Episode 24 Homes Under the Hammer

Hello and welcome to the show.

Now, in the helter-skelter world of property, the market can go up

as well as down but don't let that scare you off taking the plunge.

Yes, it can be hard to predict when to buy and what to buy

but I know a place where you can start.

Yes, so why not buy your next property under the hammer?

Well, they say never judge a book by its cover

and it's also true in the world of property development.

Yeah, just because a property looks good at first glance,

it might not be a wise investment, so do your homework.

So, were today's buyers prepared? Here's what they bought.

In Staffordshire, there's a bungalow that leaves me sitting on the fence.

I've seen worse, I've seen better.

And on a trip to South London,

I too don't have a clear view on this property.

The foliage hanging over that front door

could do with a bit of a trim up, I think.

Whereas in West Brom, in the Midlands,

I know exactly how I feel about this house.

It's not a bad start at all.

I'm happy.

All these properties have been sold at auction.

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

when they went under the hammer.

You bought it, sir. Well done.

I'm in Trentham, which is between Stoke and Newcastle-under-Lyme.

It's probably best known for Trentham Gardens,

which, amongst other things, is where I learnt to swim.

This area is popular with families, professionals and the retired alike.

So, you might be in the market for this.

It is a two-bedroom detached bungalow

at a guide price of 120,000 quid.

Now, this is a really nice street in a nice area,

so that's got to be good news.

# That's good news

# Well, boy, that's good news. #

OK. So, a nice big entrance porch here

and then into the bungalow itself.

The first thing you notice is something going on with the floor

but we'll pause that thought for now

and just look at the actual layout of the property.

This is like the central area off which all the rooms spread.

A nice size too, so it gives us a nice open feel to the place.

One of the bedrooms there. It's a good size.

You've got your loo there and then another bedroom.

A nice size duel-aspect living room there with a fire in it.

You know, duel-aspect light from both ends, which is good.

And then straight forward, if you wanted to do that, into the kitchen.

A fairly classic layout

and it looks to me like it hasn't been really touched

since it was built probably in the 1960s or so.

I recognise some of these units from my childhood

and that little thing over there, that little knife sharpener.

Do you remember those? Brilliant.

But there's lots you could do here.

We're talking about replacing the boiler and tidying it all up.

But as bungalows go, I've seen worse, I've seen better.

With a property trapped in time like this one,

it is usually a rewire, replacing the central heating,

a new kitchen and refurbishing the bathroom

that will be needed.

Bungalows are now enormously popular

and not just with downsizers but also with families.

But a family might need a little more room.

At the back of the property, what are we looking for?

Well, potential amongst other things.

For an extension, perhaps permitted development

would allow you to go out a certain distance. That would be one choice.

It's obviously a bungalow, so you're not going to go very high,

so that all works.

It comes down to whether or not it would be worth it financially.

If you're going to buy this place to live in it,

that's a different set of equations.

But if you're doing it from a purely financial point of view,

talk to the local agents - would you get your money back?

I don't think it would detract from the garden cos actually

it's a fantastic bit of space. It goes all the way back there.

It obviously needs a bit of tender loving care at the moment

but a really nice space.

So, yeah, work to be done, but again, I think so worth it.

# I just need your tender love and care. #

So, back to the elephant in the room, so to speak, and the floor.

Now, you'll notice that throughout the bungalow

the parquet flooring tiles are actually coming up

and you could sort of glance at this and think,

well, maybe just the glue or whatever they use to stick it down

has failed over time. My concern is that it's something a bit more

sinister because, in certain parts of the country,

especially where there's a big history of mining, like around here,

there can be a much more serious issue.

And that's where they used the mine waste,

the stuff that they used to dig out the ground, which wasn't the coal,

to actually infill and use basically as foundations

in properties like this.

The problem is, over time, some of that waste has chemicals in it,

which cause the floor itself to start to chemically react.

That causes bubbling, it causes all sorts of problems.

That could be what's happening here.

You need to get a specialist in to check it out

and they'll drill holes and tell you what's actually under the floor.

The worst-case scenario is

it has got that problem,

in which case you have to dig out all the floors.

And you can just imagine how much that would add to your budget.

A sulphate test or red ash test

will reveal if this is the cause of the problem.

Parquet floors were often laid on nothing more than sand

or even earth back in the day,

so moisture can be an issue, as can the perishing of the bitumen used.

Let's find out if a local estate agent is floored by this bungalow.

First, does she think it'll be worth

adding an extension?

I don't think it would be worth extending

because you would be spending as much money as you would

when you come to sell the property

and you wouldn't really make a great profit by extending it.

So, like I said earlier,

worth extending if you want to live here

but not if you want to make a profit.

So, given this bungalow has a guide price of 120,000,

what could it sell for once refurbished?

After the work's being completed,

I would market this property at £190,000.

That leaves plenty of room for a full renovation

and a profit if you can get it for something like the guide price.

But the floor issue could change that totally.

Well, it's certainly an interesting opportunity.

It's a great bungalow but of course there is that potential problem

with the floor, so it all comes down to your attitude to risk.

How do you feel? Are you going to take this one or this one?

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

We now go to Trentham, Stoke-on-Trent

and it's a detached bungalow but it does need some refurbishment.

So, Lot 47, guiding is at 120.

