Episode 63 Homes Under the Hammer

Hello! Now, if you love property like Lucy and I, it's hard to forget about it,

even in today's current difficult market conditions.

Absolutely. You may find your dream home on holiday, a country walk,

or browsing through an estate agent's window.

One way to get your pulse going is to come along to the auctions!

When it comes to property, everybody had different requirements.

You may be buying a new home, or developing to rent out.

For some, location is the key. For others, character.

For others, it's about how much money a property can generate.

So let's see what properties are on today's show.

In London, there's a flat to take your breath away.

Plus, of course, you can save on gym fees!

I give this house in Kent a full inspection and discover...

The property lacks a few things. But it makes up for it in other ways.

And in Greater Manchester, it's not just property prices that are collapsing!

Wow.

That's not good!

All these properties have been sold at auction. We'll see who bought them

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

I'm in London today, just a short walk from Borough Station on the south side of the Thames.

If the street signs are anything to go by,

there might be some money to be made here.

So the location gives absolutely no cause for complaint.

The whole area has gone up in leaps and bounds in recent years.

Unfortunately, the property that's up for auction hasn't!

It's four floors up

and no lift!

Better be worth the £145,000 guide price!

Perched on the very top, the flat is part of a larger complex.

Neighbouring properties are in both period and modern styles

and I'm sure some of those have lifts.

Oh, well, onwards and upwards!

PANTING

Well, like most apartment complexes, you don't own the freehold

and there's a £250 ground rent.

Plus £600 for apartment service fees.

For central London, that's not bad at all.

Plus, of course, you can save on gym fees!

Tell you what, you're not gonna be watching my workout video any time soon!

Seriously, those stairs are a nightmare

and would rule out a fair number of people from living here.

If you wanted to rent this out, it's important to consider.

What have we got? Straight through the front door and you're greeted by the loo!

Fantastic(!)

And a fairly dated-looking kitchen. Not a bad size, I guess.

A very old boiler you'd want to sort out.

Units obviously need playing around. You'd have to be creative with design

when it's such a small space.

But I do like the big window there.

Not exactly a huge amount of space.

This is your main room. This is your living room/bedroom.

Couple of things I'd do straight away.

Strip the floorboards back. That would lift it in here.

Though you've got fair sized windows so it doesn't feel dark and dingy.

A couple of nice features. Open fire and choose your furniture well.

Maybe a pull-down bed. It would seem like a good space.

I'm not sure you could change the internal layout of this place much.

It may be worthy of some consideration.

But one thing I would do is sort out this window.

Maybe it's just me cos I get vertigo, but this is very low

so I think that's a potential safety risk for children when this is open in the summer.

And there's another area which is not particularly child-friendly, but a great bonus.

Wouldn't this make a perfect city crash-pad?

In France they'd call it a "pied-a-terre", or "foot on the ground"

which, given that we're four storeys up is probably not that accurate!

But with views like this, who cares?

This roof space is actually a communal area for the entire block.

But whereas others have to climb to it, the owner of this just strolls out the back door!

-#

-Let me tell you now

-#

-When I come home feeling tired and blue

-#

-I go up where the air is fresh and sweet

-#

Well, I may feel on top of the world,

but does this flat have potential uplift

or is its head too much in the clouds?

What does a local estate agent think?

I think certainly there's potential to create a one-bedroom flat

from the existing studio design

by making the kitchen area here, which is a reasonable size,

into a bedroom.

And then putting a really small basic kitchen into the main living area.

That all seems possible, but it's a bit more hassle and cost.

So, would it be worth it?

What kind of rent could you get?

As a studio flat, 800, 850 a month.

But as a one-bedroom, potentially 1,100 to 1,200 a month.

So the estate agent thinks changing this from a studio flat into a one-bed flat

could increase its value by 40,000

and potentially the flat could resell for close to 200,000.

It goes to show that size isn't everything.

It's small and it needs a bit of work,

but what sets this particular property apart

is its location and this wonderful terrace.

The views, great.

Well worth the £145,000 guide price. Let's see who went for it at auction.

Lot 76. Marshalsea Road, London SE1.

100? 100 I've got.

Anybody else? At £100,000.

100 and how much? 105? Thank you. 105.

110.

115.

116? Give you a bit of a hand.

116. 117.

118.

119. 120.

121.

122.

-123.

-123.

124.

125?

126? Lose it for 1,000?

One more? 125 is with you.

It's against you and against you. It's with you at £125,000.

125 for the first,

125 for the second,

125 for the third and final time.

All done?

Sold. 125. Well bought.

So, for £125,000, £20,000 under the guide price,

the new owner is Ray.

He took a deep breath and climbed those stairs to meet me in the flat.

