Episode 32 Homes Under the Hammer

Hello and welcome to the show. Even in these troubled financial times,

we all need somewhere to live or possibly somewhere

-that can act as an investment.

-One excellent place to find a property bargain

may be at an auction.

So join us now because we've trawled the country

to find people who've done just that.

Well, buying and doing up property can be very rewarding,

but it can also be fraught with problems.

Yes, some people take to it like ducks to water,

but others, well, like cats to water.

So will our buyers today be quacking mad or purring with pleasure?

'In Derbyshire, could this attractive-looking place plug a gap in the property market?'

There's a cork, a wine cork, stuck in the wall. That's odd, isn't it?

'In Sevenoaks, Kent, I'm flushed with success

'when I find a very small auction lot.'

Cos it's here. Yes, here!

'While this three-bed semi in Carlisle fails to make me feel fruity.'

Plum. Not really this year's colour.

'All these properties have been sold at auction

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

-'when they went under the hammer.'

-Sold at the back.

'Alfreton in Derbyshire is a popular spot for commuters needing access to places like Derby and Nottingham.

'But it's also a busy market town,

'which makes the property I'm here to see very interesting.

'This handsome-looking building consists of a commercial unit downstairs

'and a two-bed flat upstairs.

'It had a guide price of £135,000,

'and yes, it could do with a bit of a face-lift.

'But one thing you don't need to worry about is the ground floor commercial unit,

'as it's already let on a long-term lease.

'The two-bed flat's entrance is next door to the commercial unit,

'so let's take a peek.'

So, what's on offer? Well, a bit of a sort of cramped feel when you walk through the door,

which is a bit unfortunate. You've got this narrow corridor there

which leads to the kitchen and on through to another room and a bathroom.

Stairs up to two more rooms there. A very large and spacious front sitting room there.

And then I guess another bedroom or sitting room here.

The internal layout definitely wants playing around with,

but intrinsically, quite a lot of space. That bit feels fairly cramped and quite claustrophobic.

Come in here, you've got these high ceilings, which helps.

It's good to see the electrics have been vaguely replaced,

-but what on earth is that?

-HE LAUGHS

There's a cork, a wine cork, stuck in the wall.

That's odd, isn't it?

I wonder why it's there.

Do you think it should stay there?

Ohh! The temptation to pull it out!

# Let me get right to the point

# I don't pop my cork for every man I see

# Hey, big spender

That was a bit of an anti-climax, wasn't it?

Oh, well. Don't say I don't take risks.

# Spend a little time with me #

I think champagne corks could pop here, though.

I reckon this flat is pretty straightforward and has great possibilities.

'For that guide price of £135,000 plus, there's a lot of space,

'though maybe not laid out in the way you'd choose.

'The kitchen's rather narrow and the room off it has a boiler. Not very attractive.

'There's a downstairs bathroom which, as you know, is not a favourite of mine or Lucy's.

'But those two front-facing bay window rooms are lovely,

'light and airy.

'If upstairs is as spacious, then I wonder if this could perhaps become more than one flat.'

So, up onto the top floor, and one thing this place is certainly not lacking is space.

Two rooms up here. Very large room to the front there

and then an even larger room just there.

So, it's going to all be about how you play around with the internals here.

And I think it's a case of enlisting a really good architect

and bearing in mind all the things like soundproofing

and issues when it comes to building flats.

A bit of careful thought and some good planning

and, yeah, like the potential.

'So, a character property with potential to generate rental income

'from flat conversions on the top two floors

'to add to the current income from the commercial premises.

'But if you were thinking that was all that went under the hammer with this plot, you'd be mistaken.

'Surprisingly, there's also space on the outside.

'At the back, there's this huge additional structure.

'It's all bricked up so I can't get in to have a look.

'It's all a bit mysterious. But on the plus side, it does have two storeys.

'As a priority, I'd be checking out its planning status.

'Is it commercial or residential?

'This could be very exciting. Or maybe it's just...'

# Too good to be true

# Too good to be true... #

'So, it's a really intriguing property

'with lots of different options available,

'as long as you can get that all-important planning permission.

'We asked a local property expert along to hear his views

'on the potential of this auction lot, which went under the hammer

'guided at £135,000 plus.'

My first impressions when I visited the property

were that the retail accommodation on the ground floor was in good order.

Within the main building, I can't see any structural issues.

However, the additional accommodation to the rear certainly is going to need some improvements.

'What does he suggest would be the best option for the top two floors?'

I think, ideally, the residential accommodation could be divided

into two separate flats

to provide separate accommodation.

That would require planning consent and building regulations approval.

'So, how much income could a one-bed flat generate?'

On today's rental markets, one-bedroom flats in this area

would look to achieve a current rent of £375 to £400 per calendar month.

'The estate agent says that one-bedroom flats locally

'are achieving £50,000 to £55,000.

'But if the derelict building at the back was also converted into two flats,

'what could the combined commercial and residential investment be worth?'

If the property were to be completely maximised

with the additional accommodation to the rear being brought back into use,

we could see a value in the region of £250,000 to £270,000 for this property.

'This potential value, as well as the income from the existing tenant,

'makes this a very enticing development opportunity.

'But that bricked-up building is rather mysterious

'and brings new meaning to buying blind.

'Let's see who went into this with their eyes wide open when it went under the hammer.'

Lot 22, mixed commercial/retail property

with upper-floor accommodation, currently vacant.

£130,000 to start.

130. 125?

Yes, 125. Thank you. At £125,000, opening bid.

126. 127.

128. 129.

130. 131.

32. 33.

134. 135.

135,000 here.

136. 137.

138. And 9.

139. 140?

