Episode 38 Homes Under the Hammer

Even in the volatile property market, many of us are still

-so interested in it.

-Lucy and I love the thrill of the auction room

as do thousands of people who every year buy their homes under the hammer.

We are constantly amazed by the stories from the auction room.

Some real life dramas, some real life successes sometimes.

Yes, and we've found three more stories for you today.

Let's find out what they are.

'I assess the damage to this two-bed end-of-terrace in Dawley near Telford.'

So how bad's it going to be?

Crikey.

'This Kent semi-detached house is clinging to its 70s roots.'

Look at this wallpaper! Fantastic!

I think this has come back into fashion.

'And in Nottinghamshire, this perfectly presentable property had a very low guide price.'

What could possibly be wrong? Wait and see.

'All these properties have been sold at auction and we'll find out who bought them and what they paid

'when they went under the hammer.'

'The new town of Telford in Shropshire was built in the 1960s and 1970s.

'Drive just ten minutes east of there and you'll find the quiet town of Dawley.

'Despite the fact that Telford is just a stone's throw away,

'Dawley has retained its own distinct character, making it a popular place to live.'

So this is Rhodes Avenue and from the outside at least,

the property I'm here to see looks like it's seen better days.

Lots and lots of evidence of smoke damage coming up from that lower window there.

The actual property itself is boarded up. That could explain the guide price, which was £30,000.

How bad is it inside? Better go and find out, I suppose.

'The previous owner escaped the fire but the damage was pretty serious.'

So how bad's it going to be? Oh. Crikey.

I don't have to go very far to see the state of the damage here.

That is the electricity consumer unit and it's just completely melted.

Wow. So into what was, I imagine, the living room.

And, as you can see, it is in a right old state.

The windows have gone. Could have been smashed out by the fire brigade to get in here.

At the moment, the ceiling's being supported by these acro props.

And it's just a classic case of extreme fire damage.

Not a bad size space, though. Let's try and get back to some basics.

We like the amount of room here. And then through into the kitchen.

'No surprises in here. The damage continues, but again, the room is a very good size.

'Obviously, an entire new kitchen is needed,

'but you would probably put one in anyway if you were renovating the place.'

Upstairs, it carries on looking absolutely horrendous.

What have we got underneath here, though? We've got two bedrooms and a bathroom.

Clearly, they are in a right old state,

but what kind of state? That is what we've got to decide,

because that will make a massive difference to how much it's going to cost to get this sorted.

Downstairs, definite serious fire damage. Up here, my thoughts are that this is largely smoke damage.

Although it looks horrendous, structurally I don't think it's too much of a problem.

And it could work in your favour, because most people walking round here would be very put off by this.

'But if you can see past the smoke damage and make an informed assessment,

'you could be onto a real winner. However, I would definitely suggest getting a structural engineer in

'to examine the extent of the damage and how any potential repairs will affect the renovation costs.

'The electrics and plumbing also need to be safety-checked.

'Replacing these should be a consideration when calculating the budget.

'But this property has possibilities, and if you look beyond the results of the fire,

'that £30,000 guide price does start to look more attractive.

'What does a local estate agent think?'

This particular house needs quite significant work.

It's seen better years and it's completely burnt out.

It's nicely situated towards the end of the cul-de-sac,

so with young families, young children, you're not on a busy main road.

'But it needs a lot of work. Let's talk numbers.'

The cost of getting this into some sort of order and repairing the fire damage

could vary considerably depending on whether it needs any structural work.

Therefore, I estimate it's going to cost at least £15,000 to somewhere between £25,000.

'Once you've made your investment, would it be worth it?'

When the works have been fully completed and if a driveway is put in at the front,

I'd estimate a resale value of £85,000.

'Could be a tidy profit, depending on the purchase price.

'How about as an ongoing concern?'

I would estimate a rental value of £475 per calendar month.

-HE COUGHS

-It's nice to get a bit of fresh air after being in that house.

But benefiting here from a really nice sized garden

and the fact that it is an end terrace means that you've got this open aspect.

That said, you are taking on a bit of a project with this one

and not one for the first-timer, I would hazard a suggestion.

Let's find out who went for it when it went to the auction.

Lot number five is a two-bed end townhouse

and it has suffered substantial fire damage.

30,000 start me here.

30,000 I'm bid. Standing right at £30,000. 35, is it?

35 is it? 35,000.

40 is it? £40,000.

At £40,000. Standing right at £40,000.

I'll take one if it helps. 41 at the back.

42. 43.

44. 45.

46?

At 45,000. In the doorway at 45. New bidder, 46.

47. 48. 49.

50, sir? 50.

51. Shaking his head. In the doorway at £51,000.

52 anywhere else?

He's back in, 52.

In the doorway, 53? 53 in the door.

New bidder, 54, seated. 55?

Shaking his head. With you, sir, first bid, £54,000.

55 anywhere else? New bidder. 55.

56.

57. 58, sir?

