Episode 77 Homes Under the Hammer

-Hello and welcome.

-Property auctions used to be for builders

and developers, but not any more.

All kinds of people are going to auction to find what they're looking for.

Yes, and even in these tough times, they are still finding bargains under the hammer.

Even for experienced buyers, auctions can be nerve-racking and exciting places.

-But it's very important not to get carried away.

-So did today's buyers keep a cool head?

Did they get some great deals? Here's what they bid for.

'This village in Wiltshire is picturesque but far from peaceful.'

We are terribly close to the runway.

'I've got grand plans to knock down walls and open the space in this Notting Hill flat.'

I think that would really give this flat a bit of oomph.

'And in this terrace near Telford, I've uncovered some hidden features.'

Oh, joy or joys, even more of these original floorboards.

'All these properties have been sold at auction.

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

'Welcome to Wiltshire, where I'm in the quaint country village of Bradenstoke.'

At first glance, Bradenstoke may look to be a nice, quiet Wiltshire village,

but oh, no, it isn't, because it adjoins RAF Lyneham,

one of the busiest operational air bases in the UK.

The good news is that there's lots of RAF personnel looking to rent places,

so this property that was up for auction could be ideal.

Four bedrooms and a guide price of £175,000. Let's take a look.

'The priority here would be to install double glazing.

'Noisy neighbours can be a nuisance,

'but there's not much chance of the RAF keeping their noise down.'

Built in the 1970s, and it feels like that straight away.

Apparently, the same family lived in this house since it was built.

You've got a little entrance area there, very practical.

This, I suppose, is your dining room.

Er, yeah, lino floor tiles. Love it.

'You might say this property has a chequered past.'

# Check, check, check, check, check it out

# What, what, what, what's it all about?

# Check, check, check, check, check it out

'The kitchen units are dated and ready for renewal,

'as is the boiler. I do love the size, though.

'The kitchen is huge.'

Straight away, I'm thinking this is a very practical and big house.

I mean, it goes on back through here to the living room.

And, again, loads of space. Big fireplace there.

Do you like that or not? I don't know. It's a feature.

You've got patio doors out onto a little patio area there.

And, you know, you can't complain about the space, can you?

# I never complain

# It doesn't get you anywhere

'The fireplace has been built from stone and slate from the cottage which used to be on the site.

'Let's take a look up top.'

So, upstairs, a reasonable size family bathroom and then four really good size bedrooms.

It is a perfect family home.

In terms of decoration, well, it could do with being spruced up,

but I'm not seeing anything that scared me too much.

Apart from the fact that we are terribly close to the runway.

# I wish that I could fly

# Up to the sky, so very high

'The four big bedrooms are certainly colourful,

'but redecoration rather than renovation is what this place needs.

'The large reception rooms, family-sized kitchen,

'plus that handy porch,

'perfect for throwing off muddy boots and rain-soaked jackets after a day out in the countryside,

'mean this property has the potential to be an ideal family home.'

# Oh, oh, oh, yeah

So, it's all looking good so far. And, at the front of the property,

a nice, big garden.

Problem is, it's not yours. That's been sold off separately, and it gets worse,

because planning permission has been granted for the building of a house there.

How horrible is that? Right overlooking your property. Not only the construction and mess and noise,

when it's built, they're overlooking your property.

Another issue, this driveway is a shared access,

so lots of issues with that.

Mm, bit of a negative, I'm afraid.

'The downsides of this house are the building plot and the noise from the RAF base.

'On the up side are the spacious rooms and the fact that no major structural work is needed.

'I invited a local estate agent to let fly with his opinions.'

RAF Lyneham is on the doorstep.

Obviously, the main cons are aircraft noise,

which does have a detrimental effect. It narrows down your market.

Chances are, if people are looking in Bradenstoke as an area,

they are OK with the air noise and with the air base being in such close proximity.

The options with regards to the garden

would be to knock the double garage down at the side and then re-turf the area,

seed the area, then you'd have a decent family-size garden.

'The auction guide price for this property was £175,000.

'After a minimal renovation has been done,

'what could the sale value of this place be?'

I would expect to market this property at £250,000,

that's taking into account the stamp-duty threshold.

'And rental income?'

The property is an ideal rental property.

We get a lot of families moving to Bradenstoke that are affiliated with the air base.

I would expect to rent this property for £750 per calendar month.

So, two main issues with this property.

One, the noisy neighbour on one side, RAF Lyneham,

and two, the potential new noisy neighbour

when they've developed the building plot. That really is in your face.

However, it is a lot of house for the money and it would make a great family home.

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

180 somebody, please. Start me.

175. We'll start at the guide price of 175. And 5, shall we?

180 now. I'll take 2. At £180,000.

2 please may I see? 182.

At 182. 5. 185, OK. Now 7 may I see?

187, OK. 190.

At £187,000. 190, sir?

190, OK. Over there at £190,000.

