Episode 75 Homes Under the Hammer


Episode 75

Following progress on properties in Sandgate in Kent and Bolton in Lancashire as well as a plot of land in Enfield in London, all of which have been sold at auction.


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Transcript


LineFromTo

Hello and welcome to the show.

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Now, the property market can be turbulent,

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and sometimes it's difficult to know when to make your move.

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Yes, it's definitely best not to rush in headfirst,

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and instead take your time, consider your options,

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and one of those options might be to see what's on offer

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under the hammer.

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Well, buying at auction is not an option that everyone considers,

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and yet, it's not as daunting as you might think.

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You can get a great variety and even better value if you do go,

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so let's find out what caught the eye of our three buyers today.

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Coming up, this two-bed flat in Sandgate, Kent

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is all sun, sea and skirting boards.

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I've never seen such a big skirting board!

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It might be another flat,

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but there's quite the climb at this two-bed apartment in Bolton.

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HE PANTS Well, that'll keep you fit!

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And there might not be a building at this plot in Enfield,

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but Lucy's already decorating.

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You've got this lovely log placed right here!

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All these properties have been sold at auction,

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and we'll find out who bought them,

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

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Yours at 88.

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We're at the Kent seaside in the village of Sandgate.

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Birthplace of comedy actress Hattie Jacques,

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who was famous for her roles in the Carry On films.

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So, let's have a bit of a Carry On By The Sea in Sandgate.

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Ironically, you don't have any sands.

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What you do have is this gorgeous pebbly beach,

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and just over there you've got some pretty little boutiques.

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It's quintessentially English, so lovely.

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Over there, you've got Folkestone. That way, you've got Hythe,

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and in that direction, France!

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So, the only question begging is, where's my cocktail?

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Ah-ha!

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OK, you guys, you can clear off.

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I need a bit of "me time".

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Sadly, I can't just stay here and relax.

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There's a property to see, so I guess I better get a move on.

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The property I'm here to see is on this busy road, which is not ideal,

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but the village of Sandgate isn't served by a train station

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so you do want good transport links close by.

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This is good news. I've spotted that it's actually elevated,

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so that should dilute some of this noise.

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So, here's our property.

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It has a guide price of £100,000 to £105,000 and two bedrooms.

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Let's go look!

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Access is certainly limited.

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I don't fancy coming up here laden with bags of shopping.

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But luckily, this flat is on the first floor.

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Now, originally, this would've been one big house

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and it's been carved into lots of flats,

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but my first impressions... It doesn't feel claustrophobic,

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like it has been carved up badly.

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The ceilings are high, there's great feeling of space,

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the first bedroom has a terrific size.

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And also, you've got good storage space, which is always a plus.

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Into the reception room,

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and this actually has the feeling of a grand house.

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The proportions are just fantastic.

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I love the features, too, so this might not be original,

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but it's in keeping with some of the other features in the room.

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Somebody's really thought about this.

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And look at this!

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That's what I call a skirting board.

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I've never seen such a big skirting board.

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Fantastic! Over here, well, you do have double glazing,

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which is good, but I can also feel a bit of air coming through the windows.

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Not great, especially when you live on a main road like this,

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so you definitely want to get those seen to.

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I really, really like here.

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It has a great feeling and a feeling is something that money can't buy.

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# It's more than a feeling

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# More than a feeling

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# When I hear that old song they used to play

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# More than a feeling

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# And I begin dreaming

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# More than a feeling

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# Till I see Marianne walk away... #

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Down the hall, bathroom in really good condition.

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So often I say, that has to come out - actually, you could keep it as is.

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It's pretty pristine.

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Now, the kitchen.

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OK, the first thing that strikes me is an immediate drop in the roof.

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I don't know why.

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I mean, it's fine for me, I'm five foot three and a half,

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but the cameraman might struggle a bit.

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So I do wonder if that's hiding something?

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It doesn't seem to flow very well at all.

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The kitchen's in pretty decent order, and I'm going through to...

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That's nice to see, you have a little outdoor area,

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you have your own back door, small patio.

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And then...

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Hmm! An incredibly small second bedroom.

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This doesn't live up to my expectations of the first half of the house,

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you had the space, the height, and now you've got a second

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very small bedroom and a really low ceiling.

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It feels a wee bit caravan-y.

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I'd say this is definitely a flat of two halves.

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# Saw me on the television

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# Saw me on a television

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# But that's just the half of it... #

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It's more than half the story of this flat, too,

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because along with the sale, you get not half, but a quarter share

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of the freehold.

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This means that you and the other co-freeholder owners would need to work

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together and agree on fixes to the fabric of the building.

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But it also means that you can share the cost of this work,

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or to extend the lease, which only has 71 years left on it.

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So, we've seen the flat, but it's time to ask a local estate agent along

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for his thoughts on the property, guided at £100,000 to £105,000.

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The flat itself needs quite a lot of internal work.

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Basically, refurbishments throughout.

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There are some damp areas, those will need attention.

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Some of the window frames need looking at, could be a little bit of rot in some of the frames.

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Kitchen and bathroom, they've been modified recently,

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but the other rooms will certainly need quite a bit of attention.

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Once it's been given the attention it deserves,

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what could this flat, guided at £100,000 to £105,000, sell and rent for?

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With all the money spent on this flat,

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it could sell in the region of £160,000.

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It would rent for somewhere in the region of £675 per calendar month.

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I like this flat. I mean, I really like it.

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The location, the feel, the layout.

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The only thing is, the further you get back the more cave-like and enclosed it feels.

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But both the sales and rental market in this area are buoyant.

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So, if you can get it close to that guide price,

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you could be on to a winner.

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Let's find out who agreed when it went to auction.

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Good-looking flat there, good location,

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lots of little pubs and restaurants there.

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Where are you going to start me on that one? Can I see £100,000 to start me?

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Hands should be shooting up everywhere. £100,000, can I see £100,000?

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When I say shooting up, one hand's gone up fairly slowly.

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£100,000 I've got.

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102, 104.

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106? 106.

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This lot was attracting a number of bidders.

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So, we rejoin at £120,000.

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20 I've got, 122 I'm looking for.

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122 bid, I've got.

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125 now, if you like.

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125 if you like, 125.

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At 125, then, for the first time.

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125, sitting down, for the second time.

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125 for the third and final time.

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Are we all done?

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Yours at 125.

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The successful £125,000 bid was made by Paul,

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and he brought his family along to see his first auction purchase.

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Wife Amy leads the way with daughter Sophie, and behind Paul is his dad John,

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and youngest of the family, Chloe.

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While they checked out the flat,

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I had a chinwag with Paul about his plans.

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-Hello, Paul.

-Hello.

-Congratulations.

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-Thank you.

-Pleased to meet you.

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-Pleased to meet you, too.

-So, talk me through why this property.

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I loved it when I came in. Did you love it? Was it love at first sight?

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Yeah, it was this room, mainly.

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It's high, it's bright, massive windows.

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-Just caught us straightaway.

-Yeah.

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And what's your background, is this something you do a lot?

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No, it's our first adventure into this.

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I used to be an accountant.

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And is that still your day job and you're doing this a bit on the side?

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Yes. Yeah, but hopefully, maybe more into this if we get successful at it.

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-So you've got the day job as an accountant.

-Yes.

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-I saw you had two adorable wee girls...

-Yes.

-How old are they?

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Sophie's seven, and Chloe will be three in a couple of weeks.

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OK, so you're outnumbered.

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-Indeed.

-Along with your wife,

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that's quite a lot of balancing.

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How are you going to fit this in?

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I'm going to be self-employed at accountancy now,

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so I'm going to take a little bit more time away from that to put in more work here.

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Yeah. So, why now, Paul?

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It seemed the right time. Me dad's looking to do something.

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He's got a bit of savings he's hoping to put into something a bit more substantial

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than the bank interest, really, so he's hoping to make some money out of this.

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So, this is a father-and-son team?

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-It is.

-Nice!

-It's been fun so far.

-Great!

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And I suppose it is a bit of a bonding experience.