-Ray, very good to meet you.

-Martin, hello.

-Congratulations.

-Thank you.

Why did you want to buy this little place?

It's a bit small and compact.

I thought it was something I could achieve to turn around, modernise.

-For what reason?

-I wanted a little pied-a-terre in town.

-This fits the bill nicely.

-Somewhere you're gonna use yourself?

-Yes, but I'll also probably let it out as well.

-Right.

-Where do you live now?

-In Edinburgh.

-Edinburgh?

-Yes.

-OK.

It's a bit of a commute!

This flat is hardly on his doorstep, but Ray has bought property in London before.

But when he did that, he was living in the south of England.

What's brought him back to London?

About 18 months ago, I bought a little property in Croydon

and it was really to be closer to my mother, who was at the end of her life.

I lived in the house for a month, then she died,

but I carried on renovating the property, managed to turn it around,

sold it and bought this shortly afterwards.

-Is it your job, being a property developer?

-Not really.

No, it's a sort of retirement type of thing.

I have been a photographer and I've been in cinema more recently.

-Tell me more.

-I was working on a DIY publication as a photographer.

-OK.

-That got me interested in the property renovation aspect some years ago.

Having snapped this flat up for 125 grand,

how does he picture it looking?

It makes sense, I think, to make it into a one-bedroomed flat.

It is gonna be a small bedroom. We're in the kitchen now, which I think is unnecessarily large.

So I feel the kitchen can move into the living space.

A small, compact kitchen, but it should work.

The washing facilities will be in the bathroom

and this will become a small double bedroom.

Who's gonna do the work?

-Builders.

-Get people in.

I'm afraid so. Unlike Croydon, I won't have enough room to live in it while I'm doing it

and it's going to be very much stripped out.

How much will it cost to do the work?

I've had two quotes so far. The first one I had was for about 14,000,

which I thought was maybe a bit cheap.

-Cheap?!

-Yes.

A studio flat? What are they gonna do for 14 grand?

The second quote was for 40.

40?!!

I'm afraid so. I'm going to do it high end, but not that high end!

-What kind of specification did you put in to get a quote for £40,000?

-It's high. It's a lot of money.

-I'm hoping...

-How? How? How? How?

-You mean a bespoke kitchen...

-Yes.

With, um, yes...

-A waterslide out the window down to the car park!

-I could do with that!

Right!

No, it's just a very high end renovation.

So, Ray may have a flat on the top floor,

but I hope his budget doesn't go through the roof!

So, Ray moving the kitchen into here,

obviously the right thing to do.

It increases the rental potential and also the value of the property.

I'm a bit worried though about how vague he is regarding his budget

and how much he's gonna pay his builders.

Find out how he gets on, later in the show.

Today, I'm going to Rainham in north Kent.

It's one of the Medway towns

which include Gillingham, Chatham and Rochester.

It has a bustling town centre surrounded by picturesque lush countryside.

This is South Bush Lane.

The properties here were built around the 1920s after the First World War

specifically for servicemen returning from the front line.

These were meant to be homes for the heroes

putting them into houses that were fully sustainable.

Over the years, farming on the land has died out,

leaving the properties with sizeable gardens.

And from the looks of things, this is a pretty decent house, too.

Here it is. I'm quite excited about this one.

It's a two-bedroomed house with a guide price of 300 to 320,000.

It's not the biggest house in the world and two bedrooms limits its market.

But it also comes with a rather ramshackle barn

which may have development potential.

I could tell from the pebbledash exterior that it was gonna be dated.

But it really, really is.

But it has a lovely open feeling as you walk in.

The kitchen is here, with an old oil-burning stove in the corner.

But it's a fairly big space.

There's two downstairs reception rooms, a pantry area through there,

and as you can see, these old beams that date back to the '20s.

They're not beautiful, so I might be inclined to get rid of those.

A gas fire over here.

There's no central heating in this place at all.

It's good, though, because I can't smell any damp.

But overall, a lot of money will need to be spent down here.

Yes, quite a "to do" list.

First central heating, then all the walls need re-plastering,

along with a complete overhaul throughout.

That would include new ceilings, a kitchen and probably updated plumbing and electrics.

The only possible bonus is there is double glazing.

Upstairs there are three rooms.

Two really good sized double bedrooms and a massive bathroom.

But with the smallest bath I think I've ever seen!

It really is tiny. I think this bathroom could do with some remodelling.

Once you've done that, it will be a great space up here.

Although there are only two bedrooms, they're both a good size.

They're quirky in shape, not the standard box you often get these days.

But I want to see if there's any way of getting more rooms in here

to make this place just bigger.

OK, adequate, but fairly uninspiring.

So this is where I consult my auction catalogue in the hope it tells me something exciting!