139 against you. 140.

141. Fresh bidder. 142.

143. Either of you 144?

143,000. 44.

45. 145.

146. 147.

148. 149.

150?

I don't really want to take the half but I will. 149 and a half.

150. And a half again?

Shakes his head. 150 is the bid here.

At 150,000, going once.

Going twice. Third and last chance, all done?

-HAMMER BANGS

-Sold at 150. Number 12.

'Those two very relieved bidders were Rachel and Tony.

'For just over £15,000 above the guide price,

'they've bought themselves a rather fascinating property

'for 150,000 quid.

'They may look familiar, because they've already featured on the programme once before.

'We last met them at their first investment property

'in Selston in Nottinghamshire.'

# You're a winner

# I'm a winner

# How can two winners lose? #

'They'd just won the lottery then and had decided to put some of their winnings into property.

'I met them at their latest purchase to hear how things are going

'and what their plans are for this place.'

-Tony, Rachel, good to see you again.

-You, too.

-How are you both?

-We're fine.

-A few years have whizzed by.

-Indeed.

Good times since the last time we saw you? It was about three or four years ago.

Yeah, good times. A bit more difficult over the last three years, but still good.

-Good. What's been happening to you both since then?

-We've sort of concentrated more on renters

because we found there wasn't the money any more

to buy the properties, do them up and sell them on and make anything worthwhile.

-So mainly renters.

-Why this particular place?

Because it's got the commercial unit downstairs that's fully let

and we can do a lot more upstairs and the building that side.

-The mystery building.

-Yeah. A lot of potential.

Yes. I mean, let's start with that place.

How odd to have that in the sale

and yet you pretty much can't get into it so you don't know what's in there.

-It's bricked up. Can't get in.

-There could be a Ferrari hidden.

-Well, let's hope so.

-Yeah.

-THEY LAUGH

Or a stash of paintings or something.

-But probably just mould and rubbish.

-Probably.

But it's a decent size. I mean, it forms a substantial part of the whole lot.

Yes, we looked at it, we've got the commercial downstairs,

possibly to change this into two flats upstairs and that is just stuck on the back as a freebie,

so whatever we do with it is a bit of a bonus.

So, tell me what you're going to do, then, with what you've bought.

We're hoping to convert the upstairs into two two-bedroom flats

and the outside building into a two-bedroom cottage or flat

or something like that if we can,

or maybe even convert the outside into more commercial office space. We haven't decided yet.

'Whatever the couple decide to do,

'it sounds like they're going to be spending some time getting planning permission.

'It might require change of use permission, but their architect is already looking into that.

'Whichever path they take, this is certainly a more ambitious project for them than usual.'

Normally we stick to lower-end properties,

terraced, semis, the odd detached we've done.

This is a commercial unit

to be changed into several flats, so it's a bit...

-I mean, we've never used architects before, have we?

-No.

Normally we can sort of wing it ourselves, but this is...

..a bit out of our comfort zone, let's say.

'I remember the last time we met, the couple were very hands-on

'with that project. Are they still as involved?'

-Yeah, we still get in there.

-We do all the stripping out.

-We get in, strip out

and knock the initial sort of walls about

and then get the electricians, plumbers, gas engineers in,

then we come back and put it all back together.

What's your involvement, Rachel? Are you hands-on day-to-day?

-Yeah, definitely.

-You're the brains behind it.

-You do all the legal stuff and all the paperwork.

-Yeah, I try and do that as well.

-And the glossing.

-Sanding and glossing.

'Rachel and Tony have set aside a healthy budget of £100,000

'to include their architect's fees as well as the renovation work

'required on this building, plus the one at the back.

'The couple are reckoning on a one-year timescale

'and will be earning an income from the commercial property straight away.'

That was one of the big plus sides, as well,

cos if we did nothing at all, we're still getting seven percent return on what we initially paid,

so, you know, it gives you a big buffer.

-Well, congratulations.

-Thanks.

-Great to see you both again.

-You, too.

And I look forward to returning and seeing what you do

-and what's in that mystery part of the property.

-Indeed! MARTIN LAUGHS

So, Tony and Rachel continuing to build their property portfolio

with this interesting mixed-use development.

They admit it's a challenge for them, and there's a lot of work to be done, for sure,

but the most intriguing thing is what will they find in that building out the back?

You can find out later in the show.

'This is the town of Sevenoaks in Kent,

'which is just 30 minutes train ride from London.

'In one survey a few years ago, it was considered the tenth richest town in Britain,

'and generally, the size and price of the properties here reflect its wealthy status.'

So with mansions in high demand around here

and no sign of Sevenoaks's status letting up,

you'll be hoping I'm here to see a grand house,

a penthouse flat, certainly a posh pad of sorts.

Well, I'm sorry. Think lower. Much lower.

Because it's here. Yes, here!

It's a former public toilet!

'It's certainly small, only 20 foot by 11.

'It's just the building and plot itself, no land or parking.'

# Price tag... #

'This trip to the loo will be very short indeed.

'Remember, 20 feet by 11 with no outside space.

'The main attraction here will be the...'

# Price tag... #

Only £10,000, and in an extremely desirable spot.

The question is, just what could you do with it?

'The big problem with this convenience is it's pretty inconvenient.

'There's a car park at the back but it doesn't belong to the property, so nowhere to park a vehicle,

'and there's a phone box right in front.

'But before we pull the plug here, let's see if we can find development inspiration from the past.'

The history of the public toilet is an interesting one.

In 1851, London was about to showcase itself to the world

with the Great Exhibition.

Millions were expected to flock to the capital

and there had been no provision for where they could, erm, go, you know.

