Episode 44

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0:00:00 > 0:00:03Since Martin and I have started filming Homes Under The Hammer,

0:00:03 > 0:00:08we have seen hundreds of people take the plunge and buy property at auction.

0:00:08 > 0:00:11But it can sometimes be a bit of a bumpy ride,

0:00:11 > 0:00:14so fasten your seatbelts and join us at the auctions.

0:00:39 > 0:00:43This programme isn't just about bricks and mortar.

0:00:43 > 0:00:46It's about real people who have a personal tale to tell.

0:00:46 > 0:00:49We never know quite how it's going to turn out.

0:00:49 > 0:00:50Will it be a dream or a nightmare?

0:00:50 > 0:00:53Let's see what's on today's show.

0:00:55 > 0:00:59This house in a suburb of Glasgow needs to be thoroughly checked out.

0:00:59 > 0:01:02Oh, yes. Buyer beware on this one.

0:01:04 > 0:01:08In Swindon, it's all about making the right refurbishment choices.

0:01:09 > 0:01:13Why turn your hot property into a hard to sell?

0:01:13 > 0:01:17And we revisit this fantastic Victorian flat in Dover,

0:01:17 > 0:01:20that we first saw in 2005.

0:01:20 > 0:01:23It's crying out, "Restore me to my former glory."

0:01:25 > 0:01:27These properties were sold at auction.

0:01:27 > 0:01:31We'll find out who bought them and what they paid for them

0:01:31 > 0:01:33when they went under the hammer.

0:01:35 > 0:01:39Just five miles from Glasgow city centre

0:01:39 > 0:01:42is the highly desirable suburb of Milngavie.

0:01:42 > 0:01:47With its great shops and excellent school, it appeals to both families and commuters.

0:01:49 > 0:01:53Milngavie is also at the start of the West Highland Way,

0:01:53 > 0:01:58a 96-mile trail to Fort William, handy if you want to take the dog for a rather long walk!

0:01:58 > 0:02:03The property I'm here to see is about 15 minutes' walk from Milngavie high street.

0:02:03 > 0:02:07I love the fact there's this nice little green area here.

0:02:07 > 0:02:11Lots of ex-local authority houses, including this one, up for auction.

0:02:11 > 0:02:13Three bedrooms, guide price 60,000.

0:02:13 > 0:02:16Looks all right from the outside. Let's check inside.

0:02:16 > 0:02:20Described in the catalogue as a "mid-terrace villa",

0:02:20 > 0:02:23this has a well-kept exterior and front garden.

0:02:23 > 0:02:25Let's hope that continues inside.

0:02:25 > 0:02:29I have to say that £60,000 does sound terribly cheap

0:02:29 > 0:02:32for a property in what is a fairly desirable area.

0:02:32 > 0:02:35So that does set some alarm bells ringing.

0:02:35 > 0:02:37I'll come to that later. What have we got?

0:02:37 > 0:02:40Through the front door, it's a nicely-kept property.

0:02:40 > 0:02:45Large lounge there. This is the entrance to store hats and coats.

0:02:45 > 0:02:48Stairs up to three bedrooms. Quite unusual,

0:02:48 > 0:02:51a bathroom and loo downstairs, which isn't ideal.

0:02:51 > 0:02:55But hey, through to the kitchen.

0:02:55 > 0:02:59This isn't at all bad. The units are a bit tired and dated,

0:02:59 > 0:03:04but if you cleaned them up and you were going to rent this out, they'd be serviceable.

0:03:04 > 0:03:08I like the design. A breakfast bar, very practical for a family.

0:03:08 > 0:03:10A combination boiler, it's all looking good.

0:03:10 > 0:03:13I don't like this, the suspended ceiling.

0:03:13 > 0:03:16It makes it like an office rather than kitchen,

0:03:16 > 0:03:21so you'd want to put track lighting in here or maybe recessed halogens.

0:03:21 > 0:03:22That would make a big difference.

0:03:22 > 0:03:24All in all, though, I like it.

0:03:24 > 0:03:27So far, the house is working quite well.

0:03:27 > 0:03:30Although that ground floor bathroom is a bit inconvenient,

0:03:30 > 0:03:33it's in pretty good order and just needs updating.

0:03:33 > 0:03:39In fact, the only major change would be removing the cladding, that's not to everyone's taste.

0:03:39 > 0:03:43Upstairs, there are three decent-sized bedrooms,

0:03:43 > 0:03:46all just needing a fairly minor makeover.

0:03:46 > 0:03:49So in the surface, all the boxes have a nice big tick.

0:03:49 > 0:03:53Everything pretty tickety-boo so far, then.

0:03:53 > 0:03:57So why that £60,000 guide price?

0:03:57 > 0:03:59Well, that should make you suspicious.

0:03:59 > 0:04:02The house actually is non-standard construction.

0:04:02 > 0:04:05In fact, in the Housing Defects Act of Scotland,

0:04:05 > 0:04:09it's designated as a "defective dwelling". Sounds pretty serious.

0:04:09 > 0:04:13What it will impact on is your ability to get a mortgage on this.

0:04:13 > 0:04:15There's no immediate signs of any problems,

0:04:15 > 0:04:18until you start digging a bit deeper.

0:04:18 > 0:04:20Open the cupboards in one of the bedrooms

0:04:20 > 0:04:24and that is a fairly nasty crack.

0:04:24 > 0:04:29It might not be serious, but it certainly needs checking out.

0:04:29 > 0:04:31Oh, yes, buyer beware on this one.

0:04:33 > 0:04:35So that was the catch.

0:04:35 > 0:04:40The property is made of concrete which can develop structural problems over time.

0:04:40 > 0:04:44However, several houses in the area are also of non-standard construction

0:04:44 > 0:04:48and there have been very few cases of any major issues arising.

0:04:48 > 0:04:51But do your research before taking on one of these.

0:04:51 > 0:04:56There's nothing else I can really fault here, and despite the construction issues,

0:04:56 > 0:04:59this place doesn't disappoint.

0:05:00 > 0:05:04All in all, the property just oozes the feeling of a house

0:05:04 > 0:05:07that's really been looked after,

0:05:07 > 0:05:12and it's not just inside. In the back garden you can see well-tended lawn,

0:05:12 > 0:05:13beautifully manicured plants.

0:05:13 > 0:05:15Really great.

0:05:15 > 0:05:21From a positive point of view, having a garden like this is a real selling point for the property.

0:05:21 > 0:05:25So lots of positives. A well-looked after exterior

0:05:25 > 0:05:27and a clean and tidy interior.

0:05:27 > 0:05:30They all add up to a house ready to move into.

0:05:32 > 0:05:37But with a low guide price of £60,000, due to non-standard construction,

0:05:37 > 0:05:41it's time to ask a local estate agent for his thoughts on the property.

0:05:41 > 0:05:44The property was built roughly 60 years ago,

0:05:44 > 0:05:47using concrete-reinforced beams.

0:05:47 > 0:05:49It is listed as defective.

0:05:49 > 0:05:51It's obviously been standing for 60 years

0:05:51 > 0:05:55and there's nothing majorly apparent.

0:05:55 > 0:06:00There's a survey on the property which gives it a reasonably clean bill of health.

0:06:00 > 0:06:05But because the property has been listed as defective, no mortgage lenders will lend on it.

0:06:05 > 0:06:08Therefore making it very difficult to find funding for.

0:06:08 > 0:06:12The type of construction may be listed as defective,

0:06:12 > 0:06:15but this house is not showing any signs of problems.

0:06:15 > 0:06:17So how does it measure up otherwise?

0:06:17 > 0:06:19Generous proportions throughout.

0:06:19 > 0:06:21It should be highly sought after

0:06:21 > 0:06:25by many, at an attractive price

0:06:25 > 0:06:28and reasonably well maintained throughout.

0:06:28 > 0:06:32The estate agent reckons the house just needs modernising.

0:06:32 > 0:06:37Taking into account its non-standard construction, what resale value could it fetch?

0:06:37 > 0:06:42When this property has been upgraded, I feel it should sell

0:06:42 > 0:06:45in the region of 90 to £95,000.

0:06:45 > 0:06:52I would expect the rental value to be somewhere in the region of 550 to £600 per calendar month.