Let's have a look.

It doesn't let me down. It says "the property offers potential for extension", which it does.

"..to provide a much larger residential property subject to the necessary consents."

That is the sort of news I wanted to hear.

Looking around the house today, I think it would really benefit from extra space.

Because you've certainly got a lot of it out here!

This plot size adds a whole new dimension.

There's scope here for extending the existing house

or perhaps even knocking it down.

You could put something more substantial there to complement the setting.

I think you'll agree the property lacks a few things.

But it certainly makes up for it in other ways. Look at that view!

If you want o get away from the urban sprawl and retreat to the country,

this might do the trick.

Is it worth the effort required to bring it up to date?

What does a local estate agent think?

Subject to planning consents and everything else,

I think the property lends itself to be extended.

I would imagine by that a three- or four-bedroomed prop

is the likely outcome with three receptions downstairs.

The property has lots of potential.

The land around does offer scope for development,

but extensions cost money.

Would they really increase its value by much?

The property, once it's been modernised,

I would expect to achieve between 350,000 to 400,000.

If you were to get planning permission and extend to a four bedroom,

ideally with another reception room downstairs,

I can see the property achieving anywhere round the 500,000 mark.

That's a significant mark-up.

With a guide price of 300 to 320,000,

extending the property is the only viable way of making it a sound investment.

This house was built for a soldier coming back from the First World War.

A house and land to help him re-engage with everyday life.

With that kind of history attached,

one hopes it went to a deserving bidder.

Someone who's ready to really love this place.

Let's see who went for it in the auction room.

We move to Lot 174.

It's guided at 300 to 320.

£300,000 anywhere?

£300,000. Thank you, sir.

£300,000 is bid. 305, do I see?

305 in a fresh place. 310, sir?

310 I have. At 315?

315 is bid.

320. 325?

322, if it helps.

322.

And 325? 325 is bid.

326.

That shows how tight they're working to.

327 is bid. 328.

And 329.

And 330. 330 is bid.

332.

334?

No? Are you sure?

At 332, then,

for the first time it's being sold at 332,000.

Being sold for the second time at 332. Your last opportunity.

Bid is here at 332. Third and final time. Are you all done?

Sold at 332,000.

The buyer clearly delighted with his £332,000 purchase was Andrew.

He bought it as his new home and joined me there to tell me more.

Andrew, I love going to auctions when the person that wins the property is so excited.

You just went, "Yes!"

That was probably because this was the first time I'd bought a property at auction.

I'd done lots of homework beforehand.

I had all of the deposit sorted out, the survey had already been done,

the mortgage was in place.

I'd looked at the property so I knew exactly what I was buying.

By that stage, I'd probably invested nearly £1,000 before I'd got to auction.

Andrew is clearly extremely organised and meticulous.

Unlike so many other auction buyers, he was leaving nothing to chance.

What do you actually do as a job?

I work for the Ministry of Defence.

I get involved with bits and pieces.

I've experience of project management in various countries doing some difficult things.

So you're very thorough in your work.

Definitely. I think planning is absolutely everything. It's crucial.

You've got to do the background homework and put everything in place. It takes time,

but at the end of the day, we have a saying in the military,

it's preparation which is absolutely essential.

If you go in there well prepared,

there's a good chance you'll come out the other end with what you want.

Andrew was also attracted by the military history associated with these houses.

So what strategy does he want to put into action here?

I'd like to be able to keep the property as it is.

I don't intend to knock it down. What I need to do is take it up to current thinking

as far as making it a really good family home.

But I need to do a lot of work to make sure that the insulation materials,

all of the technologies that are available today are used

to the best possible use of the property.

Are you thinking of a real eco-friendly house, solar panels?

Definitely. I want to go one step beyond just putting energy-saving light bulbs in.

At the end of the day, this property would benefit from sustainable energy resources.

It would benefit from a sewage treatment plant.

It has no heating, so you need to look at the whole eco package.

I'm working on the premise

that what you really need to do with a property like this is start from

first foundations.

So though I'm not knocking down the property, I have to insulate it

and that's going to be complicated.

To get a better idea of what it's going to look like,

we took a march into the garden to inspect his architect's plans.

Let's talk about the property. You can add on from 25% square footage of the property.

-Yes.

-How much are you actually going for?

That's a guideline. 25% is a guideline.

As far as the planning department are concerned, they're looking for a modest extension.

I'm looking for something which gives a footprint of an additional 65%.

-OK.

-But the trade-off is this property will fit

absolutely superbly into a rural location.

I love the way it's designed from the outside with these wonderful doors coming out.

-That will take in this amazing view.

-Absolutely. With a view like that, it's important to maximise it.

You've got contemporary fittings.