Dragging it out. 192, OK.

4 to you, sir? Yes, 194. At £194,000, the bid is on the far side at 194.

It's going to be sold. At £194,000 for the first time.

£194,000 on the right for the second time.

And £194,000 over there, third and last time.

'The successful bid of £194,000 came from Laura, an accountant,

'and her husband Stephen, who's a finance manager.

'And leading his mum up the garden path is their two-year-old son, Isaac.

'Laura has also brought her sister, Claire, to look around their new acquisition.'

-Laura, Claire, nice to meet you. Congratulations.

-Thank you.

-Why did you want to buy the place?

-It's just a bigger house for the family.

-So it's for you, then.

-Yes, it's going to be our family home.

-Why here as opposed to anywhere else?

It's next door to where my mum and dad lived

when they were first married and when I was a baby, which is why we came to look at this house.

We saw it advertised and thought, out of interest, we'd come and have a look, came in and loved it.

-What did you think when you walked in?

-Overwhelmed by the space compared to our house.

And then just the potential, what we can do.

Right. Claire, what did you think when you walked in?

It's just massive. It's fantastic. Compared to what you've got at the moment,

for the family, it's just a great family house.

-Right. Tell me about the family.

-I've got two boys aged five and two.

-Chaos.

-Yes! Lots of toys.

So, yeah, just tripping over everything in our current house.

What kind of house have you got at the moment?

It's just a small three-bed end-terrace.

-But our youngest, his bedroom is smaller than the porch here.

-Smaller than the porch?

-Yes.

THEY LAUGH So even walking in the porch, it's like, "Wow!"

-So have they seen it yet?

-Yes. They're very excited.

-Are they? What are their names?

-Harry and Isaac.

-Right.

-What do they think?

-They love it. Looking forward to being able to move in

and have a bedroom that you can put more than one toy in. HE LAUGHS

So, you obviously know this area. We're very close to RAF Lyneham. You can hear the planes at the moment.

-Does that concern you?

-No. We've lived in this area all our lives,

-so we don't even really notice the planes.

-Right.

-You don't notice it any more.

-No.

-You just don't hear it?

-No.

-We're pretty much oblivious to it.

'Laura's not concerned about the planes overhead,

'but as she's an accountant, is she worried about her overheads going sky high?'

What kind of budget have you set aside for the work?

Erm, I don't know the overall budget, cos at the moment, we've only looked into the kitchen,

so probably about £5,000 for the kitchen.

I'm not sure about the bathrooms yet, so I don't know what the top whack is.

-We'll worry about it when we have to pay for it.

-Right.

-Slightly interesting approach.

-Vague! THEY LAUGH

'Considering Laura's an accountant,

'it's surprising that her budget is vague.

'But they didn't buy this property as an investment, it's to be their new home.

'Laura plans to work on the house while all the family live here.'

So, talk me through, project by project, what you're going to do to the place. What's the plan?

Well, our first major job will be the kitchen.

Completely take it out, cos it's so lovely.

And then we're probably going to knock the archway out

so the kitchen and dining room are more open,

just so it's a big, family, light area.

And then, eventually, section off part of the garage to be a play room.

-Oh, really? You need more space?

-THEY LAUGH

-Another room for the kids?

-Yeah. For all the toys.

'It appears that young Isaac has already chosen his new bedroom,

'and he's tickled pink about it.'

Oh, wow!

'What does his mum, Laura, think about the proposed building work outside?'

-Are you aware of the building plot?

-Yeah, we did a lot of research into that

before we decided to go for the house and looked at all the plans

and came back here with the plans so we knew what was going to be where.

-We decided that our view, at the moment, is houses, another one won't make much difference.

-Not an issue.

-Not an issue at all.

-Congratulations, I'm delighted for you.

-Thank you.

We look forward to seeing how you get on.

Well, there's no doubt this will make a fantastic home for Laura and her family.

However, doing up a place while you live in it,

especially with young children, is always going to be a challenge.

And there is the uncertainty of that building plot and how that's going to turn out.

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

'I'm in the fashionable area of Notting Hill in West London.

'Famed for its Victorian architecture and annual carnival,

'it's now an up-market residential area.'

Well, I have just had a tour round this part of London.

Sadly, I didn't bump into Hugh Grant, but it's a great area,

and transport links couldn't be better here.

Now, the last flat to sell on that road

went for a staggering £465,000.

The flat I'm here to see today had a guide of just £300,000!

Now, I know what you're thinking. You're imagining a vast, palatial apartment

with all the impressive trimmings. Well, no.

It's a one-bedroom flat with no outside space.

Let's go inside and see what you get for all that money.

'Well, this is West London, and property doesn't come cheap here.

'However, this Victorian terraced house is absolutely stunning and the building looks well maintained.

'It's a little difficult to get a look at the exterior of the flat I'm here to see, though,

'as it's on the third floor.'