Can I say 110 to start?

Thank you. £110,000.

To my right, then, at £110,000.

111, can I see now?

111.

112...

The bidding went back and forth between two pairs of bidders

and we rejoin the bidding at 136,000.

136?

136.

137 anywhere else?

If not, £136,000 for the first time...

£136,000 for the...

A half. 136 and a half.

137.

Another half? Yeah, 137 and a half.

138?

No? 137 and a half.

To my left, then, at 137,500, all done?

137,5 once, then.

137,5 twice.

Third and final time at...

Back in. 138.

No?

To my right, then, £138,000 for the first time.

£138,000 for the second time.

Third and final time, £138,000.

You bought it, sir, well done.

Wow! After a nail-biting battle,

the successful bidders were Luke and his father-in-law, Stephen.

They bought the bungalow for 138,000

and it's their first project with their redevelopment company,

which they formed on the very morning of the auction.

So, new business and new project.

I met Luke to find out more.

-Luke, great to see you.

-And you.

-Congratulations.

Tell me why you wanted to buy this bungalow?

Well, we've been looking for something to develop

for a bit of time and it seemed like a really good opportunity

because of the area it's in. It's quite a nice area.

We saw this come up and then we just thought

we'd go and have a little look at the auction and now we've got it.

Is this the sort of thing you've done before?

Not development. So, I am a joiner.

I've always wanted to do it cos it's something my father's always done

and it seems...seems like the perfect route for me to go down.

So, now we've taken the plunge and we're going for it.

Luke will be bringing his joinery skills to the partnership

and father-in-law, Stephen, will finance it.

Seems like a good match to me.

So, why this house as their first project?

Just because we obviously wanted something that we could do, sort of,

wholesale changes to it

as opposed to just come in and paint and decorate

cos it's going to need quite a bit of work.

It's just a nice opportunity

to really bring it back to something good again.

Let's focus on the floor before we talk about anything else.

What investigations have you done to determine whether or not...

Well, so we've got to get a red ash test done and if there is,

it'll be a case of break the concrete up that's down,

get that out, dig the red ash up and then hard core

and concrete screw the floor again on top of that.

Such a little thing but such a massive potential job.

I mean, if you have got that.

So let's talk about what you're going to do.

Talk me through the project plan.

I think we're going to put a conservatory on the back

just outside the doors there.

The layout itself is going to stay as it is.

We did look at extending but apparently the market in the area

is for two-beds,

so I think it'll just be a case of a full rewire,

all the plumbing as well cos all the pipes are on display,

so we'll get those in the wall.

A new bathroom, new kitchen, new windows.

There's going to be some work needed to be done on the roof

because some of the ladders have collapsed on the ends of the roof.

What kind of budget have you set aside for the work?

We're hoping to fall between 25 and 30.

I think 25 without having to dig everything up

and probably around 30,000 if we have to.

Only £5,000 to do all the digging out?

Yeah, just because I'll be doing it myself.

-It is just a slog, isn't it?

-It is! It's unfortunate.

I mean, there's some good kit out there

that helps you get it out of the house

but it will be a case of just get your head down and dig for a bit.

Luke will certainly have to dig deep

to find the strength to do that work if it comes to it.

He won't be doing all the work on his own, though,

as he will get in other trades for electric and gas.

How long will it take to get it all done?

Hopefully three to four months and obviously that also depends on...

-The floor.

-..how far we have to go with it.

But, yeah, hopefully four months we can turn it round

-and then get it on the market.

-And then on to the next one?

100%, yes. Well, we'll see how this one goes first

and then we'll take it from there but hopefully, yes.

Well, congratulations. Lovely to meet you.

-Good luck with it.

-Thank you.

-Look forward to seeing how you get on.

So, Luke has spotted the opportunity with this place

but is also aware of the potential problems.

He's not frightened of a bit of hard labour to sort them out.

How will he - and his back, more importantly - be when we return?

You can find out later in the show.

Well, this is Sydenham in south London,

a community which has been in existence since the 17th century.

Back then it was just a handful of cottages

with a few grazing animals,

but that all changed in 1640

with the discovery of natural springs

whose water was thought to contain healing properties.

London's elite flocked here to take the cure

and when the city's population expanded,

Sydenham became a fashionable and affluent place to live.

Back to the 21st century and it's a different Sydenham story

as despite a busy high street and three train stations to choose from,

properties here are significantly cheaper than nearby Dulwich

and next-door neighbour Forest Hill.

So, what do you get for the guide price of £195,000

along this lovely road?

Well, one of the most sought-after in the area, so I'm told.

It's a one-bedroom ground-floor flat in this Victorian property here.

Well, it looks so pretty from the front,

although the foliage hanging over that front door

could do with a bit of a trim up, I think.

With the elite long gone,

a lot of these properties have been turned into flats now

but I think they still retain a certain grandeur.

Well, there's a lot to talk about with this property,

so as soon as you walk in the door the first thing...

-SHE SNIFFS

-..that I can smell is damp.

So, there's the lounge. It's not a bad size.

You've got lovely stripped wooden floorboards,

which if you were to repaint them would look fantastic.

But I can really smell damp and that's bothering me.

So let's hope whoever does take this property on

does check that damp because it's quite pungent in here

and I'm not quite sure about the choice of colour scheme.

