Episode 57 Homes Under the Hammer

Hello. If you're a property investor,

the thing you'll want to focus on is how much money you'll make.

Of course, you can't see a return until you've bought somewhere.

But one good way to do that could be by buying your next place

under the hammer.

Let's face it - we all love snooping around other people's houses.

Yes, whether it's a stately home or a humble bungalow,

there's always something interesting to talk about.

So let's take a look at the properties that got us excited.

'There's a bungalow in Lincolnshire that came with its own grain silo

'and three acres of land.'

It's your chance to create your very own good life.

'In Buckinghamshire, this roomy maisonette has loads of space inside

'and somewhere to sit outside.'

That's if you don't mind the noisy road below.

'And in Nottingham, this three-storey, three-bedroom house

'leads me down the garden path.'

Hang on a minute.

That is the garden. Fantastic!

'All these properties are being sold at auction

'and we'll find out who bought them and what they paid for them

'when they went under the hammer.'

'Today I'm in Lincolnshire, home to splendid Lincoln Cathedral,

'but I'm some miles from that bustling city

'and out in the countryside.'

MUSIC: "The Good Life" by Tony Bennett

Well, about half an hour from Lincoln is the village of Weston,

surrounded by beautiful countryside and farms

and actually, it's a farm that was up for auction.

It was split into nine individual lots.

Now, earlier this year, the lot I'm here to see was on the market for £300,000.

A four-bedroom bungalow with 1.5 acres of land.

Well, the guide price has just been reduced to £250,000

and the amount of land you get doubled to three acres.

It's got to be worth a look.

'Built in 1955, this property seems to be in better condition

'than some of the surrounding farm buildings.

'While not a stunner,

'the question is, who might it attract in today's market?'

So straight inside, and this is a bit of a nice start.

Kind of a utility area. Now, we are in the country,

so an area like this in the house is great to have.

Practical. You can take your wellies off here

to keep dirt out. Also somewhere to have a washing machine,

there's a boiler room there. That's great.

However, the kitchen isn't so brilliant.

It's small for the size of the bungalow

and, as you can see, very dated,

so you'd certainly want to put new units in, that's for sure.

I'd think about something a bit more serious.

Maybe think about taking out this wall

because what you could create then is this great kitchen/living area.

Nice feel to the property. It's clean, it's tidy.

There doesn't seem to be too much damp, which is good,

but clearly, it's in need of updating.

Look at this fireplace! It's a classic.

But as a starting point, a nice bungalow.

MUSIC: "Country House" by Blur

'In fact, it's a large and pleasant bungalow.

'Each of the four bedrooms is a fair size,

'although I do feel a bit dizzy from all the clashing floral designs.

'But, surprisingly for such a large property, there's no proper bathroom.

'There's just a shower and WC, which is a little basic for modern tastes.

You don't have to be an expert in interior design to realise

there's something horribly wrong in the middle of this bungalow.

There is this massive, great corridor area.

The bedrooms are smaller than they need to be. It's a complete waste of space.

It gets worse, cos you come through these doors into what is obviously an add-on extension bit.

It feels like a waiting room. It's supposed to be a sun room, but it's just horrible.

Take out those windows for goodness' sake!

Make this a much more sort of cohesive extension

and then you'd have a really nice space.

Out onto the garden, maybe increase the size of the windows or doors.

Then it starts to become a usable space, as opposed to a waiting room.

'With such a large footprint, there is scope to extend this property,

'but it's outside where the real space is.'

You've got quite a few options with this place.

You could basically restore it as it is and live in it,

maybe put in a dormer bedroom. That'd be nice.

You're not in a conservation area.

I think the planners would support knocking it down and starting again.

But there's more to this lot than just the property itself.

It's that land - three acres - surely enough for a small holding.

Yes, get some chickens, maybe a goat, a pig,

grow your own vegetables, knit your own jumpers.

You could dye your own wool with nettles.

It's your chance to create your very own good life.

Tom and Barbara would be proud!

'I can see it now - rows of well-tended vegetables

'and hens clucking and strutting about.

'You've even got your very own grain silo.

'Before it was sold, there used to be a piggery on this land.

'With all this space, it was probably the best piggery for miles around.

'But a green dream isn't the only thing at the end of the garden.

'There's also an express train line.

'Hmm. That doesn't quite fit in with the rural idyll.

'What about the rest of the farm buildings

'and land sold in separate lots?

'Could they sour the taste of the country life?'

Whenever an estate like this is split into lots of individual lots,

there are bound to be restrictions and covenants put in place

on those individual lots, and there's no change here.

In terms of this bungalow, they aren't too onerous.

You have to put a fence on the northern boundary.

One of the adjoining buildings is allowed to use your water supply,

but they have to pay you for the privilege.

In fact, it goes in your favour. One of the restrictive covenants on the place next door

is it can't be used for intensive pig or chicken farming,

which means the sweet smelling air will remain.

To get a professional view of all this,

I invited along a local property expert to give us an assessment.

I think the main selling point of this particular lot, Redruth Farm,

is you've got a utilitarian building you can do a lot with.

But I think it's the setting that's most important to it.

The land in itself is actually quite a great opportunity.

I mean, a lot of people won't necessarily want to grow turnips out of it.

It's more amenity land. People seem to be buying land just for the space

and the privacy element as well.

'Well, as the old saying goes, "Where there's muck, there's brass."

'So, what value could the property, outhouses and the three expansive acres of land have?'