Enter London plumber George Jennings, who spotted an opportunity.

He built the first public loo at the exhibition at his own expense.

He charged each punter a penny for the privilege

and he walked away with a profit and a spectacular new career.

So, could these facilities make you rich?

As loos, almost certainly not.

And definitely not for a penny a go!

Time to take a wander and work out what could.

# We can work it out, we can work it out... #

On one side of the toilets, you have commercial premises,

but on the other side of the car park, you have residential houses.

So what about trying to get planning for a house here?

You'd have to get permission to go up one, even two storeys,

and then you'd be looking at a mini home,

probably no more than one bedroom.

But in this area, where one-bedroom flats go for £130,000,

I'm sure you could ask that. But is this realistic?

There's no parking, there's no outside space,

there's a great big phone box right outside and you're next to a shop,

and you're right on the pavement. It would be a brave person

who took the planners on with this one, but I like brave,

and if it paid off, well, what a coup!

# Honey, I'm still free

# Take a chance on me

# If you need me, let me know

# Gonna be around

# If you've got no place to go, if you're feeling down... #

'This is definitely one lot that's a bit of a punt.

'You might come up smelling of roses

'or you could see your money go straight down the pan.

'So, is it worth taking a chance on?

'What does a local estate agent make of this somewhat different lot?'

Very unusual. I'm struggling to think of an alternative use.

Possibly a small kiosk, retail unit

for a florist or beautician, possibly.

Maybe a small office, one or two people working in there.

'A commercial premises does seem more likely,

'but could it be turned into a residential dwelling?'

I think to convert the property to residential would be quite difficult.

There's no amenity land with it and that would be...

Without that amenity land,

I believe that would be contrary to the local plan policy, so I think they will struggle.

'So it's less likely to be turned into residential.

'But which outcome would generate the better returns?

'A commercial unit or residential?

'First, the commercial values.'

If you could achieve a rent of, say, £6,000 a year,

I would hope to be able to sell it for about £75,000 once let.

A one-bedroom purpose-built flat

I would think would get something like £125,000, £130,000.

'So residential is riskier but would bring higher rewards.

'But even a commercial outlet could pay dividends

'when it was guided at only £8,000 to £10,000.'

Well, it's not an easy one, this, but maybe it's an opportunity

for the brave and bold developer to give some crazy ideas a go.

Or it's a chance for somebody to get a foot on the commercial property ladder.

Whatever somebody plans for this place,

at that guide price, well, it's an oddly exciting one to watch.

So let's take a seat and see what happened at the auction.

We move to the former public toilet with potential.

Start me at £10,000? 10,000 I have, thank you.

At £10,000 is bid. 12. 12 I'm bid.

And 14. We're out in the green tie.

14 I'm bid. 16 I have.

And 18?

18 in a fresh place. And 20.

20,000 in a fresh place. And 22? No.

22 at the back. And 24?

22,000 at the back. 23 I'm bid.

And 24? 24 is bid.

And 25? 25 is bid.

And 26?

And 26 with the catalogue. That's about everybody in the room, isn't it?

26 I'm bid. And 27?

And the 7 is bid. 28? No?

28 in a fresh place sitting.

And 9. 29 sitting.

And 30, will you make it? 30 I have.

And 31. And 32.

Is that a bid? 32.

And 33. And 34 sitting.

34. And 35. 35 I have standing.

And 36? 36.

And 37. And 38.

8 is bid. And 39?

39. And 40? 40 I have.

41. And 42?

We're out sitting. £41,000 is the bid.

Gentleman standing at 41,000.

42 do I see? Gentleman's bid standing.

For the first time at 41,000.

For the second time at 41,000.

Third and final time at 41,000, gentleman standing.

-Are you all done?

-HAMMER BANGS

-Sold at £41,000. Your number, sir?

'Flushed with success at securing the public toilets for 41,000

'are local couple Maria and Angelo.

'They're both in the hairdressing trade and own several salons.

'Angelo has dabbled in property for over 20 years.

'Chatting in the loo didn't appeal to us,

'so I met them over a cuppa to find out more.'

-Congratulations.

-Thank you.

-I love it! You bought the toilets!

-Yeah.

Angelo, tell me the story behind you wanting to buy the local loos.

Well, we're hoping to knock the whole building down

-and just start afresh, really, and put a nice little residential house there.

-Yeah.

-A small one-bedroom house.

-There was an idea of whether to put a shop

and then we came off that idea and then we thought maybe a house would be more value for money.

Why did you go down the residential route? Purely from the monetary side of things?

Erm, commercial at the moment's not doing a great deal in Sevenoaks.

Things are not looking good. So residential, small unit,

someone who needs to get into London, it's in the right place.

'No doubt about it, this is a good town to develop in,

'but this particular location is tricky and is tiny.

'However, Angelo has already got his vision on paper

'and it certainly looks like the couple will be spending a penny or two.'

-That's the street scene.

-Very nice. It's a got a real contemporary edge to it.

-I love it! It doesn't stick out like a sore thumb.

-No. That's the idea.

-So much better than a toilet!

-Yeah. THEY LAUGH

So how much do you think it'll cost you to build something like that?

Er, we hope to bring it in at about £70,000.

-Maybe a little but less.

-And that's three floors, is it?

-Well, it'll be two floors and the loft.

-What's the ground floor going to be?

That's going to be the kitchen/dining room.

-And the middle floor?

-That'll be the lounge. And then at the very top,

hopefully we can put a bedroom with just a shower/toilet, a wet room.

And it'll be a mezzanine floor in the loft, as well,

so it'll make it something a little bit different.

So it's going to be about the same size as a one-bedroom flat, but it'll be a house.

