Episode 4 Homes Under the Hammer

Hello and welcome to the programme.

You don't need bags of experience

to have a go at property developing.

No, you can have good contacts in the trade,

or even be quite handy yourself,

which will save you time and money.

Yeah, and if you think it's something you fancy,

why not pop along to your local auction house

and buy your home under the hammer?

No matter how much expertise you have in property,

there's always something that may crop up and challenge you.

-That's both the exciting and frightening part of it.

-Yeah.

So how did it turn out for the buyers on today's show?

This end terrace in South Wales

comes with added extras - or does it?

-The solar panels obviously belong to me now.

-Not necessarily.

A bit of extra legroom

would be handy in this former barn in Elstree.

That's not what I was expecting.

A garage!

And in Shropshire, if you like extra doors,

this flat could be for you.

There's two doors going into the kitchen

and two doors going into the lounge.

All these properties are being 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.

The village of Mountain Ash is located

within the county of Glamorgan.

The pace of life here is normally pretty sedate,

but on the 31st of December, things get a lot busier

with the staging of the annual Nos Galan Road Race,

which regularly attracts over 10,000 visitors to the town.

The race is held in memory

of the 18th-century athlete, Guto Nyth Bran,

the Usain Bolt of his day.

Legend tells us he once ran to Pontypridd and back

in the time it took his mother to boil a kettle.

# Run for home

# Run as fast

# As I can

# Oh-oh, running man

# Running for home. #

I never tire of the valleys of Wales, and one thing's for sure,

some of the properties here benefit from some truly magnificent views.

The only slight problem is, on days like today...

you can't see 'em.

But, never mind, the house I'm here to see

certainly sounds pretty appealing anyway.

£27,000 plus is the guide price for this.

It's a two-bed end of terrace. Let's have a look.

OK, so, nice the front door doesn't open

straight into your living area.

You've got this little hallway, radiator,

somewhere to hang your coats, etc, etc.

Stairs up to your bedrooms there

and then through into the main living area of the property.

Kitchen, that's a reasonable size.

Yes, we like that. Obviously, it needs new units and stuff,

but apart from that, perfectly serviceable space,

as is the main living area here.

Erm, obviously, at some point,

the layout has been changed around a bit,

because that beam, originally, wouldn't have been there,

but it does create quite a nice living space.

This, of course, is the end wall

and that might explain why you have got a few issues

with damp here and there.

It can often be the case with the end of a line of terraces,

so you need to check out what might be causing that,

could be the rendering outside needs replacing.

But at least you've got an open fire here -

or would be if you took the gas fire out -

And, of course, you do benefit from those amazing views.

Normally.

# Believe it when I see with my own two eyes. #

Not much to see from the window today,

but the interior views are mouthwatering -

for a property developer, that is.

Plenty of scope to add value on the ground floor,

but let's see what's on offer for the first floor.

So, upstairs and, again, the thing that really strikes you -

how much this place is going to benefit

from just a simple bit of decoration.

Get rid of the white woodchip and just do it with a bit of style.

You'd totally transform this place.

Because, intrinsically, the structure's great.

Good-sized family bathroom there.

It needs a new suite.

You'd be able to do amazing things with that.

It's got a water cylinder in there.

A combination boiler downstairs

and you could create even more space in that bathroom,

so that's good.

And then your two bedrooms.

One on that side, it's a half-decent size,

then through to a slightly bigger one on this side.

I mean, they're not massive, but they're perfectly adequate.

This again is that end wall with a few signs of damp on here.

But, again, lots of light coming in through the windows

and, all in all, it's, yeah, it's a good property.

But before I give this place my final seal of approval,

I'll just pop outside to give the exterior a quick check.

So, out to the back of the property and a little courtyard area here.

The raised garden area there,

beautiful views up the hillside there.

But this is a classic example of when you come round a house,

you really must look at it from all different angles.

You stand here, you look around and you think,

"Pebble dash, looks in reasonable condition, guttering OK.

"Roof, I'm sure that's fine."

And you go back in... Oh, boy!

Would you have missed something quite significant,

because walk up to that raised garden area

and view the roof properly and...

no, actually, it doesn't look to be into bad condition,

but what you also see is those things.

Solar panels. Mmm, a really interesting thing, this,

because they can cause all sorts of issues.

The thing is, the installers of the solar panels

would have negotiated some kind of deal

with the previous property owner,

and that can be all sorts of things from leasing the roof

on a long-term lease to actually buying that roof space.

The thing is, you don't know.

So, as the new owner, what is the situation?

What is your relationship with the people

who installed the solar panels? Who owns them?

These are things that your solicitor needs to check out.

The information should be in the legal pack,

but it certainly needs to be researched thoroughly

before you buy.

Here's a man who could shed some light

on those mysterious solar panels.

But first, let's get his overall impressions of this house.

Quite a nice street, low rental area,

so it's the type of street people want to live in.

The target market for this sort of property

would be first-time buyers, maybe younger, small families.

And what about those solar panels?

The solar panel system was introduced by the local councils

for, purely, hot water heating systems.

Even though this installation was a local council initiative,

it's very unlikely they own the panels.

What's more probable is that they are owned

and maintained by an energy company,

but the council will make a good starting point for research.

Moving onto valuations, how much does he reckon

this property could rent for once refurbished?

In the rental market, done to a modern standard,

two-bedroom property,

would properly fetch in the region of £400-425 per calendar month.

And a sales value?

