Episode 84 Homes Under the Hammer

Hello. All sorts of properties come up for auction.

We travel up and down the country

looking at all manner of flats, bungalows, houses and pieces of land.

Yes, they're all there to make people's dreams come true buying Homes Under The Hammer.

If you're buying an investment property, there are all sorts of skills

you need to learn before you can turn that all-important profit.

Absolutely. Putting up wallpaper, managing a team of tradesmen, sticking to a budget -

just three for starters.

So here are the challenges facing our buyers on today's show.

Near Wigan, this terraced house has potential to grow from three bedrooms to five.

That could bring in big bucks.

In Sheerness, Kent, this property is a bit on the small side,

but it's incredibly close to the beach and that is a good thing.

Devon may be a beautiful part of the country, but you wouldn't know it from the kitchen in this place.

Look at the view out of the window.

How depressing is that?

All these properties have been sold at auction.

We'll find out who bought them and what they paid for them

-when they went under the hammer.

-Well done, you.

Our first property is in the town of Leigh, just a couple of miles from busy Wigan.

It's popular with both owners and renters because of its plentiful

transport links to Manchester and nearby Liverpool.

I wonder if the house I'm here to see will be equally popular.

This is something to bear in mind when looking at houses.

If there is a pedestrian crossing like this close to it,

which in this case there is, that noise could potentially drive you completely bonkers.

Apart from that, the house is on, as you can hear, a very busy main road,

-but the good news is that the guide price, 30 to 35...

-CAR HORNS TOOT

Hi, guys! ..thousand pounds! Which for a three-bedroom mid-terrace ain't bad.

And about those transport links, I have to point out that they are right outside the front door.

Well, that's a nice start.

We've got a little entrance area there, double-glazed on the outside and then another door here.

That gets rid of the least some of the noise from that road, which is great.

And then straight into the property. Big front sitting room there.

That could give us some interesting options.

Stairs up to the bedrooms there, then through into the rear sitting room area and, again, a huge space.

Now, straight away I'm thinking, OK, this is large enough to be a family living area, maybe that room there

could be an extra bedroom. Now it gets interesting.

But the kitchen - well, not brilliant, but I've seen worse.

So, all in all, a good start.

The rooms on the ground floor are well laid out.

There's central heating in place and the electrics appear OK.

The only negative so far is the lack of a downstairs loo.

Let's see what the rest of the property has to offer.

So, upstairs, three bedrooms, two reasonable-sized ones at the front,

but look at the size of this bedroom at the back! It's absolutely huge.

So, if you combine that with the potential of using that room downstairs at the front,

I think we're into the territory of making the most of this house as a house of multiple occupation.

That could bring in big bucks!

However, there are some problems to deal with first.

Several of the rooms have large areas of damp and, from the front of the house,

it appears that the guttering will need attention.

More ominously, look closely at the brickwork and there are signs that the front wall's leaning inward.

That could mean taking down the whole of this front wall and erecting scaffolding.

Now, this is a bit unusual. Steps down to the bathroom.

The reason for that of course is that the whole of the rear of the property is one extension -

kitchen downstairs and bathroom upstairs. That explains

why the house feels so much bigger than it looks from the outside.

Well, it's nice that the bathroom is at least upstairs,

but I don't think they're really making the most of the space here.

I think we need to have a shower, we could swap the suite around, definitely make more of this room

and, of course, a few issues to resolve first,

lots of damp on the wall there and damp coming through the beam. But, overall,

you know, again it comes back to this is a good-sized house.

So, for what looks like a standard terraced house

there's a lot of square footage and, therefore, value for money.

Mind you, I haven't checked everywhere yet.

Well, at the back here you can see that extension that's been built on the house.

It doesn't look like it's been completely finished. It's missing a final layer

of render which could explain some of the damp inside.

But what you've got out the back is a lot of space.

I mean, you could put a bigger extension or I think something very exciting - parking spaces!

That's not normally that interesting, however there's a very busy main road out the front

and nowhere to park your car, so I just need to check if...

Yeah, we've got a rear access road there which is fantastic

because it means you can park your car off the street and add value to the house.

Overall, this property does have some major problems,

but I reckon that at the guide price of £30,000 to £35,000 it could prove a pretty positive investment.

What does a local surveyor think it would take

to get the place up to scratch?

The property requires a reasonable schedule of refurbishment.

There's some evidence of some penetrating damp on

the front wall, bathrooms and kitchens want refurbishing.

What about the potential if you turned the front room into a bedroom?

It is possible to convert it into a house of multiple occupation if all regulations are met.

Local authorities do tend to be quite strict,

and the cost can be quite prohibitive, but that potential does exist.

That's good news.

The surveyor reckons there could be a rental return of between £350 and £375 per calendar month.

Bearing in mind the top guide price of 35,000, what could the resale value be?

If the property is refurbished to a good standard, with it having three-bedroomed accommodation,

I would expect a resale value of about £60,000.

Well, there are things that need to be done, maybe sorting out that front wall, certainly the guttering,

get rid of some of these damp issues and finish off things like this extension,

but bearing in mind the guide price of 30,000 to 35,000 quid,

I think it was a great one to go for when it went to auction.

Lot 98, which is 180 Chapel Street, Leigh, Wigan, Greater Manchester.

15,000?

15 here. 20?

20? 20 there. 25.

30. 35.

40. 45? 40 with you then, sir.

I'll take 41 if it helps.

