Episode 14 Homes Under the Hammer

Buying property in the right location is more important than ever.

Yes, buying in a good spot makes your property easier to sell or rent out.

The good news is property auctions are all over the country,

so the chances are you will find a home you like under the hammer.

Buying property is one of the most stressful things you'll ever do.

Yes, it's important to realise there may be problems and pressures ahead.

So will today's buyers be able to take the strain?

'Not everything at this property in Exeter is as it seems.'

The layout of the house just isn't doing it for me.

'You can see the sights of London

'from the flat at the top of this block.'

I mean, look where we are, we're in the heart of London! Look at that view!

'And in Derby, I find a sizeable garden round the back of this semi.'

When I say it's a sizeable garden... it's big.

All these properties have been sold at auction, and we find out

who bought them and for how much when they went under the hammer.

Sold.

'I'm in Alphington near Exeter, where one property has an intriguing background.'

Now, we all know that property prices have gone up over time, but here is a really interesting fact.

When it was last sold in 1959 the house that I'm here to see was sold for £1,400.

Well, at a recent auction that same house had a guide price of £115,000.

That's 100 times more!

Now, just think, what would your house be worth

in 50 years' time if inflation carries on at those levels.

Anyway, this is it.

It's a two/three-bedroomed mid-terrace. Let's take a look.

'From outside, things look good.

'Roses around doors usually create a homely lived-in charm,

'so let's see if it meets my expectations.'

OK, straight into this little porch area. Now, I'm normally a big fan of these places -

a place to put your bike and stuff - but in this case it just doesn't work,

partly because there's another door into the entrance hall

to the actual house, and it just feels cramped and claustrophobic,

not least because you go straight into the staircase here.

At the very least open that up,

so you've got spindles on there with light coming through.

But yeah, we don't like that at all.

Front room there doesn't look to be a bad size.

More kind of strange rooms going off in this direction

and then through into the kitchen.

Now, intrinsically it's not a bad-sized room.

Units - well, if you were going to rent this out they would probably make do.

I think you could do a lot more with this space, and again, it doesn't feel right.

The layout of the house just isn't doing it for me,

and I don't know what I'm going to do to make it better.

It gets worse. I mean, what is this room all about?

It's sort of like a passageway through to the rear of the property.

It's too small for a sofa - it just doesn't do anything.

And then you carry on into what I suppose is the "third bedroom".

Could you get a bed in here? Maybe just about, but I'm more concerned

about the quality of construction. If THIS is anything to go by...

'..then goodness knows what the rest of the house will be like.

'The layout here hasn't exactly got me enthusiastic about the place.'

So, tacked on to the rear of the property

are some very strange bits and pieces.

First of all there's this sort of utility room,

which I suppose is a reasonable-sized space.

But then there's almost like an extension

tacked on to the extension, which is this bit here.

It's actually got that small bedroom in it, but it really doesn't work.

The garden, though, is quite pleasant.

A reasonable size. It's obviously in need of a bit of tender loving care,

but that's not too big an issue.

But those two additions definitely need taking a look at.

'So, no positive vibes yet about this house.

'The front room's the only redeeming feature of the ground floor so far.

'Oh, well - onwards and upwards.'

Well, upstairs, thankfully, the layout improves.

Sadly the choice of lampshades doesn't! Interesting(!)

But er...what have we got?

Basically, a big double bedroom on the front. We like that.

Bathroom - well, it's not huge and it's certainly in need of rejuvenation.

Money spent in there would definitely be well spent, though.

Rear bedroom, and look at this -

the piece de la resistance of lampshades.

Quite spectacular!

Something a bit more seriously wrong though is out the back -

or potentially wrong, for sure.

Bottom of the garden you can see that there is some kind of

industrial complex, and what

I'm more concerned about is the bit of land at the back.

It looks ripe for development, so what you need to do is make sure

that your solicitor checks out,

looks at the local searches and the local town plans, makes sure there's

nothing major planned to go there, because that would definitely affect the value of the house.

'Something that all would-be developers should look out for.

'Research the area and make sure there's no planned development

'that could have a negative effect on the value of your house.

'Let's face it, the ground floor arrangements here

'are a big negative.

'But what does a local estate agent make of this three-bedroomed terrace

'that was guided at 115,000?'

It's a typical auction lot. It needs renovation from top to bottom.

New kitchen, new bathroom, redecoration,

a reconfiguration of the downstairs to make it a third bedroom.

And if you're a keen gardener, there's plenty to do outside.

'Let's talk figures. How much could someone make on this place once renovated?'

The rental market's quite strong, and I would expect it to fetch 600 to 650 per calendar month.

'What about the resale value?'

A property like this in this street could fetch somewhere in the region of £160,000.

Well, the upstairs is fine, but the downstairs definitely needs reconfiguring, doesn't it?

But remember that £115,000 guide price, not at all bad for this area.

Let's find out what happened when it went to the auction.

It's 38 Blenheim Road, Alphington in Exeter. 110...

11?

111.

112. 113.

14.

15. 16.