0:06:52 > 0:06:54So, a great little property

0:06:54 > 0:06:57that could pretty much be rented out as it is

0:06:57 > 0:06:59or moved into straightaway.

0:06:59 > 0:07:01If you rent it out, superb rental returns.

0:07:01 > 0:07:04The main issue is the non-standard construction.

0:07:04 > 0:07:08You need cash to buy this one, and that crack in the wardrobe.

0:07:08 > 0:07:13Still, a great one to go for. Let's see who spotted it at the auction.

0:07:17 > 0:07:20Lot number 501 is the first one to offer you today.

0:07:20 > 0:07:24The opening bid on this property is £45,000.

0:07:24 > 0:07:26£45,000. Straight in, two places.

0:07:26 > 0:07:28I'll take your bid first, madam.

0:07:28 > 0:07:31So I'll take yours at 46 and yours at 47. Is that OK?

0:07:31 > 0:07:34£47,000. 48. 49.

0:07:34 > 0:07:3650? 50 it is. 51 with the proxy bidder?

0:07:36 > 0:07:3852. 53.

0:07:38 > 0:07:4054. 55.

0:07:40 > 0:07:4256? 57.

0:07:42 > 0:07:44Yep? 57. 58.

0:07:44 > 0:07:4559.

0:07:45 > 0:07:51£60,000. The proxy bidder's out. It's you two at the moment. 60,000. 61. 62.

0:07:51 > 0:07:53Is that 63, sir? 63 it is.

0:07:53 > 0:07:54£63,000.

0:07:54 > 0:07:5864. 65? 65 it is.

0:07:58 > 0:08:0166? No. 66,000? 66,000 at the back of the room.

0:08:01 > 0:08:02£66,000.

0:08:02 > 0:08:05£67,000 on the aisle. 68?

0:08:05 > 0:08:09Rolling on now? £68,000. 69?

0:08:09 > 0:08:11£69,000.

0:08:11 > 0:08:1370,000. 70,000 it is.

0:08:13 > 0:08:14Shake of the head.

0:08:14 > 0:08:18£70,000. At the back of the room. It's your bid. 70,000.

0:08:18 > 0:08:1970,500. New place.

0:08:19 > 0:08:2170,500. 71.

0:08:21 > 0:08:24Can I go 72 again? £72,000.

0:08:24 > 0:08:2673?

0:08:26 > 0:08:30£73,000 here. 74? £74,000 now. 75?

0:08:30 > 0:08:32£75,000. Back in at 76.

0:08:32 > 0:08:35£76,000 against you, sir. No? Shake of the head.

0:08:35 > 0:08:38It's your bid at £76,000. I'll go 500 if it helps you.

0:08:38 > 0:08:4276,500. 77.

0:08:42 > 0:08:4477,500. Back in at 78.

0:08:44 > 0:08:46500.

0:08:46 > 0:08:4778,500. 79.

0:08:47 > 0:08:49500. 79,500.

0:08:49 > 0:08:5180. 80 it is.

0:08:51 > 0:08:55Coming back in at 80,500? Yes. 80,500. 81.

0:08:55 > 0:08:5881,500. 82.

0:08:58 > 0:09:0082 and a half. 82 and a half it is.

0:09:00 > 0:09:0283. £83,000.

0:09:02 > 0:09:05Still going. At £83,000.

0:09:05 > 0:09:07No? 83,500.

0:09:07 > 0:09:0884,000.

0:09:08 > 0:09:1184,500. 85.

0:09:11 > 0:09:1385 and a half? Yes, 85 and a half it is.

0:09:13 > 0:09:1686. £86,000.

0:09:16 > 0:09:19Lady's bid at £86,000.

0:09:19 > 0:09:2186 and a half? I need to hurry you.

0:09:21 > 0:09:25It's £86,000. I'm going to sell. At £86,000.

0:09:25 > 0:09:29Sold at £86,000. Well done. Congratulations.

0:09:29 > 0:09:33That winning bid of 86,000 was made by Alison.

0:09:35 > 0:09:38She and her husband, Justin, live in Glasgow.

0:09:38 > 0:09:41But up until a year ago, London was their home.

0:09:41 > 0:09:45That was where they both learned their property development skills.

0:09:45 > 0:09:49I caught up with them to find out what they planned to do here.

0:09:51 > 0:09:55- Alison, Justin, lovely to meet you. - Nice to meet you.- Congratulations.

0:09:55 > 0:09:59- Why did you want to buy this place? - We bought it as a rental investment.

0:09:59 > 0:10:04There's a good rate of return on the property.

0:10:04 > 0:10:09- Approximately, we're hoping to get £700 a month.- Right. Wow.

0:10:09 > 0:10:12In rent. So that'll be 8,400 a year.

0:10:12 > 0:10:17We paid 86,000 for the house. So that's almost a 10% rental yield.

0:10:17 > 0:10:19Going straight into the numbers!

0:10:19 > 0:10:24- Wow! That's what it's all about, isn't it?- That's what it's all about.

0:10:24 > 0:10:28Actually, not it's not. There's a fantastic school nearby.

0:10:28 > 0:10:31I knew from family who'd researched the area

0:10:31 > 0:10:34how much in demand this house was.

0:10:34 > 0:10:39- I have a waiting list of people to come and see the property. - Really? To rent it out already?

0:10:39 > 0:10:42Loads of people on email who really want it.

0:10:42 > 0:10:46- So it'll get snapped up.- You're numbers and you're practicalities.

0:10:46 > 0:10:50I'm thinking it's a house that someone really wants to live in.

0:10:50 > 0:10:51It'll be easy for us to manage.

0:10:51 > 0:10:54# That's why I'm easy #

0:10:56 > 0:10:58Well, this couple seem pretty clued up.

0:10:58 > 0:11:00Justin is a quantity surveyor.

0:11:00 > 0:11:05Alison is studying for an MBA and they have a portfolio of six properties in London.

0:11:05 > 0:11:10They have background knowledge when it comes to choosing the right property.

0:11:10 > 0:11:12It's good to be in control,

0:11:12 > 0:11:15but for Justin, that didn't seem to be the case at the auction.

0:11:17 > 0:11:21You, I have to say, looked a bit perplexed at what was going on.

0:11:21 > 0:11:27I was concerned we'd be there at ten o'clock at night still bidding!

0:11:27 > 0:11:29At 150 million!

0:11:32 > 0:11:34I just decided that it was mine.

0:11:34 > 0:11:38I came to see the house, drove outside it a few times,

0:11:38 > 0:11:40and I was going to the auction to buy it.

0:11:40 > 0:11:44I knew it was a great deal and I knew the figures were working out.

0:11:44 > 0:11:48- So I just went against Justin's word!- Aye.

0:11:48 > 0:11:52We'd agreed a limit and it went a bit beyond that.

0:11:52 > 0:11:53But I'm glad we did now.

0:11:53 > 0:11:56Alison did the right thing, 100 per cent.

0:11:59 > 0:12:02I reckon you said the right thing there, Justin.

0:12:02 > 0:12:06But were they worried that the non-standard construction was a drawback?

0:12:06 > 0:12:11A lot of houses in this area are of this construction and there doesn't seem to be problems with them.

0:12:11 > 0:12:16A lot of the houses are being refurbished by the local authority

0:12:16 > 0:12:23and they do regular surveys and that demonstrates that the houses are not going anywhere very fast.

0:12:23 > 0:12:27There is a bit of a weird crack in one of the cupboards upstairs.

0:12:27 > 0:12:29- Have you seen that?- Yes.- Yeah.

0:12:29 > 0:12:31- What is it? Any ideas?- No!

0:12:31 > 0:12:35- No, I'm not worried about that. - Not worried.- Nothing a bit of filler won't sort out!

0:12:35 > 0:12:40Well, they'll need more than one tube to fill that crack!

0:12:40 > 0:12:44After doing some all-important research, Alison and Justin are convinced

0:12:44 > 0:12:46they've got a sure-fired hit on their hands.

0:12:46 > 0:12:49What's the plans for it? What will you do?

0:12:49 > 0:12:51As little as possible, Martin!

0:12:51 > 0:12:52That's the short answer!

0:12:52 > 0:12:56I think we'll just maybe give it a paint job

0:12:56 > 0:12:58and then change the carpets.