-A galvanised steel balcony with the timber together.

-Yes.

-Working in harmony.

-That will look fantastic.

-The design we're looking for is modern, but in keeping.

We didn't want anything which was too twee.

How much is all this going to cost? What budget have you got to spend on the work here?

I'm working on a budget at the moment of somewhere between 100 and £120,000.

I'm under no illusion that a lot of the money

will have to be spent on the sustainable energy,

the new energy resources, sewage treatment, rainwater harvesting.

-It's very expensive to put in.

-If you chose not to go along this route, it would be cheaper.

It would, but I think if you live in this sort of environment,

because we're looking towards the future

and sustainability, it is very important that you plan to the future.

This isn't a design for today, it's a design for 20 years hence.

The first battle ahead will be to get the plans passed.

Then the tricky part of the mission will begin,

trying to build and project manage this house while also holding down a full-time job.

How fitting that this house was bought by Andrew.

To pass back into the hands of someone in the military has a real resonance.

As you can see, he's really fallen for the place.

I wish him the best of luck in his plans for extension.

If he is fortunate enough to get it,

he will really do this house justice.

Join me later in the show to see just how he gets on.

Coming up: In Greater Manchester,

there's a house where history seems to be repeating itself.

Love the wallpaper! Apparently, it's back in fashion!

Back in Kent, we discover whether Andrew enjoyed the challenge

of updating his 1920s house.

This has been an absolute labour of love for me.

But first, did Ray's budget go sky-high?

-The second quote was for 40.

-40?!

Not far from the City area of London is Borough.

Here in the shadow of some of London's landmark buildings

a flat with a lofty position was sold for £125,000.

It went to former photographer Ray who pictured this studio flat

with a slightly different layout.

It makes sense, I think, to make it into a one-bedroomed flat.

The kitchen can move into the living space. A small, compact kitchen, but it should work.

So, wind on seven months

and the new-look flat is ready for exposure.

There's a fabulous new bathroom.

The kitchen's now gone and been turned into a bedroom.

So far, this photographer's flat is looking very positive!

It was completely back to shell.

The walls were completely stripped out.

It was dry-lined before. All that was removed, the battening was removed,

the ceiling was down. So it's all been insulated now.

It'll be a nice little thermal box.

The floor is about the only original thing that's left.

The boards were sanded.

The windows have been replaced - the two metal windows have been replaced with double-glazed units

with security glass.

It's virtually a new-build.

And best of all, there's a sleek, modern kitchen diner.

The kitchen is in what was the studio room.

I managed to fit everything in.

No need for a washing machine in here. It's in the bathroom.

It's a small kitchen but it all fits nicely.

The sliding door goes behind the wall.

It has to be a fire door. To shut it, it's just touch and go!

Ray has continued with the high specification by fitting an air conditioning unit.

Though personally, I think the best air conditioning isn't inside the flat.

Here we have the roof area, which I wouldn't say is mine.

But it's a nice communal area.

I'm able to sit out here if I wish.

A few plants around. Got the air conditioning unit here.

There's running water, power, light.

I'm going to put the security cameras in.

The main thing is it's a fantastic place to be!

Ray's a photographer by trade and never intended to do the majority of the work himself.

He employed builders to do most of it.

But as he was based in Edinburgh,

how did he co-ordinate it all?

When Alvin and his builders were here,

I was very fortunate in that I was able to rent a flat in the same block.

I could an eye on the thing and project manage from fairly close by.

I did do a fair amount of work myself after the builders had finished.

It's been a bit of a struggle

because things were quite heavy, like the radiators and stuff.

But I've got on with a lot of things on my own.

I did have to get help putting the fridge up here!

Those four flights of stairs were always going to make the job more complicated.

Ray reckons they filled three skiploads of rubbish.

There were a lot of materials that had to go down and out as well as up and in.

So there may have been no lifts, but did Ray's costs escalate?

The cost, I thought it would be round about the 40 mark.

But I hoped to keep it below that.

But that 40,000 includes everything.

The appliances, fitting the kitchen professionally,

albeit it took a bit longer than it should have done.

I think I've got a reasonably good job done.

Let's hope so, because with a £40,000 spend,

plus the £125,000 purchase price,

Ray has over £165,000 invested here.

Do two local estate agents think a high specification for this high-rise flat

would get top price?

Yes, I think it's a very nice job.

It's very good quality. Good quality units.

Finished, it will be a really nice flat.

Very nice. Very bright and airy.

The view out of this window and at the top of the staircase is incredible.

The real selling point

is the way he's changed over the kitchen area into a bedroom.

It's made it into a one-bedroom flat which is absolutely crucial

on a space like this.

It was a very good idea to move the kitchen out of this room

to make a completely separate bedroom.