What would you call this? Mud brown.

Now, that's not a great colour

considering you've got a very long, narrow, windy corridor.

Now, in through this doorway and you've got the kitchen.

Now, what I love about this is the high ceilings,

so it feels a lot bigger than it actually is.

And again, you've got some wow colours -

bright orange over there, a sort of greeny colour on the door here.

You've got lots of nice light coming in through here

but the kitchen units are old, they need to be changed.

The flooring's a bit tatty and it looks as though...

there may have been a bit of a leak from one of the flats upstairs,

so that needs investigating.

But so far, not too bad.

So continuing down the long, windy corridor is the bathroom.

Now, I think it's a bit of a luxury to have a bathroom of this size.

I mean, gosh, there's plenty of room in there,

so I would say that's a bit of a waste.

Also, this area here is dead space.

Corridors, what can you use them for?

I suppose you could put a little bit of storage in here

but there's not a lot going on here.

And then you come straight the way through into one of the rooms

at the back of the whole of the property.

But here's my thought, why don't you cut the bathroom in half?

You could use all this space here.

You would have to take this wall down, this wall down

and you could open the whole area up

and you could use this as the kitchen, dining, relaxing space.

And the reason why it's the best room is because,

look, it looks out onto that.

Now, this flat has the sole use of that really lovely pretty garden.

I would probably change these windows, put some nice French doors,

so you do have, ultimately, a second room out there.

You've got your very own garden.

Then that means you could turn the kitchen into bedroom number two

and I really think it certainly is the way to go.

Another option for creating more living space lies below ground.

# Deeper and deeper and deeper and deeper... #

And if you had deeper pockets to dig into this large cellar,

well, it could be dry-lined and used as a studio

or even a third bedroom.

But don't forget that before you make any structural changes

to a leasehold flat like this,

you'll need permission from the freeholder.

Now, this will probably come at a cost,

which should be factored into your renovation budget.

And don't forget the freeholder can still withhold consent

if they don't feel the changes you're making are an improvement.

But what will a local estate agent think of the potential here?

Would creating an extra bedroom be worthwhile?

If this was my property, I would definitely convert the kitchen,

make that into a bedroom

and put an open-plan kitchen in the lounge area.

A complete refurbishment throughout.

Excellent. We are agreed on that rejig.

The current living room becomes bedroom one

and the kitchen becomes bedroom two.

However, swapping plumbing and drains doesn't come cheap.

This flat had a guide price of 195,000

and the agent thinks it would cost around £20,000

to create that second bedroom.

So, what could it make on the market?

If we were to put this property on the market

as a two-bedroom property, we would market in the region of

£350,000-£375,000.

For the letting side, we would market the property at £1,400

per calendar month.

So, if the layout was left as it is but the flat was fully renovated,

what would it be worth?

As a renovated one-bedroom property,

we would put this property on the market for £315,000-£325,000.

For lettings, we would market the property at £1,250

per calendar month.

Well, if you can get over the colour scheme in there,

you can see beyond those long, windy corridors and the damp smell,

well, I think this could be a really nice garden flat.

And with the potential of creating that second bedroom too,

well, there could be money to be made.

Who agreed? Let's head to auction and find out.

Moving down to Lot 177, one-bedroom flat.

Invite your bids.

200 anywhere?

190?

190 straightaway.

195 anywhere?

That guide price of 195,000 came and went

and the bids continued to climb.

We rejoin the bidding at 296,000.

296, sir.

297?

297. 298.

Come on, 300 might be his limit. 298?

298. 299?

299. 300?

300. 301?

It was 300, his limit. No, 301. Sorry.

302? Well bid.

So 301 at the back of the room.

Anyone else here for this lot?

Selling lot 117 for 301,000.

301 for the first.

301 for the second.

301 for the third and final time.

Sold.

With that successful bid of 301,000

Andy and Laura secured a flat on the best street in the area.

But was paying more than £100,000 over the guide price

a bit of a stretch for this local couple?

I met them back at the property to find out more.

Laura and Andrew, congratulations.

This really is a lovely road, isn't it?

-Yeah, it is.

-It's beautiful, yeah.

-It's really nice and peaceful.

Who was it who spotted this flat and why do you guys want to buy it?

Well, I've been looking for a few months now.

We've got some news, we've got a baby on the way

so we're pretty keen to buy somewhere before the new arrival.

Congratulations, guys, I can see that.

Laura, how many months are you?

About six and a half, so...nearly seven.

Yeah, it feels like it's moving quite quickly now.

So you've taken on quite a lot before the imminent arrival

of the baby. What were you thinking, guys?!

We've got a deadline. You know, need a bit of pressure

-to get things done.

-Exactly!

-Yeah, we like to be busy, I suppose.

-So you've bought this for investment purposes?

-Yes.

Yeah. Well, we were kind of thinking we might move into it but...

-Yeah, we'll see how it goes.

-..keeping our options open as well.

So you're going to see how well it turns out

-as to whether or not you do decide to move in?

-Yeah.

So, Laura, what are your thoughts on the whole idea of this?

Yeah, I was really pleased actually with it

cos I didn't see it before Andy...well, we bought it...

Hold on a minute, you've spent nearly 300 grand on this flat...

-That's right, yeah.

-..and you didn't even see it?