I think I would put a value on the property as it stands today at around £280,000.

Well, you're not just buying a lot with this one -

you're buying a plot, a very nice bungalow,

but also this piece of land that's big enough for you,

if you wanted to become self-sufficient -

a dream for a lot of people.

And for a £250,000 guide price,

let's see who went for it at the auction.

Guided at £250,000, where would you like to start me here?

At 220, thank you, sir.

At £220,000.

225, at 225, 230,

230, 235, at £235,000.

At 240, fresh place. At 240,000.

At £240,000. At 245, 245.

At £245,000.

At £245,000 - once, £245,000 twice,

third and the last time. 246, 246,

247, 247, 248, 249, 249, 250.

At £250,000. Against you in the middle of the room at £250,000.

At £250,000 once, £250,000 twice,

third and the last time of asking - at £250,000, are we all done?

Gentleman on the left, £250,000. Thank you.

'Paul and his wife, Jane, bought the property for 250,000.

'They live three miles down the road with their two children - Luke, who's 17, and Emily, who's 19.

'Paul works in the haulage business and has never even had an allotment,

'so this will be a new adventure.'

Paul, congratulations. You got yourself a bungalow and a bit of land.

Actually, a lot of land. Why did you want to buy it?

A bit of a project, really -

something we've always wanted to do, so we went for it.

What was it about the property that made you so keen on it?

I think the open aspect of it. It's pretty much a blank canvas. We can do what we like with it

within reason and planning consent and one thing or another. I think I'll enjoy doing it.

In terms of what you plan to use it for, what is that? Is it for you?

It is for us. The end result will probably be a pension plan,

but initially just for us to move into and enjoy as a family, really.

So tell me what you're planning to do to this place.

We will take the kitchen and move it, open it up into the front room.

We're looking to open this up.

Obviously we'll have to look at the ceilings and the roof.

I think there's asbestos on top of here anyway, and the ceiling heights,

open it all up. I will put planning permission in to extend at the back,

probably go for a dormer, give it a bit of a feature out the back

and move more of the bedroom space and that to the back of the bungalow

and utilise this as a living area.

Any idea of a budget, how much it's all going to cost?

-Um, budget? We would say 100,000.

-Oh, wow!

-Yeah.

-You've got grand plans, then.

-We have, yeah, yeah!

What about sort of knocking it down and starting again as an option?

Well, we've looked at that.

I mean, that is an option obviously, subject to planning.

It would make a lovely plot to do that.

MUSIC: "Wide Open Space" by Mansun

'While the work is under way, Paul plans to move his family

'from their existing, comfortable home, which he's selling,

'into a caravan, though not this one, which came with the lot.

'It's a proposition that has had mixed reactions

'from their teenage children.'

My daughter's a bit...getting that teenage way, saying -

"Well, I'm not doing this and I'm not doing that."

The son, he's really into it. He can't wait, he can't wait.

But we're getting there. Three out of four ain't bad.

What about the land? What will do with your three acres?

It was a bonus with the auction, really, so it's something I haven't really thought about.

I have mentioned Christmas trees and there's all sorts - paddock...

Christmas trees?

Yeah. Well, it would bring a bit of money in.

-What? Selling Christmas trees?

-Yeah.

They're a bit of a long-term sort of plan -

plant them and then, 50 years later, harvest some kind of a profit.

Yeah, you could push them on a bit.

'Christmas trees?!

'Well, it seems my self-sufficiency dream is just an illusion,

'but the family won't be celebrating the festive season

'in the bungalow either, as Paul's estimated it'll take at least a year to finish all the work here.'

-Are you keen to get on with it as soon as possible?

-Definitely.

Yeah, the sooner we can get moved in and get plans moved in,

we can go ahead with it.

Well, good luck! I can't wait to see how you get on.

-Thank you.

-I hope it turns out really well.

-I'm sure it will.

I shall be back for my Christmas tree in 2020 or something!

You can have the first pick.

Well, there you go.

Paul's got three acres of land and he doesn't really care.

What will he do with this place? Will he knock it down, which I think, to be honest, is what I'd do,

or will he rebuild? Either way, it looks like his family will move out of their beautiful house

into a caravan in the garden. How will that go down?

And will I be able to come back to buy Christmas trees in a few years? You can find out later in the show.

'High Wycombe is a town in Buckinghamshire

'with easy access to London via motorway and railway

'which are both close by.

'In recent years, it's had some redevelopment,

'with the centre benefiting from new investment

'and expansion of the university.

'It's a popular and pleasant place to live.'

Well, I'm here to see a two-bedroom maisonette built around the 1960s

with a guide price of 85,000-plus.

Now, that plus indicates it's more likely to go over the guide

and for a commuter town like High Wycombe,

well, it sounds like this will be a popular lot.

Well, I've got a smile on my face today.

Do you know, I really like maisonette properties.

I think it's great you've got your own front door - it's a real bonus -

and this property is tucked away right on the end

so you have a bit of privacy here as well, which is nice.

Upstairs, I mean, look - you get such a feeling of space.

You've got the sleeping area upstairs,

downstairs, the living quarters,

through here a really big lounge area.

I mean, that is fantastic.

You've got the kitchen to the front of the property.

Now, this will completely need ripping out

and a brand-new kitchen fitted.

Also, I'm detecting there are no radiators anywhere,

so I think central heating will need to be installed.

And it all needs a bit of modernising and updating,

but overall, this place has got a really good feel about it.

