Episode 37 Homes Under the Hammer

Hello and welcome to the show.

Now, investing in property can be a nerve-racking affair,

especially if you haven't done it before.

Yes, but if you do your research and get the right advice,

things might not seem as intimidating.

Yes, and one place you could find your next project is

at your local auction house.

You never know, you may buy your next home under the hammer.

Auctions can give you so many choices

it's easy to get overwhelmed.

Yes, the trick is to stay focused, make a plan

and don't deviate from it.

Mm-hm. And what choices did our buyers make? Let's find out.

It's top floor day today.

In Greenock, Scotland, I see an attic flat

that takes my breath away.

Boy, that did take it out of me.

Yes, Lucy, it can be tough at the top.

But this top floor flat in East Dulwich, south London,

left me floored.

The first thing I notice...

THUD

I need to be brought back down to Earth in this three storey house

in Sutton-in-Ashfield, Nottinghamshire.

I'm going to tackle the stairs again and get to the third floor. Phew!

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.

Sold, 300,000.

Sitting on the banks of the River Clyde,

Greenock has long been associated with shipping,

and the sight of the town shores

would have welcomed many a sailor as they headed for Glasgow,

which sits just 30 miles further up the river.

Greenock boasts James Watt,

inventor of the steam engine, as one of its most famous sons.

So it's a town that claims more than a little fame

in its industrial past.

Just a ten-minute walk from one of Greenock's main railway stations

and I find myself on this rather attractive residential street

of beautiful old tenement buildings.

Now, the property I'm here to see is a two-bed period flat and

it had a guide price of ?35,000-?40,000.

And it's right here. Well, actually, it's right the way up here.

Oh! Better get a move on.

The flat is way up in the attic, so bear with me.

Now, the communal close, as it's called in Scotland,

has some lovely features and looks reasonably well kept.

But outside, the attic windows have been facing the elements.

This is going to need a painter with a head for heights

who is also very fit.

There are eight flats in the block

and there is a shared garden to the back.

Boy, that did take it out of me.

You've got to be pretty fit to get up all those stairs,

and this flat is right at the top.

That's quite a lot of stairs to climb.

So I'm thinking the elderly, parents, prams,

this is going to be a difficult flat.

It's not going to be for everybody.

But what a surprise when you come in, because it's fantastic.

Look at the ceiling height. This amazing hallway.

So what have we got?

Bathroom there. Really nice sitting room.

You can see we're obviously on the top floor

because there's eaves everywhere.

It's got a certain amount of character.

Bedroom through there, potentially. What's this?

It's like a saloon bar kitchen.

You expect a cowboy to walk out of there. Bit disappointing in here.

Come and have a look, because there's no window

so it's almost been slotted between the two rooms.

Great size but you couldn't actually get a table in here.

I know how I like to live and that's chatting and cooking to my guests.

I think originally this would have been the kitchen.

Bit of a telltale sign. Maybe a cooker was there.

You could...

THUD

Yes, you could get rid of that.

I know I love knocking walls down. That's a partition.

That could come out.

You could have your sofa along here. Nice big table along there.

Your flatscreen on the back wall.

So you could still have a sort of kitchen living area.

Or of course you could convert one of the other rooms over there

to a dining room, but this flat has got so much potential.

What a great view. It's amazing.

# I can see for miles and miles I can see for miles and miles... #

That's one big benefit of being up so high.

Whichever rooms you use, there are two decent-size bedrooms,

which is fantastic.

Although if you get rid of these built in wardrobes...

SHE LAUGHS

Look at all this space.

It is huge in there.

Now, we are in a big attic, so forget the amazing views

because what it means is you are going to be the first person

to get damage if there's a problem with the roof.

So I think it's worth checking that out

and making sure you know who is responsible for fixing it.

Now, there's some evidence of water damage, which does make me wary.

But, that aside, there's space by the bucket-load

and some real character.

It does need modernising. The windows need replacing,

as do the kitchen and the bathroom.

That's if you can convince anyone to carry the materials

up all those stairs.

Fortunately, a valiant estate agent agreed to make the climb

and give us his thoughts.

This property specifically sits

within the more desirable West End of Greenock,

which is where people tend to look towards buying.

Equally it's still very close to the town centre

and the local shopping and college facilities.

First impression of the flat

is for an attic it's of a good size,

which isn't always the case.

So that shows great potential.

I think it's got room for improvement

and in the long-term could prove to be a good long-term investment.

Well, the flat is guided at an affordable sounding 30 to 40 grand.

So what kind of returns could you get on that sort of investment?

Done up to a high standard, we'd be looking to market this property at

offers over 80,000, looking to achieve between ?80,000 and ?85,000.

There is strong rental demand for properties such...like this

in the area, and we would expect a rental to be achieved

of ?425-?450 per calendar month.

It would be fantastic to see more original features

put back into this period flat.

But with the opportunity to get a quick turnaround

in a good rental market, that could make all the difference

in deciding what to do here.

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

Start me off...40. 35? Let's have a bid.

30? Any bid? 30? Anybody at 30? 25?

Let's get it started.

25 here. At 25 I'm bid, now.

In once. At 25 I'm bid. At ?25,000 then.

OK, then, at ?25,000 for the first time. Are you sure?

At 25 for the second time. At 25. 26, new bidder. 27.

Can you at 27? 28.

28 I've got. 29. Can you at 29?

29 I'm bid. 30, sir.

30 I'm bid. One?

Ooh! Only cos you started it.

30 and a half. One? And a half?

32. 32 and a half.

