Episode 80 Homes Under the Hammer

Hello. The main thing, if you're a property investor, is making money,

but that can be a challenge in today's market.

And you can't see a return until you've bought somewhere.

But one way to buy is under the hammer.

Let's face it, we all love snooping around other people's houses.

Oh, yeah! Whether it's a stately home or a humble bungalow there's always something to talk about.

Yes, let's find out what excited the buyers on today's show.

Don't be put off by the state of this Derbyshire property.

The solution could be easier than you think.

Getting a professional steam clean would make a huge difference.

Will this former cigar warehouse in London make you gasp for breath?

You've got your kitchen area here, which has seen better days.

It could do with an overhaul.

And in Manchester this unusual flat has brought out the detective in me.

I mean, I'm looking for something that's not quite right,

but it's beautifully decorated.

All these properties went to auction and we'll find out who bought them

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

Sold to you, sir.

Our first property that went under the hammer is in Ilkeston.

This is DH Lawrence country,

just on the Derbyshire/Nottinghamshire border.

Lawrence, who wrote such classics as Women In Love and Lady Chatterley's Lover

was born and grew up about 10 minutes from here.

This whole area heavily influenced his work and you can see why.

Now, wouldn't it be great if the property I'm seeing

was the sort that the great writer would have lived in.

You know the kind of thing, thatched cottage on a hillside overlooking a valley.

Well, sadly not. However, it does sound reasonably attractive.

Three-bedroomed, semi-detached.

It has three reception rooms, a conservatory and a large garage-cum-workshop.

The best bit, the guide price just 79,000 quid.

Aesthetically the house doesn't inspire reams of romantic prose,

however the outside space is substantial and it looks structurally OK,

so for that guide price of 79 grand it's looking good.

Well, for that amount of money you'd probably expect that it's fairly grubby,

but you know what? It doesn't seem too bad.

And I love it in here! This is the lounge.

Look at the wooden floor! How absolutely gorgeous is that?

Fireplace, well, a bit dated, but overall it's a nice big room,

lots of light coming in through the windows.

I mean, paint it, change the lighting.

It's a great start.

That floor is a major plus and the walls don't need a skim.

In good condition, a conservatory is always a bonus and adds a huge amount of floor space

which really is a key feature of this family house.

I really like the space this house has. I mean, look at this kitchen, it's fantastic.

I mean, the units are a bit tired and dated, but you know what?

They're all here and if you were to, say, rent this place out, I wouldn't spend tons of money

taking these out and putting something else in their place, they're perfectly serviceable.

An old cooker, but, again, quite impressive looking

and tidied up, getting a professional steam clean, would make a huge difference.

This is a very spacious property.

Apart from the conservatory, there's an extension behind the kitchen

with an extra room which could be a study or a spare bedroom.

So, what's the top floor got to offer?

Upstairs it's almost like a different house.

Three bedrooms, they're not a bad size, then you've got the loo and bathroom here, which is good to see.

However, it just feels so small in comparison with downstairs.

Having said that, you know, where do you spend most of your time?

In the living room areas, so I think this is not a bad sacrifice, and in terms of condition, not bad.

# But I see your true colours...#

OK, so the colour scheme up here might not be to your taste,

but a weekend with a roller would soon fix that,

and the guide price is even more appealing

when you find out how spacious the extension at the back is.

Well, at the back, not only do you have a really useful

yard area, there's also a garage which has been extended at some point to create this workshop.

It's fantastic! I mean, I really like the practicality of this house,

lots of space for putting things in, which is just what you need.

At a guide price of £79,000,

I think it's a cracking property.

What will a local estate agent have to say? Will he share my enthusiasm?

I think the house is all right.

It doesn't need too much doing to it,

perhaps more decoration, a bit of tidying up.

It shouldn't take much to get it up to a nice standard.

As it's a house on a development,

how does it shape up in comparison to other properties in the area?

This property is quite unusual, in terms of it is quite large for the type of house it is.

It's quite a big three-bed semi.

It's position is unique as well and, obviously, it's surrounded by all the terraced houses on the street mainly,

so you get a lot of house for your money and it is a really good size.

And the workshop garage, it is a bonus.

Not many houses have it around here even in other areas that are local,

so it is a good selling point and, hopefully, it will...

It will help the property.

It seems that a typical rental valuation in this area is around £450 per calendar month.

What would the resale value of the house be once renovated?

The resale value, in the current market you'd probably look around £105,000 to £110,000

once it's all done up.

Ah, well, maybe this corner plot will end up cornering the market.

So, a lot of house for your money.

Interesting configuration, much more space downstairs than there is up,

but for the right person that garage-cum-workshop could be absolutely ideal.

Let's see who fancied it when it went to the auction.

Lot 13. A good-sized three-bedroom modern semi-detached house.

This is a 14-day completion, ladies and gentlemen.

Start me where you will. £80,000? 80?

78?

78? 75 may I say?

75? 75 is bid in the middle. 75. 76.

77.

78. 79.

80,000?

At £79,000 in the centre. 80,000?

At £79,000. It's in the market, ladies and gentlemen, at £79,000.

I'll take 500 if it will help you elsewhere.

At 79,000 then going once, twice, third and last opportunity.

Sold to you, sir, at 79,000. Thank you.

And that winning bid of £79,000, bang on the guide price,

was made by Nick.