'Moving up a floor, and the bathroom certainly needs attention.

'All the fittings here are showing their age.'

The bedrooms are a really good size, and as you own the floor below

as part of your maisonette, you're unlikely to get too much noise from your neighbours

which is something you should always consider when you're buying in a communal block of flats.

Now, talking of noise, you can hear all the traffic outside.

And that is down to the fact that these windows are the original Crittall ones.

They're single glazed, so the first thing I would do is get in touch with the residents' association

and find out if you're allowed to upgrade these to something a lot more modern and quiet.

MUSIC: "The Sound of Silence" by Simon and Garfunkel

'Replacing those old metal-framed windows will provide both sound proofing and heat insulation.

'But that's not to say that on a pleasant summer day

'you can't enjoy the outdoors, courtesy of your own balcony.'

Well, coming out onto this balcony, I think it's great to have this space just off your lounge

and it's always good to get a bit of fresh air. That's if you don't mind the noisy road below.

Now, this property also comes with communal gardens, which you can see right down there.

Having a communal area is great, especially in a block like this,

which is normally unlikely to have any outside space at all.

But of course that does indicate there might be a service charge.

Let's hope it isn't too high or that could really add to your outgoings.

'So, to weigh up the pros and cons of this place,

'I invited along a local estate agent to give me his view.'

It's very much what I expected.

There's three very similar apartment blocks.

The split-level apartments, like this one, are particularly spacious.

They've got two big double bedrooms, nice-sized living room.

The property really hasn't had any work done to it since it was built.

This particular apartment will require complete refurbishment -

a new kitchen, bathroom, decoration all the way through.

It has no heating at present.

On the positive side, this area is extremely popular with people

who wish to buy these type of apartments in order to let them out.

'Once this property is brought into the 21st century,

'what rental could it achieve?'

Once renovated, the property should achieve around £800 a month.

'What about its value on the resale market, once done up?

'Remember, the guide price was 85,000-plus.'

I would anticipate achieving between £165,000 and £170,000.

'So, after some renovation, if it was bought for close to the guide price,

'there could be the chance of a good profit here.'

I think this maisonette has a lot going for it with its guide of 85,000-plus.

I like it for its convenient location,

it appeals to renters, but it does need work doing to it.

You've got to update the decor, change the kitchen and bathroom,

plus there's the central heating to install.

That'll certainly take a chunk out of the budget.

So, how much did it go for?

Let's find out who bought it and at what price

when it went under the hammer.

So, who'd like to give me a start on this?

I don't know, 100,000 anywhere?

Yeah, we'll start at 100, thank you. 100 I've got. Anybody else?

I've got £100,000 for lot 110.

Anybody else? How much? 101, sir? Yeah, 101, thanks.

102, 103, 104, 105,

110, 111, 112,

113, 114, 115,

125, 126, 127?

One more? Leave you to it.

127, new place, 128, 129,

130, 132, new place, 133,

134, 135, 136, 137. Sure?

138. 138, sir?

Go on, then - 137.5, 138...and 500.

139... 500? 139.5 on my left for the first, 139 and 140.

Good sense! 140.5? I killed him off.

The bid's with you at £140,000. Anybody else for lot 110?

140 for the first, 140 for the second,

140 for the third and final time. We're all done.

-BANGS GAVEL

-Sold to you, sir, 140. Well bought!

'Terry bought the property for 140,000 - £55,000 over the guide price.

'This first-time development project will be a family venture, with his wife and two sons all involved.

'It will be Anton - Terry's youngest son - who'll do the majority of the work

'because, at the moment, he's between jobs.

'I caught up with him to hear about the plans for this place.'

-Anton, congratulations!

-Thank you.

-Happy with your purchase?

-Very happy indeed, yeah.

-Let's talk about the guide price, 85,000, but you paid 140,000.

-Yes.

So you did go quite a bit over the guide price there.

Yeah, we certainly did, yeah, but we had a property in one of the blocks further down.

We understood what we bought that for and what we could sell it for then. We knew it was a good price.

Why did you choose this property to buy on auction day?

It was a property we'd found, actually. We went specifically for it.

There wasn't anything else we were looking for

and it's five minutes away from the train station, walking,

it's 40 minutes from Marylebone, so it's very close to London.

We'll rent it out as an investment property.

We'll put some money into it to bring it up to levels that people expect

and we'll probably keep hold of it for as long as we possibly can

and maybe sell it in ten years or so.

You said a family member has lived in one of these before.

Yeah, my brother Daniel, he lives in Dubai now, but previously he had a property in the next block down.

-So you're going to become landlords, you're going to get a tenant in this property.

-We are.

-What will you do to bring up to standard?

-Yes.

I'm looking at those polystyrene tiles. It needs a fair bit of work in here.

Yeah, it needs everything basically. We haven't got any central heating -

why we're all a bit cold.

What sort of budget have you got for the work here?

Well, we don't really want to spend any more than £14,000.

We took a view as a family that we would bring the house, or the flat,

back up to the levels that we would be prepared to live in.

'Anton and his family are all playing a part here.

'His dad, Terry, who's semi-retired from the building trade, will act as project manager

'and Mum will take charge of the redesign.

'His brother Daniel, who found the property, has also put up some cash from his home in Dubai,

'leaving Anton with all the labouring work.'

-You're looking for a job as well, aren't you?

-I am.

-How will you fit all this in?

Well, hopefully I'll get a job very soon, and if that is the case,

we're looking at probably a 12-week to 16-week programme.