0:12:58 > 0:13:02Alison's brought some of my tools up but that's just a precautionary measure!

0:13:02 > 0:13:05We're hoping not to open the tool box at all!

0:13:05 > 0:13:10We might do a bit in the kitchen, maybe change the kitchen doors.

0:13:10 > 0:13:12- If it ain't broke, don't fix it. - Exactly.

0:13:12 > 0:13:15How much are you going to spend sorting it out?

0:13:15 > 0:13:19We've no budget. I know that's a Homes Under The Hammer no-no!

0:13:19 > 0:13:22- Especially for a quantity surveyor! - Exactly! I know.

0:13:22 > 0:13:24Justin says it'll cost what it costs, so...

0:13:24 > 0:13:26Something between...

0:13:26 > 0:13:29Probably about up to 5,000, probably.

0:13:29 > 0:13:31I don't think we'll even spend that.

0:13:31 > 0:13:33- I'm thinking two and a half.- Right.

0:13:33 > 0:13:39- Congratulations. Good luck with it. Look forward to seeing how you get on.- Thanks.- Thank you.

0:13:39 > 0:13:44So, Alison and Justin having a few differences of opinion already

0:13:44 > 0:13:47in how much work is going to be done here.

0:13:47 > 0:13:49Hope there won't be too many arguments!

0:13:49 > 0:13:54And I think they're being a little bit casual about that crack in the cupboard.

0:13:54 > 0:13:57How will they get on? You can find out later in the show.

0:14:01 > 0:14:05Well, perhaps I'm not seeing it in the best weather,

0:14:05 > 0:14:10but could Swindon in Wiltshire be the perfect place to splash out on a property purchase?

0:14:14 > 0:14:19A simple glance into a few front gardens will tell you a lot about a place.

0:14:19 > 0:14:22Here on Cullen Road, it's looking pretty good.

0:14:22 > 0:14:25I've been told there's a real community feel to the area.

0:14:25 > 0:14:28And once people move here, they tend to stay.

0:14:28 > 0:14:32So it all bodes well for our little semi-detached bungalow

0:14:32 > 0:14:35which had a guide price of 135,000.

0:14:35 > 0:14:39The front area could do with some sprucing up. A few plants would help.

0:14:39 > 0:14:43But there's plenty of off-street parking and a garage,

0:14:43 > 0:14:47so along with a good-sized garden complete with greenhouse and shed,

0:14:47 > 0:14:49135,000 is not a bad price

0:14:49 > 0:14:53for what is an increasingly rare species - a bungalow.

0:14:55 > 0:14:58Well, not everybody loves a bungalow

0:14:58 > 0:15:00but personally, I do.

0:15:00 > 0:15:04Look at this lovely hallway. There's such a lot of space here.

0:15:04 > 0:15:08You've got one, two, three bedrooms,

0:15:08 > 0:15:10two good-sized doubles and a single,

0:15:10 > 0:15:13and through here - whoa!, the carpet's on fire! -

0:15:13 > 0:15:16a really nice-sized lounge.

0:15:16 > 0:15:21I think the most appealing thing to me here is all the rooms are of a really good size.

0:15:21 > 0:15:26OK, they're not bursting with character, but that's something you can add later.

0:15:26 > 0:15:30You know, this place isn't unloved, it's just very dated.

0:15:30 > 0:15:32And it will need a little bit of work.

0:15:32 > 0:15:35# Relight my fire

0:15:35 > 0:15:40# Cos I need your love. #

0:15:41 > 0:15:44There are no obvious structural changes needed.

0:15:44 > 0:15:48All this bungalow really needs is to be sparked back to life

0:15:48 > 0:15:49and brought up to date.

0:15:51 > 0:15:53Let the sun shine in!

0:15:53 > 0:15:56I think you'll agree this is a rather bright room,

0:15:56 > 0:15:57not a bad size,

0:15:57 > 0:16:00and this house was built in the '50s

0:16:00 > 0:16:02so why shouldn't this be here?

0:16:02 > 0:16:04In London, in Spitalfields market, in fact,

0:16:04 > 0:16:06that would go for a fortune.

0:16:06 > 0:16:10A rather old, dated boiler. That will need changing.

0:16:10 > 0:16:16Again, look at the electrics. But this is fantastic. My nan used to have one of these in her house.

0:16:16 > 0:16:17Look, a little sugar caddy

0:16:17 > 0:16:21so you can put your cup of tea underneath that.

0:16:21 > 0:16:23It all needs updating, though.

0:16:23 > 0:16:25Painting, the kitchen needs to be changed.

0:16:25 > 0:16:29But do you know what? I think this house would be fabulous

0:16:29 > 0:16:34if you thought about pushing out here. You've got such a big garden out there.

0:16:34 > 0:16:38You could have an extension with a nice big breakfast table

0:16:38 > 0:16:40so you could eat in here.

0:16:40 > 0:16:43To have an extension and add some square footage to this room

0:16:43 > 0:16:47would make it perfect. That's what I would do.

0:16:52 > 0:16:56So it's out with the old and maybe in with a new extension

0:16:56 > 0:16:58and possibly something more.

0:16:58 > 0:17:01Next door have extended into the loft,

0:17:01 > 0:17:03so immediately it's something to consider.

0:17:03 > 0:17:06But does it add up from an investment point of view?

0:17:06 > 0:17:08I don't think it does.

0:17:08 > 0:17:10Bungalows are popular for a reason

0:17:10 > 0:17:12and that's because they don't have any stairs!

0:17:12 > 0:17:15Around here, they sell like hotcakes.

0:17:15 > 0:17:19By all means extend at the rear and create more downstairs space,

0:17:19 > 0:17:22but why turn your hot property into a hard-to-sell?

0:17:25 > 0:17:28Perhaps the best approach is outwards rather than upward.

0:17:28 > 0:17:31A kitchen extension, or a conservatory, maybe.

0:17:31 > 0:17:33Certainly there's enough space

0:17:33 > 0:17:36but would any of these be financially worth considering?

0:17:36 > 0:17:40What does a local estate agent think?

0:17:40 > 0:17:42For the most return on this property,

0:17:42 > 0:17:44I would personally keep it as a bungalow.

0:17:44 > 0:17:49The reason being that developers no longer tend to build bungalows because of the plot size.

0:17:49 > 0:17:53And also it keeps a basis of desirability about it.

0:17:53 > 0:17:58Once you take that bungalow status away, it tends to turn people away.

0:17:58 > 0:18:03How would this bungalow that was guided at 135,000

0:18:03 > 0:18:05fare on the resale market?

0:18:05 > 0:18:08If refurbishments were made on the property,

0:18:08 > 0:18:12I would expect to revalue the property in the region of 200,000.

0:18:12 > 0:18:15Depending on the extension to the rear of the property,

0:18:15 > 0:18:20we would expect to increase value by £15,000.

0:18:20 > 0:18:24With the cost of building an extension and time delays involved,

0:18:24 > 0:18:30it really isn't financially worth doing, and is also unlikely to increase its rental potential.

0:18:30 > 0:18:34This particular area and type of property would rent very, very well.

0:18:34 > 0:18:38We'd expect to fetch something in the region of £700 per calendar month.

0:18:38 > 0:18:43Refurbishment to let out is definitely the way to go here.

0:18:43 > 0:18:46The options to extend are only worthwhile pursuing

0:18:46 > 0:18:49if this was to be a home, in order to improve your living accommodation

0:18:49 > 0:18:51rather than your bank balance.

0:18:51 > 0:18:55I think it's pretty safe to say this bungalow is a great bet.

0:18:55 > 0:18:58It's got space to extend, there's room to improve

0:18:58 > 0:19:00and you can't knock the location,

0:19:00 > 0:19:04which is, as we all know, the key to investment.

0:19:04 > 0:19:08Let's see who was savvy enough to see its potential at auction.

0:19:10 > 0:19:13Move on to number four, a semi-detached bungalow,

0:19:13 > 0:19:16needs a bit doing to it, we know.

0:19:16 > 0:19:21135. We'll start at the guide of £135,000.

0:19:21 > 0:19:22Six I'll take and on we go in twos.

0:19:22 > 0:19:25Cullen Road I'm selling. 136 over there. OK. 136.

0:19:25 > 0:19:28138. 140 to you, sir. 140.