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When young kids come along,

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sometimes you don't have that much time to spend with your dad.

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Yeah, true. Yeah, true.

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I'm quite lucky, I spend quite a bit of time with Dad,

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but it needs to be a bit more.

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So, you're going into this together, and how will that work?

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Who's doing what? Have you carved up?

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We're going to be hands-on with all of it, really.

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There's not too much that we can't do in this one.

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There's a few other bits and bobs, we've got some friends, family that can help us out.

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And talk me through your plans for the place.

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Well, we're going to do a new kitchen, new bathroom, new windows.

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-Yeah.

-And then just spruce up the rest to what's required.

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There's a few other things we've got to look into, like why the roof's so low, perhaps.

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That's pretty much all we're going to do to it, really.

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OK, you could have a new bathroom, but it's not in bad nick.

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Why are you...? Why do you want to actually do the whole lot,

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new kitchen, new bathroom?

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Well, the plan is just make it more modern, more fresh,

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more appealing to sell it on.

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It's in good nick, as you say, but it's a little dated, we feel.

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Well, I see what Paul is saying, but the first rule of developing

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is usually not to spend money you don't need to,

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and he's clocked the low ceiling -

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he might just need money for that instead.

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However, he and dad John are aiming for a two-month timescale.

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-And your budget?

-We anticipate 10,000 will be enough.

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10,000 for...?

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New kitchen, new bathroom, new windows...?

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-Yeah.

-Tell me what else, again?

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The carpets, paint it, spruce it up.

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Yes, that is my doubtful face,

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because that's a fair list of work to be done for that money.

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Still, one bit of this project that has been moving at pace

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is the lease situation.

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It has 71 years left, which is getting into territory

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where it's hard to get a mortgage.

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The lady above actually is extending the lease.

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She asked if we'd be happy to do it with her,

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cos we own 25% of the freehold as well.

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-So, combine the thing with everybody.

-Well, that's good news.

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The bedroom at the back, pretty small.

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-Tiny, yeah, very small.

-HE LAUGHS

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Yeah, a single bed goes in there quite comfortably,

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but we're hoping people that would buy this, you know,

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it's a spare room for them, rather than... I mean, it's a two-bedroom,

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but it's good for a young family, perhaps.

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Paul, I can't wait to see what you and your dad John do with this place.

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-Congratulations, again. Good luck!

-Thank you very much.

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This is a real family affair for Paul,

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and he's got himself a lovely flat.

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It's a bit of a switch from accountancy to property developing,

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but hopefully he can make the figures stack up.

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You can find out if he did later in the show.

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Around 12 miles north of Manchester, the town of Bolton

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has had a fair bit of regeneration over the last few years.

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However, things haven't stopped there.

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Recently, it was announced that the council plans to spend £1 billion on the town centre.

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The plans include building 1,800 new homes,

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as well as creating 7,500 permanent new jobs.

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Now, that's what I'm talking about!

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# Talkin' 'bout my generation

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# I said my generation... #

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One of the great things about auctions is the variety of property

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that's on offer.

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From flats, to houses, to semidetached to whatever...

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And also the age,

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from really old stuff to things like I'm seeing today.

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Built around ten years ago in this block is a two-bedroom flat.

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Guide price of £55,000, it's on the top floor.

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Let's have a look.

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# It's a long, lonely highway when you're travelling all alone

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# And it's a mean old world when you got no-one to call your own

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# And you pass through towns too small to even have a name

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# Oh, yes

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# But you got to keep on going, on that road to nowhere

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# Got to keep on going... #

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Finally!

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HE PANTS Well, that'll keep you fit!

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Yes, and no lift, which is definitely something to note.

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So, anyone who has difficulty with stairs,

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that would definitely be an issue.

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In fact, pretty much rule this flat out.

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But what have we got?

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Well, it seems to be, as we walk through the door, in pretty nice condition.

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Nice carpet. Bathroom there.

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It's a reasonable size, it doesn't seem to have a shower.

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A reasonable size bath but you'd want to maybe convert that

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into a bath/shower, perhaps.

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The bedroom's down there, another bedroom here, which is not a bad size.

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I mean, lots of light coming in from the windows, which is quite good.

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It's all pretty spanking new,

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so you've got sort of the latest double-glazed windows and stuff.

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And in fact, ah-ha! That's why there isn't a shower there,

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there's a shower in this bedroom,

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so it's like an en suite.

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But, oh, dear. That's not ideal, is it?

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It's interesting, isn't it? Even in a new build,

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or relatively new-build property like this,

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a few things weren't necessarily thought through.

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Ventilation problems.

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Condensation on there has caused the paperwork to come off

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on that ceiling - obviously you'd need to look at the ventilation in there,

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improve whatever there is.

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As you can see, lots of mould going on,

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you want to catch that before it gets any worse.

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So, a bit of remedial work.

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Apart from that, well, let's have a look.

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I'd say it does make a difference,

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coming to something like this with no smells, no damp, no nothing,

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well, apart from that bit there.

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A bit of a storage cupboard there, with your electric water heater.

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Second bedroom there. And talking about electric,

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I know there's no gas in the whole building,

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so electricity is what you're going to have to have for your cooking and your heating.

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But it's all pretty pleasant, I like this room here,

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really nice living room/kitchen.

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It's even got white goods! I mean...

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It's just there, it's ready to rent out.

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I mean, in terms of location, this whole little development,

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just on the outskirts of Bolton here.

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Open that up and you've got these big, sort of door-window type things that are really good.

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Now, you are overlooking the car park of what is obviously

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some slightly out-of-town complex.

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You've got a cinema, you've got restaurants and things.

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That's very convenient, certainly I'd be over at the cinema all the time.

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One thing you might want to consider though,

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on a Friday and Saturday night, in fact, I guess most evenings,

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that might be quite busy, and therefore quite noisy.

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So, if you are after peace and quiet, this isn't going to work.

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But it's a balance, isn't it?

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It's a very well-located flat, it needs virtually nothing done to it.

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And if this is just a "buy it and forget it"

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or "move in" kind of property,

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if that's what you're looking for at auction,

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this is definitely your baby.

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# No alarms and no surprises

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# No alarms and no surprises, please... #

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I don't see any nasty surprises popping up here,

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but let's get a second opinion anyway.

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What did a local estate agent think of the flat, guided at 55,000?

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The property's a fantastic size,

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to have two good-size bedrooms is a real plus in this apartment block.

0:17:190:17:23

So, there's not much that needs doing at this property.

0:17:230:17:26

Just a bit of a spruce up, a lick of paint,

0:17:260:17:28

and maybe some ventilation in the en suite bathroom.

0:17:280:17:30

Just as I expected,

0:17:300:17:32

but is there anything I'd missed in the two-bedroom flat?

0:17:320:17:35

It is a leasehold property,

0:17:350:17:37

it's not unusual for these apartments to be leasehold,

0:17:370:17:39

they are all leasehold in this block.

0:17:390:17:41

There's roughly around 110 years remaining on the lease.

0:17:410:17:44

So, no nasty surprises there,

0:17:440:17:46

but I'd always recommend, when buying a property with communal

0:17:460:17:49

facilities like stairwells and gardens,

0:17:490:17:51

to check out what, if any, management charges there are.

0:17:510:17:55

Sometimes they can catch you out.

0:17:550:17:57

The sales and rental market are brilliant in this area at the moment

0:17:590:18:02

and they are moving really, really quickly.

0:18:020:18:04

For myself, I would say that the sales market for this particular property

0:18:040:18:07

would be the better option.

0:18:070:18:08

In the sales market, I would expect the property to achieve £80,000 to £85,000.

0:18:080:18:12

If the property was to go on the rental market,

0:18:120:18:14

I would expect it to achieve £475 per calendar month.

0:18:140:18:18

Well, if the estate agent's valuation is to be believed,

0:18:180:18:21

and you can get this flat for anything like the guide price,

0:18:210:18:23

then there really is easy money to be made on this one

0:18:230:18:26

and not too much work at all to do, to sort it out.

0:18:260:18:30

Could be a nice little property for somebody,

0:18:300:18:32

or perhaps an investment opportunity.