If I don't get a job, I have more time to put into this,

so hopefully finish it within eight weeks.

Getting in and out, old baths, new fixtures and fittings,

I can see somewhere that you need a skip. I can't actually see anywhere to put a skip.

How will you get around that? It's a bit of a problem there.

It is. Rubble bags, skip bags, and lots and lots of journeys to the dump, basically.

-And that'll be you!

-Yes, yes, that will be me, so...

-That'll really be hard graft for you.

It will be, yeah, indeed, but it's cheaper than going to the gym, so...

-It's a good way of looking at it.

-Indeed.

As soon as you leave, I'm starting.

-Are you excited about this?

-Very, very much so.

-Ah!

-It's been lovely meeting you today.

-You too.

-Congratulations.

-Thank you.

Sounds like an all-family adventure with this project.

Anton and his dad will be hands-on with the work,

his mum choosing the decor, and his brother Daniel, the local knowledge, thousands of miles away in Dubai.

But will everyone come together, though, to make this renovation work?

Or are there too many decision-makers on this job?

You can find out how they get on later in the programme.

'Coming up: In Nottingham, this three-storey house needs a DIY addict to knock it into shape.'

It looks like a project that somebody started, but hasn't quite finished.

'We return to High Wycombe to find that pride in your work can go too far.'

We were worried about people coming in and making a mark on the wall.

'But first, in Lincolnshire, when you can't make up your mind, there's only one option left.'

We decided it'd probably be better to start afresh.

'We've returned to Lincolnshire to catch up with Paul and his wife, Jane.

'They bought this four-bedroom bungalow with a three-acre plot for 250,000.

'When we were last here over two years ago, Paul had big plans for the property and all that land.'

What will you do with your three acres?

It was a bonus with the auction, really.

-I've mentioned Christmas trees. There's all sorts - paddock...

-Christmas trees?

Yeah. Well, it would bring a bit of money in.

'Well, there's no signs of Christmas trees here.

'Unfortunately, the soil wasn't suited to them.

'Instead, Paul planted 42 flowering cherry trees and some silver birch.

'They'll provide a windbreak and a boundary, but no income.

'Elsewhere, there's been some landscaping and an ornamental pond.

'At least the fish from his previous house have settled in.

'Inside the bungalow there's no evidence of any alterations

'to the layout.

'Paul and Jane have made their new home comfortable

'with some carpeting, wallpaper and a fresh coat of paint.

'The renovations and extensions Paul talked about must be happening soon

'or is there a different plan?'

We've actually decided to demolish and rebuild.

The renovation was a bit too much

and, to be quite honest, the cost implications of it,

I think it's the better way to go.

When we started looking around, the building was a '50s building,

so we decided it would probably be better to start afresh.

'Well, that was always an option

'since there were very few restrictions

'attached to the property.

'So, what's their new grand plan?'

Well, we started off with a chalet bungalow then we went to a dormer. We didn't really want a house.

Then, with the implications of looking at first-floor plans and one thing or another,

we decided we'd go for like a barn, two-storey house type, to fit in.

'So, let's see how the new place might appear.'

The west elevations, you can see we've put the front entrance,

we've tried to make that a sort of a bit of a feature.

The room sizes - they are quite large.

Downstairs, Jane wanted a big kitchen diner, sort of general living area

and it's pretty much as it is now, but more open plan and bigger.

The dining room and the hall...

Again, that was Jane and probably architect's idea to make that

sort of the main centre of the building

and it works quite well when you look at it.

The lounge, we've moved that to the far end of the property

because we don't use it that much.

Jane's played a big role in it. Jane's had a lot of input - more to the interior

than to the exteriors. It was a joint effort.

I'm really excited about the plans that have been submitted.

The children have got their own bedrooms, bathrooms, their own space

and we've got the openness of bringing the outside in, into the property.

Obviously she wants to put her stamp on what she wanted

and like anything with a new build, when you've started from scratch, it's nice to have the input into it.

'When it comes to their three acres, Jane has both a practical and novel idea to make best use of them.'

Joking apart, I think probably we'd have some cattle.

I'd like a donkey, but I've been told I can't have one of those...

'A donkey! How cute would that be?!

'Come on, Paul. Don't be as stubborn as a mule!

'Give her what she wants. It won't cost much!

'After all, the original budget for doing the renovation was around 100,000.

'Now that they've abandoned that plan, how much have they spent so far,

'given the condition of the land and the covenants they had to fulfil?'

We've spent probably 8,000-10,000 on drainage,

a lot of the stuff, you know, fencing, demolition.

We've cleared what we had to clear.

'They bought both the bungalow and the three acres for 250,000.

'They spent another 8,000-10,000 on repairs and redecoration,

'making a total of around 260,000.

'Does Paul have an estimate for the cost of the new build?'

I think we'll come in at about 185,000-200,000.

It's just a rough guess at the moment, but based on the footage and the input of work I've put into it,

I think that's about where we'll be.

I'm quite hands-on, so I want to do quite a lot of it.

I don't want to be travelling and locking up at night, coming back.

I want to be on the site, so we will definitely be in a caravan.

'To find out what the new property might be worth once the existing bungalow is demolished,

'we invited two local estate agents to give their assessment.'

What I like about the plans is the space the dwelling will provide.

Obviously at the minute it's modest, but on the basis that these get approved,

then what's here now gets levelled, starts again and a decent-sized property.