41? 41 there, thank you. 42?

42 here. 43 at the back?

No? At £42,000 on my right the first time.

The second time at 42. Third and final time. Sold to you, sir.

That cool-as-a-cucumber bidder was Carl.

He bought the house for 42,000, 7,000 over the top guide price.

I met him at the house along with his son, Jason, to hear about their purchase.

Carl, Jason, good to meet you both. What was it you liked about the house?

I'd not actually been in the house before we bought it. We just looked external viewing.

Wow! What did you think when you walked in?

As I expected. There's obviously quite a bit of work to do,

but we expect that, so quite looking forward to start work, actually.

This property was Carl's second choice at the auction, yet despite not being top of his wish list,

he and Jason are already itching to get started on it, but does Jason realise what his dad has taken on

because, like father like son, today is also his first visit here.

I found out the price and that he'd not seen the property, I thought I'd come in here and it was just

going to be a total wreck, no central heating system, but the central heating system is fully working.

It's roasting in here now. Electrics look pretty good, so I think he's done quite well.

It could have been a lot worse.

I reckon Jason's pretty relieved because Carl actually bought the house for him

to help him get on the property ladder.

Carl has dabbled in properties over the past 25 years and reckons now is the right time to buy.

So, what's his regular day job, or should that be night job?

-I had a nightclub for over ten years and, obviously, that's still doing fairly well.

-Good nightclub?

Yeah, I think so, yeah. I like to think so. I'm not sure what everybody else thinks, but...

-It's been going on for ten years, that's a lot longer than a lot of them!

-It is,

but I think it's time for a change.

Obviously, I'm getting a bit too old now to stay up till five and six o'clock in the morning.

Well, leaving the bright lights of the nightclub life behind and renovating a house may sound easy,

but I just hope this project doesn't lead him a merry dance.

MUSIC: "I Don't Feel Like Dancing" by the Scissor Sisters

So what are their plans for it?

Upstairs there's a lot... quite a lot of work to be done.

The front elevation needs rebuilding, which is always an unknown quantity until you start.

-You're going to completely rebuild the front?

-Yeah. I think if you look, most...

Next door's properties especially has recently been done,

so I think it makes ours look quite subsided, actually, so obviously we'll do that first.

We're just getting quotes for that at the moment.

And then everything else is fairly, hopefully, straightforward.

Rejig the bathroom to remove the three awkward steps down into it.

-How are you going to do that?

-Just lift the floor.

-Oh!

-The ceiling's a bit tight, but I'm hoping that we can raise the ceiling as well.

I think hair-raising is how I would describe the problems on this place,

though Carl and Jason seemed quite relaxed about the major task ahead.

They've got a 20 grand budget for the entire renovation.

They plan to do most of it themselves, but will leave specialist work to contractors.

They have scheduled a 12-week turnaround and then it's in Jason's hands.

Depending on what it's like when we've finished, I might move into this property

or we might put the money into another property and do the same again,

hopefully just building a bit more money up each time.

-So you might potentially live here?

-Yeah.

-What will make the decision either way?

-Probably the market.

Seeing how the property prices rise and whether I like the area by the time we've finished working here,

or if I want to still stay in my hometown.

Would you have an input in terms of how you do it up differently

-if you're not going to live here?

-I don't think I'll have much input.

-Don't you?

-I'll be getting the blame for anything that goes wrong,

and my dad will be taking the praise for anything that goes well!

Let's hope there'll be lots of praise for Carl and Jason when this renovation is complete.

Carl and Jason don't seem too fazed by the amount of work that's involved here,

although I don't think they should underestimate it.

It could turn out to be more than they expect, and they didn't see it before they bought it! Tsk, tsk!

Who'll make the decisions? I think that's fairly obvious.

Jason's big one is whether or not he will move in.

You can find out later in the show.

I'm in Sheerness, the main town on the Isle of Sheppey in Kent.

Predictably the town developed around the sea and the Royal Naval dockyard established in the 17th century.

Today the island's industry has died down, with it the local economy.

But with Sheppey's holiday potential being recognised

and with its beaches regularly receiving Blue Flag awards for their clean water,

maybe there's hope for the future.

Looking around, I certainly think there should be.

Mile upon mile of spotless pebble beach and glistening water.

It's a stunning spot.

Just yards from the sea is Beach Street

and rather excitingly the property I'm here to see.

Now, imagine having that coastline just steps from your door. Fantastic!

Now, the house itself is a standard two-bedroom terrace, but the guide

is getting me excited - only 50,000 to 55,000. This part of Sheppey is mainly residential

and straightaway I can see that parking is going to be an issue here.

And that street lamp may look quaint, but what about when it's shining through your window at night?

# Babe, I see your lamplight Shining from your window... #

So you walk straight from the pavement into the reception room.

Now, it's a bit on the small side.

You've got low ceilings, not the biggest reception room I've seen,

but you've got double glazing over here, a really nice little original fireplace.

Through here you've got the stairs.

Now, they're so narrow, they're steep, but I know you've got two bedrooms upstairs.

In fact, the upstairs layout mirrors the downstairs one.

The kitchen area to the back here.

These kitchen units could do with a bit of an update,

but it depends whether you're going to rent it out or use it as a holiday home.

You could just jazz it up a little bit.

Now this breakfast bar over here demonstrates that you can use this space

to sit down and eat in the kitchen.

There's also enough space over there to stick a table and chairs.