0:18:320:18:34

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

0:18:340:18:37

Modern build, two-bedroom, top floor flat.

0:18:390:18:41

55 is the guide, again.

0:18:410:18:43

Start me at 55.

0:18:430:18:45

50?

0:18:450:18:46

Anybody here, 50? 45?

0:18:460:18:49

45 bid.

0:18:490:18:50

46, 47.

0:18:500:18:51

47, madam?

0:18:510:18:53

47, 48.

0:18:530:18:54

48 bid, 49 bid at the bar.

0:18:540:18:56

50, anyone?

0:18:560:18:58

50 here. 51, sir.

0:18:580:19:00

52 bid, 53.

0:19:000:19:02

54, 54 bid.

0:19:020:19:04

55, 56.

0:19:040:19:07

57, 57 at the bar?

0:19:070:19:09

Here at 56. At £56,000, then.

0:19:100:19:13

You're back in at 57.

0:19:130:19:15

58?

0:19:150:19:16

57 and a half, 58?

0:19:160:19:19

£57,500, then.

0:19:190:19:22

With you, first time.

0:19:220:19:24

Second time at £57,500.

0:19:240:19:28

At £57,500, I'm here to sell.

0:19:280:19:31

It's your lucky day, all out.

0:19:310:19:33

First, second time, third time, are you sure?

0:19:330:19:35

-Well done, madam.

-The bidder with an eye for a bargain was Sarah,

0:19:370:19:40

who picked up this almost pristine flat for £57,500.

0:19:400:19:45

So, I caught up with her to have a chat about...

0:19:450:19:49

Oh, I don't know, the weather?

0:19:490:19:50

Sarah, very nice to meet you.

0:19:510:19:53

-You too.

-Congratulations.

0:19:530:19:54

-Thank you.

-Not much to do on this one, then.

0:19:540:19:57

-HE LAUGHS

-No, no.

0:19:570:19:59

Tell me why you wanted to buy this flat.

0:19:590:20:01

Basically, it was a bit of a spur-of-the-moment decision.

0:20:010:20:05

I had done a bit of research, I was looking for a project.

0:20:050:20:09

I was a little bit, like, hadn't done one for a while,

0:20:090:20:12

and I saw that there were five of these flats all coming to auction on

0:20:120:20:17

the same day. And I just thought, law of supply and demand,

0:20:170:20:21

that means that potentially there's a bargain to be had.

0:20:210:20:23

You mean that because there was five at the auction...

0:20:230:20:26

-Yeah.

-..that's going to drag the price down a little bit?

0:20:260:20:28

-That was my thinking.

-OK.

-I live in Hull,

0:20:280:20:31

I do know Bolton a little bit cos I've got a friend in Bolton,

0:20:310:20:34

so I know this area, I know this complex.

0:20:340:20:37

And on the morning of the auction I was at the gym in Hull,

0:20:380:20:43

on the treadmill chatting to a mate of mine, and I said,

0:20:430:20:46

"Oh, I just don't know, should I do this auction?"

0:20:460:20:49

I talked it through and he said, "It sounds like it's worth the trip."

0:20:490:20:54

A day at the auction's always fun.

0:20:540:20:57

So I came over, had an upper limit in mind and thought, if one of them,

0:20:570:21:02

if it's possible to get one for under that limit then I'll

0:21:020:21:06

go for it.

0:21:060:21:08

# I just ran

0:21:080:21:10

# I ran all night and day

0:21:100:21:13

# I couldn't get away. #

0:21:130:21:15

Well, she might've been just off the treadmill,

0:21:150:21:17

but Sarah needn't have sweated.

0:21:170:21:19

She got the flat for £2,500 under budget of 60,000.

0:21:190:21:23

So she's got some spare cash left over to do work on the flat -

0:21:230:21:28

not like she'll need to spend much money to get it ready for the rental market.

0:21:280:21:32

But she did say earlier that she did want a project.

0:21:320:21:35

Not much of a project, though, is it? There's nothing to do.

0:21:350:21:38

No, and I know at some point I'm going to have to fess up to you that,

0:21:380:21:42

no, I didn't view the inside before the auction.

0:21:420:21:47

And I watch the show regularly, and I know that's a big faux pas.

0:21:470:21:51

So the day that I did get to come and view it afterwards,

0:21:530:21:57

I was very pleasantly surprised to discover that it literally is just

0:21:570:22:01

-pretty much good to go.

-In terms of what you are going to do to it,

0:22:010:22:05

I can only see one thing that you might even contemplate.

0:22:050:22:08

Well, the thing that strikes me is just tackling the bathroom.

0:22:080:22:12

-Yeah.

-The en suite bathroom.

0:22:120:22:13

-Yeah.

-It's clearly got a condensation problem, so I'm looking to get

0:22:130:22:18

additional extraction, or get the extractor fan moved so it's directly

0:22:180:22:22

above the shower cubicle.

0:22:220:22:24

Obviously, get all of that black mould removed and all the silicon

0:22:240:22:27

replaced, repainted, and other than that, it really is just pretty much good to go.

0:22:270:22:33

So who will do the work in the bathroom?

0:22:330:22:35

I've managed to find a few local contacts,

0:22:350:22:38

so I'm going to get a professional, obviously, to do the electric work,

0:22:380:22:41

the plumbing work.

0:22:410:22:43

If I do decide to give it a lick of paint, that will be me.

0:22:430:22:46

So the budget then, 50 quid, probably, no?

0:22:460:22:48

-Slightly more than that, actually.

-A little more than that but, you know,

0:22:480:22:52

a few hundred tops.

0:22:520:22:54

-So what's the timescale?

-I'm hoping to have the bathroom completely done

0:22:540:22:59

in the next week or so...

0:22:590:23:00

-Right.

-And it marketed with agents...

0:23:000:23:04

-So two or three weeks or so?

-Two or three, yeah, absolutely.

0:23:050:23:08

Well, there's no reason that it shouldn't be sorted in two to three weeks.

0:23:090:23:12

This one is easy peasy.

0:23:120:23:15

A lick of paint, then Sarah can get back to her day job.

0:23:150:23:18

I'm self-employed, I do consultancy work,

0:23:190:23:22

mainly with the NHS and local authorities.

0:23:220:23:25

So, basically, it's a completely different kind of work.

0:23:250:23:29

Well, yeah. But you enjoy the property stuff?

0:23:290:23:32

-I do, I do, yeah.

-Have you bought and sold before?

0:23:320:23:34

I have, yeah. I've got a small portfolio in Hull, where I live,

0:23:340:23:39

so I've got eight properties.

0:23:390:23:41

This is completely different, though, because all the other

0:23:410:23:44

properties I've got are all Victorian properties.

0:23:440:23:46

-Right.

-They're all within about a mile and a half of where I live.

0:23:460:23:49

-Right.

-I manage them all.

0:23:490:23:50

-That's easier.

-Which is a lot easier.

0:23:500:23:52

So, you know, this is a bit of a different venture.

0:23:520:23:57

Great. Well, listen, congratulations, good luck with it,

0:23:570:24:00

and I'm looking forward to seeing how you get on.

0:24:000:24:02

OK, thanks very much!

0:24:020:24:03

Well, if you need it, this property definitely proof that

0:24:030:24:08

there are bargains to be had at the auction.

0:24:080:24:10

Sarah breaking a few rules, of course,

0:24:100:24:12

by not seeing it beforehand, but it seems she's done really well.

0:24:120:24:17

I don't think there's any jeopardy on this one, is there?

0:24:170:24:19

Will she get the bathroom fixed?

0:24:190:24:21

Will she find a plumber who can do it?

0:24:210:24:24

Gosh, I bet you can't wait until later in the show to find out!

0:24:240:24:26

I'm only kidding - please don't go away!

0:24:280:24:30

In the property business, always expect the unexpected.

0:24:300:24:34

Still to come, Lucy is off the rails at this plot in Enfield.

0:24:350:24:39

Ah, yes, something I did forget to mention.

0:24:390:24:42

Right at the end of this plot is a train track.