-And you're having a baby together?

-Yeah, I know.

-What?

That's trust, isn't it?

That's love!

# Crazy little thing called love... #

Now, seriously, when I was six and a half months pregnant,

all I wanted to do was put my feet up.

This sounds a little bit stressful and uncertain for my liking.

Possibly move in or rent in the short term,

renovate in the longer term, whatever the longer term is.

How quickly do you intend to sort of want to put this back on the market?

-Er...

-Considering you're having a baby soon!

-Yeah.

I said to Andy I wanted to, you know...

He can buy it if he does everything within three months

cos I'm obviously due in three months.

(What were you thinking?)

-Did you tell her that you could do that?!

-Realistically,

-it's not going to happen.

-I thought it's an option. A quick win option.

Well, he's going to have to be quick

but thankfully they have a team of builders

that they know they can trust and Andy will be project managing. Phew!

So you've spent £301,000. What budget have you got?

How much more can you add to this?

Well, it's tricky. It depends what we actually do.

If we do a quick fix, you know,

just a new kitchen and a new bathroom

probably 7,000 at a guesstimate.

But, I mean, if we do anything more major, obviously...

..well, I don't know, to be honest.

20, 30,000, which we don't actually have at the moment, so...

Assuming that they did have that money,

I wonder how they see the spaces being re-jigged

to create the second bedroom?

There's a few ways we think we might be able to do that.

Possibly building out into the side return.

Possibly moving the wall back

between the kitchen and the living room.

Or possibly converting the cellar.

So let me ask you this question.

If you just end up spending £7,000 on this

and you just give it a bit of a face-lift,

do you intend to make a profit still from this property?

-Probably not if we sold it straightaway...

-Oh, no.

..but I don't think we'd intend to do that

without doing the extra work to make it a two-bedroom place.

So, what, would you rent it out immediately?

-Yes, that would be the intention, wouldn't it?

-Yeah, definitely.

Do it up, rent it out and then when we have...

things have calmed down, I suppose, and have more money

then we'd definitely turn it into a two-bed.

It's just the time constraint, isn't it? And, I mean...

I like the way he keeps looking at your tummy, Laura!

-I know. It's all my fault.

-LUCY LAUGHS

-Good luck with the baby!

-Yeah, thanks. Little Harry, hopefully.

-You've already named him?

-Yeah.

-Harry on Homes Under The Hammer.

-Yeah.

-Well, I'm so excited.

-Guys, it's been lovely to meet you...

-You too.

-..and good luck

and it's going to be really interesting to see the outcome.

-Thank you.

-Andrew, well done.

-Thanks.

Well, I think it's fair to say that Andrew and Laura

have got quite a lot on their plate at the moment -

a flat to renovate and their first baby on the way.

But I really do hope they make this into a two-bed flat

as that really is where the money lies.

How will they get on? And will we return to see baby Harry?

I hope so. Join me later in the programme and you can find out.

Coming up in West Brom,

is there more to this property than meets the eye?

Whoever gets hold of this house, a bit of a bonus.

And we return to south London,

where it seems life is full of unexpected delights.

-Gosh...

-Yeah, surprised by that.

Yeah, that's good, very good.

But first, we return to the Trentham area

just outside Stoke-on-Trent and Newcastle-under-Lyme.

And it was here that we first caught sight

of that increasingly rare beastie - a two-bedroom bungalow.

And this property should definitely have been on the endangered list

with signs of neglect inside and out

and a floor that would challenge the most ardent jigsaw enthusiast.

Now, you'll notice that throughout the bungalow

the parquet flooring tiles are actually coming up.

And you could sort of glance at this and think,

well, maybe just the glue or whatever they use to stick it down

has failed over time.

My concern is that it's something a bit more sinister.

# I'm falling to pieces, yeah

# I'm falling to pieces. #

Yes, this potentially showed signs that red ash was used

during the construction and if that was the case

then all the floors might have needed to be dug up,

making what was already a pretty comprehensive renovation

a whole lot bigger.

So, it all comes down to your attitude to risk.

How do you feel? Are you going to take this one? Or this one?

There was undoubtedly an element of gamble here

and the people prepared to take a chance on the bungalow

were first-time developers Luke and his father-in-law, Stephen.

They bought the bungalow for £138,000

and Luke came to tell me more.

# I saw something in you. #

Is this the sort of thing you've done before?

Not development. So, I am a joiner.

I've always wanted to do it,

so now we've taken the plunge and we're going for it.

And with Luke's joinery skills,

he was earmarked to do the bulk of the renovation work.

While father-in-law, Stephen, kept an eye on the proposed

£25-£30,000 budget and their three to four month timescale.

Well, seven months later we're back.

So, has Luke managed to piece the bungalow back together again?

Well, it's no longer lurking in the long grass

and its curb appeal has gone up a notch or two

with new windows and a newly tarmacked driveway.

And inside...

In the kitchen, we've had a bit of a layout change

cos there were some brick cupboards, so we've removed those.

Wow! What an elegant space.

In terms of the bathroom, that was ripped out.

We've put in a shower, all re-tiled, new toilet, basin.

To go alongside that crisp, contemporary kitchen and bathroom,

the two bedrooms are looking fab...

..and the lounge space has been extended.

We've also put a conservatory on the back.

