Episode 68 Homes Under the Hammer

-Welcome to Homes Under The Hammer.

-They say every house tells a story.

-We've found that to be true.

-There are always secrets to uncover

and problems to find when you buy your home under the hammer.

Auction properties are bought on a "buyer beware" basis. It's up to you to check them out before you buy.

Or you could be in for some nasty surprises.

Let's see if today's bidders got lucky with their purchases.

'You're going to need more than a sweet tooth for this topsy-turvy Tavistock property.'

Boiled sweet, anybody?

'There are two bedrooms in this flat in Wembley and lots of spare space.'

Come here. This is probably one of the biggest cupboards I've been in.

'And this Swindon semi won't suit everyone and certain pets are banned.'

So owners of boa constrictors, scorpions and pet whales need not apply.

-'All of these properties went to auction.'

-150 anywhere?

'We'll find out who bought them and what they paid when they went under the hammer.'

I'm in Tavistock on the edge of Dartmoor in Devon,

famous for this viaduct which passes across the town.

It once used to carry the trains from Plymouth to Tavistock.

The big question is, will the property I'm here to see today be on track?

Well, the trains may be gone, but the roads are still busy

as Tavistock is a popular town for commuters working in Plymouth.

It's also an attractive tourist destination as it's just to the west of Dartmoor National Park.

Well, just a few minutes' walk out of the town centre is the property I'm here to see.

And access is kind of unusual. It's across this sort of bridge thing.

That's because the house itself is fairly unusual. 115,000 quid was the guide price.

It's a three-storey semi-detached. Let's take a look inside.

It's been built on a steep embankment,

so access from the street is from the third floor at the front of the house.

At ground level, there is access to the garden from the back.

The building was probably built in the 1970s, so it isn't very old,

but it's in a really run-down condition. It looks as though it's been lying empty for a long time.

But a chance to buy any property in Tavistock is always enticing.

What have we got? Well, one thing we haven't got is a banister! That's not a very good start.

And the smell in here is pretty vile.

Look at the state of the carpet too! Yeuch! Anyway, not to worry...

The living room area there and then down this corridor area through to the kitchen

which I'm sure will be absolutely pristine...

No! Actually, it's really disgusting. I'm a bit nervous about opening anything.

Let's open the drawer. Oh, look at that!

Lovely(!)

Right, OK, so clearly it's going to need a bit of work to sort this place out.

You see it's very run-down, almost dilapidated.

Still, let's try and see through all that and be positive. Oh, look!

Boiled sweet, anybody?

# We gotta get out of this place

# If it's the last thing we ever do... #

Eugh! The place is pretty dilapidated.

It's grotty, musty-smelling and probably hasn't been lived in for who knows how many years,

but this is what buying at auctions is all about.

You have to put on your property goggles and look beyond that surface layer of dirt.

There are definitely opportunities up here on the top floor.

You can make more of the dining room and the living room at the front is also a good size.

To check out the next floor, I'm heading down, not up.

It's a bit of a topsy-turvy, upside-down house.

You go down the stairs here, bedrooms on the middle floor, two main double ones,

then a very small room, which could be sort of a bedroom. It's got this door out on to the garden.

It's more like a study or whatever.

Then a bathroom here which is good and then we continue down.

# Upside down

# Boy, you turn me inside out

# And round and round... #

So already we have a two to three-bedroomed family home, albeit inverted,

with the bedrooms below the living accommodation.

I'm starting to get used to it now.

I can see there's great potential here, but the best is yet to come.

Down to the bottom floor and there's almost a bit of a kitchenette thing going on here

and my guess is this could almost have been a bedsit.

Again, it is in a right old state,

but the good news here is access out on to what looks like a reasonable garden.

I reckon this ground floor is where the money's at.

Refurbished as a modern, self-contained bedsit,

accessed from the back garden, it could be a great rent machine.

The garden is narrow, but long, and currently crowded out with dilapidated outbuildings.

Once cleared, there would be some useful space which could accommodate a couple of parking spaces.

All in all, some real flexibility.

The auctioneer who sold it has come to give his thoughts on the place.

The box itself is fairly sound because it's not very old in building terms.

As well as fairly major decoration works,

yeah, you are looking at checking the wiring,

probably a new central heating system,

definitely new kitchens, new bathrooms.

It's almost like a second fix on a new house.

You've got the basic structure, then you've got to fit it out. That's what you've got to do here.

So, once all that work is done, I wonder how much rent this could generate?

If the purchaser was an out-and-out residential lettings investor,

to maximise the building,

he'd be a bit daft not to look at the upper floors being a maisonette

that he'd rent out for... There's three bedrooms.

..perhaps £500 per calendar month?

And then the ground floor, the garden floor has a little self-contained studio.

He could probably get £300, £350 a calendar month for that as well.

And as a single house?

As a whole house, because it's so huge,

you could be looking at about £650 per calendar month.