-Yeah, it'll be on different levels.

-That's the idea.

'I'm pretty bowled over by this project.

'It's really brave but it would seem Angelo likes a challenge.'

-Have you guys done stuff like this before?

-Yeah.

He came home with an old boiler house

with a 60-foot chimney that he looked at

and said, "Look, we could put a shop there."

-And we have. We've put two shops there.

-SHE LAUGHS

-Knocked the whole lot down.

-So you have got the vision, Angelo.

-Yeah.

Well, if there's a building there, I know that you can replace it

with another building, albeit a few problems with the council,

but they want to enhance their areas

and if you approach them in that way,

that you'll make it a nicer place, then they're happy to allow it.

Now, if you don't get permission to turn this into a residential dwelling,

-what is plan B for you guys, Maria?

-Do the next stage.

If they would prefer a shop then we'll go for commercial

and then hopefully if we can put something above it... Just see how we get on, really.

So plan B is not really the option you want, is it?

-No.

-No.

-But if it has to be, it has to be.

It's not a... As long as there isn't a plan C.

-Yeah!

-Plan A and B are fantastic, yeah.

You strike me as the sort of person who'll fight for this.

-You want this to happen, don't you?

-Yeah.

I mean, it's like most things.

If I get my teeth in the bit then it's got to happen.

It's not going to be a nothing. It's going to be a something there.

We've had people say, "No, it can't be done,"

but it will be, it will be.

Guys, I think this is a great opportunity not to be missed,

but it's a very, very brave one.

-Good luck to both of you.

-Thank you.

-Thank you very much.

-Thank you.

-Thanks, Maria.

# Come what may

# Come what may... #

'So, as far as Angelo and Maria are concerned,

'come what may, this development won't be money down the drain.'

Angelo and Maria have bought themselves a big old gamble of a project, but I love their guts!

And the plans are far from bog-standard.

I reckon this house idea may not be such a flash in the pan.

You can find out if this one washes its face later on in the show.

'Coming up in Carlisle, the ground floor of this three-bedroom semi has lots of charm.'

Because if there's fixtures like that, there might be more.

'In Sevenoaks, Kent, Angelo holds on for the loo.'

They dismantle it slowly and bring it back to us all cleaned up

so we can use that on another project.

'But first, our Derbyshire developers face tough choices.'

If something comes up, we'll go for it. If not, then we have to go on holiday.

'Earlier, I visited Alfreton in Derbyshire, a busy market town

'within easy commuting distance of Derby and Nottingham.

'Alfreton has a lot of interesting historic buildings

'and we looked at this three-storey property,

'which also had a mystery bricked-up property at the back.

'It was bought by Rachel and Tony for £150,000

'to add to their buy-to-let portfolio.

'The ground floor was on a lengthy lease so that was an instant income.

'They reckoned it would take a year to see their ambitious plans through.'

We're hoping to convert the upstairs into two two-bedroom flats

and the outside building into a two-bedroom cottage or flat

or something like that if we can, or maybe even convert the outside into more commercial office space.

'The couple had set a generous budget of £100,000

'to convert the main building into two flats, plus the work on the derelict building at the back.

'It's now 11 and a half months later

'and the two upper floors have been renovated.

'So, do we have two flats?

'Nope. We have one.

'Firstly, they have obviously knocked down some walls here.

'The cramped kitchen has gone and it's much more spacious now.

'And there's a utility room.

'The two bay-fronted rooms at the front are carpeted and neutrally decorated.

'The meters have been boxed in and the cork's gone.

'The black as night bathroom is now sunshine yellow.

'It's a shame the bathroom's still downstairs, though, and has just been freshened up.

'So, what happened to those ambitious plans of making two flats here?

'Well, it turns out it was advice from the architect that influenced this decision.'

Well, he wanted us to move the stairs

because of the fire risk and things like that, so that's why we didn't go down that...

The bottom of our stairs was too close to the door.

You need a certain amount of room between the bottom of the stairs and the door,

which meant we would've had to change the whole stairwell. It was going to cost way too much,

so we went with the easier route of just turning this into a three/four-bedroom flat.

'The staircase up from the pavement also has a washroom for the commercial premises,

'so that's all staying as is.

'Up on the second floor, the back bedroom has been divided into two.

'They've retained the laminate flooring and both rooms are still doubles.

'The large front bedroom remains. But what about that mystery building at the back

'and their plans to refurbish it?'

That's where it starts to get a little bit interesting.

That was initially going to be possibly two flats.

It's going to be a two-bedroom stand-alone cottage.

'The couple have applied for planning permission

'and are confident it will be approved.

'The property's far too dangerous to film in. It's going to need a lot of work.'

It's going to be pretty much a new house.

The roof trusses will be replaced, it'll need rendering from the outside all the way through.

Yeah, new floors, windows, doors, kitchen, bathroom.

All new electrics, heating system.

'Tony and Rachel had given themselves £100,000 to convert the upper floors of this building

'into two flats, with two more flats in the rear property.

'How much have they spent so far?'

We've not done what we first thought we were going to do.

It's cost us about £9,000 to do the flat

and then it's going to be about £40,000 to do the outbuilding.

So you're looking at a complete total budget of £50,000,

which is probably half of what we estimated last time.

'The £150,000 they paid at auction would take their total investment to £200,000.

'Although their initial plans for the number of units has changed,

'they should still generate a good, solid return from their investment

'from this three-bedroom flat and the two-bedroom cottage

'plus the rent from the commercial unit on the ground floor.

'We invited two local estate agents to give us their opinions

'of this large three-bed flat.

'First, the estate agent who saw it last time.'