So my feeling about this house is it is a little bit on the small side,

but it's incredibly close to the beach and that is a good thing.

That's definitely an advantage here and this house needs all the help it can get

because everything's very small,

including the bathroom off the kitchen, but looking on the positive side, it's not in bad shape.

So the bathroom is downstairs, not ideal, but no surprises there.

What isn't good is that this extension is probably single skin

which would not comply with current building regs.

It is however common in older houses in the area and it won't necessarily cause you

immediate problems, but you need to get a surveyor around to check the structure is sound, check for damp

and make sure that it's not going to cause you issues when you apply for a mortgage,

and with lenders tightening their grip on cash, you don't want to give them any reason not to part with it.

And while we're out here, the garden's exactly like the interior - small and compact.

There's also an outside loo.

Inside, up those steep stairs, there are two bedrooms, again small,

though both are generally in good condition.

But watch out for that faulty double glazing and damp patch in the front bedroom cupboard.

It could just be a leaky tile, but worth checking the roof.

So, at first glance, there's not a lot to do, but what exactly is the potential here?

Well, houses in this area are never going to be worth a fortune

and with the depressed market rental seems an obvious way to go.

So, say you bought for the top end of the guide at 55,000,

spend a modest five grand, so that's a total of £60,000.

With rents at around £525 per calendar month that is over a 10% yield.

I know what you're thinking - this little house by the sea isn't so washed up any more, eh?

In fact, I'd say those sort of figures could leave you

with a great little investment,

but it's always worth getting a second opinion

so I asked along a local estate agent

to see what he thought of this two-bed terraced house.

It's a nice little property.

I mean, it's very cottagey, quite low ceilings.

Obviously it's not the largest place in the world,

but it is what it is and, obviously, cottages are quite sought after.

With the house guided at between 50,000 and 55,000, would the numbers add up on this one?

I think if you were to spend around £5,000 on the property, I think

the property would then be worth in the region of 90,000, 95,000.

What rental return could be achieved?

I think this property would rent for approximately £550 per calendar month.

This house on Beach Street may be your average terrace, but the rate

you could achieve isn't an average return on your money these days.

Try and find a bank to match that in interest rates!

It's not exactly an exciting property, but as an investment it certainly floats my boat.

Let's see if it set sail at the auction.

Lot 35, ladies and gentlemen, is 7 Beach Street in Sheerness.

Start me where you will. 50K anywhere?

£50,000. It's in the room, it's going to be sold. 50,000 I've got.

Five anywhere do I see? 55 I'm bid.

60,000? It's against you. 60,000 can I say? 57? Have another look at that picture. Just...

57 I've got. 57. 58 now somewhere.

58. 59. 59. And 60.

At 60. And one. 61. 61. And two.

62. Three?

63, thank you. And four.

64. And five? 65?

65. 66. 67, sir?

67, I have. I'll take eight if it'll make a difference.

If not 68... It has.

69 against you at the back. 69.

And 70. At 70. And one. 71.

71. And two. And three.

73 bid I have. 75 shall we say?

Do you want to say 74, then? 74 I'm bid. 75 now if you like.

75 I have. And six. And seven? 77?

At 77? For the first time at 76.

Second time at £76,000.

Third and final time if you're all done. At £76,000 if we're all done. Yours, 76.

8086, thank you very much. 76,000.

The winning bidders were Nick and Richard, business partners from London.

The pair have been thinking about investing in property together for a while

and this little house fitted the bill perfectly.

I persuaded them to leave the beach to tell me more about their plans.

Guys, congratulations. Now, did you think you would win this property on the day?

We thought we'd have a good go for it. We weren't sure what would happen at the auction,

but we thought we'd go quite a lot over the estimate and see what happened.

So what was your top price that you would have paid for this?

I thought we were going to go a bit lower, but I think, Rich, you had in mind something a bit higher.

-I think you were going to go 79.

-We were going to go 79,000.

"WE would have gone 79". You didn't discuss this then before the auction!

There was a slight discussion, but I think Rich...

We... We do go...

We do auctions ourselves so, Rich, you're usually the one

that decides the actual top price when we're buying and selling.

-So it was in your hands on the day, Richard.

-I remember it differently.

I thought we had discussed it and we decided 79,000 between us.

Despite not agreeing on exactly how much they were going to bid,

Richard and Nick are happy with the 76,000 they eventually paid.

They certainly did their homework on this house.

They attended a property auction to get the feel of them, read the legal pack

and had a good look around the property first, so big ticks there!

But have they been so thorough with their sums?

We have chatted to a few local estate agents and we're hoping that I think between 525 and 575 a month.

So I think that's the ballpark figure that's been quoted.

So, that is about a 10% yield on this, isn't it?

-Yeah, I think it is, yeah.

-Which is great. No bank could do that for you.

-That's fantastic!

-Yeah, we're quite pleased. We're just hoping

that there isn't any underlying sort of problems that we haven't spotted yet, like damp and...

serious damp problems and issues like that that we need to look into,

but, fingers crossed, you know, it'll be OK.

Apart from that damp patch upstairs and the trapped condensation in the

double glazing, the place is structurally in good shape.

With most of their planned work cosmetic,

Richard and Nick are hoping that a £5,000 renovation over four to five weeks should do the trick.

The only real worry is that outside extension.

We're not quite sure about the extension at the back with the bathroom in.

We've had a couple of conflicting opinions about how the wall is made up

and we need to get somebody in to look at that.

