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Hello, and welcome to the show. | 0:00:02 | 0:00:03 | |
Now, if you want the best possible return on an investment, | 0:00:03 | 0:00:06 | |
then property is definitely worth considering. | 0:00:06 | 0:00:09 | |
Yes, but making money is not a foregone conclusion. | 0:00:09 | 0:00:13 | |
One way to stack things in your favour, though, | 0:00:13 | 0:00:15 | |
is to head down to your local property auction. | 0:00:15 | 0:00:17 | |
Well, when you buy at auction you have options. | 0:00:43 | 0:00:46 | |
Do you do up and sell on, | 0:00:46 | 0:00:48 | |
or do you do a refurbishment and then rent it out? | 0:00:48 | 0:00:52 | |
You may even end up loving it so much it becomes your dream home. | 0:00:52 | 0:00:56 | |
Let's find out what today's buyers did when they went to auction. | 0:00:56 | 0:00:59 | |
In Doncaster, South Yorkshire, this three-bed semi has a semi-archway. | 0:01:00 | 0:01:06 | |
Any quirks are good, adds to a house - the feeling, the character. | 0:01:06 | 0:01:09 | |
In Herne Bay, Kent, Lucy looks at a plot with promising panoramas. | 0:01:10 | 0:01:14 | |
Whatever you build here will have that as a view. | 0:01:14 | 0:01:19 | |
And in the Edmonton area of London, | 0:01:19 | 0:01:22 | |
there could be lofty aspirations in this three-roomed first-floor flat. | 0:01:22 | 0:01:26 | |
One of the things you might consider doing is extending upwards. | 0:01:26 | 0:01:30 | |
All these properties have been sold at auction, and we'll find out | 0:01:32 | 0:01:35 | |
who bought them and what they paid for them | 0:01:35 | 0:01:37 | |
when they went under the hammer. | 0:01:37 | 0:01:39 | |
Sold. | 0:01:39 | 0:01:41 | |
South Yorkshire now, and the town of Doncaster. | 0:01:44 | 0:01:48 | |
Once a powerhouse of the industrial north, | 0:01:48 | 0:01:50 | |
Doncaster can lay claim to two famous landmarks. | 0:01:50 | 0:01:54 | |
Westminster Abbey was created by | 0:01:54 | 0:01:56 | |
Doncaster-born architect John Francis Bentley, | 0:01:56 | 0:02:00 | |
and the clock in Big Ben by Edmund Beckett Denison, | 0:02:00 | 0:02:04 | |
also a Doncaster lad. | 0:02:04 | 0:02:05 | |
Time for us to get hands-on with our property. | 0:02:05 | 0:02:08 | |
It's always great to have a lovely big park outside your house. | 0:02:10 | 0:02:14 | |
Not so great when you've got a dual carriageway in between. | 0:02:14 | 0:02:17 | |
But location-wise, the property I'm here to see | 0:02:17 | 0:02:20 | |
is just a mile away from the town centre, | 0:02:20 | 0:02:22 | |
which could be great news for the rental market. | 0:02:22 | 0:02:24 | |
This is the property. | 0:02:24 | 0:02:25 | |
Oh, and I also spotted some off-street parking, which is good. | 0:02:25 | 0:02:28 | |
The property has three bedrooms and a guide price of £45,000 plus. | 0:02:28 | 0:02:33 | |
Let's go look. | 0:02:33 | 0:02:34 | |
It's a family house, but would a family with young kids want to live | 0:02:36 | 0:02:40 | |
on a very busy dual carriageway, even with a park on the other side? | 0:02:40 | 0:02:45 | |
# Park life... # | 0:02:45 | 0:02:46 | |
I'm not sure I would. | 0:02:46 | 0:02:49 | |
Into our hallway. | 0:02:49 | 0:02:51 | |
Now, the very first area of the hallway is under the stairs. | 0:02:51 | 0:02:55 | |
Dead space. If you like, you could get rid of this, | 0:02:55 | 0:02:58 | |
but actually some people like a wee bit of storage space | 0:02:58 | 0:03:00 | |
for their hoover, sometimes the washing machine, | 0:03:00 | 0:03:02 | |
keep it out of the kitchen. You have a very old fuse box there. | 0:03:02 | 0:03:06 | |
I'd imagine you'd struggle to get fuses for that. | 0:03:06 | 0:03:09 | |
Might need an upgrade. | 0:03:09 | 0:03:10 | |
A little toilet, doesn't have a sink, | 0:03:10 | 0:03:13 | |
but it's good to have your downstairs toilet. | 0:03:13 | 0:03:15 | |
Put a sink in there. | 0:03:15 | 0:03:17 | |
And the kitchen... | 0:03:17 | 0:03:19 | |
..it's actually a really good size. | 0:03:19 | 0:03:21 | |
You would need to replace the kitchen. Well, I say replace. | 0:03:21 | 0:03:24 | |
There's actually no kitchen in there. | 0:03:24 | 0:03:25 | |
You just need a new kitchen in. | 0:03:25 | 0:03:27 | |
Not much light coming in. | 0:03:27 | 0:03:28 | |
You could maximise light, maybe getting a different door, | 0:03:28 | 0:03:31 | |
more glass. But pretty small point. | 0:03:31 | 0:03:34 | |
Definitely enough room in there for sociable living, a dining table. | 0:03:34 | 0:03:39 | |
And then through to your reception area. | 0:03:39 | 0:03:42 | |
I can tell this has been two rooms knocked into one, | 0:03:42 | 0:03:45 | |
which gives a great sense of space. | 0:03:45 | 0:03:48 | |
And I don't hear any noise, considering how busy | 0:03:48 | 0:03:51 | |
that dual carriageway is. | 0:03:51 | 0:03:53 | |
There's double glazing, | 0:03:53 | 0:03:55 | |
and the double glazing is definitely doing its job. | 0:03:55 | 0:03:58 | |
The heating, you have central heating - good. | 0:03:58 | 0:04:01 | |
May well require an upgrade. | 0:04:01 | 0:04:03 | |
You'd want to get that checked out. | 0:04:03 | 0:04:05 | |
This has a feeling of a place that work has been started at, | 0:04:05 | 0:04:09 | |
and somebody's gone. | 0:04:09 | 0:04:11 | |
So, the ceiling paintwork is really new, | 0:04:11 | 0:04:14 | |
albeit dated, from the swirly plasterwork. | 0:04:14 | 0:04:18 | |
But all in all, a great start. | 0:04:18 | 0:04:20 | |
Yes, wallpaper has been stripped and painting's begun, | 0:04:21 | 0:04:24 | |
but that all begs the question - if they made a start, why did they stop? | 0:04:24 | 0:04:29 | |
Hopefully not because they unearthed unseen problems. | 0:04:31 | 0:04:34 | |
I can see as I come upstairs where work has already started. | 0:04:37 | 0:04:40 | |
So, wallpaper's been steamed off to expose the plasterwork, | 0:04:40 | 0:04:44 | |
which is in pretty good nick. | 0:04:44 | 0:04:46 | |
Wouldn't need a full plaster job. | 0:04:46 | 0:04:47 | |
It looks quite new, actually. | 0:04:47 | 0:04:49 | |
You might just get away with a skim. | 0:04:49 | 0:04:52 | |
And through to a bathroom. | 0:04:52 | 0:04:55 | |
Nice little flowers detail on the suite but that needs to come out, | 0:04:55 | 0:04:58 | |
modernise it. And then starting off with a really good-sized | 0:04:58 | 0:05:02 | |
child's bedroom. I can tell it's a child's bedroom, | 0:05:02 | 0:05:04 | |
some lovely paintings on the walls of castles. | 0:05:04 | 0:05:07 | |
Another bedroom is a very good size. | 0:05:07 | 0:05:10 | |
I like the design quirk of half an archway. | 0:05:10 | 0:05:13 | |
You may find that the chimney breast is next to it, so that the chimney | 0:05:13 | 0:05:17 | |
went off at an angle and therefore it's been designed around it. | 0:05:17 | 0:05:21 | |
Any quirks are good, adds to a house - the feeling, the character. | 0:05:21 | 0:05:24 | |
And through to your third bedroom, which again is a great size. | 0:05:24 | 0:05:28 | |
So often in three-beds one of the bedrooms is a bit of a compromise, | 0:05:28 | 0:05:32 | |
it's a box room, you might get away with a study or a cot. | 0:05:32 | 0:05:35 | |
But you could get a double bed comfortably into each of them. | 0:05:35 | 0:05:40 | |
I also like the floors because they're exposed, | 0:05:40 | 0:05:42 | |
and you could sand them, make a gorgeous original feature. | 0:05:42 | 0:05:46 | |
The ceilings are pretty much all painted new. | 0:05:46 | 0:05:49 | |
Some of the work's been done for you. | 0:05:49 | 0:05:52 | |
A lot still needs to be done, | 0:05:52 | 0:05:54 | |
but it strikes me that there's nothing too drastic here. | 0:05:54 | 0:05:58 | |
# I know that things could be | 0:06:01 | 0:06:04 | |
# Worse for me | 0:06:04 | 0:06:05 | |
# So I won't cry... # | 0:06:05 | 0:06:07 | |
The property itself is on a fair-size plot with a decent, | 0:06:07 | 0:06:11 | |
albeit overgrown, and not exactly private garden to the rear | 0:06:11 | 0:06:15 | |
and ample space to the side and front for that off-road parking | 0:06:15 | 0:06:19 | |
I mentioned earlier, which is essential when living | 0:06:19 | 0:06:22 | |
next to a dual carriageway. | 0:06:22 | 0:06:24 | |
That's the rub, really, here, isn't it? | 0:06:24 | 0:06:27 | |
Great size house but next to a big, busy road, | 0:06:27 | 0:06:30 | |
so not for everyone. | 0:06:30 | 0:06:33 | |
We asked along a local estate agent for his opinion on this property, | 0:06:33 | 0:06:37 | |
guided at £45,000 plus. | 0:06:37 | 0:06:39 | |
Generally, the property is in need | 0:06:41 | 0:06:43 | |
of pretty much a full refurbishment, | 0:06:43 | 0:06:45 | |
certainly a central heating system, maybe upgrading or a full rewire. | 0:06:45 | 0:06:49 | |
I think on a reasonable level, people could spend anywhere between | 0:06:49 | 0:06:52 | |
£10,000-£15,000 throughout the property, 20 at the absolute top. | 0:06:52 | 0:06:57 | |
We're in agreement there. | 0:06:57 | 0:06:58 | |
From top to bottom, this property needs plenty of work. | 0:06:58 | 0:07:01 | |
But would it be money well spent? | 0:07:01 | 0:07:04 | |
The property should achieve somewhere in the region of | 0:07:04 | 0:07:06 | |
£95,000-£100,000. | 0:07:06 | 0:07:09 | |
OK, what about rental? | 0:07:09 | 0:07:11 | |
With regards to the rent on the property, | 0:07:11 | 0:07:13 | |
in good condition, it should rent somewhere in the region of | 0:07:13 | 0:07:16 | |
£500-£550 per calendar month. | 0:07:16 | 0:07:21 | |
This is a good solid house that needs a lot of work doing. | 0:07:21 | 0:07:24 | |
Its location brings pluses and minuses. | 0:07:24 | 0:07:27 | |
That road could put some people off, but the location means | 0:07:27 | 0:07:30 | |
the rental market should be buoyant so close to town. | 0:07:30 | 0:07:33 | |