This was quite a ding dong battle between two determined bidders.

We rejoin at 47,500.

With you, sir, against you at ?47,500.

Are you all out? Are you all down? Back in at 48. 48 and a half.

You don't like me.

LAUGHTER

48 and half. 49. Half?

49 and a half I'm bid. And 50? Out at 50. With you at ?49,500.

First time at 49 and a half. Second time at 49 and a half.

Third and final time.

Selling away with you, against you, all done, all out.

HAMMER THUDS

Well done, sir.

Phew!

Well, it was 26-year-old Gary who made the successful bid of ?49,500.

He works for a local social housing agency

and plans to renovate the flat to become his home.

Mum Dorothy, who already owns some other properties,

has come to lend a hand.

Gary and Dorothy, congratulations.

Now, is there a bit of a story

related to you guys buying this flat?

Well, yes, I've been watching the property for about three years now.

For three years, you've been stalking the property, really.

More or less, yeah. And you wanted to buy it three years ago?

Well, actually, when I started house-hunting,

this was the very first property that I seen.

So you did come in and look inside?

I did come in and have a look inside. Wow.

First came in, I thought, "Whoo!"

Being that it was my very first property. Yeah.

And I was already imagining where I would have my furniture and

what sort of decor I would have.

But Mater, who was with me at the time,

suggested that I keep an open view

and see what else is on the market.

OK, so did you then go on to buy anything? No.

Three years ago, it was on the market for ?69,995.

Which at the time I thought was not bad

because I already was looking at it like a fixer-upper,

in my naive way.

So what put you off, Gary?

I did have concerns with the roof

as there was patches of mould on the ceilings,

which led me to believe there might be more structural damage.

OK, so, Dorothy, were you quite pleased three years ago

your son didn't actually buy this flat?

Yes, because of the difficulties we thought we perceived,

the dampness, et cetera, we thought,

"Let's look, there might be better for your money."

You know, for ?49,500, you've done really well here.

It's a great property, but it still has those little damp patches.

Now, what do you think about that, Dorothy?

Are they still the same damp patches that you viewed three years ago

or have they got worse? They are exactly the same.

So that's good news.

The wonderful thing is we have a friend who's a builder

who also has a flat downstairs, who looks after the roof.

So we know the roof's sound. So we were quite happy to hear that.

Talk about good fortune - a friend who is a builder,

who has a flat in the building, who looks after the roof. Yes.

Not having major repairs will make a huge difference to Gary's budget.

However, in Scotland there are no leasehold properties

but tenements like this often have

a management system called factoring.

The factor looks after the communal areas and divides up the cost.

This means that if work was carried out

to repair the roof as a communal repair,

Gary would only need to find his portion of the cost,

which would be divided evenly

amongst all the properties in the block.

Great news if major repairs are required.

And what sort of budget have you got in mind for the work here?

About ?5,000, plus whatever generous donations

I perhaps receive in the meantime. Oh, he's leaning your way!

So five grand for all the work.

I take it you're not going to be

ripping everything out and starting again?

Well, I'd be taking it back to the four walls, really.

Getting rid of the wallpaper and carpets and...

You're limited by how much the windows are going to cost.

That's true. The windows themselves are double glazed

but the fascia round about them has rotted. Yes.

And if you've seen from the outside, it needs attention.

I need to talk about the kitchen. So there we have it.

You've got all these wonderful rooms with views

and then the kitchen hasn't got a view, it hasn't got a window.

It's slotted in the middle of two rooms. Is that ideal?

Are you going to live that way?

I would, yes, cos the kitchen is where I would predominantly

just wander in for a cold beer and a toastie.

My culinary skills are so limited

that spending any amount of time in the kitchen

is just not going to be an issue for me.

Did I see Mum nod in agreement there?

He's not going to be cooking or knocking that wall down?

However, he is going to be tackling that walk-in wardrobe.

I'll take the cupboard away in the second bedroom.

That way I could have more space for, say, another double bed.

You see, I love that cupboard.

In London, that would be considered another room.

HE LAUGHS That's one large cupboard. Hm.

So how long is it going to take you to get this flat looking tiptop?

Hopefully I could get it done within six months.

So, Dorothy, he clearly is not in a hurry

to be leaving home right now.

And we are.

SHE LAUGHS

He's number two to go. Yippee!

So we'll perhaps make it into six weeks.

We might hasten the process a bit.

LUCY LAUGHS

Guys, it's been lovely meeting you today.

I'm so excited to see what you do here.

And I hope it doesn't take you six months. Gary, good luck. Thank you.

Dorothy, lovely to meet you. You too.

Gary has finally bagged his first home after stalking it for years.

But I still think it's worth opening up that kitchen.

But with a little help from his family,

I am sure he will turn this into the home he first dreamt of

all those years ago.

You can find out what happens later on in the programme.

This is East Dulwich in London,

an area sandwiched between Dulwich Village and Peckham.

East Dulwich is a classic south-east London suburb,

built to house workers in Victorian times,

and it is an extremely popular place to live,

which is reflected in house prices, as you might expect.

To give you an example,

recently, a house that was just ten feet wide

was put up for sale with a price of ?800,000.

Well, let's hope the property I'm here to see

is slightly bigger and slightly cheaper.

# As long as the price is right

# If you've got no bread you're as good as dead... #

One thing you can't buy in East Dulwich is

a ride on the Tube, as there is no station here.

But there is East Dulwich mainline station

which is under two miles away.

There are also plenty of local attractions

to keep you entertained,

including Lordship Lane,

the birthplace of children's author Enid Blyton.