On first glance, it looks like it could be single skin.

Yeah, we're quite concerned about that because we would like to,

I think in the future, perhaps, you know borrow and then purchase another property.

But I mean, I think we can...

I don't think it's insurmountable, so I'm sure we can get a builder in to extend that wall.

It's our first time, we might make some mistakes and I'm sure we'll learn lots of things along the way,

but as long as nothing is insurmountable, we're happy to take it on and see what happens.

It's good to see they have a positive attitude to their first venture.

They run a collectables business and this house is hopefully a new line in property collection.

Their long term aim is to build up a rental portfolio, but I was keen to

discover why, if they're both based in London, did they choose Sheerness?

There's a lot of regeneration going on and I think English summer holidays

are happening more often now.

I think people are coming to seaside resorts in the summer more in Britain

rather than travelling abroad, so maybe that's another thing that's good.

-So are you quite excited about the future and what this may hold for you?

-Yeah, definitely.

If we can make this work we can make the next one work as well,

so we want to try and hopefully get a few properties and reap the benefits if the market does improve.

Richard and Nick, despite spending over the guide price, have still got themselves a decent investment.

However, that extension could throw a spanner in the works and I just

hope this house by the beach turns out to be more treasure trove than sinking ship.

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

Still to come, in this attractive Devon village, a 1970s house that doesn't quite hit the mark.

It's not bad, but it's not really going to rock your boat.

In Sheerness, Kent, could this small two-bed terrace be a renovation project to dream of?

It was in fairly good condition, so we didn't see the need to change anything.

But first, did Carl and Jason convert this place into something worth making a song and dance about?

We return to Leigh near Wigan where nightclub owner Carl

bought this three-bedroom terraced house for £42,000.

That was 7,000 over the guide price.

He bought it for his son Jason, not only as a new home, but also

as a first step on to the property ladder.

But before he could move in, there were a few areas that needed attention.

The front elevation needed rebuilding and there was rampant damp to deal with.

Carl wanted to step aside from his normal job of running a nightclub,

but I hope this project didn't end up giving him some sleepless nights.

Well, when we return three months later, it looks like the whole front elevation has been rebuilt

and it now has that all-important kerb appeal.

Inside, that front living room has been redecorated and new flooring laid.

And it's the same in the dining room.

And the kitchen.

Removing the utility area wall has created a bigger space

so there's now more room to cook up tasty meals.

And upstairs...

Well, basically, we decided to start again.

Obviously, took everything apart.

We wanted to open it up a bit more than it was before,

do away with the horrible corridor to the front bedroom.

Obviously, once we'd achieved that,

then we managed to create a centre bathroom which then gave us a fourth bedroom

at the rear of the property, so I think, obviously, it's worked out really well and we're quite pleased.

The centre bathroom, you know, everything's come in.

It's not a tiny bathroom, it's quite a nice size, quite bright and light.

We've put a sun tunnel in as well which gives that added benefit of extra light

so you don't come in a really dark space.

Even on a dull day, you get quite a bit of daylight into the bathroom, which is a good bonus.

So the new bathroom has been made from the back of the large middle bedroom,

while a new toilet has been made out of the old bathroom.

So the whole top floor has undergone a major reconfiguration

and Jason wasn't sure when all this wall-moving was going to stop.

It was quite exciting, really. We started off taking one wall down and the next day

we'd take another wall down, and then my dad would say, "Right, that's enough, no more walls,"

and then the next day he'd say, "I've decided to take another wall down."

But, I mean, we needed to take the walls down to get the layout we wanted.

Carl and Jason got busy with the sledgehammers on that internal layout

while contractors dealt with the front elevation.

They took it down brick by brick and rebuilt to create a safer facade,

yet it did give Carl some restless nights.

There's no front elevation, we've taken all the walls down upstairs,

we've got all the acro props holding the house together so, in a way, it's relief in a morning

to come and see the house was still standing in that state!

When they were rejigging the bathroom, there was a pleasant surprise waiting for them.

Well, the interesting side of it, somebody said to me,

"Do you not realise the kitchen is considerably longer than the bathroom?"

And when we realised there was a false wall in the bathroom, we were careful and took the wall out and,

obviously, it gave us nearly an extra three foot on this bedroom, so it's quite a good added bonus.

I'm quite pleased with the way it's come out because this has made a good-sized bedroom again.

And the renovation didn't just end there.

They tidied up that backyard,

completed the rendering

and finished it off with a light-coloured coat of paint.

With that busy road outside, it's now the perfect place to park a car.

Carl and Jason have definitely done an impressive overhaul of this house,

but surely they overran their schedule?

We turned the house over within 12 and 14 weeks, and we've kept within that,

so I think we've done really well, considering we've not worked any weekends or late nights.

Organisation has made sure we can get the job finished on time.

And not only was the turnaround impressive, the whole renovation came to 23-and-a-half grand,

just £3,500 over their original estimate.

I reckon that's still pretty good going for so much reconstructive surgery.

So what's the next move?

I don't think we'll go into the letting side because, obviously,

we've done a lot of work to it and it would be a bit demoralising if we come back in 12 months

and the place needs even more work doing to it.

So, yeah, I'm either going to move into it or sell the house on.

It sounds as if Jason's still undecided, but what is clear is

that working with his father, Carl, on this renovation has helped him with a steep learning curve.

Time now to see if all their hard work gets the reception it deserves.