Completed to high standards, I believe the property would reach

in the region of 65, possibly up to £70,000.

So, a little bit of work to be done to sort this place out

and some issues to be clear on.

Mostly the whole thing with the solar panels.

That said, good location and a good guide price,

so let's see who went for it when it went under the hammer.

A UPVC double-glazed, gas centrally heated.

Needs a bit of an upgrade, guided at £27,000.

Start me, will you? I don't know, starting... Start at 25.

25? Way behind, 25, surely?

20 then, if you like.

Can I start...? Put a hand up, somebody,

20,000? Thank you. 20. At 20 there.

At 20,000. And one, now, can I see?

At 20, on my right. 21, thank you.

Despite the busy auction room, this lot struggled to get started.

Bidding eventually picked up

and we rejoin the auction with the price at 31,000.

31...and a half?

32...and a half?

33...and a half?

34?

And a half?

35? And a half?

No?

At 34... Sorry, 35, rather, £35,000, seated,

against you there, standing.

At 35 here then. For the first time.

Second time. Third time of asking,

£35,000.

Well done, madam, sir, your number, please?

Number 60, thank you very much.

The successful bid of 35,000 was made by Lisa

on the right here.

And I met her and her friend Yvette back at the house

to find out what the plan is.

-Lisa, Yvette, good to meet you both.

-Hi.

-Congratulations!

-Thank you.

Tell me why you wanted to buy this place.

-To make some money!

-OK, well, that's a good starting point.

Why this particular house, though?

Um, it's in a nice enough area

and it didn't need too much work doing to it

and so we thought it could be done quite quickly

and, hopefully, quite cheaply.

Is it something you've done before?

-No, this is my first.

-Right.

What's been your previous career path?

Well, I helped my husband run a steel business

and I was in care work before that.

-OK.

-So nothing like this before.

So what's prompted the move at this point now to do this?

-Well, we lost our business.

-Oh, no.

-So, looking for something new to do.

Something I've always fancied doing, so I thought I'd give it a go.

Great. Yvette, how do you fit into this whole story?

Grafting buddy.

You're a grafting buddy? Everyone needs a grafting buddy!

So, you're literally in here to help and moral support

-and actually get your fingers dirty as well?

-Definitely, yeah.

Wow, and what's your experience?

Erm, I'm a carer for my son at the moment,

-but I'm doing a degree in psychology, too.

-OK.

-Perfect things for doing up houses.

-Exactly.

HE LAUGHS

-But you enjoy DIY and stuff?

-Yeah, definitely.

-Yeah? Great.

So, what's the plan, then? What are you going to do to it?

Obviously, decorate everywhere.

Some walls... A lot of the walls need replastering.

A new kitchen, new bathroom, tidy up the gardens

and hopefully get it back on the market as quickly as possible.

There are a few damp issues.

Any thoughts about where that's coming from?

We think there's a loose brick on the roof from some wires

-that have been attached to it.

-Right.

So, we think that that's where it's coming from.

And how much time are you going to commit to the whole thing?

-Every day, as much as we can.

-Are you?

-Yeah.

-And how are you going to benefit financially?

-I don't know yet.

Erm, well, I don't know,

I might take her out on the town a few times.

# Oh, yes, it's ladies night

-# Oh, what a night

-Oh, what a night... #

What a great way to pay for some hard graft,

a few nights on the town.

But when the sun comes up, there will be headaches to deal with,

like, for instance, those solar panels.

Well, we didn't realise that it actually had solar panels

on the property. They're on the back and they're difficult to see.

So, we didn't find that out

until things started going through with the solicitors.

What did the solicitor say?

Well, that they can't be removed without permission from the company.

Has your solicitor now found out whether or not the roof was leased?

-Or what's the situation?

-I don't know.

-Right.

-But you've completed?

-Yes.

Well, the solar panels obviously belong to me now

-cos I own the house.

-Not necessarily.

They sometimes actually...

What the previous person here might have done is sold

the roof to the solar panel company.

In the small print of the documents they signed, but anyway,

obviously that hasn't happened here because that's not the case

and you've got a set of solar panels.

-You think.

-Yes.

-HE LAUGHS

This could be a tricky situation in the making.

Lisa has paid cash for this house,

but had she needed to get a mortgage, she might have discovered

that some lenders are not too amenable to the lease

or sale of roof spaces, not that we are 100% sure this is the case here.

Lisa may be smiling but it's all a bit uncertain.

# Uncertain emotions

# Force an uncertain smile... #

-So, what's the budget?

-4,000.

-What about the timescale?

-Looking at about eight weeks.

-Eight weeks?

-And then the idea is then to sell it on?

-Yes.

-Yeah? Brilliant.

-Congratulations and well done.

-Thank you.

Good luck with it and we look forward to seeing how you get on.

-Thank you.

-Thank you.

-Nice to meet you.

Well, I know you probably get a bit bored about me

going on about the importance of reading the legal pack,

but this is a classic example, you know?

All this stuff, issues with solar panels on roofs...

if it's in the legal pack,

you've got a recourse to come back after the sale.

If you haven't read the legal pack,

I'm afraid you're out there on a limb.

Hopefully, things will turn out all right and, of course,

how wonderful it is to have a grafting buddy.

See how the team get on later in the show.

Today, I'm in Elstree in Hertfordshire.

You might well be familiar with it

because of its famous studios, which have been located here

since film production began in 1914,

playing home to plenty of well-known films and TV shows.