Whatever this flat is like, I am so blinded by the fact

I've had to walk up so many flights of stairs.

Well, good job it's worth it because, straight away, it's quite light,

you've got a lovely big room there with a nice feature window, little landing space with a bathroom there

and a really good size kitchen

with a nice window, again. It's all painted white, it's bright.

Let's have a look through here, give me time to get my breath back.

# Blinded by the light

# Revved up like a Deuce, another runner in the night

'There's lots of space up here, with the bedroom at the back

'and the kitchen and living room at the front. There are no windows in the bathroom,

'but the suite looks new and may not need changing.

'Not bad so far. But I think it could be better.'

What we have here is a beautiful feature window, but there's another one next door.

What about taking this wall out, it's only a stud partition,

and really opening this space up?

One big, huge, impressive room to walk into when you've walked up three flights of stairs.

You know, this could be a big wow factor. You could put the kitchen in here,

there's enough room for a dining table, a nice, squashy sofa. You're in Notting Hill!

I think that would really give this flat the bit of oomph that it lacks at the moment.

'The communal stairway that leads to the flat is currently being used for storage,

'so the new owner will want to ensure that it's kept tidy in the future.

'So, for a guide price of £300,000,

'was this one-bedroom flat a good investment?

'I asked a local estate agent to put me in the picture.'

It's a lovely flat and there's a lot of benefits with it.

Overall, it's a big space. It's nice and deep.

You've got high ceilings, which is quite rare for this floor.

The communal areas you would look to smarten up. You could speak to the freeholder,

see if you can get an agreement to repaint and re-carpet at his cost,

because if you're going for a full price in the market, first impressions count.

I would've thought, to really maximise the value and get the most from the market,

you'd really need to be spending in the region of £30,000.

'Once refurbished, how much could this flat fetch on the rental market?'

The rental market's strong at the moment. This apartment coming onto the market,

refurbished to a good standard, you'd expect it to achieve £1,950 a month.

'And if sold on?'

I think, in today's market, if the flat gets refurbished well,

you'd be looking to bring it to the market somewhere in the region of £425,000

with a view to achieving maybe £410,000, £415,000.

Right location, great transport links and an attractive flat.

This auction lot has it all. But it came at a price.

Let's find out who had the funds as we go to auction.

Great location. Very fashionable area.

I don't know, 300?

300. 301. 302.

305. 310.

315.

320. 321.

325. 326.

327. 330.

331. 332.

335. 336.

340.

Oh, someone else. 341. Someone else has come in.

341. 342.

343. 344.

345. 346.

347. 348. 349.

350. 351.

352. 353.

354. 355.

356. 357. 358.

359. 360.

361. 362.

One more go. 363.

362, first time.

Second time. Third and last time, are we all done?

Sold, 362.

'With their bid of £362,000,

'the new owners are restaurateurs-cum-developers Simon and Joy.

'I met them back at the flat to talk over their plans.'

Simon and Joy, congratulations.

I love this part of Notting Hill. I think you've got a great buy here.

Why did you want to buy this property?

Because it's Notting Hill, it's a lovely area,

and we were lucky enough to get it at a reasonable price.

It's a beautiful building.

Unfortunately, there aren't many features left in here.

But it's how big it is for a one-bedroom flat.

The sash windows, the tall ceilings. Everyone's dream, I suppose.

I think the good thing about this flat is the bones of it are fantastic.

You've got the space, the high ceilings. You can put the features back.

You could put some beautiful cornicing here, some ceiling roses. It would look amazing.

So what are you planning on doing to this property to make it even better?

Because of the area and because of the value of the property,

we're looking to do it to quite a high spec.

So, first of all, we're going to make the kitchen into another bedroom, so it's a two-bedroom flat.

-OK.

-We've done our research, and I think that's the best way forward to secure the price we want.

'So Joy and Simon are converting this flat into a two-bedroom property

'and Joy seems confident that this will give them a higher sale value.'

Have you researched that you will definitely get more money if you market this as a two-bedroom flat?

We've researched that, as a one-bedroom flat,

we could probably hope to achieve about 430, between 430 and 440.

But as a two-bedroom, it would probably reach the bottom end of the two-bedrooms, cos it's quite small,

but we would hope to reach about 450.

OK. So it's definitely worth it financially just to squeeze the extra bedroom in.

The only problem with that, in my mind, is that second bedroom

will be a little bit of an odd space because you'll have to put the bed

-under the window, won't you?

-Yes.

It's still big enough for a double. It's a good size double bedroom still,

even though a bit of the bed will be under the window.

-OK. So where's the kitchen going to go?

-We're moving it into the lounge.

We're going to make a U-shaped kitchen from probably about a third of the space in there,

so it still leaves a fair bit of space for people to relax.

-And, hopefully, that'll look nice.

-What sort of kitchen is it going to be?