17.

18.

19. 20.

121. 122. 123.

124. Young man in the middle.

125. 126.

127. 128.

129. It's the young man down the middle.

Oh, a fresh face at 130.

131. 131 and a half.

132. 132 and a half.

132 and a half. 133. 133.

133. 133 and a half.

133 and a half. 133 and a half.

At 33 and a half, first time...

133 and a half, second...

At 133 and a half.

Gentlemen on your left's got it at 133 and a half.

Sir, yours, congratulations, there we go.

'That successful bid of 133,500 quid came from Ian and his wife, Yanni.

'Ian runs a landscaping and building business.

'I met them back of the house where Ian told me about their plans.'

-Ian, lovely to meet you.

-And you.

-Congratulations.

Why did you want to buy the house?

Well, there's many I've looked at and I got it from auction because I thought it was the right price.

The cheapest one in the area has been sold for 170, so I thought 133

would give me room for manoeuvre in doing what I want to do.

So you've done your research and all that kind of stuff.

No, I've done no research at all.

You know that prices in the area are 170.

I take a gamble, because this is the ninth one I've done.

-Right.

-So, some... Some you win, some you lose.

Right. Tell me about the ones that have been successful.

One in Plymouth was very successful.

Bought it for 40, sold it for 90 and it cost me 10,000 to do up, basically.

-Wow, quick turnaround.

-It was very quick.

-It was on the market two weeks.

-Wow!

-So that was quick turnaround.

-And one where it hasn't gone so well?

I lost 40,000 on it.

So the one that I did well on, I lost the following year on the next one.

Oh... How come you lost 40,000, what happened?

I bought it at the height.

Bought it at auction, got carried away, didn't put down a maximum figure

like I should have done...

Paid too much. I should have stopped.

# You got to know when to hold 'em

# Know when to fold 'em

# Know when to walk away... #

'After that experience, Ian is brave to dip his toe back into the choppy waters of the property market.

'Fate seems to be working against him.

'He had a minor car accident on the way to see the house pre-auction,

'which made him late, so he only managed to see it for five minutes.

'He may not have bought it blind, but certainly partially-sighted!'

Having seen it for slightly longer than five minutes now, how do you feel?

Well, for the next hour, I'm thinking, have I done right?

Have I made a mistake or will it work out OK?

So at this moment in time as we stand in your kitchen,

you're not sure whether it's going to be a success or a failure?

-No.

-Oh!

Not at all. Because life's a gamble, isn't it?

We're all a long time dead, so we've got to make sure that you take these gambles and go for it.

'Well, I love Ian's up-and-at-'em spirit,

'but I'm not sure about his developing methods.

'Still, several of his other houses HAVE paid their way in the past,

'so he must know something.

'I asked his wife Yanni for her thoughts

'on his approach to property.'

Well, erm....it doesn't actually give us a return,

because the properties are let out and they just pay for themselves.

But every time he says to me this'll be the last one -

and yet we've bought another one! And here we are again.

But hopefully, because we lost on the last one, this'll give us a profit

to move on and possibly do another one.

'Positive vibes from Yanni.

'She obviously supports Ian wholeheartedly.'

'What's her role in the developing process?'

Try and keep things to budget.

I do all the paperwork behind the scenes, any planning applications.

All the budgeting, making things aesthetically pleasing.

Maybe furnishings, you know...

The woman's touch, if you like, when it comes to the internal.

'But there's work needed here to make it earn money.

'What's Ian's budget?'

I don't want to go over 20,000, but I've got a budget of 25.

Right. That's quite a healthy budget.

Well, you're looking 3,000 to 5,000 for the kitchen, 2,000 rewiring, 3,000 for the drive...

Bathroom's going to be another couple of thousand.

By the time you to add it all up, and then take into the accounts

what you're paying back to the bank each month,

it's got to be a relatively quick turnaround,

or alternatively if you don't sell it I've got to let it,

so I've got to make sure I'm still within budget to let it.

'Ian's planning to do this job in his spare time. And his timescale?

'Well, how about six to 12 months?

'I can't believe that's his idea of a quick turnaround!

'It's another example of Ian's rather individual take on developing.'

So what does your wife think about your strategy - he says in inverted commas - for property investing?

I think really deep down she thinks I'm mad.

And certifiably, probably, yes!

But yeah, I think she thinks I'm a bit nutty, but what I do, I do,

and she'll never change me. And she's met me and has to accept that.

So er...yes, that's the way I am.

If I want to do it, I will do it and that is it.

MUSIC: "Crazy" by Gnarls Barkley

So, Ian with a rather unconventional attitude towards property investment.

Will he make a success of this one or not?

You know what? I don't think even HE knows.

You can find out later in the show.

When you think of parks, you think of wide-open spaces, trees, flower beds and a playground.

Well, the Royal Regent's Park in northwest London offers just a little more.

All the usual cafes and mature shrubs, plus an open air theatre,

a community sports centre and even a zoo.