However, you might not know it's also a popular village

which feels a long, long way from any London postcode.

But the beauty of this place is,

you can be in London St Pancras in 25 minutes.

Even on a rainy day like today this is a sought-after part

of Elstree and the centre of the village is literally

a stone's throw, just over there.

Now, the average property values here are more

than £1.1 million, however, the guide price at the property

I'm here to see is a little different.

It's £145,000 plus, so, what do you get for that?

Well, it's this building here. It's a former barn and office.

I'll tell you more once I've seen inside.

OK. That's not what I was expecting.

It's a garage.

In fact, it's quite like my garage.

Lots of strip lighting, you know,

you can see the breeze blocks through here. Shelving.

It's just like the raw concrete floor.

Very, very basic and derelict, and through here

there's a spiral staircase leading upstairs which I know is an office.

You've got a little loo and a sink down there so, yeah.

A lot of work needs to be done here.

Oh, yeah, something I forgot to tell you -

it comes with planning permission

to be converted into a one-bedroom house.

Viewed from outside, the barn extends quite a long way,

but this is deceptive as the property we're in

is half the length, so the planning permission is great,

but this is going to be a small one-bed house for sure.

Oh, I'm not a fan of these spiral staircases,

and some more negatives with this property...

First of all, it's a bit small, isn't it?

Secondly, you don't have any outside space at all,

but on the plus side,

if this is converted into a one-bedroom house,

well, you'll be competing with the one-bed flat market

and being unique and freehold, well, I think this will be very appealing

and I think it'll be more valuable, too.

So, there's a good bit of work to be done here bringing

this shell of a property up to residential standards.

But with planning permission already in place,

whoever bought this barn could get started on renovations right away.

# Let's get it started, hah

# Let's get it started in here... #

Now, just a thought,

what about having a lovely little Juliet balcony out here?

It would really have such a pretty outlook onto the surrounding areas

and houses, but something I haven't hold you yet -

this is in a conservation area so there will be extra restrictions

on how you can change the exterior appearance of this building.

So that's definitely something you've got to bear in mind.

# Seems like old times... #

Yes, conservation areas can be a headache for property developers

and the status of this building in regards to external alterations

will need to be investigated by any potential buyers.

But with that reasonable guide price of 145,000,

I think in the right hands, this could be a great little investment.

But let's get the opinion of a local estate agent.

I think this is a lovely little property. It's quite unique.

It used to be always a work unit which has full planning consent

now to turn it into a residential unit, and I think

it's going to make a very unique and nice home for somebody.

I think you'll probably look to turn the stairs slightly, put in a shower

and switch the kitchen downstairs and then just

make it light and airy,

but it could be a lovely property with the right attention to detail.

So, if the property was renovated with the attention to detail,

what does he think it would be worth?

If it was converted into a one-bedroom house,

this property is going to be worth in the region of £275,000

and would probably rent in the region of £1,100-£1,200

per calendar month.

It might just be a shell at the moment,

but in this pretty location and with that planning permission in place,

well, this barn could be, oh, so much more than that.

Who wanted their own little unique Elstree abode?

Let's head to auction and find out.

Interesting one, the next one.

Semidetached former barn/office.

Right, start at 140 on this.

Not going to go below 140. 140 anywhere? 140 on my left. 145?

145 with you. 150, sir?

155.

160.

165.

After a series of back and forth bids,

we return when the bids had reached £182,000.

182. 184, sir.

You nearly got it. 184. You must go again.

Lose it at 2,000?

£182,000 on my left, on the phone.

182. First time.

Second time.

Third and last time if you're all done...

Sold, 182.

And, with the successful bid of 182,000 was Kunal.

This is his first property investment

and he brought along his childhood friend Chintan,

who just so happens to be a builder,

to have a chat with me about their plans for this place.

-Kunal and Chintan, congratulations.

-Thank you.

-Well done.

-You got the property you wanted.

-Yep.

So what's the story behind you wanting to buy this on auction day?

I actually didn't go into auction to buy the property.

I looked at the property beforehand, came to view it beforehand.

There was a lot of interest in it before.

Went to auction just to gain experience, really,

because that was my second auction that I had actually gone to.

So, hold on a minute. What you're saying is on auction day,

you just went to be a bit nosy, you didn't intend on buying this?

No, I didn't. No, not at all.

So, why did you get involved and start bidding?

Cos the bidding was... It was lower than what I thought it would be,

so I thought, "Why not get involved?"

I didn't expect to get it,

but I thought, "If I do get it for a good price, why not take it?"

Sow, what would you have paid? What was the figure in your head?

-My figure was to go up to 200.

-So you did all right, didn't you?

-Yeah.

So, why did you think this was a good purchase

and what are your plans?

Erm, because the property itself has got a lot of character.

I mean, it's fairly small, but it's a good first project for myself.

And, yeah, it's cos of the character, really,

and I know that we could probably get a lot done to it.

Make it look nice and hopefully sell it after, or rent it, whichever.

Chintan, tell me what you think of this.

You know, putting your professional hat on.

-I mean, you're a builder, this is what you do.

-Yes.

Is this a single-skin building and how much work is it going to take

to get this up to a residential standard?

I would imagine it would take some time,

but, like I said, we've got a three to four week estimate

on the project itself.

Obviously, in terms of Kunal getting all the right material in

and making sure that we've got the specifications all up to scratch.

-Hold on a minute. Did you just say three to four weeks?