Now I've returned to the property, I can see that the finish

is absolutely excellent. It's presented in good order.

I was expecting on my return to find four flats or five flats

or certainly something different.

I think the owners have done a fantastic job refurbishing

from start to finish.

Very high standard and deceptively spacious accommodation on offer.

I think the building at the rear is crying out to be converted into a further two flats.

I think to only convert it into one would be a wasted opportunity when there is the space for two flats.

'What about the flat that is actually finished, though? What could it sell on for?'

If we were looking to offer this property to the market,

I would say it would be offered to the market at £60,000 to £65,000.

I would value the property as it has been refurbished

in the region of £60,000 to £65,000.

We're not going to sell it anyway, but, yeah, if it's worth £60,000 to £70,000, then great.

'Tony and Rachel are looking for tenants.

'How much rental income can they expect?'

I would market this property at £425 per calendar month.

If I were looking to offer this property to the rental market,

I would expect a rental to be achieved somewhere in the region of £500 per calendar month.

-£500 per month would be fantastic.

-We'll be happy with 425.

I think 425 is achievable. 500 may be a little bit pushing it,

but I don't know, we'll have to wait and see.

'What about the potential sale value of the two-bedroom cottage?'

I would say that if it were converted to a cottage or one single dwelling,

it would be worth somewhere in the region of £65,000 to £70,000.

If the owners decided to create a one or two-bedroom cottage,

I'd expect the value to be in the region of £70,000.

'And the rental income from the cottage?'

If the owners were to create the two-bedroom cottage,

that could achieve in the region of £450 to £457 per calendar month.

We're happy with the 475.

If we can get 475 for a two-bedroom cottage, we'd be more than happy with that.

'With Rachel and Tony's rental portfolio continuing to grow,

'do they intend to add to it or have they got other plans?'

Oh, we're looking at buying another property to do up to sell,

but it depends if one comes up. We'll keep checking the auctions.

We're always looking. If something comes up, we'll go for it.

If not, then we have to go on holiday.

'Carlisle is not only a compact and attractive city.

'With great links to the south and to Scotland,

'it's one of the best-placed cities in the country for access to the beautiful Lake District.'

Well, just on the outskirts of Carlisle

in this very popular residential area is the property I'm here to see.

Three-bedroom semidetached. This is it.

Had a guide price of £55,000.

Looks really good from the outside. Let's take a look.

'Yeah, it not only looks reasonably solid, its location is a plus point, too.

'There are plenty of buses to the city centre,

'so let's hope the interiors keep up the positive start.'

OK, so, what's on offer?

Stairs sort of bending round there up to your bedrooms.

Nice size entrance, which always sets the place off really well.

One thing that ain't quite so good, we've got some kind of a storage radiator here,

so central heating is going to have to be budgeted into the whole renovation cost.

The kitchen's there. Double glazing, double-glazed rear door,

but the actual kitchen looks a bit small and you've got a little pantry area at the back.

Front lounge. Again, doesn't look to be in too bad condition

and it certainly doesn't smell damp. Somebody's kindly taken up the carpets, which is good,

revealing the floorboards, which are in fairly reasonable condition,

so you might want to consider stripping those back rather than putting carpets back,

really good if you've got allergies or pets.

And the room itself, this rear living room, a good size again.

I'd maybe think about putting some double doors out into the garden.

But one thing I do quite like is some of these cupboards,

you might not like them, but at some stage, somebody's put this board over the top.

Underneath them I guess is original pitched pine, so strip those back.

And that also bodes well for the rest of the house,

because if there's features like that, there might be more.

'It's great that this house has some lovely features

'like the picture rails.

'It saves having to reintroduce them to add some charm,

'and obviously, the gas fires don't fall into that category.

'But if you replace them with some original iron fireplaces,

'this place would ooze character.

'Hopefully the same can be said about the upstairs.'

So, a few things you might want to do with the layout up here. There is a separate loo and bathroom.

You might want to knock those together.

And the... Well, the bathroom suite, plum.

Not really this year's colour. But you never know.

A white suite in there would definitely improve things. But good size bedrooms.

Again, nice floorboards. A few lovely little features,

like a little gas fire in the front that you definitely want to have checked out before you use.

In the back here, another little fireplace.

Very sweet. Just rounding up this house, really.

Nothing I can see that causes me concern.

Just a good, solid little property

that'd make a lovely home, to be honest.

'Once those fireplaces have been stripped back to their original state,

'they'll provide an attractive focal point for the rooms.

'The third bedroom isn't a bad size

'but doesn't have much in the way of character.

'If you're looking for more features,

'I wouldn't be surprised if there are some decent spindles under that covered banister.

'So much for inside.'

Well, at the rear of the property, you can see, it is in pretty good nick, which is good news.

A couple of additional things which are nice to have.

This outbuilding. It's brick-built, got a nice solid roof,

good place to store your garden bits and pieces or whatever.

And the garden itself. Well, I have a theory that if the garden is looking neat and well-kept

then that probably says the people had the same attitude when it came to the house,

and sure enough, it's a really nice size, tidy garden.

All the shrubs have been cut back, the hedge has been trimmed.

Obviously, this was a much-loved house. And I really like it.

'The decor aside, it's almost impossible to fault this house.

'Solid, well-maintained, with some original features,

'and on a more practical level,

'within easy reach of the town centre and the M6.

'But with a guide price of £55,000,

'what does it all mean in financial terms?

'We asked the auctioneer who sold it

'what he made of this three-bedroom terrace in Carlisle.'

I think it's a good property. It needs a programme of modernisation,

central heating, decoration, kitchen and bathroom maybe,

but good stock house and it would both sell and rent well

when modernised.