What if the property was sold on after refurbishment,

remembering that guide price of 115,000?

Re-sale is quite interesting on this house

because if you happen to find somebody who values the ground floor

as an actual element of the property they want to buy,

they'd probably pay as much as 185,000 or thereabouts.

If the only marketplace was simply people who just wanted a bigger house than normal,

they probably would be looking at about £175,000.

Oh, well, whichever way you look at it, this house has problems.

But for a brave investor, there could be tempting potential here.

Well, it would be very easy to be put off by the state of this place,

but you've got to see through that if you're a developer to what this place could become.

I think it could make money. Let's see who fancied the opportunity when it went under the hammer.

63... Just a really versatile property.

I'm not going to go less than 100, so who'll say 100 for Lot 63?

Thank you, sir. 100 we've got.

102. 102.

104. 104.

106. 108.

110. 112.

114. 116.

118.

120. 121.

121. 122.

123 I've got. 125. 125.

125.

125. At 125 first time...

That's still a hot property.

At 125 second time. At 125...

Oh, 126. 126, fresh face.

126. 126...

At 126. One bid only.

He's in at 126.

Looking left and right, but at 126, are you sure and done?

Middle and sat has got it.

At 126 and out, sir...

Sir, yours, well done. Timely.

'With a bid of 126,000, the new owner is local carpenter turned developer Michael

'who has bought the house as a refurbishment project.

'It's his first go at that, so I met up with him to find out what he has planned

'for this quirky property.'

-Michael, congratulations.

-Thank you.

Why did you choose this property?

-It's quite a challenge.

-It's a challenge, but there's no other property around here like this one.

All right, it's a semi-detached, but other than that, there's nothing round here that's like it as such.

-It's got its own character.

-Why are you doing this? As a money-making venture?

Predominantly, yes. Hopefully, I'll finish it and sell it on at the end of it.

-But in time, gradually, hopefully build up a few more pounds, then we'll keep 'em and...

-OK, fantastic.

-Have you taken on anything like this before?

-No, this is my first one.

What kind of experience have you got in DIY?

-I'm a carpenter and I've done that for the last 30 years.

-Right.

-I just want to work for myself now.

-So you're going to be your own boss?

-In a way, yeah.

-Fabulous.

'You've got to admire Michael.

'For his very first development project, he's taken on a pretty big challenge.

'A one-bed flat would be easier than this three-floor property, but nothing ventured, nothing gained.'

So in terms of breaking down the work that's needed in here,

how much of what's needed will you be able to do?

I would say 90% of it myself, then obviously, I'll want plasterers in, electricians, plumbers.

What sort of money have you got set aside for doing this?

17,100 is what my figures worked out as,

so allowing a bit of contingency, about 15% - £20,000.

-20,000?

-Yeah.

-And that's to do what?

Basically, everything.

Every piece of woodwork in the house, the doors, skirtings,

re-plaster all the ceilings, the walls, new kitchens, two new bathrooms.

Just about everything you could think of and on the outside of the property, a lot of landscaping.

That could take three or four weeks.

'There looks to be a lot of land at the back of the property

'and there's also access from there for cars.

'But first, it's all got to be cleared.

'Back inside, has Michael given much thought to how he will tackle the project?'

So any plans to change the layout, especially down on the ground floor?

The ground floor has been let out as a bedsit over so many years or whatever,

so that's going to be changed into a master bedroom with an en-suite as such.

-Then the small third bedroom?

-I wouldn't class it as a bedroom.

It would be just a walk-through study area.

'Well, with the property in such a shabby state,

'the layout and room functions may all have to change.

'I just hope Michael's £20,000 budget will cover what needs to be done here.'

-Roughly how long do you think it's going to take?

-I've set myself 12 weeks.

-Wow!

But I've allowed for 16.

-Good luck with it all.

-Thank you.

-When does work start?

-Keys tomorrow, supposed to be, so it'll be straight in, straight away.

-Good. I look forward to seeing how you get on.

-Thank you.

Michael doesn't seem too fazed by the task ahead.

I think most people, though, would be a little bit daunted.

There is a lot to do to sort this place out, although he has got a reasonable budget.

Find out how he gets on turning this place around later in the show.

Just a 30-minute train journey from Central London takes me north-west of the capital

to an area whose name gets every football fan's pulse racing.

# It's coming home, it's coming Football's coming home... #

When you say "Wembley", you hear "stadium".

This big structure dominates the skyline and it's certainly what the area is famous for.

But it also benefits the local community in a more practical sense

with re-development of the local area taking place

and vastly improved transport links now geared up to handle thousands of sports fans.

Looks like Wembley could be a real crowd-pleaser.

The iconic twin towers of the old stadium may have gone,

but with the new dynamic arch, the area has lost none of its profile.

With over 150 million being spent on transport improvements,

there's no shortage of links in and out of Wembley.