But on with today's story,

which is entitled One Goes Property Hunting.

I'm here to see a one-bedroomed flat,

not built into one of these Victorian houses

but actually a new build.

That's not necessarily a bad thing.

The guide price, ?180,000. Yeah, looks pretty good from the outside.

I say new build, but it's really a 1980s block.

Looking to the future,

this top floor flat has 95 years left on the lease,

which is good news.

So, nicely maintained communal area, which is good.

Definitely a good sign.

Now, it is only a one-bedroom flat

so it's not going to be massive, is it?

So let's see what we actually do have. First thing I notice...

THUDDING

..really nice solid floor. A big issue with flats is noise

and modern flats have to have significant soundproofing

as part of the building regulations.

But older flats can be noisy.

The good news on this one is it looks like it's made of concrete,

so it's not going to cause too much of a problem.

Bathroom, well that's going to be where the flat certainly

hasn't been really renovated much since it was built

probably 20 or so years ago,

so you need to spend some money on that.

That's your bedroom. It's OK.

It's a decent-sized double, but that is it.

Then the other rooms.

Here, a living room area here, with a decent-sized window and

this is your kitchen. That is it in a nutshell.

The kitchen, pretty much like the bathroom,

hasn't been replaced since the place was built

so you're going to have to spend a bit of money on that.

But I think you could bring this place to life,

and, in terms of location, views out the window, overall feel,

yes, I like it.

And that's about it. Well, rather, that is it.

A new kitchen and bathroom,

those would be my main priorities to do

as they date back to when the block was built.

# Nothing ever change

# Oh, no Nothing ever change... #

But I would do one other thing.

One other job you might want to consider

is replacing the existing single-glazed windows

with double glazing.

However, whilst you can do the majority of the renovations

in the flat without asking anyone's permission,

the moment you step towards the exterior of the building,

and the windows definitely form part of that,

you're going to have to get the approval,

probably of the freeholder of the building,

but also of the management company,

cos I guess their job is to make sure

that people don't put different kinds of windows in to the building

and it all looks like a bit of a mishmash.

So, yes, do it,

but you're probably going to have to get some approval first.

And speaking of the management company,

there is a very hefty charge of ?1,300 a year for this flat,

so that is worth bearing in mind.

Now, time to get the approval of a local property expert.

What are his thoughts on this flat

guided at ?180,000 plus?

My first thoughts looking at the flat -

it's in very, very good condition actually.

Other than needing maybe a new bathroom suite and

a quick tidy up in the kitchen, but the kitchen isn't even that bad,

it's great.

You put a bit of carpet in and you could rock and roll straight away.

What sort of standard of finish would suit this flat?

East Dulwich is an area that does have very, very good prices,

and is very, very popular. However, it depends on the property.

If it's a period-style property then you would go high-end on it

cos that's what people really, really like.

However, this being purpose-built, I'd go sort of middle range,

because it won't be able to carry possibly the price

that they'd want if they went high-end.

Once it's been done up to a reasonable standard

I believe the rental you'd ask for

is 1,250 per month to 1,350 per calendar month.

Once the property has been done up, for its resale I would say ?350,000.

Well, it's not the biggest of flats but it's in good condition,

the block itself is nicely looked after, and it's in a good location

and not too much work to get it really sparkling.

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

This is lot 164. Who'd like to give me a start on this?

230 anywhere?

230.

Should be cheap enough. 230? Right, 200 then, to try and help.

Thank you.

200 I've got. We'll go upwards from there for lot 164.

Well, things are a little slow to start

but soon a phone bidder

and several bidders in the room are involved.

We rejoin the bidding at ?254,000.

254, new competition. 256. 258, sir.

258. 260 on the phone. 260. 262.

262, yes or no?

262, yes or no?

262. 264 on the phone. No?

It's with the gentleman standing up at the back, on my right.

The bid's ?262,000.

It's against the phone. Anybody else. 264. 266. Yes or no?

If not, 264 for the first... 266, yeah? 268?

If not, 266 for the first, 266 for the second,

266 for the third and final time.

268. 270? 270? Yes or no?

270, yeah? Brilliant. 272? No? Go through it again.

270 for the first, 270 for the second, 270 for the third...

Is there something wrong with your hand?

270 for the third and final time

for the man with the funny hand.

HAMMER THUDS

Sold. 270. Well done.

The man desperate to seal the deal at 270,000

was a buyer we've met before,

Justin, who's seen here on the left.

# Remember me...

# I'm the one who had you, baby... #

Back in 2015, the one he had was a Peckham mid-terrace

with then business partner Andy.

Well, Justin's now amicably split with Andy

and has a new silent partner.

So, new property, new partner, what's the plan?

Justin, good to meet you. Good to meet you.

Congratulations. Thank you very much.

Tell them why you wanted to buy this flat.

Because it's a top floor flat, great location,

doesn't need much work, we got it for a great price.

And is this what you do? Are you property developers?

We are, yeah, full-time. So, is this a buy-to-sell-on, or what?

Flip over, yeah, three weeks, in and out, back on the market. Oh, wow.

Yeah. And you paid 2... 70. ..70 for it, were you happy with that? Very.

Yes. Very? Were you willing to go a lot more? No, not really. Oh. But...

275 was my limit. OK.

And then 280, if there was just me and one other person left,

but I'm happy with that, yeah.

How much is it you'd be able to flip it on for?

375 to 395. Really? So, 100 grand profit? Yeah.

I assume you not going to spend very much,

cos not very much needs to be done. No, not really, about 9,000.