We're probably going to go for a high-gloss white, stainless-steel handles,

possibly a wooden worktop.

-We'll put a range oven in there on the back wall.

-A big range oven?

It's just under a metre, so it does fit.

-Hm.

-If you're putting a kitchen into a lounge, then you do want to make it the centre of attention,

you want to make it look good. You don't want a horrible, free-standing...

Do you think the person buying this flat is going to be doing an awful lot of cooking?

Erm, we're in a recession now, so people spend a bit more time at home

so maybe they'll spend more time cooking at home.

That's you, the chef! Mr Restaurant! That'll be exactly what you're doing!

That's very true.

'I see his point. But my fear is they might be squeezing too much

'into a small space to maximise profit.

'I do hope it works.'

So what's your budget to spend here?

Erm, we've done the figures. £15,000.

-OK.

-Which is quite a substantial budget.

However, we want to do everything from stainless-steel light switches to...every last detail.

You thinking of changing the bathroom?

No. The bathroom, when we looked at the flat, it had just been recently redone,

so I don't really see a necessity to redo the bathroom.

I think it's unnecessary cost.

We will re-tile in there and cosmetically change it, maybe change the colour in there,

but that's about all.

So are your plans to sell or to rent?

Our initial plan is to sell.

If we don't sell it quickly, we might reconsider. We'd like to sell.

Well, guys, good luck. It's going to be really exciting seeing what you do here.

It's been lovely meeting you today. Well done.

-Thank you.

-Thank you.

Will Simon and Joy go for my idea or will they turn this into a two-bedroom flat

and try and maximise their profits?

You know, a modest budget of £15,000 may not be enough to achieve a top resale price,

forcing them to rent this property out.

You can find out how they both get on with this later on in the programme.

'Coming up, this terraced house near Telford has a surprise in store out back.'

Quite unusual for a terrace to have such a large garden. Lovely.

'Did chef Simon and wife Joy bite off more than they could chew

'with this renovation in Notting Hill?'

Every now and again, you'll have a sleepless night. You see the bank balance go down.

'But first, we return to Wiltshire to see if Laura's family like their big, new home.'

It's great for the family.

Just having room, it's nice.

'We're back in the village of Bradenstoke.

'It's certainly picturesque, but far from peaceful.

'RAF Lyneham is a stone's throw to the south.

'I viewed this four-bedroom house in the village.

'It was built in the 1970s on the site of an old cottage.

'The property had been well maintained, but its 1970s interior design had never been updated.

'The living room had an imposing stone fireplace

'built using materials salvaged from the original cottage.

'Laura and Stephen had bought the place to be a family home for themselves

'and their two sons.

'I'd met Laura, along with her youngest son, Isaac, and her sister, Claire.

'On her first viewing, Laura had been struck with the size of the rooms.'

We saw it advertised and thought, out of interest, we'd have a look, came in and loved it.

-Our youngest, his bedroom is smaller than the porch here.

-Smaller than the porch?

-Yes.

So even walking in the porch, it's like, "Wow!"

'Two-year-old Isaac was quick to claim his bedroom.'

Oh, wow!

'We've returned after six months

'to see if the renovation has taken flight or if it's all up in the air,

'and whether the family have settled into their new home.'

# Happy home

# Let's turn a house into a happy home

'In fact, Laura, husband Stephen, son Harry and little brother Isaac

'all moved in soon after our first visit.

'Top of Laura's to-do list was the kitchen.'

# Happy home

# Let's turn a house into a happy home

# Happy home

'The seventies look has been banished to be replaced by contemporary cool.

'It's certainly high-quality work.'

-We did quite a lot of it ourselves. Well, I project-managed.

-She project-managed.

Luckily, we've got friends and family that are good at kitchen-fitting, plumbing, tiling.

We kind of invited my brother-in-law down for the weekend and he's a carpenter,

so he and I put the kitchen in whilst we got rid of the children for the day.

All the decorating, I've done, inside and most of the out.

We were lucky. We know people who've helped us out, so about 75 percent we've done ourselves.

'They've opened up the archway that separated the dining area from the kitchen,

'creating an open-plan family living area.

'What was it like living in the house while the work's been going on?'

Challenging at times.

-Just trying to make do with what...

-Day care helps.

-Yeah.

Trying to cope with the rubbish kitchen that we had

and then not having a bathroom for a week,

as you can imagine, with children, was fun.

'The living room has been re-carpeted and redecorated.

'The couple decided to keep the feature fireplace,

'giving the property a link with its country-cottage past.

'Upstairs, the bathroom was given a modern makeover.

'The bedrooms have been redecorated.

'Laura and Stephen chose warm, cosy colours.

'Five-year-old Harry picked blue.

'And Isaac picked red.

'So I guess he changed his mind about the pink room.

'That is now a study for Laura and Stephen.

'So, how are the family enjoying their new home?'

It's great for the family.

The space is amazing. The kids can play in their rooms, have their toys out.