He comes from Sheffield, but his girlfriend lives around the corner.

We caught up with Nick and his dog, Scruffy, back at the house.

Scruffy's already given the property his seal of approval.

-Nick, good to meet you. Congratulations.

-Thank you.

-That was quick, wasn't it?

-It was, but I'm glad.

I'd sorted my reserve out and knew what I could go to, so...

-And it went bang on the guide price.

-Bang on the guide price, yeah.

-What was it that made you want to buy?

Well, the layout is three-bed, my girlfriend's got two-bed, but also we've got a dog that's...

Well, it's got an allergy to grass, so it's got a courtyard so it's quite convenient for a run around.

-Tell me more about the dog.

-It's a rescue dog we got from just up the way,

had been in a bad way, cost a fortune in vets' bills, on the mend now,

so we thought we would give it a better quality of life, you know?

-Oh, well done you.

-Yeah.

-But it's allergic to grass?

-Well, it's actually saliva of fleas on grass.

-So, very technical!

-What happens if it goes on grass?

It bites its hair off, rips it back to bits, yeah. Quite graphic!

So, the paved area outside could be ideal for Scruffy, and there's plenty of accommodation.

He could even have his own room.

Who says it's a dog's life? But does Nick plan to live here?

Initially, to move into, my girlfriend is going to sell hers. That's going on the market.

If that sells we'll move in, if not, you know, sell it on and see what we can do.

-So, have you done this kind of thing before?

-I've done it on the girlfriend's house.

We refurbed that when she moved in, that was a bit of a wreck, so we started at the bottom, worked up.

I don't think there's too much that actually needs doing on this.

-What about buying and selling properties...

-No, no. I do it as a job...

-I'm a solicitor, a trained property solicitor.

-Oh, great.

Yeah, yeah. So, do it for a living, seeing how much money people make, thought I'd get a bit of the pie.

Nick had initially offered £80,000 before the auction, but that was turned down.

On auction day he saved himself 1,000 quid as he only paid the guide price of 79,000.

He's no stranger to property auctions and thinks he got a great deal.

-So you see the other side of it?

-Yeah, yeah.

I'm always telling people to read the legal packs, check with their solicitors.

-You must see it all the time, people NOT doing it.

-Oh, yeah, yeah.

You know, there's quite often people will buy a property,

come in and say I've bought this, and you bang your head against the wall and say,

well, for £100 if we'd had looked at it before you would have saved yourself a lot of money, but...

What's the biggest sort of mistake you've seen which could have been rectified by you looking at it?

Part-done conversions that people have bought that haven't got planning permission.

You know, they've sold it quite clever without the bathroom fitted, without the kitchen fitted,

but it turns out that it's still a commercial building,

so you've got to get permission, so it's not the bargain they thought they were getting.

-Why do you think people don't? What is it, because I never fathom it?

-I think people are... People are...

It's like not having a survey before an auction.

It's if they don't get it they see it as money chucked away,

but they do get it, again it could be...could be the best £100, £150 or whatever they've spent.

So, he paid £79,000 for his first investment property,

after reading the legal pack - of course!

What does he think of that workshop?

It's brilliant, because I like tinkering with cars,

giving me a bit of a haven from the girlfriend if we do move in, so yeah, great!

-That will be your bit, will it?

-Yeah, lockable door, brilliant!

-And the dog can live in the courtyard.

-The dog in the courtyard, yeah.

So, it's actually got quite a lot of what you need.

Oh, exactly. If... If we moved in it would be cracking, if we don't, you know, we should make...

make a bit of money on it, so, you know, win either way, hopefully.

-So, specifically then, what are you going to do with this place?

-Just really a refurb. There's a few

broken windows, a lot of painting, filling, cooker and fridge freezer needs fitting, that sort of thing.

You know, general tidy up, garden, a bit of building work outside.

Maybe put a new banister in on the stairs, new balustrades, that sort of thing.

Really, just bring it up to date and give it a new lease of life

because the fittings that are in seem to be quite good quality.

-So, what is the budget?

-We're looking at 6,000, all being well.

OK. But you're not going to be replacing kitchen cabinets and...

Not unless we...turn anything up nasty.

No, it seems quite solid and good... good quality. So, yeah, we'll see what we can do with what's here.

-So, that's mostly just tarting up.

-Yeah, yeah.

Well, Nick looks to have picked up a bargain, but not everyone has been a winner here.

Unfortunately, the house was a repossession.

The services have not been tested, so Nick is going to need to get those checked out.

As long as there are no serious problems, Nick will do all the work in his spare time.

He estimates it'll take six weeks.

Meanwhile, he'll stay at his girlfriend's just around the corner.

-Well, good luck. I hope you and the little dog are just great.

-Cheers, thanks for that.

And good luck.

# If you don't know how to do it

# I can show you how to walk the dog... #

Well, not only has Nick got a place that suits him down to the ground

with a workshop that he can escape to,

but it's also brilliant for little Scruffy the dog with this courtyard and even his own dog kennel.

The big question is, in today's current market

is Nick's strategy of buying to sell on really going to work, or will he find himself in the doghouse?

You can find out later in the show.

Catch a train east from Central London and the choice of properties and food is amazing!

I'm just round the corner from today's property in the City of London at Spitalfields Market

where haggling and getting a deal are just taken for granted.