0:24:420:24:44

And we'll find out if Sarah was one tradesman short of a renovation back

0:24:470:24:51

in Bolton.

0:24:510:24:53

I didn't know anybody in Bolton.

0:24:530:24:55

Time to sail away back to the Kent coast and the village of Sandgate,

0:25:000:25:05

where I saw this two-bed flat in a handsome building that went to

0:25:050:25:09

auction with a guide price of £100,000-£105,000.

0:25:090:25:13

Access up the front steps could be a problem, but it was the spacious

0:25:140:25:18

master bedroom and the grand lounge that won me over.

0:25:180:25:22

The proportions are just fantastic.

0:25:220:25:25

I love the features, too.

0:25:250:25:28

This might not be original,

0:25:280:25:29

but it's in keeping with some of the other features in the room.

0:25:290:25:33

Somebody has really thought about this.

0:25:330:25:35

And look at this.

0:25:350:25:36

That's what I call a skirting board.

0:25:370:25:40

Now, I'm not one to skirt around the downsides,

0:25:400:25:43

and this flat had a couple of those too.

0:25:430:25:46

The second bedroom was pokey,

0:25:460:25:48

and there was only 71 years left on the lease.

0:25:480:25:51

But the kitchen and bathroom were in good nick,

0:25:520:25:55

and a little bit of outside space made it the perfect property for a

0:25:550:25:59

first-time developer.

0:25:590:26:00

125...

0:26:000:26:02

Cue accountant Paul,

0:26:020:26:04

who snapped it up on auction day for 125 grand and was hoping this would

0:26:040:26:09

be the first of many renovation projects.

0:26:090:26:12

But I wondered if he'd be as good at managing his time as he was managing numbers.

0:26:120:26:18

I saw you had two adorable wee girls.

0:26:180:26:21

-Yes.

-That's quite a lot of balancing.

0:26:210:26:23

How are you going to fit this in?

0:26:230:26:25

Well, I'm going to be self-employed at accountancy now,

0:26:250:26:28

so I'm going to take a little bit more time away from that

0:26:280:26:30

-to do more work here.

-Yeah, so why now, Paul?

0:26:300:26:33

It seemed the right time. My dad's looking to do something,

0:26:330:26:36

he's got a bit of savings, and he's hoping to put into something a bit

0:26:360:26:39

more substantial than the bank interest, really,

0:26:390:26:41

so he's hoping to make some money out of this.

0:26:410:26:43

So this is a father-and-son team?

0:26:430:26:45

It is.

0:26:450:26:46

With dad John at his side, they thought they could get this

0:26:480:26:51

flat in tiptop condition in two months and for a budget of ten grand.

0:26:510:26:56

I thought that was a little tight, but then again,

0:26:560:26:58

I wasn't the accountant.

0:26:580:27:00

So when we came back in six months,

0:27:000:27:02

how did Paul fare on his new career path?

0:27:020:27:06

# Here I come, straight out of my mind or worse

0:27:060:27:10

# Another chance to get burned

0:27:100:27:12

# And start all over

0:27:120:27:15

# I'm gonna start all over... #

0:27:150:27:18

Paul and dad John have certainly started over on this property,

0:27:180:27:22

replacing the kitchen and bathroom that were in decent nick.

0:27:220:27:26

But I must admit, it does look fab.

0:27:260:27:30

# It's so easy

0:27:300:27:32

# I'm gonna start all over. #

0:27:350:27:38

They started over when it came to the woodwork, too,

0:27:380:27:41

stripping back years of paint and starting afresh.

0:27:410:27:44

There's also new carpet and new windows throughout.

0:27:440:27:48

The place looks spotless.

0:27:480:27:50

From the looks of it,

0:27:500:27:51

this father-son partnership has been a roaring success.

0:27:510:27:54

So, how did they split the work?

0:27:560:27:58

-Joint, wasn't it, really?

-Yeah, the work was split,

0:27:590:28:03

probably 50-50 is a fair assessment, but I had to learn quite a lot,

0:28:030:28:07

cos through my life so far, I hadn't done too much of this,

0:28:070:28:10

so it was great fun learning how to move and do stuff.

0:28:100:28:13

It was just really good.

0:28:130:28:14

A touch more physical labour than fiscal for Paul,

0:28:160:28:19

but what about dad John?

0:28:190:28:21

Did he have any experience starting out?

0:28:210:28:24

Only, like, DIY and that sort of thing, and being retired,

0:28:240:28:27

I've got all the time now, and it's been fun working,

0:28:270:28:30

doing it with my son.

0:28:300:28:31

Paul and his dad have been here almost full time,

0:28:330:28:36

doing most of the work themselves.

0:28:360:28:37

Honourable mention to pal Darren, who has been helping out, too.

0:28:390:28:43

So accountancy has definitely been put on the back burner,

0:28:430:28:46

but Paul has been stacking up the numbers when it comes to that lease.

0:28:460:28:49

When we purchased the property, it had 71 years remaining on the lease,

0:28:510:28:54

but after speaking to the mortgage companies et cetera,

0:28:540:28:58

they said 70 years would be fine going forward.

0:28:580:29:01

Nothing's developed from that, and we do own 25% of the lease,

0:29:010:29:06

which the mortgage company was quite pleased to hear.

0:29:060:29:10

So owning 25% of the freehold means

0:29:100:29:13

Paul isn't in any hurry to tackle it,

0:29:130:29:16

and the kitchen ceiling remained the same height as the vent that housed

0:29:160:29:20

the stairs to the flat above, so two possible savings right there.

0:29:200:29:24

But how did the budget stack up?

0:29:240:29:26

Our original budget was 10,000, but we've come in under that at 8,500,

0:29:260:29:30

mainly because we thought we was going to have to have a new boiler,

0:29:300:29:33

which we didn't have to, and we didn't involve a lot of tradespeople

0:29:330:29:36

because we done it ourselves.

0:29:360:29:39

# I'm gonna start all over. #

0:29:390:29:40

Paul and John got the certified trades where needed,

0:29:400:29:44

but other than that, they've kept the costs right down by their DIY approach.

0:29:440:29:48

But is that why they've gone over their two-month timescale?

0:29:480:29:53

The main reason for that is just probably being overcautious with it,

0:29:530:29:56

really, isn't it? Just careful, it's our first one.

0:29:560:30:00

We'd like to think the next one won't be as long,

0:30:000:30:02

on the same scale of things.

0:30:020:30:04

But, you know, we've learned a lot of stuff in this as well,

0:30:040:30:07

so that's taken time to learn that and get it right.

0:30:070:30:10

I think they've done a cracking job on their first adventure,

0:30:100:30:13

and they've come in under budget, spending £133,500 in total.

0:30:130:30:19

But what will two local estate agents think,

0:30:190:30:22

starting with the agent who saw it last time?

0:30:220:30:25

The flat was in fairly poor condition.

0:30:250:30:28

Obviously, they've done a lot of work in here and made it very fresh

0:30:280:30:31

and new, contemporary colours, modern features, modern fitting,

0:30:310:30:35

good-quality carpets.

0:30:350:30:37

Nice all-round, in fact. Very impressed with what they've done.

0:30:370:30:40

Oh, the standard is amazing, it's really, really well done.

0:30:400:30:44

It's nice how they've incorporated the original features as well and

0:30:440:30:48

just make them pop out, a bit like the fireplace.

0:30:480:30:51

Yeah, very good.

0:30:510:30:52

Plenty of selling points, but will their decision not to extend the

0:30:520:30:56

lease have an effect on the values?

0:30:560:30:58

Let's see what the flat could be worth on the sales market.

0:30:580:31:02

I would suggest that this property is currently worth in the region of £155,000.

0:31:030:31:09

If they extended the lease,

0:31:090:31:10

then I believe that it would go up to £175,000.

0:31:100:31:14

If the current owners put this on the market,

0:31:140:31:17

I would expect it to achieve in the region of £165,000.

0:31:170:31:21

My assumption is, is that the value with the extended

0:31:210:31:24

lease isn't going to really be any greater.