Why doesn't everybody do this, do you think?

Cos you're going to make ?100,000 in a few weeks, theoretically.

Theoretically.

You've got to have the money to back it up,

you've got to have money to go to auction,

you've got to know what you're doing

and it's luck of the draw, really. They don't always come up.

This was a particularly good buy, so we're very happy with it

and you never know what the market's going to do,

so you've got to be in and out quickly.

It's not for everybody,

you can get your fingers burnt if you don't know what you're doing,

but I've been doing this a long time now,

so for us it's a good way to earn money.

# I could make a good living, make a good living

# Make a good living at that... #

Justin has made a good living

and has been in this game for over 20 years now,

so I have every confidence that he'll make his ?100,000 profit,

but what will he need to do

to bring this not bad flat up to his standard?

New kitchen, new bathroom,

wooden flooring throughout the lounge, hall and kitchen,

plush carpet in the bedroom, I think people like carpet,

rip out the current central heating system, replace it with a combi,

take out the header tank and cylinder

and replace that with a walk-in shower. Oh, nice.

Yeah, so you have a bath and a shower,

redo the bathroom completely - nice grey minimal -

new lighting

and lick of paint. Right.

Presumably not bright white, something else?

No, probably a very light grey,

something a bit more contemporary. OK. Something like that.

And the kitchen, what kind of style are you going for in the kitchen?

Glossed white with nice contemporary tiles, dishwasher,

washing machine integrated,

integrated fridge-freezer, extractor. Right.

So, you are doing quite a lot. I mean, you are completely,

you know, contemporising, if that's a word, the place.

We are going to give it a... Take from the '80s into the 2000s.

# I'm against the '80s

# Oh, yeah, '80s... #

Well, Justin will certainly be putting that nine grand budget

to good use, and in a timescale of 3 and a half weeks,

he'll roll the flat forward by three decades.

There is a bit of an issue with

some mortgage companies don't like properties

that have just been bought and sold, do they?

Ones that have been flipped. What's your experience of that?

They do, cos they come and say,

"Well, why was it sold for 270 three months ago

"and why is it on the market now for 375, 395?"

There's three or four companies that do that,

but in general I think it's down to the buyer

and down to the mortgage broker to get it sorted out,

but for us, we just...

we take it with a pinch of salt, really.

Right, cos you're buying with cash, so it's not an issue. Wow.

So, it would appear you're quite lucky when it comes to property.

It's not luck. Isn't it?

It's a lot of hard work, a lot of late nights,

a lot of travelling to properties.

We view probably about 100 properties every month

when the auctions are going on,

and we probably shortlist five or ten,

bid on three and win one or two.

So we are sort of small developers, really,

but we're very particular about what we buy.

Right, so it's not luck, it's about research and hard work. It's not.

It's hard work and research,

a lot of man hours and this is just the result of that.

Yeah, and they're not all presumably quite as easy as this one.

This is a gem, and this is the prettiest one we've ever had,

so, yeah, we'll count our lucky stars.

Well, congratulations, good luck with it.

Look forward to seeing how you get on.

Thank you very much.

So, it seems Justin has found a bit of a gem in this little flat,

but, as he points out, it is down to hard work and research.

How will he get on? And will he get those increases in the value?

You can find out later in the show.

Still to come,

I can't believe my eyes at this house in Sutton-in-Ashfield.

And you've...

Have a look at that.

And we'll go back to South London

to see how Justin and his new business partner have got on.

It's the first time he's done it

and he was pretty worn out, if I'm honest with you.

Back to Scotland and Greenock,

where I had to crane my neck up to see this top floor tenement flat.

It had some lovely big rooms and nice period features.

I was a bit worried about the roof

due to some suspicious-looking damp patches,

but it was the layout that got my attention.

It wasn't entirely to my liking.

An internal kitchen had been created

with no natural lighting

and it just felt a little bit claustrophobic,

but you know what my solution

always is in these circumstances, don't you?

All together now... KNOCK ON WALL

Yep, you could get rid of that.

I know I love knocking walls down.

That's a partition.

That could come out.

You could have your sofa along here, nice big table along there

so you could still have a sort of kitchen-living area

or, of course, you could convert one of the other rooms over there

to a dining room, but this flat has got so much potential.

But what a great view, it's amazing.

# I can see for miles and miles... #

Someone who could also see the potential here was Gary

and his mum Dorothy.

Gary paid ?49,500 for this flat to live in,

and I was hoping he would take my advice in regards to the kitchen.

There we have it.

You've got all these wonderful rooms with views,

and then the kitchen hasn't got a view, it hasn't got a window.

It's slotted in the middle of two rooms. Is that ideal?

Are you going to live that way?

I would, yes, cos the kitchen is where I would predominantly

just wander in for a cold beer and a toastie.

My culinary skills are so limited

that spending any amount of the time in the kitchen

is just not going to be an issue for me.

Well, let's see if we'll be toasting to a successful new home.

Gary thought the work would take him six months

but Mum was more keen

for him to fly the nest just that bit sooner.

We're back to see if Gary has made this flat a place he can call home.

It may still be internal but, for Gary,

this sleek, modern kitchen is sure to be toast-making heaven.

It's even got a bit more space

as the cupboard in the living room next door has been removed.

So not only does it add space in the living room

but the wall in the kitchen now extends out more,

giving plenty of room for that fridge freezer.

In the second bedroom, that huge walk-in wardrobe has gone

and, like the rest of the flat, has been sympathetically decorated.

Finally, we have the bathroom.

Let's have Gary explain what's happened here.