0:19:28 > 0:19:3342 to you, sir. Yeah, 42. 44 to you, sir.

0:19:33 > 0:19:35Sorry, 43.

0:19:35 > 0:19:3744, sir? At £143,000.

0:19:37 > 0:19:40The bid is on the wall. OK. At 143.

0:19:40 > 0:19:41144, new blood. 45.

0:19:41 > 0:19:4446. 47.

0:19:44 > 0:19:47Eight. Nine. 50.

0:19:47 > 0:19:49One, two, three,

0:19:49 > 0:19:53four, five, six,

0:19:53 > 0:19:54seven.

0:19:54 > 0:19:59At £157,000. The bid's over there at 157. OK? At 157.

0:19:59 > 0:20:0157 and a half.

0:20:01 > 0:20:0357 and a half. 58.

0:20:03 > 0:20:05Half. Nine.

0:20:05 > 0:20:07160.

0:20:07 > 0:20:11No? At £160,000 sat down.

0:20:11 > 0:20:13Fresh blood in at £160,000.

0:20:13 > 0:20:16I'll take half from anybody else. 160 and a half.

0:20:16 > 0:20:18One, sir? One. And a half?

0:20:18 > 0:20:20And a half.

0:20:20 > 0:20:22Two, sir? And a half. No?

0:20:22 > 0:20:25At 162. Sat down. Back to where we started.

0:20:25 > 0:20:27162 first time.

0:20:27 > 0:20:30£162,000 for the second time. 162.

0:20:30 > 0:20:33Third and last time. All done at 162.

0:20:33 > 0:20:35And your number, sir, is?

0:20:35 > 0:20:37Sorry. 22. Thank you very much.

0:20:39 > 0:20:44For £162,000, the new owner of this Swindon bungalow

0:20:44 > 0:20:48is Mike. He works alongside his partner Lesley as a computer developer

0:20:48 > 0:20:53at a research council. They both joined me at the property.

0:20:53 > 0:20:57Mike and Lesley, congratulations. Why did you want to buy this house?

0:20:57 > 0:21:01I was interested in doing a bit of property development.

0:21:01 > 0:21:07From my perspective, it's a career move. Something I could get into and do year after year.

0:21:07 > 0:21:12Something to do for ourselves. We've worked for someone else all our lives.

0:21:12 > 0:21:14So it's not just about the money here?

0:21:14 > 0:21:19- Not really.- You're happy to use this as a springboard.- Yes.

0:21:19 > 0:21:21- And a learning curve.- Yes.

0:21:21 > 0:21:24- # I'm learning to fly - Learning to fly

0:21:24 > 0:21:27# But I ain't got wings. #

0:21:27 > 0:21:30Mike has plenty of enthusiasm,

0:21:30 > 0:21:32but not much experience.

0:21:32 > 0:21:37He's hoping this bungalow will be the launch pad for his property developing career.

0:21:38 > 0:21:43Here you are. You've got the house. It needs a fair bit of work doing.

0:21:43 > 0:21:46When and how are you going to find the time to develop this?

0:21:46 > 0:21:49Every evening, every weekend.

0:21:49 > 0:21:51Every holiday.

0:21:51 > 0:21:54- Christmas!- Oh, my goodness! - And all friends and family.

0:21:54 > 0:21:58- Everybody is invited!- So you're hoping to do much of the work yourselves?

0:21:58 > 0:22:00Yes, hoping to.

0:22:00 > 0:22:03How about things like the electrics, the tiling, the plumbing?

0:22:03 > 0:22:07- Certain things...- You're shaking your head!- Nothing skilled, no.

0:22:07 > 0:22:11Right, let's go back again. So you are going to get tradesmen in, then?

0:22:11 > 0:22:15We are. There are certain building regulations

0:22:15 > 0:22:20which obviously I've been looking over the internet to see what we're able to do.

0:22:20 > 0:22:24Things like putting in windows are deemed to be skilled

0:22:24 > 0:22:26because of fire regulations and such like.

0:22:26 > 0:22:29But tiling and so on, I'd be happy to take on myself

0:22:29 > 0:22:33and putting kitchen units together and plumbing the bathroom suite is fine.

0:22:33 > 0:22:37Lesley, what are you going to do to bring this up to standard?

0:22:37 > 0:22:41I'm going to stay out in the garden, I think!

0:22:41 > 0:22:45- I'm happy about that! - Are you quite a keen gardener?

0:22:45 > 0:22:51I've done some gardens up before, and we haven't got one in the flat, so I'm desperate to sit in a garden.

0:22:51 > 0:22:53But there's not much sitting about at the moment!

0:22:55 > 0:22:58Lesley and Mike live in a rented flat at present,

0:22:58 > 0:23:00though I think Lesley would love to live here.

0:23:00 > 0:23:04But that doesn't fit in with Mike's very organised plan.

0:23:05 > 0:23:10So, Mike, how many hours do you think you've spent poring over the computer, researching?

0:23:10 > 0:23:13- Around three to four days.- What? - Over the last couple of weeks.

0:23:13 > 0:23:17What I've done is put together a project plan.

0:23:17 > 0:23:21Can I just stop you? The whole time I've been doing Homes under the Hammer,

0:23:21 > 0:23:26I have never seen anything so planned out and so worked out specifically as this.

0:23:26 > 0:23:30- It's what I do in work. - It's good.- Thank you very much.

0:23:30 > 0:23:33It's what I do in work. It's a natural progression.

0:23:33 > 0:23:39But I wanted to do it to find out how much it will cost per room, from my point of view.

0:23:39 > 0:23:43Here it says, "Bedroom one. Clear area. Labour - £5."

0:23:43 > 0:23:46Where did you pluck that figure from?

0:23:46 > 0:23:48I've done it really per hour.

0:23:48 > 0:23:52So I've really tried to work out how many hours I'm going to spend

0:23:52 > 0:23:56- on a particular room.- But you're going to be doing the work here.

0:23:56 > 0:23:59- I am.- And you're paying yourself £5 to do that.

0:23:59 > 0:24:03A huge amount of money, isn't it? I'm not going to retire on those figures!

0:24:03 > 0:24:07How many hours have you totted up in total for the work that's needed?

0:24:07 > 0:24:11In my time, it's around about 250 hours, something like that.

0:24:11 > 0:24:14And how much has your budget got to?

0:24:14 > 0:24:20- The entire budget including materials is around £14,000.- OK.

0:24:20 > 0:24:24I have to be honest with you. You may end up just going like this.

0:24:24 > 0:24:27- Throwing it out the window! - I may do.

0:24:27 > 0:24:32But I'm hoping... I'm not really expecting to keep to the pound on it,

0:24:32 > 0:24:36but I'm hoping it will give me information on where I've gone wrong, really.

0:24:36 > 0:24:39So the next property, I can use that information.

0:24:39 > 0:24:43- Good luck with this. I think it's magnificent.- Great. Thank you.

0:24:51 > 0:24:55Mike and Lesley are using this bungalow as a new beginning.

0:24:55 > 0:24:59That's great. But will Lesley fall in love with this garden?

0:24:59 > 0:25:02And will Mike's budget get thrown out with the bathroom?

0:25:02 > 0:25:05Find out what happens here later in the programme.

0:25:06 > 0:25:11Coming up: we revisit a Victorian flat in Dover we first saw in 2005.

0:25:11 > 0:25:13Even then, it was something special.

0:25:13 > 0:25:16What a place! What a place!

0:25:17 > 0:25:21Is it the end of the road for Mike's project plan in Swindon?

0:25:21 > 0:25:26It was more trouble than it was worth, keeping it up to date all the time.

0:25:29 > 0:25:33First, we return to just outside Glasgow to find Alison in her element.

0:25:33 > 0:25:36This is my kind of thing. I love being active.

0:25:41 > 0:25:43We're back on the outskirts of Glasgow now

0:25:43 > 0:25:46and the highly desirable area of Milngavie

0:25:46 > 0:25:49where this terraced house sold at auction for 86,000.

0:25:49 > 0:25:55Although it was listed as defective due to its non-standard construction,

0:25:55 > 0:25:5860 years after it was built, there'd been no problems.

0:25:58 > 0:26:02It was built by part-time property developers Alison and her husband Justin.

0:26:02 > 0:26:06They seemed to know how the numbers should stack up here.