Let's find out who thought the pros outweighed the cons | 0:07:33 | 0:07:36 | |
when it went to auction. | 0:07:36 | 0:07:38 | |
A three-bedroom semidetached in need of a scheme of upgrading | 0:07:41 | 0:07:45 | |
and improvement. | 0:07:45 | 0:07:46 | |
We do have a telephone bid on this lot, and I also have | 0:07:46 | 0:07:49 | |
a commissioned bid. Where do you want to be with this? | 0:07:49 | 0:07:51 | |
Who has got £45,000 to open the bidding? | 0:07:51 | 0:07:54 | |
At 45,000 I have, thank you. 46 with me. | 0:07:54 | 0:07:58 | |
Commissioned bids are made by the auctioneer | 0:07:58 | 0:08:00 | |
on behalf of an absent bidder who has set a pre-agreed maximum. | 0:08:00 | 0:08:05 | |
We rejoin the bidding at 65 grand. | 0:08:05 | 0:08:07 | |
65. 66? No. | 0:08:07 | 0:08:10 | |
At £65,000 then, shan't dwell. | 0:08:10 | 0:08:13 | |
At the back of room, it's £65,000 | 0:08:13 | 0:08:16 | |
for the first time, for the second time, | 0:08:16 | 0:08:18 | |
sold. It's yours, sir, at £65,000. | 0:08:18 | 0:08:21 | |
That bid was made by car trader Adam. | 0:08:21 | 0:08:24 | |
He's developed property before but this was his first auction purchase. | 0:08:24 | 0:08:29 | |
Adam and girlfriend Emma have come along to tell us | 0:08:29 | 0:08:32 | |
why he's bought this three-bed semi for 20 grand over the guide price. | 0:08:32 | 0:08:37 | |
-Emma, pleased to meet you. -You, too. -Adam. | 0:08:40 | 0:08:43 | |
-Congratulations to you both. -Cheers, thank you very much. | 0:08:43 | 0:08:45 | |
-The guide price was 45,000. -Yes, that's right, yes. | 0:08:45 | 0:08:49 | |
And you got it for 65. So, were you happy going to that amount? | 0:08:49 | 0:08:53 | |
Would you have gone up further? | 0:08:53 | 0:08:54 | |
Well, it was at 63 and the auctioneer was going, | 0:08:54 | 0:08:58 | |
"Going once, going twice..." | 0:08:58 | 0:09:00 | |
But somebody put his hand up, so it went to 65. | 0:09:00 | 0:09:04 | |
I was gutted. It's obviously not just £1,000 I have to go up, | 0:09:04 | 0:09:07 | |
it's £2,000. So it was an extra £2,000 for me. | 0:09:07 | 0:09:10 | |
But 65, a little bit high... | 0:09:10 | 0:09:13 | |
..but I'm happy. All round, I'm happy. | 0:09:13 | 0:09:15 | |
This is Adam's second house, | 0:09:15 | 0:09:17 | |
and Emma's going to be helping him this time, | 0:09:17 | 0:09:19 | |
so I'm just going to be nosy. | 0:09:19 | 0:09:21 | |
How long have you two been together? | 0:09:21 | 0:09:23 | |
We've been together about six, seven months-ish now. | 0:09:23 | 0:09:26 | |
-It is six months, isn't it, baby? -Yeah. | 0:09:26 | 0:09:28 | |
Is this your first time developing property? | 0:09:28 | 0:09:31 | |
Uh, yes. Yeah. | 0:09:31 | 0:09:33 | |
I probably... I won't do much. | 0:09:33 | 0:09:35 | |
I don't know. I'll do a few things. | 0:09:35 | 0:09:38 | |
-Yeah. -Strip a bit of paper off. | 0:09:38 | 0:09:39 | |
-I told her she'll be doing the painting. -Yeah. | 0:09:39 | 0:09:41 | |
I've got her recorded on my phone agreeing that she's going to be | 0:09:41 | 0:09:44 | |
-doing the painting. -Yeah. -So, I've got evidence to back me up. | 0:09:44 | 0:09:47 | |
What's the history of this house? | 0:09:47 | 0:09:48 | |
cos it looks like a wee bit's been done and then abandoned. | 0:09:48 | 0:09:51 | |
Yeah, when we came in... | 0:09:51 | 0:09:53 | |
It worries me slightly, because somebody's already made an attempt | 0:09:53 | 0:09:57 | |
at this house. And I've had a look round, I can't see any damp. | 0:09:57 | 0:10:01 | |
It's looking good. | 0:10:01 | 0:10:02 | |
It just needs simple jobs doing, really. | 0:10:02 | 0:10:04 | |
But somebody's started this and then walked away. | 0:10:04 | 0:10:08 | |
-Why? -Yeah. | 0:10:08 | 0:10:09 | |
-That's what I'm thinking. -You're scared that they discovered | 0:10:09 | 0:10:12 | |
something and ran for the hills? | 0:10:12 | 0:10:13 | |
Yeah, any time now, any day, I'm going to pull off a piece of carpet, | 0:10:13 | 0:10:16 | |
pull off a piece of wallpaper and I'm going to find the surprise. | 0:10:16 | 0:10:19 | |
What are you thinking? What are your plans? | 0:10:19 | 0:10:23 | |
Plaster, or at least skim. Not everywhere needs plastering, | 0:10:23 | 0:10:26 | |
definitely at least a skim. | 0:10:26 | 0:10:27 | |
Paint, carpets, central heating system, get the electrics checked. | 0:10:27 | 0:10:32 | |
Bathrooms. There's a toilet upstairs and downstairs, | 0:10:32 | 0:10:35 | |
obviously a bathroom upstairs. The kitchen is a really good size. | 0:10:35 | 0:10:38 | |
Not quite big enough to get an island in but plenty of room, | 0:10:38 | 0:10:41 | |
plenty of size. I've thought about knocking a wall in through | 0:10:41 | 0:10:43 | |
-to the dining area. -Yeah. -To this room. But it's just cost. | 0:10:43 | 0:10:47 | |
Does it need it? Is the kitchen big enough? | 0:10:47 | 0:10:50 | |
Personally, I think it's going to be all right. | 0:10:50 | 0:10:52 | |
But those ideas are going round in my head, pondering. | 0:10:52 | 0:10:55 | |
I do want to keep costs down because this is going to be | 0:10:55 | 0:10:59 | |
looking like a renter. | 0:10:59 | 0:11:01 | |
Adam hopes to get the work done here for no more than 20 grand. | 0:11:01 | 0:11:05 | |
He'll be getting in professionals to do the skilled work but saving money | 0:11:05 | 0:11:09 | |
by doing the unskilled work, with a little help from Emma, hopefully. | 0:11:09 | 0:11:13 | |
Adam thinks a three-month timescale should do it. | 0:11:13 | 0:11:16 | |
Six months together... | 0:11:18 | 0:11:20 | |
You're going to be working together on this project, | 0:11:20 | 0:11:23 | |
so how do you get on? | 0:11:23 | 0:11:26 | |
He can be quite... You can be quite bossy. | 0:11:26 | 0:11:28 | |
-Mm-hm. -And I don't like being told what to do. | 0:11:28 | 0:11:30 | |
-Yeah. -It is like two bulls going... | 0:11:30 | 0:11:34 | |
-Yeah, maybe we clash a little bit. -We do. -But no, | 0:11:34 | 0:11:37 | |
when Emma's working she works hard and the only reason she'll stop | 0:11:37 | 0:11:40 | |
-is for a drink, or a sandwich, or a snack. -Yeah. | 0:11:40 | 0:11:42 | |
I do quite like interior design, don't I? | 0:11:42 | 0:11:44 | |
That kind of...that kind of thing. | 0:11:44 | 0:11:46 | |
But I think, obviously, you're not going to be doing too much. | 0:11:46 | 0:11:49 | |
-No, no. No. -I think it's just obviously picking | 0:11:49 | 0:11:51 | |
the colours of the paint and stuff like that. | 0:11:51 | 0:11:54 | |
So, I don't think it's going to be too extreme. | 0:11:54 | 0:11:56 | |
OK, I can't wait to see how you get on, guys. | 0:11:56 | 0:11:59 | |
-Thank you very much. -Hopefully, you're still speaking. | 0:11:59 | 0:12:02 | |
THEY LAUGH | 0:12:02 | 0:12:03 | |
Yeah, it might be a different girl when you come back. | 0:12:03 | 0:12:06 | |
A different helper. | 0:12:06 | 0:12:07 | |
I'm only kidding. I'm only kidding. | 0:12:07 | 0:12:10 | |
Three months, you can stick together for three months. | 0:12:13 | 0:12:16 | |
-Best of luck, guys. Good luck. -Thank you. -Oh, dear. | 0:12:16 | 0:12:19 | |
Adam's a young man who is not fazed by this project, | 0:12:21 | 0:12:24 | |
but I still have a couple of unanswered questions. | 0:12:24 | 0:12:27 | |
Will he find any underlying problems? | 0:12:27 | 0:12:29 | |
And will that main road put anyone off? | 0:12:29 | 0:12:32 | |
But most importantly, will he still be with Emma when we come back? | 0:12:32 | 0:12:35 | |
You can find out later in the show. | 0:12:35 | 0:12:37 | |
Lucy's on the Kent coast in the small seaside town of Herne Bay. | 0:12:40 | 0:12:45 | |
Like many of the seaside towns, | 0:12:48 | 0:12:50 | |
the beaches were really buzzing in Victorian times | 0:12:50 | 0:12:53 | |
when steamboats ran between here and London | 0:12:53 | 0:12:56 | |
ferrying holiday-makers back and forth. | 0:12:56 | 0:12:59 | |
Today, much of the 19th-century architecture remains, | 0:12:59 | 0:13:03 | |
and after a downturn of its fortunes, | 0:13:03 | 0:13:06 | |
tourists themselves are heading back to Herne Bay. | 0:13:06 | 0:13:09 | |
# Takes me back to the place that I know | 0:13:09 | 0:13:14 | |
# On the beach... # | 0:13:17 | 0:13:20 | |
The chances of finding a building plot with planning permission | 0:13:23 | 0:13:26 | |
in a town-centre location like this are, well, | 0:13:26 | 0:13:30 | |
as likely as spotting a mermaid washed up on the beach over there. | 0:13:30 | 0:13:34 | |
And the plot with planning and sea views? | 0:13:34 | 0:13:38 | |
Well, come round here. It seems almost hard to believe but, | 0:13:38 | 0:13:41 | |
oh, no, believe away, viewers, because, look, | 0:13:41 | 0:13:45 | |
here it is, right before my eyes. Amazing. | 0:13:45 | 0:13:48 | |
And the guide price, a sizeable 180,000-185,000. | 0:13:48 | 0:13:54 | |
Incredible. | 0:13:54 | 0:13:56 | |
# Can you believe it? | 0:13:56 | 0:13:59 | |
# Can you believe it? | 0:13:59 | 0:14:01 | |
# Can you believe it feels so right? # | 0:14:01 | 0:14:05 | |
Well, the site itself is a bit of an odd, triangular shape, | 0:14:12 | 0:14:16 | |
and it's slightly sloping, so it's not perfect. | 0:14:16 | 0:14:18 | |
But not too bad. | 0:14:18 | 0:14:20 | |
Now, another negative that's worth bearing in mind is that there is a | 0:14:20 | 0:14:23 | |
main sewer that runs under this site | 0:14:23 | 0:14:26 | |
and that will need relocating, | 0:14:26 | 0:14:28 | |
and it can be costly and time-consuming. | 0:14:28 | 0:14:30 | |
But all of that pales into insignificance when you think, | 0:14:30 | 0:14:33 | |
whatever you build here will have that as a view. | 0:14:33 | 0:14:38 | |
Gorgeous! | 0:14:38 | 0:14:40 | |
# And I stare at the sea | 0:14:41 | 0:14:45 | |
# And the sea smiles for me... # | 0:14:46 | 0:14:50 | |
The sea might be smiling, but the plot is only 12 by 10 metres. | 0:14:50 | 0:14:55 | |
