Episode 55 Homes Under the Hammer

Buying property is not always as easy as it looks.

But there is one way you can skip one dreaded part of the process

of that awful chain,

and that's by buying your property at auction.

There are allsorts of properties up for auction these days.

There certainly are, and it's the variety that keeps us interested.

Here are the lots that were up for grabs on today's show.

In Kent, this plot with planning permission

has me thinking big hair and shoulder pads.

Look at that! This is straight out of Dallas!

I have to look beyond the choice of colour scheme in this south London mid-terrace.

Although it's painted quite a happy colour, it's far from happy!

And in Gateshead,

this enormous kitchen blows the options for this two-bed bungalow wide open.

It turns this bungalow on its head, as far as I'm concerned.

All these properties have been sold at auction.

We'll find out who bought them and what they paid

-when they went under the hammer.

-Sold. 262.

I've come to the village of Longfield in north Kent,

just ten minutes from train links to the capital and the Kent coast.

It's a very desirable place to live, with some very desirable houses to live in.

Up for auction was a plot of land with planning permission for the building of a substantial house.

But plots like this don't come up very often around here,

and when houses can sell for up to three-quarters of a million pounds around here,

the guide price of £185 to £195,000

makes it sound like a very interesting opportunity.

# Wild thing

# You make my heart sing

# You make everything groovy #

So this is the plot. It's about 30 metres by 40 metres.

It's nice and level, which is a good start.

Backing onto open fields, again, which is lovely.

You've got an access there, which is good news.

You probably have electricity, water and sewerage within striking distance

because you are surrounded by houses.

So as building plots go, it's ticking all the boxes.

# Wild thing, I think I love you

# But I wanna know for sure #

What makes this plot really exciting

is that it has planning permission for the building of, what I have to say,

is a fairly stonkingly spectacular property!

Look at that! Oh, my goodness! This is straight out of Dallas.

Absolutely massive. It's three storeys, it's got five bedrooms, you've got an integral garage.

You've got...

I like this. This is the back, or I suppose it's the front, it's where you drive up.

But the rear is where it really takes off,

because one of the things you want to make the most of is this fantastic view.

What they've done is, they've put exactly what I would've, loads and loads of glass.

Not only have you got this conservatory here, but you've got these folding glass doors.

Basically, the whole of the rear of the property, well, not all of it, but a large chunk of it,

is going to open out onto the fields. That's fantastic.

It's big, so it's going to be expensive to build,

and the key here is making sure that there is a market in this area for this kind of property.

That needs a bit more investigation.

But a quick look at the surrounding properties puts my mind at ease.

Just round the corner from the plot is this estate of executive houses.

So the plot is well located

and the house that's proposed wouldn't look out of place.

A great plot of land with some great plans.

Now all that's left is to actually build the house.

To get a second opinion, I've asked along a local property expert.

# Let's wander slowly Through the fields

# Slowly, slowly through the fields

# Of joy #

The plot that we have here is a good-size plot. Ideal for a family home.

The access is good, you've got the lane through to here.

Surrounded by farmland, which is lovely. The views are stunning.

We can see all the way into Essex from the top of the house, I'd imagine.

We would expect a good-size family home, four or five bedrooms,

and to be extremely popular.

Once it's been built, what could it be worth?

Given the specifications that I've seen and the planning permission that's been granted,

I would envisage that, built in the same style as the houses surrounding it,

we would be looking at a price in the region of £675,000.

What if the purchaser decided to rent it out?

The rental value would be around £1,900 per calendar month.

Well, at that guide price of 185 to 195,000,

I think there's money to be made on this one.

And if those plans are anything to go by,

the finished product could be pretty spectacular.

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

Start me at 180, then. Standing in front of me, 180 I'm bid.

On the way at 180. 185.

185. 190. At 190. 190 again.

192 I've got. 194. And six. 196.

198 I'm looking for.

Are we all done at £196,000?

I'm going to sell. You won't get another chance.

For the first time, then... 198 I've got.

200 now, it's against you. 200, it's with you. And 202.

202. Two-two, it's with you. Two-four. 204,000.

Coming back again. Two-six. 208. 210. It's against you again.

£208,000 on my right-hand side, for the first time.

210 I've got. And 12.

Are you coming back again? 214. He is.

216. 216.

And 18. We'll make it 220, get there first. 220.

220. I've got £216,000. I'm looking for 220,000.

For the first time, at 216,000.

For the second time at 216,000. 220 I've got. 222,000.

224. 224.

224. At £222,000, I've got, for the first time.

222, for the second.

224.

226? He says yes. 228. Or 230, if you want to. 230.

228. 228. Your chance for 230. He's shaking his head.

At £228,000 I'm bid, then. It's in the room for the first time at 228.

You get another chance if you want to, even if it's 229.

Second time at 228. Third and final time, £228,000.