58. Shaking his head.

Still with you, sir. £58,000.

Are we all done now?

58, then, for the first time. 58 for the second time.

Third and final time at £58,000.

-HAMMER BANGS

-It's your lot, sir. Well done.

'The successful bid came from Norman.

'He owns a roofing company but hopes to move into property development full-time.

'Norman paid £58,000 at auction. Does he know what's in store for him?'

Norman, congratulations. Lovely to meet you.

-It's a mess, isn't it?

-Just a bit! THEY LAUGH

-Tell me why you wanted to buy it.

-Erm, I particularly liked the position of it, really.

And the work on it, it looks a lot worse than it actually is.

-It's actually mostly smoke damage.

-Right.

-And very little structural damage, other than windows and doors.

-How do you know that?

-I had a good look round it twice before we went to auction,

worked out the budget then and figured we could make some money out of it.

-Have you done this kind of thing before?

-Yes. I do it quite regularly.

-I've been doing it for 30 years.

-What specifically?

Renovations, buy and sell property. I've always bought and sold my own houses.

Bought them with work on and made money that way.

So the fact that it does, at first glance, look to be in a right old state,

-do you think that worked in your favour?

-Yes, I think so.

I think it would put quite a few people off,

but most of the people that have a good knowledge of the building trade would see it's mostly cosmetic.

How can you tell the difference between something that's superficial, to a degree,

and something which is seriously nasty and has affected the structure of the building?

The first thing to look at is where the fire was. This was in the lounge.

It was either a sofa or a sofa bed. So you look at the immediate vicinity

and the floor joists weren't particularly charred.

There's a little bit of damage running up the staircase and upstairs it's smoke damage.

The lounge window has been smashed out, probably by the fire service, just to get access in.

But other than that, it is just purely cosmetic.

-Have you taken on a project like this before?

-Not this badly damaged.

But buildings that require a lot of attention I've done. But not specifically fire damage, no.

'Thankfully, Norman isn't put off by the effects of the fire and blackened walls,

'though I would still advise getting experts in to assess the true extent of the damage.

'Meanwhile, what will it take to transform this place into a fully-functioning family home?'

We'll replace all the plaster to the walls, all the ground floor doors and door frames want replacing,

the kitchen would've needed updating anyway, but that's quite badly smoke and fire damaged.

First floor is a new bathroom suite and new plastering

and then it's just decoration, carpet, finishes.

And then externally, we'll put a new driveway in

and just make a nice garden.

-Couple of weeks work, then.

-Well, about ten weeks, I think.

-Ten weeks to get it sorted.

-And what kind of cost to do that?

-The budget's between £16,000 and £20,000.

And that gives us about a £2,500 to £3,000 contingency.

-And have to incorporated in redoing all the electrics?

-Yes. I've allowed for a rewire

because, if you look as you go through the front door,

the consumer unit's disappeared. I thought it was an electrical fire at first, but it's just melted away.

And the heating is quite old, so we've allowed for new plumbing and heating throughout.

'Norman's under no illusion, it seems, as he's really done his homework for the job in hand.

'But does he have a solution for the external appearance?'

What about the smoke damage on the front of the property?

I think we'd probably just power-wash it, or if it still won't come off,

we'll acid clean it or maybe a light sandblast.

-So it's not too much of an issue?

-I don't think so. It's cosmetic.

It does look bad, but it's just the way the smoke's billowed out from the window

when they've smashed the glass, I think. So, yeah, shouldn't be a problem.

'Norman plans to do all the work himself with the help of his son, who's a construction worker.

'He'll get specialists in for the electrics and plumbing

'and to maximise his profit margin, given the current climate.

'He'll rent the house out once the work is complete.'

-Congratulations.

-Thanks.

-Good luck with it all.

-Thank you.

-Look forward to seeing how you get on.

-Yes.

-I'm sure we'll notice a big difference!

-It should be.

Well, Norman not too daunted by the project ahead.

And it's lovely to think that this house will be turned back into a liveable home.

However, I am a bit concerned. You really don't know what kind of damage has been done

until you get into the fabric of the house, so I hope he doesn't unearth too many nasties when he starts.

You can find out how he gets on later in the show.

'This is Hythe in Kent,

'four miles west of Folkestone, overlooking the English Channel.

'Over the years, Hythe has grown from a fishing village into a popular seaside town,

'but that popularity has meant the demand for properties often outstrips the supply.'

Well, this is Hillside Street. It's just a few roads back from Hythe High Street.

Now, I'm here to see this 70s semi,

which is tucked right down here behind this wall.

Now, one issue I can see straight away

is that it's going to be a bit of a nightmare trying to park around here.

So getting materials and workmen to this site could be pretty tricky.

'Fortunately, the house does have a garage at the bottom of the garden at the back.

'But if anything, access is more restricted there, and you'd have to lug everything through the garden.

'Still, the guide price was £115,000 to £120,000,

'low for a three-bed detached house in this area.

'But judging by the state of the outside, I'm beginning to understand why.'