MUSIC: "Parklife" by Blur

'Well, that's certainly one lively park, and because it's on the cusp

'of the West End and a short commute to the City, property prices tend to be high.

'I'm off to Park Road, right on the park's borders.'

And here I am.

Now, two years ago a flat in this block sold for a staggering £550,000.

Today, a guide on a one-bed flat in this block - just 275,000.

'It's a telling sign of recent changes in the property market.

'But this place, built in the 1920s, is impressive, solid and attractive.

'However, more importantly, the lift is working - because I'm off to the seventh floor!'

Ooh...

Do you know, I don't know what I was expecting in here,

but it's quite a treat to walk into such an open space.

You've got all the rooms running off this main entrance area,

and what I like is the little Art Deco features -

I mean, look at that front door.

You've got a lovely wide front door, big deep cornicing...

But you can see straight away the flat's in a state!

Half a ripped-out kitchen, the bathroom's all falling apart...

But a really big space here. So this would be the lounge area.

Now, straight away my eye is drawn to that window

and the little window you've got round here in the kitchen.

It would be great to take this wall out,

and just walk into one big open space.

Imagine the light that would create, and you'd have two corking views.

But my only concern is, the freeholders of this property would not let you take this wall out,

so the chances are this will have to stay as it is.

But you've got this nice little fireplace here, look.

Little Art Deco style.

It's got a really good feel, this property,

you could have a sofa there, big flat screen telly on that wall...

But I think the best thing is - look where we are!

We're in the heart of London!

Look at that view. It's crackin'.

'Oh, it really is.

'And you're just a short hop, skip and a jump from Paddington station.

'With just one, but decent-sized bedroom, this is certainly a city pad.

'It's a shame the kitchen and bathroom

'aren't as impressive as the views.

'It's why a flat with this sort of potential was sold at auction.

'With no working kitchen and bathroom,

'this place would probably be unmortgageable,

'so it was for cash buyers only.

'It's also leasehold, but has 150 years left to run.'

This purpose-built block was built in the 1930s,

and for its age, you know, I think it's in quite good condition.

The communal area is well maintained,

plus you get your very own porter.

Any packages will be signed for, and it's comforting to know that

somebody's manning that door. But, that comes at a price.

The service charge for this block is a whopping £4,500 a year.

If you fail to see that in the legal pack,

you could be in for a very expensive surprise!

'That's a massive charge every year,

'and something you'd have to factor in to your costs for this flat.'

You can see this is a lovely period bay window,

but run my hand along here, and you can certainly feel a draught.

Now, that is because they're Crittal metal single-paned windows,

so the new buyer may want to come along and double-glaze them.

Well, I'm afraid that won't be possible, as the freeholder will not

allow it, because all the windows in this building need to look the same.

'Yes, uniformity is extremely important to the freeholders of this block.

'Preserving the look of this period frontage is really important.

'But something else is more crucial for investors.'

The rental market in this area is very strong.

Now, Regent's College has up to 2,500 students,

and the London Business School, which happens to be directly opposite,

has just under 2,000 students.

No shortage of tenants, then!

'With that guide price of 275,000,

'this could be an interesting investment -

'but remember - cash buyers only.

'What does a local estate agent make of this one-bed flat in Regent's Park?'

Rossmore Court is ideal for people looking to live as a pied-a-terre or as a rental investment.

Very few of them actually come on to the market. There's something like

about 130 flats in this block, and we've only sold one this year.

'That's because its location on the edge of the West End,

'its easy access to major transport links and nearby Regent's Park

'makes it a gem.

'However, that service charge is not such a treasure.'

The service charge is just over 4,500 a year,

which...is not an immodest sum.

It does cover heating, communal heating and communal hot water.

'So, that service charge isn't all bad news, but it's still £375 per month.

'And you'd need to cover this on any rental deal for the flat. But how much could it rent out for?'

I would be able to rent this out for £330 a week.

'Deducting the service charge, that could be £12,500 income a year. But how much could it sell for?'

Once renovated, in the area of £350,000.

I walk into this property and see a blank canvas.

A prime London flat that you can stamp your own personality on.

However, before getting carried away you must remember this property

is unmortgageable, and so it's one for the cash-rich only, I'm afraid.

Let's find out who that was as we go to auction.

Lot 102, which is 81 Rossmore Court, Park Road, London NW1.

What will you bid me?

275. 280. 285.

290.

295. 300.

300.

305 anywhere else? 305. 310?

310. 315.

OK. 310 I have. 315 anywhere else?

For the first time at 310...

For the second time at 310. On the phone, Tom? Richard?

I'll take your two and a half, then. 312 and a half. 315.

312 and a half on the front row.

315 anywhere else?

For the first time at 312 and a half...

The second time at 312 and a half...

For the third and final time at £312,500 - are we all done?

Very close, but not quite there. Come and see us.

'That final bid was £1,000 short of the reserve price, so the property went unsold on the day.

'But, after some post auction negotiations the vendor did

'eventually sell to a property developing business for £290,000.

'Alicia is the interior designer taking on this project.

'Let's hear about her plans.'