This in turn has seen a property boom with new developments being snapped up,

so despite the economic downturn, this still looks like a blossoming market.

Bearing in mind you could be in Oxford Circus in the heart of the West End in just 30 minutes,

the guide price for this two-bedroomed flat doesn't sound too bad to me at £170,000.

Now, the block itself is late '90s and not unattractive with its own off-street parking space.

So all fine so far. Let's see if the inside makes quite such a good impression.

-# Most high

-Most high

-Most high

-Most high

-Most high

# Like an angel in the sky... #

It might not be oozing character, but it's a decent-looking block.

There are trees and hedges planted around, a children's play area just at the end of the building

and a security door lock system. There may be no lifts, but it's only four storeys high

and the two-bed flat I'm after is just on the second floor.

Well, what a nice treat!

I've got to say surprisingly light, spacious, really open.

Look at the size of this hallway! A lovely, big kitchen. Could do with a bit of a refurb. What's in here?

Actually, stay there. Come here.

This is probably one of the biggest cupboards I've ever been in.

You could turn this into a little bathroom. You would call this a room.

Huge amount of wasted space in there. Another bedroom there.

Really nice sized bathroom, but just needs a bit of love and attention.

And a really spacious bedroom. It's got laminate throughout this flat. It's really good.

It's spacious, much bigger than I'd expected. Can we see a view of Wembley Stadium?

No, just a big block of flats. But this is surprisingly good. I really like it.

What's a relief is that this isn't a pokey, two-bed flat

with rooms crammed in everywhere.

It's a generous size. There's a bathroom with a bath in it, not just a little shower room.

There are two decent-sized bedrooms.

Plus a well-proportioned kitchen.

But I think, undoubtedly, best of all is the lounge

with its welcome bonus of a balcony.

So it's not much outside space, but it's somewhere to sit on a nice evening.

The view is not exactly spectacular, but you're in a London suburb,

so what do you expect?

This balcony adds saleability and it's not to be sniffed at.

But how should I view this flat?

With great transport links, it could suit young professionals,

but I think it also ticks the "buy to let" box.

The flat may not be full of character features,

but it's crying out to be added to an investor's portfolio.

If you tidied the place up, you could get around £1,200 per month in rent.

That seems like a lot of money. Actually, it is.

If it was bought for the guide price, that is over an 8% yield

and in today's climate, that is a return that is hard to turn down.

One thing to be aware of, though,

is a whopping £1,000 a year service charge.

That's £90 a month you need to factor into the rental rate.

Even so, I still think this flat has a lot going for it, but what does the local estate agent think?

First impressions of the flat

are that it needs a little bit of work doing to it. Nothing too major.

All the rooms are in the right places, no rooms are off each other.

It has two double bedrooms and a spacious lounge.

It has a parking space with it and it's near all the shops, transport links and everything you could want.

There are not many boxes it doesn't tick, perhaps apart from a garden space,

but of course, it does have that balcony.

Having a balcony is a useful bonus.

It's not a great selling point because there's no view,

but it's nice to have a bit of open space with a purpose-built flat.

I already know you can get up to £1,200 per month in rent here,

but could you turn this place, guided at 170,000, around quickly

and make a profit on the re-sale market?

If this flat was to come on the market for sale,

I think currently it would be somewhere in the region of 175,000 to 180,000.

If it was refurbished to a clean, modern standard,

you would be looking in the region of 190,000 to 195,000.

So there could be money to be made if it was sold,

but to me, this has "rental" written all over it.

Wembley's improving, has improved already, in fact,

and property is all the more desirable because of it.

This flat may not be a natural looker, but it could charm your bank balance and make you a pretty penny.

Let's see who went for this at the auction.

Lot 46 is a two-bed, purpose-built flat,

obviously in a modern block, this one.

150 anywhere? 150.

151?

I might sell it on his first bid.

£150,000. Anyone else...?

151.

152.

153. 154.

155. 156.

157. 158.

-160.

-160. 161?

160 with you. 161?

Is there someone else coming in? No?

160 on my right. Anyone else?

It's going... It seems a good buy.

160 for the first time, second time,

third and last time, are you all done...? 161.

162?

It's his first bid. 162? 161 with you.

First time, second time, third and last time, are you all done...?

Sold, 161.

'Quite remarkably, for 9,000 below the guide price, at 161,000,

'the new owners are Egyptian-born business partners Ahmed and Mahir.

'Ahmed runs a building construction firm while Mahir is a property developer.

'Despite knowing each other for a while, this is their first joint venture.'

-Congratulations.

-Thank you very much.

It's not very often a property goes through under the guide price.

-You got this for 161,000.

-That's right.

And this one, I was not going to bid for it. I was going to bid for another four flats.

-How much research did you do into this flat?

-Nothing.

-Nothing?

-Exactly.

So when you saw this property for the first time, what did you think?

I tell you honest, we were a little bit disappointed for the condition of the flat.

