Episode 62 Homes Under the Hammer

Hello. If you're after any kind of property,

the auction room could be for you.

That's right, make sure you do your homework and get your

bidding strategy right so you can be victorious when the hammer falls.

So, whose research paid off when they put their hand in the air to bid?

There are many possibilities in the auction room.

You can find yourself a new home, an investment flat, or even a garage to store your belongings.

And if spent wisely, your money can still go a very long way.

So, who chose to splash the cash on today's show?

In London, there's a large flat with a not-so-large kitchen.

It's more of a kitchenette. I can't see whoever designed this did much cooking.

This two-bedroom flat in Exeter could win a prize, but not for glamour.

It gets my award for one of the worst bathrooms ever.

And on the Isle of Sheppey, there's a building with a wonderful facade.

Is it an old cinema or a music hall?

Let's shimmy inside and have a look around.

All these properties have gone to auction, and we'll be finding out

who bought them and what they paid for them when they went under the hammer.

It's yours.

My destination today is Earlsfield in southwest London.

It's a very popular London suburb which attracts commuters due to

the fast journey times to Waterloo, and relatively reasonably priced property.

I'm on Swaby Road, one of Earlsfield's most desirable residential roads.

And it's just minutes from the train station.

I'm here to see a two-bedroom flat on the ground floor of a terrace, with a guide price of £225,000.

Here's a bit of gossip.

The flat above sold only a year-and-a-half ago for almost double this figure.

Could this lot be a credit crunch casualty ready to be snapped up?

I'm going to have a look around.

From outside you can see the top floor has had a loft conversion, which would have added some space.

But is that enough to make it double the value of the ground floor?

Maybe the inside will help explain that big difference in price.

Inside, my first impressions are the feeling of space.

This corridor just goes on and on.

Wow!

Into the reception room, and my eye is straight away drawn to this lovely bay window.

You've got great high ceilings, covered in poly tiles, which are a fire hazard and would need removing.

I'd get the floorboards stripped in here, a fireplace put in, and these

walls stripped back and skimmed. Great start.

I love it when you can walk into a property and just know what needs to be done to get the best from it.

This Edwardian flat isn't an obvious looker but its large, light public

rooms are incredibly practical and do have some character.

This spacious, very red bedroom is the next room along.

Then there's the bathroom, which will need to be stripped out and refitted.

But it is a good size, as is the second bedroom, which is also well proportioned.

At the end of the hall, you'd expect to find the kitchen.

But it's more of a kitchenette.

I can't see whoever designed this did much cooking.

In fact, I'm wondering if this wasn't the old scullery once upon a time.

Whatever the reason, this wall has to come down.

And then you could open up this whole area to create a lovely

L-shaped kitchen-dining room. Much better.

At last, the first problem to sort out.

But more worryingly, I've spotted signs of damp in the kitchen.

So that'll need to be investigated.

Outside, although you have a ground floor flat, you don't get the whole garden.

It's clear which side you do get, but I still think

it could be worth converting the kitchen window to French doors overlooking that garden.

And you could fence that off to make it more private.

I asked a local estate agent to take a look at the flat and

tell me more about the potential of properties in this part of London.

Earlsfield is a very up and coming, vibrant area.

There's a lot of young professionals moving to the area.

One of the main benefits that attracts a lot of people,

especially City workers, is the commute into London

to get to Waterloo station.

It only takes about ten minutes on the overland train.

Could the cost of refurbishment railroad your budget and leave you in the red?

What needs attention here to maximise the return?

In terms of the work that needs done to this property,

you're going to have to do a complete renovation.

New bathroom, new kitchen, redecorate all of the rooms, possibly

even redo the windows, but I feel once they've done that work, they will see the reward at the end of it.

The flat was guided at £225,000, but how much could it be sold for once upgraded?

Once renovated, this flat would be worth £350,000.

So, potential profit.

And for a buy-to-let investor, there should be plenty of tenants

for this property, just ten minutes from central London.

Earlsfield has yet to reach the popularity of neighbouring Clapham

and Balham, and the area is bound to improve and increase in value.

The same could be said for this flat.

At this low guide price, with this square footage, there's huge potential here.

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

Right, lot 67. It's 26 Swaby Road, Earlsfield, London SW18.

Who wants to give me a start on this one? Lot 67. 200?

190, anybody?

190, I've got.

Anybody else? How much? 195?

195, thank you. 200.

205, the gentleman with the scarf.

Yeah? 205. 210.

215. 215? 211?

211. 212. 213, with the scarf? No?

If not, £212,000 on my left.

Anybody else? You coming in, madam?

213, 214.

215, 220,000.

225, 230, 235, 240,000.

241. Lose it for 1,000?

If not, it's with the lady on my left by the door at £240,000 for lot 67.

Anybody else?

240 for the first,

240 for the second,

£240,000 for the third and final time. Are we all done?

Sold, 240. Well bought.

The winning bidder was Iris, and she paid £240,000.

But I do remember meeting her three daughters, Olivia, Lavinia

and Rowena, at the property they'd bought to renovate in Guildford back in 2005.