Well, I think the conservatory is a great addition.

It brings in so much more light into the lounge

and gives great access to the garden.

The biggest challenge was probably the garden,

having not been touched, either the front or the rear garden,

for near on six years, we believe.

Yes, this became a massive project in itself

with years of neglect to sort out, but just look at it now.

This uncovered garden really is great.

It's a mixture of low-maintenance,

yet with the more mature shrubs and trees,

it has some well-established features.

There is even a greenhouse for the keen gardener.

So, all in all, everything's looking fantastic

in both the garden and the bungalow.

But what about that floor?

How big a job was that?

We had a company out to do a red ash test

and that, fortunately for us, came back that we didn't need to take

any action. That the red ash wasn't there or a problem,

so that was quite a large cost that we managed to avoid.

Phew! That is a relief.

Mind you, they might not have found red ash under the parquet tiles

but there was something lurking in the cupboards.

There was a couple of rats' nests and things in the wardrobe,

so it's...

-I hope they've gone now, have they?

-HE LAUGHS

We decided to get rid of those rather than leave them

for a potential buyer.

# I smell a rat

# I smell a rat. #

Well, I'm glad to hear that, Luke.

But those unwelcome visitors often make nests with shredded materials

like loft installation.

You might not have seen them on the viewing,

as they are active between dusk and dawn

but look out for droppings or rub marks on the skirtings

along their favourite routes. Eugh!

But with rodents repelled and the renovation done,

what does Stephen think of Luke's love?

The actual project itself has been a labour of love to Luke

and in terms of what he's delivered here, we are absolutely delighted.

I haven't told him that up until today so, yes.

I may have been the taskmaster

but I am actually thrilled with what he's achieved.

# You make me so very happy... #

And so he should be.

But because Luke had other work commitments,

the renovation has taken seven months.

Nearly twice as long to complete as they hoped.

And how about their budget? How has that fared?

25 to 30,000 was our initial budget and I think classically,

if you double those figures, you're not normally very wrong

and I don't think we were very far off doubling our 25,000

to achieve what we've actually got today.

So currently their spend stands around the £50,000 mark.

And with their £138,000 purchase price,

Stephen and Luke will have invested £188,000

into their first property venture.

So, is it money well spent?

What do two local estate agents think?

The development has been done particularly well.

It's been done to exacting standards throughout and I think

they've picked up on the really good features of the property

and I'm sure they're going to have great success.

Really good standard of refurbishment.

The way the guys have done it, it's fantastic.

Really high spec.

Really nice curb appeal, really good.

I think the conservatory has been a particularly good addition

to the property. It works well being off the lounge

and I think, for the kind of person that's going to buy it,

they're particularly going to enjoy sitting in there

and looking out over what is a fantastic garden.

Yes, they've done a great job here but having invested £188,000

into the bungalow, Stephen and Luke are hoping for a quick resale.

I think resale price on the market currently

would stand anywhere between 230 to 235,000.

I think this property, in the current standard,

I feel it would achieve £230,000.

-I think that stacks up for us, doesn't it?

-Absolutely.

Providing it's the 235 and not the 230.

Well, with either the £230,000 value

we would see a pre-tax profit of £42,000.

That's not bad. And the agents also said rental values

between £700 and £800 per calendar month could be possible,

which would generate a reasonable yield just below 5%.

So does the success of this project

mean there are more joint ventures planned?

We looked at another one this morning, so there we go.

Let's hope that we can find one and deliver the same type of package.

Today, I'm in the West Midlands town of West Bromwich,

an area I know reasonably well from playing for Aston Villa.

The local derbies against West Brom were fiercely contested

and it was a difficult place to get a victory.

Let's hope this visit unearths a winning property.

# You win some, you lose some. #

I'm in the home of The Baggies,

just five minutes away from the centre of West Brom,

where you've got all the shops and restaurants you could wish for.

I've got a school across the road,

I've got Sandwell Hospital less than ten minutes' drive away

and all the local amenities you could want,

which adds up to a great location for the property I'm here to see.

It's got three bedrooms and a guide price of in between 59 and £64,000.

Let's have a look.

OK, we are into a decent-sized hallway here.

You've got your stairs going up to the bedrooms.

First room here, which is the front room, is a good-sized room.

A really nice big double-glazed window letting lots of light in

and central heating in there as well, which is great.

And you've also got central heating here in the hallway.

A little bit of storage space underneath the stairs as well.

Through into a kitchen-diner.

And you know I like a kitchen-diner. Lots of space here.

These units look OK. They're a bit tired.

You could keep them.

I'd possibly prefer to take all this out

and put a nice spick-and-span brand-new kitchen in here,

really set it off.

But it's not a bad start at all.

I'm happy.

And the happiness continues upstairs,

where there are two decent-sized double bedrooms

and a smaller single.

The family bathroom is perfectly adequate

but if you had room and it's in your budget,

you might want to think about replacing this with a modern style.

So, outside in the back garden and look at the size of this space.

It is a bit overgrown. It's not in the best of conditions,

you can see the fence has fallen down there as well.

But if you spent a bit of time out here and got this grass cut down

you'd have a really nice, smart back garden.

Now, I've just been doing a bit of detective work.

Now, this might look like a brand-new house

but if you have a look down there at those paving slabs...