0:26:06 > 0:26:09- We're hoping to get £700 a month rent.- Right.

0:26:09 > 0:26:13So that'll be 8,400 a year.

0:26:13 > 0:26:15And we paid 86,000 for the house.

0:26:15 > 0:26:18So that's almost a ten per cent rental yield.

0:26:18 > 0:26:21Listen to you, going straight into the numbers! Wow!

0:26:21 > 0:26:25Only time will tell if this will add up to be a nice little earner.

0:26:27 > 0:26:31Eight weeks later and the garden's in bloom.

0:26:31 > 0:26:34Let's hope the inside has also blossomed.

0:26:36 > 0:26:39Well, that's certainly a lot better.

0:26:39 > 0:26:42A fresher and lighter living room.

0:26:44 > 0:26:47And the kitchen has had a makeover as well.

0:26:50 > 0:26:53Unfortunately, Justin couldn't make it on the day we revisited,

0:26:53 > 0:26:55but busy mother-of-two Alison,

0:26:55 > 0:26:59who's also studying for a Master's degree in business administration

0:26:59 > 0:27:01found time to show us round.

0:27:04 > 0:27:09So in this room, we took away the cladding and the false walls

0:27:09 > 0:27:11and replastered the walls.

0:27:11 > 0:27:13We took away the 1970s fireplace

0:27:13 > 0:27:17and replaced it with a modern marble fireplace

0:27:17 > 0:27:20and painted it in a neutral tone

0:27:20 > 0:27:24to suit most people's tastes, and we're happy that it's nice and light and airy.

0:27:25 > 0:27:28Out in the hall, the removal of the alcove

0:27:28 > 0:27:31has also created a fresh and spacious feel.

0:27:31 > 0:27:35But it was the tired and dated kitchen on the ground floor

0:27:35 > 0:27:37that needed the most attention.

0:27:37 > 0:27:44We changed the doors in the kitchen and put in nice shiny handles,

0:27:44 > 0:27:47and changed the extractor fan, updated the tiling,

0:27:47 > 0:27:52painted the kitchen, plastered the ceiling, a pelmet in and a blind.

0:27:52 > 0:27:59We never changed the floor, which was a point of contention, but we decided to leave it.

0:27:59 > 0:28:03In the downstairs bathroom, a simple paint job and new flooring

0:28:03 > 0:28:06have made a more inviting place to enjoy a relaxing soak.

0:28:06 > 0:28:10Upstairs, it's just a straightforward redecoration

0:28:10 > 0:28:15featuring easy-going neutral colours and new carpets throughout.

0:28:15 > 0:28:19The crack is still there, so it looks like Justin didn't get the filler out

0:28:19 > 0:28:23but it seems his toolbox did see some action.

0:28:23 > 0:28:27All of the toolboxes were out and all the power tools were out.

0:28:27 > 0:28:31They've all been used. It was thoroughly enjoyable.

0:28:31 > 0:28:35There were no hassles with it, actually. It was fine.

0:28:35 > 0:28:38# It's so easy

0:28:38 > 0:28:41# To be in love with you, girl. #

0:28:41 > 0:28:44So a fuss-free and simple refurbishment,

0:28:44 > 0:28:48perfect for Alison, especially with the responsibilities of being a mother,

0:28:48 > 0:28:51plus her studies.

0:28:51 > 0:28:56In terms of juggling my time, I found it really enjoyable.

0:28:56 > 0:29:01I like being busy, so this is my kind of thing.

0:29:01 > 0:29:05# Oh, it's so easy... #

0:29:05 > 0:29:09Alison and Justin managed to do the job in just six weeks.

0:29:09 > 0:29:12That was only a week over their estimated schedule.

0:29:12 > 0:29:14How much did the renovation cost?

0:29:15 > 0:29:18In the beginning, we didn't have a budget

0:29:18 > 0:29:24although our experience subconsciously would tell us not to go over a certain figure.

0:29:24 > 0:29:28We came in at around about 5,500

0:29:28 > 0:29:31which is something we're quite happy with.

0:29:32 > 0:29:36So, including their £86,000 purchase price,

0:29:36 > 0:29:40the total outlay on the property comes to about 91,500.

0:29:40 > 0:29:45Meanwhile, they'd wasted no time in getting something back on this investment.

0:29:45 > 0:29:49The going rate is £700 a month,

0:29:49 > 0:29:52so we've managed to secure that no problems.

0:29:52 > 0:29:57We've had a lot of interest in the property and we've found a lovely family who are moving in

0:29:57 > 0:29:59at the beginning of next month.

0:30:03 > 0:30:08Alison and Justin are happy with that £700 a month rent

0:30:08 > 0:30:09but could they have got more?

0:30:09 > 0:30:13Two local estate agents cast their eyes over the renovation

0:30:13 > 0:30:15and tell us what they think.

0:30:15 > 0:30:20The work that's been done has been done as simple as possible.

0:30:20 > 0:30:24But they have brightened up the kitchen,

0:30:24 > 0:30:27added fresh units, changed it to a modern feel.

0:30:27 > 0:30:32Downstairs especially they've made some good changes

0:30:32 > 0:30:34for reasonable cost, I'd imagine.

0:30:34 > 0:30:37I'm relieved to see they haven't spent too much money!

0:30:37 > 0:30:41It looks like they've changed the doors, which is sensible,

0:30:41 > 0:30:42with a sensible colour.

0:30:42 > 0:30:45The lounge, they've got rid of all the old pine,

0:30:45 > 0:30:48emulsioned the walls in a good acceptable colour,

0:30:48 > 0:30:51and they've changed the fireplace, just perfect.

0:30:53 > 0:30:55Now it comes down to the figures.

0:30:55 > 0:30:58They've managed to get a rental income of £700 per calendar month

0:30:58 > 0:31:01so have they got the best out of the property?

0:31:03 > 0:31:09The rental income on this property should be 600 to £625 per calendar month.

0:31:09 > 0:31:16On the rental side, I would say it should achieve around about £650 per calendar month.

0:31:16 > 0:31:20Well, the house was actually in quite demand.

0:31:20 > 0:31:22A quite high demand.

0:31:22 > 0:31:26I could have rented it out to several families at 700 a month.

0:31:26 > 0:31:32That's a good result for Alison and Justin, giving them an annual yield of 9%.

0:31:33 > 0:31:37They've no plans to sell, but bearing in mind it's non-standard construction,

0:31:37 > 0:31:40and therefore difficult to get a mortgage for,

0:31:40 > 0:31:44the estate agents feel the property could fetch between 90 and £100,000.

0:31:44 > 0:31:48So, subtracting their total spend of 91,500,

0:31:48 > 0:31:52you could see a profit of £8,500, minus the usual expenses.

0:31:54 > 0:31:57But this is a long-term investment for the couple.

0:31:57 > 0:32:00For Alison, it's an opportunity to relax a little.

0:32:04 > 0:32:08Plans next are just to keep an eye on the market.

0:32:08 > 0:32:10No pressure, just to see how things go.

0:32:10 > 0:32:14There's a lot going on with our family and studying, work, et cetera.

0:32:14 > 0:32:18So no great big plans at the moment!

0:32:22 > 0:32:24Back in 2005,

0:32:24 > 0:32:26my port of call was in Kent

0:32:26 > 0:32:30to see a property strongly associated with the Royal Navy.

0:32:30 > 0:32:35One of the advantages of buying property in a place with a strong naval history

0:32:35 > 0:32:40is that occasionally you come across property which has those force's connections.

0:32:40 > 0:32:44If you don't know why that's significant, wait and see what's up for auction.

0:32:44 > 0:32:49It's a two-bedroomed flat, but unlike any two-bedroomed flat you've ever seen before!

0:32:50 > 0:32:55It went to auction with a guide price of £70,000-plus.

0:32:55 > 0:32:59It's in this Grade II-listed 1850s building.

0:32:59 > 0:33:04The property was originally used to accommodate the offices of Dover Castle.

0:33:04 > 0:33:10Outside, it doesn't have great kerb appeal as someone's dumped their rubbish on the doorstep.

0:33:10 > 0:33:13But don't let that put you off.

0:33:13 > 0:33:16Inside, you are in for a treat.

0:33:22 > 0:33:25And that's just the front door!