# Here come the girls... #

Now I'm going to meet Iris, with Lavinia and Olivia,

at her latest purchase, this two-bedroom flat in Earlsfield.

Iris, congratulations.

You're the lucky new owner of this flat. How do you feel?

I'm delighted, absolutely delighted.

Now, I know that our paths have almost crossed before.

-I've met your daughters...

-Yes, you have.

..who are property developers. What are they up to now?

Well, since you met Lavinia last time, she's had another baby.

And Olivia has moved in with her boyfriend in Battersea.

And Rowena has taken a job out in Dubai. She's a graphic designer.

So she's got a contract out there for a year.

-So I won't see her for a while.

-So how well do you know Swaby Road?

It was interesting because my daughter, she was interested

in a property further down the road about a year ago.

-And her offer was turned down at £363,000.

-A flat similar to this?

A flat similar to this. So I'm absolutely delighted that we got it for 240.

-Can you imagine?

-Who have you bought this flat for?

Is it for one of the girls, or is it for yourself?

No, this was really for Olivia in mind, because I thought she'd love

the idea of moving into Swaby, as she was so interested in it before.

So daughter Olivia and her sister Lavinia will be helping their mum with this

£240,000 investment project.

What changes are you going to make inside the property?

Well, first of all, we're going to knock the window out in the

kitchen and put in some French doors onto the garden, and make a nice L-shaped kitchen there.

Knock down that tiny wall into the kitchenette.

And the bathroom, that needs knocking down completely. Brand new bathroom.

Then we'll polish the wood floors, because the wood floors look good.

So where they're good, we'll put down some nice rugs and maybe carpet the bedrooms.

How are you going to decorate? Are you going to use neutral colours?

We're going to put lovely wallpaper that's very vibrant on the chimney breasts or maybe the alcoves.

Then paint the walls a corresponding colour to match in with the...

There are some vibrant wallpapers out now, they're gorgeous.

The thing I love about the property is the size of the rooms.

Everywhere is so spacious. You've got beautiful high ceilings.

But you have got that huge bit of space out in your hallway.

-Isn't that lovely?

-What can you do with that?

Well I had an idea that I'd put some beautiful yellow and silver wallpaper

on there and two nice big mirrors and open it up.

Brighten the whole thing up and then put some nice lights up.

-I was wondering if it would be worth opening up the cupboard underneath the stairs?

-Yes.

You could open that up and really open the space up.

That's a great idea. That's a very good idea.

Although this is a deceptively large flat, I'd always aim to maximise

every little bit of space because it can help attract a buyer or tenant

when you're in competition with other properties nearby.

-Do you have a budget for this work?

-I feel this one, probably because

it needs a new boiler. I think it needs rewiring,

so because of that, I think we're in the region of 20,000 to do a good job.

Iris used to work in the antiques business but her passion for

property development has rubbed off on her three daughters.

They help out with Mum's refurbishments whenever they're in the country.

-Is it good fun working on properties with your daughters?

-It's brilliant fun.

-You should see the state of us.

-Do you all really muck-in together?

We are all covered in paint, our hair is matted, Polyfilla.

Any arguments along the way?

The decor sometimes reaches a pitch.

"I don't want that colour" and, "I don't want that colour", but we usually work it out.

But surely you're in charge?

I have to be.

After meeting the girls all that time ago, it's so

nice to meet up with their mum Iris, the source of all their inspiration.

I think she's made an incredible purchase. It really is a great flat.

I can't wait to see the final product and just hope the girls

don't squabble over the decor too much. Find out later in the show.

Today I'm in the historic cathedral city of Exeter, recently

revitalised by a new shopping area, it's a wonderful mix of old and new.

Just outside the city centre, off the main Topsham Road, is the property I'm here to see.

This isn't necessarily considered to be the best part of the city and certainly the name of the road is

rather ominous, Burnthouse Lane. But fear not, the flat I'm here to see is actually pretty much together

and it had a very attractive guide price of 50,000 quid.

It's situated just above this betting shop.

Let's hope that whoever bought it is onto a winner.

It's odds-on that not everyone would back this property.

But although it may lack kerb appeal, at least it wouldn't be as

bad to live above as a takeaway or a restaurant.

The entrance is round the back, which is good because at least it's

private but it is up these rather unattractive metal stairs

which, when it rains or even worse when it's icy, would become a real slip hazard.

You wouldn't want to fall into that barbed wire at the back.

It's not exactly inviting and, rather unnervingly, I do feel as though I'm being watched.

So, is the flat itself slippery?

Well, I don't know about slippery but certainly slimy.

That kitchen is vile. You almost don't even want to go in there.

It's tired, it's icky, icky.

It's got this horrible sliding door on it.

You've got bits of glass, which would be here, missing.

You'd definitely need to majorly sort that out, and actually,

unfortunately the bathroom gets worse, but I'll come back to that in a minute.

You've got a bedroom at the front.

You've got the living room on the other side at the front, and then through to the second bedroom.

Not bad sizes, and actually, if you can see through the mess, not in bad condition.

Do you like the colour of the walls? Nope?