..they are obviously a lot older than what this house looks

and let me show this as well.

You've got an outside toilet

and I don't know many new houses that have got an outside toilet

and paving slabs that look like that.

So these two are a lot older than this brick,

which leads me to believe that this single-brick skin

has been put onto a solid wall to create a cavity

and a bit of insulation.

So whoever gets hold of this house, bit of a bonus.

I've actually ran out of good things to say about this place,

so it's time to hear from a local property expert.

And while he's investigating,

I'm going to bounce a few ideas off the neighbours.

# Be young, be foolish but be happy

# Do, do, do, do, do-do

# Be young, be foolish but be happy. #

I think the property could benefit from having a new kitchen suite

and a new bathroom put in. Also, perhaps,

splitting the dining room and the kitchen to two separate rooms

and maybe even extending outwards cos the garden is quite large.

How much would the new owner have to spend to get this place

back up to scratch?

I think the property probably needs about £10,000 to £15,000

spending on it with a new kitchen suite, a new bathroom

and some carpets and paintwork throughout.

And how much would he expect this house to be worth

once it's been renovated?

I expect the property to reach a sale value of around £125,000.

I can't see an awful lot wrong with this house.

There's not a lot to be done at all.

Central heating's there, double glazing's in.

It's up to you how much you want to do.

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

This next lot is a three-bedroomed, Freehold semidetached house

we're offering with vacant possession.

At £70,000, am I bid?

At 70 and what a buy this will be, sir, and thank you.

At 70,000 I'm bid.

At 70,000 I'm bid. It's at 80 now.

At 70,000 I'm bid...

That optimistic request from the auctioneer

was met with stony silence from the public

and it took quite a few minutes for the price to climb

to a much more respectable £90,000

and that's where we rejoin the bidding.

It's yours, sir. At £90,000 are we all done?

One, two, three...

Whoo, 91.

92? No?

So, you leave it ever so late.

There's a 50-50 chance you're going to lose it.

At 91,000, are we all done?

Do you want 92?

91,500. 92, sir?

Yes? No?

Does no mean no, sir?

At 91,500.

92. 92,500?

No?

At 92,000 on the aisle, then.

Are we all done?

92,500. 93?

93.

93,5?

No? I think you mean it this time, don't you, sir?

At 93,000, are we all done?

One, two, three... 309 gets it.

£93,000.

That successful and final bid of £93,000

for the West Bromwich semi was made by Benito,

who originally hails from Italy.

Ben, as he's known, has had a few different careers

but since retiring,

has concentrated on building up his company's portfolio,

which just goes to show...

# It's never too late

# Oh-oo-oo

# It's never too late. #

-Ben, nice to meet you.

-And you, sir.

-Congratulations.

-Thank you.

Why did you choose this house?

I felt it was a good build, good building,

it's safe and requiring very little make-up.

So is this the kind of place that you look for?

Yes, mostly. I look for places that have space...

..facilities and can be developed comfortably

if it needs to,

for giving the tenants, be it if it's going to be rented out,

a good accommodation, so they can live a normal life.

OK, so that was my next question.

Do you buy to rent or do you buy to sell mostly?

-I do both.

-OK.

Sometimes I buy modern one, do one up, resell it,

keep one for a business portfolio.

So what did you do before you got into the property world?

I did many different jobs.

I was, first of all, a mechanic, if you like,

and I worked for a car manufacturer.

I trained in Italy and came to this country at a very tender age.

And then I worked as a toolmaker

in a company in Bromsborough.

OK, so, what was it about property that you like?

I had, at the same time, been buying properties

and renovating even though I had a job.

This was more like a hobby, but it gradually

developed into a substantial business

which is now taking all my time.

What are you going to do, with all that knowledge you've got,

to this place?

I think the bathroom is one most important area

where I think it needs to be totally redone.

The kitchen is another area which also needs a

considerable amount of work done.

And possibly some work done in a small single bedroom.

Then, generally, all it needs will be repainted,

decorating and tidying up and new flooring.

And that would be ready then for either renting or reselling.

OK, so you've not made your mind up which way you want to go yet?

At this moment in time, no.

It may remain within the portfolio of the company or else it may

be sold if something else comes along which is as attractive

-or more attractive.

-OK.

So what is your budget for the work that you've just mentioned?

I'm thinking about £10,000. No more.

That's quite a healthy budget

because there isn't an awful lot that needs doing.

You'll need to do the work in a proper manner which is safe

and which is quality.

And to decorate as well. I think £10,000 is a good cover.

Have you got people that work for you? Have you got builders?

I usually use sub contractors and I meddle in between.

-Oh, so you get involved yourself?

-I'm hands on. Yes.

So what do you do, Ben? What do you do?

I may just do a bit of wiping of walls or a window or something

but I do, do meddle.

Is that because you can be on site and keep an eye on everybody?

Exactly, yes, I see that the work is done and it's done right.

OK, so you've got a £10,000 budget.

How long is the work going to take?

-Once they start, no longer than a month.

-OK.

So far, Ben gets top marks from me.

I like the fact that he's got high standards as well.

But even with his experience at buying at auction,

Ben was caught out by a £7,000 sales fee that he missed,

because he didn't read the legal pack.

The reason the legal pack wasn't read,

-it's because I didn't go to the auction to buy.