0:31:240:31:26

It just increases your market in terms of potential buyers.

0:31:260:31:30

Different opinions there, but with the potential of 20 grand on offer,

0:31:310:31:35

it's worth looking into.

0:31:350:31:37

But how do John and Paul feel about the values with the current lease?

0:31:370:31:42

Well, I was expecting it to be 160,000,

0:31:420:31:44

so it's literally round about where I was thinking,

0:31:440:31:47

so I'm quite pleased with that.

0:31:470:31:49

-Yeah, yeah.

-Shows my research was correct!

0:31:490:31:51

Numbers man, Paul, right on the money again,

0:31:510:31:54

and the value of £155,000 could give them a profit of £31,500,

0:31:540:32:01

minus taxes and fees - plenty of capital for another venture.

0:32:010:32:05

Yeah, I'd definitely do this again, especially with Dad.

0:32:060:32:09

We've really enjoyed it, and we'd like to get another one

0:32:090:32:12

-and do it again, wouldn't we?

-Yes, definitely.

-Yeah.

0:32:120:32:15

This is Enfield, an area ten miles north of London,

0:32:200:32:24

and along with the normal shops and amenities,

0:32:240:32:26

it's a water-lover's paradise - whether it's cruising on the

0:32:260:32:30

River Lee or kayaking on the Olympic course in the Lee Valley Park.

0:32:300:32:35

But will the lot Lucy's here to see be worth splashing the cash on?

0:32:350:32:39

Close to Lee Valley Park and about a five-minute walk to Enfield Lock

0:32:410:32:44

railway station is the lot I'm here to see.

0:32:440:32:47

And, well, it's this, a freehold site of just under 243 square metres.

0:32:470:32:54

Essentially a little space between two sets of houses.

0:32:540:32:58

The guide price - £180,000.

0:32:580:33:01

Well, this is quite an unusual plot/garden, this.

0:33:050:33:08

But what we do know is that it comes with planning permission to build a

0:33:080:33:11

detached two-storey block with two times two-bed self-contained flats.

0:33:110:33:17

Now that permission was granted fairly recently,

0:33:170:33:20

so if you were to take this lot on,

0:33:200:33:22

you'd know that you could definitely develop here,

0:33:220:33:25

which really is great news for any potential buyer.

0:33:250:33:30

# Baby, I'm ready to go

0:33:300:33:33

# I'm back and ready to go

0:33:330:33:37

# From the rooftops, shout it out

0:33:370:33:39

# Shout it out. #

0:33:390:33:41

That planning permission is why this small garden plot had a £180,000

0:33:410:33:46

price tag attached.

0:33:460:33:48

But it's not the only thing you get with this site.

0:33:480:33:52

Ah, yes, something I did forget to mention.

0:33:520:33:54

Right at the end of this plot is a train track, so you do get noisy,

0:33:540:33:58

busy trains whizzing past.

0:33:580:34:01

But it does still feel a little bit like a garden.

0:34:010:34:05

You've got this lovely log placed right here!

0:34:050:34:09

It's almost as though I want to get my picnic rug out and put some

0:34:090:34:12

cheese-and-pickle sandwiches down and take a rest from my weary feet.

0:34:120:34:16

But, oh, no, this is a prime development site just outside of London.

0:34:160:34:20

I need to get my developer's head on. Time for work.

0:34:200:34:24

# I got work to do

0:34:240:34:26

# Got so much work, yeah, yeah. #

0:34:260:34:28

Now, there are certain specifications that you need to

0:34:280:34:31

adhere to if you go ahead with the permitted flats that come with the planning.

0:34:310:34:36

Number one, slate roof tiles.

0:34:360:34:38

Number two, you've got to have brickwork to match next door.

0:34:380:34:42

Number three, white UPVC doors and windows.

0:34:420:34:46

Number four, you've got to have black railings.

0:34:460:34:48

Number five, you've got to have white render at the rear bottom.

0:34:480:34:52

The list just goes on and on,

0:34:520:34:54

and it is definitely worth checking this list before you start building.

0:34:540:34:58

And just remember - rules are made not to be broken.

0:34:580:35:02

# Follow the rules of life

0:35:030:35:06

# And do the right thing

0:35:060:35:08

# Do the right thing

0:35:080:35:10

# But you've got to follow the rules of life... #

0:35:100:35:13

Quite right, Lucy.

0:35:130:35:15

If you do step away from the rule book, it's likely to cost time and,

0:35:150:35:18

initially, money. But don't rule it out,

0:35:180:35:21

cos it might be worth looking at alternatives.

0:35:210:35:24

So you've decided you're going to build from scratch - hurrah!

0:35:250:35:28

And this is where you want to do it.

0:35:280:35:30

Well, there are three options when doing a new-build.

0:35:300:35:33

Those are a self-build one-off home.

0:35:330:35:35

That is where you manage the design and the construction process and do

0:35:350:35:39

a fair proportion of the actual building work yourselves.

0:35:390:35:42

A contractor-built one-off home, where you manage the design process,

0:35:420:35:47

select a contractor, and then they take care of the construction work.

0:35:470:35:52

Or you could purchase a kit home - you select you preferred kit or type

0:35:520:35:56

of house you like, but you might have to organise all

0:35:560:35:59

the foundations and the kit-home company.

0:35:590:36:02

But then they put the house up for you.

0:36:020:36:04

So it's certainly worth doing your sums to work out the most

0:36:040:36:07

cost-effective route for you.

0:36:070:36:09

# Do the right thing Do the right thing. #

0:36:110:36:15

With those trains whizzing by and the narrowness of the plot,

0:36:150:36:18

this doesn't scream out dream site for any would-be builder.

0:36:180:36:22

But it does scream out development potential.

0:36:220:36:25

But will two two-bedroom flats make the most of this plot?

0:36:250:36:29

What does a local estate agent think?

0:36:290:36:31

I would try and maximise the profit as much as I can,

0:36:330:36:36

so, personally, I would put flats here.

0:36:360:36:39

Four flats - three studios and a one-bedroom flat.

0:36:390:36:42

Interesting, so let's weigh up the difference in values between the

0:36:450:36:48

approved two two-bed flats or the agent's suggestion of four smaller flats.

0:36:480:36:53

So once the proposed two-bedroom flats have been made here,

0:36:540:36:57

they would be on the market at £260,000-£270,000.

0:36:570:37:02

On the studios, you would be looking at a price range between

0:37:020:37:05

£150,000-£155,000.

0:37:050:37:09

On the one-bedroom flat, again, I would be looking to achieve around

0:37:090:37:13

the £200,000 mark to the £210,000 mark.

0:37:130:37:17

Taking the lower valuations, the two flats would potentially be

0:37:180:37:22

worth £130,000 less than the four-flat option.

0:37:220:37:26

And with the rental income jumping from £2,400 per calendar month

0:37:260:37:31

to £3,400 per calendar month, getting more,

0:37:310:37:34

smaller flats does seem to have bigger financial benefits.

0:37:340:37:38

Of course, there might be added build cost in terms of kitchens and

0:37:380:37:42

bathrooms, not to mention the time spent changing the plans and getting approval.

0:37:420:37:48

So here it is, this long plot of land, and it comes with planning

0:37:480:37:51

permission to build two two-bedroom flats, which is fantastic.

0:37:510:37:55

And I actually think that makes it worth the £180,000 guide price.

0:37:550:38:00

But the question is, could you do more with it and ensure an even

0:38:000:38:03

better return for your money?

0:38:030:38:05

Let's see who saw this plot's potential when it went under the hammer.

0:38:050:38:09

Freehold site approximately 0.024 hectares.

0:38:140:38:17

Planning permission for a detached two-storey block to provide two

0:38:170:38:20

two-bedroom self-contained flats.

0:38:200:38:23

Start me at 170.

0:38:230:38:25

Back left. 170.

0:38:250:38:27

172,500.

0:38:270:38:28

75. 77,500. And 80.

0:38:280:38:33

82,500. 85.

0:38:330:38:36

87,500. And 90.

0:38:360:38:38

Though one of the later lots in the auction,

0:38:380:38:41

there was quite a battle for the Enfield land.