That is actually nicotine stains. Another advert for not smoking.

The ceiling ain't much better and with this lovely light fitting.

All in all, it needs work.

That's an understatement but dirt and grime aren't the only alarming things I found lurking here.

I said I'd come back to the toilet and bathroom and well, here I am.

You can't quite see me yet because I'm round here.

This is the bath.

It's slightly sunken. It's inlaid into this little corridor thing.

It's claustrophobic and it gets my award for one of the worst bathrooms ever.

And that's saying something after viewing well over 1000 properties on the show.

Having a bath in here would be like bathing in a tomb.

Another to add to the Hammer Hall Of Fame.

But seriously, there's little you can do to the structure because of the chimney breast

on the left of the entrance which would be a horror story to remove.

So, through to the living room, again not a bad sized space.

I'd like to think about changing the layout in here. Obviously the bathroom is a disaster.

Maybe make this open-plan.

This is a stud partition wall so you could take that out to create an open-plan kitchen-living area.

But the deciding factor is what you're going to do with the place.

If you're going to rent it out, do you want to be spending large quantities of money sorting it out?

I think that's where the money lies. Rent this place out.

You're on the bus routes to where the local employers are.

You've got a hospital nearby and I know that places like this

nearby, two-bedroom flats are getting £500 a month in rent.

Get this anything like the guide price and you could be on for a ten per cent yield.

Don't get that in a bank!

So it's not exactly love at first sight but as a developer you have

to put these details aside and see the potential here.

I reckon that at a guide price of £50,000,

it would be a solid investment once renovated.

With all that in mind, I asked a local estate agent

along, to see what he thinks.

This property really does require a lot of refurbishment internally,

to bring it up to scratch from both the rental prospect

as well as from a homeowner's point of view.

The bathroom is a bit of an oddity as to what can happen to it because of the structural issues around it.

Personally I think the better option would be to remove the bath totally and fit in a nice shower cubicle.

That would be a quick and simple solution to a tricky problem

but could to the rest of this flat prove to be a good buy?

I'd say there's a good rental investment because, from a tenant's

point of view, it will be refurbished to bring it up to scratch and there will be a rental figure attached to

it to reflect the location,

which will impact on and help the affordability from a tenant's point of view.

At a guide price of £50,000, how do the investment figures stack up?

As the property stands at the moment, I would attribute a value of round about 55 to £60,000.

Allowing for refurbishment, which I would estimate around about £15,000,

I would then apply a resale value in the region of £80,000.

I'd say if this property was refurbished properly, you could

be achieving a rental income around about 425-£450 per calendar month.

Well, there you go. It's going to take a bit of work to

sort this place out but I reckon once you've done that, this is a great investment.

It may not be everyone's idea of the best place in Exeter to be

but if you're looking for a rental opportunity, I think it's perfect.

Let's see who spotted the opportunity at the auction.

Lot 26 is 35A Burnthouse Lane in Exeter, guided at 50.

Nice and simple. 50,000?

Who will say 45?

Thank you, 45, we're away on my right-hand side.

At 45, it's as simple as putting your hand up.

46. 46. 47.

48?

49. And 50, down the aisle. 51. 52.

53. 54.

55. Good shout. How about 500?

Are you sure?

55 and a half.

At 55 and a half, at 56 at the back.

The one bid gentleman.

56 and a half. Got it.

At 56 and a half, sat.

57. At 57. 57 and a half.

At 58. At 58. At 58 and a half.

59. At 59. At 59.

59 and a half.

Sat has got it once and twice.

60, I've got it. At 60.

At 60. At 60,000, first, second, third, last time. It will be sold.

Oh - 61.

60 and a half anywhere? 60 and a half. At 60 and a half once...

At 60 and half twice...

61. 61. At 61. At 61...

A wry smile. 61 and a half.

At 61 and a half.

First time...

Second time... 61 and a half, second row in.

At 61 and a half and selling at 61 and a half.

Sir, congratulations, well done. 61 and a half.

That winning bidder was Bob.

He's a local landlord who snapped this property up to add to his portfolio.

I met him to hear about his plans for this little flat of horrors.

-Bob, congratulations.

-Thank you.

-Why did you want to buy the place?

I develop properties and let them, or present them, to the rental market.

"Present them", that's very grand!

Well, we do make a nice job of making them very habitable.

And most people are happy renting what I present.

-And how many have you got?

-I've got 12 now.

-Oh, great.

-In and around this area?

-Most of them are this area.

I think seven are on this estate.

Very, very local. Why this estate then?

It lets well because it's close to local transport links to the main estates, Marsh Barton and Sowton.

Those are where major employers are located.

And obviously the RD&E Hospital which is just opposite.

So you really have focused on an area.

Do you think that's a good thing to do?

I'm finding it very easy to rent in this area.

A lot of people think this area isn't that good, but it's very good on a commercial basis for rental.

-So what appealed about this flat?

-It's quite a large flat and it's very, very cheap, in my opinion.

-Right!

-It's 60 square metres, which is quite a large property.

And hopefully it will give me a rental return of around 575, maybe 600 on a squeeze.