Alicia, it's lovely to meet you.

Now, this is an interesting one because this property didn't sell at auction, did it?

-So what's the story behind you buying it?

-Well, the buyer didn't buy it in auction.

It didn't sell, so they went after the auction and...

-and sorted it out between them.

-So who is the buyer?

The buyer's my husband, and I act on behalf of him and his company,

which is a property company, property developing company, and I do a lot of things up for them.

Oh! So, what's your role going to be in this?

Well, I will be involved from the beginning, designing

everything, buying everything and being on top of the builders,

project managing everything, and then give the keys back and erm...well, hopefully sell it for much more!

'Originally from Poland, Alicia spent most of her life living in Germany,

'but has been in the UK for the past seven years.

'She's renovated several properties already, and reckons the £290,000 is pretty good value.'

I think it's a very, very good price.

Very, very happy obviously for...

for my client.

And er...yeah, I think we're going to be able to make some money out of this one.

-What's it going to be like having your husband as your client?

-It's pretty straightforward.

He gives me the keys and leaves me alone the whole time,

and I give him the keys when it's ready and it's all done.

'Alicia makes it sound so easy, although her plans here are straightforward.

'She has a £15,000 budget, and one month to refurbish the entire flat, adding a new kitchen and bathroom.

'She's aiming for a striking and contemporary feel, and has the right experience to get that effect.'

I did a postgraduate degree in interior design.

After I have done one property up, which we used to live in, and I did it up and we sold it and we made

quite a lot of money on this and I really, really enjoyed it, so I did...

did the course and started doing, and one after the other gained more and more and more experience, obviously.

I was in a creative industry before anyway, so it's...

That's how it happened.

'Alicia used to be a make-up artist, so you could say she aims to do a makeover.

'It seems a natural progression from transforming people to making properties look stylish, but in

'this case she knows that achieving the right look means more than just applying the right colours.'

I think about the flow of the property, how it goes from room to room, and

I always think about how it would be to live here and how, you know, to make it look really beautiful and

comfortable, and make it work, because design is not just about the looks, it's about function as well.

'But in the end, it's all about getting this flat to pay its way, so with that £290,000

'purchase price, and £15,000 budget taking the proposed spend to 305,000, will the figures add up?'

So how much are you going to want to market this for?

They will be looking to sell it for around 375.

If they can get

a rent of 400 a week, they'd probably keep it because it fits in

with their rental portfolio and it would be good for them to keep it.

-Are you excited about getting started now?

-Very excited, yes. Very excited.

It's always... It's always great to get in here with the hammer and just

get cracking. Because it's over so quickly, so, you know...

Alicia, it's been great meeting you. I'm so excited! Good luck.

I hope I'm not going to disappoint you.

Alicia is a stylish lady, and she knows what she wants and she's got vision for this place.

I can't wait to see the transformation.

Now, the big question is, will they sell for 375,000 or will they end up renting for 400 quid a week?

You can join us, and find out what happens, later on in the show.

'Coming up, I'll be shining more light on this Derby property.'

Compared to the other rooms this one is very dingy.

That's probably all this vegetation!

'Have the renovations at this London flat disturbed the neighbours?'

There's a lot of people live here, with dust and noise, so... this was really the challenge.

'But first, the buyer of this house has some advice.'

Don't do it! It's madness!

'This two-bedroomed house in Alphington, Devon,

'was bought by landscaper and builder Ian for £133,500.

'For him developing properties is part hobby and part gamble.

'He's already renovated nine properties, but is still wondering what the winning formula is.'

You're not sure whether it'll be a success or a failure?

-Oh.

-Oh!

Because life's a gamble, isn't it?

We're all a long time dead, so we've got to make sure that you take these gambles and go for it.

'Ian seems to have a positive spirit about tackling the problems ahead.

'Although there's nothing structurally wrong with the house, its odd ground floor layout

'didn't make it very user-friendly, but something told me

'that whatever Ian did he would enjoy the ride, and hopefully luck WOULD be on his side.

'Well, it's been six months and Ian's been busy.

'There's a new front door and renovated porch.

'And the living room has been completely overhauled.

'Step into that kitchen, and you can see where Ian's spent most of his energy.'

Right, well, this is the kitchen and this is the room that we did the most

work in, because everything had to be replastered, reskimmed, repainted.

Vented cooker, integrated fridge,

integrated freezer, integrated washing machine...

All the rewiring, all the sockets - there's 16 sockets in the kitchen.

The cost of the kitchen I was very pleased with, because it worked out about £4,000

for the kitchen, the integrated units, all the appliances... Everything.

I think the kitchen's worked out very well.

I'm very pleased with it, and it couldn't have gone any better than anticipated.

'As for the rest of the house, Ian has used fresh, simple colours to

'create a light airy effect to appeal to both buyers and renters alike.

'The house has been completely replumbed, and a new bathroom suite installed, again in neutral colours.

'But no-one could be neutral about that awkward third bedroom arrangement.'