Well, in the bathroom, we've removed everything that was originally here,

save the bathroom suite,

but managed to restore the original bathroom suite

with a bit of cleaning.

And we've installed new Wetwall on the left-hand side wall

and the ceiling, and I think it's turned out pretty good.

I agree but it hasn't turned around very quickly, has it, Gary?

Unfortunately, it's taken rather a bit more

than my six-month deadline.

It has taken two years and eight months.

Lucky Gary has plenty of skilled friends in the trades

but had to wait for them to be free to do the work at mates' rates.

He didn't leave all the graft to them, though.

I done much of the manual labour myself,

so the stripping of the paint and the wallpaper and so on.

In my naivety, I tried to take it on all at once

rather than concentrating on a single room

which, I think, going forward, if I was to do this again

is what I would do.

It's been weathering at points

watching the progress be so slow

but when you actually get to see it in its finished state,

you see all the work you've put into it and it's rewarding.

Well, it must feel great now the work is all done.

But has his wallet felt the strain of all this work?

I had originally said that my budget on the day would be ?5,000.

Unfortunately, I have exceeded that.

I spent approximately ?6,850,

give or take a tin of paint here and there.

I would have been within budget

but when it came to laying the floorings, which was the last step,

I wanted to splash out because it was a flat for me.

And mum Dorothy must be delighted that Gary has his own place.

But when is the big move?

As soon as this filming is finished, I shall be moving in.

Well, before Gary turfs us lot out,

it's time to get two local estate agents along

to see what they think of the flat.

My first impressions of the flat are that it's been

very well presented.

The property's been modernised with new kitchen and bathroom,

good quality floor coverings and fresh decor

which I think would appeal to a younger market.

Many people are against having an attic flat.

There's nothing wrong with them and if the slates have been treated...

In this case the roof has been retiled

so there's less likelihood of any water damage or any penetration.

This could be described as a good attic flat

with one or two minor repairs to the exterior.

And that should be done before

the property is put on the market for sale.

Gary obviously isn't selling it at the moment

but let's see if his total ?56,350,

give or take a few tins of paint spent, have been worth it.

Present value would be in the region of ?75,000-76,000.

I would expect a home report valuation in the region of ?75,000.

However, our experience is that we may have to

negotiate down slightly from that price,

perhaps as low as ?70,000, to achieve the sale.

Well, that's a grand improvement over ?49,500.

That's... It's actually quite validating that

that's the value they would give it after all my work I've put in.

That's pretty good. That's pretty good.

Not that I would ever sell, of course. This is my flat.

But good to know. I felt good. I feel good in the property.

It's been a weathering experience.

Maturing experience, a sobering experience.

But pleasurable overall.

Sutton-in-Ashfield, Nottinghamshire

once relied heavily on the coal and textile industries.

It did suffer a downturn in fortune once these industries left.

However, it's back on the up now

and the brand-new town centre is evidence of that.

It's also home to the biggest sundial in Europe,

so you'll always know the time.

That's as long as it's not raining.

As I walk down this street,

you'll notice I've got two different styles of terraced house.

The property I'm here to see is this.

It's three storeys, three bedrooms

and it has a guide price of ?55,000 plus.

Let's see what you get for your money.

Right.

We are straight into the front room, lounge area,

in a nice shade of chocolate textured wallpaper and...

a dated '80s sort of fireplace here,

all brickwork and I can see why they've done it.

They're hiding their gas meter and electric meter.

This isn't a bad size lounge at all. Relatively high ceiling, nice.

Lots of light coming in as well and we've got central heating.

Good start. So far I'm happy.

So into the kitchen area, which is huge by the way.

I would imagine this wasn't always the kitchen

as I can see a gas fire just there

and a very large chimney breast as well.

But it looks like you could possibly resurrect this kitchen.

Looks in OK condition. You've got lots of space.

Underneath here I would imagine is for the white goods.

You know what? While I'm down here,

I'm just going to have a look outside.

So out into the back garden and it is small,

wasn't expecting anything bigger than this,

but quite easily maintainable.

Get it all chopped down, get the grass cut down

and you have a nice little back garden area.

And you've... Have a look at that for me, would you?

Only two storeys at the back. I'm slightly confused.

I'm going to go check it out, see what's going on.

This is very odd.

I know maths wasn't my strongest subject at school,

but I can definitely count to three.

Come on, give us a hand.

# Just close your eyes and count to three

# One, two, three. #

You're seeing what I am seeing, right?

It's definitely a three-storey house.

So, I'm right, my eyes weren't deceiving me.

At the front of the house there's three windows,

which says there's three floors,

and at the back of the house there's only two windows,

that says it's only got two floors.

I've got to investigate this a little bit further. Excuse me.

# Going to start looking up

# Cos it doesn't add up... #

OK, the ground floor.

# No, It doesn't add up

# No, it doesn't add up... #

First floor.

# And I'm smart enough to stop making believe. #

OK.

I'm at the top of the house.

So there's a ground floor, a first floor and a second floor. Right.

So that's three floors to this house.

I thought I was going a little bit crazy then, but I'm not. Right.

We've got a really big bedroom up here, lots of floor space,

lots of scope.

You could quite easily put an en-suite up here

anywhere you wanted, it's that big,

and this would be your master bedroom.

Lots of choice up here, I like it. It's huge.

I'm going to tackle the stairs again and get to the first floor. Phew!

So it seems that the third floor is an extension in the attic,

but only to the front of the house, which is what had me confused.