It's got very generous room sizes.

It will be absolutely fantastic on here.

The development you could do here with the way that the property

would be built far enough away from the road,

it's pretty central and the views are fantastic and it would look amazing, I'm sure.

'What value would they put on the property, based on the architect's drawings?

'Remember, Paul and Jane have spent around £260,000 already

'and estimate around £200,000 for the new build.

'That makes a total cost of around 460,000.'

The value of the finished property depends very much on the finish.

However, I think that the value's likely to be in the range of £600,000 to £800,000.

Once the property has been built and the sheer size and the volume of the property,

with the size of the land that the plot's got, you're looking at least in excess of 600,000.

-Excellent, yeah, I'm pleased.

-Yeah, that good, yeah.

Not that we'll sell it on cos we'll live here.

It's a family home, but that's good. Yeah.

I'm happy with that.

'So the new build certainly seems like the best way forward

'with a potential profit of over £300,000, according to these valuations.

'That puts Paul and Jane in a secure position, which must feel good.'

We've lived in the village all our lives, so we feel at home here. This is our home.

We can see where we got married from here, so I think it will be long term and we'll enjoy living here.

This is Langley Mill in Nottinghamshire.

Well, that's not, strictly speaking, true -

it also has the curious distinction of being in Derbyshire as well.

Let me explain.

The post code here is NG which would normally be Nottingham.

But you can use either Nottinghamshire or Derbyshire as the county.

Confused? Well, let me explain.

'The original boundary used to be the River Erewash in Nottingham, but the canal basin moved

'from Nottinghamshire to Derbyshire a few years ago

'and now the A610 is the new boundary.

'So, that's that cleared up, then.'

Well, the property I'm here to see is definitely in Langley Mill.

It had a guide price of 48,000 quid,

which for a three-bedroomed, three-storey mid-terrace

sounds pretty good, wherever it's located.

'From outside, the house appears in reasonable condition,

'but the windows do show signs of age and wear.

'It looks as though the roof has been totally repaired,

'which is great and will save the new owner money.

'But the catalogue states that the property is still in need of some work,

'so there are obviously a few issues still to be sorted inside.

'Let's hope number 13 isn't a bad omen.'

Whoa! Well, it's like it's work in progress.

All the walls have been stripped back to the brick.

Looks like the electrics have been replaced - good news, at least.

A nice new fuse box there.

I love this fireplace. I'd keep that.

Definitely don't cover that up.

But yeah, it looks like a project that somebody started

but hasn't quite finished and it carries on through here.

Oh, whoa!

This is like one of those books where you have like a cross section

through a house or a boat or something.

You can see the internal workings. Amazing!

All these floorboards have been taken off.

The nice thing is you can actually see the work that's been done and the quality of it.

So nice joists have been put in there.

Again, electrics have been sorted, floorboards been taken out.

There's a lot to do, but at least the work done already has been done to a good standard.

'This is daunting project that will put off a lot of potential bidders

'as it needs more than just a spot of renovation.

'It will take an experienced builder to turn this place around as it's crying out for attention.

MUSIC: "Don't Leave Me This Way" by Thelma Houston

Well, at the rear of the property, there's this narrow passageway which leads down to the garden.

Oh, no, hang on a minute!

That is the garden. Fantastic!

Wouldn't need much of a mower, would you?

MUSIC: "The Other Man's Grass Is Always Greener"

'Not much chance of "lawn envy" here then, but you could just about squeeze in a shed.

'Returning inside, and on the ground floor,

'the bathroom at the back of the house has been plastered and painted

'and has a new shower, sink and toilet.

'One floor up, and of the two double bedrooms here, one at least is in an advanced state of decoration

'and just about ready for its fixtures and fittings.

'It looks as if the work done has been to a high standard.'

Well, up yet more stairs onto the third floor

and the restoration project continues.

Really interesting to see the building like this, but what would you do with this?

You've got the bedroom there - a really nice size.

This side of the loft, obviously someone's converted it.

You could have another bedroom, an en suite.

The potential is enormous. Nice to see underneath here

somebody's actually spent a lot of time and trouble doing the roof, so the infrastructure's been sorted.

I mean, it's not a project for a weekend DIY-er

but for somebody with a bit of experience, a really interesting thing to take on.

'Time to get some information about the property

'from the auctioneer who handled the sale.'

To see a house like this in this condition is somewhat unusual.

I mean, you'll either see a house that's totally neglected and needs everything doing to it

or you see it in a later stage of refurbishment, but half and half is quite unusual.

One of the big points here is that a lot of the first fix

of electrics and plumbing is already in place.

It doesn't look anywhere near reaching a stage of completion.

'It may not seem like much work, but it all takes time and money.

'The question is, would the new owner make anything like a profit from such an investment?'

The guide price of 48,000 is really a reflection of the fact that the owner really needs to sell it,

because if you spend £15,000 to £20,000 on completing it,

you'll have a property that's well worth £90,000 to £100,000.

'That's a calculation worth serious consideration.

'What's the rental potential here?'

Once renovated, this would have a rental value in the order of £450 a calendar month.

'That would bring in nearly £5,500 a year,

'so renting could prove to be a good option here too

'once the work's been finished.'

Well, it was a lot of property for that £48,000 guide price.

Shed-loads of work to sort it out

but it will be beautiful when it's finished.

Who fancied the challenge at the auction?

Start me where you like. 45,000?

45? 45, thank you.

At £45,000, at 45,000.