The kitchen is nicely done.

I would personally have put a fitted fridge freezer into the design.

It's quite imposing. But that could be changed at a later stage.

Generally, they're pretty positive.

Ray has spent over £165,000 in total to ring the changes here.

Will that be reflected in the flat's current value?

I'd put it on the market today at around 215,000.

We could get as much as 200,000 to £210,000 on the open market.

Wow! That's all right, then!

After the usual taxes and expenses,

Ray could see a £50,000 profit.

How does he feel about that?

Actually, that's more than I thought. I haven't made a loss!

But I think the rental route is the way to go.

I'd like to hang on to it. It's a special flat.

I'd like to keep it for a few years.

Will the rental returns be good enough to justify that decision?

I'd say you'd be looking at £850 per calendar month for rental value.

A rental per calendar month, we'd look to achieve between £800 and £820 per calendar month.

Right! OK!

That's not bad! Not bad!

I think it's going to be a goer.

That could bring in £10,000 a year

and should mean the flat will look after itself financially.

So, maybe he should snap up another soon.

Yes. I'm hoping to go back to an auction with Alvin the builder.

There's a good chance that we might actually do something together.

But not so many stairs!

Ray and his builder really seem to have clicked.

So I picture a few more properties together.

Today, I'm searching for a property in Whitefield, Greater Manchester.

It's an area well served by the M60 motorway,

giving easy access to the surrounding towns and cities.

OK, trivia lovers,

what is the connection between Whitefield, Manchester, where I am today,

and a famous children's book and cartoon?

Any ideas?

The answer is that Dodie Smith, author of 101 Dalmatians,

actually lived here.

Question is, will the property I'm here to see be dog tired

or will it have the "chihua-wow" factor?

I spotted a mix of old houses and new builds

in an area surrounded by amenities and playgrounds.

It looks like somewhere geared up not just for dogs

but also for families.

So, what was on offer?

Well, two bedrooms, end terrace, at a guide price of 45,000 quid.

Seems cheap, doesn't it?

So, would you be barking mad to consider it? From the outside,

the windows might need replacing

and there's a worrying crack that will need to be checked out.

But if you're a tramspotter, this could well be for you!

That's a nice feature. A porch there.

I love that. It means all the noise and the cold doesn't come straight into the lounge.

This is the lounge. Actually, quite a good-sized space.

Nice high ceilings. Obviously very tired and dated.

And some indication of damp there and over in that wall.

Apart from that, it is a good-sized room.

Then through into the kitchen. Whoa!

That's pretty nice.

Obviously, you'd need to replace the front of these units,

but if you were renting this place out,

this could almost be serviceable, but the boiler needs sorting.

Again, it's a good-sized space, but... Oh, dear! What's that?

That's not good. Not good at all.

Let's hope it's nothing more than a leaky pipe.

My guess is it's coming from the bathroom, there. We'll investigate that in a minute.

Upstairs just two bedrooms. But I feel the house could have more.

This very large landing is wasting space.

Maybe we could play around with the layout.

Back bedroom there. Front bedroom here. Love the wallpaper!

Apparently it's back in fashion, though I think that was put on the last time it was in fashion!

All in all, a good-sized space. A decent-sized double bedroom.

Nice views out onto the park there. All pretty good, really.

Putting aside those rose-tinted glasses,

there are undoubtedly a few issues here.

Having only two bedrooms makes it quite small and limits its appeal.

There are also signs of damp throughout

and that patch on the kitchen ceiling.

So, Inspector Roberts investigating the potential water leak.

I reckon the thing downstairs is coming from the bath here.

I bet if I... There we go.

Eugh! Yeah, that is damp.

What's happened, it's basic stuff.

It'll be this seal here around this silly little shower scenario.

A dribble of water going through there, it's gone into the floorboards

and ruined that ceiling.

In an ideal world, get rid of this silly shower curtain and put up a proper shower screen.

Hopefully, that's reasonably straightforward and shouldn't break the bank to put right.

But unfortunately, this isn't the only damp we're dealing with here.

Not only have you got issues with the fact you're beside a tramline.

The bank here is causing real problems for the house.

You're gonna have to clear away a channel, get rid of that,

then you'll start to sort out the problems inside.

So this house has problems. Damp, cracks and the need for a lot of updating.

But remember, the guide price was £45,000

so perhaps I'm expecting too much.

What does a local estate agent think?

Location-wise, it's not too desirable

but it's a terraced property. They're sought after

and it would be a good buy-to-let.

The tram stop for around here is literally five minutes walk again.

It does pass the property. It's something you get used to.

You will not notice that kind of noise after a week or so.

Hopefully, the nearby trams won't derail the value of this house

if it was put back on track in good condition.