Now, the question is will the property's £230,000 to £250,000 guide price

exclude everyone but your seasoned property developer,

or will an auction first-timer be able to keep that price down and bag a bargain of a lifetime?

Just a short walk from Liverpool Street Station,

this area is right in the heart of London's financial sector.

There are plenty of bars, clubs and restaurants to choose from

and it's the perfect location for anyone working in the City,

but, even in a credit crunch, that guide price doesn't get you much around here,

even when it's over a pub, like this flat.

So, here it is, a one-bedroom flat situated in this great-looking building,

and, yes, I know what you're thinking, it's above a pub, what could be worse?

Well, yes, there might be issues with finance,

but there will be lenders

and this is not the first flat above a pub in London, now, is it?

No, for me it's all about location and investment potential.

It certainly ticks the right boxes for its location, but has it got potential?

Well, the communal areas are a good start, nothing too grand, but light,

clean and well managed, a sure sign the £700 annual service charge is being used wisely.

So, let's have a really good look around the property.

Now, to the left here we've got storage space.

I always love that, it's somewhere to bung all your coats, you can put your vacuum cleaner.

Video entryphone system, that always makes me feel really secure.

Don't forget, you are in the centre of London and something like this will come in really handy.

Now, you've got the bathroom to the left, a little bit tatty.

I could say that would do with a bit of updating,

a bit of a freshen up in there, some new tiles and paint, maybe.

And in here another cupboard.

Now, that is a really good use of space!

The washing machine is in there. That is an ideal place to put it.

You've got the bedroom to the left. I'm glad to say it's not on the small side.

You've got a big double bed in there,

it faces out on to the road, it's quite a comfortable little space.

It's weird because this flat does have a rather unusual layout, but it does work for me.

So far so good, then. What about the kitchen and living areas?

So, here we go. We've saved the best room to last.

Isn't this magnificent? What would you call this?

A huge sitting room-cum-dining area-cum-kitchen.

I mean, it is magnificent and what I love about this property are these amazing windows.

There's one, two, three, four, five, six, seven, eight, nine huge windows in here.

Now, I do know this old building was originally a grain store,

then an old cigar factory and it was only converted into these flats

15 years ago, but you can see they've done a pretty good job.

You've got your kitchen area here, which I think has seen better days,

it could do with an overhaul,

but it's a great space and a really good flat for the money.

Don't just take my word for it,

what can a local estate agent tell me about this property and how it compares to others in the area?

It's fairly well proportioned,

it's got high ceilings, it's got big windows

and it's got the feel of a warehouse conversion that people like.

The exterior of the building is fairly typical late Victorian, early Edwardian.

A lot was lost in the war and quite a few were knocked down in the '60s and a lot are being converted.

They're extremely popular.

There should be strong demand for this place, even though there's a bar downstairs.

That bars here tend to be fairly busy immediately after working hours and not busy at all during the weekend,

so I think it's not a bad place in Central London to have a property over a commercial unit like that.

What sort of market would an investor be aiming at?

This property would be a good starter pad for maybe a young City professional

looking to add some value onto the property and then move on as the property gained in value

and as they moved up their career path.

I would imagine that somewhere in the region of £5,000 could update this property

and add good value to it.

So, if a buyer got this place around the £230,000 to £250,000 guide price

then they could be looking at a total spend of up to around £260,000

once Stamp Duty and other fees have been included.

Remember that anything over 250,000 and that Stamp Duty rises from 1% to 3%,

but it sounds as though there could still be room to make a profit.

Once the property's been updated I would expect it to fetch somewhere in the region of £275,000.

With an expected rental income of around £1,400 per calendar month

this place could be a good earner.

This is a good-sized property in a great area.

Get it for somewhere around the top of that £250,000 guide price

and you'll be making a serious investment.

Who was victorious? Let's go to auction.

Let's move along to Lot 228,

the Wexham Building in London E1.

Who'll bid me 200,000? 200 may I say? Straightaway, thank you, 200.

205?

200 I have. 205. 210.

215. 220. 225.

230.

230, sir.

OK, 235. 240.

245. 250.

255?

No. Gentlemen in the tie and the white shirt for 250 on the left.

255 anywhere else?

Right at the back, standing up 255. 260, sir?

Are you sure? One bid then, gentleman standing at the back at 255,000. 260 anywhere else?

For the first time at 255.

The second time at 255.

For the third and final time at £255,000, the gentleman at the back.

Sold to you, sir.

At £255,000, just over that Stamp Duty threshold,

the successful bid came from former estate agent Karsten.

He knows this area and, in fact, this flat quite well.

-Karsten, congratulations.

-Thank you.

-I love this building, it's great, isn't it?

It's not too bad and it's a building I actually came to about 10 years ago

and I first saw it when I was an estate agent just round the corner from here.

Obviously, being on the other side of the fence and saying,

Hello, sir, madam, I think your two bedroom flat is worth X,

and then winding the clock onwards 10 years or so and walking in here thinking,

well, somewhere to buy is fantastic, and there's...there's lots to do.

So, you bought in an area, Karsten, that you are really familiar with, which is fantastic.

It's really nice, therefore, to be coming back and seeing it through with a fresh set of eyes.

So, were you buying properties while you were an estate agent

or is it something you decided to move on to?

It's...it's the latter that I wanted to move on to and you always harbour this sort of desire to do it.