It is a very lovely flat as a structure.

But as a condition, it's not that good.

But this flat has got tremendous bone structure.

-It's got lovely, wide, big open-plan rooms.

-Yeah, it's a good size, definitely.

'They've known each other for ten years and over that time,

'Ahmed's company has refurbished ten flats for Mahir.

'But this is their first truly joint venture where there's a 50/50 investment.'

What will you do now to give this flat the wow factor?

-Wall and ceiling and floor...

-Refurbished.

-All to be refurbished, yeah.

Do you mean just rip it all out and start again?

Yes, and kitchen. The bathroom as well.

So we'll try to make something beautiful in a short period.

How much money are you going to spend on this?

We are going to spend around £10,000.

It's the figure in our mind to put a new kitchen, a new bathroom suite

and carpet and decorations, skimming the wall and all this kind of thing.

Ahmed, how long will it take you to get this ready to sell?

-Around two weeks, maybe exceed to two and a half weeks.

-Two and a half weeks?!

-Yes.

-Who are you going to get in to do the work?

-I have my force, I have my people.

-Who are your force?

I have 60 people working for us,

so these people, I can use some of them to do the job.

'Two and a half weeks? That's pretty speedy, even with a gang of guys.

'I think Ahmed will have his work cut out co-ordinating all the tasks.

'Despite Mahir owning 35 properties himself,

'they have decided this venture is right for a quick turnaround,

'so it'll be in, out and sell. No hanging about with these two!'

How does the relationship work? How do you two guys get on day-to-day?

-Yes, fine.

-It's great.

-Yeah.

-We go through all the flats and we see what we're going to do.

-Yes.

And we decide what we're going to do, what type of kitchen we're going to do,

-what colour of tiles we're going to do. That's it.

-That's all.

Is there quite a big future for you two as a double act?

-Yes.

-Yeah.

-And he's happy that he has me.

And I'm happy because I'm buying, he's doing.

'With Ahmed managing his buildings and Mahir coaching from the sidelines,

'they form a formidable team. Let's hope they get the results they want.'

Ahmed and Mahir's gamble has paid off big-time.

Still, if it was me, I'd be hanging on to this place.

I'll be interested to see if they get what they want for it in this market.

Join me later to see this flat transformed.

'Coming up in Wootton Bassett, the colour scheme in this room might not be to everyone's taste.'

It's a nice sized space. It's a good start.

'We're going back for the second half in Wembley and the team is doing well.'

I think he's quite a good partner and he's very helpful.

'But first we return to Tavistock and what would a carpenter put into a refurbishment?'

New frames, new doors, new skirting.

'Time now to go back to Tavistock in Devon.

'Earlier in the programme, Michael, a local carpenter,

'had paid £126,000 for this derelict, three-storey property that was in a terrible state.

'It was his first development project, but he felt the time was right

'as he had taken redundancy from his previous job and was raring to go.'

What experience have you got in DIY?

I'm a carpenter anyway. I've done that for the last 30 years and I just want to work for myself now.

-So you're going to be your own boss?

-Yeah.

-Fabulous.

'It's now four months later and we met up again with Michael.

'Certainly, the grubby exterior has scrubbed up rather well.

'You still enter this topsy-turvy house on the top floor, but that shabby lounge has been transformed

'with new carpentry, plaster and a fire.

'At the back of the property on this top floor,

'the separate kitchen and dining rooms have been opened up into a terrific kitchen-diner.

'It's really light and so much better.

'It's unrecognisable from what we saw and smelt all those months ago.

'The whole place has been completely rewired

'and new central heating put in,

'but where on earth do you start with a property like this?'

The first job was to clear the site,

the back garden which was chock-a-block with caravans, sheds, greenhouses.

And gut the whole house completely.

We replaced all the flooring, re-plastered the walls, the ceilings, gas central heating.

'Being a chippy, Michael did the majority of the carpentry himself,

'but getting all the old stuff out must have been a nightmare.'

Pulling it out is fine. It's replacing it.

'The work is definitely to a high standard. Down one flight of stairs from the top floor,

'the two larger bedrooms have been totally refurbished with a neutral colour scheme

'and a neutral smell now, thank goodness!

'The smaller third bedroom under the stairs looks much more inviting.

'It still looks out on to the front of the house where a terraced garden has been created.'

This is the middle floor. It's all new doors, new frames,

new skirting, completely redecorated.

Into here which is probably the biggest change on this level -

a new bathroom suite, new flooring, a complete change from what was here.

'Apart from the woodwork, Michael has also tiled this main bathroom.

'Down another set of stairs is the lower floor where there is a huge change.

'That terrible, dirty kitchenette has been ripped out.

'New partition walls have been built, creating a hallway and the light now floods in.

'He's done an amazing job.'

We're on the ground floor which is probably the biggest transformation of the whole property.

On this side, we've put a partition in and a new en-suite which was just a little alcove with a toilet in.