Once the property's renovated,

it will probably achieve between 80, 85,000.

Rental on a property like this

would be 425, 450, dependent on the standard and if that includes white goods.

So, a decent enough little property. The big issue is the damp.

It's coming down from the bathroom and in from the big wall there.

Some earth moving required to sort that out and some filler to sort out the bathroom.

Who fancied buying this when it went to the auction?

26, Victoria Lane in Whitefield, Manchester.

Shall we say 30,000?

30,000? 30 I've got.

32? Anyone give me 32?

32. 34.

36.

38.

40, sir?

I'll take one, then.

39,000. 40,000 with you, sir.

41, sir? 42?

42. 43.

44.

Is that OK? 44.

45. 46.

47. 48.

49.

50.

One? Two?

52.

53?

52. 53 I've got.

54, sir? 54.

55. 56.

A half?

55,000, then, sir. It's back with you at 55,000.

I'm gonna sell it at 55,000.

For the first time at 55.

Second time.

Third and final time.

Sold, sir.

So, for £55,000, the new owner of the slightly damp two-bedroomed corner house

is local electrician, Barry.

-Barry, good to meet you.

-Hi.

-Congratulations.

-Thanks very much.

Why this particular property?

This property is in a reasonable area.

It's close to the Metrolink for Manchester.

It's close to the motorway. It has a park opposite

so it's good for a young family and it's reasonably well built.

It doesn't require a lot of refurbishment.

-Have you done this before?

-It's my second property.

The first one, I made the crucial errors of getting the price wrong,

getting the budget wrong,

and then you have to really struggle to get it back within the pay-back for the rent.

Tell me how you made those mistakes and what mistakes you actually made.

I bought it on impulse rather than looking at the market prices that were around.

I paid too much money, to be fair.

What went wrong on the budget?

On the budget, I looked at the house and did it to a standard as if I was going to live in it.

It lets very easily, but it's costing you a few quid to get it back onto the market.

So Barry learnt the hard way by not doing his research before buying that house

and not getting his specification right. Common mistakes.

And though that one does now do OK on the rental market, I hope he's learnt his lesson.

I was bored while I was waiting for the lots to come up

and at that stage, I almost bought a pub, to be honest with you!

-What?!

-There was...

You've done an impulse buy once before!

-Remember the trouble it got you into?

-Exactly.

-It was in the Lake District.

-Wow.

-The guide price was 279.

-Right.

-And I started the bidding at ten!

-Ten what?

-10,000. And it went up in 5,000 increments to about 45,000

and then went up in twos till we got to 60,000

and I thought, "I don't want a pub. I want a house."

I know what I'm doing with a house. And it went for 61,000.

-No!

-Yeah.

Don't go to auctions any more, OK?

When I go, I'll go just in time to get my lot, then come back out again!

-You were happy with what you got?

-Extremely happy with what I got.

It's a little damper than I thought cos I'd not seen the property beforehand.

-I've done drive-by valuations.

-Right.

But at 55,000 with windows, doors, walls and ceilings,

-it's not too bad.

-You can't go wrong.

Barry nearly went for another impulse purchase, buying this without seeing inside.

But the big difference here is that he does know the prices in the area

and realised that 55 grand was good for this type of property

whatever work was required.

The first job is to clear everything out and then strip the walls

to 1.2 metres downstairs to remove the damp plaster.

Then re-instate the plasterwork with a sand and cement render

with a waterproofing agent to prevent moisture coming in again.

What about the bathroom? There's a leak around the bath

which is causing the damp on the ceiling.

-First, I'm gonna strip the bathroom out completely.

-Right.

Once the bathroom's gone, it'll be reorganised. It doesn't work at the moment.

The bath is out of the way, the wall is obstructing the light

to the back end of it, so I'm gonna move the wall

slightly into the bedroom and put the bath underneath the window.

What is the budget for this job, then?

Budget is eight to £10,000. I'd rather go towards six,

but I'd say eight to £10,000 will cover it.

-You're confident this time? Not putting gold taps in!

-Absolutely confident.

-The Jacuzzi and...

-That's right!

This one's gonna be done to a high standard

but a budgeted high standard!

-#

-When you believe there's no mountain you can't climb

-#

-And if you get it wrong, you'll get it right next time...

-#

So, Barry learning the hard way with his first project

but bringing all that experience into doing this place up.

A few issues to resolve, not least the damp,

but I like his plans for the bathroom and that'll sort out those problems.

Will he stick to his budget this time, though?

Find out later in the show.

"Time is money" is a rather over-used phrase. But it's true!

You can bet your bottom dollar if your project goes over schedule,

it'll hit your bank balance too!

Let's look at the recent projects on today's show.