'So, given a good spruce up and then how much more than that guide price

'of £55,000 plus could it be worth?'

I would say if this was modernised to pristine condition, showroom condition,

I think you might see in excess of £90,000.

'That could be quite a tidy little profit.

'But do the sums add up in the rental stakes?'

Once renovated, if this property was exposed to the rental market,

I think you would achieve around £425 per calendar month.

'I think this is a pretty neat little house as it stands,

'so I wouldn't be tempted to extend.

'But could an investor add value here?'

I think you've got to be careful when extending a property

because the cost of improvement doesn't always equal increased value,

and that might be the case with this property.

You know when you get a feel about a property?

Well, in this case, my feeling is really positive.

No hidden nasties, just a really straightforward,

"what you see is what you get" kind of place.

A great one to go for. Let's see who agreed when it went under the hammer.

Lot number ten. Plus is the guide. 55, then?

50? 45? Let's not muck about.

45 I've got. At 45 I'm bid.

46 in the door. 47 may I say?

48, sir. 49.

Shake of the head. At £48,000 I'm bid.

49. And 50. 50 I've got on the phone.

51. 52. OK, I'll take a half.

51,500. 52.

And a half. 53 I've got.

53 and a half. 53 and a half, new position.

54 I've got. 54 and a half. 54 and a half.

55, shake of the head. 55 on the phone.

55 and a half.

56 on the phone.

And a half may I say?

57. 57 and a half, new bidder.

At 57,500, back row.

58. Let's leave him out. 58 and a half.

No, shake of the head. It's with you at 58, sir.

At £58,000, first time.

At £58,000, second time.

-At £58,000, third and final time, selling away.

-HE BANGS HAMMER

-Goes to the corner. Well done.

-'It was Robert who bought the lot for £58,000.

'He lives in Carlisle and this was his first auction purchase.

'I met him at the three-bed semi to find out about him and his plans for it.'

-Robert, congratulations. Nice house.

-Thank you very much.

Do you currently own a house or is this your first house?

-This is my first house, yes.

-Perfect. What about it did you really like?

The whole character of it.

Bay window, the back room, the front room,

the lovely gas fire upstairs, the cast iron gas fire,

the lovely coal fire upstairs, the bay windows, the lovely garden.

Everything is just lovely. And the original doors upstairs

and the bare boards, which have potential.

Everything about it has just got potential. Just all of it. I just loved it.

Fantastic. What about the area? Do you know the area well?

Yes, yes, I was born and brought up and bred in the area.

-So do you know this house? Have you walked past it or seen it in your travels?

-Many times.

'Robert has always fancied living around here and this house fits the bill.

'He plans to move in straight away and get stuck in.

'I'm very keen on the original features here

'and so far it's sounding like Robert's pretty taken by them, too.

'This could well be a labour of love and there might just be an explanation for that.'

What do you do when you're not buying your first house?

-I have my own business and I restore and conserve antique and modern furniture.

-Oh, great!

Fantastic. So will this be containing some of the stuff you do?

Possibly, yes. That's the best thing about the job.

I can get old pieces and put them in and have it how I want it

-with nice pieces of restored furniture.

-Great.

-Tell me what you're going to do to it.

-I want to keep the gas fire in the front bedroom in the corner,

take it right back to the metal and bring it to the black colour.

I want to add original dado rails where they're missing from the ceiling.

I want to take the floorboards back and varnish them

and strip the original pitch pine doors

and look at getting three original doors again for downstairs.

-So it all matches.

-Yeah.

-Have those stripped.

-And the bathroom?

-The bathroom, keep it separate.

-Right. Good.

-Maybe live with it for a little while.

-The burgundy colour, which might not appeal to everybody, you're going to live with that?

-For a while.

-We'll see how it goes.

-It might come back in fashion.

-THEY LAUGH

-And then any ideas for this room, the lounge?

It would be quite nice to put a set of patio doors on there.

Erm, haven't thought like that. I've got a little budget but there's not a lot there.

-So what is the budget?

-Er, I haven't really got one.

I'm trying to keep it as low as I can.

Erm, I'm just talking about paint and doors and things,

so maybe, you might not believe it, but about £1,000 or something like that.

'Robert plans to be here for some time

'and he isn't after dramatic changes.

'The kitchen will get a simple paint job

'and what work he has planned will be done by himself with a little help from his friends.

'However, he'll call in tradespeople as and when they're needed,

'for example, to replace the storage heaters with central heating. And his timescale?

'Well, he's allowed himself a generous 12 months because this renovation

'might have to take a back seat to some of his other interests.'

So what do you do when you're not doing furniture restoration?

I'm very busy, Martin.

I am an active member of Botcherby Residents Action Group.

I am also a councillor, a city and a county councillor for this ward.

-Right.

-Independent.

-So you'll make sure the rubbish is collected on time and stuff like that.

-Yes, yes.

I also do campanology at Carlisle Cathedral.

-Bell-ringing?

-Mm.

-Wow!

-What kind of bell set has Carlisle Cathedral got?

-It has, believe it or not, 13 bells.

-Right.

-But it doesn't ring on 13.

It rings on 12 and it's lovely to hear them ringing

and they're a great bunch of people that are there.

And we practice on Fridays,

we ring on Sundays

and we're always looking for others that want to do it.

It's a lovely, lovely thing to do, bell-ringing.

-Well, listen, congratulations. Good luck with it.

-Thank you.

-Look forward to seeing how you get on.

# You can ring my bell

-# Ring my bell

-# My bell

# Ring-a-ring-a-ring... #

Well, I think Robert's got himself a really nice property for his first home here.