As you come further in, there's a wardrobe with storage space.

And new ceilings, new walls, completely re-plastered and re-decorated.

'It's not a massive en-suite, but Michael's brother-in-law and a friend did the plumbing and tiling.

'Michael concentrated on the joinery, but why has he left it all untreated?'

Well, I've done that. There was a reason behind leaving all the timber bare.

If someone buys the property, they can either paint the timber

or they can varnish it. It's up to them what they do.

'Outside, the work's continued. The guttering has been replaced as have the fascia boards

'and new windows have gone in on the ground floor. Did Michael stick to his budget of £17,000-£20,000?'

I think I spent around the £32,000 altogether. That includes legal fees

and obviously I paid myself a wage in that figure for 16 weeks, which works out at about £6,000.

So I suppose budget-wise I'm about £3,000 over budget to what I initially thought.

'So about £23,000 on the work, but considering the tremendous transformation, he must be chuffed.

Yeah, very proud, really. The outcome has been brilliant.

When you finish the job, that's the best feeling you can have.

'Does he still plan to put it on the market?'

It's still to sell. I'd like to rent it out and keep it, but hopefully this generates some profit

and I'll go on to the next project.

'Time to find out how two local property experts rate

'Michael's first development project of this three-storey house.'

I think the layout of the property is the best it can be.

You approach at street level and it's made lovely use of the ground floor with the bed sitting room.

You've got a perfectly good house on this floor and the floor below

and a completely extra space which could be all manner of things waiting to be used on the ground floor.

The kitchen's lovely. It's really well fitted, very modern,

-with a nice dining area as well.

-You could probably get four cars alongside each other.

In this part of Tavistock, like most towns, parking is at a premium.

'That would be a big attraction for tenants as well, if Michael changed his mind and let the house.

'But would it generate much income?'

I would expect the rental to be £600-£650 per calendar month.

If you rent out the whole shebang, all three floors,

you're probably looking at... £625 per calendar month, maybe a smidgen more.

'A nice little earner. Is Michael tempted?'

Yeah, that sounds about right for this area, but I'm looking to sell it, so that don't come into it.

'Let's see if all his hard work has been worth it. Remember, Michael paid £126,000 at auction

'and has spent £32,000 refurbishing the house, including his salary and all legal fees.

'So £158,000 in total, but what's it worth now?'

I would market this property at £180,000.

I don't think it would fetch £200,000, but £185,000-£190,000, pretty good chance.

'£185,000 would generate around £27,000 gross profit

'before deducting the usual selling expenses.'

I was expecting a little bit more, about 195 or such, but I'm still happy with the valuations. Profit.

'Remember, Michael paid himself £6,000 for his time, so for his first project it's gone pretty well.

'What now?'

Hopefully, sell this one as soon as possible and find another property, at auction or whatever.

If I can find one or two more like this and make a bit more profit,

eventually I'll let properties out and that becomes a pension in the future.

We're now in picturesque Wiltshire in a town that's become inextricably linked with the military -

Wootton Bassett. RAF Lyneham has a large base here

so many families in the area have military connections.

It's just a short walk from the town centre to this road and our property.

It's very close to a very popular primary school,

so if you're looking to move for the children's sake, that might be a consideration.

It could also affect the resale value. What am I here to see?

Three-bedroomed mid-terrace at a guide price of £115,000. Let's take a look.

'From the outside, things look to be in pretty good order.

'New double-glazed windows, no cracks to report and a fair-sized front garden.'

So what have we got? Nice little entrance porch,

then through to the main part.

Again, nice entrance area here.

Stairs up to the bedrooms. It feels quite solid. My guess is it's an ex-local authority house.

Those generally have lots of storage space.

Big-sized living room area. It's tired, dated, check the gas fire.

Clearly it needs new carpets, but it's a nice-sized space. It's a good start.

'There's a door in the living room leading to the second reception room, which is spacious.

'Then a well-proportioned kitchen, but the key to making this work is to take out the adjoining wall,

'creating one big family space.'

So upstairs, as well as three bedrooms, bathroom and toilet, there's an interesting opportunity.

The loft is huge. The obvious thing is maybe a loft conversion,

but it might not be that obvious. It's going to cost around £30,000 to put a good loft conversion on.

The properties here have a ceiling price of round about £165,000.

So the financials might not stack up. In addition, nobody else has done a loft conversion in the road,

so a precedent has not been set. In other words, it might be difficult to get planning permission.

Good idea. Could be lots of trouble.

'Adding an extra room would make all the difference to a family,

'but for an investor the returns wouldn't necessarily justify it, so I'd just keep things as they are.

'Back down here, the bathroom needs a complete overhaul, but the bedrooms are all a good size.

'Take a look out the window and there's a huge garden that's perfect for a big family.

'It all looks too good to be true and whenever I say that you know there may be trouble ahead.