In a beautiful rural location not far from the bustling Kent town of Rainham,

I found this two-bed house upright and in military fashion.

It was built for war veterans returning from the First World War

and came with a large plot.

It was starting to show its age and would be a battle to bring it up to modern standards.

But this suited former Ministry of Defence project manager Andrew very well.

We have a saying in the military, it's preparation which is essential.

If you go in well prepared, there's a good chance you'll come out with exactly what you want.

So, having shelled out 332,000,

Andrew's plan was to extend and make it modern and eco-friendly.

So, nearly 18 months on,

has the plan come together?

Well, it certainly looks like it,

as the old house now blends with a fabulous new extension.

Inside, the tired old rooms and layout have been completely transformed

to create a large, modern kitchen

complete with patio doors out to the garden.

There's a fantastic oak-floored open-plan lounge

and lots of additional spaces.

It's been an absolute labour of love for me.

Some evenings I've come home from work

and I've been working on the floor till two, three, in the morning.

But I think if you've got the passion to do something like that, that's great.

On my grumpy days, and I have a few of them,

it's fair to say I get home from work and I don't want to do anything.

But I think on balance, most of the days I've had here have been good, positive days.

When you're decorating a property,

you're actually adding your character to the property.

It's very bland, very white at the moment,

but over the next few months I'll probably introduce some colour because I'm not that bland a person!

For the time being at least, the clean white look continues upstairs.

It's now a four-bedroom house

with the master bedroom having doors out to what will be a balcony.

It will also be en-suite.

And white is the dominant colour in what is a stunningly updated bathroom.

I think it's fair to say that this is the favourite room in the house.

It's fair to say that I was a shower man, in and out of the shower.

But with a bath like this,

and a view like that,

I shall probably be spending many an hour with a glass of red in here!

Now, that is not a bad place to soak up the view, is it?

Andrew can also enjoy it, happy in the knowledge

that both his hot water and the waste water

are being generated and used as efficiently as possible.

It's not just the inside of the property that took time and effort.

It was the groundworks.

To start with, we had to excavate a 2,000-litre LPG tank.

This supplies the gas to the property.

In the far corner, we installed a sewage treatment plant.

That sewage treatment plant is a bespoke system

which allows the house to vent all of its waste water into the plant

and then the water drains off into a soakaway

which is under most of the back of the garden.

That does away with the old-fashioned cesspool that wasn't very nice.

In the far side of the property,

we have a rainwater harvesting system.

That's a 4,800-litre tank buried underground

which pumps the water back into the property

and it's used for the flushing of the toilets and the washing machine.

With solar panels to heat the water...

..and energy-efficient glass...

it's fully insulated to the highest specification.

The flooring is locally sourced oak.

The front door is made from reclaimed oak.

So Andrew is certainly doing his bit for the environment.

Though this approach will save him money in the long run,

the initial outlay for this type of house is higher.

The original budget was £120,000.

And I actually spent 127,500.

But I'm very, very pleased with the fact that the finish I've achieved

for the price I've paid has been extremely worthwhile.

I don't think a five per cent overspend is that bad, to be honest!

With that 127,500 spend,

and £332,000 purchase price,

Andrew won't see much change from £460,000.

During the 18 months he's taken to complete his mission,

the property market has had a downturn.

So will the house now pass inspection and make the grade?

This property is outstanding.

The design of it

and the space that they've used,

they've thought of every aspect in a new-build property.

It's a stunning property. The views are wonderful.

The bathroom is out of this world.

Also the kitchen is using every new technology as well.

These days, all the buyers are very conscious of the environment.

Anything that saves their costs in the running of the property is a really good selling point.

So Andrew's house has generally been given the green light.

But has he invested his £460,000 wisely?

I would market it minimum 550,000

and it could possibly be pushed to over 600,000.

I would suggest marketing between 550,000 to 600,000.

That's excellent news.

A possible pre-tax profit of about 90 grand.

And, of course, he's got a fantastic house. What does he think?

It's very good. I mean, obviously from the start,

I set out to build this property as a home to live in

rather than an investment.

It's a ballpark figure and I'm very happy with that but it's not my intention to sell.

With Andrew putting his heart and soul into the project,

I guess this will be his base for many years to come.

Will he do another one?

It would have to be a special property.

I'd like something a little more quirky next time.

So not everybody's cup of tea,

but I'd like to convert something like a nuclear bunker

or a water tower

or some type of folly.

That would be very interesting.

But for the time being, given that I've got a very busy job,

I should put my feet up and enjoy what I've produced here.

Quite right, too!

Though he's still got to build a balcony before he can sit and enjoy those views.

There are a few more challenges ahead until he can finally stand easy!