Is that enough space? | 0:14:55 | 0:14:56 | |
So, the drawings show a pair of two-bedroom semidetached houses here, | 0:14:56 | 0:15:01 | |
and a detached one-bed which is hugging the corner of the plot. | 0:15:01 | 0:15:05 | |
Now, they're certainly snug, filling almost all of the site. | 0:15:05 | 0:15:08 | |
But the layout of the semis, I would say they are very standard, | 0:15:08 | 0:15:11 | |
you've got a living room, kitchen, | 0:15:11 | 0:15:13 | |
loo on the ground floor, and upstairs, | 0:15:13 | 0:15:16 | |
times two bedrooms and a bathroom. | 0:15:16 | 0:15:19 | |
Now, the detached, I would say | 0:15:19 | 0:15:21 | |
is more interesting because you've got a garage and games room, | 0:15:21 | 0:15:23 | |
and a kitchen on the ground floor, | 0:15:23 | 0:15:25 | |
and then upstairs, a large living room and bedroom | 0:15:25 | 0:15:28 | |
with balcony that goes right the way round it. | 0:15:28 | 0:15:31 | |
It's a big building to have only one bedroom. | 0:15:31 | 0:15:34 | |
But due to the flood risk, well, | 0:15:34 | 0:15:36 | |
you can't have any sleeping accommodation downstairs, | 0:15:36 | 0:15:39 | |
and I'm sure the architect wanted to make the most of these views | 0:15:39 | 0:15:42 | |
from the living space. | 0:15:42 | 0:15:44 | |
It's a rather luxurious space, a bit indulgent, | 0:15:44 | 0:15:47 | |
but all the more exciting for it. | 0:15:47 | 0:15:49 | |
Since all the hard work assigning architects to negotiate | 0:15:51 | 0:15:54 | |
with the local planning office is complete, | 0:15:54 | 0:15:56 | |
the only thing left to do here was get building. | 0:15:56 | 0:15:59 | |
But before jumping ahead and getting contractors in, | 0:16:00 | 0:16:03 | |
it's a good idea to get a local estate agent to look at the plans | 0:16:03 | 0:16:06 | |
and see if they would be right for the local market, | 0:16:06 | 0:16:09 | |
which is exactly what we've done. | 0:16:09 | 0:16:11 | |
Seafront-facing property as a whole in Herne Bay, there's a huge demand. | 0:16:12 | 0:16:16 | |
Some people might not like the idea | 0:16:16 | 0:16:17 | |
there's not actually any garden space. | 0:16:17 | 0:16:19 | |
However, you've got the garden on your doorstep. | 0:16:19 | 0:16:22 | |
You're not going to get any closer to the seafront for miles here. | 0:16:22 | 0:16:24 | |
The plans... To be honest, they're the best they could be. | 0:16:24 | 0:16:27 | |
It's such a small, compact plot, and I think the plans that have been passed | 0:16:27 | 0:16:30 | |
is what's going to get the maximum profit out of it. | 0:16:30 | 0:16:33 | |
And just what could that profit be for this plot, | 0:16:33 | 0:16:36 | |
guided at 180,000-185,000? | 0:16:36 | 0:16:39 | |
I'm of the opinion the semidetached cottages, | 0:16:42 | 0:16:44 | |
always dependent on specification, you're going to be looking at | 0:16:44 | 0:16:47 | |
figures between £230,000 and £250,000. | 0:16:47 | 0:16:51 | |
For the detached property, at the moment, I'd suggest | 0:16:51 | 0:16:53 | |
an asking price of £300,000. | 0:16:53 | 0:16:55 | |
Whoa! So those top figures would mean all three properties | 0:16:55 | 0:16:58 | |
could be worth 800,000. | 0:16:58 | 0:17:01 | |
Looks like there's a TIDE-y profit in this one, for sure. | 0:17:01 | 0:17:06 | |
This is an incredibly exciting opportunity. | 0:17:08 | 0:17:12 | |
The designs are interesting, the location is fantastic, | 0:17:12 | 0:17:15 | |
and the views... Well, they're just amazing! | 0:17:15 | 0:17:18 | |
I'm sure there was plenty of interest in this one at the auction. | 0:17:18 | 0:17:22 | |
A super site, this, with planning permission for the three dwellings. | 0:17:22 | 0:17:26 | |
They're all going to have sea views at the front. | 0:17:26 | 0:17:29 | |
Start me where you will. 170 to get me going. | 0:17:29 | 0:17:31 | |
170. I'm on the way at 170. | 0:17:31 | 0:17:33 | |
At the back, £170,000. | 0:17:33 | 0:17:35 | |
There was definite interest in this plot of land, | 0:17:35 | 0:17:38 | |
but it soon came down to two very keen bidders. | 0:17:38 | 0:17:41 | |
We rejoin the bidding at 300,000. | 0:17:41 | 0:17:44 | |
300 with you, madam. 302 to you. | 0:17:44 | 0:17:46 | |
302. And four. | 0:17:46 | 0:17:48 | |
That might be another wave of the hand. | 0:17:48 | 0:17:50 | |
At 302 then to the gentleman sitting down. | 0:17:50 | 0:17:52 | |
Otherwise, for the first time at £302,000, we'll go through it again. | 0:17:52 | 0:17:56 | |
304, I've got. | 0:17:56 | 0:17:58 | |
306. | 0:17:58 | 0:18:01 | |
304 back to you, then, for the first time. | 0:18:01 | 0:18:04 | |
£304,000 for the second time. | 0:18:04 | 0:18:07 | |
Last chance if you want it. | 0:18:07 | 0:18:09 | |
304 for the third and final time. | 0:18:09 | 0:18:11 | |
-Well done. -The successful bid was made by Galia, | 0:18:11 | 0:18:14 | |
who paid almost £120,000 more than the top guide price. | 0:18:14 | 0:18:18 | |
# Seems like a touch | 0:18:18 | 0:18:21 | |
# A touch too much... # | 0:18:21 | 0:18:25 | |
Lucy met up with Galia to find out if she paid too much | 0:18:25 | 0:18:28 | |
for the seaside plot. | 0:18:28 | 0:18:30 | |
Galia, fantastic meeting you today. | 0:18:30 | 0:18:32 | |
Thank you so much for coming along. | 0:18:32 | 0:18:34 | |
But what an incredible site. | 0:18:34 | 0:18:35 | |
Look how close the sea is! | 0:18:35 | 0:18:38 | |
I know, it's my pleasure being here as well. | 0:18:38 | 0:18:40 | |
Yeah, you can't get any closer to the sea than that. Yes. | 0:18:40 | 0:18:43 | |
But you got a little bit carried away on auction day, didn't you? | 0:18:43 | 0:18:48 | |
Yes, I did. I'm afraid things didn't go according to the plan. | 0:18:48 | 0:18:52 | |
I've actually first approached the vendor prior to the auction. | 0:18:52 | 0:18:55 | |
I made an offer of 175 and it was rejected | 0:18:55 | 0:18:59 | |
because the vendor wanted to accept 195. | 0:18:59 | 0:19:01 | |
When it came to bidding, I think the auctioneer was winding | 0:19:01 | 0:19:04 | |
another very, very interested party | 0:19:04 | 0:19:07 | |
first of all up to 250, | 0:19:07 | 0:19:09 | |
and I thought that's where we're going to stop. | 0:19:09 | 0:19:11 | |
But it went above that to 304. | 0:19:11 | 0:19:14 | |
And I'm just sitting there thinking, "No, I can't. I can't lose it." | 0:19:14 | 0:19:18 | |
"No, I can't, I can't... But I'm going to." | 0:19:18 | 0:19:20 | |
-I'm going to. -And you paid. -And I paid that, yes. | 0:19:20 | 0:19:23 | |
-You paid 304? -304. | 0:19:23 | 0:19:25 | |
And you were going to buy it for... You could have bought it for 195. | 0:19:25 | 0:19:28 | |
-195, yes. -So, what are you going to do with this site? | 0:19:28 | 0:19:31 | |
Because there's planning permission for two semis | 0:19:31 | 0:19:33 | |
and one detached house. | 0:19:33 | 0:19:36 | |
-Yes. -Are you going to go with the plans that currently are there? | 0:19:36 | 0:19:40 | |
Unfortunately not. | 0:19:40 | 0:19:42 | |
I'm actually going to submit a planning permission | 0:19:42 | 0:19:44 | |
to erect a detached property on the site, | 0:19:44 | 0:19:47 | |
utilising all the potential space there, | 0:19:47 | 0:19:50 | |
and actually run a retreat there. | 0:19:50 | 0:19:54 | |
So, the permissions for three homes are out of the window, and Galia | 0:19:54 | 0:19:58 | |
plans a base for her detox, fitness and weight loss retreat. | 0:19:58 | 0:20:02 | |
Galia already has one such retreat in Sussex | 0:20:05 | 0:20:08 | |
and hopes to expand her business by creating another here in Herne Bay. | 0:20:08 | 0:20:12 | |
She will have her work cut out, though, | 0:20:14 | 0:20:16 | |
especially as she will now have to go back to the planners and ask | 0:20:16 | 0:20:20 | |
not just to change the design of any property but also its use. | 0:20:20 | 0:20:24 | |
Considering Galia paid £120,000 more than the guide price | 0:20:25 | 0:20:30 | |
for this plot, it's safe to say her strategy is bold. | 0:20:30 | 0:20:34 | |
Do you think that you might have paid too much at auction, though? | 0:20:35 | 0:20:38 | |
How are you going to make your money back? | 0:20:38 | 0:20:40 | |
Well, I think I did, | 0:20:40 | 0:20:42 | |
but what value can you put on that? | 0:20:42 | 0:20:46 | |
-Absolutely. -To me, that is priceless. | 0:20:46 | 0:20:48 | |
So, it's interesting. You're looking at building something | 0:20:48 | 0:20:50 | |
that's detached. What sort of budget have you got in mind? | 0:20:50 | 0:20:53 | |
Well, it's difficult to say. It's like the auction. | 0:20:53 | 0:20:56 | |
I was planning to spend 175 and I spent 304. | 0:20:56 | 0:21:00 | |
I am very much hoping to spend 250, | 0:21:00 | 0:21:04 | |
and if I'm further allowed to maybe excavate the basement area | 0:21:04 | 0:21:07 | |
for a little gym or maybe go to the second floor, | 0:21:07 | 0:21:09 | |
then certainly not more than 350. | 0:21:09 | 0:21:12 | |
But it's wishful thinking, of course. | 0:21:12 | 0:21:14 | |
Galia, you are a loose cannon. | 0:21:14 | 0:21:16 | |
And that's why people want to join my retreats. | 0:21:16 | 0:21:18 | |
They're going to follow me and they're going to be at the same helm | 0:21:18 | 0:21:21 | |
as I am. And I'm going to probably call this place not a boot camp | 0:21:21 | 0:21:24 | |
but a boat camp because I'm going to probably build it | 0:21:24 | 0:21:28 | |
in the shape of a boat. | 0:21:28 | 0:21:30 | |
-I mean, wow! -Do you think Herne Bay are ready for such a retreat? | 0:21:30 | 0:21:33 | |
I think they are. First of all, | 0:21:33 | 0:21:34 | |
they're so close to Whitstable, where things are already happening. | 0:21:34 | 0:21:37 | |
Secondly, they're so close to London with its unique transport links | 0:21:37 | 0:21:41 | |
and, you see, a lot of my clients are international travellers. | 0:21:41 | 0:21:44 | |