Actually having the courage, the convictions,

the foolhardiness, whatever, to get on and do it is really exciting

and that's been for the last year and a half or so now.

Karsten reckons that with the property market suffering

he's picked this flat up at a bargain price, but buying at auction is not something he's used to.

It's the first time I've bought something at a property auction.

Many years ago, when living in New Zealand, my wife and I bought a car at auction.

That was infinitely worse, infinitely more nerve-wracking,

-so this has been reasonably easy sailing so far.

-But you spent so much more money than on a car!

But it's a lot easier to do the research when you know what you're looking for

and it will be great to get my teeth into the refurbishment.

Karsten would prefer to sell this flat on if possible.

His strong knowledge of the local property market

gives him a good idea of how best to refurbish it to maximise his return.

One of the lovely things about the whole building

is the ceiling heights are not only quite unusual,

but actually as well as having all the windows here, a really good feeling of space,

even starting with the flat naked.

The kitchen is going to remain in the same position as the current kitchen

and we're not moving any walls around internally because I think the layout is pretty good

as it is - I'm just going to bring out as much freshness as possible.

So, there's quite a lot of brickwork that's been covered in swathes of paint over the years

and next week one of the fun tasks will be really going at it with a sand blaster.

I say this with a degree of confidence now. That might be an interesting few hours!

-Masks ahoy!

-Masks ahoy and stand back, neighbours!

We'll take everything back pretty much to the brickwork and may or may not then whitewash it,

but make it feel more industrial and a bit more interesting.

I'd like to see exposed brickwork. That would look fantastic, wouldn't it, with lovely dark wood floors?

Well, that's...that's the intention.

I fear there's going to be an awful lot to come off the walls before we get back to that exposed brick,

but it's going to be fun.

I'm not sure that "fun" is the word I'd use!

It's going to be very messy, that's for sure.

But Karsten's hoping to get over £300,000 for this place when he sells it on.

To do that he's really going to have to make it stand out from the crowd.

There is a good amount of competition by way of other flats, some that are larger, some that are smaller,

and all of which are round about the same price,

so the proof will be in the pudding of doing the work properly.

That is my worry for you. There are an awful lot of flats at the same stage.

You only need to walk outside and there's lots of refurbishments going on.

You've really got to set your flat apart from the rest and try and keep the costs down.

Absolutely, and still retain the character of the warehouse building that I think is to its advantage

compared to quite a lot of flats that have been erected from scratch in the last four or five years

that are very functional, are equally convenient, but probably have less character.

And that genuinely is the advantage of this flat and the others in the building.

Karsten has given himself a reasonable budget of £12,000

to get the flat turned around in just six weeks.

He'll have professional builders doing a lot of the work,

but plans to get stuck into some of the manual work himself.

It's quite a change from estate agency.

Would he ever think of going back?

We have to see how this project goes! We shall see. I'm actually really enjoying being...

working for myself and doing project by project.

I really, really enjoyed my time in estate agency.

It's great to be taking some of the skills and facets from that and using them

-now on the other side of the fence.

-Karsten, good luck. It's been lovely meeting you.

-Thank you.

-And I hope this project goes well.

-We'll be starting tomorrow morning.

-Well done.

-Thank you.

The boot really is on the other foot now for Karsten.

Luckily, he knows the market and he feels confident.

My only concern is that tight turnaround to sell straightaway may not be realistic,

and he's sandblasting for the first time! Good luck!

Join us later to see what happens when we return.

Coming up, could there be a catch with this imposing mansion development?

Through into the kitchen,

I mean, this is looking fantastic.

We return to this London flat above a bar.

They wanted to test the sound system.

They put it up at such an incredibly loud volume.

But first, will Scruffy's dog bowl now have water in it?

Once we turned all the utilities back on

there were a few heart-stopping moments as it refilled.

When property solicitor Nick saw just how much money some of his clients were making

he decided to try developing himself.

He bought this three-bedroom semi-detached house in Ilkeston near Derby for £79,000.

He spotted it while out walking his dog, Scruffy.

Nick had taken Scruffy from a rescue centre and, just like the property, Scruffy wasn't feeling 100%.

So on our return to Ilkeston three months later

there was one important question to ask before we got around to the property.

Scruffy seems to have...come along with the house, really.

You know, as the house has picked up, so has she. She's the picture of health now, thankfully.

So, Scruffy's back to her best and, so it appears, is the house.

# But we are OK, we are all right

# We sing very loud, yeah we're singing

# We are OK, we are all right... #

It's not a massive transformation, but Nick has done a great job.

This property was more about fixing and tidying up

than ripping up and starting again.

In the kitchen we gave it a really good deep clean, refitted all the various wooden doors,

new light fittings, new fridge freezer,

regrouted some of the floor,

new built-in hob and oven, dishwasher as well.

Just generally tidied it up.

However, this wasn't the only kitchen that Nick had to renovate here.

The garage seemed to have the old kitchen fitted in there,

so we've ripped all that out,

got rid of all the unnecessary units,

also fitted a new garage door,

a new locking system and everything like that,

made it a bit more secure and, yeah,

it's just a good serviceable garage now.

The front and back areas have also been tidied up and there's a new path which connects the two.

Back inside, the renovation continues upstairs.

The biggest difference we've done upstairs is to put this new banister in

which makes it bright and airy.

New carpets, new paint job, replaced some of the skirting, window boards, floorboards.

