54

So we was doing the work there, so that's why it took 16 weeks.

0:55:540:56:00

And the £25,000 to £30,000 budget forecast?

0:56:000:56:04

With everything, it's 19,000.

0:56:040:56:08

Not...

0:56:080:56:09

It didn't exceed 19, innit?

0:56:090:56:12

-Yeah, just...

-19,000.

-..19,000.

0:56:120:56:15

We called in two local estate agents

0:56:150:56:17

to get their opinions and evaluations.

0:56:170:56:20

Mujibah and Rohema bought upstairs for 165 grand

0:56:200:56:24

and spent 19 more refurbishing it.

0:56:240:56:27

It's been done to a good standard.

0:56:270:56:30

A lot of people will be interested in the property.

0:56:300:56:32

A lot of neutral colours, playing safe with magnolia white walls.

0:56:320:56:37

It would be a good property for the rental market

0:56:370:56:39

and also the selling market,

0:56:390:56:41

depending what options the landlords go for.

0:56:410:56:43

And the agent who saw the property before the work began.

0:56:430:56:46

It's my second time inside the property.

0:56:460:56:48

Cor, there's been fantastic changes.

0:56:480:56:50

It doesn't look like the same place.

0:56:500:56:52

Shows really, really well now.

0:56:520:56:54

It's a popular property, anyway, this type of accommodation.

0:56:540:56:57

But it's been done up and it looks spectacular.

0:56:570:57:01

We know this is going straight to rent

0:57:010:57:03

but what potential profit could they realise

0:57:030:57:06

if they sold their £184,000 investment on the open market?

0:57:060:57:10

Well, the agents' values varied between 250,000 and 285,000.

0:57:100:57:15

What do you make of that?

0:57:150:57:16

-Yeah.

-285 is a reasonable price, I think,

0:57:180:57:21

because recently we bought a ground floor

0:57:210:57:25

and it was in-between 250 and 285.

0:57:250:57:27

So, if they sold, that could mean a potential profit of around £100,000

0:57:270:57:31

minus taxes and any fees, including extending that lease.

0:57:310:57:36

So, what about the all-important rental?

0:57:360:57:39

The rental would be about £1,250 per calendar month.

0:57:390:57:43

Rental should be around £1,250 per calendar month

0:57:430:57:47

to £1,300 per calendar month.

0:57:470:57:49

We already rent out the same, actually, so, with the price range.

0:57:490:57:54

For 1,250, yeah.

0:57:540:57:56

On this upper flat they spent 184,000,

0:57:560:58:00

so that £1,250 per calendar month gives a yield of just over 8%.

0:58:000:58:06

But will they continue with the buy-to-let model?

0:58:060:58:10

This is my job the last 12 years... 14 years I'm doing this.

0:58:100:58:14

So, yeah, I'll continue.

0:58:140:58:15

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

0:58:190:58:21

Do you think our buyers made some mistakes,

0:58:210:58:23

or did they get it right from beginning to end?

0:58:230:58:25

Don't worry, we've got plenty more stories in the pipeline,

0:58:250:58:28

so join us next time on Homes Under The Hammer.

0:58:280:58:30

-Goodbye.

-Bye-bye.

0:58:300:58:31

Download Subtitles

SRT

ASS