0:38:410:38:44

We rejoin the bidding at £220,000.

0:38:440:38:48

220. 221. 22. 23.

0:38:480:38:53

24. 25. 26. 27.

0:38:530:38:55

OK. 226, with you there.

0:38:550:38:58

Been there from start to finish.

0:38:580:39:00

First time. Second time.

0:39:000:39:02

Third and final time at 226,000.

0:39:020:39:05

Sold to you at 226.

0:39:060:39:08

Well fought, sir. Thank you.

0:39:080:39:10

And the hammer fell at £226,000, with the successful bid by one-time

0:39:100:39:15

financial adviser and long-term property developer Bobby.

0:39:150:39:20

And Bobby, along with his architect, Leila,

0:39:200:39:23

joined Lucy back at the Enfield plot.

0:39:230:39:25

Bobby and Leila, congratulations.

0:39:260:39:28

-Thank you.

-Well done.

0:39:280:39:29

-Cheers.

-Now, Bobby, you actually bought this at auction.

0:39:290:39:32

-I did, yes.

-It comes with planning permission for two flats.

0:39:320:39:35

-Yes.

-With two bedrooms.

0:39:350:39:37

-Yes, that's right.

-Is that what you're going to build here?

0:39:370:39:39

-No, it's not.

-What?!

0:39:390:39:41

Why are you not going to build that?

0:39:410:39:43

We've done some research and basically,

0:39:430:39:46

what I want to do is maximise the number of units I can build here.

0:39:460:39:49

So, essentially, I want to build three studios

0:39:490:39:52

and one one-bedroom flat.

0:39:520:39:54

If I can get this and change it, great.

0:39:540:39:57

If I can't, keep it as it is and it gives me the experience to actually

0:39:570:40:00

build something from the ground up.

0:40:000:40:01

-OK.

-So, Leila, talk me through how it's going to look like and which

0:40:010:40:05

-way they'll face.

-It will be a hybrid between the house, you know,

0:40:050:40:09

and the flats on the left.

0:40:090:40:11

So the entrance will be from the front elevation.

0:40:110:40:14

And entrance to the studio on the ground floor at the back.

0:40:140:40:17

There will be two studios on the ground floor.

0:40:170:40:19

One will be from the front elevation,

0:40:190:40:21

the other will be from the side elevation.

0:40:210:40:23

You have two on the ground floor, studio flats,

0:40:230:40:26

one one-bed flat on the first floor. And one studio in the loft.

0:40:260:40:29

So, that's four units.

0:40:290:40:30

-That's right, yeah.

-You're trying to get four units out of this plot.

0:40:300:40:32

Are you feeling quite confident that this will go through and you will

0:40:320:40:35

-get permission?

-We are. We're very confident.

0:40:350:40:38

We did some research, we had a look, we had a chat with the officers,

0:40:380:40:41

and you know, it's doable.

0:40:410:40:43

Come on, then. Let's talk about the budget.

0:40:430:40:44

How much money have you got to spend?

0:40:440:40:47

I think we'll probably end up spending about 130,000.

0:40:470:40:50

All in. Yeah.

0:40:500:40:52

Plus the cost of the land and the fees.

0:40:520:40:54

So, a spend of around 360 grand plus fees.

0:40:560:41:00

And Bobby believes, once built,

0:41:000:41:02

the four flats will be worth around £600,000.

0:41:020:41:06

And so he hopes in about a year's time, if all goes to plan,

0:41:060:41:10

of course, there will be a nice tidy profit

0:41:100:41:13

here which should mean smiles all round.

0:41:130:41:16

Now, Bobby, I have heard about you.

0:41:160:41:18

-Yeah.

-I know you like to create happiness all around you.

0:41:180:41:21

-I do.

-You like a team.

0:41:210:41:22

-I do, yes.

-You like to have fun while you're doing it.

0:41:220:41:25

-I sure do.

-Tell me more about yourself.

0:41:250:41:27

Well, basically, it comes down to this.

0:41:270:41:30

Every time I have something that's successful,

0:41:300:41:32

I like to share it and while I'm getting to that success,

0:41:320:41:35

I like to share it with the people that helped me get there as well.

0:41:350:41:38

I'm really laughing because nobody has ever done this before.

0:41:380:41:41

-OK.

-Brought the whole team to the shoot.

0:41:410:41:45

-That's true. That's true.

-Now, I know you love to spread the love,

0:41:450:41:47

-but they're all here today.

-They are.

-Who's come along today?

0:41:470:41:50

I brought my builders, my parents...

0:41:500:41:53

-Three builders.

-Three builders.

0:41:530:41:54

-Mum and Dad.

-Mum and Dad.

0:41:540:41:56

My three architects.

0:41:560:41:58

And my very good friend and also my solicitor.

0:41:580:42:01

-So, they've all just come along today.

-Yes.

-Hello, everybody.

0:42:010:42:04

That's very funny.

0:42:060:42:07

I know. I know. But as I say, it is all about spreading the love.

0:42:070:42:10

# Even though the darkest clouds are in the sky

0:42:100:42:15

# When things go wrong you mustn't sigh

0:42:150:42:20

# Spread a little happiness as you go by... #

0:42:200:42:25

All smiles from Bobby 's team and family but this is going to be his

0:42:250:42:29

first ground-up property build and he will need all the help and

0:42:290:42:34

goodwill he can get from friends, family and - importantly -

0:42:340:42:37

the neighbours and the local planning department.

0:42:370:42:40

Who is going to be project managing this?

0:42:400:42:42

-That'll be me.

-So you will be here on site every day?

0:42:420:42:45

-More or less, yes.

-Why are you laughing?

0:42:450:42:47

-Come on, Leila.

-No, no. He is very assertive,

0:42:470:42:50

very determined and is a very good project manager.

0:42:500:42:52

He has been managing his previous projects as well and is doing a very

0:42:520:42:55

great job. With the builders, of course.

0:42:550:42:57

So this will be a step up but it'll be great.

0:42:570:43:01

-Yeah.

-Anything you're worried about with this?

0:43:010:43:04

-No. Nothing at all.

-Are you confident?

-Very much.

-Leila?

0:43:040:43:07

We are. Very confident.

0:43:070:43:09

Can you guys stop having so much fun along the way, please?

0:43:090:43:12

-You look far too happy.

-We try but it won't happen.

0:43:120:43:15

-Yeah.

-I hope you're still smiling when we come back

0:43:150:43:17

in nine months to a year.

0:43:170:43:18

It's been smashing meeting you today and good luck with this project.

0:43:180:43:21

-Thank you.

-Leila, thank you. Lovely to meet you.

-You too.

0:43:210:43:26

Well, Bobby recognises the value of teamwork when it comes to a project

0:43:260:43:30

like this. He likes to share the work,

0:43:300:43:31

share the love and share the success with his trusty gang and he still

0:43:310:43:36

likes to have a laugh along the way.

0:43:360:43:38

The question is,

0:43:380:43:40

will he get that planning permission for those four flats and still be

0:43:400:43:44

laughing at the end?

0:43:440:43:45

You can find out how Bobby gets on later in the programme.

0:43:450:43:49

Earlier, we found out how one of the properties on today's show ended up,

0:43:530:43:56

but what about the other two?

0:43:560:43:58

Yes, did they hit the jackpot or not?

0:43:580:44:01

Time to go back and find out.

0:44:010:44:03

Time to head back to Bolton,

0:44:050:44:06

where I saw this modern two bed flat guided at 55 grand.

0:44:060:44:10

Situated on the top floor in a block with no lift,

0:44:100:44:14

buyers with mobility issues would be off-limits.

0:44:140:44:17

But this pristine condition flat would certainly be appealing to others.

0:44:170:44:21

This spacious kitchen living room area had front row seats to

0:44:230:44:28

the neighbouring entertainment complex and cinematic views across the town.

0:44:280:44:32

But I couldn't give this flat a five-star rating yet due to issues

0:44:320:44:37

in the en suite.

0:44:370:44:39

Oh, dear. That's not ideal, is it?