So, on the first floor, we have got the bathroom,

the family bathroom,

which I'd like to say you could resurrect something, but you can't

and you wouldn't want to, judging from what I can see,

so a brand-new bathroom is what you need.

Back bedroom here, with fitted wardrobes as well.

Across the landing, you've got another really big bedroom, here.

Nice high ceilings.

A bit of storage as well, so, yes,

if you could give this house a little bit of TLC,

I think you could really create a lovely family home.

The potential is endless.

Let's see if a local estate agent

can also see the potential

of this rather unusual three-storey property.

My thoughts with this property, I probably wouldn't change the layout.

It's a good size three bedroom property,

but a lot of the work is relatively cosmetic now.

The kitchen needs finishing, perhaps updating the bathroom,

redecoration and new floor coverings.

Sounds pretty straightforward,

so what could the values be on this house guided at ?55,000?

In good condition, I could see this property now renting

for ?500 per calendar month. On the sales market,

I think this property would now be achieving in the region of ?70,000.

This house is a bit of a box of tricks.

You've got three levels at the front and two levels at the back.

I've never seen that before,

so let's see who was willing to take this property to the next level

when it went under the hammer.

A flush-fronted mid-terraced house with three-floor accommodation.

Who's got ?45,000 for it?

A problem with our camera

meant that we missed the start of the auction,

but I can tell you Stephen was the successful bidder,

getting the house for ?48,500.

That's an amazing six-and-a-half grand under the guide.

Self-employed builder Stephen is from Buckinghamshire,

but he's familiar with the Nottingham area

because his daughter Natalie went to university there.

I met him back at the house to find out his plans.

Stephen, nice to meet you. Nice to meet you. Congratulations.

Thank you very much. So, Stephen, this is a bit of a strange house.

There's three floors at the front and two floors at the back. I know.

I can't explain it, because you look around,

opposite us it's normal height with a dormer window in the roof,

but this one they decided to take up to three floors. It's odd.

So whether it was built originally like that, I don't know.

I was hoping you, as a builder, could explain to me...

I don't think it was built like that originally,

because the chimney does stop in the third bedroom on the top floor,

so I think it was added on at a later date.

So you were happy with the price you got it for? Absolutely.

12% under the guide. That's not bad and you save yourself a few quid.

Absolutely, yes. I was just so lucky.

That goes straight into the budget, obviously. It will do, so that money

will definitely go towards the budget. Fantastic.

So you've done your research in the area?

I definitely did all my research,

made sure that I knew what I was getting myself into.

So what are you going to do with it now you've got it?

Well, general layout is pretty well going to be the same.

The kitchen is going to have a few alterations.

The chimney breasts are going to come out.

Also, down the end of the kitchen,

there's quite a lot of glass in that area.

The backdoor is going to be moved

and we're going to put a cloakroom downstairs. OK.

So where are you moving the door to?

So it's coming to where the window is next to it,

so there's only going to be one window at the end for the cloaks

and a door that comes in, then into the kitchen.

I think I might look at the stairway going up to the top bedroom,

probably put in better stairs. It's quite steep there.

It's pretty steep. Steep and narrow. I only just made it up.

But I got up there in the end to have a look and it's...

You've got a really big... It's huge. ..size room up there.

Have you considered maybe sticking an en-suite, making it a master?

I have considered that and it will or won't happen.

I can't make up my mind. I prevaricate a lot.

If like me you had to look up that word, let me help you out.

You learn something new every day.

Stephen is a very well-spoken builder,

but he doesn't mind getting stuck into a bit of hard graft.

I'll be doing a lot of building work,

I've got an electrician lined up for his work,

I've got a gas engineer to sort the boiler out and everything.

Apart from that, I think I'll be doing it myself.

So you'll be a busy man? I'll be busy. What about a timescale?

Right. It's going to be three to four months.

I've got a three-week holiday in Italy next month,

which I always take, so time is not great for me, but hey-ho.

Oh, well, a little prevarication there maybe?

Listen to me!

He doesn't know whether to sell or rent.

He'd rather sell if he could, but he's still undecided.

Stephen has a budget of 15 to 16 grand, which is pretty healthy.

He's got to rewire, replace the bathroom and kitchen,

and he's looking for a high standard of finish.

I want to put A-rated windows in

and I want to make this as energy efficient as possible,

because it's got to last another 30, 40 years.

So, Stephen, is this your first venture?

It is as an investment on my own back, yes. How does it feel?

It's got to be quite exciting. It is. It's, you know, it's quite...

It's a very good feeling actually, yes.

I can get on and do it how I want to do it.

I'm in control, really.

And it's quite a sizeable property to take on for a first one.

It's all in the mind.

It's all in my mind at the moment! So, it doesn't faze you... No.

..with you being a builder. No.

I would imagine you've done bigger than this or worked on...

Yes, I've worked on hotels in London and places like that,

so, hey, it is what it is and you treat each room as it is.

Stephen, I wish you all the best.

I'm pretty sure you'll get it right. I will do. Good luck.

Thank you.

For Stephen's first project, I think this is a very shrewd buy.

One thing he has done and I would always,

always recommend you do is your research.

Big question is, will he sell it or will he rent it?

Judging by what he was saying, he's looking to sell it,

but he's already saved himself six-and-a-half grand,

so he's on to a winner whatever happens.

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

So, sticking to your budgets and your timescales

must be one of the hardest things in property development. Yes,

even a simple project that should just take a couple of weeks

and cost a few hundred quid can easily spiral out of control.

Have our two remaining buyers been able to stay out of trouble,

stick to their budgets and deadlines?