A lot of little changes like new light fittings, but overall made a big difference, I think.

It's a good example of how small changes can have a big impact.

Like the kitchen, the bathroom just needed brightening up.

With new carpets and the lick of paint the bedrooms are also now much more welcoming,

but who's going to move in?

Initially the plan was to move into the property

and sell the current house that we're in or possibly rent it out.

Unfortunately, due to a change of circumstances, that's not happening,

so get this on the market, get it sold and then on to the next project.

As profit is the aim of the venture, Nick has to make sure he's hit his targets.

He got this property for the guide price of 79,000, but did he manage to stick to his budget of 6,000?

The actual refurb, all-in, came to approximately 3,500,

so hopefully we can include the agent's fees in the initial 6,000 budget

and, you know, come away with quite a bit of profit.

As a property solicitor who advises clients on their purchases,

has Nick practiced what he preaches and made a profit here?

Anything over around 85,000 would be money in his pocket,

so let's bring in two local estate agents to hear their views.

I think it looks good.

I know the kitchen and the bathroom fittings were already in.

Obviously, he's spruced those up and he's decorated it

and he's carpeted it, generally made it look very appealing.

He hasn't replaced the kitchen, but it didn't need much doing to it

so he's cleaned it up and it looks really good.

There's no doubt that once you're inside the house

you'd be quite attracted by what is here, so the level or the standard is I think very good, very adequate.

In fact, I think if you were realistic

you could say it's probably too good for where it is.

After those comments, Nick will be pleased he didn't spend money on a new bathroom or new kitchen.

He spent a total of around 85,000 buying and renovating this house,

so what could it be worth on today's market?

If I was going to put the property on the market today I'd be going at about £100,000.

I would expect the house to achieve around £100,000 or just short of that.

That price, it leaves...you know, a bit of profit in there

and see what happens and, you know, hopefully get an offer near the asking price.

If it doesn't sell straightaway there's always the rental market.

That would yield around £450 per calendar month, but Nick's not particularly keen on that option.

Being a landlord doesn't really appeal and renting it out, because through my job as a solicitor

I see enough landlord and tenant disputes and I don't really want to get involved in those, to be honest.

Nick wants to take the profit and move on to his next property.

While he's pleased to see that it's finished, it means more to him to see Scruffy rejuvenated, too.

The house has been transformed, it's a lot better than it was and so's the dog,

but the dog being better is more important than the house, so we'll just see what happens.

Absolutely right! And with a profit on the horizon and Scruffy fully recovered

they can both look forward to the next project and a new LEASH of life.

# We are OK, we are all right... #

Our next property is in Manchester and it had a very intriguing guide price.

Well, when it was brand spanking new around six years ago,

the flat I'm here to see sold for just under £200,000.

Well, it's just been to auction with a guide price of £80,000.

There must be something wrong.

Well, not from the outside!

Complete with its own mock Georgian entrance, this lot makes a good first impression.

It's in great condition with well stocked flower beds and ample parking.

It's all rather grand and inside, the communal area is just as well maintained.

Where's the damp, the cracked walls?

I'm not used to this sort of standard! So, what's the flat going to be like?

Wow!

Nice-looking start.

Big entrance, which is good to see, nice high ceilings.

You got a loo and a bathroom there, the first bedroom over there.

Storage cupboard here. I mean, I'm looking for something that's not quite right,

but it's beautifully decorated,

big second bedroom there, through into the kitchen.

I mean, this is looking fantastic!

You've got virtually new units, built-in cooker.

This is a really great flat!

Yes, quite spectacular, in fact.

Considering the flat is already seven years old it's in pretty good shape.

You wouldn't think anyone had lived here.

It's like a brand new property. It's bright, it's airy and I love the proportions.

I mean, look at the size of these rooms.

This is the lounge, huge and very stylishly done, too,

with the oatmeal carpet, you've got your magnolia walls, you know, the nice features.

Lots of light flooding in and it gets better, because you've also got access

to your very own patio.

Apparently, very few in this block have these.

What a nice bit of outdoor space!

You could put your plants here, some lounge chairs.

A really nice additional thing to have.

So, ground-floor flat with this added to it, it's a real winner.

If this flat were an athlete, it would win a gold medal.

But will a local estate agent think

it has the ability to go the distance at auction

and reach the heights, or could it be a flop?

This apartment I feel is good, spacious accommodation and has appeal

to a wide range of people.

Well, that confirms my thoughts.

This is a top lot, but what's the local area like?

The area surrounding the property is an affluent area.

200 yards up the road, you've Ringley Road

which properties are exceeding, even in today's market, over £1 million,

so it's a good, affluent area.

You tend to find that purchasers move around within this area,

so somebody could be selling on the doorstep a four-, five-bed detached

to perhaps come here and have it as a second home.

Areas like this tend to hold their value because they're considered desirable.

That bodes well for any investor looking to buy the flat to hold on to for a year or two.

Location is key when considering a purchase, so how much could someone stand to make here?

In my opinion, rental value will be £650 to £675 per calendar month.

And what would the value be if the flat was put back on the open market?

In today's market in good decorative order this property would probably exceed £200,000, £205,000 perhaps.

Hang on a minute, this place is already in excellent condition,

so you don't really have to do a great deal at all.

At that guide price of just £80,000 there could be a lot of money to be made here and what an opportunity!