So Carl and Jason spent £23,500 on the renovation. If you add that

to their purchase price at 42 grand,

their total spend is £65,500.

We invited along two local estate agents to see what they thought of this father-son's joint effort.

Well, first of all,

I think my initial impression of the property

is that the refurbishment has been done very cleverly,

which is important when aiming for a particular target market.

First impression as I walked in was obviously the property is a very good size, a bit a like a Tardis.

You don't expect it to be as big inside, and the fixtures and fittings were better than I expected

compared to some of the properties in this area.

So, as a developer, he has done a good job on it.

The finish is very good. It's important to get it right first time.

Too many developers scrimp to save a bit of money and it's a false economy.

But it's not just inside that the agents reckon the value lies.

With such a busy road out front, that rear parking space

is a real selling point, so who would this sort of property appeal to?

With the fourth bedroom, it does stand out, so I think it would be very easy to market

and I'm sure first-time buyers would go to view this rather than the ordinary three-bed.

I think really, for this type of area, it is a good first-time buyer location

and also a family location, so it would suit both parties, really.

Carl and Jason spent 65-and-a-half grand here, so what could they get if they sold it?

I would say in the present climate £84,950 would be very realistic and we'd be quite confident at that.

I would put this on the market for £85,000.

-That's pretty good, isn't it?

-Yeah.

-Happy with that.

-Quite pleased with that.

For the first property we've done, that should be quite a good profit.

Minus the usual expenses,

that would give them around a 19 grand pre-tax profit on their first renovation together.

Would they be tempted by the possible rental return?

I would say now with the fourth bedroom, you're looking at £450 to £475 per calendar month.

I would be able to rent this out for £425 per calendar month.

That would mean a very attractive 8% yield, so are they tempted?

I'm quite happy with the guide on the rental, but I do think we'll probably...we'll sell.

As they aim to sell the house, the next step will be to reinvest the profit into a new property.

This time, though, with Carl's help and guidance, Jason intends to do the work himself.

Although he's confident of facing the challenges ahead, he still knows where to turn if he needs help.

I think it's basically down to I know my dad knows what he's talking about most of the time,

so it's just up to me to listen and learn, pick things up along the way and hopefully show him what I can do.

I'd probably just about agree with that, and that's the first time on this job!

I'm in Buckfastleigh, a pretty little Devon town between Plymouth and Exeter on the edge of Dartmoor.

It used to be a mill town, but nowadays it's probably more famous for Buckfast,

a fortified wine brewed in the local abbey.

Well, with the property up for auction being a two-bedroom terrace

with a guide price of £85,000, is it going to get the people at auction intoxicated?

# Drink, drink, drink to eyes that are bright as stars when they're shining on me... #

On a sunnier day, this town is popular with tourists.

It's easy to see why, but will this auction lot leave me raising a toast or will it be bottom of the barrel?

Well, in a place like this, you'd hope to unearth some period cottage or rustic farmhouse.

Well, the property I'm here to see is period, but the period is 1970s.

It's an end terrace. Let's take a look.

Well, it's not a vintage year, but this type of property can be

deceptively spacious and, with those big windows, it's certainly light.

Okey-cokey, so what have we got?

Entrance hall leading up to the main part of the house,

but straight into this which, from the outside, this is where the garage should be,

but there's this great big wall here which means it's not very useful as a garage.

Now, one of the things about this area is parking is a bit of an issue,

so I'd have thought this would be really useful, but maybe the person who owned it didn't have a car.

They've put these panels on the wall. They look like soundproofing panels

and actually it would make a brilliant studio or maybe an office.

Subject to the right planning regulations and building restrictions,

you could have this permanently as whatever you wanted,

but I'd have thought a garage was a good thing.

Let's have a look at the rest of the house.

The house is tall and thin with stairs leading up to the main living area on the first floor.

So upstairs on to the first floor and straight away I'm seeing some big changes I'd make.

I'll come back to those in a second. First, the kitchen here, obviously it's tired, it's dated,

you want to replace the units, but look at the view out of the window.

How depressing is that? You're staring at, basically, a wall!

I mean, paint a mural on it, put some pictures up,

anything, because that would actually drive me bananas.

In terms of structure, here's something you'd definitely consider.

This thing here, what is it? I mean, it's 1970s uselessness.

I mean, it's... It's silly stuff.

Get rid of it - because, if you did that, you would end up with a really nice space,

a kitchen/living area, kids' play area, whatever you want.

Much more family friendly...and, you know, what is this all about?

Opening up this space does seem a more practical option.

After all, the only person this would really appeal to is a short-order chef.

So up on to the top floor, and one thing that's interesting is that you've got three floors here.

The house is bigger than the footprint would indicate.

That's nice. However, a slight disappointment -

the bedroom here, one of your only two bedrooms at the back, very small.

You have got the bathroom and loo here on this floor which is good,

and this front bedroom is a better-sized double.

It does benefit also from big windows. That's nice, but the view out of them isn't brilliant.

So, all and all, it's not bad, but it's not really going to rock your boat.

I think the house is perfect for a couple, especially if they're starting a family.

That smaller double would be an ideal child's room.

But if you thought the house was dinky, wait till you see the garden.

Now, the catalogue says there's some outdoor courtyard space.

You have got to be kidding!

# Oh, give me land, lots of land Under starry skies above

# Don't fence me in... #

Well, there is a bit of poetic licence here as the yard is a good four square metres.