46 somewhere? 46 is bid.

46, 47, 47, 48?

48, 47 on the left. It's in the market, ladies and gentlemen.

We're going to sell it.

At 47,500. 48, sir? 48,

48,500, 500, 49. 49 is bid.

The bids are yours. 49, 49,500, 50,000...and a half? 50,500. 51?

51, 51 five, 52,000

52 five, 53,000,

53 five, 54, 54 five,

£55,000, 55,500,

60, £60,000, 60,500, 61,

61 five. Sure? £61,500 at the back of the room.

All done? For the first time at 61,500.

For the second time at 61,500. Third and last chance.

We're selling 62, 62,500, 62 five.

You said that last time.

62,500, once, twice. Second thoughts quickly. Third time? £62,500.

Sold at 62,500, gentleman at the back, thank you.

'John made the successful bid at £62,500 -

'14,500 over the guide price.

'He's a local lad who's recently started his own business,

'working as a freelance joiner.'

-Congratulations!

-Thank you.

-You got yourself a cutaway house.

-You can say that, literally, yeah!

Absolutely! So, why did you want to take it on?

Just, I think it got to that point in my life where things had changed, you know, personal circumstances,

and I always wanted to buy a property,

so I thought the auction would be the best place to get a bargain,

so I had a feel for the place and yeah, took the big step as you call it, so yeah...

That's interesting.

The first thing you say is that it was about personal circumstances

rather than money, rather than being a property developer, it was a...

Can you tell me more?

Yeah, basically I've just come out of a long-term relationship.

That kind of broke down. I think I didn't have any ties, and when you've got no ties,

it was kind of like, "Right, I can concentrate on myself. It'll give me something to work towards."

I felt this was probably the right time to look into this sort of property

and keep me busy for a bit really.

So, why this specific house, then?

I think what originally attracted it to me was probably the price.

The guide price was probably the lowest on the day

for the auction. I've always wanted to buy a terraced property

and I think once I got here, I walked through the door

I came with my dad, he had a really good feeling and he's normally quite a negative person.

'Well, those negative vibes don't stand a chance.

'John seems to have some emotional investment in this place already.

'This will surely be a labour of love

'since he's certainly got his work cut out.'

MUSIC: "Could It Be I'm Falling In Love?"

Quite a challenge and an element of, sort of, a bit of a lonely thing to do, isn't it? Or not?

-I mean, how do you see it?

-I suppose I'll get lonely here some dark nights in winter.

-JOHN LAUGHS

-I'll get a bit lonely,

but no, I think get a stereo on, I'll just keep plugging away, putting some plaster boards up

and doing some flooring. Once I get cracked on with it, I'll quite enjoy it, I think.

-Quite therapeutic in some ways actually.

-Yeah, yeah,

-but rather than retail therapy, it's more DIY therapy, yeah.

-Oh, I love that thought, yes!

-OK, so where are you going to start, then?

-Good question.

Where will start? What do you reckon?

I think I might start at the top and work my way down. I'll need to plan as much as I can ahead,

get it all in my head where I want things moving, electrics and piping,

how I'm going to... where I want things,

get the whole place first fixed and then windows,

probably get them in first to keep the place warm over winter,

might be an idea, some double glazing in, so yeah.

Just going to get a plan thought through first

and then take it from there really.

'John's ambitious time scale is to complete this project in just four months.

'So, considering he's already started his own joinery business,

'bang go his evenings and weekends.

'What kind of budget has he set aside?

-I've got a budget of £10,000, so that's kind of what I'm working towards.

-Wow!

So that's my kind of maximum budget and see what I can get for my money.

But I think I should be all right with that sort of budget.

-A lot of the labour will be done by myself so keeps the cost down.

-And the future for you, then?

-I'll see how this one goes.

-You're young, free and single, so...

-That's it, yeah.

That's one thing, so socially I've got to keep busy, away from working here.

Definitely got to keep out and about. Yeah... I want to see how this property goes.

Probably, hopefully move in here. If I like doing it and there's money to be made,

I'll probably look at buying somewhere else at the auctions again.

I quite like the process. It's quite simple,

so I can see myself doing this for a few years,

-so I'm looking forward to it.

-Great! Good luck.

-Thank you.

-I look forward to seeing how you get on.

-Thanks. Cheers!

So a very important project to John in more ways than one and I'm sure it will be very therapeutic for him

and hopefully make him some money. He has to stick to his budget, though, for sure.

How is he going to get on with sorting this place out?

It's a big job. You can find out later in the show.

Well, our intrepid investors have had time to get stuck in.

-But has it been a hard slog or plain sailing?

-Time to find out.

'This end-of-terrace, two-bedroomed maisonette in High Wycombe,

'Buckinghamshire, was bought for 140,000 as a family venture for dad Terry and his sons Daniel and Anton.

'Three months later, we're back to see how it all went.

'Anton was going to do most of the work while he was in between jobs.'

That'll be hard graft for you, isn't it?

It will be, but it's cheaper than going to the gym, so...

-That's a good way of looking at it.

-Indeed.

'Anton certainly has given himself a good workout

'and the flat has also benefited from being given a new lease of life.

'All the rooms have been upgraded with new plastering, paint

'and carpets throughout.

'The bathroom has been ripped out and rearranged...

'..there's a newly installed central heating boiler...

'..and the kitchen has had a significant facelift.

'Anton has now started a new job so his dad, Terry, was on hand

'to show us around the renovated property.'