Well, this room was just a long, elongated room with

nothing at all through here,

so we built on this sort of piece here, put in a downstairs toilet, sink,

mirrors, all the rest of it, heaters in there.

So it's a self-contained small flat really, if required.

In here was the main doorway through, which has now been blocked up, so this room can now be a bedroom,

a play room, a study, or whatever you wish.

'I reckon the third bedroom is still a compromise, but Ian's done a pretty good job of making it work.

'In general, do I get the impression that it was an enjoyable project for him?'

It's been an absolute nightmare.

When we took the five layers of wallpaper off the walls

in the majority of the rooms, all the plaster fell off the walls.

There was a lot of unforeseen work,

weeks of plastering, preparation, dust and mess and dirt and rubbish

before we could continue.

'Well, look on the bright side, Ian, at least it's all done and dusted. And talking of bright sides...'

Now, the conservatory I'm very pleased with.

This roof has got argon gas in it, which retains all the heat.

It's worth the extra money to have it done, it keeps all the heat in, and obviously the doorway over there

has been blocked up because that was the doorway through here

out into the garden, which is another project.

To clear the garden there was, just to start with, there was

three tons of rubble and hardcore and concrete,

and that took another an extra two weeks longer than anticipated.

But as you can see it's worked out very well.

'Overall it's a pretty solid renovation, with the kitchen taking pride of place.

'Because of his landscaping business, Ian and his friend Jim

'took six months to complete the job in their spare time.

'Did they stick to their planned £25,000 budget?'

The budget went out the window the second week we were here.

Couldn't care less. You've started, you've put your neck in a noose,

you get on with it, don't moan, and you then keep your fingers crossed

and basically just hope for the good and not the bad.

MUSIC: "The Good, The Bad And The Ugly" by Ennio Morricone

'Luckily, it didn't get ugly, and Ian managed to keep within the budget of 25,000.

'Added to his £133,500 purchase price

'that takes his spend to over £158,000 -

'and then someone came with a fistful of dollars.'

Well, since you were here originally and I was hoping to achieve 170,000,

as it happened I managed to sell it for 175,000.

'What a stroke of luck!

'Someone called in on Ian during the renovation,

'and offered to buy the house as long as it was completed in a fortnight.

'This meant the sale beat the deadline on the Treasury stamp duty holiday and saved the buyer money.

'So now, over £16,000 better off, has he learnt anything more about property renovation?'

Have I learnt from this renovation project? Yes, of course I have.

Don't do it! It's madness!

'Surely there must be some good things about it?!'

The best part of the project is today, when I hand the keys over,

and I've got the cash in my pocket and I can walk down the road.

'Well, Ian's a happy chappie!

'We asked along two local estate agents

'to take a look at the renovation, to see if he could have got a better deal.'

The current vendor has done a very good job.

He's left the property light and airy and kept everything neutral,

which is a very good basis for renovation.

I think the vendor's done a fantastic job.

The property's light and airy,

and will appeal to a wide-ranging market.

'The estate agents thought if Ian took the rental option, he could have got a possible

'£725 per month, which would have meant an approximate yield of 5.5%.

'But he sold it for 175,000. Could he have got a better resale figure?'

I'd put the property on the market for £185,000, in order to achieve around the £180,000 mark.

For resale purposes I would value this property at 184,950.

I think that's very good, and I'm very pleased with what I got because no agents WERE used.

Saved a lot of money there, and it was a quick sale,

two weeks from seeing the property to completion. So I'm very pleased.

'It definitely paid for Ian to follow his own path.

'He can take away a pre-tax profit of £16,500. Not bad for a hobby!

'Is he thinking about gambling on any more properties?'

Future plans in the property world?

Will I ever do it again?

No today - yes tomorrow.

'In that case, we'll keep an eye out for Ian at future auctions!'

I'm in Mickleover in Derbyshire, just a few miles outside Derby city centre.

It's known rather exclusively as "The Village".

It's a very desirable place to be, and interestingly enough property prices here

have stood up fairly well in recent times, and they are some of the highest in the county.

You can see why. Tree-lined streets, a mixture of houses...

It's a good start.

'As I said, this is a very desirable area, but I'm a little worried about that main road.

'It's useful for commuting, but could be rather noisy.

MUSIC: "Open Road" by Bryan Adams

So, what was on offer here in Mickleover?

Well, it's a property on Chain Lane, just off that main road that links Mickleover with Littleover.

Three-bedroomed semidetached, had a guide price of 85,000 quid...

That's it.

Don't look too bad from the outside!

'Well, apart from that half- rendered exterior.

'I'm not a big fan, but would be tempted to leave it in case there was worse underneath.

'I wonder if I'd be rattled by anything else inside this Chain Lane property?'

So what's in store behind the door?

Actually, it looks all right.

Nice light and airy entrance hall here.

I mean, no surprises on the layout, very 1930s semi kind of style.

Corridor here, stairs up to the bedrooms there.

A front sitting room -

nice that you've got the open fire, you could make a feature of that.

Now, that is one area that looks like it needs some work,

the kitchen. It's not a huge space.