Overall, though, the house is in reasonable condition, it just needs to be freshened up.

If you replace the kitchen and the bathroom, and redecorate,

for that 85 grand you'd have a foothold in this lovely area.

But, as pretty as the village is, I asked along a local estate agent

to find out what he thought of the potential

of this two-bedroomed end of terrace.

It's a popular area. We get a lot of demand for Buckfastleigh.

A lot of people live in the town, they commute

to either Exeter or Plymouth with work.

There's also quite a lot of retired people around here as well

who like to take advantage of Dartmoor National Park.

So the location is a key selling point here, but what about the house itself?

It's not the most attractive of properties, but what it has to offer is that it's an affordable property

in a good location with scope to improve.

If somebody was to spend money on it and invest and refurbish it,

I think it could achieve somewhere in the region of £135,000 to £140,000.

There seems to be scope for profit here,

but in today's uncertain market what would the rental return be?

I think once renovated this property could achieve somewhere in the region of £525 to £550 per calendar month.

Well, it may not be all stone, ivy and cutesy-wutesiness,

but the house is a decent size and in a good location,

and its proximity to both Plymouth and Exeter means that it would be easy to rent it out.

Plus, you can add value by doing some much-needed improvements.

Let's see who fancied it at the auction.

Lot 45 is 11 Bridge Street, Buckfastleigh.

Who will say to us 95?

90? We're away. 90, that's the way.

At 90. I've got at 90. Thank you. At 90. At 90. 92.

92. Looking for four.

93 if it will help you. 93.

At 93. At 93.

94. 95. 95. 95. At 95.

96. 97?

97. At 97.

98. At 98. You could ring the bell, because that might be his limit.

Hit the bell. 100. At 100.

At 100. At 100.

At 100. Looking around the room once. At 100 twice.

At 100 are you sure and done?

It's the... A half? 100 and a half.

100 and a half. At 100 and half.

At 100 and a half.

At 100 and a half once. This gentleman here.

At 100 and a half once and twice.

At 100 and a half are you sure and done? Last chance, then. It will be sold at 100 and £500. Sir, yours.

Those winning bidders were Jerry and Lesley.

Former police sergeant Jerry and PC Lesley have been together for

three years and have always fancied taking on a project.

I met up with them back at the house.

-Jerry, Lesley, lovely to meet you.

-Hi.

-Congratulations.

-Thank you.

Tell me why you wanted to buy this space.

Well, we'd had some money available to us whereby we wanted to invest in property.

There's nothing being made in investments, and bricks and mortar is always the best way to go.

What did you like about it, Lesley?

There's not too much work to do and you can see through the colours

and it's local, it was the right price,

it's manageable and it just seemed like the right property for us.

-Is this something you've done before?

-No, this is our first venture.

We've talked about it for a long time, but it was just a case of

finding the right place, right price,

and something which didn't have too much work. Because it's our first venture, we didn't want to

get in too deep whereby we ended up with lots of problems, so this is what we ended up with.

Jerry's a keen DIYer and this property seems to fit the bill

perfectly for testing out his skills.

So, with their police force background,

did Jerry and Lesley ever DETECT that this could be the scene of a crime?

Where was your patch when you were a policeman?

-Locally.

-Oh, really?

-Yeah, yeah.

-Literally this street?

-Yes, I was...

I ended up as a sergeant and one of my later sort of outward posts was Ashburton and Buckfastleigh,

so I was the sergeant for this area, so it's coming back home to roost!

Maybe when Jerry was on the beat, he may have been subconsciously eyeing up this place.

But of course they couldn't find a property on "Letsby Avenue",

so it's more a case of let's be getting this place sorted! What are their plans?

I'd get rid of the burger hatch, and fill that in actually and make it two separate rooms.

-Oh, really?

-Yes.

-Not knock it into one?

No, it's...it's something that we thought about,

but I think we'll try it as two separate rooms and see what happens.

I thought about knocking it into one, but what do I know?

-Well, you know far more than we do, so I may take that advice.

-Well, you know,

it would make a nice open-plan space, but there are

people who like separate kitchens and living rooms, so you balance it up, don't blame me!

The view out of the kitchen window, what are you going to do about that

because it's a brick wall at the moment, or it's a wall.

Yes, very close to the window, as well.

-Maybe a nice mural on the wall or something?

-Something would be good.

-Yes.

-Yes, mural would be good.

-We hadn't thought about that, had we?

-No, we hadn't, actually.

-A picture of...

-Any ideas?

-..the Canadian Rockies or anything.

-Yes.

-You can get outdoor pictures that you put there

and it looks like, you know, the forest scene or, you know, beaches or whatever.

-Anything would be better than that wall.

-Yeah.

-We could paint it white.

-Argh! What do you mean paint it white?

-Then it would glare back in your face.

This dinky courtyard may have a case of arrested development,

but it looks like Jerry's former long arm of the law might be needed to reach the top of this wall.

But, fortunately, there are more practical options inside the house.

On the ground floor, they will turn this back in to a garage and up top install a new bathroom suite.

So who's going to do the work?

-Are you going to...

-Essentially I...

I'll probably do the large proportion myself.

Lesley's good at smashing things up, so once I've disconnected the water, I can ask Lesley

to remove the kitchen, remove the bathroom, but unless I disconnect first,

it'll be a sledgehammer and then a phone call, "Jerry, I've got a leak," so I will be doing that first!