Let's find out.

We're taking a trip back to East Dulwich in south London

where I saw a small but perfectly formed one-bedroom flat

in need of a bit of modernising.

By the look of things,

the bathroom hadn't changed since this block was built in the 1980s.

So you need to spend some money on that. That's your bedroom.

It's OK. It's a decent-sized double, but that is it

and then the other rooms here -

a living room area here with a decent-sized window

and this is your kitchen.

That is it in a nutshell.

The kitchen, pretty much like the bathroom,

hasn't been replaced since the place was built,

so you're going to have to spend a bit of money on that.

Yeah, I like it.

Someone else who liked it was seasoned property developer Justin

and, for this property, he had a new silent partner.

They paid ?270,000 for it at auction,

so I was keen to hear what the new partnership would do with this flat.

So is this a buy-to-sell-on, or what?

Flip-over, yeah. Three weeks, in and out, back on the market. Oh, wow.

How much do you think you'd be able to flip it on for? 375 to 395.

Really, so 100 grand profit? Why doesn't everybody do this?

Cos you're going to make ?100,000 in a few weeks, theoretically.

You never know what the market'll do

so you need to be in and out quickly.

You can get your fingers burnt if you don't know what you're doing.

Yeah, and they're not all presumably quite as easy as this one?

No, this is a gem, this is the prettiest one we've ever had!

Well, we're back, five weeks later.

Let's see if they've managed to shine this little gem up a bit.

# Ruby, Ruby, Ruby, Ruby

# Do ya, do ya, do ya, do ya

# Know what you're doing, doing to me? #

It's CRYSTAL clear that removing the old tank and putting in

a walk-in shower here was the way to go.

Before, the kitchen was rough around the edges

but now it sparkles

and includes soft-close glossy units.

The old doors were removed, but the glass panels stay.

They keep the room separate

but still flow into the wood-floored living space.

Justin hasn't done all this on his own.

He has a team of friends who helped him do the work,

and of course there was his new silent partner.

He couldn't have possibly got his hands dirty, right?

He has actually been pretty hands-on,

but it's the first time he's done it

and he was pretty worn out, if I'm honest.

But he did really well, in all fairness,

because he comes from a restaurant background,

so to come from restaurant to construction was a bit of a shock -

early-morning starts and late finishes -

but he did really well and I appreciate his help.

Good to hear he got involved,

especially as this was his first time.

They have done a great job of getting this flat finished

to such a high standard

but, even for an experienced developer like Justin,

it can't have all gone smoothly.

The main issue with the development in my opinion

was when we pulled out the hot-water cylinder

and drained down the system.

It had the old 8mm microbore copper piping,

which is notoriously bad for blocking up,

and there was no labelling on any of the pipeworks,

so we had to put it all under pressure

and make sure there were no leaks.

Cos it's a concrete floor,

had we just piped it up without checking,

we could have found there were leaks

and it could have leaked into the neighbours' below

or saturated our concrete slab and ruined our flat,

and it takes months to dry out.

So I put it under pressure for about a week,

managed to find out which pipes went where,

after a bit of head scratching and jiggery-pokery,

and then I power-flushed it all, got rid of all the sludge and silt,

and it actually worked out really fine.

Just modified them,

put some reducing fittings on to bring them from 8mm to 15mm

and then back onto 15mm normal pipework,

and it's been absolutely fine now.

Justin has a degree in construction management

and is a qualified gas engineer,

so he has made a thorough job of the plumbing here.

There's been a lot of attention to detail,

so what impact has that had on his demanding three-week schedule?

So we've come in at five, possibly five and a half weeks,

which, to be honest with you,

on a flat, you know, of this quality, is acceptable.

With an estimated budget of ?9,000,

was the final spend acceptable as well?

We've spent ?9,738.

It does help dramatically...

When you look at the actual overall costs, what we spent,

it would have been probably three times

if you'd have paid anybody else to do it.

In this market, to get the money you want,

you have to have that extra attention to detail

and have that super finish, which people appreciate as well.

Will two local estate agents have a keen eye

and appreciate the finish here? Well, it's time to find out.

Let's hear what the agent who saw it last time has to say now.

Well, having looked round the flat,

I must say there's an immense change.

Even if the flat looked OK when you first came round,

now you see it, the transformation is amazing.

And it's a totally different flat.

The standard of finish is very, very good.

I see a lot of properties and it's little things is what you notice.

It's absolutely brilliant, the finish on everything is great.

Having looked around the flat,

I think the flat has been designed really well.

It's not too cheap. You know,

it's aiming for a younger market and it should attract a lot of interest.

The question is,

will that interest translate into Justin's projected profit

of around ?100,000 on their ?280,000 investment?

If I was selling the property now, I believe it would achieve ?375,000.

I think this flat would sell for between ?370,000 and ?380,000.

I think they're pretty much in the ballpark.

We're going to put it on for offers in excess of 375,

to hope to achieve 385-390, possibly a bit more.

I think they're there or thereabouts,

so we'll see what the market says.

So, with a potential profit

of at least ?100,000 in just over a month,

it does bring me back to my original question -

why doesn't everyone just do this?!

It's not for everybody, it's not as easy as it looks,

and there's a high monetary risk involved in it.

So if you're of weak constitution

and you don't like working under pressure,

don't do it, stick to what you're good at.

But if you've got a gambling nature and you've got some kind of skill,

you're practical and you're pragmatic,

that is important, and you can take the highs and the lows,

have a go, but definitely do your due diligence first,

because mistakes can be made and they're very costly,

because once the hammer goes down you own that property.