Once you've actually managed to get down those stairs...

It's quite an uninviting space to walk into, I have to say.

And look at this wallpaper! Fantastic!

I think this has come back into fashion!

I don't think this one has just yet.

But it's quite open, this property.

And you can see, it just needs everything doing to it.

You've got a hot-air heating system, so there's obviously no radiators.

Do you think this is the kitchen? Yes. Quite interesting.

All you've got in here is a sink. I doubt this house is even mortgageable.

But look. It is in a right old state. It's filthy.

This is the first room I've seen, and if this is anything to go by,

I'm not looking forward to the rest of the house.

# I'm falling to pieces

# I'm falling to pieces

'Oh, dear. This place hasn't been occupied for a number of years

'and it not only looks it, but you can smell it, too.

'It really is starting to fall to pieces.

'The reception room stretches across the entire width of the property,

'divided by the chimney breast, but at least this side's lighter and brighter than the dingy hallway.'

This house is in a bit of a dark dip

so if you wanted to open this space up to let some light in, well, you can't,

because this here is an old rag-stone medieval wall and it's listed.

So that wall is here to stay.

# You've got me up against the wall

'Yes, you can't go knocking down medieval walls. You're just going to have to live with it.

'It's nice to have a little history in the garden,

'but there is one piece of history in the master bedroom that's not worth preserving.'

This is the master bedroom and it's brilliant, because on a clear day,

you can almost see across the Channel and beyond.

But before you get carried away with those sea views,

I want to show you something. Look up there.

That is a pretty deep crack and warrants further investigation.

# I'm falling to pieces

'There are not only cracks in the bedroom, there's an ominous one in the bathroom.

'And it's in a dreadful state. As is the area outside.'

When you come out into this very overgrown garden,

you can see this wall here is just collapsing.

And this garden and the steps, they're just all over the place,

obviously caused by some ground movement.

Now, that in itself may not be a cause for concern.

This damage may be historical. It may have even happened ages ago

and the property itself may not be affected.

But after seeing that crack upstairs in the back bedroom,

I would be a little bit worried.

I've done a bit of asking around and I've discovered that there is a geological fault line

which runs across Hillside Street.

So a proper structural survey needs to be done here

to make sure this house itself isn't suffering from subsidence.

Because if it is, then getting a mortgage may be next to impossible.

'To find out more and hear a valuation for the property,

'I spoke to a local estate agent.'

Hythe in particular does suffer in certain parts

from geological fault lines

and Hillside Street is one of those locations and we would obviously, therefore, recommend

that a possible buyer investigates fully before committing themselves.

'Guided at £115,000 to £125,000,

'if this house's shortcomings were sorted, could it work as an investment?'

A typical rental price for this property would be in the region of about £750 per calendar month.

Once the work on the property is completed,

you'd put a value on this property of around £235,000, £240,000.

'So correcting the faults here could pay dividends.'

There's no escaping the fact that that nearby geological fault line is a cause for concern.

And this house does need everything doing to it.

But it's in a great location with those sea views.

So let's see who bid for this one as we head for auction.

Semi-detached house for total refurbishment.

Start me at £115,000, lower end of the guide.

115 I've got. 120 now do I see? 120.

120. And 5. 125.

130. 130 anywhere? 130. And 5.

135. And 140. 140 do I see? And 5.

145. 150.

155 can I say? 55.

Fill it up to 60. 160 I'm bid. 160.

At 160,000 then for the first time.

£160,000 for the second time.

If we're all done. All had your chance. It's with you at 160,000.

Can I have your number, make sure you're not bidding against yourself. What is the number?

Yep. So I've got £160,000 for the first time.

£160,000 bid for the second time.

Third and final time at £160,000.

Are we all done? It's yours at 160. The number again, please.

8843. No, it's the number in front that I've taken cos you didn't hold your number up.

8843 is the one I'm taking. And that's £160,000.

That's the number I asked to be held up. You didn't hold your number up. That's the one I'm taking.

'Oh, dear. There was some confusion there.

'The auctioneer took the final bid from the chap in front.

'It's a very rare occurrence, but as with a sports referee,

'the auctioneer's word is final.

'So for £160,000, the new owners of the house

'are Ashford-based joiner David and his wife Carol.

'They bought this as their first investment property after David was made redundant.'

-So why have you bought this property?

-Hopefully to make some money.

-So is this an investment opportunity?

-Investment. Most definitely, yes,

'David worked for 45 years in the construction industry as a carpenter-joiner.

'He's owned and worked for various different businesses over the years

'so he's no rookie at the building game.'

David, why have you chosen to take on such a project?

Because this is a big job.

Is it a big job? I've done it all my life.

-You have got that rather large crack up in the bedroom.

-Yes.

-Do you think that is subsidence?

-What I can see upstairs, I don't think it's subsidence.

There's some movement there, certainly, but looking around the house,

on the exterior I can see no signs of any movement at all.