They've given themselves a £10,000 budget and a 12-week turnaround to do the renovation.

Jerry and Lesley aren't interested in building a portfolio,

so they plan to sell and move on to the next property.

If it goes well, I think we'll just carry on with it, won't we, really?

It's another direction to go in in that it's something we both wanted to do

so, yeah, if it works, brilliant. If it doesn't, then it's an experience.

-Sure.

-So that's how you can look at it.

-Definitely.

-Yeah.

-Well, good luck with it all.

-Thank you.

-I hope it's a great success for you.

-Thank you.

-It will be.

-Lovely to meet you.

Well, I'm sure Jerry and Lesley will have great fun doing this project.

Not sure about leaving the wall between the kitchen and the lounge but, most important, will we

come back and find there's a nice mural outside the kitchen window?

You can find out later in the show.

Well, we're dying to see what happened to our budding investors.

Are they tearing their hair out or cool as cucumbers? Let's find out.

Back in the seaside town of Sheerness, Kent,

this small two-bedroom house sold at auction for 76,000, 21,000 over the top guide price.

Richard and Nick bought it.

They're based in London where they run a collectables business.

They decided to broaden their base by collecting properties.

They got off to a good start because, despite being on the dinky side,

there wasn't a lot wrong with this place that a little care and attention couldn't fix.

So two months later we went back to see how they'd got on.

First of all, we had to get the damp sorted out and any building structural work done,

and once that was done it was all decorating mainly.

One reason we chose the house is that it was in fairly good condition,

so we didn't see the need to change anything.

All the house did need was a little attention,

so the front room has had a fresh lick of paint and new carpets.

And in the kitchen the good condition of the units meant they just changed

the lino, installed a new worktop and replaced the sink.

And it's the same story in the bathroom.

It was just a simple matter of redecoration and replacing the vinyl floor covering.

And at the top of those steep stairs...

So in this room we've replaced the pane here because it had got compensation.

We've recarpeted, we've redecorated and we discovered that, behind the screen,

there was actually an existing fireplace, so we've just painted that up,

smartened it up a little bit and we think that's quite a nice feature.

These original iron fireplaces are always a great attraction whether you sell or rent out.

In fact, the overall decor is exactly the sort of neutral canvas that appeals to any market.

I think we quite like these neutral colours, and we're quite pleased

with the carpets and I think we've freshened the place up.

It wasn't too bad to start with, but I think we're pleased

that we've freshened it up and I think we've improved it somewhat.

All the damp has been treated throughout the house

and the five faulty double-glazed windows have now been replaced.

The exterior has been cleaned, repainted and the guttering tidied.

That left one remaining problem - the single-skin extension at the rear.

We spoke to quite a few people, the bank and builders and they were all of the thought

that it wasn't anything particularly to worry about, and especially in Sheerness,

a lot of the properties have these single-skin extensions.

If and when we come to sell this place we might think about

taking the extension down and incorporating an extra room somehow, but that will be a long-term thing,

but in the short term we've just left it all as it was.

They got rid of the old toilet and, after a good tidy-up plus a fresh lick of paint,

this garden now looks like a place to relax and enjoy that afternoon sun.

And if you're a bit peckish...

In the backyard, we found something that we hadn't expected.

We hadn't seen it when we viewed the property, there's actually a grape vine and it's coming into fruit now,

quite a lot of fruit, and I hope the tenants will enjoy it!

Well, it looks as though the garden is bearing fruit, but will Nick and Richard's labours yield a profit?

This minor renovation cost only £3,000 of their original five grand budget.

On top of their 76,000 purchase price, that would take their total spend to 79 grand.

It's a good start, but will it be enough to make their new collecting business a worthwhile venture?

I asked two local estate agents if this two-bed house in Sheerness

has what it takes to attract the interest of potential renters.

It's a very nice property.

It's been done very well

and I think it's ideal for this area the way they've completed it.

I think, yeah, they've made a vast improvement on the property as it is at the moment.

Obviously, they haven't done anything structurally to change it,

but they've modernised it, brightened it up.

It makes it a much more viable option for a buyer.

With the current state of the property market uncertain, both estate agents think letting the house

is the best option so, as that fits in with Richard and Nick's plans, what could they achieve in rental?

I think you could rent this property out for between £500 and £550 per calendar month.

I think the rental value would be between 575 and 600 per calendar month.

I think that sounds about spot on to me.

Yeah, we're happy with the higher end of that range,

but that's the sort of figure we had in mind.

If they can get that 600 per calendar month,

that would give them a whopping 9% return on their £79,000 investment.

But how much could they get if they decided to sell?

As I see the property today,

I would probably be looking at an asking price of around 90,000 for the property.

I think the sale value for this property would be around £90,000.

-Wow!

-90,000? We're pleased with that. That's more than we've spent on the property

and more than I was expecting.

That sale figure of 90,000 would give Richard and Nick's first project

a healthy introductory pre-tax profit of 11,000.

It's a great start for their property portfolio

and for these development novices an easy renovation that will have them off to another auction soon.

Yeah, we've both enjoyed it, we've both learned a lot and I think we'd be happy to do it again.

Earlier, I was in the pretty Devon village of Buckfastleigh

where Jerry and Lesley bought this not-quite-so-pretty two-bed end of terrace for £100,500.

Its '70s exterior was matched by its dated, tired interior

and between the living room and kitchen was a serving window that had served its time.