0:33:25 > 0:33:28What a place! This is the entrance.

0:33:28 > 0:33:31A big entrance hall here. A fireplace there.

0:33:31 > 0:33:34Bathroom off there. Two bedrooms which we'll come to later.

0:33:34 > 0:33:38Great large space for the kitchen.

0:33:38 > 0:33:41But it just goes on. Look at the size of this.

0:33:41 > 0:33:43The main living room.

0:33:43 > 0:33:48It's like you're in a movie where you've been shrunk! The door is massive.

0:33:48 > 0:33:51The ceilings must be 15 or 20 feet high.

0:33:51 > 0:33:57Just everything about this room. You can imagine the officers entertaining in this room.

0:33:57 > 0:34:00The cornice, this fantastic fireplace.

0:34:00 > 0:34:04The invite to the brigadier's dinner party on there.

0:34:04 > 0:34:06Then it just gets better.

0:34:06 > 0:34:09Fantastic shuttered windows.

0:34:09 > 0:34:11And then...

0:34:12 > 0:34:16..you step out here onto the balcony.

0:34:16 > 0:34:22You've got wrought iron and you've got this view, looking out across the English Channel.

0:34:22 > 0:34:25What a place! What a place!

0:34:46 > 0:34:51It's unbelievable how much space there is in this two-bedroomed flat.

0:34:51 > 0:34:54And it looks even bigger because of those high ceilings.

0:34:58 > 0:35:01Everywhere you turn, there are great original features.

0:35:01 > 0:35:06But these gas fires are definitely not!

0:35:06 > 0:35:12And for a property with this much space, I'm surprised to see that the two bedrooms are not big at all.

0:35:17 > 0:35:22But with this many reception rooms, there's definitely scope for expansion.

0:35:22 > 0:35:25All in all, I love this place.

0:35:27 > 0:35:29So what do you reckon?

0:35:29 > 0:35:31It's fantastic, isn't it?

0:35:31 > 0:35:35It's crying out, "Restore me to my former glory!"

0:35:35 > 0:35:37And for a 70 grand asking price,

0:35:37 > 0:35:39you've got to go for it.

0:35:39 > 0:35:40Let's go to the auction.

0:35:44 > 0:35:47Interesting block. Start me where?

0:35:47 > 0:35:50We've got 70,000-plus. Anyone in at £70,000?

0:35:50 > 0:35:5370,000, can I say? We sold a few of these in the last auction.

0:35:53 > 0:35:56They went really well. 70,000 do I see?

0:35:56 > 0:35:59£70,000. I'm on the way at £70,000.

0:35:59 > 0:36:01And two, now, do I see?

0:36:01 > 0:36:0372, do I say? 72, may I say?

0:36:03 > 0:36:0572.

0:36:05 > 0:36:08In the back corner. 72. 75 now.

0:36:08 > 0:36:1175. And 77 in the back.

0:36:11 > 0:36:1480 from you, madam. 82 at the back.

0:36:14 > 0:36:1685, madam? 85.

0:36:16 > 0:36:18And seven, sir. And 90.

0:36:18 > 0:36:19And two.

0:36:19 > 0:36:2192. And five.

0:36:21 > 0:36:25And seven. £95,000 to the original bidder.

0:36:25 > 0:36:26£95,000.

0:36:26 > 0:36:28And seven I'm looking for.

0:36:28 > 0:36:30All done at £95,000.

0:36:30 > 0:36:33I'll sell at 95 if nobody else comes in.

0:36:33 > 0:36:35Second time at 95,000.

0:36:35 > 0:36:38Third and final time at £95,000.

0:36:38 > 0:36:42Well done, madam. You've bought it at 95. Your number, please?

0:36:42 > 0:36:43627.

0:36:43 > 0:36:47The new owner of the flat is Linda, who currently lives in London.

0:36:47 > 0:36:49I met her back at the property

0:36:49 > 0:36:53to find out just why she's decided to buy this flat in Dover.

0:36:57 > 0:37:00So what was it that made you want to buy this place,

0:37:00 > 0:37:01as if it's not obvious!

0:37:01 > 0:37:06Well, I'd already bought the upstairs flat, which was at auction.

0:37:06 > 0:37:10- Really?- So that was part of the reason.

0:37:10 > 0:37:14And I knew that this was coming up for sale

0:37:14 > 0:37:17and I thought, "I must have a look at that"

0:37:17 > 0:37:21because I knew they had balconies and the view.

0:37:21 > 0:37:23And the sea, and lots of things.

0:37:23 > 0:37:25It's a beautiful flat.

0:37:25 > 0:37:28What originally brought you down to this area?

0:37:28 > 0:37:33My cousin lived next door, so she told me when she saw the auction sign.

0:37:33 > 0:37:38Cos I'd always said how beautiful her house is.

0:37:38 > 0:37:42So that's why I came.

0:37:42 > 0:37:43It just feels like home.

0:37:43 > 0:37:46# I'm coming home to you

0:37:47 > 0:37:49# I'm coming home... #

0:37:50 > 0:37:53Well, I can already picture Linda and her cousin

0:37:53 > 0:37:55sitting out on the veranda, drinking tea

0:37:55 > 0:37:58and having a good old chat.

0:37:58 > 0:38:00But that's not part of Linda's immediate plans.

0:38:02 > 0:38:05I'll probably have to do this up to let.

0:38:05 > 0:38:09Cos I haven't got unlimited resources!

0:38:09 > 0:38:11But I'd love to live here eventually.

0:38:12 > 0:38:14That's my ideal.

0:38:14 > 0:38:16Cos it's so nice.

0:38:16 > 0:38:21How will you go about the project? Do it yourself, or get people in?

0:38:21 > 0:38:26I have to get people in like electricians.

0:38:26 > 0:38:29I'll probably have a new bath suite.

0:38:29 > 0:38:32And change the kitchen. And paint it.

0:38:32 > 0:38:37And possibly take down the Christmas decorations!

0:38:37 > 0:38:40Perhaps. That's not a bad idea!

0:38:40 > 0:38:42I'll do some myself,

0:38:42 > 0:38:47but I think I'll be having to earn the money to pay for it!

0:38:47 > 0:38:50It won't be cheap restoring this place.

0:38:50 > 0:38:54So how will Linda be financing the project?

0:38:54 > 0:38:58- I cook for photography. - Oh?- That's it!

0:38:59 > 0:39:03- How do you mean?- You know, magazines have a picture of food.

0:39:03 > 0:39:05Somebody has to do the cooking

0:39:05 > 0:39:09and so that's what I do for a living.

0:39:09 > 0:39:14- It's something you see all the time, but you never think somebody's got to do it.- Yes.

0:39:14 > 0:39:17I imagine there's lots of skills involved. How does it relate to property?

0:39:17 > 0:39:21Well, I've always liked houses.

0:39:21 > 0:39:27Always wanted to do up houses. I like doing up old houses.

0:39:27 > 0:39:29I haven't done very many!

0:39:29 > 0:39:31I talk as though I do them all the time!

0:39:31 > 0:39:34I suppose four or five I've done.

0:39:37 > 0:39:39Well, that was back in 2005.

0:39:39 > 0:39:42When we first went back, four months later,

0:39:42 > 0:39:44there wasn't that much progress.

0:39:46 > 0:39:50It's sort of started. Very slow work has gone on.

0:39:50 > 0:39:55But now, nearly five years later, we returned again.

0:39:55 > 0:39:58Join us later in the show to see the magnificent restoration job

0:39:58 > 0:40:00Linda has achieved.

0:40:05 > 0:40:08All our buyers hope that the journey was worth it

0:40:08 > 0:40:10and that they avoided the pitfalls.

0:40:10 > 0:40:12Decisions, decisions.

0:40:12 > 0:40:16Do they have a tale to tell? Let's go back and find out!

0:40:17 > 0:40:20In Swindon, Wiltshire, this three-bed bungalow

0:40:20 > 0:40:21seemed the ideal starter project

0:40:21 > 0:40:24for first-time property developers Mike and Lesley.

0:40:24 > 0:40:27They paid 162,000 for it

0:40:27 > 0:40:30and it represented a change of direction for them both.

0:40:31 > 0:40:34We want to do something for ourselves.

0:40:34 > 0:40:38- We've worked for others all our lives.- So it's not just about money here?