-Yeah.

-You want to get this place turned around in three to four weeks?

-Yes.

-Really?

-Yeah.

Now, Kunal and Chintan certainly aren't lacking in confidence here,

but that's an incredibly short timescale

for a top-to-bottom renovation like this.

So I wonder how ambitious their plans are for the property?

So, how do you visualise this? What would be the best use of space here?

We're looking at an open-plan front area.

Obviously the bedrooms upstairs.

And then a nice bathroom, en suite obviously, it will be upstairs.

And then the utility room in the rear.

It's got to stand out, because you're going to be competing against

the one-bedroom flats or the apartment market,

-and you've got to give it that something else, I think.

-Yeah.

The wow factor.

We are actually keeping some of the original features in order

to make sure that it keeps up with what you've just said in terms of

the property itself and the actual property features of the property.

So, what property features are you keeping?

We think we're going to keep a majority of the beams upstairs

in the bedroom obviously. We'll have a look at that.

And then obviously we have the exterior of the property,

which I think we're not able to change at the moment,

so we're trying to get the confirmation on that.

-Whether it's listed.

-Because I guess it's a conservation area,

so we have to take that into consideration.

Yes, the boys will have to find out whether or not the building's listed

before making any changes to the exterior.

And, let's face it, with those tired garage doors, well,

it could certainly do with a bit of a face-lift.

Now, the thing is, you can't run away with yourself here,

because you have got a one-bedroom property after all.

So, the sort of budget we're looking at is what?

We are looking at about 15,000.

-What?

-Yeah.

-What?!

-15,000.

-£15,000 to do all the work?

-Yeah.

-Oh, no, now I'm shocked. Really?

So, you're saying three to four weeks,

-you're going to turn it around with 15 grand?

-Hopefully, hopefully.

I mean, if we have to push a bit further,

we'll have to push a bit further, but, yeah, to keep it

worth me doing anything, yeah, hopefully about 15,000.

And how luxurious do you see it? What sort of level are you thinking?

Who's going to be your buyer?

Because of the area, were going to go for...

-It's got to be a high-spec finish.

-Yeah.

Now, this is what is worrying me. Can you achieve that on £15,000?

-Can we?

-I think we can at the moment.

-I think we can.

-Is he putting a lot of pressure on you?

He is, but, again, he's my friend,

so I guess it's just one of those things.

The mate's rates will have to kick in.

I guess I'll have to get my hands dirty as well.

-I'll get my hands dirty too.

-Yeah.

-Are you nervous?

-Yeah, very.

Well, in terms of, yeah, if we can get it done in time, yeah,

because it is my first project,

it is a bit of a nerve-racking experience,

but I'm sure we'll get over it.

I wish you lots of luck, guys, it's going to be amazing.

-Thanks very much.

-Thank you.

-Cheers.

So, quite a challenging first project for Kunal.

But at least he has friend and builder Chintan,

along with his mate's rates, to help him along the way.

So, will we return to see that wow factor?

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

Still to come...

in Shropshire, I met a property-developing couple

who are in a bit of a rush.

We go away in four weeks, so it's got to be done.

And in Elstree, Kunal and Chintan have a similar timescale,

but will the budget deliver?

-We're looking at about 15,000.

-What?

We're back in the Welsh valleys

and the town of Mountain Ash in Glamorgan.

# How green was my valley? #

The property I visited was this two-bed house for sale at auction

with a guide price of £27,000 plus.

Its position on the end of the terrace had me wondering

about the condition of the walls.

This, of course, is the end wall.

And that might explain

why you have got a few issues with damp here and there.

It can often be the case with the end of a line of terraces.

So you need to find out what could be causing that.

It could be the rendering on the outside that needs replacing.

Assuming the damp could be taken care of,

this place had the makings of a really nice home

for a first-time buyer, young family,

or could be ideal as a rental investment.

A pretty ordinary property, you would think,

unless you checked the roof.

Solar panels?

Hmm! A really interesting thing, this.

Because they could cause all sorts of issues.

The thing is, the installers of the solar panels would have

negotiated some kind of a deal with the previous property owner,

and that could be all sorts of things, from leasing

the roof on a long-term lease to actually buying that roof space.

Checking the roof was one thing new owner Lisa, here on the right,

neglected to do before paying £35,000 for this house at auction.

# I took you to the top of the mountain

# To show you the valley... #

Has your solicitor now found out

whether or not the roof was leased

-or what's the situation?

-I don't know.

-Right. But you've completed?

-Yes.

Well, the solar panels obviously belong to me, now,

because I own the house.

Not necessarily.

Undaunted by that potential bombshell,

Lisa was determined to turn this property around in eight weeks

with the help of a £4,000 budget and some grafting from friend Yvette.

That was eight months ago.

We've come back to chat with Lisa, to find out if she discovered

any more about those solar panels and take a look at her handiwork.

With a little help from her friends and some local tradespeople,

Lisa has brought about quite a transformation to this property.

The kitchen has undergone the most obvious face-lift

and here's Lisa to tell us more.

Well, we've replaced the kitchen.

It's a second-hand kitchen. All-new worktops.

It's been re-tiled.

And, um...the ceiling has been skimmed

and everything's been painted.

This was a large doorway before,

so the wall has been replastered

and the archway made smaller to make more of a feature.

I'm really pleased - I think it works really well.

Elsewhere in the house, the plasterer has been busy,

with most walls having been re-skimmed.