I'd get rid of the burger hatch and fill that in, actually, and make it two separate rooms.

-Oh, really?

-Yes.

-I thought about knocking it all into one, but, you know, hey, what do I know?

-Well, you know far more than we know, so I may take that advice!

-Well, you know!

Well, did they listen to their instincts or go for my favoured open-plan model?

Six months later, it was time to see what Jerry and Lesley finally decided on.

First of all, we can see a new front door has been installed and that garage door painted.

And it will actually serve its purpose now with the garage space reinstated.

On the middle floor, they've gone for...

..their instincts, and it seems to work.

In the kitchen, the tired yellow walls and chequerboard tiles

have given way to a more stylish and contemporary look.

Right, with the kitchen, when we first had the property

we had a worktop here, a worktop across there with a gas cooker.

It was all in a horrible yellow colour, and there was a serving hatch

in that wall into the lounge which has now been blocked in to make it two separate rooms.

There wasn't an awful lot we could do out the back, so therefore we just has to paint the back wall,

but what I wanted to do is make the most of the size of the kitchen.

It was slightly too small to put a table in,

but at least I've created enough workspace for anybody with a modern family.

There's space here for a dishwasher or a washing machine, space over in that corner for a low level fridge

and also in the kickboards underneath I've got ice blue lights

which make a nice feature in the evening, it's quite low lighting.

And also another added touch we did

is on the actual tap - it's a rinse thing for your saucepans and bits and pieces.

Just extra little touches, really, which, you know, I think has made the most of the kitchen that we had.

It's a good solid transformation.

While the blank wall outside is uninspiring,

having neutral decor inside is exactly right for selling the property.

Jerry has carried that look on upstairs, where the bedrooms have all been done in the same style.

That just leaves what was a dated bathroom.

Right, here we've got the bathroom all finished, which is very nice.

Originally this was in avocado and the toilet pan was there, the basin

was there and then the bath was up in that corner, all on one side of the bathroom, and what I wanted to do was

spread it out a bit to reduce the length and widen it, so we've now got

a white suite with the bath, toilet pan and basin under the window.

I changed the radiator for a heated towel rail, all tiled up to the mid height.

I put up fire-rated down lighters.

I decided to put in an electric shower within the bath area and, to try and keep the space and the light,

instead of a shower curtain I put on a hinged glass screen and I'm really pleased with the end result.

It's a nice modern bathroom and hopefully it will appeal to all markets.

With Jerry and Lesley aiming for the resale market, I reckon the interior of this product hits the bull's eye.

It's that small yard out the back that could narrow the target for them and prove a bit of a problem,

but overall it's an impressive result and for DIY enthusiast Jerry a renovation that proved pain-free.

The project went very well. I... I did most of the work myself.

Lesley helped me when she was able to and I did give her the task of removing the awful woodchip wallpaper

whilst I was doing something else, but all in all things worked very well.

Jerry and Lesley originally had a 12-week timescale.

In fact, with some family help with the plumbing, carpentry and replastering the ceiling,

the whole job took just 14 weeks.

The drawback was that it was spread over six months due to other business commitments!

Did that affect their finances?

The budget originally was about 10,000. We've gone slightly over.

Not including fees, we've gone to about 12,800, so I'm still quite pleased with it.

Add that to purchase price of 100,500

and that would take their spend to just over 113 grand minus fees.

For them, it started as a business venture,

but something tells me that they've got quite attached to this place.

We both love it. Yeah, Lesley and I both love the property.

It's only just come together.

In fact, in the last 24 hours with the carpets going down as a last rush and all of a sudden we can see

the sort of end of our efforts and it really is a superb property.

But as Jerry and Lesley aim to sell on the house, time to see if the market agrees.

We asked two local estate agents

to give us their thoughts on the renovation.

I think there's been some great improvements done to the house.

It presents and looks very good. A good idea to change the kitchen

and make it separate. It looks very well,

it's been refurbished extremely well,

a good choice of units.

I think it's been immaculately presented.

I think they've done a very good job.

I think this property would sell very well.

Somebody can come in here and just bring their own bits and pieces,

move straight in. Absolutely.

So thumbs up from the agents, but what could the house achieve for a resale?

Remember, they spent 113 grand on the house, so was it money well spent?

I would put the house on the market in its current condition in the current market at around £135,000.

We would look to put this property on the open market at between £130,000 and £135,000.

Lower than what I expected, to be honest.

It's been valued by two other agents at a higher price and from my point of view

I obviously want to realise as much as I can, so I will keep with my original valuations.

Jerry aims to sell for just under 145 grand.

If he gets that, it will make the couple a possible pre-tax profit of 31 grand.

Impressive! What about rental return?

If the property was to go to rent I would expect somewhere in the region of £550 to £600 per calendar month.

We would look to achieve £650 per calendar month.

That's quite surprising.

I didn't expect the rental for 650 would be quite that high, but if I did have to rent it,

that would be a very good figure that I would rent for.

That would give Jerry and Lesley a yield of just under 7%.

It won't stop them from selling, but has definitely given them food for thought about their next move.

Well, this one appears to have been a very good success.

Hopefully we can sell it, so I would certainly look for

something else at the right price and go off and do exactly the same again.

Join us next time for more pleasures and pitfalls from the world of property developing.

-We'll see you then.

-Goodbye.

-Goodbye.

Subtitles by Red Bee Media Ltd

E-mail [email protected]