0:40:38 > 0:40:43- No, not really.- You'll use this as a springboard.- Yes.

0:40:43 > 0:40:44- And a learning curve.- Yes.

0:40:44 > 0:40:48- # I'm learning to fly - Learning to fly

0:40:48 > 0:40:51# But I ain't got wings. #

0:40:51 > 0:40:57Computer developer Mike was particularly keen to see if property development was the way forward.

0:40:57 > 0:41:00He'd done some rigorous preparations.

0:41:03 > 0:41:06I've put together a project plan.

0:41:06 > 0:41:12I wanted to do it really to see how much per room it costs, from my point of view.

0:41:12 > 0:41:14And how accurate I can be.

0:41:14 > 0:41:19Well, they do say, "Fail to plan and your plan might fail."

0:41:19 > 0:41:21So, had his meticulous work paid off?

0:41:21 > 0:41:24Eight months later, we're back.

0:41:34 > 0:41:39The outside has really been improved, with a new bay window adding more shape and character.

0:41:42 > 0:41:46While inside, the front room is now warm and welcoming.

0:41:46 > 0:41:48The whole place looks like a home now.

0:41:48 > 0:41:51But I thought this was a development project.

0:41:51 > 0:41:53So what's going on?

0:41:56 > 0:41:58I always really wanted to move in anyway,

0:41:58 > 0:42:02so I persuaded Mike - well, it was Mike's dad, actually!

0:42:02 > 0:42:06Between you and my dad, we decided that would be the best course of action,

0:42:06 > 0:42:08to move in.

0:42:09 > 0:42:12Mike and Lesley were living in a rented flat not far away

0:42:12 > 0:42:16but the opportunity to move into a more spacious home with a garden

0:42:16 > 0:42:19just seemed too good an opportunity to miss!

0:42:25 > 0:42:28So they've now arranged the layout to suit them.

0:42:28 > 0:42:32They kept the two big bedrooms as bedrooms but turned the smallest one into a study.

0:42:39 > 0:42:42They've put in a brand-new bathroom suite.

0:42:48 > 0:42:52And a smart, modern kitchen.

0:42:56 > 0:42:59When we first took on the house,

0:42:59 > 0:43:02we had an old-style 1950s boiler here.

0:43:02 > 0:43:04We took that one out

0:43:04 > 0:43:09and put a new heating system actually through into the bathroom.

0:43:09 > 0:43:14The other thing we had in the room as well was a corner cupboard.

0:43:14 > 0:43:20We took that out and it gave us the chance to put in some double patio doors onto our new patio.

0:43:21 > 0:43:25We used to have a porch on the outside of this building

0:43:25 > 0:43:29and when we looked at it, we found it was separating from the house,

0:43:29 > 0:43:30so we took the whole porch down.

0:43:30 > 0:43:37So we continued the process of trying to get the garden in more with the house itself,

0:43:37 > 0:43:39and get more involved with the two.

0:43:43 > 0:43:46The garden now finishes things off very nicely

0:43:46 > 0:43:48and it all adds up to a lovely new home.

0:43:48 > 0:43:51But more importantly, do the figures add up,

0:43:51 > 0:43:53and match Mike's projections?

0:43:53 > 0:43:58# You count the days, but does it all add up to you?

0:43:58 > 0:44:01# Does it all add up to you?

0:44:01 > 0:44:03# Why we're

0:44:05 > 0:44:07# Living by numbers

0:44:09 > 0:44:11# Living by numbers. #

0:44:12 > 0:44:15I think I was way out, actually!

0:44:15 > 0:44:21I think that and the fact that I got builders involved an awful lot more

0:44:21 > 0:44:22than myself.

0:44:22 > 0:44:26So generally, I found as I went through

0:44:26 > 0:44:31it was more trouble than it was worth, keeping it up to date all the time.

0:44:31 > 0:44:36I think my budget went up really in the region of about 20,000.

0:44:39 > 0:44:45As more tradesmen were employed than intended, and as it's now to become their home,

0:44:45 > 0:44:46the specifications changed.

0:44:46 > 0:44:49So the original £14,000 budget went out of the window

0:44:49 > 0:44:53along with that carefully calculated project plan!

0:44:53 > 0:44:58It isn't just Mike who hasn't spent as much time on the refurbishment as he'd like.

0:44:58 > 0:45:01Lesley had another new venture to keep her busy.

0:45:01 > 0:45:05We decided that I would go into the cup cake business.

0:45:05 > 0:45:08I was going to make cakes from home and sell them,

0:45:08 > 0:45:11but then I found a unit in a craft village locally

0:45:11 > 0:45:16and I thought it would be an idea to do cup cake decorating for children

0:45:16 > 0:45:19so we do workshops and it's really good.

0:45:23 > 0:45:25Lesley's business seems to be flying along

0:45:25 > 0:45:30while Mike's plan for a property developing career has veered off somewhat.

0:45:30 > 0:45:33Does he still have the taste for a new career?

0:45:35 > 0:45:38I feel that this particular job gives me an idea

0:45:38 > 0:45:42and a better understanding of what to expect in the future.

0:45:42 > 0:45:46But it would be nice to take on a property and do it as a commercial venture

0:45:46 > 0:45:50and this is in between the two at the moment still.

0:45:52 > 0:45:56But if this was a commercial venture, how well would he have done?

0:45:56 > 0:46:01They purchased the property for 162,000 and spent £20,000 on the refurbishment.

0:46:01 > 0:46:06With costs, the total outlay won't be far off the 185,000 mark.

0:46:06 > 0:46:09So how does it stand up as an investment?

0:46:10 > 0:46:13It's a very nicely presented property.

0:46:13 > 0:46:15It's nice that it's still a bungalow

0:46:15 > 0:46:17cos they are becoming a dying breed.

0:46:17 > 0:46:20Very nicely presented throughout.

0:46:20 > 0:46:24From previous visits, the changes are immense.

0:46:24 > 0:46:27It's unrecognisable, to be honest.

0:46:27 > 0:46:30It's very, very nice. Very impressed.

0:46:30 > 0:46:33I like the kitchen. It's a nice square kitchen

0:46:33 > 0:46:37which makes it versatile and the rooms are all of a reasonable size.

0:46:37 > 0:46:40They can be used for different things. Overall, very nice.

0:46:40 > 0:46:47Positive comments. But has the 185,000 been well invested into their new home?

0:46:47 > 0:46:53On the open market, my opinions are a figure in the region of £200,000.

0:46:53 > 0:46:56I'd be inclined to market this property initially

0:46:56 > 0:46:59somewhere between 195 and 200,000.

0:46:59 > 0:47:02I would hope to achieve 190,000-plus.

0:47:02 > 0:47:06Right. That's in the region that we'd expected.

0:47:08 > 0:47:11So perhaps a 10 to £15,000 profit here,

0:47:11 > 0:47:14but if they're not selling this, what will they do next?

0:47:16 > 0:47:18A rest!

0:47:18 > 0:47:21I was thinking of another property, actually!

0:47:21 > 0:47:25I'd like to have a look at another one fairly soon if I can.

0:47:25 > 0:47:27Maybe over the next few months.

0:47:29 > 0:47:31If they do make any profit on this property,

0:47:31 > 0:47:35that started off as a trial run and ended up as their new home,

0:47:35 > 0:47:38then I guess that would just be the cherry on the cake!

0:47:55 > 0:47:56It was in 2005

0:47:56 > 0:48:01when I first went to this fantastic two-bed Grade II listed Victorian flat in Dover.

0:48:01 > 0:48:07Located in a building originally built to accommodate the offices of Dover Castle,

0:48:07 > 0:48:11this ground floor garden flat had sadly fallen into a state of disrepair.

0:48:11 > 0:48:14But it had lost none of its character or charm.

0:48:17 > 0:48:23For home economist Linda, who already owned a one-bed flat in the same block,

0:48:23 > 0:48:25this was a must-have purchase.

0:48:30 > 0:48:34So, for £95,000 at auction, the flat became hers.

0:48:34 > 0:48:37But when we first went back four months later,

0:48:37 > 0:48:39there wasn't much progress.

0:48:39 > 0:48:43But her passion for the project remained undimmed.

0:48:43 > 0:48:46I think it's so nice, it's so good.