What did you think when you went outside and you saw all the uneven terrain,

you've got lots of steps, walls crumbling, the walls are bowed,

what did you think when you saw that?

-We didn't know about the walls, did we?

-We didn't know about the walls.

When we viewed the property, the grass was quite a lot higher.

There was pampas grass covering 90 percent of the path.

-Yeah.

-We didn't see it. I didn't see it.

'So David did miss a few things, but with those 45 years' experience in construction,

'he does know how to sort them out and doesn't seem too worried by them.'

And how much do you intend spending on this, David?

I budgeted around about 27, 28, so let's say a budget of £30,000.

If we got to £30,000, alarm bells would ring.

Hopefully, we should stick to budget.

-What is it you do?

-I'm an accountant.

-So you're the lady that does the money!

-Yes. And the buying, probably.

-And what I tell her to do.

-Yes.

-Is that right?

-I'm the labourer.

-On this project, I'm the labourer.

-As a team, do you think you'll work well together?

We've worked probably for... We've been married 39 years

-so we've probably worked together for two thirds of that.

-At least, yeah.

Are you really excited to get started? Is this something you really want to do?

Oh, yes! We've wanted to do this as a business for a number of years.

-But other well-paid jobs have come in the way.

-Yeah.

'So after years of patiently waiting,

'they've now got a chance to take on their own project.'

-# Take me on

-# Take on me

At a time when most people are looking forward to taking it easy,

David is hoping to start new career as a property developer.

There's no doubt they both have the skills and the knowledge to do this work that's needed,

but property developing is never straightforward,

especially with possible subsidence issues.

So will they get the work done in time and on budget?

Keep watching and you can find out later on in the programme.

'Coming up, on closer inspection, I'm baffled by the low guide price for this house in Shirebrook.'

Still nothing untoward to report.

'In Kent, it seems the earth did move at this 1970s throwback.'

Folkestone had an earth tremor or quake and it probably stems from that.

'But first, in Shropshire, the fire damaged property turned out to be heavy work.'

They took 80 tonnes of rubbish off here.

'I'm back in Telford, Shropshire, where this two-bed end-terrace

'had suffered some bad fire and smoke damage.

'Norman bought it at auction for £58,000. He owns his own roofing business

'but is looking to move into his other career, property development, full-time.

'Luckily, he knew what he was getting into.'

It does, at first glance, look to be in a right old state.

Do you think that works in your favour?

Yes, I think so. I think it would probably put quite a few people off.

But most of the people that have a good knowledge of the building trade would see it's mostly cosmetic.

'Cosmetic does seem a bit of an understatement for what this house has suffered.'

# In the big, black smoke

# In the big, black smoke

'So, it's just ten weeks later, and judging by the outside,

'I'm guessing there's quite a transformation inside.'

# Wow, wow, wow, wow

# Wow, wow

# Unbelievable

'The sitting room was the source of the fire, but is now unrecognisable

'with freshly plastered walls and a lighter colour scheme.

'UPVC double-glazed windows have been installed here

'and throughout the property.

'Due to the level of damage inflicted by the fire,

'all the electrics in the house were replaced.

'Through to the back is the kitchen, which is now unrecognisable from before.'

In here was very badly smoke damaged.

All the units were quite old, so we decided to replace the whole kitchen.

New radiators, new central heating boiler, which originally was upstairs.

And we're very pleased with the way it's turned out. It's brightened it up and made a nice job of it.

'A nice job indeed. The transformation continues upstairs,

'starting with the staircase itself.

'Both bedrooms have been brought back to life, replastered and painted.

'There are new windows, radiators and doors.

'The nightmare that had been the bathroom is now clean and contemporary

'with brand new fixtures and fittings.

'So that's the interior renovations. How about the exterior?'

OK, outside was very badly smoke damaged.

The windows had melted and the brickwork was badly marked.

So we steam-cleaned the brickwork and generally cleaned all the front up,

added new porches to the front and the side, just to brighten the property up,

with turf and the stone paths, as you can see.

'Norman really has achieved so much with this development in difficult circumstances.

'And those are reflected in the name he's given it.'

We're going to call it Molly's Cottage, cos unfortunately, my mum passed away

a couple of days after we filmed the first part unexpectedly,

so just in her memory, really. She was a big influence on all her children

and I just wanted to do that in her memory more than anything.

'Molly's Cottage also had a garden that needed attention.

'Originally piled high with rubbish, this has now been cleared

'to reveal perhaps more than just a garden.'

We took an awful lot of rubbish off here. There was sheds and all sorts.

We took 80 tonnes of rubbish off here.

When we cleared it, we thought we've probably got a plot big enough to have a small detached house,

a similar size to the one we've just renovated.

So that's what we've done. We've got an unofficial opinion from Telford and Wrekin, it was quite positive,

and over the next fortnight, we're going to apply for full planning consent

for a detached dwelling with off-road parking for this new house and the property next door.

'Well, grand plans that could certainly make quite a few grand.