-OK.

I went as support for a friend,

and ended up buying, whilst he didn't.

-It was an instinct thing then, was it?

-Yes, exactly.

The instinct told me this is a good property. Take it.

Well, listen, you've covered everything. I think you'll do well.

Yes, when I went to the auction and I read about it on the details,

that pretty well told me that it was a good buy.

The only unfortunate part, I did not see those...

-The legal pack, exactly.

-The little hidden costs.

-I should tell you off for that now.

-Exactly. I allow you that.

And I honestly feel a little...

Embarrassed.

-..embarrassed about it.

-No need to be, sir.

You're the professional, you know what you're doing.

-Well, I hope so, thank you very much.

-Good luck.

-Wish you all the best.

-Thank you.

What a lovely man Ben is and he's got loads of experience.

He has given himself a ten grand budget.

I think he'll get it done no problem and within that four-week timescale.

But you can find out how he gets on later in the programme.

So now we've seen what happened to one of those properties.

What about the other two?

Yeah, did they stick to their plans or did it all go wrong?

Let's go back and find out.

It was in Sydenham, south-east London

where we first came across a one-bed ground-floor flat.

But although it was in one of the best streets in the area,

the flat itself was, at that stage,

a less than desirable place to live.

With a muddley layout and signs of damp,

it really needed some love and care.

Step forward Andy and Laura,

who bought the flat at auction for £301,000.

Now, Andy is a design engineer while Laura is an office manager

and photographer.

And they both had a great incentive to get the

renovation work done ASAP.

We've got a baby on the way

so we were pretty keen to buy somewhere before the new arrival.

-So you've bought this for investment purposes?

-Yes, yes.

Yeah. Well, we were kind of thinking we might move in to it but...

-Yeah, we'll see how it goes.

-We'll keep our options open as well.

So you're going to see how well it turns out as to whether or not

you do decide to move in.

# Cos I will wait

# I will wait for you

# And I will wait

# I will wait for you... #

With no firm decision, their budget was equally undetermined.

£7,000 if they go for a refurbishment and 20 to 30

if they turn one bedroom into two.

Andy was going to project manage,

but it looked like we would have to wait on a final decision.

# And I will wait

# I will wait for you... #

And now, seven months later,

we're back to see how everything has worked out for them.

Externally, not much has changed,

but this was a leasehold flat, so that's hardly surprising.

But inside, they've been able to really make their mark.

By removing the corridor wall,

they've managed to turn the lounge into a super kitchen-diner.

And with the kitchen moved,

they've created that all-important second bedroom in the flat.

Well, it's all looking good so far.

But what about the most important addition?

Baby Harry came along in November

which was a delight for both of us.

Andy took a month off work to be with us

and then from then, he's really been working really hard on the flat.

And that hard work seems to be paying off.

Certainly judging by the finish with the bathroom

which has been completely transformed.

So this place is almost ready to move into.

But is it going to be a new baby in a new home?

Well, we've decided to move in, actually, yeah.

It makes more sense for us

to rent the place that we're living in at the moment and, yeah,

move in here and it will be great to have the little garden at the back.

Where we are at the moment,

we don't have a garden so that's a real treat to have that,

nice and tidy for us and for Harry to play in in the summer.

Well, that's great news and I can see why they want to move in here.

They've done a fabulous job so far,

and although the garden still needs some tidying up, and they

haven't completely resolved the damp issues, and the cellar is, well,

still a cellar, these are issues that

they can sort out in their own time.

# What makes a flower grow... #

Andy was here pretty much most of the time.

Every weekend and most evenings after work,

I really pretty much just offered my opinion when it was needed

and helped do a little bit of cleaning.

And that was probably about it, really.

Otherwise, I was just looking after Harry.

# Too busy thinking about my baby

# I ain't got time for nothing else... #

Yes, I can see Laura had her hands full.

And in addition to the arrival of baby Harry,

negotiations with the freeholder delayed things

and pushed their timescales back.

But how much did all the work cost in the end?

It ended up being about 14,000.

So I think, originally, I was thinking a bit grander.

Grander plans such as building out into the side,

so that's why it's been a lot cheaper.

So £14,000 spent on top of their

£301,000 purchase price

takes Andy and Laura's total spend to £315,000.

I think they've got themselves a really good flat for that.

But what do two local estate agents think?

Well, having just seen the property for the first time,

I must say, I do like it very much.

They've fitted the kitchens very well

and the bathroom looks very, very nice, very contemporary.

They've used some nice materials, like oak-wood work surfaces

and nice tiles. They've done a good job.

There's been an amazing change inside. Complete renovation.

Really letting in some good light into the property.

Nice and airy space and a beautiful landscape garden as well.

The standard of finish is exceptional.

I see a lot of properties with a standard of finish

and it's not so much the materials they use,

it's the little bits, when you look at the finer bits where

they've sealed things and they've grouted and stuff like that,

where you see how badly they've done it.

Here they've done that all very clean and very neat and very tidy.

Yes, a professional standard to the finish makes all

the difference and, of course, Andy, Laura,

and baby Harry will be living in it for a while.

But how much could they make from their £315,000 investment

if they changed their minds and sold on?

Looking at the property in the current sales market,

I believe the property will achieve around the £450,000 mark.