Not a lot of things you could do with that.

Certainly you'd need new units.

What you could do in terms of grabbing space from other rooms...

it needs thinking about, that.

One nice thing - under-stairs cupboard,

although the electrics look like they need a bit of attention.

Through to the rear sitting room.

Gas fire there, but there's probably space for a real fire as well.

But compared to the other rooms this one very dark, dingy.

That's probably something to do with all this vegetation growing in from the garden!

What I'd want to see though there is a set of, I don't know,

patio doors, maybe French doors,

bringing the garden into the house, lightening up the room.

That said, all in all, a great start.

MUSIC: "Cruel Garden" by The Stranglers

'It's such a shame the garden is blocking out not only light, but the view as well.

'I went out the back, to see what could be done to clear it.'

Well, at the rear of the property, a surprise.

A garden. Not just any garden - I mean a really considerably-sized garden!

Now, that could be a good thing or a bad thing.

If you're renting out the property, then having this kind of area might not be a good thing because

whoever rents it is going to have to look after it.

Because when I say it's a sizeable garden...it's big.

Really, really big! It must be 150 feet, maybe 50 metres...?

Wow, you could almost land a light aircraft here!

'If this garden was mine, I'd certainly be tidying it up

'and inviting all my friends and family round for summer parties.

'In fact there's plenty of room here for the whole village!'

So upstairs a fairly standard layout, but before I show you that,

just point out these spindles of the banister here. Far too wide -

if you were renting this place out or if you had small children yourself you'd want to put some

extra rails in there just to stop small people falling through, for certain. What have we got?

Sort of smallish room there, then two good-sized doubles.

Great to see that there's a bathroom and a loo up here.

I mean, all in all, it really works as a house.

It's a fairly standard layout, but...it's worked for years

and that's why it is the way it is.

The only thing I would think about changing

is the central heating system because basically there isn't any.

Storage radiators, obviously very expensive to run.

Stick in a new green combination boiler, you're going to save

the environment and yourself lots of money.

All in all though, great house.

'The rooms upstairs are a good size and have loads of potential,

'although the decor might need a little calming down!

MUSIC: "She's A Rainbow" by the Rolling Stones

'In fact, the whole place should be decorated throughout,

'but there's no major structural work necessary.

'Although it could do with a more muted bathroom suite!

'What would a local estate agent make of this property?

'I invited one to take a look.'

Clearly the property needs a lot of refurbishment internally,

and I would raise a question mark over possible structural defects externally.

Looking from the outside I've noticed a few tiles

that seem to have slipped, some cracks in the walls and possible issues with the pointing.

'So, who does he think would be attracted to this place once done up and how much should it cost them?'

This property would undoubtedly appeal to a family,

and for rental I would imagine you could get 550 per month.

'What if the new owner decided to resell?'

Once the property's been renovated, being in the catchment area of Littleover Community School

I would imagine that you could achieve £155,000.

Well, there you have it.

All in all, a terrific property.

Yes, you'd have to spend a bit of money to get it up to scratch,

but that money I think would be very, very well spent.

Good area, amazing garden. I mean, imagine growing your vegetables down the bottom there - superb!

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

Lot 62, 61 Chain Lane in Mickleover.

96.

96,000.

97 somewhere else?

At 97 I've two of you together. 98...

99 on the front row. 100. 110. 115.

And a half. 116.

117.

..500. 119?

119...500.

120?

All done? 500, thank you. ..21?

121. 121 and a half? 121 and a half.

122, sir? 122.

No?

£122,000. 500 somewhere else.

At £122,000 then, for the first time...

500. 122 and a half. 123.

123 and a half.

124.

124,000. Five?

500.

126.

126 and a half.

27? 127.

No? 127...

Once, twice, third and last time...

Sold at 127. It's yours, sir, thank you.

'And the successful bid of £127,000 came from Tarsum.

'Tarsum lives in Derby, and works as a plumber and central heating engineer.

'He was bidding at auction on behalf of his daughter Indie and her husband.

MUSIC: "Kids" by Robbie Williams and Kylie Minogue

'They live in London with their baby daughter.

'This is the first of what they hope will be many investment properties.'

Indie, Tarsum, lovely to meet you. Congratulations.

-Thank you.

-So how was the auction?

A bit nerve-wracking.

Of course, it wasn't my money, it was their money I was spending, and I've not been to an auction before.

I have been for cars, but never for a property. Because it's the biggest investment in your life,

and you can make a mistake and there's big money at stake.

So you'd agreed a budget beforehand, had you?

-We had, but we had to go over it.

-Yeah.

-On the spur of the moment.

-What was your budget?

-How much was it? A hundred and...

-105 to 110.

'110,000!

'Well, they've gone over that by £17,000.

'Their final bid was 127 grand, so they must have really wanted this property.'

-What was it about it that you liked?

-There's the least amount of work to be done.

Some of the properties we saw, there was a lot more work

to be done to make them liveable.

This one's a sort of nice area,

so it's all...

Either renting or selling it's a good point.

-Right. So did you see it before the auction?