-So, given what you paid, that's a pretty good return, isn't it?

-About a 10% return.

Bob has clearly got his developing head screwed on with this property.

Although the area may not be everyone's cup of tea,

it doesn't mean the investment won't pay for itself.

But before all that, there's a bit of grafting to be done.

-So what's the plans for it?

-The plan is to renew the kitchen,

refit it throughout, get rid of the horrible decor...

We'll still do it neutral because that's obviously easy to let.

Too many bright colours, nobody likes it.

And hopefully it won't take me too long to do.

And what about the bathroom?

I think we're going to remove the bath

and put it back to a shower, depending on what's under the square,

because there's a square which we don't know if it's the original staircase.

So what would that mean if it was?

If it was, we might have to rethink the plans and put the door into

the bathroom through the kitchen, which I'm not keen on, and then put the shower the other side.

But I want to get rid of the sunken bath.

-It's all a bit daft, isn't it?

-It's not exactly practical.

Changing that bathroom is just the start of the renovation needed here.

Bob's got a budget of just £5,000,

which would limit him if he wants to do anything major.

I've considered taking the wall out

between the living room and the front bedroom

and putting the kitchen in the front bedroom,

to make a large living space at the front,

and change the kitchen back into a bedroom. Is one option.

And the other option is to

move the shower into virtually the hallway area,

and make the bedroom bigger at the front

and have the door from the kitchen into the bathroom because

the chimney's in the way.

So both of those quite involved jobs

that require taking out walls and banging around a bit.

Not so much taking out the walls because they're only stud walls.

I've thumped the walls to see which ones are stud,

which will refer which I can remove and which I can't.

So I like the idea of making the front wall open plan,

because it makes it a lot nicer living space,

but it all depends on the budget as to what the costs are likely to escalate to by doing it.

Whatever option Bob chooses, he's planning for a two-month turnaround.

He already has tenants lined up for it when it's completed,

but this is not his first involvement with THIS flat.

Do you know about the history of this property?

Erm, I viewed it three years ago when it was on the market.

It was on the market, I think, for around about 90,000 at the time.

-Oh, wow!

-I know it changed hands at 85 in 2006.

How did you sort of stumble on it in the auction?

Looking on the website, it just happened to come up - there it is.

And I thought, "That's on the market, best to go and have a look at it."

Didn't actually find time to view it, so I went to the auction blind.

-And was it OK?

-It was OK.

It's OK, it's not as bad as it could have been, but it is obviously

quite a bit worse than it was three years ago.

And it could have been very much worse than it was three years ago.

Yes, but bearing in mind someone was living in here recently

it couldn't be THAT uninhabitable.

Well, it seems like Bob may well have backed a winner with this flat

above a bookies', but will he fall at the first hurdle when it comes to sorting out the internal layout?

You can find out later in the show.

Coming up...

On the Isle of Sheppey in Kent, there's a large building with an impressive facade.

But what does it hide?

Did Bob's renovation on this two-bedroom flat in Exeter

leave him with more than just added value?

I managed to get myself a throat infection, even though I'd worn all the masks.

But first...in South London,

did Iris manage to get this flat to bloom?

We return to Earlsfield in South London now,

and the two-bedroom ground floor flat which seasoned developer Iris bought

for £240,000.

# I've never known a girl like you before... #

Helped by her three daughters, she was planning to refurbish the flat,

possibly for her daughter Olivia to move into.

MUSIC: "There She Goes" by The La's

Now, six months later, we're back to see the result of this family's hard work.

Let's start round the back with the garden,

which is shared between the upstairs accommodation and their flat.

It's been re-turfed and clearly divided,

and a new patio has been laid.

Inside, the fireplace and the smoke-stained walls

of the bay-fronted living room have been transformed.

At the back, although the wall still remains in the kitchen diner,

the room is now a clean, contemporary space.

Originally we intended to put French doors through here to the garden,

and knock this wall down here back to here to make it a nice, large kitchen.

But when we spoke to the freeholder, the total expense would have been about £5,000, so we decided that was

an unnecessary expense so we didn't go ahead with it.

But in fact it's turned out very well because we've got a nice wash area

which is cut off from here, and this is a nice kitchen diner.

The two bedrooms have a very opulent feel to them,

with chandeliers and swanky curtain tie-backs.

And the wallpaper feature walls continue into the living room.

What I particularly like about this room is it's lovely and light and airy and very spacious.

And lovely big windows, so there's a lot of light comes in.

And I love the way this is blended, the wallpaper and the mirror and the fire -

the way the whole thing is blended together with this lovely soft background colour.

And as for this, this was an absolute nightmare.

It took Lavinia and I four hours to unravel all these tiny little balls,

and we had to take each ball off

and pull the wires out and then reassemble it again.

I mean, it looks absolutely gorgeous when it's lit, but it was a terrible nightmare!

There is undoubtedly a very high level of finish throughout the flat,

with personal touches provided by the whole family.

Well, Olivia chose the emulsion paint throughout,

and I had the ultimate decision on the wallpapers.

And Lavinia designed the bathroom. So I think she did a very good job.