And although he isn't planning on ringing too many changes,

that £1,000 budget might be a little bit tight.

You can find out how he gets on later on in the show.

Well, the weeks and months have passed and there's no escape.

It's time to return to see how our buyers have fared.

Like you, we are dying to find out.

It's time to lift the dust sheets and see what lies beneath.

'It's back to Sevenoaks, Kent, now.

'Earlier I saw this unusual auction lot here.

'A single-storey brick building

'measuring 20 feet by 11 with no garden or parking.

'And, oh, yes, up until a few years ago, it was a public toilet.

'But an unusual lot can present unusual opportunities,

'which was exactly what local couple Angelo and his wife Maria thought

'when they bought the toilet block for 41,000.

'They own several hairdressing salons

'and have previously dabbled in development.

'They wanted to demolish this and build a three-storey one-bed house, all on this tiny patch.'

-So, you have got the vision, Angelo.

-Yeah.

If there's a building there, I know that you can replace it with another building,

albeit a few problems with the council,

but they want to enhance their areas

and if you approach them in that way,

that you'll make it a nicer place, then they're happy to allow it.

'If given the go-ahead,

'Angelo and Maria had a £70,000 budget,

'and a six-month timescale for the job.

'But it was three and a half years later when we returned.

'When we met up with Angelo, he had lost his beard!

'So, was the toilet block sporting as radical a change?'

# Don't you know I'm still standing

# Better than I ever did

# Looking like a true survivor

# Feeling like a little kid

# I'm still standing

# Yeah, yeah, yeah... #

'So the toilets are still here, but serving as a store room.

'But don't be fooled. Things have been happening behind the scenes.'

We applied for planning permission and it was fairly straightforward, really.

They didn't give us many problems

and we worked with them

and we negotiated everything and got it through.

'Planning may have been straightforward,

'but it did take a while to get the details right.

'Angelo has been working on other projects,

'so this didn't have his full attention.

'However, he and his friend Mark, who drew up the plans,

'spent quite a lot of time putting individual touches to the plans

'for the one-bedroom house.'

The house has been designed with a nice, quirky look about it.

The first floor will be clad in bronze

and there'll be two rooms on the ground, the first, and then a bedroom en suite on the top floor

with a nice big window overlooking the street scene.

'There was no outside space here so it had to stay in the original footprint.

'That meant the only way to create space was upwards.'

It's quite a spacious one-bedroom house.

We didn't want to hem it in and squeeze as many rooms as possible.

It's quite nice, light and airy, so it'll appeal to most people.

'As its location is on a busy road,

'in order to comply with planning regulations

'Angelo had to spend up to £1,500 on a noise and air pollution survey.

'So, added to his purchase price of £41,000,

'Angelo's outlay so far is £42,500. But then that was it,

'because the property with that all-important planning permission

'became a valuable asset.'

We sold it for just under £80,000 to a developer.

We've achieved as much as we wanted to achieve with it, and go as far as we wanted.

So now it's for the next person to put that lovely designed house in its setting, really.

'Wow! £80,000

'for a total investment of £42,500?

'Well, that's a pretty neat profit of 37,500 quid,

'without the headaches of the actual building process or the building costs.

'But the wheeling and dealing doesn't end there.'

We've incorporated into it that the new owners deliver all the building to us,

they dismantle it slowly and bring it back to us all cleaned up

so we can use that on another project.

Angelo's happy with what he's achieved here.

'And it's not just pounds and pence that matter.'

I think the house will fit in great in this part of Sevenoaks. I think it's a much-needed improvement.

The street scene will benefit from whatever is built there, the design that we put in,

and it'll be a great, great bonus for the town.

'All in all, Angelo seems pretty chuffed with this project.

'We asked two local property agents what they thought of the plot, the plans,

'and that price Angelo achieved.'

I had a look at the plans and an unusual proposition to start with, but an interesting one.

I'm not surprised planning has been granted because it's a good proposal

and a good location.

I think the plans would actually work very well.

A lovely one-bedroom contemporary house in a great location.

'With Sevenoaks only half an hour commute from Central London,

'will the new house be popular on the local property market?'

There is a very strong demand for one-bedroom homes in Sevenoaks, yes.

It's a great commuter area and I think it'll go very well.

Demand for one-bedroom houses here would be very high due to the location of the station.

The amount of commuters that go up to London, it probably would be a young professional worker.

'Angelo sold the site with planning permission and plans for £80,000.

'Did he get the best possible deal?'

This property with planning permission would be worth

around £100,000 to £120,000.

As a site with planning permission, I suspect you could get something in the region of £100,000.

Fantastic. It's nice to hear that that sort of value has been placed on it

after the work that was done there.

'So it sounds as though Angelo could perhaps have made more,

'but he seems content with the outcome.

'And why wouldn't he be? The new owner will have the task of building the house on this busy site

'with all the hassle and expense that brings.

'So will it be worth it? What could this one-bedroom house fetch?'

Depending on the finish, between £200,000 and £220,000.

A one-bedroom house here would sell for something in the region of £225,000.

Fantastic news. It's all on the plus side rather than the minus, so it's all a bonus, it's great.

'Angelo obviously doesn't regret not developing the site himself and realising a bigger profit.

'And while he may be scouring auction catalogues for his next purchase,

'it doesn't mean he hasn't got his hands full at the moment.'

We've opened another shop, we're hairdressers initially.

And we've bought some more projects. There's one going on in Cornwall at the moment.

A similar thing, a small building. And it's just business as usual.

'It's back to Carlisle in Cumbria now,

'where earlier we saw this 1930s three-bedroom semidetached

'that was in good condition and had some lovely character features.