-No, only on the internet.

-But you trusted your dad.

-Yeah, totally.

'As I say time after time on this show, bidding blind is

'a very risky thing to do, but at least Indie's father HAD viewed it and they WERE lucky this time.

'The work is all mainly cosmetic.'

-What are you going to do to the place?

-We're going to modernise it for a start.

We're going to put the heating system in which is nonexistent. Well, outdated.

And...rewiring,

and also new bathroom, new kitchen,

and then basically carpet it and decorate it.

We may put some patio doors at the back.

At the front we've got to make a drive for parking because we've got

-no off-road parking at the moment.

-That's a very good idea.

-Yeah.

'A drive at the front will make the property much more appealing to potential buyers or tenants.

'Most of the work is going to be done by Tarsum and his team,

'but he will need to get some contractors in for that drive.

'Decorating the house will be down to Indie and her husband, who've estimated

'around £15,000 for the work. But they are still undecided what to do with the property after that.'

So what's going to make you decide, or help you decide, between selling it or renting it out?

It'll be the market.

If it's going well, we'll sell it, if the houses in this area are going

for a good price...or rental, we'll stick it on then.

And is this something you're going to carry on and do again?

If it all goes well, then I think my husband's definitely going to, yeah.

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

-Thank you.

-Thank you very much.

Well, there are some properties that you just know are going to

be a success for whoever buys them, and this is certainly one.

Tarsum and Indie got it at a good price and they've got the experience to turn this place around.

What will it look like when they've done the refurbishment? You can find out later in the show.

So, months have passed.

Have our purchasers' plans hatched?

Have they built up a nice little nest egg, or had rotten luck?

Let's find out.

'Back to London now, and the highly desirable Regent's Park area where this flat was sold for 290,000.

'It was bought by a property developer, whose wife Alicia is an interior designer.

'She was to project-manage the renovation.

'But with an original budget of only 15,000,

'would Alicia rise to the challenge

'and elevate this seventh-storey property to a higher value?

'It's been two months now, and we've returned to see

'if Alicia's given this flat the high-life makeover it deserves.

'Well, that tired run-down living room has given way to a sleek

'contemporary lounge, with wooden flooring and tasteful lighting.

'While the bathroom is now ultra-modern, with stylish fittings.

'Down the corridor, a new kitchen has been installed.

'And that just leaves the bedroom, which was renovated in the same style as the lounge.'

Well, in here first of all we fitted bespoke wardrobes,

that were spray-painted in the colour of the walls.

In between I created the space which would serve as a bedside table -

well, you can't fit bedside tables on either side of the bed.

And this is finished in polished plaster,

in a nice contrasting but still harmonious colour to the walls.

And we've got this nice light feature,

and lovely reading lights, LED high-quality reading lights.

And erm...yeah, the bed will go nicely in the middle

once, you know, once everything is done and I can dress it.

And I think this is a really good use of the space.

'The flat wasn't small, but its options were limited.

'However, Alicia found ways of making the best of what she had to work with.'

Well, here we opened up the doorway, which made it look more spacious,

and we added feature walls in the lounge and in the hallway

which adds to the flow of the whole flat.

Created a nice lighting scheme -

LED lighting around the ceiling and alcoves with some spotlights.

'By using soft tones and lighting,

'Alicia has managed to create a sense of space throughout.

'Has the final product turned out as she planned?'

It was very enjoyable to see my vision that was always from the beginning in my head...

to see it coming to what it is now.

'Getting there didn't pose Alicia too many problems.

'With the flat totally replastered, rewired and new walnut flooring laid

'the conversion now offers quality high living.

'But that was also one of its few drawbacks.'

The only challenge was really a logistic one.

It's the seventh floor in the block.

There's a tiny little lift that fits two people, so that was really the biggest challenge.

And to keep everybody happy -

you know, there's a lot of people live here, so with dust and noise this was really the challenge.

'On a budget of just £15,000, it must have been a bigger challenge

'to try and create a flat to this standard of finish.'

Well, the 15,000 was...

was a realistic budget,

but the budget was then increased

to 25 to make more out of it and then get more back, so I spent all of it.

There is maybe another £1,000 to spend here and there, and then obviously my fee on top of that.

'Seeing the final product I reckon Alicia's earned it,

'but on top of that 290,000 purchase price

'the total so far will be £316,000, plus her fee.

'3,000 was spent on an ultra-modern stylish bathroom, and a further

'£7,000 on that sleek and functional kitchen

'with composite worktops and integrated units.

'Overall, she's created a modern, contemporary flat to be proud of.

Did her clients feel the same way?

He wants to move in!

I think yeah, he's very, very pleased.

You know. All of them are very, very pleased with it, with the look.

And very surprised as well, because when you walk in it's...

You don't really expect the sort of look and finish, so they're very, very happy.

'But with plans to sell, they'll be happier if they can make a good profit on it.

'Bearing in mind that total spend of 316,000,

'we asked two local estate agents along

'to see what they thought Alicia's renovation.'