It's made a big difference to Isaac, cos he didn't really have a room, he just had a bed and that was it.

Harry's always had a bit of space but, obviously, Isaac's flourished because of it.

'While Isaac enjoys more space to play in,

'could there be trouble ahead with the building plot out the front?'

We have met the builders. They seem very pleasant. They've been very helpful,

shown us all the plans, told us what's happening at any point,

so we haven't got any problems at the moment and just wait to see how the planning permission goes.

It's not a concern to us, really.

'Laura and Stephen paid £194,000 for the house

'and have spent £16,000 on the renovations so far,

'totalling £210,000.

'But this is not so much a financial investment as one in the happiness of their family.

'We invited two local property experts to give us their opinions.'

I think it's a really great property.

I do like the location of where it is.

I think what they've done to it, the decor, is very nice.

The four double bedrooms are good, as well.

The current owners have done a great job with the kitchen, fantastic.

Bathroom, exactly what people are after.

P-shaped shower-baths and big raindrop shower-heads.

However, they've still got a considerable way to go to bring the whole house up to that standard.

You've still got the old brick-built fireplace in the lounge,

that will need to be stripped out.

'Due to the proximity of the nearby air force base,

'properties in this area always rent well.

'The estate agents believe Laura and Stephen could achieve around £800 per calendar month.

'The couple have no plans to rent out or sell their home,

'but have their improvements added value here?'

It's very hard to value a property like this,

A, because of what it is, and B, because of where it is. There's not a lot that comes up here.

But I think anything between £260,000 and £270,000 would be suitable for the property.

Stamp duty threshold is £250,000 to go to the three percent amount

and, having had a look at the property,

even with all that work done, I still feel it would struggle to breach that £250,000 barrier.

'Quite a difference. But that means the couple could turn a pre-tax profit

'of between £40,000 and £60,000.

'Could those figures tempt them to sell up and move on?'

-No.

-No, no, no.

-No, we bought this as our long-term house, so we're staying put.

'I'm in the Shropshire countryside, to the south of Telford.

'The area has a strong industrial history,

'but is now part of the Birmingham commuter belt.'

The area is called Aqueduct, after a small example nearby.

Let's hope the waters run smoothly on the property I'm here to see.

From the outside, it doesn't disappoint.

Two-bedroom cottage. And that is charming.

Even better, it had a guide price of just £55,000.

'This little row of cottages looks perfect in the sunshine.

'The lot was guided at just £55,000

'but I reckon it's priceless in terms of rural romance.

'Let's hope it's the same inside.'

Great sense of anticipation. Will the interior match the cutesy-wutesy exterior? Good start!

Although, that's a bit strange. Why is there a window

in between the living room and the dining room? A bit odd.

But in there, lots of character. We've got the old beam there. I'd like to see a nicer fireplace.

It's not a bad size space. There's central heating, which is good.

Through to the dining room area. Straight away, I'm thinking get rid of this wall, open this all up.

I don't know what that wall does. Nothing apart from maybe a bit of support.

Stick an RSJ across the top there and open it out.

But, all in all, it's looking good.

'Although some work needs to be done,

'the ground floor is pretty much a blank canvas and it's easy to visualise the possibilities here.

'The kitchen is small and outdated so will need to be replaced.

'And, unfortunately, you have to enter the bathroom through a door to the side of the kitchen entrance.

'So let's keep an eye out for relocation options.'

So, upstairs, two bedrooms, a smaller one at the back of the property,

but lovely that it's got those stripped floorboards.

And then through to a much bigger bedroom. And look at this.

Great little original feature, this old gas lamp.

Gives you an idea of some of the character features hidden in this property.

In terms of this big bedroom, I would maybe reveal a fireplace over there

and hopefully, underneath the carpet,

there are, oh, joy of joys, even more of these original floorboards.

Strip those back, absolutely beautiful.

Spend a bit of effort on this place and you could just turn it into the most beautiful character cottage.

'The only cause for concern are the damp patches around the ceiling.

'Those do need to be investigated.

'But all in all, I reckon this 19th century cottage is a real gem.

'And there's more. An unexpected treat awaits me at the back.'

If you can fight your way through the overgrowth to the rear of the property, it really is worth it,

cos there's a real surprise in store.

Not only have you got these outbuildings, but then this lovely bit of garden reveals itself.

I mean, it's terribly overgrown, but a real fantastic find, especially in a house like this.

Quite unusual for a terrace to have such a large garden. Lovely.

'Lovely indeed. And there could be some possibilities for those outbuildings.

'So, to recap, two reception rooms,

'a bathroom downstairs, two bedrooms upstairs,

'and a large garden with outbuildings to the rear.

'Add to that real period charm and a beautiful setting,

'and I'd say this is a fabulous little property

'after a bit of renovation work.

'Let's hear what a local estate agent thinks of it.'