Well, what a lovely, lovely flat.

You could literally move into it as it is and at anything like that guide price, an absolute steal.

Let's see who fancied it at the auction.

Lot number 89 is ground floor residential apartment.

75 to start?

Someone give me 75?

75 here.

80, then? 80 there.

85? 90.

95. 100.

New bidder there at 100. 105?

105 there. Looking for 110 now.

110 here.

115? 115 I have. 120.

125. 130. 135. 140.

145. 150.

155? He's on the telephone.

Yes. 160?

No. I'll take 156.

156 here, new bidder.

157. 158.

159?

159 is in. 160.

161, sir, on the phone?

161 I've got. 162. Yes?

Shall I say 163 on the telephone?

163 I have.

164. 165.

166. 167?

No?

Are we all finished at 166? I'm going to sell for that figure.

No we're not. 167 and a half, is that?

Yes. 168.

16... No, he's waving at me frantically. With you at 168, sir.

First time at 168.

Second time at £168,000.

We're all done.

What's your paddle number, please?

After that frantic auction, the new owner of the flat is Lily. She didn't do the bidding,

that was down to her grandson.

With his bid and Lily's 168,000 they secured her a new home.

I went to find out what she planned to do with it.

-Lily, lovely to meet you.

-Nice to meet you, too.

-Congratulations.

-Thank you.

-Why did you want to buy the flat?

Because it was in the right position for me, my home was too big for me and this was ideal.

-So, you're downsizing, then.

-Oh, yes, yes. I'm on... I live on my own now.

-So, do you live close by?

-Very, 300 yards from here.

-Oh, really!

-Yes, just before the church.

-Right.

-So, did you know about this building?

-Oh, yes, I watched it being built.

-Right.

-Watched it right from day one.

What was it about it that made you want to live here?

Well, it's the best block in the whole of the area and I like Whitefield, I'm used to it.

I know people around here, it's easy for me to get around with the car, I still drive the car!

-Great.

-And I just like the whole thing.

My own home I lived for 45 years.

-Oh, wow!

-But it was...

Got too big for me in the end and it was too much for me, I don't need it.

So, this is ideal for me.

-Tell me a bit more about you.

-Well, I've had a very interesting life.

-I was attached to the air force during the war...

-Wow!

And I used to be a driver, night driving.

I came out of the Army and got married and my husband and I started a business.

-What was the business?

-Well, I was in the fashion business.

-Oh, OK.

-Great.

-And we travelled extensively, a few times round the world.

-Wow!

So, there's very little that I haven't seen! My love is interior decorating and design.

Some people have pleasure in cooking, not me.

I'm not a cook, I'm a designer.

Can I ask a rude question about how old are you, is that...

-I'm 86.

-86!

-Nearly 87.

-Well, you look fantastic, if you don't mind me saying so.

No. Well, I've worked very hard all my life and I'm not one of these coffee morning ladies.

I had a wonderful husband, we had a wonderful life

and I've got wonderful children, wonderful grandchildren and four beautiful great-grandchildren.

-Great... You're a great-grandma!

-Oh, yes, yes. The oldest is seven and the youngest one is three.

That may be Lily's secret to staying so sprightly.

I hope I'm as active when I get to her age!

So, why did you go to the auction?

Well, I've never been to an auction before.

I've seen it on the television and I heard about this place

and I knew what I was walking into before I even viewed it,

and I went with my grandson and my daughter

and it went a lot cheaper than what I thought I would have to pay for it.

-Really? It went lot over the guide price.

-Oh...

-Well, the guide price of 80,000 is just what I call a sweetener.

-Right.

-That was to bring people in.

And then it went up, before you turn round it was 140 and that's when the investors dropped out.

You were happy with what you paid.

-Happy?

-Yeah.

-I'll say I was!

So, Lily's now got a new home in the area she knows with friends and family nearby.

I was keen to hear exactly what she plans to do to the flat,

so Lily invited me into the kitchen to discuss the details.

Tell me what you're going to do in here.

-Well, I'm going to put complete new kitchen fitments in.

-Everything's coming out?

-Oh, yes, everything.

-Because they're probably five years old or so.

Practically brand-new, but I don't care for wood.

-Right.

-And I like bright colours, so I'm going to do a lot to it.

-And what about, like, the cooker and the hob, it's all going?

-Everything, everything is going out.

Not content with changing the kitchen, Lily also plans to decorate throughout.

She wants some fitted wardrobes installed in the bedrooms

and is going to update the bathroom and ensuite.

So, any idea how much you're going to spend sorting this place out?

At least £20,000.

-Right.

-There's a kitchen, fitted furniture in the two bedrooms

-and curtains, security.

-And how long do you think it's all going to take to get it sorted?

Oh, well if... Me? If they listen to me and do what I ask them,

I would say, including the decorating of the place,

I would say it would be... You see, the kitchen is going to take five to six weeks to order,

but apart from that I would say within a month, no problem.

-But three months and it should all be sorted.

-Oh, my goodness me, yes! When I move, Martin, I move!

I don't doubt that for a second!

Lily's been a very successful business person and has travelled around the world several times.

This is a lady with serious get-up-and-go.

Any builder taking her on would be wise to toe the line.

-Lovely to meet you.

-Nice to meet you, Martin.

-Good luck.

-You've made my day.

Wait until I tell the people I've met Martin!