'Norman's confident that the proposed tightening of regulations

'on building on garden plots won't affect this project.

'But did all this impact on his costs?'

The original budget was £16,000, 16 to 20,

and it came in just under the top end of the budget at about £19,500.

'So just within budget. It seems as though Norman has realised

'the full potential of this property and there could be healthy profits.

'We asked a couple of local estate agents for their thoughts.'

It's a lovely property. I think the guy's done a fantastic job considering the state it was in.

Throughout he's used contemporary fittings, it's very modern,

nice and light, so it should be pretty popular.

First impressions, nice quality finish, there are nice touches with door furniture,

stainless steel handles, good quality sanitary fittings.

Overall, a nice job.

'Norman bought the place for £58,000

'and has spent just under £20,000 renovating it.

'So with a total spend of almost £78,000,

'what kind of profit could he be looking at?'

In the current market, I think you'd probably be looking in the region of £80,000 to £85,000.

I would go to the market today, in its current state, at £95,000.

95 is more like it, I think. The 80 to 85 sounds far too cheap.

'Let's hope so, otherwise the profit Norman could make is only a little over £2,000.

'What would it be worth as a rental?'

I'd expect roughly around £475 per calendar month.

I would suggest in the region of £500 to £525 per calendar month.

That's exactly what we were thinking.

'Good. But how about the ace up Norman's sleeve, the garden plot?

'On its own and with planning permission, it will be worth around £40,000.

'He reckons his build costs for a two-bedroom house would be around 50 grand.

'How much could he sell it for?'

A two-bedroom detached dwelling on that size of plot

I think will achieve in the region of £100,000 to £105,000.

Depending on finish, I think you could be looking anywhere in the region of £120,000.

I was thinking around 105, something like that,

but 120 sounds on the good side, so that would be good.

'In this scenario, Norman's total spend would be around £128,000

'and based on these valuations,

'he could be in for a tidy pre-tax profit of £50,000 to £90,000.

'He's certainly spotted a perfect opportunity here.'

# Oh, there's a lot of opportunities

# If you know when to take them

'Fantastic news for Norman.

'If planning permission comes through, he stands to clean up very satisfactorily here.

'And he's not finished yet.'

# You've got the brawn, I've got the brains

# Let's make lots of

We've bought another property in Wellington, about fives miles from here.

It's very badly smoke damaged but no real fire damage,

so it's just back to decoration as the plaster, hopefully, won't have to come off.

'Norman expects to get informed approval from the local planners very soon,

'then he can apply for full planning permission. He's confident it'll all go ahead. And we wish him luck.'

'Today I've come to Shirebrook in Nottinghamshire.

'It's a former pit town located in the Leen Valley.'

This is Leen Valley Drive, a residential part of Shirebrook. Looks fairly pleasant.

I'm here to see a house which on the face of it looks absolutely marvellous.

Three-bedroom, modern-built semi-detached.

Had a guide price of £68,000. What could possibly be wrong?

Wait and see.

# Suspicion torments my heart

# Suspicion keeps us apart

'From the outside, first impressions are good.

'The windows are all double-glazed, there's a drive and a modest front garden.

'All very pleasant.

'But with the average house on the street selling for around £105,000,

'there must be a reason for that £68,000 guide price. Let's investigate.'

What have we got? On the face of it, looks pretty good. Living room. Laminate flooring.

Bay window, nice to have. Not sure about the fireplace.

Possibly a little bit too grand for the style of house.

But that's not a big problem.

Through to the kitchen and, again, I actually quite like this little area.

Lots of light from the windows, views out onto the garden and onwards.

A useful dining area there.

The kitchen itself, the units aren't brilliant

but if you're renting the place out, you could get away with those.

So all in all, downstairs,

very practical, not too bad. So far.

# Suspicion, why torture me?

'Admittedly, that view from the kitchen is of an untidy stretch of ground

'disguised as a garden. The shed has certainly seen better days.

'However, it's all a reasonable size.'

So, upstairs how does it fare? Well, not too bad.

We've got a bathroom and loo, two double bedrooms and a box room.

The carpet could do with replacing, but that's trivial. Needs a bit of paint.

Again, fairly inexpensive and trivial.

So, nope.

Still nothing untoward to report.

'The bathroom is pretty cramped, but the essentials are all there.

'The two main bedrooms are spacious, although in need of redecoration.

'As is the box room. There are radiators already fitted throughout.

'So, all in all, this semi-detached built in 1981 has much to recommend it.'

So what could possibly be wrong with this house? Well, it's the dreaded S word.

Subsidence. I've been doing my research, talking to local estate agents,

and I've discovered that this area, in particular this street,

has got a history of subsidence due to the mining that went on in this area.

And I've found out something really interesting.

That is number 46.

That is number 42.

And the subsidence was so bad in number 44...

..they had to knock it down.

This house itself has had subsidence in the past

but it's had remedial work to sort it out.