Wise words, but, now this property's finished

it must be time for Justin to have a well-deserved break?

Yeah, I've got some relaxing and a little bit of a break coming up.

I'm going to learn to fly, hopefully, and to paramotor,

and then go and do some parachute jumps

with some friends of mine, erm,

and just carry on with the property developing

and go and see the family, and just generally have some fun.

It's about time we headed back to Sutton-in-Ashfield,

where I saw this three-bed house over three storeys.

Or was it...two storeys?

No, that's right, I checked, it was three.

That unusual loft extension to the front

meant there was loads of space and lots of options.

I thought an en-suite would be ideal, while on the first floor

the current bathroom was definitely in need of an upgrade.

Across the landing you've got... another really big bedroom here,

nice high ceilings. Bit of storage as well.

So, yes, if you could give this house a little bit of TLC

I think you could really create a lovely family home.

Potential is endless.

Someone who also saw the potential was self-employed builder Stephen.

This was the first renovation he'd taken on for himself.

He was in two minds whether to rent or sell.

He was also in two minds about something else.

Think I might look at the stairway up to the top bedroom and

probably put in a better...stairs. Yeah. Steep and narrow.

I only just made it up.

But I got up there in the end to have a look, and it's a...

You've got a really big-sized room up there. Yeah, it's huge.

Have you considered sticking in an en-suite, making it the master?

I have considered that and it's... It will or it won't happen.

I can't make up my mind. I prevaricate a lot.

Stephen may not be very firm in making his mind up

but a year later, he's finally finished the work.

# You've got to speed it up and then you've got to slow it down

# And soon you will find that there comes a time

# For making your mind up

# You've got to turn it up and then you've got to put it out

# You've got to be sure that it's something

# Everybody's gonna talk about

# Before you decide that the time's arrived

# You're making your mind up... #

Stephen has done a really nice job here

and downstairs is also bang up-to-date.

The light decor in the living room makes it feel so much brighter.

It flows very nicely on to the best part, the kitchen.

# And try to look as if you don't care less

# But if you want to see some more

# And then you can show that you think you know

# You're making your mind up... #

Stephen has even added a downstairs loo.

OK, if you remember,

we had the kitchen going right down to the window at the bottom here.

We've put a cloakroom in, which has...gone in pretty well.

I think it goes in pretty well with this layout.

We've put the kitchen a bit further in to the dining/kitchen area.

With the dining area and kitchen working together,

I think as a family unit it works really well.

It is a good space but I can't help thinking

how much bigger it could have been

if Stephen had taken out that chimney breast as planned.

Making big decisions is tough at the best of times

but Stephen also had to factor in the two-and-a-half-hour travel time

from his home to this property.

He also had a busy work schedule

and his annual Italian holiday with his kids

Natalie, Ethan and Adrian.

So his four-month time schedule has become almost a year.

But he did get stuck in himself.

I did 70% of the work.

We had a local firm do the electrics and some of the plumbing,

especially the boiler servicing, then I stayed on site,

when I could, three days a week.

It was an interesting year, let's say that.

Stephen has discovered the difficulties

of a long-distance project the hard way.

He has done a nice job, though.

But what bit of the house does he like the best?

I think the bathroom's really worked well

and the downstairs cloaks has gone in,

and I think, for modern living, it's bang on trend, really.

Although he wasn't bang on his budget of 15 to 16 grand,

he wasn't too far over, with a total spend of ?17,000.

But I'm sure the cost must have factored into the decision

of not adding the en-suite in the attic.

The en-suite, we did look at it

and we decided not to go with it at the moment.

These projects are so big, erm, you could go mad with them, really.

You could put, as I say, an en-suite upstairs...

There is scope in the roof to put in actually another bedroom, but...

..it doesn't warrant it at the moment.

Stephen had thought he would sell the property on

but he's changed his mind - no surprise there.

He's going to rent, for now.

We've asked along two local estate agents

to find out their thoughts on this property.

There's been a significant change in the property since I last saw it

and overall I'm very impressed with the standard of modernisation.

I like the large breakfast kitchen.

We all seem to be back into cookery and baking these days,

so I think that will prove, erm, very fashionable and popular.

The main thing about this property is the space it's got available.

Each room is large, it's light and airy, it's bright, clean,

freshly decorated, re-carpeted,

and there's been quite a good level of attention to detail.

That is good feedback,

but has Stephen missed a trick

by not adding the en-suite in the master bedroom?

I think as long as... particularly with the family market,

so long as there's a downstairs toilet,

which of course there is, because he's added that,

I don't think there's any need to add an en-suite on the top floor.

Stephen's done the right thing

and made the property appropriate for the market.

Since he wants to rent, what figures can he expect?

A property in this condition, with the space that's available,

should reach ?450 per calendar month.

With the standard of the accommodation

and also the demand for rented accommodation,

I'll be recommending a figure of ?500 per calendar month.

I think somewhere in the middle, I think, would be a good price.

Somewhere in the middle would give Stephen

a yield of just under 9% on his 65,500 investment.

The agent valued the house on the resale market

of in between 75 and 80 grand,

which would mean a potential pre-tax profit of ?14,500.

So has that changed his mind? Will it be sell or rent?

Er, I...

As I said on the first...time,

I ponder and prevaricate too much, so, who knows?

Could you see yourself battling it out in a bidding war?

So if you fancy your chances,

why not head down to your local property auction?

But make sure you join us next time here on Homes Under The Hammer.

You never know - could be you. Yeah, goodbye! Bye-bye. Goodbye.