In the sales market, this property would go on the market anywhere

between £425,000 and £450,000.

-Gosh.

-Yeah. I'm surprised by that.

-That's good, very good.

Gosh indeed.

Those values could see a healthy pre-tax profit

of between 110,000 to 135,000.

That's not a bad potential return on your first family home.

The agents also reckoned rental values between 1,400 to 1,500

per calendar month should be possible,

which would generate a yield of over 5%.

Well, it certainly has been a big few months for the couple.

So what's next?

-Have a holiday and spend a bit of time together.

-Yeah.

Yeah, more family time, we've been promised.

So, looking forward to that.

It was in the West Midlands and the West Brom area,

a familiar stomping ground for me, where I first saw this

three-bed semi that showed lots of promise but needed a makeover

and a bit of a tidy up.

It was bought at auction by Benito for £93,000.

Since retiring from work as a car mechanic and toolmaker,

it's houses that he's been fixing up.

And there was just something about this house that appealed to the

property developer in him.

-I didn't go to the auction to buy.

-OK.

I went as support for a friend,

and ended up buying, whilst he didn't.

-It was an instinct thing then, was it?

-Yes, exactly.

The instinct told me this is a good property. Take it.

# Cos there's a

# Feeling I got

# Love you a lot... #

His instinct also told him

that it needed about ten grands' worth of work.

And just one month to turn it around and get it

back either on the resale or rental market.

Nearly four months later, and we're back to find out

if his feelings were right about this house.

At the front, the wall's been removed

and off-street parking has been created.

With parking restrictions in the road, that's definitely a good idea.

What about inside?

Well, that front lounge is smarter, with new decor and carpets...

..while the open-plan kitchen-diner has been given the Benito treatment.

The kitchen has been totally renovated, as you can see.

That is all new lights, a breakfast bar. It's nice, spacious,

and it's not crammed in any way.

However, here we've still got a good dining area

and I think this makes a lovely place.

I liked this room before, but Benito has definitely given it

an extra lift and brought it more up-to-date.

And what about the rooms upstairs?

All three bedrooms are clean and ready to go.

While the bathroom, well,

that's had a full refurbishment

with new suite, tiling, carpeting, the lot.

It's all looking great, I must say.

But why has it taken four months instead of one?

Yeah, I had a company take over the contract.

But, unfortunately, their finished work was not really very, very good.

So I have spent the last three weeks going over what

they had actually done for me.

Yes, Benito ended up repainting walls,

repositioning the toilet, tidying up trim edges,

relevelling the driveway and

generally carrying out whatever was on that snagging list.

# I've got to do it myself

# Don't want to die a man alone

# I don't need any kind of help

# Life's too short to waste it No-no-no, no-no-no... #

And if that wasn't enough, he also tackled the garden.

And I looked at the garden and decided first and foremost

that it needed rotavating, digging out and sorting out.

That there was years of neglect and rubbish buried in it.

In doing the paving in the front,

there were some leftover slabs and some pavers which I utilised

in making a patio in the back of the house or a barbecue place.

So a little bit of clever recycling has created

a practical patio space.

Surely that has helped him keep control of that ten grand budget.

I think I've gone over the top by, possibly, about £800 or £900.

That's about it.

Ben bought this house for £93,000,

but he did get caught out with an unexpected cost in the form

of sellers' fees which brought his entire purchase cost to £100,000.

Add on his £10,800 renovation costs,

and it's a total spend of £110,800.

So was this an inspired purchase?

What did two local estate agents think?

I think the standard of finish

is very good.

It's been done to a very high standard throughout.

You know, very nice kitchen, very nice bathroom and they're the

two most expensive rooms for anyone to renovate when they buy a home.

It's a nice family home.

It's been well done up to a nice

standard, it's got three bedrooms,

nice accommodation downstairs,

lovely big kitchen with a dining area.

And a nice garden at the back

which would suit, ideally, for family living.

I think the decision to add a driveway is a really sensible one,

especially with the location.

Obviously, it's quite close to a school so that can mean that

parking on the road might be a little difficult.

But with what the owner of the property has done,

it's created space for at least two vehicles on the front

which I think is a really good idea.

Ben hasn't made up his mind whether to rent or sell.

Maybe the figures will help.

If the property is put up for sale, then I would envisage it

achieving a figure somewhere between

£115,000 and £120,000.

However, if the current owner decides to rent it out,

then I would imagine that the figure would be somewhere

between £575 and £600 per calendar month.

I think on the resale market

you'd be looking at somewhere between £120,000 and £125,000.

On the rental market, you'd be looking at,

per calendar month, somewhere between £600 and £625.

That's a possible rental yield of around the 7% mark or

a pre-tax profit of between £4,200 and £14,200.

So, rent or sell, what's it to be?

I think 130 would have swayed my decision.

120, 125, maybe not.

It might be added to my portfolio.

Well, it seems that this is destined to be another one to add

to his growing property collection.

So has he now collected enough properties that he can retire?

No, I'm only 77, I don't think I shall retire for a while yet.

# Young at heart

# You're so young at heart

# You're so young at heart... #

Well, the auction stories don't stop there.

Yeah, we've got plenty more up our sleeves

so make sure you join us next time.

Yeah, so see you then, for more Homes Under The Hammer.

-ALL:

-Goodbye.