But in today's market conditions, with mortgage lenders being so precise about what they'll lend on,

it could give you a problem. If you're not prepared for it, you could find yourself in big trouble.

'This house is now in good condition

'but the history of the area will always impact on its value.

'So to find out if this is a gold mine or just a hole in the ground,

'I asked a local estate agent to shed some light.'

With Shirebrook being a former colliery community,

yes, there were some mining subsidence issues,

in particular with this property. Directly to the side of it

there is a geological fissure which activated round about 1991.

There was quite a lot of money spent on this property with underpinning

and then subsequent repairs by the Coal Board, who bought the property

and undertook the repairs themselves.

The knock-on effect is, because of the amount of works that would have been done,

there is a possibility that this property is no longer mortgageable.

'So whoever buys this probably needs to pay cash.

'Does that make it a good buy-to-let proposition? If so, what kind of rental might it earn?'

The property would be well-received to the rental market

and I would be looking for £495 to £525 per calendar month.

'If at some point the new owners decided to sell on,

'what kind of price could they hope to achieve?'

This particular property I would be looking to value in the region of £85,000.

Because of its history, there may be problems with resale

with the mortgage eligibility,

and so I would suggest rental rather than resale.

So, a nice enough house, for sure, but one that has a chequered history

that could affect getting a mortgage and its resale value.

So buyer beware, check out the area, read the legal pack

and then let's see who bought it at the auction.

Where do you want to be? Start me where you will. 74, may I suggest?

Start me at 65, then.

Make progress. 65,000.

65 is bid. Thank you. At £65,000.

66 to move it on. 66 is bid on the left.

At £66,000. 67.

67 is bid.

68 is bid. At 68,000.

At £68,000. I'll take the half if it'll help you.

68 and a half. At 68 and a half. £69,000?

£68,500 is the bid. 69 somewhere else?

I've got you. Thank you. 69.

At 69,000. 500. 69,500. 70 for you, sir?

70,000.

500?

£70,000 is bid against you. 70 and a half?

At £70,000, then. We're going to sell. 70 and a half.

71. 71,500.

72,000.

72,500. 73,000.

73,500?

£73,000. 500.

74 is bid.

At 74. The bids are all yours. 74,500?

At £74,000, we'll sell. Once, twice, third time.

Second thoughts? Sold to you, sir, 74,000.

'With that final bid of £74,000, the new owner is Lee.

'He was born in Shirebrook and worked in the pits for 13 years until they closed.

'He then moved away, but now he's returned and wants to embark on a career as a property developer.'

-Lee, congratulations.

-THEY LAUGH

-Why do you want to buy the house?

Well, I like the position it's in. I've lived in Shirebrook for a long time

and I've always wanted a place up here.

-What is it about Shirebrook that you like so much?

-Well, it's where I was born and bred.

Erm, I know more or less everyone that lives around this area.

So why did you buy it? Is it for you to live in or an investment?

Well, both. Investment, I'm going to live in it,

but it was up at the auction and the price it was going for,

-I thought it was time to buy, and this was the perfect property to get.

-Right.

So you know about the area, then?

-You know about the history of subsidence in properties in this area, then?

-Yeah.

It doesn't worry me. Cos I think anything can be sorted. The pit's been shut over ten years now.

I think the ground has probably settled.

If there was subsidence in this property, we'd have seen it by now.

'When the Shirebrook pit closed, Lee moved to Whitby and retrained as a bus driver.

'He spent seven years living and working in York,

'but then suffered some ill health that meant a change of direction.'

About a year ago, I discovered I'd got a bit of a brain tumour.

-A bit of a brain tumour?

-A brain tumour, which stopped me from driving.

So now, I've thought, well, sell my house in York, which has gone up quite a lot,

and buy a property hopefully to renovate, sell on, and try and make a living.

So what happened on the whole health front?

Well, it's been took out now and I've been given the all-clear.

I'm generally on the mend again. Got to wait a couple of years to get my licence back.

And, er, take it from there, decide what to do then.

-I don't suppose any problems you'd encounter here could be anything in comparison, really.

-Nothing can. No.

-Did you buy this with cash, then?

-I did, yeah.

-So you didn't have to get a mortgage?

-No.

-No. That's great. What are you going to do with it, then?

Generally, erm, everything what you can see in it, at the moment, is going.

New floorings everywhere, new kitchen, take the bathroom out,

retile the bathroom and put the bathroom back in cos it's a new bathroom.

And, erm, the garden, probably turf it all, pebble it. I'm not sure yet.

-Fantastic! So, what kind of budget have you got?

-Roughly between £8,000 and £10,000 should do it.

-Will you do a lot of the work yourself?

-Yeah. I'd say, probably 70 percent of it.

-Right.

-Yeah.

So in terms of timescales?

-Probably about eight weeks. Something like that.

-To get it all sorted.

-And then the idea is that you move into it?

-Yeah. Yeah.

-Well, we wish you the best,

and delighted that you're fully recovered health-wise. Good luck with this.