What you're seeing here now is he's done all the cabinetry works,

he's done the wall tiling,

he's done the floor tiling. I've been labourer

along with my lady wife, and we've done the painting and decorating.

We've had professional people in to do the other bits and pieces

but Anton spent a lot of time on this part of it.

He's now found himself... Well, he hadn't found himself a job - he didn't look -

but as soon as he wanted to get back into the workplace he did

and it came along quickly, so we've had to finish it off.

Anton's an amateur. He's got more tools than most professionals which are now in my garage,

but no, he's first class. We had a great deal of fun working together.

'This father-and-son team were not sentimental about keeping any of the maisonette's original "charms",

'like the stipple-effect walls, metal-framed Crittall windows or polystyrene ceiling tiles.'

The walls were all stipple finished and were pretty horrible.

The windows were the old Crittall windows and we had to take them out.

They were falling out really so we put these lovely windows in

which has cut down the noise dramatically.

It keeps the place lovely and warm, so they're well worth the money.

Obviously the ceiling, once we'd taken off those tiles, it was just very bad,

so the ceilings were skimmed. The walls were also skimmed

because of the stipple they put on there.

Obviously it's been rewired. We changed the television point

because Anton insists this is the place to put a plasma screen.

I think he's thinking of renting it himself,

but he said they sat over there and they watched, so we moved the television area.

And then it's down to decoration, so nice, warm, simple colours, good carpet and it's ready to go.

'It seems as though particular attention was given

'to fitting out the kitchen to a very high standard.'

The old kitchen - and there wasn't a lot of it -

has been completely stripped out and we've totally refitted it.

We wanted to let it to professional people,

so there's nowhere here to dry your clothes

so we've got a wash-drier, a dishwasher, a freezer, a fridge

and plenty of cupboards, a lovely cooker and it's a very pleasant room now.

There's lighting control on dimmer switches, under-bench lighting,

so it really is a nice kitchen - not big, but it's very workable

and you can get two people in here quite comfortably.

'The whole flat now appears airy and spacious.

'But it's the smallest room that is Terry's particular pride and joy.'

This is my favourite because it was awful.

There was a great big enamel bath in bright green

and it was at that end of the bathroom.

The WC was at that end, which made no sense at all.

The tiling on the walls had gone back into - ooh, I don't know, the '70s, the late '60s -

and it was set with thick concrete. And on the ceiling were those wonderful polystyrene tiles,

now banned, so we had to wreck it completely, and we did.

We took everything off. It took ages to get the tiles off.

The amount of dust and junk that came out of this little, tiny room was amazing.

But my number two son Anton did all this wonderful tiling.

We got a plumber to plumb in the bath for us

and move the WC up that end, which wasn't easy, but we managed,

set the sink there, tiled all the way around,

put a wonderful shower unit in which I think you'll agree is lovely

and I'm chuffed to bits with it. It's a lovely room.

'Even with the benefit of Anton's workmanship,

'the scale and cost of the works must have had an impact on their original budget - around £14,000.'

We have overspent. We've spent 16,500, which was probably around £2,000 more than we expected.

Most of that is because of the plastering.

It just had to be done and I think it's money well spent

because it's given a good finish now to a lovely old flat.

We've become quite fond of this flat now.

All of us worked on it for such a long time

that we've become almost protective of it

and one of the reasons we thought about selling it

is cos it'll never look this good again

and we were worried about people coming in

and sort of making a mark on the wall.

We're getting too protective, so we've had to forget that really.

'To see if they could be tempted

'to have the flat prized from their hands,

'we invited two local estate agents round to value it.

'Remember, they bought it for 140,000 and spent £16,000 on decoration,

'making a total of £156,000.'

The flat itself, I think, is fantastically well presented.

It's split level.

It's been updated to a very good standard throughout

and provides great accommodation for the commuter.

I think the current owner has done a huge amount of improvements

and it's now an extremely saleable apartment in today's market place.

The finish the owners have gone for is a very neutral and contemporary finish

which will appeal to the first-time buyer and the executive buyer.

'Terry and Anton have a tenant lined up to rent the flat out soon.

'What do the professionals think the rental income should be?'

The rental that I would anticipate achieving for this flat

at the present time would be in the region of £775 per calendar month

and possibly as much as £790 per calendar month.

The value for rental purposes of this particular apartment would be £750 per calendar month.

'That means potential yield of around 6%, which isn't bad.

'How does that compare with what Terry will be charging?'

We've got the lower end of that already but I think we're happy anyway and we'll go with it,

but yeah, it just shows you it can be done. We thought it was a good spot and we were right.

'With that 156,000 spend in mind, what would they estimate is the resale value of the property?'

The value of this apartment today currently would be £175,000.

I would be happy to bring it to the market quoting an asking price of £175,000.

Really and truly, I thought, when we bought it, we'd spend enough money so we'd break even,

so to actually come in and make a profit on it, if we need to, is very good and we've got equity in it

and I'm delighted, and I'm sure my partners will be as well.

'We're back in Langley Mill, Nottingham, to catch up

'with freelance joiner and recent singleton John.

'He bought this three-storey, mid-terraced house for £62,500.

'It was already in a state of redevelopment by the previous owner when he got it,

'so he certainly had his work cut out turning it into a home.'

A bit of a lonely thing to do, is it or not? How do you see it?

No, I think get a stereo on, I'll just keep plugging away, putting some plaster boards up.