But thankfully, the damp issue wasn't a structural problem.

We had people come and look at it and once the house was aired through

and the walls were replastered, it wasn't a problem.

Outside, the overgrown back garden has been tamed,

making it a pleasant space to sit out and enjoy the views.

# Shine on, shine the lights on me... #

But was Lisa able to shine any more

light on the ownership of the solar panels?

There wasn't a problem at the end with the solar panels,

they just had to be changed into my name, which I didn't

bother doing, because obviously I was selling the house straight on,

so it wasn't worth going through the expense and the time to do that.

# Like a glittering prize I saw you up on a clear day... #

The glittering prize that Lisa is after is a healthy profit

from her hard work and investment.

Her original budget was £4,000,

but how much did she end up spending on this project?

I've spent about £8,000, just because things cost a lot more

than I expected and there was a few extra things that needed doing.

And how close did she get to her eight-week timescale?

It's taken about eight months from start to finish.

Things just take longer than expected and obviously,

there was the school holidays and a little boy that broke his wrist,

-so that was a few weeks that wasn't expected.

-Ouch!

Sounds like that young lad was in need of a good plasterer, too!

We've invited two local property experts to cast their eyes

over this property and talk us through the main selling points.

Its main selling features are the kitchen,

the improvements to the rear garden

and the decoration throughout.

The property has been renovated to a reasonable standard.

New kitchen, new bathroom,

neutrally decorated throughout.

The vendor hasn't put a new combi boiler in,

so that would be the only thing I would recommend.

And do they think Lisa will come out of this with some profit?

Let's get the valuations, starting with rental.

I would market this property for rental for £400-£420

per calendar month.

On the rental market, I hope this property would

go for between £395 and £415 per calendar month.

At a rental of £425 per calendar month, Lisa would be earning

a return on her £43,000 total investment of almost 12%.

But she wants to sell the house and move on to another project,

so how much would this property be worth on the local sales market?

I would market this property in the region of £60-£65,000.

This property could sell for in the region of £60-£65,000.

Before tax and sales fees,

that would mean a profit of between 17 and £22,000.

What does Lisa think about those numbers?

I think I would prefer a little bit more, but obviously

in this area, there is a limit to what you would get from property.

But have those slightly disappointing valuations put her off

a future career in property development?

I think I would try it again.

I've learned a lot from it,

so hopefully it would be a lot easier next time.

The pretty town of Newport in Shropshire sits six miles

north of Telford.

Its origins can be traced back to the Norman times

and reminders of the past can be seen throughout the town,

including the remains of this 13th-century stone cross.

# So I'll cherish

# The old rugged cross... #

And talking of old and rugged...

..legendary Brummie hell-raiser Ozzy Osbourne once owned

a wine bar in the town.

HEAVY ROCK MUSIC

Just a few minutes' walk away from Newport town centre is

the property I'm here to see.

It's got two bedrooms and a guide price of £70,000 plus.

There is one thing I have noticed.

It's leasehold, so if you're looking to build an extension,

you would have to get in touch

and get permission from whoever owns the freehold.

But I don't think that's going to be a problem,

because it's this ground-floor flat that I'm here to see.

Let's have a look.

OK, we're into a small sort of porch way area.

We've got the boiler in there with some hanging space for your coats.

Kitchen's through there, but I'll come back to that.

Into this really large lounge area.

Lots of light coming through that big window there,

which looks relatively new, as well,

which is good. Central heating...

They have got a textured ceiling,

so you'd possibly want to get rid of that.

It just needs freshening up in here.

But it's a really good size and a really good start.

It looks to me like these blocks were built in the 1960s

and have been well maintained.

The current leaseholder is a local housing association,

which should mean the building has been looked after.

This is good, solid housing, so I'm not really expecting

any horrible surprises from the rest of the flat.

So at the back of the property, we've got two bedrooms,

both of decent sizes, but again, need freshening up.

Across the hallway, you've got the bathroom here.

It's not in bad condition at all - if you're looking to rent

this property out. I'd want to put something new in there myself.

And into the kitchen...

It's pretty much a similar story.

You could get away with freshening it up and keeping it

if you're looking to rent this property out, but for me,

get a brand-new kitchen in, really give it some life.

What I have noticed is there's two doors going into the kitchen

and there's two doors going into the lounge.

It's strange, but I quite like it.

# I like it, I like it

# Are you liking it too? #

But does anyone else like it?

We've invited along a local property expert to take a look around

and tell us what he thinks.

In terms of the condition, absolutely fine.

If you were looking to sell the property, I'd probably say

the kitchen and bathroom need to be improved on.

If you were looking to rent, it could probably rent in

its current condition, but to maximise the best rent possible,

I'd probably say improving on the kitchen and bathroom.

And can he estimate how much the buyer might have to spend

to refurb this place?

I think for the rental market, you're probably

looking at a couple of thousand pounds for improvements

in terms of carpets, curtains, general cosmetic,

that sort of thing.

If you were looking to sell the property to improve

on the kitchen and bathroom, I'd say a ballpark figure of about £10,000.

Onto valuations, now, starting with rental.

If you just did a quick refurb for the rental market,

I'd say the property is worth £450 per calendar month.

I think if the property was in full refurbed condition,

you're probably looking at £550 per calendar month.

That's quite a difference in rental return.

But what about resale values?

If you did a quick refurb on the property,

you're probably looking at £80,000.

If you were to do a full refurb on the property,

you're probably looking at £95,000.