No question about that.

Tiled top to bottom with a new suite and a radiator to warm your towels,

it just needs to be connected to the plumbing system.

But Iris missed one crucial detail about the flat

which landed her in hot water.

Big mistake, yeah. I didn't even notice that there wasn't anything here.

Didn't notice it.

And it was a shock when the plumber said, "There's no central heating."

And the boiler was going to cost £1,000 etc. But anyway we went ahead.

It was a bad mistake, but I won't make that one again!

Well, you live and learn.

But how's the budget stood up?

Iris had hoped to carry out the refurbishment for £20,000.

So, did she manage to stick to that figure?

We actually spent about 24,000 doing the property up.

And I estimate we've actually spent about 30,000 together with the solicitors' fees etc.

The flat has been completed to a high standard,

with some very individual details. So what's the plan for it now?

My daughter Olivia is planning to move in.

They're getting married in December, so she plans to move in then.

Meanwhile, we've decided we'll let it for the period before they get married.

To find out what rental the flat will generate,

we invited two local estate agents to take a look.

What I particularly like is the layout,

especially the kitchen/breakfast room.

Very spacious, and fantastic for entertaining.

I think the transformation that has taken place with this property is excellent.

They've done it up to a really good standard - slightly above average -

and I think it's going to appeal to

a lot of prospective buyers.

I particularly enjoyed the layout.

It's very much free-flowing, particularly the kitchen/breakfast room.

Very spacious, and perfect in the terms of entertaining.

The kitchen's fantastic. They've done a really, really good job.

And it's done in a way that will appeal to the most audience.

And the garden as well. Fantastic, perfect for those summer evenings.

What I dislike is the way they've put their own personal stamp

with the chandeliers and the curtains.

They should have kept it neutral, contemporary and in line with the property.

But the flat IS in great shape.

I'm sure there'll be plenty of keen prospective tenants.

What income could Iris achieve until her daughter moves in and makes it her home?

I think it's going to be very popular for rentals, because you have got the two double bedrooms.

If I were to put it on for rentals I'd put it on for £1,400 per calendar month.

I would value this property for the rentals at 1,300 per calendar month.

That's very good. I didn't expect that.

I was thinking probably £1,000, £1,100 or something.

Everything's down. Property's going down, rents go down...

So I'm very happy about that.

What about the market value for the flat now?

Remember, Iris paid 240,000 on auction day,

and her renovation budget stretched to £30,000 including legal expenses.

For sales I would market this property at £365,000.

If I were to put this property on the market today, I'd be putting

it on at £350,000, to achieve offers anywhere in the region of 340,000.

I would feel that was a bit low.

But I think if we could get somewhere with 350...that would be great.

350, 360, I think that's fantastic.

After the hard work that Iris and her two daughters have put into the flat,

I bet she'd like to put our feet up and enjoy some well deserved rest.

That is the plan, I presume?

No!

We've actually bought another one at auction. So we're going to start on that next week,

we've got the architect round already.

So it's all hands on deck again.

Here we go again!

Our next property takes me to the Isle of Sheppey, across its new £1m bridge

that not only makes it more accessible for residents, but more attractive to investors.

# They say the neon lights are bright on Broadway... #

I'm here in the centre of Sheerness, on Broadway, so get your jazz hands ready

because the property I'm here to see today is this!

With its wonderful 1920s facade, wide entrance hall... and given our location, you'd be

forgiven for thinking we're here to view an old cinema or music hall.

But no, this is a former Methodist church.

And it was on for a guide for 160,000 to 165,000.

Let's shimmy inside and have a look around.

It may be drizzling but the exterior certainly doesn't rain on my parade.

I think it's a show-stopping facade.

But will the big opening be a hit or a flop?

Well, what an entrance!

It's certainly more ministerial than music hall in here.

I mean, this place is vast. You've got lovely high ceilings,

and row upon row of these beautiful pews.

Although it doesn't feel old and musty, it really does smell like a church.

You've got the altar and the organ still in place,

and some splendid but simple stained glass windows over there.

It's a majestic space. But it doesn't end here.

Thank goodness. This place is everything I'd hoped for.

It's perfectly intact.

Wonderful wooden pews, great balcony and a really good sized space.

This section is just part of the auction lot.

Because behind the main hall, you have room after usable room.

There's a potential nursery or creche.

There's a general hall, ideal for serving teas and coffees.

And there's even a kitchen.

It might need some fixing up, but it wouldn't take a miracle to make this place light,

bright and very functional.

And if that wasn't enough...

Upstairs you've got another vast space.

And you've got a stage!

This takes me back to my old dancing school days.

This is another infinitely usable room in pretty good condition.

So you've had the tour now. It's time to put my developer's head on.

Old churches make fantastic living spaces.

And it's not unusual to see them split into beautiful, characterful flats.

That's a thought. But it wouldn't be easy to gain planning permission.

And in this slow market, it's not the best idea.

So what other potential uses can you see for this building?

MUSIC: "Fame" by Irene Cara

Bearing in mind there's a stage here, what about a drama and dance school?