So, for them it's just going to be really beautiful to visit | 0:21:44 | 0:21:47 | |
an English seaside resort, | 0:21:47 | 0:21:49 | |
and actually bring a little bit of prosperity to the area | 0:21:49 | 0:21:53 | |
and rejuvenate this area a little bit, | 0:21:53 | 0:21:57 | |
because it's definitely underestimated. | 0:21:57 | 0:21:59 | |
And playing her part in the rejuvenation plan, | 0:21:59 | 0:22:02 | |
Galia had previously bought another property | 0:22:02 | 0:22:05 | |
a few hundred yards down the beach. | 0:22:05 | 0:22:08 | |
She felt that this Victorian toilet block could be converted | 0:22:08 | 0:22:11 | |
into a gym for use by retreat clients, | 0:22:11 | 0:22:14 | |
but Lucy, rightly, was being pragmatic. | 0:22:14 | 0:22:17 | |
What if you don't get permission? | 0:22:18 | 0:22:20 | |
I hate to break it to you. Do you have a plan B? | 0:22:20 | 0:22:24 | |
If I don't get the permission the plan B is actually | 0:22:24 | 0:22:27 | |
going to make money, build the cottages and flog them. | 0:22:27 | 0:22:30 | |
I'm going to make money this way or the other. | 0:22:30 | 0:22:32 | |
I would prefer to run a retreat so I can benefit | 0:22:32 | 0:22:35 | |
and enjoy these beautiful walks myself. | 0:22:35 | 0:22:37 | |
How long do you think it's going to take you to get what you want? | 0:22:37 | 0:22:41 | |
OK, well, with planning permissions, obviously it's outside my control. | 0:22:41 | 0:22:45 | |
I'm certainly hoping a year. | 0:22:45 | 0:22:47 | |
So, you've got a year in mind... | 0:22:47 | 0:22:49 | |
-Yeah. -..to get this place up and running. | 0:22:49 | 0:22:51 | |
It's been lovely meeting you today. Good luck with this whole project. | 0:22:51 | 0:22:54 | |
The pleasure is mine. Thank you. | 0:22:54 | 0:22:56 | |
Galia paid so much for that site, but she really wanted it, | 0:22:56 | 0:23:01 | |
and sometimes, well, the heart overrules the head. | 0:23:01 | 0:23:04 | |
But will her business plan come to fruition? | 0:23:04 | 0:23:08 | |
You can find out what happens later on in the programme. | 0:23:08 | 0:23:11 | |
Coming up, shrubbery surprises in the first-floor flat | 0:23:12 | 0:23:15 | |
in leafy Edmonton. | 0:23:15 | 0:23:17 | |
It's got this lovely little terraced area, | 0:23:17 | 0:23:19 | |
and then it comes with its very own jungle. | 0:23:19 | 0:23:22 | |
And in Herne Bay, Galia's retreat plans are delayed | 0:23:23 | 0:23:27 | |
due to an unexpected purchase. | 0:23:27 | 0:23:29 | |
So, I absolutely had to go and buy that forest. | 0:23:29 | 0:23:32 | |
Back now to half a mile from bonny Donny town centre. | 0:23:36 | 0:23:40 | |
That's Doncaster to you and me, South Yorkshire, | 0:23:40 | 0:23:42 | |
where I saw this three-bedroom semi. | 0:23:42 | 0:23:45 | |
The kitchen, you just need a new kitchen in. | 0:23:45 | 0:23:48 | |
Not much light coming in. | 0:23:48 | 0:23:50 | |
You could maximise light, maybe getting a different door, | 0:23:50 | 0:23:52 | |
more glass, but pretty small point. | 0:23:52 | 0:23:55 | |
It was bought by Adam, for 65 grand. | 0:23:57 | 0:24:00 | |
He didn't mind the busy road it fronted onto. | 0:24:00 | 0:24:02 | |
I met him and his girlfriend Emma back at the property. | 0:24:02 | 0:24:06 | |
I have had a look round, I can't see any damp. | 0:24:06 | 0:24:08 | |
It's looking good. It just needs a simple jobs doing, really. | 0:24:08 | 0:24:11 | |
But somebody's started this and then walked away. Why? | 0:24:11 | 0:24:16 | |
You're scared that they discovered something and ran for the hills? | 0:24:16 | 0:24:19 | |
Yeah. Any time now, any day, I'm going to pull off a piece of carpet, | 0:24:19 | 0:24:21 | |
pull off a piece of wallpaper and I'm going to find a surprise. | 0:24:21 | 0:24:25 | |
It was certainly puzzling, and a job not even half done. | 0:24:25 | 0:24:29 | |
Adam wasn't sure if he would sell or rent. | 0:24:29 | 0:24:31 | |
Either way, he thought three months would crack it, | 0:24:31 | 0:24:34 | |
and spend between 15-20 grand on it. | 0:24:34 | 0:24:37 | |
I wondered how their fairly new relationship would stand up. | 0:24:37 | 0:24:41 | |
You're going to be working together on this project, | 0:24:41 | 0:24:44 | |
so how do you get on? | 0:24:44 | 0:24:45 | |
He can be quite... You can be quite bossy. | 0:24:45 | 0:24:47 | |
-Mm-hm. -And I don't like being told what to do. | 0:24:47 | 0:24:49 | |
-Yeah. -It is like two bulls. | 0:24:49 | 0:24:52 | |
We're back nearly five and a half months later | 0:24:57 | 0:25:00 | |
to see how the bullfight went. | 0:25:00 | 0:25:02 | |
There's been a fair bit of replastering, | 0:25:02 | 0:25:04 | |
redecorating and removing of old doors. | 0:25:04 | 0:25:07 | |
There's new central heating. | 0:25:07 | 0:25:09 | |
But apart from one window, which we'll get to, they're all original. | 0:25:09 | 0:25:13 | |
There's a new consumer unit and storage space, | 0:25:16 | 0:25:19 | |
and I'm glad to see a hand basin in the downstairs loo. | 0:25:19 | 0:25:22 | |
So far, worth a round of applause. | 0:25:23 | 0:25:26 | |
# Boom! Clap! The sound of my heart | 0:25:26 | 0:25:29 | |
# The beat goes on and on and on and on and... # | 0:25:29 | 0:25:32 | |
There's a kitchen now, and it's smart. | 0:25:32 | 0:25:35 | |
OK, cue the magic door trick. | 0:25:35 | 0:25:37 | |
# Boom! Clap! The sound of my heart | 0:25:37 | 0:25:39 | |
# The beat goes on and on and on and on and... # | 0:25:39 | 0:25:43 | |
Upstairs now, and I for one can't wait to see | 0:25:43 | 0:25:46 | |
the changes to the bathroom. | 0:25:46 | 0:25:48 | |
# No silver or no gold | 0:25:50 | 0:25:53 | |
# Could dress me up so good | 0:25:53 | 0:25:55 | |
# You're the glitter in the darkness of my world... # | 0:25:55 | 0:25:58 | |
There was a lot of remedial plasterwork needed here, | 0:26:03 | 0:26:06 | |
especially by the sink and toilet, but it's definitely modern now. | 0:26:06 | 0:26:10 | |
Over to the largest bedroom, | 0:26:13 | 0:26:15 | |
where the neutral colour scheme continues. | 0:26:15 | 0:26:17 | |
Time for another magic door. | 0:26:19 | 0:26:21 | |
# Boom! Clap! You make me feel good | 0:26:26 | 0:26:29 | |
# Come on to me Come on to me now... # | 0:26:29 | 0:26:32 | |
The bedrooms, including the smallest, | 0:26:35 | 0:26:37 | |
are much calmer, and if you thought I'd forgotten to point out | 0:26:37 | 0:26:40 | |
the new window, here it is. | 0:26:40 | 0:26:43 | |
Adam's care goes beyond the interior. | 0:26:43 | 0:26:45 | |
He's shown his love outside, too. | 0:26:45 | 0:26:49 | |
# You keep burning me up with all your love, oh | 0:26:49 | 0:26:52 | |
# Boom! Clap! The sound of my heart | 0:26:52 | 0:26:55 | |
# The beat goes on and on and on and on and... # | 0:26:55 | 0:26:58 | |
Guess the most difficult job? | 0:26:58 | 0:27:00 | |
My money's on the plastering. | 0:27:00 | 0:27:03 | |
Erm... Well, no, somebody else did the plastering, | 0:27:03 | 0:27:05 | |
so it wasn't difficult - for me, anyway. | 0:27:05 | 0:27:08 | |
The painting of inside and outside, | 0:27:08 | 0:27:11 | |
that was most time-consuming, boring and... | 0:27:11 | 0:27:14 | |
Yeah, it was just so boring. | 0:27:14 | 0:27:17 | |
And so much paint. Wow. | 0:27:17 | 0:27:19 | |
Adam and Emma had only been going out for six months | 0:27:21 | 0:27:23 | |
on our first visit. | 0:27:23 | 0:27:24 | |
She described working with Adam as being like two bulls. | 0:27:24 | 0:27:28 | |
So, did this turn into a china shop? | 0:27:28 | 0:27:31 | |
And is that why Emma's not here? | 0:27:31 | 0:27:33 | |
Right, so... | 0:27:33 | 0:27:36 | |
HE LAUGHS | 0:27:36 | 0:27:38 | |
Inside, we started wallpaper stripping, me and Emma. | 0:27:38 | 0:27:42 | |
She is not here with me today but she is still, you know, | 0:27:42 | 0:27:46 | |
giving the free labour. | 0:27:46 | 0:27:47 | |
-Hooray! -Just thereabouts. | 0:27:47 | 0:27:49 | |
She started off wallpaper stripping and I think she got bored, | 0:27:49 | 0:27:52 | |
so she sort of left it alone a little bit and left me to do | 0:27:52 | 0:27:56 | |
all but one bedroom. | 0:27:56 | 0:27:58 | |
The bedroom Emma did tackle was the smallest one, | 0:27:58 | 0:28:01 | |
but they also found there was woodworm, | 0:28:01 | 0:28:03 | |
and getting the right-size replacement floorboards | 0:28:03 | 0:28:06 | |
was a problem, so... | 0:28:06 | 0:28:09 | |
I got woodworm killer, | 0:28:09 | 0:28:11 | |
spent about £50 on the stuff and absolutely lathered the floor in it. | 0:28:11 | 0:28:14 | |
And, touch wood, we've had no problems since. | 0:28:14 | 0:28:18 | |
The previous owners had already started work on the property | 0:28:18 | 0:28:21 | |
and then left it. | 0:28:21 | 0:28:23 | |
So, were there any other hidden nasty surprises? | 0:28:23 | 0:28:26 | |
I did have a word with my solicitor, or they contacted me, actually, | 0:28:26 | 0:28:30 | |
and said, "Did you know it was bought less than a month ago? | 0:28:30 | 0:28:33 | |
"Does this worry you? I think you're going to find a surprise." | 0:28:33 | 0:28:35 | |
But, you know, again, my fingers were tight as a knot on a boat, | 0:28:35 | 0:28:39 | |
and I did not find any surprises. Thank God. | 0:28:39 | 0:28:42 | |
And this is it. Yeah, so far so good. | 0:28:42 | 0:28:45 | |
Motor trader Adam discovered a cheaper alternative to skip hire. | 0:28:46 | 0:28:51 | |
He bought a car in part exchange for £100 | 0:28:51 | 0:28:54 | |
without back seats. | 0:28:54 | 0:28:56 | |
It must have saved me £500 worth in skips. | 0:28:56 | 0:29:00 | |
And, yeah, it's still going today. | 0:29:00 | 0:29:01 | |
It's been going for the last five months. It's brilliant. | 0:29:01 | 0:29:04 | |
You've said it. Five months - that's two months | 0:29:04 | 0:29:08 | |
off the original timescale. How was that? | 0:29:08 | 0:29:11 | |