0:44:390:44:41

Ventilation problems,

0:44:410:44:43

condensation on there has caused the paintwork to come off

0:44:430:44:46

on that ceiling.

0:44:460:44:48

Obviously, you need to look at the ventilation in there,

0:44:480:44:51

improve whatever there is.

0:44:510:44:52

As you can see, lots of mould going on.

0:44:520:44:54

You want to catch that before it gets any worse.

0:44:540:44:56

Despite the minor mould issue, this flat was pretty much good to go.

0:44:560:45:02

Fortunately, for freelance consultant, Sarah,

0:45:020:45:04

who bought the flat for £57,500 without viewing it.

0:45:040:45:09

But she had flexed her property developing muscles on other

0:45:090:45:14

properties in her hometown of Hull, so would this one work too?

0:45:140:45:18

On the morning of the auction, I was at the gym in Hull,

0:45:180:45:21

was on the treadmill, chatting to a mate of mine, and I said,

0:45:210:45:25

"I just don't know, shall I go to this auction?"

0:45:250:45:28

Talked it through and he said, "Well, it sounds like it's worth a trip."

0:45:280:45:32

So I came over and I had an upper limit in mind and thought,

0:45:320:45:37

if one of them is...

0:45:370:45:38

If it's possible to get one for under that limit, then I'll go for it.

0:45:380:45:43

And that, as they say, was history.

0:45:430:45:46

Sarah was going to fix the bathroom for a couple of hundred pounds and

0:45:460:45:49

get it back onto the rental market in a matter of weeks.

0:45:490:45:52

So, when we returned just 14 days later, had she managed it?

0:45:540:45:59

# Whoa, don't change it

0:45:590:46:02

# Whoa, don't change it

0:46:020:46:05

# Whoa, don't change it, don't change for me

0:46:050:46:11

# Don't change it, baby

0:46:110:46:13

# Don't change it

0:46:130:46:15

# Oh, no, don't change it... #

0:46:150:46:19

Unsurprisingly, not much has changed,

0:46:190:46:22

yet the flat is looking exceptional.

0:46:220:46:25

# Whoa, don't change it

0:46:250:46:28

# Whoa, don't change it

0:46:280:46:31

# Whoa, don't change it, don't change for me

0:46:310:46:36

# Don't change it, baby. #

0:46:360:46:38

Though I'm glad to see one thing has changed.

0:46:380:46:40

The en suite now looks as good as the rest of the flat and all that

0:46:400:46:44

unsightly mould has gone.

0:46:440:46:45

So, what exactly has Sarah been up to?

0:46:470:46:50

It seemed as though there was a serious lack of ventilation,

0:46:520:46:55

so I had a new, more powerful extractor fan put in on a delay timer.

0:46:550:47:00

And then just cleaned up all the black mould, you know,

0:47:000:47:04

redid all the silicon around the shower.

0:47:040:47:06

A bit of new flooring and now it looks, well...

0:47:060:47:09

You know, clean and tidy and hopefully will prevent the problem coming back.

0:47:090:47:13

The ventilation problem was fairly straightforward and Sarah got in an

0:47:130:47:17

electrician to install the extractor fan,

0:47:170:47:20

which just needed some finishing touches.

0:47:200:47:23

Sarah got someone in to fix the silicon sealant and she project

0:47:230:47:27

managed and touched up the paintwork where needed.

0:47:270:47:30

So, were there any challenges at all?

0:47:300:47:34

The thing that I thought was going to be difficult was the fact that I

0:47:340:47:37

live in Hull, the flat is in Bolton.

0:47:370:47:40

And whereas in Hull, I've got, you know,

0:47:400:47:43

a team of people that I regularly call on to do works for me,

0:47:430:47:47

I didn't know anybody in Bolton.

0:47:470:47:50

But I discovered that you know, via social media,

0:47:500:47:52

there are apps where people will recommend other people to you

0:47:520:47:57

in a local area.

0:47:570:47:58

And to be honest, before I even got the keys to the flat,

0:47:580:48:01

I had the names and telephone numbers of electricians, plumbers,

0:48:010:48:05

decorators, you know, almost anything that I might need.

0:48:050:48:09

Labour and materials cost Sarah...

0:48:110:48:13

Wait for it, £225.

0:48:130:48:15

So, she was well on target with her budget.

0:48:150:48:18

And the work itself only took a week,

0:48:180:48:21

but she did take time to add some home comforts.

0:48:210:48:24

I did decide to bring some furniture into the property.

0:48:240:48:28

I just decided that in terms of sort of showing the property off at its

0:48:280:48:34

best, I would just kind of make it look a little bit homely.

0:48:340:48:37

That's also partly because I think there are quite a number of

0:48:370:48:42

properties very similar to this locally on the rental market

0:48:420:48:44

and I kind of wanted mine to stand out a little bit from the rest.

0:48:440:48:48

Well, has she managed it?

0:48:490:48:51

Let's see what two local estate agents thought of Sarah's £57,725 investment.

0:48:510:48:58

Starting with the agent that saw it last time.

0:48:590:49:01

The property is really nice.

0:49:010:49:03

It's been finished to a good standard.

0:49:030:49:05

It definitely needed a freshen up, so it's fantastic now.

0:49:050:49:09

My first impressions of the property are that it's very clean,

0:49:090:49:12

it's presented well with neutral colours, which is very good.

0:49:120:49:15

And attractive. It's very marketable.

0:49:150:49:18

And we've sold properties like this in the same apartment block and they

0:49:180:49:23

sold fairly rapidly for good price.

0:49:230:49:25

So I'm confident that it will sell well.

0:49:250:49:28

Sarah intends adding this to her Hull portfolio and renting it out.

0:49:280:49:33

But if she did decide to sell, the agents thought it would fetch 83 grand.

0:49:330:49:39

And bearing in mind that one of the agents said flats are selling well

0:49:390:49:42

here, that could mean a quick profit of around 25 grand.

0:49:420:49:47

So, could that change her plans?

0:49:470:49:49

Probably not. I think I will rent and hold on to the property for a few

0:49:500:49:54

years and you know, keep an eye on the market, see how things go.

0:49:540:49:59

See how much hassle it is to rent a property out

0:49:590:50:02

when I live on the other side of the country.

0:50:020:50:04

That will be a bit of an acid test.

0:50:040:50:06

But it's nice to know that I've got, you know,

0:50:060:50:09

some reasonable equity in this if I do decide to sell.

0:50:090:50:11

So, what about those all-important rental values then?

0:50:120:50:16

If I was to put the property on the market for rent,

0:50:160:50:18

I would expect it to achieve £475 per calendar month.

0:50:180:50:22

If we were to rent this property,

0:50:220:50:23

we would look to market it at £500 per calendar month.

0:50:230:50:26

That's spot on with what my expectation was,

0:50:260:50:29

so I'm very happy with that.

0:50:290:50:31

It would seem that snap decision at the gym has really paid off.

0:50:310:50:35

I think Sarah's persuasive work-out buddy deserves a drink.

0:50:350:50:38

I definitely owe him a drink, so got to book in, get him down to the pub.

0:50:390:50:44

Earlier in the show, Lucy was ten miles north of London in the area of

0:50:490:50:53

Enfield at a freehold plot guided at 190,000.

0:50:530:50:57

Sandwiched between two existing properties and measuring just

0:51:000:51:04

243 square metres, the plot seemed more like a garden than

0:51:040:51:07

a profitable investment opportunity.

0:51:070:51:10

But there was more here than met the eye.

0:51:100:51:12

What we do know is that it comes with planning permission to build a

0:51:140:51:17

detached two-storey block with two times two bed self-contained flats.

0:51:170:51:23

# Catch a train to my place

0:51:230:51:27

# Call me when you get into town... #

0:51:270:51:30

The railway link could put some potential buyers off but more importantly,

0:51:300:51:34

there were some planning stipulations that could

0:51:340:51:37

derail a buyer's plans.

0:51:370:51:39

Number one, slate roof tiles.

0:51:390:51:42

Number two, you've got to have brickwork to match next door.