'The first issue - it used to be of "non-standard" construction,

'but work was done to make it more secure and mortgageable, but there are other issues.'

Now the property is ex-local authority and it does come with a few covenants,

the first of which is that you can't park your car outside the front. So forget about a dropped kerb.

There's also a covenant protecting air and light for neighbours.

So no double-storey extensions here. Just single-storey extensions like that one.

And, finally, you're not allowed to keep unusual pets.

So owners of boa constrictors, scorpions and pet whales need not apply. Sorry.

'That aside, the place is in good condition and just needs updating and renovating.

'With that guide price of £115,000, we asked a local estate agent for his thoughts on the property.'

Good size, plenty of space, really good gardens.

Being ex-local authority property, good plot, good room sizes.

Plenty of scope for extension. I would suggest a single-storey extension.

If you were to do a double, you wouldn't get your money back.

'That's important when developing. Never lose sight of the end value

'and don't forget the restrictions the covenant places on extensions.

'As always, check the legal pack before you buy. But what about being of non-standard construction?'

It was non-standard construction. It was a pre-fab, concrete.

Obviously work has been carried out on the property

whereby a layer of insulation has been added and a layer of bricks, which makes it mortgageable.

So it's open to a wider market.

'Let's talk figures. How does it rate for resale?'

Once renovated, I'd look to sell the property for approximately £150,000-£155,000.

With an extension, you'd be looking to sell the property for about £160,000, perhaps £165,000.

'What kind of rental income could it generate?'

I'd look to market this property for 550 per calendar month.

Well, covenants aside, this is a good property to go for.

All the major remedial work has been done and it's in good nick inside.

With the rental market in the area resurging, you've got your options covered. Let's see who fancied it.

Number 10. Start me at the guide, somebody. 115.

There we are. 115.

116? We'll go in ones, shall we? At £115,000.

16. 17. 18. 118 I've got. 19 if you will.

At £118,000. 119.

And 20? 120.

At £120,000. I'll take one.

At 120,000. OK, 121. 122, I've got it. 123 sat down.

124 to you. At 124. The bid is on the right-hand side at 124. 125 if you like?

124 and a half. OK, we'll do fives. 125, far right.

Against you, sat down again. At £125,000.

The lady on the far right at 125. Anybody else for 500? Otherwise I'm going to sell it at 125 first time,

125 second time, 125, third and last time.

It's yours, which is Number 3. Thank you very much.

'The happy buyer there was Sue. She and her husband Gary clinched the deal at £125,000,

'£10,000 over the guide price.

'Gary serves in the RAF and Sue used to be a chef, also in the RAF,

'but now looks after their two children. I met her at the property to hear about their plans.'

-Sue, lovely to meet you.

-Hello.

-Tell me why you wanted the house.

We're looking for a place to come when my husband leaves the Air Force.

And the children have had to move several times recently.

They've started senior school and need somewhere steady.

OK, how much moving around have your children had to do?

They've moved to Cyprus about three years ago

and we came back just under a year ago. That's been their main moves. Those before they can't remember.

-Must be a bit unsettling.

-It has been. The last twice has.

This time it's taken probably six months to settle and make friends.

-So this is your base from now on?

-It will be until they finish school.

'The family have a home in Cornwall which they will return to,

'but for now bringing stability to their children is the main aim.

'It looks like Daniel, aged 13, and Frances, 11, are already settled in.

'Sue likes the area and feels it has a real community spirit. She thinks the £125,000 they paid for it

-'could be a real bargain.'

-We were pleased with what we paid. I did a lot of research

and spent a lot of time on it. My friends and family were worried that we wouldn't get it

and I'd put my heart and soul into it, but I was very determined that we wouldn't go over our budget.

-You just got it on the stamp duty threshold. Was that deliberate?

-We were lucky it happened like that.

I do believe that had it landed...

had the sequence come a different way, we'd be paying stamp duty.

'So Lady Luck was shining on Sue that day, but she also had more good fortune after the auction.'

Luckily, the legal pack was out in good time and I read through it,

but it was watching Homes Under The Hammer where you had somebody who hadn't realised their building was

non-standard construction. And I was like, "Oh! I'm sure they mentioned something!"

I was on the phone, did some digging and found it was non-standard,

but there was a certificate available and that was tracked down.

-So we helped you out?

-You certainly did!

-What are you going to do to get it how you want it?

-New plumbing, new electrics, strip the walls, repaint.

Then, depending on what happens with my husband will decide whether we rent it out for a short time

or whether we move in.

If we move in, we'll extend the house, making it more to how we like to live.

'Sue has a budget of £15,000-£20,000 for the straightforward renovation,

'which she expects to take up to about three months,

'but if they decide to move in, extending will take another 10 grand

'and take a further three months. So their future is very undecided, but then they're used to that.'

As a military family, you're always waiting for the next decision that somebody makes

as to where they want you and you roll with the punches.

-So your fate is in somebody else's hands.