Well, there you go. Lee giving a poignant reminder that, compared to your health,

any problems that you may encounter when it comes to a property are trifling in comparison.

We wish him all the best with the renovation and you can find out how he gets on later in the show.

Well, time and tide wait for no man. And in the property world, time usually means money.

So let's go back and see how that time, and cash, has been spent.

'We've returned to Hythe in Kent, where this three-bed semi-detached

'sold at auction for £160,000, to David and his wife Carol.

'David's a professional joiner and carpenter

'with 45 years experience in the building trade under his belt and Carol's an accountant.

'Together they plan to develop properties, David doing the heavy work, Carol in charge of the books.

'However, his experience was put to the test as soon as he saw this place.'

What did you think when you went outside and you saw all the uneven terrain,

you've got lots of steps, walls crumbling, the walls are bowed down there.

What did you think when you saw all that?

-We didn't know about the walls, did we?

-We didn't know about the walls.

When we viewed the property the grass was quite a lot higher,

and to be perfectly honest, we didn't see it. I didn't see it.

'The garden was hiding evidence of movement, as were the lintels in the upstairs bedroom.

'That could have been because this street is built over a fault line.

# These little earthquakes

'All in all, the property was in quite a state.'

# Then you came

# To save the day

'We've come back four months later to see how David got on.'

# Now I'm not alone

# It's like I'm born again

# It's like I can breathe again

# And the sun is coming up

# For the very first time

'The main hallway used to be a vivid throwback to the 1970s.

'But now, on entering, I'm just amazed by how much light he's poured into the former dingy den.

'Upstairs, the old bathroom had definitely seen better days,

'but now it's been brought bang up-to-date

'with a cool, contemporary look, featuring modern fixtures and fittings.

'All three bedrooms, which had been in dire need of redecoration, have had a total makeover,

'with new plaster, paint, carpets, and UPVC windows throughout.

'Signs of movement have been eradicated as David got to the bottom of the problem.'

Folkestone had an earth tremor or a quake, whatever you want to call it,

two or three years ago. And it probably stems from that.

At the end of each lintel, and I had this all the way through the house,

there was something like a 40 mil gap

that had been filled with some plaster substance,

that was very soft and you could just rake out,

which I did, cleaned it out, made good block work where it needed.

It's all OK.

'The house now has a solid structure and David has seen no further evidence of movement anywhere else.

'Downstairs, the original kitchen was completely dilapidated.

'It even had holes in the floor where rats were coming and going.

'Now the kitchen has been completely transformed,

'with new units...

'..worktops...

'..and appliances, complemented by bold tiling,

'and new oak laminate flooring.

'Thankfully, this is now no place for a rat.

'The sitting room has also been brought back to life.

'And the 70s fireplace removed.

'And where once the garden had been trying to get in through the door,

'now there are patio doors that lead out into the garden.

# I built this garden for us

'And that derelict garden has been cleared and re-turfed.'

# I built this garden for us

'Al fresco dining is now an option on the new decking...'

# I built this garden for us

'..with lovely views over the Hythe rooftops towards the sea.'

# I built this garden for us

'At the bottom of the garden, the steps and walls

'that used to show worrying indications of movement have been rebuilt and restored.'

When we first took it over, where I'm walking now, you couldn't see.

We've discovered that there was a path here, which extended down to the steps here,

which were all higgledy-piggledy, out of level, all been taken out and renewed.

The garden itself was a total mess,

brambles, small ash trees growing here, there and everywhere.

Just running wild, really.

So we've levelled it, turfed it,

put the laurels in,

just really made it look as nice as we can.

# In this garden

# This lovely garden

'An incredible transformation and a real labour of love.

'But has the high quality of finish taken its toll on the outlay?'

First off, we had a budget of £30,000.

On the house, no problems at all.

I've overspent on the garden.

But, again, I'm using that as a marketing tool.

Because if you don't, it's going to be off-putting.

You want something to entice people into the inside of the house, get them over the threshold.

'Good thinking, David.

'He bought the place for £160,000. He spent 30 grand on the house.

'And a further £1,500 on the garden, making a total of just over £190,000.

'So, how much value could he have added?'

It's a very saleable property because of the fact that

it's near the sea, and views, and near the town centre.

The garden is really super. I saw it before they did the work.

It's been a total transformation.

You've got the decking right the way across the back,

fabulous south-facing garden, take full advantage of that sun in the summer.

The property has changed beyond belief. It's quite incredible to see the changes that can be made.

Last time we were here, when you came inside the property there was evidence of rats,

it had been damp, everything needed doing.

Of course, now we come back to what is almost a brand new home.

It's quite astounding.

'Very positive comments on the development.

'How much do they think it could be worth if sold?'

I would recommend marketing the property

in the region of £235,000 to £240,000.

I think we'd be recommending it came to the market at £250,000.

Oh! The 250 surprises me, to be honest.

It's a nice surprise though, isn't it? HE LAUGHS

'It certainly is!