0:51:420:51:45

Number three, white UVPC doors and windows.

0:51:450:51:50

Number four, you've got to have black railings.

0:51:500:51:52

Number five, you've got to have white render at the rear bottom.

0:51:520:51:56

The list just goes on and on.

0:51:560:51:58

And property developer, Bobby, didn't make things easy for himself.

0:51:590:52:03

He engaged a team of architects, including Leila,

0:52:030:52:07

to change the approved plans for the site he bought for £226,000.

0:52:070:52:13

Essentially I want to build three studios and one one-bedroom flat.

0:52:130:52:18

And are you feeling quite confident that this will go through and you

0:52:180:52:21

-will get permission?

-We are.

0:52:210:52:23

With confident architect, Leila, on board,

0:52:230:52:25

happy-go-lucky Bobby was ready to go and had the full support of his

0:52:250:52:29

family and friends.

0:52:290:52:30

-I've brought my builders...

-Mum and dad.

-Mum and dad.

0:52:310:52:35

My three architects.

0:52:350:52:36

And my very good friend and also my solicitor.

0:52:360:52:39

Hello, everybody.

0:52:390:52:40

So, Bobby was spreading the love but could that 130 grand budget spread

0:52:420:52:47

far enough to get the four properties built within a year?

0:52:470:52:51

Well, we're back almost two and a half years later to find out.

0:52:510:52:57

-# Where is the love

-The love

0:52:570:52:59

-# Where is the love

-The love

0:52:590:53:02

-# Where is the love

-The love

0:53:020:53:04

# Where is the love, the love, the love. #

0:53:040:53:08

I'm definitely feeling the love for this transformation.

0:53:080:53:10

On the ground floor is a spacious two-bedroom flat with an en-suite

0:53:120:53:17

and a master bedroom.

0:53:170:53:18

Upstairs is flat number two.

0:53:210:53:23

Also a two bed with the impressive master suite in the loft.

0:53:230:53:27

Soundproofing and double glazing ensures there's no noise from the

0:53:280:53:32

train line out back. But last time Lucy spoke to Bobby,

0:53:320:53:36

he had grand plans for four flats.

0:53:360:53:38

So, what gives?

0:53:380:53:40

Leila tried her best to actually get four flats within the property.

0:53:410:53:46

But the council weren't budging.

0:53:460:53:48

Then we reverted to a plan where, how about we do three flats?

0:53:480:53:52

But the council weren't keen on that either.

0:53:520:53:54

So we decided to actually scrap that idea.

0:53:540:53:56

Basically, there was too many people going to be in the property.

0:53:560:53:59

And they wanted to make sure that they had enough amenities to look

0:53:590:54:04

after those people within the community.

0:54:040:54:05

So that was one of the reasons they actually refused.

0:54:050:54:09

After multiple attempts to get planning, Leila and her company left

0:54:110:54:15

the project with planning for the two flats

0:54:150:54:17

finally being granted in January 2016.

0:54:170:54:21

After engaging a replacement company and getting going again,

0:54:220:54:26

Bobby came across another potential stumbling block.

0:54:260:54:29

The discovery that a massive rainwater pipe ran across the property.

0:54:290:54:33

I thought, OK, this is not going to be a good thing.

0:54:340:54:36

So I contacted Thames Water and yes, there was a big pipe.

0:54:360:54:39

But for miraculous reasons, I actually never touched it.

0:54:390:54:43

After a retrospective inspection to ensure there was no damage,

0:54:440:54:48

Bobby agreed a deed of grant of easement with Thames Water which

0:54:480:54:52

means they'll have some rights over the land,

0:54:520:54:54

even though it's owned by Bobby.

0:54:540:54:56

By this time, Bobby had engaged a third architect and a building

0:54:570:55:01

consultant who saw the project through to the end.

0:55:010:55:04

But all those delays didn't come cheap.

0:55:040:55:06

I had a very ludicrous budget of 130,000 that I wanted to spend.

0:55:070:55:12

Unfortunately, it went beyond that.

0:55:120:55:14

My budget rocketed like anything to probably double that.

0:55:140:55:18

Bobby is not exaggerating.

0:55:180:55:20

Originally he was aiming at a total of something around the £360,000

0:55:200:55:25

mark, plus fees.

0:55:250:55:27

Now, he's spent something in the region of £575,000

0:55:270:55:31

and it's not been an easy ride.

0:55:310:55:33

So, is Bobby still feeling the love for building from scratch?

0:55:330:55:38

The challenges that I faced with this one only reconfirms

0:55:380:55:42

that I like to do more.

0:55:420:55:43

And I've learned from my mistakes on this one.

0:55:430:55:46

So if I can actually apply that to the next one and the one after that,

0:55:460:55:51

that's great. And at the end of the day,

0:55:510:55:53

you kind of like learn to make better quality properties.

0:55:530:55:56

Bobby's first attempt at building may have had its fair share of challenges.

0:55:580:56:03

But he now has two fantastic flats ready to rent.

0:56:030:56:06

So, what was the professional opinion?

0:56:060:56:08

Let's see what two local estate agents thought.

0:56:080:56:11

My first impressions walking into the property is it oozes quality.

0:56:110:56:15

I think downstairs,

0:56:150:56:17

they utilise the space with having the open-plan kitchen lounge.

0:56:170:56:20

And then you've got your two bedrooms

0:56:200:56:23

which benefits one being en suite, which is a major plus.

0:56:230:56:26

Layout is very good.

0:56:260:56:28

They have used every bit of space possible that they could have.

0:56:280:56:31

And the finish has been done to a very high spec throughout and it

0:56:310:56:36

will appeal to buy to let investors,

0:56:360:56:37

but will also be for families and first-time buyers.

0:56:370:56:41

The flat could prove popular with both the sales and rental markets.

0:56:410:56:45

But as Bobby is going to rent them,

0:56:450:56:47

what kind of income could he be looking at?

0:56:470:56:50

I think as these properties are two-bedroom, which is sought after,

0:56:500:56:53

I see no reason why these properties cannot achieve £1,350 per calendar

0:56:530:56:58

month each.

0:56:580:57:00

The average two-bedroom flat goes round £1,350 per month.

0:57:000:57:05

Given their location and the way the property has been done,

0:57:050:57:09

you could push for the slightly higher price and go for £1,400

0:57:090:57:12

per calendar month.

0:57:120:57:14

Brilliant. I'm happy with that. That's way above my expectations,

0:57:140:57:19

so, yeah, I mean, brilliant.

0:57:190:57:21

Bring it on. Yeah.

0:57:210:57:23

The higher value could give Bobby a potential yield of almost 6% and

0:57:230:57:27

the agents agree the ground floor flat could sell for 320 grand with a

0:57:270:57:33

top floor flat valued at 330,000, which could mean a potential profit,

0:57:330:57:38

minus taxes and fees, of 75 grand.

0:57:380:57:42

But he's not tempted to sell just now.

0:57:420:57:44

Because true to form, Bobby is doing this for his nearest and dearest.

0:57:440:57:48

His kids, Ryan and Keane.

0:57:480:57:50

It's an investment for my kids so that they have a happy future.

0:57:510:57:57

I'm not going to give it to them that easily.

0:57:570:58:00

But it's also providing something back to people who deserve good

0:58:000:58:05

quality accommodation. That's what I want to provide.

0:58:050:58:08

As you've just seen, there are a lot of factors at play when you invest

0:58:100:58:13

in property and hopefully, we've been able to offer up some words of wisdom.

0:58:130:58:18

Yes, we wandered lonely as property developers but did we inspire you to

0:58:180:58:22

become one?

0:58:220:58:24

Join us next time for more Homes Under The Hammer.

0:58:240:58:26

-Bye-bye.

-Goodbye.

0:58:260:58:28

Today's auction property-developing projects take an incredible 14 days to more than two and a half years to complete. Martin, Martel and Lucy visit the properties in Sandgate in Kent and Bolton in Lancashire as well as a plot of land in Enfield in London at the start of the projects, following the progress until they're finished. Will any of the investors manage to make money?


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