This row of houses in particular seems a very quaint row.

They're all very pretty mid-terrace cottages

and they are all very well-kept, as well.

In my opinion, the property will require a new kitchen, new bathroom,

cosmetic works, plastering works.

The garden is very long. It is overgrown at the moment and does require landscaping.

But once done, it will provide a very good size garden.

'How much could this achieve on the rental market?'

There is a rental market, a very high demand for rental property,

and I feel, once the property has been modernised,

then you could achieve around the £450 per calendar month mark.

'And if sold on once renovated?'

Once the property is fully modernised and the garden is done,

I feel that the property would go onto the open market at around £120,000.

Well, this house has what some terraces lack and that's real rural charm.

I love it and I think, sympathetically restored,

this would make a fantastic investment.

Let's see who agreed at the auction.

Two-bedroom mid-terrace cottage. What shall we say for lot 34

in Telford, Shropshire? Can we start it at 50?

50 I'm bid. Thank you. At £50,000.

55. At £55,000.

60 is it now? 60. At £60,000.

New bidder. £61,000. 62?

62. 63. 64.

65. 66. 67.

In the door, 68? Half, he's saying. 67 and a half.

68? 68.

68 and a half.

69. And a half. 70.

70 and a half. 71.

72. 73?

73. £74,000.

75. 76,000. The bid's in the door.

77 anywhere else? At 77. I'll go a half.

76 and a half. 77 in the door?

77. Sure? 77, the bid's in the door, then.

£77,000.

For the first time at £77,000.

For the second time.

Third and final time at £77,000.

-In the door. Well done.

-'Hiding right at the back there was James.

'He's a sales consultant and won the day with his bid of £77,000.

'He bought this cottage with this brother, Richard, as a long-term investment.'

-James, good to meet you. Congratulations.

-Thanks very much.

Tell me why you wanted to buy this little place.

This one just took our eye looking through the brochures at the auctions.

We've been to a few auctions, looked through catalogues.

-I know the area a little bit, it's a great part of Telford, and it just took our eye.

-Tell me about you.

I'm fairly local, live in Bridgnorth, born and bred.

I'm a sales consultant, self-employed.

I've got two little girls. My wife's a teacher.

Bought the property as an investment with my brother,

so it's kind of a family thing.

So what's the plan for it? What are you going to do to it?

At this stage, it's only the second time we've been in the property, so not sure.

Obviously want to modernise the kitchen and the bathroom.

Not sure whether we'll try and move the bathroom upstairs or leave it where it is.

Perhaps take out this wall that's behind us, open out downstairs

and just make the place a nice little cottage.

-Where would you put the bathroom upstairs?

-Potentially on top of where it is now.

-Just raise the ceiling a little bit.

-OK.

-If we can get planning permission.

-So build an extension, basically.

-Yeah.

-OK.

-And then that would give you a bit more space downstairs.

-It would give a lot more space downstairs.

It'd be a nice kitchen-diner at the back.

'I think that's a great idea.

'It will relocate the bathroom upstairs without sacrificing any bedroom space,

'allowing a new open-plan living area downstairs.

'But it won't be cheap.'

-What about the back? You've got a lot of potential there.

-Yes.

Quite a bit garden out the back. There is a right of way immediately as you go out the back door,

so a little bit restricted with that. We hope to try to make those outhouses a bit more accessible,

so there's nice storage for garden furniture, bikes, et cetera.

-And the garden?

-And the garden, yeah.

Not quite sure what we're going to do there. I guess clear it is the first objective

and then find out exactly where our boundaries are and see what we can find there.

OK. And then, at that point, will you assess what you're going to do, or will you definitely rent it out?

I think we'll definitely rent it out, yeah.

The long-term objective is to keep it as an investment for ourselves.

-What are you going to do with the features?

-There's a fireplace that's been covered up in the front room

and you can see the beam on the ceiling, try and bring those things out

-and really make that front room a nice little cottage room.

-And the rest?

We've got some nice pine doors, which we'll strip back, and try and expose all the floorboards upstairs.

-What kind of budget have you got?

-We've estimated a budget of about £12,000 to £15,000.

That's without adding the extension on.

If we add the extension on, then we'll have to revisit the costs.

How is it going to work between you and your brother? How will you share the finances and the work?

It's a 50/50 share of finances and investment.

I'll project-manage the place

and my brother, Richard, will be the silent partner.

We work together on a few different things so, hopefully, it'll go all right.

And timescale?

Looking at three months.

-Right. But getting people in...

-Getting contractors in to do the main work.

-Well, good luck with it all. We look forward to seeing how you get on.

-Thanks.

Well, James has certainly got himself a lovely little property here.

Sort the damp out as a matter of urgency, for sure,

and then he can turn this place into the most lovely little cottage.

Will he do that and retain all its character? You can find out later in the show.

Well, once you've bought your property, the hard work really starts

and let's just hope there are no surprises in store.