0:48:46 > 0:48:49I feel it was kind of built for me!

0:48:49 > 0:48:52Terribly fanciful!

0:48:52 > 0:48:54But I just feel at home here.

0:48:57 > 0:49:00Now, five years on, we've returned.

0:49:09 > 0:49:12And what a transformation it is!

0:49:12 > 0:49:15The original splendour is now back

0:49:15 > 0:49:17and this has become Linda's new home.

0:49:20 > 0:49:25She's beautifully restored and expertly repaired the whole flat.

0:49:30 > 0:49:33And yet she's also managed to put her own stamp on the place,

0:49:33 > 0:49:36making structural changes to enhance the space.

0:49:36 > 0:49:40You can see that in the way she's tackled the kitchen.

0:49:40 > 0:49:42It was quite a dark room,

0:49:42 > 0:49:46and so I had to make a hole here.

0:49:46 > 0:49:50Actually, I was away when it was done.

0:49:50 > 0:49:52The builder just did it.

0:49:52 > 0:49:57And inside the wall was sawdust and planks.

0:49:57 > 0:49:59That's what this wall is!

0:50:01 > 0:50:05And it was such a fantastic difference

0:50:05 > 0:50:07in the light

0:50:07 > 0:50:09in this room.

0:50:09 > 0:50:13I had a fitted kitchen put in, which he did.

0:50:13 > 0:50:16And I just didn't like it.

0:50:16 > 0:50:19Cos you couldn't see what I'd bought the house for.

0:50:19 > 0:50:24So after a while, I just gradually had it taken away.

0:50:33 > 0:50:36That desire to have a more traditional style

0:50:36 > 0:50:38continues in the bathroom.

0:50:38 > 0:50:40No power showers here for Linda.

0:50:40 > 0:50:43It's a classic look mixed with a practical approach

0:50:43 > 0:50:46that combines both old and new very well.

0:50:46 > 0:50:51And that method continues with the bedrooms.

0:50:51 > 0:50:54Firstly, it was a two-bedroomed flat.

0:50:54 > 0:50:58And it took me a long time to realise that actually,

0:50:58 > 0:51:00I had to take down the partition!

0:51:00 > 0:51:05I just couldn't fit the beds in. It seemed wrong.

0:51:05 > 0:51:10So now it's one bedroom, but a nice, big, big bedroom.

0:51:10 > 0:51:14Although normally you wouldn't reduce the number of bedrooms,

0:51:14 > 0:51:16here, it works really well,

0:51:16 > 0:51:21creating one fantastic room where before there were two awkward spaces.

0:51:27 > 0:51:31Not only does it work better for the flat, more importantly it's right for Linda.

0:51:33 > 0:51:35It's good that it's taken time,

0:51:35 > 0:51:38because you have a chance for it to evolve

0:51:38 > 0:51:44rather than making quite major mistakes!

0:51:44 > 0:51:48One area where you can't rush things is a garden.

0:51:48 > 0:51:51This one has gone from looking like a campsite in the wilderness

0:51:51 > 0:51:53to cleared scrub land...

0:51:53 > 0:51:58and now a spectacular patio and terrace.

0:52:09 > 0:52:14It also allows access to a fabulous communal facility.

0:52:16 > 0:52:19It's pretty special, really.

0:52:19 > 0:52:24And I suppose that's why Victoria Park is so called,

0:52:24 > 0:52:29because all this is part of the address, that we can use.

0:52:29 > 0:52:33It's absolutely fantastic!

0:52:33 > 0:52:36It's really... It's very, very special.

0:52:36 > 0:52:39With all this on her doorstep,

0:52:39 > 0:52:44you can understand why Linda was so keen to buy the ground floor garden flat.

0:52:44 > 0:52:46She bought it for £95,000 at auction,

0:52:46 > 0:52:51and so far thinks she's spent between 30 and £35,000.

0:52:51 > 0:52:54But this wasn't the only flat in the block.

0:52:54 > 0:53:00So as she'd already bought the one-bed first floor flat for £72,000 at auction,

0:53:00 > 0:53:02she decided not to stop there.

0:53:02 > 0:53:08Well, I bought the top three flats from the developer

0:53:08 > 0:53:11who was bidding against me in the auction,

0:53:11 > 0:53:17and I bought the basement flat with a friend.

0:53:17 > 0:53:20But there was a lot to do on the three top flats.

0:53:20 > 0:53:25And I had a terrific builder to help me.

0:53:25 > 0:53:29Wow! So, since we last saw her in 2005,

0:53:29 > 0:53:32Linda has bought the entire building!

0:53:32 > 0:53:38That's six flats across five floors including the basement flat which she co-owns with a friend.

0:53:38 > 0:53:44Buying and completely renovating it all has cost around £750,000.

0:53:45 > 0:53:49We were keen to pop upstairs to the one-bed flat on the first floor

0:53:49 > 0:53:52to get an idea of what the other flats are like.

0:53:57 > 0:54:00As you see, she continues to renovate and refurbish

0:54:00 > 0:54:02very sympathetically.

0:54:11 > 0:54:14But has Linda's heart ruled her head

0:54:14 > 0:54:17when it comes to financial matters?

0:54:17 > 0:54:21She's spent an estimated £750,000 on the whole building.

0:54:21 > 0:54:26But will the ground floor flat she lives in give us a clue as to whether she's made a profit?

0:54:26 > 0:54:30This one has cost around 130,000 to buy and restore.

0:54:30 > 0:54:33What does a local estate agent think?

0:54:33 > 0:54:36It's a lovely, spacious flat.

0:54:36 > 0:54:40Incredibly high ceilings, a host of period features.

0:54:40 > 0:54:45Lovely garden, outlook. It's an absolutely stunning property.

0:54:46 > 0:54:47But fantastic as it is,

0:54:47 > 0:54:52is it worth the 130,000 Linda invested here?

0:54:53 > 0:54:55The property in the current market conditions,

0:54:55 > 0:54:58and it is presented to a very nice standard,

0:54:58 > 0:55:02we feel it would be on the open market at £125,000.

0:55:02 > 0:55:08It's gone.... It's lower. It's lower than when I bought it.

0:55:08 > 0:55:12But I can't see myself selling.

0:55:12 > 0:55:16So her flat alone isn't really a money spinner.

0:55:16 > 0:55:20But remember, she does own, or co-own, the other five flats too,

0:55:20 > 0:55:24that's two two-bed flats and four one-bed flats.

0:55:24 > 0:55:28Linda's total investment is around 750,000.

0:55:28 > 0:55:31Judging by the quality of the flats she's viewed here,

0:55:31 > 0:55:33the estate agent reckons the whole building

0:55:33 > 0:55:38could be worth around just 720,000 if sold as individual flats.

0:55:38 > 0:55:41What does Linda think about that?

0:55:41 > 0:55:43I've probably spent a bit more than that!

0:55:43 > 0:55:47I bought the top flats at the height of the boom.

0:55:47 > 0:55:51So it wasn't a very sensible way of buying a house.

0:55:51 > 0:55:55If this project was just about money,

0:55:55 > 0:55:58then at present you could say it was not that successful.

0:56:00 > 0:56:02But this is about so much more.

0:56:02 > 0:56:04It's about preserving a piece of history,

0:56:04 > 0:56:06and restoring a lovely building.

0:56:06 > 0:56:08Most importantly of all for Linda,

0:56:08 > 0:56:11it was to create a fabulous home.

0:56:12 > 0:56:14It's the best house I've ever been in.

0:56:14 > 0:56:18It's the space and the air and the place.

0:56:18 > 0:56:20It's very, very nice.

0:56:20 > 0:56:24It really means such a lot to have a home you love being in.

0:56:24 > 0:56:27It means everything, really.

0:56:27 > 0:56:31So it looks like Linda's love affair with this building continues.

0:56:31 > 0:56:34And it's not hard to see why!

0:56:47 > 0:56:49That's it for today's show.

0:56:49 > 0:56:52But there are plenty more buyers where they came from.

0:56:52 > 0:56:55So for your chance to follow what happens to them, join us next time

0:56:55 > 0:56:59- for more Homes under the Hammer. - See you!- Goodbye!- Bye!

0:57:19 > 0:57:22Subtitles by Red Bee Media Ltd