I completely blame the tradies. | 0:29:11 | 0:29:13 | |
I've had people in, do a job, | 0:29:13 | 0:29:15 | |
and they've done it wrong and I've had to get somebody else. | 0:29:15 | 0:29:17 | |
But the good ones are obviously booked in for a few weeks | 0:29:17 | 0:29:20 | |
and the not-so-good ones can come tomorrow, you know, | 0:29:20 | 0:29:22 | |
the next day, and they're no good for me. I want the best. | 0:29:22 | 0:29:25 | |
And was the 15-20 grand budget as tight as knot on a boat? | 0:29:25 | 0:29:30 | |
How much did you spend? | 0:29:30 | 0:29:32 | |
17 and a half, roughly. | 0:29:32 | 0:29:34 | |
So, I've got a little bit of change. | 0:29:34 | 0:29:36 | |
It's that time again where we invite two local estate agents along | 0:29:37 | 0:29:41 | |
to see if Adam's 65-grand purchase | 0:29:41 | 0:29:44 | |
and £17,500 refurbishment has been worth it. | 0:29:44 | 0:29:48 | |
First up, the agent we met at first filming. | 0:29:48 | 0:29:51 | |
What's the 82,5000 spend worth now? | 0:29:51 | 0:29:54 | |
I would expect the property to fetch somewhere between | 0:29:54 | 0:29:56 | |
£100,000 and £110,000. | 0:29:56 | 0:30:00 | |
On the rental market, I would expect somewhere between | 0:30:00 | 0:30:02 | |
£500 and £525 per calendar month. | 0:30:02 | 0:30:06 | |
The second agent also valued it at 110 grand for sale | 0:30:06 | 0:30:09 | |
but he differed on the rental value. | 0:30:09 | 0:30:12 | |
£525 to £550 per calendar month. | 0:30:12 | 0:30:16 | |
Adam thought he would rent this, | 0:30:16 | 0:30:19 | |
but could be tempted if there was enough profit on the resale market. | 0:30:19 | 0:30:23 | |
So, does a potential pre-tax profit of £27,500 do it for him? | 0:30:23 | 0:30:28 | |
Well, the figures do not make me want to sell it. | 0:30:28 | 0:30:31 | |
I think too much time and effort's gone into it. | 0:30:31 | 0:30:34 | |
I would push for at least 120,000. | 0:30:34 | 0:30:37 | |
And the rental at 550 a month? | 0:30:37 | 0:30:39 | |
I'm going to push for 600. | 0:30:39 | 0:30:41 | |
If I struggle... Give it a month or so, | 0:30:41 | 0:30:43 | |
if I struggle I'll take 550, yeah. | 0:30:43 | 0:30:46 | |
Well, even at £550, with an 82,500 spend, | 0:30:46 | 0:30:50 | |
it comes out at around 8% annual yield. | 0:30:50 | 0:30:54 | |
Anything still on the to-do list? | 0:30:54 | 0:30:56 | |
In current talks at the minute with a solicitor | 0:30:56 | 0:30:59 | |
knocking up the tenant agreement and things like that. That's it. | 0:30:59 | 0:31:03 | |
Edmonton in the Borough of Enfield is an area | 0:31:10 | 0:31:12 | |
that's undergone a lot of changes over the years. | 0:31:12 | 0:31:15 | |
# It meant a lot to the locals on | 0:31:15 | 0:31:18 | |
# Edmonton Green... # | 0:31:18 | 0:31:22 | |
The Edmonton Green part of the area | 0:31:25 | 0:31:27 | |
is currently the subject of a £100 million development, | 0:31:27 | 0:31:30 | |
so it's certainly a place on the up. | 0:31:30 | 0:31:32 | |
Well, I'm at the northern end of Edmonton, | 0:31:34 | 0:31:37 | |
here to see a three-roomed flat, | 0:31:37 | 0:31:40 | |
which had a guide price of £100,000 plus. | 0:31:40 | 0:31:46 | |
Sounds reasonable. | 0:31:46 | 0:31:48 | |
Probably be a catch. Usually is. | 0:31:48 | 0:31:50 | |
# Always look on the bright side of life... # | 0:31:50 | 0:31:55 | |
Don't be such a pessimist, I hear you cry. | 0:31:55 | 0:31:58 | |
But come on, there has to be a catch. | 0:31:58 | 0:32:00 | |
Through your own little entrance and up your stairs. | 0:32:01 | 0:32:04 | |
Notice that the loft hatch is open here | 0:32:04 | 0:32:06 | |
and the loft looks quite reasonable. | 0:32:06 | 0:32:07 | |
So, one of the things you might consider doing is extending upwards. | 0:32:07 | 0:32:11 | |
Create a dormer bedroom up there. | 0:32:11 | 0:32:13 | |
The problem is that this is a leasehold flat, | 0:32:13 | 0:32:16 | |
so before you do anything substantial like that | 0:32:16 | 0:32:18 | |
you need to get the approval of the freeholder. | 0:32:18 | 0:32:21 | |
It might be possible to convert it into a liveable space. | 0:32:21 | 0:32:26 | |
As always, speak to planning and the freeholder | 0:32:26 | 0:32:29 | |
before getting too excited. | 0:32:29 | 0:32:30 | |
If you could, though, | 0:32:30 | 0:32:32 | |
it would really increase the floor space and the value of this flat. | 0:32:32 | 0:32:36 | |
# We'll sit up there | 0:32:36 | 0:32:39 | |
# And watch the world go by | 0:32:40 | 0:32:43 | |
# The world go by | 0:32:43 | 0:32:45 | |
# When we find | 0:32:45 | 0:32:48 | |
# That long-lost gold mine in the sky... # | 0:32:48 | 0:32:54 | |
As I said earlier, this is described as a three-roomed flat | 0:32:54 | 0:32:58 | |
and this, at present, is an office. | 0:32:58 | 0:33:00 | |
Maybe the catch is it's not big enough | 0:33:00 | 0:33:03 | |
to be classified as a single bedroom. | 0:33:03 | 0:33:06 | |
This is the bigger of the bedrooms. | 0:33:06 | 0:33:08 | |
Nice bit of, oh, yes, OK, Egyptian artwork on the walls. | 0:33:08 | 0:33:11 | |
It's not bad. I mean, whole place is a bit tired and dated. | 0:33:11 | 0:33:14 | |
Looks like the electrics could do with updating. | 0:33:14 | 0:33:16 | |
You've got surface-mounted sockets there and wires all over the place. | 0:33:16 | 0:33:20 | |
It doesn't look to have central heating. Single-glazed windows. | 0:33:20 | 0:33:24 | |
So, obviously a major process of refurbishment required. | 0:33:24 | 0:33:28 | |
But it's not bad. It's got a good feel to it. | 0:33:28 | 0:33:31 | |
Although the presence of storage heaters | 0:33:33 | 0:33:36 | |
suggests there might not be gas, either | 0:33:36 | 0:33:38 | |
and that could mean another call with the freeholder | 0:33:38 | 0:33:41 | |
for permission and a fair amount of cost as well. | 0:33:41 | 0:33:44 | |
Your bathroom there definitely needs refurbishment. | 0:33:46 | 0:33:48 | |
And then through into this room, | 0:33:48 | 0:33:50 | |
which is your main living accommodation. | 0:33:50 | 0:33:52 | |
It's actually a really nice-sized space, this, | 0:33:52 | 0:33:54 | |
especially as you come through this way through to your kitchen. | 0:33:54 | 0:33:57 | |
Clearly seen better days | 0:33:57 | 0:33:59 | |
but I like the location. | 0:33:59 | 0:34:01 | |
Probably stick a few more windows in here | 0:34:01 | 0:34:04 | |
but, apart from that, I think it practically works very well, | 0:34:04 | 0:34:07 | |
especially as through that back door there, | 0:34:07 | 0:34:09 | |
out onto a little terrace. | 0:34:09 | 0:34:11 | |
So, all in all, you know, for that 100 grand plus guide price, | 0:34:11 | 0:34:15 | |
a lot of flat for the money. | 0:34:15 | 0:34:17 | |
There's even a fantastic bonus outside. | 0:34:17 | 0:34:19 | |
Well, outdoor space in London flats, especially, is always a lovely thing | 0:34:19 | 0:34:26 | |
to have, and obviously it brings a real premium to the property. | 0:34:26 | 0:34:29 | |
So, what's this one got? | 0:34:29 | 0:34:30 | |
Well, it's got this little terraced area | 0:34:30 | 0:34:33 | |
and then it comes with its very own jungle, | 0:34:33 | 0:34:35 | |
because everything you can see there that's green | 0:34:35 | 0:34:38 | |
is actually part of the garden. | 0:34:38 | 0:34:40 | |
Your own little stairway at the back here, which leads down to that, | 0:34:40 | 0:34:42 | |
so get somebody in and get it sorted. | 0:34:42 | 0:34:45 | |
The thing which you don't normally have in flats, | 0:34:45 | 0:34:47 | |
that bit of outside space, you've got it, so a real big bonus. | 0:34:47 | 0:34:50 | |
OK, so it all needs a bit of work | 0:34:50 | 0:34:52 | |
and you'd need a machete to access the outside space. | 0:34:52 | 0:34:55 | |
# It's a jungle out there! # | 0:34:55 | 0:34:59 | |
But it's got a fairly doable interior, | 0:34:59 | 0:35:02 | |
potential for expansion upwards, | 0:35:02 | 0:35:05 | |
and a guide price of 100,000. | 0:35:05 | 0:35:07 | |
Of course, there must be a catch. | 0:35:07 | 0:35:09 | |
But wait for it, first, before we go there, | 0:35:09 | 0:35:11 | |
time to knock a bit of interior design. | 0:35:11 | 0:35:14 | |
Two final things that are a bit of a concern with this flat, however. | 0:35:16 | 0:35:19 | |
At the top of the stairs, glass. | 0:35:19 | 0:35:21 | |
Now, that is not safety glass. | 0:35:21 | 0:35:23 | |
It's a potential disaster waiting to happen. | 0:35:23 | 0:35:26 | |
So, replace that as soon as you move in here with safety glass, | 0:35:26 | 0:35:30 | |
or just something else. It just doesn't work. | 0:35:30 | 0:35:32 | |
The second thing is something which is in the legal pack | 0:35:32 | 0:35:35 | |
but you have to make sure that you read it, | 0:35:35 | 0:35:38 | |
and that is that this place has got a 42-year lease remaining. | 0:35:38 | 0:35:42 | |
Now, for a lot of mortgage providers that isn't long enough | 0:35:42 | 0:35:45 | |
so you'd have to renegotiate that lease | 0:35:45 | 0:35:47 | |
before you were able to get a mortgage, | 0:35:47 | 0:35:50 | |
which means it's either a cash buyer, | 0:35:50 | 0:35:52 | |
or somebody who is willing to do a very quick deal with the freeholder. | 0:35:52 | 0:35:55 | |
Time to get the lowdown from a local property expert. | 0:35:58 | 0:36:00 | |
First of all, the high point of this flat, | 0:36:00 | 0:36:03 | |
is it the right idea to build a dormer in the loft? | 0:36:03 | 0:36:06 | |
I don't think extending into the loft | 0:36:08 | 0:36:10 | |
is really something that's going to be allowed | 0:36:10 | 0:36:12 | |
from a planning perspective, | 0:36:12 | 0:36:14 | |
although it would create extra space if it was done. | 0:36:14 | 0:36:18 | |
I think the property needs, obviously, a complete refurb. | 0:36:18 | 0:36:20 | |