-Always!

-That must be a bit strange.

It is. It's quite exciting when you start out and I was always looking forward two years

and wondering where we'd be.

When it starts to impact on other people, you have children, and it impacts on their lives,

then although you know that you've married into the Air Force or are in it and that involves moving,

you start to realise it does affect other people and you have to reassess

whether you stay together as a family, whether you commute, and those decisions.

'Being on the move so much must have been stressful for Sue and her family, but I reckon

'they've found somewhere they can live very happily for some time.'

It's a fantastic family house. This garden we're in is huge.

The rabbit and dog will be happy!

The dog is a Collie, so she has plenty of room to run around here.

-Are you aware about the covenants about pets?

-Yes, I believe I can't keep any unusual pets.

-I'm not sure what is classed as unusual.

-The rabbit and Collie should be fine.

-I think so, yes.

-Well, congratulations. Good luck with it all.

-Thank you.

It looks like the children have got some stability, the dog and the rabbit have got a nice garden.

In terms of whether or not they rent or live in this place, that's down to somebody else,

but I'm sure Sue will enjoy her first experience of developing her own property. Find out more later.

Transforming a property from a worn-out shell into a home can be rewarding and profitable.

But did everything go to plan for our buyers today? Let's find out.

For many football fans and players, the name Wembley represents a place of hopes and dreams,

somewhere they aspire to, the pinnacle of success.

As the infrastructure around the new stadium improves, it's becoming a desirable place to live

with new developments appearing.

So when a '90s-built, two-bedroom flat came up for auction, developer Mahir and builder Ahmed

thought that at £161,000 it was perfect for their first joint venture.

With over 10 years' experience in the property game, they were looking to score a quick success.

-Ahmed, how long will it take you to get this ready to sell?

-Around two weeks.

-Maybe two and a half weeks.

-Two and a half weeks?!

-Yes.

'So this was to be fast-tracked, using Ahmed's men to do the work and Mahir's property developing skills.

'Could they really turn it around that fast? Just over five weeks later, we're back to find out.

'And yes, they've achieved their goal. The flat has been refurbished throughout,

'with new decor and flooring,

'a bathroom suite,

'and a kitchen.'

The kitchen was in very bad condition, all the units broken.

And even the cooker was not good.

So I decided, me and Mahir, to demolish all of the kitchen and buy a new one.

I'm very happy with the kitchen now, with the design and even the quality of the kitchen as well.

'So it's all looking great. What about that really tight timescale? Did they hit their target?'

We've actually done it really quick because Ahmed is busy with another project, you know.

I was planning to do the work in two weeks and, in fact, I've done it in two weeks.

'Clearly with Ahmed's project managing skills and Mahir's developing expertise,

'they're perfectly matched. They've scored a winner with this Wembley flat.'

I always rely on him to do this job because we are a team together.

He's done for me a few jobs before.

I think he's quite a good partner and he's very helpful as well.

We have the same mentality together when we buy something.

And we don't have any problems, we don't feel any problem. He's easygoing with me.

'But great teamwork and good working partnerships count for nothing in the property business

-'if you don't get your finances right.'

-I was thinking about spending around £15,000,

but in fact I spent around £13,000-£14,000.

'We've invited two local estate agents to look around the property

'to see if the effort and money spent has been worthwhile.

'A £14,000 outlay on top of their £161,000 purchase price takes the total

'to £175,000. But has the speed of the refurbishment impacted on the quality?'

They've done a very good job.

It's nice and bright. They've really put a lot of effort into it

and made it very clean, tidy and ready for the next person.

It's a nice, clean, tidy flat.

It's a modern development, which is appealing for a lot of people

who don't want to do maintenance. It's ready to move into. They're all plusses.

The only negatives I can see, I'd have probably carried the laminate flooring all the way through.

A lot of people feel it's cleaner, tidier and more hygienic.

'Ahmed and Mahir are keen to sell the flat straight on. Would rental valuations make them think again?'

I would think you could rent this out for £1,000 per month.

I would say, on rental, very strong demand at the moment.

A nice finish like this, ready to move into, I'd say £950 per calendar month.

Very good, but we're planning to sell it to go for another project.

'OK, so that's clear. They definitely want to sell,

'but will they get much return on their £175,000 investment in the current market?'

I would probably put this on the market for £199,950,

and would hope to achieve somewhere within £190,000-£195,000.

I would be able to sell this flat if it came onto the market for £190,000-£195,000.

-Great. Wow!

-Very good.

-Yes, this is a very good start.

-Isn't it?

-Very good.

-A good start.

'If they do get those prices and make £15,000-£20,000 profit,

'you could say they scored a winner with this flat and at Wembley that's what everyone hopes to achieve.'

Earlier in the programme, Sue and Gary bought this mid-terrace in Wootton Bassett for £125,000.

Sue is a former chef with the RAF and her husband, Gary, still serves with the Air Force.