-I'm delighted to meet you, too. I look forward to seeing how you get on, Lily.

-Yes.

# Welcome home

# Welcome... #

Well, how fantastic! Lily gets to move back to the area that she's lived in for over 40 years

and is truly delighted with this place, and quite right, too.

She's got some very interesting ideas for it

and I can't wait to see how she gets on with that interior decoration.

You can find out later in the show.

Well, our intrepid investors have had loads of time to sort things out.

-Well, has it been plain sailing or a hard slog?

-Let's go back and find out.

Back to Central London now, where former estate agent turned property developer Karsten

picked up this one-bedroom flat in the heart of the financial district.

He paid 255,000 at the auction

and was planning to spend a healthy £12,000

to turn it into a contemporary loft-style apartment.

But with a tight six-week deadline

and a lot of sandblasting on the cards, it wasn't going to be an easy job.

Karsten's schedule has slipped slightly, but eight weeks later and work is nearly complete.

The flat has been rewired and redecorated with new skirting boards and upgraded flooring throughout.

The bathroom has seen some big improvements with new fittings and tiles

to give it a cleaner, more modern feel.

The bedroom's also been freshened up with new carpet and a new bed.

Although Karsten has kept the fitted wardrobes,

he's given them a coat of paint and replaced the handles to bring them up to date.

But the heart and soul of this flat is really the open-plan living room and kitchen area.

So, apart from the bathroom, one of the major changes,

and probably the biggest change, was here in the kitchen.

We could actually keep the carcass of the kitchen, change the facades,

the sink, the tap, the dishwasher and so forth.

The biggest expense was this big run of granite to incorporate the breakfast bar

and just to try and make it look as smart as possible

to match the tiling and actually just create a bit more of a wow factor.

Well, I think Karsten has used his money wisely here.

The tiles, cupboard doors and that large run of granite

gives the impression of a completely new kitchen,

even though the carcasses, extractor fan, hob and cooker haven't been changed at all.

Karsten has used the extra granite to create the overhang for a breakfast bar

making the kitchen a much more functional part of the overall living space.

However, the granite didn't come cheap.

At over £2,000, it was a significant part of the £12,000 budget.

But he did manage to save around £1,000 on the flooring.

The big boxes of timber that we'd bought to lay over the floor

actually have gone back to the factory.

We took up the laminate and the underlay that was throughout the whole flat

and looked down and thought, this is the original timber floor,

so probably about 110 years ago from when the building was still the cigar warehouse.

It was in a real state and needed filling and sanding a couple of times,

as well is varnishing throughout, and this is the finished product,

something that I hope again gives lots of character,

but is really practical and looks really smart.

It certainly gives the flat a much more authentic warehouse feel than the old laminate flooring did,

but one thing I was hoping to see was some exposed brickwork.

Karsten has promised to spend some time sandblasting the walls, what happened?

We did the sandblasting, or started doing the sandblasting, and obviously

once you strip away the paint and get the muck around the place, just doing a couple of square metres

we realised the bricks, whilst perfectly physically sound, actually looked a bit of a dog's dinner.

It's, I suppose, not such a surprise with a building of this age.

It made more sense to seal up all the walls

and make sure that they were all weatherproof and no issue with damp and so forth,

and then actually to decorate.

Well, that's fair enough,

and a good example of the flexibility you need to have on a project like this.

Karsten's experience as an estate agent has helped him keep an eye on his target market.

He's brought out the character here without being too quirky.

It's not supposed to be the uber-funky bachelor pad with bells,

whistles, gadgets and so forth, but it would be a...

would have been a real shame to lose the character.

One thing that worried me when I first visited here was the bar downstairs,

which might also have deterred some buyers.

Well, it's now been refurbished and the owner has added a lot of sound insulation.

Whilst he was doing the refurbishment he wanted to test his sound system.

They put it up at such an incredibly loud volume, more than it would normally be,

to see if upstairs we could hear it with the new insulation they put in,

and the answer, thank goodness, was we can't hear a thing.

I can understand entirely why some people would be hesitant if there was a pub or a bar below them.

In this case it's been handled really well

and I think it genuinely is to the building and the local area's benefit.

Karsten originally set himself a £12,000 renovation budget

and he's gone very slightly over that

with a final figure of around £12,200.

That takes his total for this project up to around £268,000.

He's made a lot of cosmetic changes, but the original brickwork

still remains hidden, so has it been worth it?

Will Karsten achieve the £300,000 he's hoping for?

We asked two local estate agents for their views.

As you would expect, most new developments in the area

are all built to a template.

This has a lot of unique features

that are only evident in this particular apartment making it a great, great property.

The flat itself is a brilliant product.

It's very close to the City, it's in a character building,

great height and light in the building.

It's got reclaimed flooring that's been brought up to standard.

The kitchen and bathrooms have been updated on it.

The only thing is it doesn't have parking, but in this area it's not such an issue.

Most people will commute to work and it's on the fringes of the City.

The property would appeal very well to either a single worker,

which works in the City, a first-time buyer,

but it will also be very popular with the buy-to-let investors.

It is situated in a great...

in an area that has great demand for buy-to-let.

And great demand means good potential rental income.

We would look to market the property between £1,450 and £1,500 per calendar month.

We would look at something round about the 1,400 per calendar month.

The rental is definitely a second option.