This property is in really good condition

and just needs the basics doing.

If it were mine, I'd want to change the kitchen and the bathroom.

If you're looking to rent it out,

all you have to do is put some new carpets in and a lick of paint.

Let's see who wanted a simple project

when it went under the hammer.

Lot 36 is a leasehold two-bedroom ground-floor flat.

Needs modernising,

so what shall we say, 60 to start?

60 bid, thank you.

At £60,000. 61. At 61.

62. 63.

64.

65.

66? 66.

67.

68?

68.

69?

At 68, then, the bid is on the phone. At £68,000...

69 anywhere else?

If not, £68,000 for the first time,

it's on the phone, no mistake.

£68,000 for the second time,

third and final time at £68,000...

Sold on the phone, 68,000.

And the person on the other end of the phone was Annette.

She's been on the show before, appearing with her son Lewis.

But now it's time for husband Mike to step into the limelight.

# We're going to make you a star... #

-Mike, nice to meet you.

-Nice to meet you, too.

Annette, nice to meet you, too.

First time for me, interviewing you, but you've been on the show before.

-Yes.

-Martin's told me all about you, so there's nothing to hide!

-Oh, that's good!

-And I know on this particular property,

it was a different auction experience for you, this time.

Tell us all about that.

I have been to the auction in the past, but I decided this time

to do the telephone and it was really fun, I really enjoyed it.

I watched it on my laptop at the same time and the guy

from the auction house telephoned and said that he would phone just

before the lot before and he did, I thought we were going to miss it.

But he phoned and he said,

"What bid do you want?"

and I said yes and he said, "Shall I bid this?"

And I said yes, and I said, "Just keep going." And it was great!

-Absolutely great.

-So do you think

because you were on the phone, you were more disciplined?

Well, the thing is, if you bid by proxy or by telephone,

-you have to say what your maximum bid will be.

-I see.

You're only allowed to bid to your maximum bid, whereas

if you're in the auction house, you don't have that restriction.

-Are you disciplined in the auction house?

-Yes, I'm very disciplined!

I get a list of prices and then I go "Oop!"

and I never go above the list.

Clever, you've got him well trained, haven't you? I like that!

I give him the list, you see!

# Don't leave me hanging on the telephone... #

So it looks like Annette is a big fan of telephone bidding.

But why did she buy this property?

Well, I bought this property because I want to...

If I become a little old lady, if I'm lucky enough to get to be

a little old lady, I'm going to come and live here.

Buying it for yourself? That's nice.

Newport is a lovely town and from here, you can walk into town,

just a tiny little walk, you even walk past the old citizens' place,

so it'll be great.

Also, Newport Bridge Club is very close,

and we're bridge players and we play from Newport Bridge Club.

-We'll be able to walk to the bridge club.

-I just can't get that game!

-I can't grasp it. It confuses me!

-Yeah?

-You can help me out a little bit!

-Well, we teach bridge.

-Oh, do you?

-Yes, on cruise ships.

-That's interesting.

So we're going away soon on one.

Maybe I'll have a lesson before you go away.

FOGHORN BLARES

Heading off on the high seas to teach bridge means that

Mike and Annette have put themselves under a bit of pressure.

They plan to rent this place out,

but need to get it shipshape before the cruise.

# Won't you let me take you on a sea cruise? #

We go away in four weeks, so it's got to be done in four weeks.

So does that mean you two are going to be in here,

doing the work nonstop, 24 hours?

No, we've got so many other things we've got to do

in these four weeks, I think we'll be here at night-time, doing it!

We've got bridge commitments and bowling commitments.

-Bowling as well?

-Yes.

-Where are you going to get the time?

Bridging, going on a cruise, bowling...

-I have to cut the green, as well.

-Are you...?

-Free of charge, that is.

Really? Talking of free of charge,

I've got some grass at home that might...!

Maybe you can help me out with that, give me some tips.

-And you've done your research?

-Yes.

-Did you read the legal pack on the property?

-Yes, I did.

-Fantastic.

-Did you view it?

-I've viewed it...

It was open for viewing on three occasions

-and I viewed it on all three occasions!

-Oh, you see!

-Ticking all the boxes, Mike.

-Just to make sure about the competition!

Exactly!

The first occasion, one other person viewed it

and he seemed quite interested.

Then on the other two occasions, I was the only person who viewed it.

-So I thought I was in with a chance.

-Just how we like it.

The couple plan to spend no more than £2,000 getting this place

ready for rental.

New carpets, painting, decorating and a good clean-up.

But when Annette reaches the little old lady stage in life,

she is very particular about how things should proceed.

I have made my elder son Lewis promise that he will do it

up again, before I come and do it the way I would want it now.

Because the way...

If I were coming now, the way I'd want it, well, when I'm old,

I might not be bothered.

So I might say, "Oh, it doesn't matter, I'll go in it as it is".

But I wouldn't really want that to be the case,

so he's promised he will make some changes.

20 years' time, you'll be in here.

Walking into town, playing bridge, playing bowls...

-I don't think Mike will be with me.

-Oh, that's nice, isn't it?

-You find your own pad!

-I most probably will be!

You will be, don't you worry about that! Annette, good luck to you.

-Thank you.

-I hope you make it a lovely family home.

Mike, I hope you're in it as well, mate!

I think seasoned property developers Annette and Mike

have been dealt a winning hand with this property.

My only concern is will they get it done in four weeks

before they go on holiday? Will they play their cards right?