'This was the sort of property that would normally be ripe for modernisation,

'but for antiques restorer Robert, who bought the house for £58,000,

'it was all a bit too modern for his taste.

'This was going to be his first ever home

'and he aimed to take it back in time to regain its original feel.

'He even had a 1930s-level budget of £1,000 for the changes, which he planned to do himself,

'that is, if he could find the time from his other activities.'

I am an active member of Botcherby Residents Action Group.

-I am also a councillor, a city and a county councillor...

-Wow!

-..for this ward.

-Right.

I also do campanology at Carlisle Cathedral.

-Bell-ringing?

-Mm.

-Wow!

'With his hectic lifestyle, it was just as well that

'the condition of this place was, well, sound as a bell.

'On top of that, he'd allocated himself a generous 12-month timescale.

'Zip forward 14 months, and we met up with Robert

'and his rescue dog, Sheba,

'to see if we were going back to the 1930s.'

# As good as new

# My love for you

# And keeping it that way is my intention

# As good as new

# And growing, too

# Yes, I think it's taking on a new dimension

# As good as new

# My love for you

# Just like it used to be and even better

# As good as new

# Thank God it's you

# Darling, we were always meant to stay together... #

'Robert has indeed managed to recreate a '30s theme.

'As you'd expect from a furniture restorer,

'he's painstakingly brought back to life the original wood,

'including those lovely cupboards and the floorboards.'

I'm pleased with it all. It's come really, really nice,

shows all the distinctive features of the wood, the grains,

the knots, the characters of the lines, everything.

It's absolutely beautiful and light and it's better.

I don't like painted wood.

It's not true to the features. It hides everything.

So I'm pleased with absolutely everything I've done there.

'It's clear that Robert has put a lot of work

'into stripping the wood back to its original warm tones.

'And no more obvious example of this is the beautifully-restored staircase.

'The three bedrooms show he hasn't spared the paint stripper or heat gun.

'But pride of place in the two main bedrooms

'goes to the lovingly-restored fireplaces.

'Again, down to Robert's hard graft.'

I'm pleased with the results because they've come up a lovely, lovely blacky-grey colour

and it enhances the place to what it used to be

when the fireplaces were there. And they're so beautiful to look at.

'Unfortunately, the gas fire has been condemned, but it still looks the part.

'And the bathroom? Well, the new suite does hark back

'to the glamorous 1930s, with the marble effect wall and the white bath.

'But the renovation isn't complete,

'as Robert still plans to finish off the kitchen in a 1930s style.

'Retaining its original look is a theme close to his heart.'

I've seen my aunty's house, my mother's house, my friends' houses,

they've all been like this, and I think it's a shame for the original features to be taken out.

And it's much more lovely from what you remember from being a child,

to when you grow up, to actually bring it back,

and actually bring a house like this in keeping,

rather than making it modern and losing the features

because then it loses everything,

and it's quite important to me, and it's quite unique in a way.

# I hope it isn't too late

# Searching for the time that has gone so fast

# The time that I thought would last

# My ever-present past... #

'Robert has made some very practical concessions to the present.

'He's got rid of the storage heaters and installed gas central heating,

'cavity wall insulation and roof insulation.

'Once he has created his ideal kitchen,

'he and Sheba will be ready to move in.'

Sheba is a family dog. We've had her for about three years now.

She's very humorous, she behaves herself.

She's absolutely lovely and I couldn't ask for a better companion while I've been doing all this work.

'Apart from putting in the central heating and new plumbing,

'Robert has done mostly everything to the house,

'from redecorating to installing the bathroom cladding.

'Friends have helped by pitching in and providing some of the furniture.

'And although he may have been after a traditional feel,

'did his 1930s-type budget cope with the 21st century?'

It went from £1,000 to £3,500, which I think is quite good.

Erm, most of the saving there I think is on me doing my own work,

and I'm pleased about that, so it's knocked the price down a little bit.

'Add that £3,500 to his purchase price of £58,000

'and Robert's total outlay is £61,500.

'Time to hear what two local estate agents think

'about Robert's first and possibly last ever renovation project.'

First impressions, the owner has done a great deal of decorative work.

He has stripped back walls and redecorated throughout.

He hasn't ultra-modernised the property, as a lot of developers do.

He's kept it in keeping with the style and age of the property.

The decision to bring back a lot of the period features

is an interesting idea

which, to the right buyer, might be exactly what they're looking for.

Some people do like the ultra-modern properties

and redevelopment, so that may appeal to more people.

But it is, generally, the work he has done is very good and to a good standard.

'Robert plans to live here,

'but should he decide to sell, what price might the house achieve?'

If the owner completed the works to the kitchen

and general external maintenance,

I would recommend an asking price more around £80,000.

We would be looking at offers in the region of £75,000.

'Those valuations mean that there's a possible pre-tax profit

'of between £13,500 and £18,500,

'minus the usual tax and expenses here.

'Now, they sound like up-to-date figures for Robert.'

Absolutely fabulous. It's a good investment.

Absolutely over the moon. It's money well spent.

'And the estate agents reckon that there's a potential rental income of £450 to £475 per calendar month,

'meaning an annual yield of around nine percent.

'Either way, Robert has done very well out of his investment.

'And while he may look to the past

'to create the atmosphere for his new home,

'he has no doubt about where his future lies.'

I think I wouldn't look back on purchasing the house,

it's a good buy, a good deal. Erm, I was born and bred here,

so I think I'll move into it,

bite the bullet and just enjoy living here.

Well, that's it for now. Join us next time for more Homes Under The Hammer.

-We'll see you then.

-Goodbye.

-Goodbye.