That would fall under the category known as D2 usage.

This building is currently D1, so you'd have to apply for a change of use.

But if it was to become something like a nursery, creche, art gallery

or library - well, then, it's ready to go.

Of course, you could still use it as a church.

So what if you were a brave developer, ready to take a punt on an amazing building?

Buy now, apply for a change of use later...?

How about turning this into a bar, a nightclub - maybe a casino?

Well, you can put those plans back in their box, because there's an old restrictive covenant on this church,

which states this building cannot be used for the sale and consumption of alcohol,

as a public dance hall, there's to be no Sunday trading, no gambling,

and no religious use outside the Methodist Church without their permission.

Which is more than a hassle!

It actually lowers the value of the building and severely restricts its use.

Now, covenants CAN be lifted, but if somebody bought this building without doing a good bit

of research first, there would be some serious gambling going on!

Now I'm really scratching my head. 160,000 to 165,000 may not seem a massive amount of money

for such a sizable space,

but it's a small fortune if there's not much you can do with it.

So I need some help here.

Perhaps an estate agent can provide some divine inspiration.

Well, at the moment, obviously for investment purposes,

it would be perfect to turn into apartments and residential dwellings.

The problem is whether you would achieve planning for that.

On the island there is nothing that I am aware of that would operate like an art gallery, a museum,

exhibition centre, things like that and obviously you would be able to operate that from these premises.

And you've got this size there as well.

Buildings such as this are always hard to value, but what sale price could be put on it, once done up?

It's worth different amounts to different people

but in regard to value, I'd be thinking between 160-170.

So at a £165,000 guide price, this is unlikely to be a big money-making venture.

This former church represents a rare opportunity for so many

different people, but subject to both new and ancient restrictions.

Whoever takes this on could find it both a spiritual experience and a real battle.

Let's find out who that was.

Let's move on to Lot 49, which is a sale on behalf of the

trustees, it's the Methodist Church at the Broadway in Sheerness in Kent.

Where do you want to start on this?

A bid of 150 to start me? Start low and see where we go.

Doesn't matter where we start.

It's where we finish. Is there a bit of 150? 150?

150, I'm on the way, straight away.

£150,000, 155?

At 155. From somebody else?

Straight into the room ladies and gentlemen, at £150,000,

we're going to sell it if there's not any further bidding.

155, if you like. 155.

Otherwise, it's with you, sir, at £150,000.

For the first time at £150,000.

A second time at £150,000.

If you're sure you're all done, it's the third and final time at £150,000.

It's yours, Sir, for 150.

And quite unusually, after just one bid,

the old Methodist Church on Sheppey was bought for 150,000 by,

well, by another church - the Community Church on Sheppey.

This one is led by Paul, who oversees the pastoral needs of his community.

He's put aside pulpit for property for a moment, so I took a pew beside him to find out more.

# Oh, happy day! Oh, happy day! #

Paul, this is such an amazing building.

Why did you want to buy this church?

We as a church, the Community Church on Sheppey, have outgrown the premises we are currently meeting in.

We're getting more than 100 people for morning service and we just needed somewhere bigger.

So what was it about this place that attracted you so much?

Well, as a congregation we had a couple of marriage ceremonies conducted in this church.

My wife as a child worshipped here with her family.

A number of our people have attended clubs

and various other facilities that were run from this centre.

So this is already a church that has been part of the community

for a while and was therefore a logical purchase for the Community Church.

But I sense that it might not just be a case of making a few general repairs and moving in.

Paul and his congregation will want to make their own mark here.

Paul, as it is at the moment it is quite a traditional sort of church, lots of pews,

you've got the altar - are you planning on changing it around at all? Can you do that?

There certainly will be some changes because the whole atmosphere

in our kind of church is very more contemporary in terms of the music

and the style and we certainly wouldn't feel entirely comfortable with the pews, for example.

Really? They're not that comfortable, I have to say!

I keep sliding off this.

We do have plans to move the pews out of the building, to add more comfortable seating.

But there is so much we would like to retain here.

The stained-glass windows have a beauty of their own and we wouldn't

want to detract from that - we would want to keep them as they are.

There's certainly a lot of beautiful woodwork here as well.

-The organ, we were uncomfortable with the idea of an organ when we first came here.

-Why?

Because it is just so out of place in relation to the more contemporary feel, to our style of worship.

However, having said that, a number of our members have taken opportunities to play it.

They feel very happy with it and I think really, the consensus

is we want to keep the organ and see how we can use it in the future.

Certainly we'll be looking at wall-to-wall carpeting and a more contemporary feel to the decor.

So a very modern, homely feel about it?

That's what I'm trying to say. A modern and homely feel to the place.

The covenant on this building originally stated that there were

rather surprisingly limitations on its religious use.

But prior to auction, the two churches agreed

that this part of the covenant at least could be lifted.

This meant that Paul and the Community Church could fully utilise the building.

Tell me about the little theatre you've got at the back, if I can call it that, the stage at the back.

It somewhere that I remember as a child doing little school dance performances on.

Are you going to keep that as it is?

There are so many little cubbyholes here,

aren't there? That is one of my favourite places.