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

Well, we are one property down, but what about the others?

That's right, we've got two others still to see.

Let's find out how they got on.

Time to head back to Elstree in Hertfordshire and an unusual lot -

this detached barn-cum-office.

It was guided at an attractive 145,000 and the real bonus

was that it had planning permission for a one-bedroom house.

But nothing is ever that straightforward, is it?

This is in a conservation area, so there will be extra restrictions

on how you can change the exterior appearance of this building.

So that's definitely something you've got to bear in mind.

Yes, that conservation status could be problematic

for a potential renovation.

Kunal wasn't fazed, though,

buying the property for £182,000 at auction.

With the help of childhood friend and builder Chintan,

he planned to turn this challenging building

into a one-bedroomed house with wow factor.

Despite this being his first property development,

when it came down to the budget and time scale,

he certainly wasn't lacking optimism.

-We're looking about 15,000.

-What?!

-£15,000 to do all the work?

-Yeah.

Oh, no, now I'm shocked. Really? So you're saying three to four weeks,

-you're going to turn it around, with 15 grand?

-Hopefully.

Kunal and Chintan had set a very ambitious target.

Three months later, we've come back to see if they've made it.

# Baby, you're a firework

# Come on, let your colours burst... #

The ground floor has been completely gutted to create

this open-plan living kitchen.

Originally, Kunal had planned to include a utility room down here,

but I think opening it up

and making the most of the limited space was the right thing to do.

But will the fireworks continue upstairs?

# Cos, baby, you're a firework... #

Yes, the first floor has had a thorough makeover too

and it's now a decent-sized master bedroom with a brand-new en suite.

Like the living room and kitchen downstairs, it's fresh

and modern whilst making the most of the character of the property -

keeping the old wooden beams.

They've also included a new feature window up here in replacement

of the previous barn door, which floods light into the room.

The outside has seen some modern touches too, with the new door,

window and cladding on the ground floor

where the rickety old garage doors were.

Kunal and Chintan have done an incredible job

transforming this once-derelict barn.

Not sure I'd have gone for the lime green, though, lads.

We kind of wanted to incorporate the barn feel in it

as well as modernise it, so we went with the modern

type of kitchen, but the stairs we've kept kind of old, rustic.

The original beams upstairs we've kind of kept there,

just gave it a coat of paint, but we wanted to keep it as a barn feature.

I wasn't sure about the green at first, but I think...

-I think it works well. It grows on you!

-I've warmed up to it!

Yeah, definitely.

As this is in a conservation area, how did they find balancing the old

with the new on the exterior of the property?

Sometimes it's quite difficult to work with conservation areas,

but I think we've done really good.

Yes, we had to keep it fitting in with the surrounding area,

which I think we managed to do, so there's a lot of talking,

a lot of decision-making, but I think we got there in the end.

Well, the cladding and brickwork had to match the surroundings

and I think the result is OK, and Kunal is keen to send out

plaudits to everyone who did all the graft.

Chintan's just done really well with it, he's banged it out, basically.

In terms of the electrical side, I had my brother-in-law Dylan,

who's come in here, worked really hard, a lot of days spent here.

Amit Patel, my best mate, he's been here for days on end,

just giving it a nice finish

and apart from that, we had help come in from just a few friends...

A few friends, because obviously the budget was slightly tight

on the project itself.

What are friends for, eh? And they've done a wonderful job here.

Originally, Kunal and Chintan

set themselves a timescale of three to four weeks

for the renovation, but in the end, it's taken closer to seven weeks.

So how did that £15,000 budget fare?

I think we have done just over 20, but obviously thanks to Dylan

and Amit and a few others coming in to help us, yeah...

We would have spent a lot more, I reckon,

but family, mate's rates done me some justice.

Well, I think your family and friends have done you proud

and saved you a fortune!

The original £15,000 budget was really tight,

so a five grand overspend, hmm, it's not so bad.

What do two local estate agents make of this? Let's start with the one

who saw it when it was a barn.

First impressions of the property, it's been done very nicely,

it's nice and clean.

From what the property was like,

they've really got everything that they can get out of it.

It was always a fairly limited space to work with,

but I think they've done a really nice job.

First impressions of the property are really good.

I think he's put a very nice finish in,

I also like the fact that it's over two floors,

so you've got to come upstairs to your bedroom and bathroom.

I think that will attract a lot of buyers.

That's all very positive from the agents,

so let's get their valuations.

Remember that Kunal bought the property for £182,000

and has spent a further 20 grand on refurbishment.

But what could the house sell for

and how much could Kunal make from his total investment of £202,000?

I feel the property would achieve

between £275-300,000 in the current market.

I would put the property on the market for £315,000

and I'd look to achieve between 305 and £315,000.

I haven't heard too much about the lower value.

I've had a couple of estate agents come in

while we've been working and it's been over the 300,000 mark.

-I think...

-I think if I get somewhere around there,

I'd be very happy with that, to be honest.

Selling for £300,000 would mean

a pre-tax profit of an amazing 98 grand!

He's done all right for this property investment.

But let's get the rental figures

and see if he could be tempted to hold on to it.

From a rental point of view, I'd anticipate you would achieve

somewhere in the region of £900-950 per calendar month.

The rental market is also very strong

and if I were to market the property, I would market it

for £1,000 per calendar month and I would look to achieve that.

That top figure of £1,000 per calendar month would give Kunal

a yield of just under 6%, so would he be interested in renting?