'Taking the more optimistic valuation, that's a pre-tax profit of just short of £60,000,

'minus the usual selling fees. What about rental?'

We'd be looking at a rental value of

between about £800 to £825 per calendar month.

The property would easily rent out for a price in the region of

around about £750 per month.

More or less exactly what we thought.

So we must have done our sums right. HE LAUGHS

'Since filming, David has accepted an offer of £234,000,

'a profit of over 40 grand,

'and is looking for his next investment property.

'I've got to hand it to you, David, you've done an amazing job.

'Congratulations!'

'We're back in Shirebrook, where this three-bed end-of-terrace

'was sold at auction for £74,000 to Lee.

'He used to be a bus driver, but decided to go into property developing

'after recovering from a brain tumour.

'As a former resident of Shirebrook, he knows the area's mining history,

'its associated issues with subsidence, and the impact on property values.'

So, you know about the area, then?

-Oh, yeah.

-You know about the history of subsidence of properties in this area?

It doesn't worry me because I think anything can be sorted.

The pit's been shut over ten years now. And I think the ground has probably settled.

'Let's hope Lee is correct on that.

'His plan was to upgrade the property by redecorating,

'installing a new kitchen and clearing the garden.

'We've come back six months later to see how he's got on.

'The living room was in fairly good condition, but needed updating.

'Lee has achieved this by decorating the place,

'laying a neutral carpet, and installing a modern gas fire.

'Through in the kitchen is where Lee has done most work, completely changing the layout.'

The main door as you walked in was there. And it had a breakfast bar going along here

which meant there were no units there.

So what I decided to do, so we could have a square kitchen, was to brick the main door up,

brick the pantry up, and put the main doors over that way.

So I could have the kitchen fitted like a square.

'Outside the kitchen, through the new patio doors, Lee has totally cleared the garden.

'So he can really enjoy those fantastic views.'

# I can see for miles and miles

# And miles and miles

# And miles

'Upstairs, Lee has completely redecorated the three bedrooms in neutral colours.

'In the bathroom, the suite has stayed the same, but it's all been retiled and a new floor laid.

'Now that most of the work has been completed after many gruelling six and seven day weeks,

'has Lee decided whether he's going to live here, rent it out or sell the property?'

I'm going to stay in it for a while.

It's been six months, but it's been six months hard work,

so it's time to sit back and relax for a while.

And then look at it in probably three months' time.

'So now the job's almost over, how did he get on with his budget of £8,000 to £10,000?'

The budget is, it's gone round about 10,000 or 11,000,

but that's because we've had to buy all the tools to do the work with.

Skill saw and things like that, they don't come cheap.

'They certainly don't, but they are an investment

'if Lee goes on to develop more properties in the future.

'Lee bought the house for £74,000 and has spent £11,000 on the renovation,

'making a total outlay of around £85,000.

'How have his efforts affected the value?

'We asked a couple of local estate agents for their opinions.'

The layout, with removing the breakfast bar, has been good.

Whether the removal of the door will work in future, we'll wait and see.

The property has undergone a recent course of improvements in terms of redecoration.

It offers light and spacious accommodation.

I like the view from the upstairs bedroom window.

'So in the current market, how much could Lee rent it out for?'

Similar properties in this area we are currently renting out for £450 to £475 per calendar month.

For this type of property, I would be looking between £475 and £495 per calendar month,

and yes, there is a good demand at this moment in time.

'That's a potential yield of between six and seven percent.

'It would make the house a nice little earner. Is Lee tempted?'

No, I would not rent it out, erm,

and if I did, it would be for about £550. I know I could get that for it.

'If Lee doesn't want to rent the house out, he either needs to live here or sell it on.

'And that could be the problem. This area has suffered from subsidence in the past.

'But he's confident he's done his research.'

I've looked into the history of this property and it's been underpinned,

it's had all the work done. So there's no problem with it.

The property does have subsidence history, and I would need to know fully the facts concerning that

before I could commit to the mortgageability of the property.

I honestly believe that this property would not sell easily

on the open market, if at all, because of its history.

'That subsidence problem doesn't want to go away. And even if Lee is right,

'these previous issues can sometimes stick, rendering the property unmortgageable.

'But what about cash purchaser, which is how Lee bought it at auction.

'What could its resale value be in that case?'

Assuming it has to be for a cash buyer, we'd be looking at offers probably in the region of £70,000.

As a cash buyer at this moment in time, I would be looking £80,000 to £85,000.

Obviously they haven't done their homework at all, where I have.

I did my homework before I bought it.

I mean, I've got a friend three doors up, his house is up for £115,000.

'Lee plans to live here for the moment so these valuations are not really an issue for him.

'He's ended up with a lovely new home in the town where he grew up.

'And he's gained vital experience for his future developments.'

Well, we hope you've enjoyed today's property portfolio.

-Join us next time for more brave buyers' stories on Homes Under The Hammer.

-We'll see you then.

-Goodbye.

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