It's good to know at that level we would cover our costs,

so if the flat were rented for six months, 12 months, and then was sold on that could be absolutely fine.

Those figures would give Karsten around a 6.5% rental return

on his £268,000 total investment.

But will the flat's resale value be above the £300,000 he's expecting?

The property should probably go on the market for around £320,000 to achieve a price very close to that.

We think it would be on the market round about 350.

At the moment people are achieving fairly close to the asking price

because there isn't much property on the market at the moment.

We've always had a figure in our minds midway between those two,

possibly slightly nearer the lower figure,

so I'm not uncomfortable with either of those valuations.

The latest update is that Karsten has now sold it for 330,000,

so allowing Stamp Duty and other expenses

his pre-tax profit could be around a very impressive 50,000.

Back to Manchester now where 86-year-old Lily paid 168,000

for an apartment in this imposing development.

She was downsizing from her three-bedroom two-bathroom bungalow nearby.

Although the flat was less than 10 years old it wasn't to Lily's taste,

so she planned to put her love of interior design into practice to make it a home.

Well, it's now four-and-a-half months later and Lily's invited us back to see her lovely new home

and, true to her word, the flat has a wonderfully light feel and some sumptuous curtains and furnishings.

So, how did it all go?

I've had it decorated.

I've had all new carpets, new curtains,

fitted bedroom furniture in both rooms,

tiled floors in two bathrooms and the kitchens.

It's a complete new flat.

It's homely.

It's to my taste.

Although the original kitchen was very well equipped,

Lily wanted to change the units and appliances to give it her personal touch.

Here we are in the kitchen

that I've had a completely new kitchen put in.

I didn't like the old one, it was very dark and depressing,

and I'm very pleased with it.

All the appliances have been absolutely beautiful.

They say the kitchen is the heart of a house,

so has this tasteful refurbishment made Lily feel that she's now at home?

Oh, it feels like home because I filled it with things that I love and it's plenty big enough for me.

I brought a lot of things from my other home, pictures.

I've had to buy a smaller dining room table, bought a new bed, a smaller bed.

The bedroom furniture took about three weeks, too.

I got one or two estimates and that, but I picked this man and he did the two bedrooms for me.

Lily's had a lot of help from friends and family but, of course,

specialist tradesmen were required to install the kitchen, do the plumbing and build the wardrobes.

Were there any problems?

Very happy with the workmen.

I've had some wonderful workmen here.

I've cracked the whip once or twice...to get what I want!

Before anything is done that's permanent

I always say, now show me first.

I don't like to, um...

start crying after and saying it's all wrong,

because then you become a nuisance.

I bet many builders wish more people would be so decisive.

So, how much has this refurbishment cost Lily on top of her £168,000 purchase price?

I said I was going to spend about 20.

I've spent about, say between 20, maybe 22. I don't know.

No more. Certainly no more.

It must have been a challenge and a half for Lily

deciding what to bring from her former house to her new home.

What about the things that haven't made the journey?

I've given a lot of things away to the charity shop.

You can imagine what I accumulated in 40 odd... Well, nearly 60 years!

I was married in 1945.

But I've given it away to the Cancer and the All Abroad and the hospices,

and there's more to come.

Well, that's brilliant and I'm sure very much appreciated.

But now that she's settled in, what do her family think of her new place?

Well, they're thrilled to bits that...

My daughter, who lives very close by, is thrilled that I'm here.

My son is a wonderful boy.

I've got... I'm blessed with two wonderful children who care for me,

and my seven grandchildren also, and four great-grandchildren.

But it's not just the generation game that's a favourite with Lily.

I'm very happy here. I love my television, 10 o'clock, nobody dare phone me, Homes Under The Hammer!

Well, I hope you're enjoying this programme about your auction purchase, Lily!

And we're about to find out

what two local estate agents think of your refurbishment.

It's a very well regarded location.

The development itself is highly sought after.

She's done a good job of the renovation.

When we first came to the property,

although it's less than 10 years old, it was neutral,

it had got a serviceable kitchen, white bathrooms etc,

but the current vendor has improved that.

The finish is excellent. Good quality materials have been used

offering plenty of storage and clean lines in the kitchen.

The finish is superb. Modern and contemporary.

The quality, hasn't skimped on the cost by far.

Location, highly regarded and a very prestigious development.

So, a thumbs up for Lily's colour scheme and all the fittings.

How much is the flat now worth?

Remember, she paid 168,000 at the auction and has spent about £22,000 on making it a home.

We'd market this property between £160,000 to a maximum of £170,000.

I would look to put this property on the market for £170,000.

170? Well, I'm very pleased they think that because I don't think that!

I'll buy six tomorrow at 170 that looks like this!

No, no, they're way off beam in my opinion.

Still, maybe no profit there,

but it's been a very difficult property market since Lily bought the flat.

But in this case I don't think it matters.

Lily spent what she wanted to make this her home and you can't put a price on that.

# Welcome home... #

Lily settled in here in the month of her 87th birthday.

So, has all the upheaval been worth it?

Yes, it does feel like home

because it's furnished to my taste

and it's homely and it's warm

and I just love it, and that's all there's to it!

It's been an adventure, it's been enjoyable.

I've loved every moment of it and I'm very happy where I am and what I've done.

Very happy indeed.

-That's it, but join us next time for more Homes Under The Hammer.

-See you then.

-Goodbye.

-Goodbye.

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