I probably will end up selling it, hopefully to get the higher value

and, yeah, to carry on with another project using the profit, probably.

In fact, he and Chintan have decided to both go into a property

development business together and plan to head back to auction soon.

So you never know,

it might not be too long before we see this property duo again.

It's time to return to Shropshire and the pretty town of Newport.

This two-bed flat was up for auction at a guide price of £70,000 plus.

Close to the town centre, the flat offered a lot of positives.

It just needs freshening up in here.

It's a really good size and a really good start.

Sold on the phone.

It was bought for £68,000 by telephone bidder Annette,

paying two grand under the guide price.

Usually preferring to be at the auction, this was the first time

Annette had bought property from the comfort of her own armchair.

And the experience evidently appealed!

It was really fun, I really enjoyed it.

I watched it on my laptop at the same time

and he said, "Shall I bid this?"

And I said yes. I said, "Just keep going!"

It was great, absolutely great.

Annette had a grand plan.

Do a modest makeover and rent the flat out, then wait 20 years

and move in herself.

If I become a little old lady, if I'm lucky enough to get to be

a little old lady, I'm going to come and live here.

Annette had made her plans,

but we weren't sure if those plans included Mike.

I don't think Mike will be with me!

Oh, that's nice, isn't it?!

# Don't you forget about me... #

Oh, poor Mike. All joking aside,

our couple only had four weeks to complete the refurbishment.

With a cruise looming,

it was a case of all hands on deck to get this job done in time.

We're back five weeks later to see how they managed.

I think it's mission accomplished for Annette and Mike.

Just enough paint and polish has been applied to make this place

a decent rental proposition.

In the kitchen, the existing units have been cleaned,

the walls have been painted, new flooring laid

and Annette has added a few decorative touches.

In the kitchen, we put some tile transfers on,

which I really like, they make the place look nice and bright.

I'd read the reviews about people putting them up.

Some said it was easy and some said it was really difficult,

but I actually found it easy.

Then I bought another pack,

so that I could do them in the bathroom as well.

But I don't think Mike and my sons are very keen.

I think they look a bit too girlie, all this coloured stuff around!

# I see red, I see red, I see red! #

Instead of seeing red,

Mike busied himself with the more practical jobs.

We had a problem with the pipes behind the washing machine.

The plumber had pushed them out too far, so we had to readjust them

so they went right against the wall

to make it easier to push the washing machine in.

Annette did most of the painting,

but it all got a bit complicated with carpet removal.

When we went to take the carpet up,

because usually we get rid of carpeting so that we can paint

and not worry about the paint, there was underlay underneath -

good condition underlay.

So we left the carpet down while we did all the decorating

and then, in order for me to paint the skirting boards,

Mike cut a strip all the way around the edge of the carpet,

and then when we finally finished everything,

we rolled up the old carpets, took them through the window,

because it's easy access through the window to get rid of those

and then I have a man who comes and puts down carpet and vinyl.

He did that for us while we were away on holiday,

so we came back to it and it was all done.

And Annette's painting didn't stop inside the house.

The yard, the communal yard where the bins are,

I didn't like that - it was a bit grubby.

It's got years of moss on the floor, so we went out with a spade

and scraped all the moss off and swept it all up.

Then I painted a picture,

which I've put on the wall to brighten the place up.

This has been a pretty straightforward project

for Mike and Annette, the timescale being the only issue.

We really only had three and a half weeks, didn't we,

to get it completed, because we were going away?

And so, when you know you're short of time, it is

a little bit of a worry. We did work full-time over those weeks.

-Yes, we hardly missed a day.

-Yeah.

But we did manage to do it comfortably, really, in that time.

Our budget was about £2,000

and we've actually spent 1,850.

That is including the carpet and the vinyl and the fitting.

It includes a new electric cooker

-and then the rest of it is on paint...

-And materials.

And materials, yes.

So, job done on time and for less than their two grand budget.

Mike and Annette are very happy with how things have worked out,

but how will two local experts

react to this two-bed flat?

This is the first time I've been in the property

and I find that it's been well refurbished

to a good standard throughout.

It offers quite spacious accommodation with

two good-sized bedrooms.

The property is very well laid out, it's suitable for an individual

or a couple on their own, decent-sized throughout.

The selling points to this property are it's very close to

the town centre, which is very easy to get in to from here

and also a very nice neighbourhood.

But what about the values?

Annette is planning on a rental future for this property,

so how much could they expect from the rental market?

I'd consider the rental value to be

between £475-500 per calendar month.

I would value the property at £525 per calendar month.

Taking the middle figure of £500 per calendar month,

this represents an 8.5% yield on a total investment of £70,000,

which would be a great long-term investment.

How do the sales values compare?

I'm of the opinion that the property would sell at around £100,000.

I would value the property at £95,000.

Selling at £100,000 would leave Annette and Mike

with a handsome 30 grand profit, minus fees and taxes.

But Annette has her heart set on moving here in her twilight years

and I doubt very much 30 grand is going to change her mind.

I'm still going to come and live here when I'm a little old lady.

And I really would quite like to come and live here now!

Mike might be able to come with me when he's a little old man -

it just depends whether he's around or not!

She doesn't expect me to survive that long, I don't think!

We'll have more action from the auction rooms for you very soon.

Yes, you won't want to miss it.

So, join us next time for more Homes Under the Hammer.

-See you then.

-Bye-bye.

-Bye!