They hope to make it their family home when Gary leaves the RAF,

but their plans were still up in the air.

Depending on what happens in the next couple of months with my husband will decide if we rent it or move in.

If we move in, we'll extend it.

'Now it's just under three months later and we've flown back to meet up with Sue, Gary

'and Frances and Daniel.

'There's a new front door and, judging by the refurbishment inside,

'this purchase was no flight of fancy.

'Just like an ace pilot, the living room has now been decorated,

'while at the back of the house the dining room and kitchen both remain as separate rooms.

'Upstairs, the new bathroom complements the bedrooms,

'but as Gary now admits, he wasn't taken with the house to start with.'

Initially when we saw it, I was like, "No," but once I visited it and looked through the grime,

you could see we could work with it. We've virtually gutted the place and rebuilt it.

We've completely replumbed, electrics, stripped the walls, Gary spent weeks sanding it.

It's been a lot of hard work, more so on Sue's part. I just dip in and out. I've got other duties.

But, yeah, it's been long days.

'The former local authority house is a sturdily-built property.

'In future, Sue and Gary are contemplating adding an extension within the permitted development,

'but the for the time being the kitchen has been refurbished with some features missing!'

Over here was a larder. I had great fun smashing this up.

I didn't want to go for a kitchen/diner because my family's too messy

and I like to shut the door on it. Also, the furniture we've acquired

the lounge and the dining room all match together.

I didn't want to leave two spaces for a dishwasher and washing machine, so in the shed we put the plumbing

for a washing machine out there.

'Sensibly, Sue's plumber and her electrician have laid the necessary pipes and cables in the property

'for any future extension. All the family have been pitching in.'

We did little bits around the house. Bits and bobs. It was quite fun.

I did a bit of the garden. I had to take out the roots of the weeds. I was there for hours.

'Well, Frances' and Daniel's efforts really paid off.

'The work's taken just under three months and the three bedrooms are now ready to be furnished.'

There was a cupboard that sat here and really cut down the space.

We've increased the slope on the stairwell,

taken out this cupboard, and the plan is to put in a cabin bed, roughly at bunk bed level,

and Daniel, once he gets into it, will be more than happy - even though it's the smallest room!

Unfortunately, I get the small room because I got the big room in the house we're in now,

so it's her turn.

'Remember, they had a budget of £15,000-£20,000 to refurbish the house.

'There was a further £10,000 pencilled in for the extension,

'so will they move in straight away and how much have they spent?'

I think we've spent £17,500 and that's with £3,000 costs.

The costs were more than you would expect because there was a 1% extra

to pay the seller's legal fees, but I knew that when we did the calculations.

'It was very tempting to move in, but it makes sense for us to stick to renting out

'until Gary's out the Air Force and then move in.'

Time now to hear what two local estate agents think of it and its rental potential.

Clearly, it's a good-sized family home. They've spent a lot of time and effort modernising it.

-There's plenty of space, flexible.

-I was very pleasantly surprised.

I wasn't expecting this today. Lovely fixtures and fittings.

Bathroom is particularly nice.

The hard work's been done. Someone could come in now, personalise it.

There's a good canvas here.

'Let's talk figures. What income could they achieve if they found tenants?'

Rental-wise, you'd be looking around £650 per calendar month.

I would expect this property to achieve somewhere in the region of £650 per calendar month.

'Are they happy with that income in the short term, until they move in themselves?'

That's the top end of what we were expecting. When we first started, it was with the idea of £530,

but researching says we can get a lot more.

'What's the value of the house now after all that hard work?

'They paid £125,000 at the auction and they've spent £17,500,

'making a total of £142,500.'

I would value this property at approximately £145,000, to achieve somewhere around 140.

I think you'd be looking at around £160,000. It's a premium property.

We'd like to get that premium price.

'Well, £160,000 would produce a gross profit of £17,500,

'while the lower valuation of £145,000 would generate £2,500 gross profit.'

-Wow.

-Quite a difference.

I'm really surprised at 160. Very pleased.

145 is a little bit less than I was expecting.

'Sue's worked very hard here and the family are delighted.'

I'm really proud of my mum for doing this. It was such a dump and she's turned it into something really nice.

'Would she now be tempted to tackle another refurbishment?'

I would be tempted to do it again if I could raise the funding

or I'd happily project manage for somebody else. I've thoroughly enjoyed it.

'When Gary's left the RAF, would he embark on another? If so, what advice would he give?'

I'd probably have a more active part next time. I've had very little input, really. I'm the labourer.

-I listen to the boss.

-Have a good wife!

'This may be Sue and Gary's first renovation, but I reckon this RAF couple have hit the heights here.'

Whether a seasoned professional or a novice, there are always things to learn about buying property.

-So join us next time for some more auction action.

-We'll see you then.

-Goodbye.

-Goodbye.

Subtitles by Subtext for Red Bee Media Ltd - 2011

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