I think the changes made have been absolutely brilliant,

and the quality of decor and fittings

is above, far above, the average standard in the block.

My first impressions of the apartment are that it's very light,

and has been refurbished to a very high standard.

'But what would THEY pay for this flat? Remember, the total outlay so far is £316,000.

'What could the resale value be?'

I would put this property on the market at £365,000.

I would place this property on the market at £425,000.

'Now, that's a £60,000 difference in valuations.'

It doesn't really surprise me. I think it is quite a difficult flat

to value because it is a very high standard,

so we're hoping for the four in front. Time will tell.

'Whatever the flat sells for, Alicia's done an impressive job

'of refurbishing and bringing it back to life.

'It's something she's currently doing on several other properties.'

I love my work as an interior designer, and I would...

wouldn't want to do anything else, really.

'The chances are Alicia will be busy for a long time ahead.'

'We're back at this three-bedroomed semidetached house in Mickleover in Derby.

'It sold at auction for £127,000 to Tarsum, on behalf of his daughter and son-in-law.

'But they wanted it as their first property investment,

'and entrusted him with the bidding.'

It wasn't my money,

it was their money I was spending, and I've not been to auction before.

'Unfortunately his daughter Indie couldn't make it from

'her family home in London, so we asked Tarsum to show us what's been done here.

'Well, since the last time not only has there been a changing climate,

'but the inside's gone through some alterations as well!

'Tarsum's completely replastered throughout.

'He's recarpeted and repainted too, making everything fresh and bright.

'All the old fireplaces have been ripped out

'and replaced with modern new ones.

'He's rejigged the bathroom layout,

'putting the bath on one side to make it less cluttered.

'In fact, they've now even got a second toilet downstairs.

'Whilst Tarsum was replacing the old electrics,

'he decided to put in a loo in the cupboard.

'But the biggest change to the house has been in the kitchen.'

The kitchen was very unpracticable,

and there was a door here to the garden and there was also a door here on the left into the house,

which made the kitchen not very usable. We couldn't put any appliances here.

So we closed that door, so we could use the full width of that wall,

closed this door, we could use the full width of that,

opened this area into the dining area, so we could get a full...

a reasonable-sized kitchen now.

'And he's not just been busy on the inside.

'Tarsum employed some builders to create a new driveway at the front.

'Although you may not be able to see it for the snow, it is there,

'and will add huge appeal to any potential tenant or buyer.

'Some of the work isn't quite finished.

'There are doors to go on the kitchen units,

'and it's SNOW joke that the garden has huge potential,

'but they're going to deal with that in warmer weather.'

The garden we're going to divide into three areas.

The first lot is going to be slabbed, which will be like for a kids' play room or sitting out there.

Then it's going... A third of it's going to be lawned, and then the last bit's probably going to be left wild

for the insects to play and wildlife to grow.

'Tarsum has also added some fantastic patio doors,

'opening the living room out into the garden.

'But with all this work, how did they get on with their original budget of 20,000 to 30,000?'

The budget we thought...

We were thinking really into the clouds when we said 20 to 30.

We managed to get it done for less than 15,

so we're happy. My daughter and son-in-law are happy.

'So, with that revised £15,000 budget plus the £127,000 they paid at auction,

'that's a total spend of £142,000.

'How much value has Tarsum added?

'We asked along two local estate agents, to find out.'

I saw the property before, it was in a little bit of a mess, but it looks good now.

Nicely finished, nice new carpets, nice kitchen. Looking good.

The way the kitchen and dining room are laid out, I think it works well.

One area flows into the other, but you've still got the definition of rooms.

The garden's the big draw for the family. It's great for children to play in,

and with it being linked to the kitchen with the patio doors it makes it again a more usable space.

'So, the renovation is getting great reviews - but down to valuations.

'How much could it make on the resale market?'

I think if we were to market this property we would ask £165,000.

In terms of value this is likely to sell at the moment at £150,000, £155,000.

We were expecting something like 190, so that I think was low down.

Quite a low figure than what we expected.

'It may not be quite what Tarsum was expecting, but with the total spend at 142,000

'those estimates still mean between £8,000 and £23,000 pre-tax profit, minus the usual deductions.

'So, what about the rental valuation?'

Rental-wise this would go very well, at £600 per calendar month.

I think £575 per calendar month could be achieved.

I think we can achieve better.

We can achieve better than 575, or even 600.

We're looking for something like £800 or thereabout,

so that would make a good figure.

'So again, the price isn't exactly what Tarsum and his daughter were after.

'They're putting plans for a resale on hold until the property market gets stronger.

'Meanwhile, they're trying to rent it out at the higher price for a while.

'Despite the low estimates, Tarsum's really enjoyed the experience,

'especially knowing who it was all for.'

Well, I enjoy working, and especially when you're doing something for your family,

it's more enjoyment because you know the rewards are going to be there for the family. So, loved it.

We hope we've been of help today, guiding you through the property maze and perhaps inspiring you.

-So join us next time for more Homes Under The Hammer.

-See you then.

-Goodbye.

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