New kitchen, new bathroom, double glazing, central heating, | 0:36:20 | 0:36:23 | |
electrics checked. | 0:36:23 | 0:36:24 | |
The cost of bringing it up to top standard's | 0:36:24 | 0:36:29 | |
going to be about £15,000. | 0:36:29 | 0:36:32 | |
OK, and what about the cost of extending the lease? | 0:36:32 | 0:36:34 | |
To extend the lease of 42 years | 0:36:35 | 0:36:37 | |
is going to cost something around £80,000. | 0:36:37 | 0:36:40 | |
And what could it fetch for sales and lettings? | 0:36:40 | 0:36:43 | |
The resale value would be £280,000 and the rental value | 0:36:44 | 0:36:48 | |
will be £1,300 per calendar month. | 0:36:48 | 0:36:50 | |
Well, it's a nice little flat | 0:36:53 | 0:36:54 | |
that just needs a good programme of rejuvenation to sort it out. | 0:36:54 | 0:36:58 | |
Oh, and a big lot of cutting down trees in the garden. | 0:36:58 | 0:37:01 | |
However, the biggest issue with this one is, of course, | 0:37:01 | 0:37:03 | |
that short 42-year lease. | 0:37:03 | 0:37:06 | |
It would have been in the legal pack but if you hadn't read it, blimey, | 0:37:06 | 0:37:10 | |
it could really catch you out. | 0:37:10 | 0:37:12 | |
Let's see what happened when it went under the hammer. | 0:37:12 | 0:37:15 | |
Lot 58B is Edmonton, good area to invest in. | 0:37:15 | 0:37:19 | |
So, kick off at 90 on this one. | 0:37:19 | 0:37:22 | |
90,000 in the front. | 0:37:23 | 0:37:25 | |
95 with you. | 0:37:25 | 0:37:27 | |
100? | 0:37:27 | 0:37:28 | |
Plenty of interest here. We rejoin the bidding at 160,000. | 0:37:28 | 0:37:32 | |
160? | 0:37:32 | 0:37:33 | |
155 standing up. 160 on the phone. | 0:37:35 | 0:37:37 | |
157. 159, | 0:37:37 | 0:37:41 | |
in the room. | 0:37:41 | 0:37:42 | |
161. | 0:37:42 | 0:37:43 | |
163. 165. | 0:37:43 | 0:37:46 | |
167? | 0:37:47 | 0:37:49 | |
Another go? 165, sitting down. | 0:37:49 | 0:37:52 | |
First time, second time, third and last time. | 0:37:52 | 0:37:55 | |
If you're all done, sold. 165. | 0:37:55 | 0:37:59 | |
Paying 65 grand over the guide price were Rohema and her husband Mujibah. | 0:37:59 | 0:38:05 | |
They've both appeared on the show before | 0:38:05 | 0:38:07 | |
when they made their first auction purchase in East Ham. | 0:38:07 | 0:38:11 | |
Then they told Lucy what got them started. | 0:38:11 | 0:38:13 | |
Did you think you would get this flat on the day? | 0:38:14 | 0:38:17 | |
Didn't think that we would get it. | 0:38:17 | 0:38:18 | |
So what happened? How did you end up walking away with the flat? | 0:38:18 | 0:38:21 | |
I think it's your programme inspired us and we raised a hand | 0:38:21 | 0:38:24 | |
and we started. | 0:38:24 | 0:38:25 | |
Things have moved on since then, | 0:38:27 | 0:38:29 | |
as Mujibah has gone full-time at property development, | 0:38:29 | 0:38:32 | |
using his skills as a builder. | 0:38:32 | 0:38:34 | |
Mujibah, Rohema, lovely to meet you both. | 0:38:34 | 0:38:36 | |
Tell me why you wanted to buy this flat. | 0:38:36 | 0:38:38 | |
Because of location and the renting in this area is very good. | 0:38:38 | 0:38:42 | |
You know the area quite well, do you? | 0:38:42 | 0:38:44 | |
Yes, yes, we do. | 0:38:44 | 0:38:45 | |
We did our research, yeah. | 0:38:45 | 0:38:47 | |
So, when you're looking for houses to buy, what do you look for? | 0:38:47 | 0:38:50 | |
We look for something doing renovation | 0:38:50 | 0:38:53 | |
because I'm very interested to do with renovating and everything, | 0:38:53 | 0:38:57 | |
-because I enjoy myself doing this. -You personally? -Yes. -Oh, wow. | 0:38:57 | 0:39:01 | |
What else do you look for? | 0:39:01 | 0:39:02 | |
I look for the rental income, | 0:39:02 | 0:39:04 | |
location where we can make more profit. | 0:39:04 | 0:39:06 | |
So what was it, then, you liked about this house? | 0:39:06 | 0:39:09 | |
This house, actually, we didn't see before. | 0:39:09 | 0:39:12 | |
-Oh, really? -Yeah. | 0:39:12 | 0:39:13 | |
So, you haven't seen the flat before you bought it? | 0:39:13 | 0:39:15 | |
-No. No. -When we went to auction we went for a different property. | 0:39:15 | 0:39:18 | |
-Oh. -And unfortunately that property price wasn't matching our budget, | 0:39:18 | 0:39:23 | |
so we actually dropped it | 0:39:23 | 0:39:25 | |
and we just quickly thought we'll go for something else. | 0:39:25 | 0:39:29 | |
They may be fans of the show but they've broken a golden rule, | 0:39:29 | 0:39:33 | |
since they didn't view before buying. | 0:39:33 | 0:39:36 | |
I'm hopeful they did, at least, read the legal pack. | 0:39:36 | 0:39:38 | |
-We read... -The legal pack. -..the legal pack. | 0:39:40 | 0:39:44 | |
Quickly on the day. | 0:39:44 | 0:39:46 | |
We searched the area's prices of the houses | 0:39:46 | 0:39:49 | |
and we just thought it would give us a good profit, so let's go for it. | 0:39:49 | 0:39:53 | |
So, tell me what you're going to do with it. | 0:39:53 | 0:39:56 | |
It's basically everything | 0:39:56 | 0:39:57 | |
I have to do because there is no gas. | 0:39:57 | 0:39:59 | |
There is just a box outside, so then no gas connected to the house, | 0:39:59 | 0:40:03 | |
so I'm need to get the gas boiler again. | 0:40:03 | 0:40:08 | |
No central heating, no nothing in here. | 0:40:08 | 0:40:10 | |
So, I have to do the central heating and the double glazing, | 0:40:10 | 0:40:13 | |
replastering, take the ceiling down, and everything, | 0:40:13 | 0:40:17 | |
new bathroom, kitchen. Complete refurbish. I have to do. | 0:40:17 | 0:40:20 | |
And the garden, obviously, is junk. | 0:40:20 | 0:40:23 | |
-Yes! -I have to clean this mess. | 0:40:23 | 0:40:25 | |
How are you going to get rid of all that stuff in the garden? | 0:40:25 | 0:40:28 | |
We already contacted the gardeners | 0:40:28 | 0:40:31 | |
-and they're going to come and clear it for us. -Are they? Wow. | 0:40:31 | 0:40:35 | |
So, what about internal layout? Any plans for the internal layout? | 0:40:35 | 0:40:38 | |
We might do the loft conversion. | 0:40:38 | 0:40:41 | |
-OK. -So, we already started speaking with the freeholder | 0:40:41 | 0:40:44 | |
and, kind of, getting agreement to do the loft. | 0:40:44 | 0:40:47 | |
So, we might extend another two beds upstairs. | 0:40:47 | 0:40:50 | |
Two beds upstairs, OK. | 0:40:50 | 0:40:52 | |
Just by putting dormers in, or something like that? | 0:40:52 | 0:40:55 | |
-Yeah, yeah. -Yeah. -We have to put a dormer in. | 0:40:55 | 0:40:58 | |
The freeholder already agreed, | 0:40:58 | 0:41:00 | |
but main concern about the council. | 0:41:00 | 0:41:03 | |
We have to apply the planning permission, | 0:41:03 | 0:41:06 | |
so, if council allow us, we will do it in the future. | 0:41:06 | 0:41:09 | |
Sometimes the freeholder will charge you for that. | 0:41:09 | 0:41:11 | |
-Yes. -Yeah. -Are they charging? | 0:41:11 | 0:41:13 | |
-They are charging. -Did they say how much? -They will charge 10,000 for.. | 0:41:13 | 0:41:17 | |
Getting the permission, yeah. | 0:41:17 | 0:41:19 | |
To allow you to do that? | 0:41:19 | 0:41:20 | |
-Yeah. -Yeah. -Presumably because it's adding value to the house. | 0:41:20 | 0:41:23 | |
-Yes. -Yeah. -If you sell the leasehold in the future, then you benefit. | 0:41:23 | 0:41:27 | |
Yeah, 10,000 is reasonable. | 0:41:27 | 0:41:29 | |
Yeah, well, it sounds OK. | 0:41:29 | 0:41:31 | |
What about the cost of doing that conversion? | 0:41:31 | 0:41:33 | |
-Any idea what that's going to cost? -Most of the work I do myself, | 0:41:33 | 0:41:36 | |
so within 35,000 I can do the loft conversion. | 0:41:36 | 0:41:40 | |
They have a budget of 25,000 to 30,000 for the rest of the flat. | 0:41:41 | 0:41:44 | |
And think three to four months will have it ready to rent | 0:41:44 | 0:41:48 | |
with Mujibah doing most of the work. | 0:41:48 | 0:41:51 | |
Since they've had a chat with the freeholder, | 0:41:51 | 0:41:53 | |
I hope the subject of the short lease came up. | 0:41:53 | 0:41:56 | |
We saw in the legal pack this lease is very short. | 0:41:58 | 0:42:01 | |
-Yeah. -So, I have to do the lease extension, as well, for selling | 0:42:01 | 0:42:04 | |
but I'm not thinking to sell it now | 0:42:04 | 0:42:06 | |
because rental income is a very good return, | 0:42:06 | 0:42:08 | |
-so I'll keep it. -Are you going to extend the lease at all, or not? | 0:42:08 | 0:42:11 | |
I will, I will later. | 0:42:11 | 0:42:12 | |
-Do you know how much it's going to cost to extend the lease? -25,000 to 30,000. | 0:42:12 | 0:42:16 | |
Right, OK. But that would put | 0:42:16 | 0:42:18 | |
-a 99-year lease on this? -No, 125 years. | 0:42:18 | 0:42:20 | |
Oh, would it be? OK. What's your involvement at this stage? | 0:42:20 | 0:42:23 | |
Just doing, you know, helping them, the team, choosing the materials, | 0:42:23 | 0:42:28 | |
colours, decorating, painting, and sometimes making the tea for them. | 0:42:28 | 0:42:32 | |
-Yeah. -Moral support, as well. | 0:42:32 | 0:42:34 | |
That's good. Well, listen, congratulations. | 0:42:34 | 0:42:36 | |
Good luck with it. | 0:42:36 | 0:42:37 | |
-Thank you. -Look forward to seeing how you get on. | 0:42:37 | 0:42:40 | |
Thank you very much. Thank you. | 0:42:40 | 0:42:41 | |
Well, nothing seems to faze our property developing couple. | 0:42:41 | 0:42:46 | |
How will they get on? | 0:42:46 | 0:42:48 | |
Lots of discussions to be had with the freeholder. | 0:42:48 | 0:42:51 | |
It seems like those have been reasonably successful, though, | 0:42:51 | 0:42:54 | |
so that is good news because it was one of my big worries. | 0:42:54 | 0:42:57 | |
How will everything turn out? | 0:42:57 | 0:42:59 | |
You can find out later in the show. | 0:42:59 | 0:43:01 | |
So, we've seen the outcome for one of today's properties. | 0:43:05 | 0:43:07 | |
What about the other two? | 0:43:07 | 0:43:09 | |
Yes, have our buyers been ringing the changes, | 0:43:09 | 0:43:11 | |