Just outside Bury in the small suburb of Whitefield,

a two-bedroomed terraced house went up for auction.

Local electrician Barry bought it for 55,000.

The property came with pluses and minuses.

On the plus side, it was a really good price,

opposite a play area and near the M60.

It was also close to a tram station for Bury or Manchester.

However, on the minus side, some might say it was too close

and there were damp issues.

But Barry was confident there was nothing he couldn't tackle.

Damper than I thought. I hadn't been in to the property. I'd done drive-by valuations.

-Right.

-But at 55,000, with windows, doors, walls and ceilings,

-it's not too bad!

-Can't go wrong.

This was only Barry's second property

and on his first he'd paid slightly over the odds.

He then spent too much on the renovation,

falling into the common trap of doing it as though he was going to live there himself.

In the end, that one did work out OK,

but it's with trepidation we go back three months later

to see if he's learned from his mistakes.

-#

-When you believe there's no mountain you can't climb

-#

-And if you get it wrong you'll get it right next time

-#

I thought it was general decoration at first, but the damp was quite evident.

And it was quite serious.

What we had to do is remove the inner skin of the gable-end wall

and remove the blockage in the cavity.

Then renew the damp-proof membrane,

rebuild it,

and then obviously re-plaster it.

Yes, it's all so much better

but Barry still can't stop personalising the house!

In the kitchen we put a range of new units.

We've plastered everywhere.

We've put a new washing machine,

oven, hob, extractor.

All I've got left to do really is tile this splash-back here

where the sink is and then it's a completed job.

The kitchen is looking pretty good.

It's great that Barry's installed all the appliances, ready for a tenant to move in.

But how has he got on upstairs and in particular in that bathroom where he had big plans?

From the last time you came we've removed the wall, moved it slightly

to accommodate the bath under the window.

We fitted a separate shower, a double sink unit, some storage at the end,

shelving units, new lighting in the ceiling

and fully tiled it. I'm quite proud of this room. It's my special room.

I'm not surprised he's pleased with the bathroom.

But I have to say it looks a little over spec for the rental market,

as do the two main bedrooms with their built-in wardrobes.

And very personalised wallpaper.

Has Barry slipped back into his old habits?

I didn't approach this any differently to the last one.

However, I think that passion got the better of me.

The appeal to the wider marketplace led me to spend a bit more.

The original budget was eight to £10,000.

I've actually spent closer to £12,000.

But that didn't include the roof. And the roof was the overspend.

But he hasn't gone too mad

and has certainly got a lot for his money.

Barry's had to do the renovation whilst still doing his full-time electrician's job.

It's difficult to juggle the two jobs.

It's led to a lot of long days, long nights,

seven days a week.

I'll be glad when I can close the front door with a tenant in it

and walk away and have a good rest.

But is that day imminent

or has he made it too individual

even though to a high standard?

With an original purchase price of 55,000

and a £12,000 spend,

Barry will have spent close to £70,000.

So, what do two local estate agents think?

He's done the property very nicely.

It's a good sized house. He's over-stylised it a bit!

I think the bathroom has been done a bit too tasty for this property.

Maybe a bit too much spent on it.

The bathroom is far too full. Far too much in it.

I think they've been to the bathroom place and chosen everything they liked and shoved it into that space!

The bedroom we're in now has far too much furniture in it. There's nowhere to put a bed!

I think the decoration has been done great.

Plastered and painted walls are in at the moment.

I think the papered walls make it a bit more unique.

They've used too many wallpapers

which could possibly put people off.

Barry has invested around £70,000 in this house.

What do those disappointing verdicts mean for the value here?

I'd put this property on the market for around 90 to £95,000.

If I were to market this property, I'd put it on the market at £95,000.

I'm quite pleased with those values.

90 to 95,000 is higher than I expected.

So yes, it's quite a good result.

That could potentially see a healthy profit of around £25,000.

But Barry wasn't after a short-term investment.

This was always intended to be a long-term rental.

This property would rent for approximately £550 per calendar month.

If I put this on the market to rent,

I would suggest asking £495 per calendar month.

I'd be quite happy with 515, 525,

so somewhere in between those two valuations would be a reasonable return.

£6,000 a year would certainly hit tick-over values

and with a little profit as well.

But Barry might have done better well if he'd curbed his spending.

Is it time for a change of philosophy, perhaps?

I wouldn't have done anything too differently, to be honest.

I think if you renovate the property to a high standard,

you'll let it rather quickly which gives you a greater revenue.

So it looks like he's going to stick to his guns.

Let's hope he's right and that he'll get a tenant soon.

You never know what you'll hear next on Homes Under The Hammer!

Join us next time for more tales of subsidence or success!

-See you then!

-Goodbye!

-Bye!

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