'Well, plugging away may have been the original plan, but it's clear to see that, in over a year,

'although work has been going on, not much is finished.

'Where once there was a disordered mess, there is now, well, more of an ordered mess.

'And the reason for this?

'Well, it seems that a new business, a new house and a new girlfriend

-'have been happy distractions.'

-Since buying the property at auction

it took me around, I'd say, a year and three months to get to this sort of point.

It obviously took a lot longer than I expected due to a work commitment,

so starting my business at the same sort of time I bought this took a lot of time.

Financial as well, I bought another property last year,

so last year I wanted to get that done before Christmas. That was, again, a renovation project,

so me and my partner have moved into that before Christmas,

so that's been a priority for me at the minute.

When I've not been too busy, I've been down here, working.

MUSIC: "Working On A Dream" by Bruce Springsteen

'Despite all John's other commitments

'he has completed a fair amount of work here.'

Since I've had the property, I've been busy trying to get it back up to standard.

I've ripped a lot of plaster off, put new ceilings in, new joists in.

A lot of stuff, like lintels, I've had to change, with it being wooden, to put concrete ones in.

And obviously I started from the top and kind of worked my way down,

sort of put new plaster boards on and I'd say new floors have gone in and things like that really.

I think it's starting to look more like a house. I think having a bit of plaster on the walls

and I'd say putting ceilings and floors in it, it feels more user-friendly for working in.

I think the neighbours appreciate it looking a bit more like something's being done

and I've put new windows in and things like that really,

so you've just got to do it in the right order -

start the structural things and I'm sort of getting towards the decorative bits now -

the skimming and some architraves and doors

and hopefully get a kitchen in.

'Now that he's running his own business, being in the trade has had some surprising benefits for John.'

As you can see, this is the kitchen I have to fit in the other room.

I got these at a job I was working on a few weeks ago.

The owner of the property was having a new kitchen fitted and was going to chuck it in the skip

so I asked if I could have it and gladly took it off their hands.

It needs a bit of sorting out, but will hopefully fit quite nicely. It'll do for rental accommodation.

'He also managed to blag a bathroom suite from his friend

'to fit in the attic space.'

'But it's not all been this easy. Some things needed to be redone

'and this has had an impact on his budget.'

The joists that were in,

I didn't really think were suitable structurally,

so I've replaced all of them and put new singular pieces in rather than joints in it.

Again, upstairs in the attic room I put new ceilings in cos they were slightly rotten and bowed,

so rather than mess about, I thought this is the time to put new timber in.

I've changed a few things I didn't think I'd have to do.

But apart from that, everything's sort of gone how I expected to go.

Trying to think about how much I've sort of spent

on the properties is always difficult when you're doing the work yourself

and you're buying bits and bobs as you go along.

I did originally try and keep a tally on my computer but that's been blown out the window.

I would say I've probably spent around the 8,000-9,000 mark so far -

not too bad with new windows and stuff.

Once everything's completely decorated and furnished,

the carpet's down, I'm hoping I don't spend more than £11,000 to £12,000.

'John bought the property for £62,500

'and looks likely to spend nearly £12,000 on finishing the place.

'That's a total of £74,500.

'Can he hope to make any money from his endeavours?

'We invited along a couple of local estate agents

'to view it in its still unfinished state and give their evaluation.'

My first impressions of the property are

he's put a lot of work into starting the basics really - rewiring and plumbing -

which are really important because that'll help us get it through a survey.

He's got to finish the cosmetic side of things which will help attract a buyer.

My first impressions are the property does need finishing,

the kitchen needs to go into the rear,

replaster the walls, put all the electricity in,

and then I think it will be a nice property.

The positives of this property I would say are the amount of space. It's a three-storey property.

The second en suite upstairs is a good idea.

Gives it something to offer that the others haven't got.

And the position of it.

It's quite handy for the railway station, appealing to people working in Nottingham.

The only negative side of the property would be

the size of the rear garden. It's only like a small yard.

You've go the storage shed to the rear. And there's no parking.

'So when John has completed the work, what do they think he could rent the house out for?'

Once finished, I would offer this property for rent at £450 a month.

The rent I would hope to receive for a property like this would be around £450 a month.

I think £450 is a fair rental income for this kind of property.

It's what I was looking at getting. I've done a bit of market research

and 450 is kind of on the money really for what I expected. I'm fairly pleased with that.

'That would give John a little over a 7% yield which is a decent income.

'He reckons his total spend will be around £74,500.

'But if he were to put the property on the resale market,

'could he hope to recoup his expenditure?'

I would market this property at £90,000

with a view to achieving a sale hopefully in excess of £85,000.

Resale valuation - I'd hope to achieve around £95,000.

I'd hope to get around £90,000 for the property

if I was going to resell it, but I think at the minute I'd hang on to the property

due to the current market not being at its best and hopefully in the future, things will pick up,

and I might get a better price for it.

'John has already been working on this house for over a year

'and has sometimes felt he was losing heart.'

At times, it's been very tough. I've been very tempted to go back to the auction and get rid of it

and cash in, as you could say, get my money back off the property and buy a nice car or something,

but I suppose I try and look at the bigger picture and look further down the line than at the minute,

and you just persevere with it and eventually things get done.

It doesn't look like things are getting done and it gets a bit frustrating at times,

but no, I'm glad I'm sticking with it.

That's it for today's show. Tune in next time for more Homes Under The Hammer.

-We'll see you then.

-Goodbye.

-Goodbye.

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