or is it a case of same old, same old? | 0:43:11 | 0:43:13 | |
Time to return now to the seaside town of Herne Bay on the Kent coast | 0:43:17 | 0:43:21 | |
where Lucy earlier saw this plot of land | 0:43:21 | 0:43:24 | |
with planning permission for two semidetached houses | 0:43:24 | 0:43:27 | |
and one fully detached one. | 0:43:27 | 0:43:29 | |
# Beach baby, beach baby... # | 0:43:29 | 0:43:30 | |
Whatever you build here will have that as a view. | 0:43:30 | 0:43:35 | |
-Gorgeous! -The plot was bought by Galia for 304 grand, | 0:43:35 | 0:43:40 | |
£119,000 over the guide price. | 0:43:40 | 0:43:44 | |
But Galia was hoping to change the planning. | 0:43:44 | 0:43:47 | |
I'm actually going to submit the planning permission | 0:43:47 | 0:43:50 | |
to erect a detached property on the site, | 0:43:50 | 0:43:53 | |
utilising all the potential space there. | 0:43:53 | 0:43:56 | |
And, actually, run a retreat there. | 0:43:56 | 0:43:59 | |
Galia already had a detox, weight loss, and fitness retreat in Sussex | 0:43:59 | 0:44:04 | |
and she felt the up-and-coming Herne Bay area | 0:44:04 | 0:44:06 | |
would be an attractive addition to the business. | 0:44:06 | 0:44:09 | |
But she would require change of use | 0:44:09 | 0:44:12 | |
from residential to commercial | 0:44:12 | 0:44:14 | |
and Galia had also bought a former Victorian toilet block | 0:44:14 | 0:44:17 | |
further down the beach, | 0:44:17 | 0:44:19 | |
hoping to add a facility like a gymnasium | 0:44:19 | 0:44:21 | |
to the planned retreat mix. | 0:44:21 | 0:44:23 | |
Everything was dependent on planning. | 0:44:23 | 0:44:26 | |
How many storeys could the retreat have | 0:44:26 | 0:44:28 | |
and could a basement be allowed? | 0:44:28 | 0:44:30 | |
She knew one thing, she would like a grand nautical facade. | 0:44:30 | 0:44:33 | |
And I'm going to probably call this place, not a boot camp, | 0:44:35 | 0:44:38 | |
but a boat camp | 0:44:38 | 0:44:40 | |
because I'm going to probably build it in the shape of the boat. | 0:44:40 | 0:44:43 | |
Galia thought the small retreat would be completed in a year. | 0:44:43 | 0:44:47 | |
Well, we're back just over four years later. | 0:44:51 | 0:44:54 | |
There are a few boats camped there | 0:44:54 | 0:44:57 | |
but not exactly what Galia had in mind. | 0:44:57 | 0:45:00 | |
The first planning application failed | 0:45:03 | 0:45:05 | |
but eventually Galia has obtained permission for a smaller building | 0:45:05 | 0:45:09 | |
more sympathetic in design to the other properties | 0:45:09 | 0:45:12 | |
on the seafront, including her own toilet block. | 0:45:12 | 0:45:15 | |
And, of course, the icing on the cake | 0:45:17 | 0:45:19 | |
is the close proximity of this plot to the Victorian toilet, | 0:45:19 | 0:45:24 | |
the white building over there. | 0:45:24 | 0:45:25 | |
We're going to integrate both of them. | 0:45:25 | 0:45:28 | |
I can use the same staff working in both locations, | 0:45:28 | 0:45:32 | |
it's easy to reach, | 0:45:32 | 0:45:33 | |
and both of them facing this beautiful, sort of, set-up. | 0:45:33 | 0:45:36 | |
In between the failed planning permission application | 0:45:36 | 0:45:39 | |
and the current ones that have passed, | 0:45:39 | 0:45:42 | |
Galia continued to grow the business | 0:45:42 | 0:45:44 | |
by creating a 15-bedroom retreat in Devon. | 0:45:44 | 0:45:47 | |
The minute I exchanged the contract on the Devon retreat, | 0:45:48 | 0:45:52 | |
on the very same day, the council granted me the permission | 0:45:52 | 0:45:55 | |
for the plot of land to convert it to the retreat, | 0:45:55 | 0:45:59 | |
and you think, "Oh, my God, you've got two retreats." | 0:45:59 | 0:46:01 | |
"You've got that one and you've got that one, what are you going to do?" | 0:46:01 | 0:46:04 | |
So, yeah, I thought, OK, 15-bedroom here, seven-bedroom here, | 0:46:04 | 0:46:09 | |
let's do the 15-bedroom first, fill that in with the guests, | 0:46:09 | 0:46:13 | |
get the money, go back to seven bedrooms. | 0:46:13 | 0:46:15 | |
Galia had further delays due to a forest coming up for sale | 0:46:15 | 0:46:19 | |
opposite her main Sussex retreat. | 0:46:19 | 0:46:21 | |
So, I absolutely had to go and buy that forest and... | 0:46:21 | 0:46:26 | |
..and it still stays as a forest, | 0:46:26 | 0:46:27 | |
so we made some paths there and my guests just walk in the forest. | 0:46:27 | 0:46:32 | |
Having dealt with those distractions, | 0:46:34 | 0:46:36 | |
what are the plans going forward here in Herne Bay? | 0:46:36 | 0:46:40 | |
I'm very much hoping to start the building project | 0:46:40 | 0:46:44 | |
on the plot in about six months' time. | 0:46:44 | 0:46:47 | |
And it's quite exciting to now work out on the minor details, | 0:46:47 | 0:46:51 | |
like the nautical theme of the retreat, lovely little features, | 0:46:51 | 0:46:56 | |
colour of the curtains, | 0:46:56 | 0:46:58 | |
maybe bunk beds to make it look like it's a ship inside, | 0:46:58 | 0:47:02 | |
so that, you know, you feel quite excited. | 0:47:02 | 0:47:05 | |
You see the water outside | 0:47:05 | 0:47:07 | |
and, inside, you feel you're on the ship sailing into unknown. | 0:47:07 | 0:47:12 | |
Was it a case of sailing into the unknown | 0:47:12 | 0:47:15 | |
with a £250,000 to £350,000 budget forecast? | 0:47:15 | 0:47:19 | |
So far I've spent about £15,000 on architects | 0:47:19 | 0:47:24 | |
and various other fees to obtain those permissions, | 0:47:24 | 0:47:27 | |
and I anticipate to spend another £200,000. | 0:47:27 | 0:47:33 | |
Galia spent 304,000 at auction | 0:47:33 | 0:47:36 | |
and has spent another 15 on plans for the retreat. | 0:47:36 | 0:47:39 | |
We called in a local estate agent | 0:47:39 | 0:47:41 | |
for his specialist knowledge of the area and the plot. | 0:47:41 | 0:47:44 | |
What's his view? | 0:47:44 | 0:47:46 | |
It's so unique and I can't think of anything else, really, | 0:47:47 | 0:47:49 | |
on the Kent coast that it compares with, | 0:47:49 | 0:47:53 | |
particularly the scale of the building. | 0:47:53 | 0:47:55 | |
If you're talking about a larger building | 0:47:55 | 0:47:57 | |
and larger premises there are probably | 0:47:57 | 0:47:59 | |
ones that would compete with it, | 0:47:59 | 0:48:00 | |
but it is quite unique, in terms of its scale. | 0:48:00 | 0:48:03 | |
I think, if I was the investor, | 0:48:03 | 0:48:05 | |
I'd probably stick to the safer option | 0:48:05 | 0:48:07 | |
of selling it as residential, rather than the commercial. | 0:48:07 | 0:48:11 | |
I think there's a bigger market | 0:48:11 | 0:48:12 | |
and the returns would probably be higher. | 0:48:12 | 0:48:14 | |
Has the £319,000 total investment | 0:48:14 | 0:48:17 | |
grown over the time since the plot was purchased? | 0:48:17 | 0:48:19 | |
If I was trying to sell this plot of land, today, | 0:48:19 | 0:48:22 | |
you're probably looking around 300,000, maybe 350, | 0:48:22 | 0:48:25 | |
that sort of area. | 0:48:25 | 0:48:27 | |
So, you need to have, actually, an imagination | 0:48:27 | 0:48:29 | |
to see this car park as a plot of land. | 0:48:29 | 0:48:34 | |
Well, I haven't lost any money. | 0:48:34 | 0:48:36 | |
Adding Galia's added £200,000 build costs | 0:48:36 | 0:48:39 | |
to the costs so far gives a total of 519,000. | 0:48:39 | 0:48:44 | |
What could the building sell for when completed? | 0:48:44 | 0:48:47 | |
Probably looking at a resale value freehold of around £750,000. | 0:48:47 | 0:48:52 | |
That is a potential pre-tax profit of 231,000. | 0:48:52 | 0:48:57 | |
I think 750 | 0:48:57 | 0:49:00 | |
is certainly the correct figure, | 0:49:00 | 0:49:04 | |
actually, once it's done and finished. | 0:49:04 | 0:49:06 | |
Even with that figure in mind, I'm already making profit. | 0:49:06 | 0:49:11 | |
We know Galia's mission | 0:49:11 | 0:49:13 | |
is for a bespoke bijou health and fitness retreat, | 0:49:13 | 0:49:16 | |
but let's look at the commercial rental rate. | 0:49:16 | 0:49:19 | |
If she tried to rent it out, £25,000 to £30,000 per annum. | 0:49:19 | 0:49:22 | |
Which equates to an annual yield of just under 6%. | 0:49:22 | 0:49:26 | |
But for Galia it's not just about the money. | 0:49:26 | 0:49:28 | |
So, for me the views and the whole aspect of that plot is priceless. | 0:49:30 | 0:49:36 | |
What sort of properties will Galia be looking out for, | 0:49:36 | 0:49:40 | |
once this project is complete? | 0:49:40 | 0:49:43 | |
I'm looking for, you know, disused Victorian toilets, | 0:49:43 | 0:49:46 | |
or something extremely unusual. | 0:49:46 | 0:49:48 | |
A castle? | 0:49:48 | 0:49:50 | |
Well, there is one just a little bit further along from the toilet block. | 0:49:51 | 0:49:55 | |
Any personal ambitions? | 0:49:55 | 0:49:57 | |
I have this option of taking part in all sorts of activities | 0:49:57 | 0:50:00 | |
that are run at my retreat | 0:50:00 | 0:50:02 | |
but, personally, I would like to learn how to do ballroom dancing, | 0:50:02 | 0:50:07 | |
and after that I'm going to study French. | 0:50:07 | 0:50:10 | |
What specific regimes will be on offer to the clients once the retreat is complete? | 0:50:10 | 0:50:15 | |
Walking on the pebbles barefoot, swimming in the sea all-weather, | 0:50:15 | 0:50:20 | |
eating the seaweed. | 0:50:20 | 0:50:22 | |
How exciting! | 0:50:22 | 0:50:23 | |
I'm sure that sounds like a seaside idyll for some. | 0:50:25 | 0:50:27 | |
Others might prefer a hot sandy beach, though. | 0:50:27 | 0:50:30 | |
I guess it's horses for courses. | 0:50:30 | 0:50:32 | |
Seahorses, of course. | 0:50:33 | 0:50:34 | |
We return now to Edmonton Green in the London Borough of Enfield, | 0:50:40 | 0:50:44 | |
where earlier I looked around this three-room first-floor flat, | 0:50:44 | 0:50:48 | |
bought at auction for 165 grand. | 0:50:48 | 0:50:51 | |
Your bathroom there definitely needs refurbishment. | 0:50:52 | 0:50:55 | |