-Me too!

-It has in the past been used as a working theatre, I believe.

We have several people in the church who have volunteered.

They say we would like to reinstate that area as a working theatre, to get it all up and running again.

Our youth are particularly interested in that area for their own gigs - they have their own band, and so on.

So, yeah, I think that's going to be a viable proposition for the future.

There's going to be no holding Paul back.

He really wants this building to be a vibrant hub of community activity.

There are plans for a coffee and tea area in the rooms

at the back and perhaps a children's club, or even a creche.

But there are other, more mundane things to tackle, such as the roof and plasterwork.

So it's no small task.

There have been moments when I've felt the scale of the work

is unimaginable, an enormous amount of work that needs doing.

It's been encouraging, the way that people within our own church have pulled together.

We have a team of people who are tradespeople, builders,

people running their own businesses, who have all come together and who have

shown a willingness to be involved

in the project and, in all cases, to give their services free of charge.

So, Paul, if you were to sum this up in a few words, what would you say?

It's a dream come true.

It's a community working together, pulling together and I just look forward

to the future because I think we have an exciting future in this building.

You're going to have a happy time here.

-Thank you very much.

-Well done.

-Thank you.

# Oh, happy day. Oh, happy day. #

The beauty of this project is that it's not a single developer's vision,

it's a community's dream, and many hands do make light work.

However, I hope the issues with the roof aren't too serious and the congregation's budget isn't blown.

You can find out how it all goes later in the show.

Time to go back now and find out if our buyers have risen to the challenge.

Or will they have that sinking feeling?

Are they proud of their achievements? Let's find out.

Earlier, I was in Exeter where I met Bob,

a local developer who had snapped up this two-bedroomed flat for £61,500.

It may have been above a bookie's, but it certainly wasn't a thoroughbred.

With yellow nicotine stains, a grimy kitchen and a bathroom that ranked as one of the worst ever,

this project was going to need all Bob's experience to get it running again.

So, armed with a budget of £5,000 and two months to do it,

Bob was going to see if he could transform this from a no-hope outsider to an odds-on favourite.

We came back two and a half months later.

So was it a contender for the donkey derby?

Well, no.

The living room is now redecorated with a fresh coat of paint and new carpet.

And the bedroom? That's been renovated in the same style.

And in the kitchen, not only has Bob installed new units, but by opening

up the kitchen into the hall, he's revitalised this area.

As you can see, it's a complete transformation.

Lots of usable space. Enough room to put a table and chairs in.

Nice, social room. I'm very pleased with the turnout.

Bob has utilised the space here well and given the kitchen a new, more comfortable feel.

But something that was far from pleasant was that bathroom.

There was a sunken bath in there, a hideous blue thing. We've taken that out.

I would have liked to put a bath in, but because of this chimney breast

we've had to settle for a shower room, which is quite nice and bright.

To remove the chimney breast, it's a leasehold property, so I would need permission from the freeholder.

Putting a shower room in was easier than taking the chimney breast out

and put a bath where the chimney was.

Obviously, that would have been the best answer, but a lot more cost.

And bearing in mind it being rented, it'd be pointless spending the extra money.

The chimney breast did make this bathroom a tough problem to solve.

Financially, I reckon Bob's chosen the right route.

He also decided to replaster the whole flat,

which is almost complete, except for the front bedroom.

He also replaced the main bedroom ceiling, but that was one job he came to regret.

We had an issue with the ceiling when we took it down in the other room.

I got a throat infection. Even though I'd

worn all the masks, it still managed to get in.

So I was off for three weeks, so hence it's not quite finished.

That throat infection will stretch his turnaround from two months to just under three.

Hard to swallow if it extends his original budget of £5,000.

The budget's coming in at just under £3,500 at the moment.

There's a couple of bits to finish.

So I would expect it to be in at well under four.

You can keep costs down by doing a lot of the jobs yourself, all the donkey work.

Get the tradesmen in to do their bits,

and prepare it for them, if you like, to make life easier for them and quicker.

That way, you're paying for less of the tradesmen's time.

Bob bought this flat for £61,500, and that renovation spend of around

£4,000 means his total costs so far are £65,500.

Throat infection aside, this conversion seems to have gone pretty smoothly and Bob already

has prospective tenants lined up, with a rental income of £575 a month assured.

So it seems like this place will soon be paying for itself.

But is Bob getting the best out of his investment?

We asked two local estate agents what they thought.

'I think the current owner has changed the property to a certain extent,

'mainly in terms of making it cleaner,'

brighter and using more contemporary items

including the kitchen, for example.

My first impressions

are that it's not the largest flat in the world, but it has been done

on a sensible budget, and ideal for the market it's aimed at.

'It's a good size dining kitchen, ideal for the flat and well-fitted.'

The bathroom was always going to be a tricky one, due to the layout

and the chimney breast causing that structural issue.

What the vendor has done in terms of creating a shower room is as best he could expect.

Do the agents think that Bob has backed a winner here?

The property is a good investment. It's not in the most desirable area,

but there is a very good return to be had on it.