So, have our buyers uncovered hidden treasure

or unearthed hidden pitfalls? Let's find out.

'We're back in London in super-stylish Notting Hill,

'where I saw a flat in this townhouse.

'Simon and his wife, Joy, paid £362,00 for the one-bedroom top-floor flat.

'The couple own and run a restaurant.

'They plan to turn this place from down-at-heel to des-res

'to appeal to the trend-setters and go-getters

'in this highly-desirable and fashionable area.'

I love this part of Notting Hill. I think you've got a great buy here.

It's a lovely area and we were lucky enough to get it at a reasonable price.

Because of the area and the value of the property, we're looking to do it to quite a high spec.

'Just five weeks later, we've returned to find out if the couple have achieved their high-spec,

'high-style finish to give them a high-value return.

'Well, Simon and Joy have created a bright and welcoming open-plan living-kitchen area.

'Originally, the kitchen was in the adjoining room,

'but the couple have followed through their plan to make that a new second bedroom.

'They decided against creating an open-plan living area to the front and kept the dividing wall.

'That leaves the original master bedroom at the back of the flat.'

We decided to make it a two-bed as opposed to a one-bed.

We thought that would be the best course of action for us.

So we moved the second bedroom into where the old kitchen was.

We looked at this space and how we could best make it look bigger,

so we knocked part of this wall down, not as much as we would've liked,

but we think it really opened up the flat.

'The kitchen is sleek and stylish and, despite being modern,

'doesn't clash with this period property.

'The room layout also ensured harmony between the kitchen and the living areas.

'In the bathroom, the couple added a feature sink, along with some new flooring,

'fixtures and fitting. I think it gives the rather plain room a real lift.

'The master bedroom was bleak and bare but has now been decorated in warm, light colours

'and dressed by Joy. They plan to sell the flat,

'so dressing and furnishing it may help potential purchasers envisage the flat as a home.'

People find it hard to imagine a space,

so we dressed the bedrooms to show that they are good size double bedrooms

and that people can imagine living in them. So we're really selling a lifestyle.

'That messy communal space has been tidied

'and the couple are in discussions with the freeholder about giving the area a makeover.

'Simon and Joy completed the flat renovations within their four-week schedule.

'They came in £1,000 under their 15-grand budget,

'which bodes well for their future as property developers.

'This is the couple's third investment property. What are their plans now?'

Buy, buy, buy, hopefully.

Keep buying, keep selling, build up a nice property portfolio in the next few years

and just see where we go.

Every now and again, you'll have a sleepless night, thinking, "How much money have I committed?"

Especially when we've got a couple of properties up for sale.

You suddenly start seeing the bank balance go down when you're still paying the mortgage payments on them.

So, yeah, it gets a little bit hairy at those points,

but I think the positives far outweigh the negatives, definitely.

We're in this to make money, so if it's been a success or not will be whether we can sell it

at the price we want. But on this one, I hope so.

I'm quietly confident.

'Let's see if Joy's right to be cheerful.

'Two estate agents have come to share their opinions

'of the couple's handiwork. Have Simon and Joy succeeded in creating a designer des-res

'that will appeal to their affluent target market?'

It's neatly finished.

I think it's certainly an inoffensive finish.

Might have pushed things a little bit further.

This is a area that attracts high net-worth individuals.

They're often looking for a little bit more than a builder's finish. But it's very neat and trim.

Overall, I think they've done a good refurbishment.

They've put in a lot of plus points. I like the way they've opened up

the reception and the second bedroom, so you can see the two full-length sash windows as you come in.

The finish is very modern and contemporary, which is what the area is looking for.

'What do the estate agents think of the decision to have

'a smaller open-plan living area and a second bedroom

'rather than a larger reception room with just one bedroom?'

It certainly gives you a wider appeal if you look towards the lettings market,

because you could have two people sharing. It is slightly different,

because you've compromised a little bit on the reception space, but you have gained a second double bedroom.

Currently, there's probably a larger market for this amount of space

configured as a one-bedroom apartment.

Compromised two-bedroom apartments tend not to attract the same premium.

'But the two-bedroom option will potentially get Simon and Joy a better return on the rental market.

'The estate agents believe the property could achieve £1,950 per calendar month.

'But the couple have always been hoping for a quick sale.

'Let's find out what figure the agents believe this flat could achieve if sold.

'Could Simon and Joy clean up? Or will their investment disappear down the plughole?'

I suspect, in current market conditions, the apartment would realise around 425.

I think it would be dangerous to ask more than 450.

I'd suggest launching at £445,000.

If I was to bring this property to the market today, I would expect it to achieve

something in the region of £450,000.

'Well, those figures could mean a pre-tax profit of between £49,000 and £74,000,

'minus the usual selling expenses, of course.'

-That's pretty much what we were hoping for, I think.

-Yeah. We'd be pleased with that.