And then through into this room, | 0:50:55 | 0:50:56 | |
which is your main living accommodation. | 0:50:56 | 0:50:58 | |
This is a nice living area, | 0:50:58 | 0:51:00 | |
especially as you come through this way through to your kitchen. | 0:51:00 | 0:51:03 | |
Clearly seen better days. | 0:51:03 | 0:51:05 | |
Probably stick a few more windows in here, | 0:51:05 | 0:51:07 | |
but, apart from that, I think it practically works very well, | 0:51:07 | 0:51:10 | |
especially as it's through that back door there | 0:51:10 | 0:51:12 | |
out on to a little terrace. | 0:51:12 | 0:51:14 | |
And the added bonus was this jungle. | 0:51:14 | 0:51:16 | |
Outside space in London is always something that comes at a premium, | 0:51:16 | 0:51:20 | |
so why was this flat guided at 100 grand? | 0:51:20 | 0:51:23 | |
Yes, there was a catch. | 0:51:23 | 0:51:25 | |
A short 42-year lease. | 0:51:25 | 0:51:27 | |
It was bought by Rohema and her husband Mujibah, | 0:51:27 | 0:51:31 | |
who weren't too concerned about the short lease, | 0:51:31 | 0:51:34 | |
as they were adding this to their rental portfolio. | 0:51:34 | 0:51:38 | |
-What do you look for? -We look for something, | 0:51:38 | 0:51:41 | |
I'm very interested to do with renovating and everything, | 0:51:41 | 0:51:44 | |
because I enjoy myself doing this. | 0:51:44 | 0:51:47 | |
I look for the rental income, location, | 0:51:47 | 0:51:49 | |
-where we can make more profit. -Right. | 0:51:49 | 0:51:51 | |
It's an approach they've found very profitable over the years. | 0:51:51 | 0:51:56 | |
But I was interested to see what changes they would bring | 0:51:56 | 0:51:58 | |
to this property, which they bought without seeing inside. | 0:51:58 | 0:52:03 | |
So, I have to do the central heating, the double glazing, replastering, | 0:52:03 | 0:52:08 | |
take the ceiling down and everything, new bathroom, kitchen, | 0:52:08 | 0:52:11 | |
and the garden, obviously, is junk. | 0:52:11 | 0:52:14 | |
-Yes! -I have to clean this mess. | 0:52:14 | 0:52:16 | |
They thought it would take three to four months to do the refurbishment | 0:52:16 | 0:52:20 | |
and were looking into the feasibility | 0:52:20 | 0:52:21 | |
of extending into the roof space with another two bedrooms. | 0:52:21 | 0:52:25 | |
Well, we're back five months later, and let's start with that jungle. | 0:52:25 | 0:52:29 | |
Underneath it they found a garden | 0:52:31 | 0:52:33 | |
which, after calling in landscapers, turned out nice again. | 0:52:33 | 0:52:36 | |
What about the interior? | 0:52:38 | 0:52:40 | |
# And I'm picking up the pieces I want to cry | 0:52:40 | 0:52:43 | |
# But you don't see that I'm the one by your side... # | 0:52:43 | 0:52:50 | |
There's a list of new things. | 0:52:50 | 0:52:52 | |
New gas supply for the house and central heating, | 0:52:52 | 0:52:55 | |
new flooring, and a new fuse box and a rewire. | 0:52:55 | 0:52:58 | |
# And I'm picking up the pieces... # | 0:53:00 | 0:53:04 | |
A lot of unwanted pieces have been picked up. | 0:53:04 | 0:53:07 | |
# I found a photograph | 0:53:07 | 0:53:10 | |
# Behind the TV... # | 0:53:10 | 0:53:14 | |
It's much tidier. | 0:53:14 | 0:53:17 | |
# Are you missing the way it used to be? | 0:53:17 | 0:53:21 | |
# And I have changed this room around more often lately... # | 0:53:21 | 0:53:27 | |
The new list continues with new doors and new plasterboard | 0:53:29 | 0:53:31 | |
and skimmed ceilings. | 0:53:31 | 0:53:33 | |
But not until they'd called someone in to fix a roof leak | 0:53:33 | 0:53:36 | |
and not forgetting, of course, there's a new bathroom. | 0:53:36 | 0:53:39 | |
When we last saw them, the couple were planning a loft extension | 0:53:44 | 0:53:48 | |
and weren't in a great hurry to extend the 42-year lease, | 0:53:48 | 0:53:51 | |
as they were letting the flat. | 0:53:51 | 0:53:53 | |
But recent developments have changed that. | 0:53:53 | 0:53:55 | |
# And I'm picking up the pieces she left behind. # | 0:53:59 | 0:54:02 | |
Over to Rohema to take up the story. | 0:54:06 | 0:54:09 | |
While we was doing the work the ground floor vendor | 0:54:10 | 0:54:13 | |
showed interest to sell the property, | 0:54:13 | 0:54:16 | |
so we just thought, you know, we can get a good deal | 0:54:16 | 0:54:19 | |
and he actually sold the property to us | 0:54:19 | 0:54:21 | |
below the market value, so that was good. | 0:54:21 | 0:54:24 | |
Owning the upstairs and downstairs flat | 0:54:25 | 0:54:28 | |
makes applying for the freehold a much simpler legal process. | 0:54:28 | 0:54:31 | |
It's still expensive but they've saved money | 0:54:31 | 0:54:34 | |
by holding off on the loft conversion. | 0:54:34 | 0:54:38 | |
We're not going to do the loft conversion now. | 0:54:38 | 0:54:40 | |
Once we get the freehold, then we'll think do loft conversion, | 0:54:40 | 0:54:44 | |
or move on to another project. | 0:54:44 | 0:54:47 | |
We have researched the market | 0:54:47 | 0:54:49 | |
and found out there is more demand for two-bedroom houses, or flats, | 0:54:49 | 0:54:53 | |
and our downstairs is already rented out, | 0:54:53 | 0:54:57 | |
and upstairs is already rented out. | 0:54:57 | 0:55:00 | |
If further proof were needed, | 0:55:00 | 0:55:01 | |
clearly these two don't let the grass grow under their feet. | 0:55:01 | 0:55:05 | |
How was it clearing the garden? | 0:55:05 | 0:55:07 | |
It took us about two days to clear. | 0:55:07 | 0:55:09 | |
Everything was just dumped in there, | 0:55:09 | 0:55:11 | |
so we actually hired three skips to clear them. | 0:55:11 | 0:55:15 | |
Once was everything cleared, we actually found out | 0:55:15 | 0:55:19 | |
there's built... A shed was there. | 0:55:19 | 0:55:21 | |
There was nice old tiles was there. | 0:55:21 | 0:55:24 | |
So, the garden was done | 0:55:24 | 0:55:26 | |
but was hidden under the jungle and the rubble and old furniture. | 0:55:26 | 0:55:31 | |
Were there any arguments along the way? | 0:55:31 | 0:55:33 | |
Definitely, definitely. | 0:55:33 | 0:55:35 | |
There was lots of arguments and disagreements | 0:55:35 | 0:55:39 | |
with the colours, with the sizes. | 0:55:39 | 0:55:42 | |
Sometimes just the stress and the pressure, yeah. | 0:55:42 | 0:55:47 | |
What about the three- to four-month timescale? | 0:55:47 | 0:55:50 | |
It's ended up 16 weeks because we bought the ground floor flat. | 0:55:50 | 0:55:54 | |
So we was doing the work there, so that's why it took 16 weeks. | 0:55:54 | 0:56:00 | |
And the £25,000 to £30,000 budget forecast? | 0:56:00 | 0:56:04 | |
With everything, it's 19,000. | 0:56:04 | 0:56:08 | |
Not... | 0:56:08 | 0:56:09 | |
It didn't exceed 19, innit? | 0:56:09 | 0:56:12 | |
-Yeah, just... -19,000. -..19,000. | 0:56:12 | 0:56:15 | |
We called in two local estate agents | 0:56:15 | 0:56:17 | |
to get their opinions and evaluations. | 0:56:17 | 0:56:20 | |
Mujibah and Rohema bought upstairs for 165 grand | 0:56:20 | 0:56:24 | |
and spent 19 more refurbishing it. | 0:56:24 | 0:56:27 | |
It's been done to a good standard. | 0:56:27 | 0:56:30 | |
A lot of people will be interested in the property. | 0:56:30 | 0:56:32 | |
A lot of neutral colours, playing safe with magnolia white walls. | 0:56:32 | 0:56:37 | |
It would be a good property for the rental market | 0:56:37 | 0:56:39 | |
and also the selling market, | 0:56:39 | 0:56:41 | |
depending what options the landlords go for. | 0:56:41 | 0:56:43 | |
And the agent who saw the property before the work began. | 0:56:43 | 0:56:46 | |
It's my second time inside the property. | 0:56:46 | 0:56:48 | |
Cor, there's been fantastic changes. | 0:56:48 | 0:56:50 | |
It doesn't look like the same place. | 0:56:50 | 0:56:52 | |
Shows really, really well now. | 0:56:52 | 0:56:54 | |
It's a popular property, anyway, this type of accommodation. | 0:56:54 | 0:56:57 | |
But it's been done up and it looks spectacular. | 0:56:57 | 0:57:01 | |
We know this is going straight to rent | 0:57:01 | 0:57:03 | |
but what potential profit could they realise | 0:57:03 | 0:57:06 | |
if they sold their £184,000 investment on the open market? | 0:57:06 | 0:57:10 | |
Well, the agents' values varied between 250,000 and 285,000. | 0:57:10 | 0:57:15 | |
What do you make of that? | 0:57:15 | 0:57:16 | |
-Yeah. -285 is a reasonable price, I think, | 0:57:18 | 0:57:21 | |
because recently we bought a ground floor | 0:57:21 | 0:57:25 | |
and it was in-between 250 and 285. | 0:57:25 | 0:57:27 | |
So, if they sold, that could mean a potential profit of around £100,000 | 0:57:27 | 0:57:31 | |
minus taxes and any fees, including extending that lease. | 0:57:31 | 0:57:36 | |
So, what about the all-important rental? | 0:57:36 | 0:57:39 | |
The rental would be about £1,250 per calendar month. | 0:57:39 | 0:57:43 | |
Rental should be around £1,250 per calendar month | 0:57:43 | 0:57:47 | |
to £1,300 per calendar month. | 0:57:47 | 0:57:49 | |
We already rent out the same, actually, so, with the price range. | 0:57:49 | 0:57:54 | |
For 1,250, yeah. | 0:57:54 | 0:57:56 | |
On this upper flat they spent 184,000, | 0:57:56 | 0:58:00 | |
so that £1,250 per calendar month gives a yield of just over 8%. | 0:58:00 | 0:58:06 | |
But will they continue with the buy-to-let model? | 0:58:06 | 0:58:10 | |
This is my job the last 12 years... 14 years I'm doing this. | 0:58:10 | 0:58:14 | |
So, yeah, I'll continue. | 0:58:14 | 0:58:15 | |
So, that's it for today's show. | 0:58:19 | 0:58:21 | |
Do you think our buyers made some mistakes, | 0:58:21 | 0:58:23 | |
or did they get it right from beginning to end? | 0:58:23 | 0:58:25 | |
Don't worry, we've got plenty more stories in the pipeline, | 0:58:25 | 0:58:28 | |
so join us next time on Homes Under The Hammer. | 0:58:28 | 0:58:30 | |
-Goodbye. -Bye-bye. | 0:58:30 | 0:58:31 |