With tenants ready to move in at a monthly rent of £575, is Bob getting the best return on his investment?

I would expect a rental income of about £550 per calendar month.

On the rental market, we'd be looking at around £550 a month.

That's probably about right, but we're obviously achieving a bit more than that.

What about the resale value? Remember, Bob has spent a total

of £65,500 on this flat, so was it money well spent?

With the way the owner has improved the property, I would suggest a resale figure of around £80,000.

On the open market, we would ask a figure of £85,000.

That's about on the mark with today's market as it is at the moment.

Hopefully, it will go up a bit more as the market picks up.

That's a possible pre-tax profit of just under £20,000,

which is fair-to-good going for this flat above a bookie's.

For his next gamble, what sort of runner will Bob train up?

Similar, but houses rather than flats.

I prefer housing rather than flats, because you get the garden and bits and pieces.

This was a cheap property, so a good investment.

Back on the Isle of Sheppey,

it seems that not all areas of life are in recession.

A new bridge has helped the area grow, and the community has seen some economic upturn.

So when a former Methodist church went up for auction,

it was snapped up by the local community church for £150,000.

Was it the answer to all their prayers?

We as a church, the Community Church on Sheppey,

have really outgrown the premises that we're currently meeting in.

So we're getting something like over 100 people for a morning service, and we just needed somewhere bigger.

So it was out with the old and in with the new as Sheppey Community

Church went about converting the building to meet their needs.

Four months on, has the first stage of the resurrection been completed?

Well, the name indicates signs of progress.

Inside shows careful changes have been made to meet the Community Church's requirements.

As Paul, the leader of the church, explains.

We didn't want to make any significant alterations to the church.

We wanted to retain some of its original features.

So for example, we still have some of the stained glass windows here.

We have retained the organ, and much of the original woodwork

is still in place where the choir stall once would have been.

The man to get to grips with the work was project manager Vincent.

We fell in love with the building.

It's got such character and it's got such a great feel, and we've really done that.

I think the pews are the only thing we've had to lose.

It was rumoured amongst the community that they was the most uncomfortablest on the island,

so we haven't offended too many people, I don't think.

It's always a shame to see old character features go, but it does

make sense not only for the feel the Community Church wants to evoke, but for a good, practical reason.

It makes the space more versatile, as the new chairs can be moved around.

The vast majority of the work has been done by members of the church.

We have a number of people who are in trades.

Maybe they run their own business.

They've given of their time voluntarily, and on many occasions materials have been freely given.

It has just been such a fantastic time. Everyone just mucking in.

The food that was here - people were in the kitchens, and the team effort was immense.

On Saturdays, we had 30 or 40 people.

It was like an ants' nest here, just people everywhere, trying to find jobs for everyone.

It was such fun. It was an experience.

Everyone loved it. It's been really great.

Most of the work has been on the main church area, and the facilities needed to run it.

So although the Sunday school area has been tidied up

with a lick of paint, the stage-cum-theatre room hasn't been touched yet.

But it's been a race just to get this far.

I remember the evening before we began to worship here, a sense of

excitement as people were working late into the night.

The work was finally completed before midnight.

Everybody was thrilled and excited and thought

"Yeah, we can open for business the following Sunday morning".

Despite the last-minute rush, the doors did open on time.

When we met together for the first Sunday in our new building,

it was quite an awesome experience for everybody.

The church was full to capacity.

In no time at all, we began to be a little anxious, because we were running out of seating.

There was a real sense of excitement

on the part of everybody who was here, a real feeling of commitment to the project.

To some extent, people were patting one another

on their backs, saying "Yeah, this is a job well done".

# So take me as you find me... #

But after the fanfare of the successful opening, has the move been able to maintain momentum?

This has made a big difference.

We've seen a significant increase in the numbers attending our church on Sundays.

And, yeah, I think the building has really helped us to consolidate as a Christian community

and look at all the exciting ways that we can move forward to reach out to our local community.

The church may have increased its congregation numbers,

but has it increased the property's value?

The total spend here is now about £175,000.

I think they have a brilliant job.

They've replaced a lot of the major parts,

things like your double-glazing.

And I think, with the character

it currently holds, and still being a bit modern, it's great.

At this stage, the Community Church have spent £25,000 to get it ready for service.

With a £150,000 purchase price,

they're already committed to £175,000. How does it stand now?

Today I would probably put a value on this property of around £170,000 to £175,000, due to

the market not increasing too much, so the value wouldn't have increased a great deal since last time.

The valuation of the building, whilst of interest to us,

isn't of prime importance, because for us,

we were so passionate about wanting to retain this as a place of worship.

Paul is, of course, right.

This was never about money.

This building is priceless to them.

There have been moments, I'll be honest,

when I've looked at this building and I've stood in this worship area

and thought "What have we taken on?"

It seemed like such an enormous project for us.

THEY SING

We're just so pleased that we carried this forward.

We wouldn't be without this building now.

And I'd say "amen" to that.

That's it for now. Join us next time for more Homes Under The Hammer.

-Look forward to seeing you then.

-Goodbye.

-Goodbye.

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