-Very pleased.

'The couple have put their flat on the market for £475,000,

'hoping to achieve about £460,000.

'Time to set a date for their next auction buy!'

'We return now to the village of Aqueduct in Shropshire,

'where I saw a charming two-bedroom terrace.'

# The falling leaves

# Drift by my window

'But the quaint, rural attraction of this exterior was not matched inside.

'The ramshackle interior concealed a rustic cottage-style property

'just longing to be revealed.

'But would it ever see the light of day?

'It was James who took up the challenge.

'He purchased this property as an investment for £77,000

'along with his brother, who would be a silent partner.

'James planned on renovating to reveal its rural beauty.'

-What's the plan for it?

-At this stage, it's only the second time we've been in the property,

so a little bit not sure. Perhaps take out this wall that's behind us, open out downstairs

and just make the place a nice little cottage.

'We went back there nine months after I first viewed it.

# The falling leaves

# Drift by the window

'The outside is as attractive as ever.

'But let's take a look at the changes inside.

'James has succeeded in creating a lovely country cottage.

'The rustic oak beams on the ceiling and the lintel on the fireplace add some rural romance.'

This room, we've opened up the fireplace and we've revealed the beams.

And we made an opening in the centre, there, so it's large open-plan.

I'm really pleased with the way this room worked out.

We've restored the character back to the room.

'By opening up the back wall of the living room,

'natural light from the front windows now sheds light on the once dark and damp dining room.

'By removing the ceiling and adding a skylight in the kitchen,

'James has again enabled the sun to reach the dark nooks and crannies.'

The kitchen has been transformed. Originally, there was a doorway here into the bathroom.

And the kitchen sink and worktops were on this side.

We've switched it over, creating a lot more space in the kitchen,

and made a new entrance to the bathroom round the corner. I'm very pleased with the way this worked out.

'The bathroom is now modern and cosy,

'ideal for relaxing in a nice, hot bath.

'Let's head up to the bedrooms.

'Due to a damaged roof, all the walls needed to be treated and re-plastered.

'But with nine months already gone and finishing work still to be done to the floors,

'was James's original 12-week schedule a tad optimistic?'

The project has taken longer than we anticipated.

I think one of the problems that we've encountered

is underestimating the extent of the work that was required to remedy some of the problems.

The property had a lot of damp and we had to put a new damp course in,

do some repairs to the roof and around the chimney, the flashing, et cetera.

So little things like that all stacked up and gave delays that have got us to where we are today.

'The renovation is a 50/50 financial split between James and his brother, Richard.

'But James has been project manager.

'So the schedule has trebled. What about their original £15,000 budget?'

I estimate we've spent about £24,000 so far on the property,

which is more than we anticipated.

'What does Richard think about that?'

Don't tell my brother.

'Oops. I think the cat may be well and truly out of the bag now, James.

'To the rear, the shabby lean-tos have been cleared away

'and the overgrown garden cut back.

'The interior renovation of this house is an undoubted success.

'Is James happy with what he's achieved?'

With regards to the house, we've done everything we wanted to.

I'm pleased with the way the new kitchen and bathroom layout's worked out

and also pleased with the character that we've restored to the cottage, the fireplace,

restoring the beams to their original look, et cetera.

'But will all the hard work equal hard cash?

'Let's find out if James and his brother Richard

'would be better to rent or sell up, as we get the lowdown from two local estate agents.'

Internally, very, very impressed.

He's done a nice job. There are one or two things he'll need to finish,

things like carpeting up the stairs and the first floor.

Externally, at the moment, a little bit disappointing. He may want to do something with the front door,

just for the kerb appeal.

I feel the changes have vastly improved the property.

The vendor's put in new kitchen, new bathroom, he's done the electrics,

he's put a damp-proof course in.

All have added to the value of the property.

'James and Richard paid £77,000 for the property

'and have spent £24,000 on the renovation.

'That totals £101,000 so far.

'What do the experts believe it could achieve if they decided to rent it out?'

This property would rent extremely easily.

The rental market is very buoyant

and I would estimate you'd get approximately £575 per calendar month.

I feel the property would rent easily

and he'd be looking around £525 per calendar month.

'Those rental figures would give the brothers a yield of between six and seven percent.

'That's better than banking your bread. What about the sell-on value?'

I would expect it to achieve between £110,000 and £115,000 if this came on the open market today.

If the vendor did opt to sell the property in the current climate,

I feel he could achieve around £110,000.

'Those estimates would give James and Richard a half share of between £9,000 and £14,000,

'minus the cost of finishing touches, such as the flooring upstairs, and the selling fees.'

In the short term, rental is probably going to be our preferred option.

To see any return on your money these days is good, so I'm pleased. It's definitely been worthwhile.

We hope you've enjoyed watching Homes Under The Hammer.

Join us next time for more inspiring stories from the auction rooms.

-See you then.

-Goodbye.

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