Episode Information Property Ladder: Edgware & Croydon

Date Published:

11/06/2008

In this Property Ladder guide we've got two sets of novice developers trying to crack the London market with properties most people wouldn't touch with a barge pole.

Sarah's First Visit: 2007

The London property market is now so ludicrously expensive that for many would-be property developers, taking on low cost, high risk developments seems like the solution, but it's only a tactic for the seriously brave because it can go seriously wrong.

The Croydon Developers

Successful florists, Leanne and Andy, think they've spotted a clever way to cash in on the London property market. They've bought a 30 year old three bedroom semi in the south London suburb of Croydon for a rock bottom price, and there's a good reason. With both the front terrace and the garage literally sliding off the property, the subsidence issue could be a real nightmare.

They paid a bargain basement £210,000 for this property and reckon they can transform it for a meagre £40,000. They plan to sell for £340,000 and bring in a £90,000 profit - but that's if they can get their neighbour's insurers to fix the subsiding garage.

The Edgware Developers

From South London to North, Business Manager Milan Patel and his wife Tigh have bought a highly unusual three bedroom home in Edgware, built in the early 1900's. In reality they've taken a massive gamble. They've paid out for a property without having any idea whether they can get planning permission to develop it. It's hardly a cautious approach for a pair of first timers.

Milan and Tigh bought the property for £400,000 and are hoping to do all the work, including two extensions, for £125,000, including fees. Their target sale price is £600,000, which would make them a clean £75,000 profit.

As it happens, their budget was hopelessly optimistic and the actual spend became £203,000, but the extra money was worth it as a top valuation of £725,000 would still secure a profit of over £120,000.

Milan and Tigh decided they needed a break after this development - but it became more than that. They made the big call to move into the property and haven’t touched another development since.