You're all done. Well done, sir. Sticking with it.

It was anyone's guess who was going to win here.

But in the end, it was Dave with his bid of £228,000.

He bought the land with his business partner Adrian.

They've run a building and landscaping company together for the last 25 years,

but this is their first private investment.

I caught up with Dave to find out more.

-Dave, good to meet you. Congratulations.

-Thanks.

-Tell me why you wanted the land.

It was the size of the plot and the location of it, really.

That really was it.

I think we'd waited for something like this to come along

and suddenly it was on our doorstep, what we'd been looking for.

It's... I'm looking forward to it. I'm excited, you know?

I'm looking forward to putting a beautiful five-bedroom house up on it

that my partner and me will be proud of.

What was the final thing that made you think, "Now is the time"? You've obviously waited a long time.

We did look around here these last few months, there are some plots,

but nothing as big as this, nothing that had the appeal,

especially the view from the rear garden.

Dave is a bricklayer by trade

and has a very experienced team to help him with the build.

We employ a carpenter, ground workers, roofers.

I shall just move them around.

I'll be on site. I'm hands-on, I am.

I'm there at six in the morning until six, seven, eight at night.

And my partner, he's the money man really.

He makes sure the money comes in.

It's a bit good cop/bad cop. I'm the good guy, he's the bad guy.

I say "yes" on site to this and that and agree with the client,

"Course we can do that!"

but then it's left to Adrian

to collect the money at the end of the day. I couldn't do it.

# Don't ask me, ask the money man #

Even though Adrian is in charge of the pot of money,

it was Dave who was making the bids at auction.

But Adrian did make a very spooky prediction.

Well, he got hold of the catalogue and put a little price down,

what he thought we should stop at, in case we got carried away.

Closed it and I didn't look at it until after we'd bought it

and he'd put the price that we bought it, and that's the truth.

What are the chances of that happening?

Dave ended up paying right at the top of Adrian's limit,

but the pair have saved money on architect's fees

as, remember, the land came with planning permission for a five-bedroom house.

It's a big design for a big bit of land. But is it too big?

# Won't you please Make a little room for me? #

It's a massive, massive house. It only just fits on this plot.

That's the only thing that lets it down, really, if it'd had a bit more garden.

But, as I say, we do have a landscaping division

and we will carefully plan this garden to make it look big.

We'll work hard at it.

We'll put all 40 years of experience into it

and make it a nice building.

But making this a "nice building" is going to come at a cost.

Dave and Adrian are coy about their budget,

but having shelled out 228 grand on the plot,

and with at least the same again, plus costs, to add on for the build,

I reckon they'll be in this for somewhere around half a million.

Will that leave room for any profit?

What are you hoping to sell it for?

Well, I would like to go for 650.

I think it warrants it,

especially with the views out the back.

Erm... I'll go for it.

-That's great.

-I can't wait to start.

-I can't wait to see it. Congratulations.

-Thanks.

-Good luck.

Thank you. Cheers.

So finally, Dave embarking on a building project of his very own.

He seems genuinely excited about it and that's lovely to see.

Of course, he's got to keep a handle on the budget

and you never know what's going to happen in the property market.

But you can find out how he gets on with this amazing build later in the show.

Colliers Wood in south-west London

is just a stone's throw from hip-and-trendy Wimbledon.

Property in Colliers Wood is 15 or 20 percent cheaper than its fashionable neighbour,

so I'm hoping for a bargain here.

A hop, skip and a jump from the Tube station

and I'm here to see this auction lot.

It's an attractive two-bedroom mid-terrace,

it's got double glazing and exposed brickwork, which is nice.

The guide price was set at £185,000.

# They call me mellow yellow #

It's a good-looking little house all right,

and if the front door is anything to go by,

I'm hoping for a sunny disposition inside.

Well, I'm glad to say they have kept with the yellow theme inside, as well.

Although it's painted quite a happy colour, it's far from happy!

It is in need of huge repair.

We've got a decent-size space, nice lounge, good windows.

I'm wondering whether it would be worth taking this wall out to really open up this hall.

It would bring a lot more light into here.

Some steep stairs, two bedrooms up there.

You come to the back of the property and you've got a good-size dining area.

The kitchen through there. It needs work and money spending on it.

It's terribly dated.

Mm... Not a great start.

The unusual colour palette continues in the peppermint green kitchen.

And off that, there's another surprise.

At the back of the property, you can see that somebody has fitted a shower room.

There's not even a bath in here.

It all depends on how much room you have to play with upstairs.

But I would knock this out and make this kitchen space much larger, more appealing,

and move all of this upstairs. A much better use of space.

If creating space is the name of the game,

why not look to the decent-sized back garden to add some value?

So out back, if you look beyond brambles and dead grass,

you can see the neighbours have really made the most of their property.

And while somebody has done a nice job of painting some windows on the brickwork,

I'd go the whole hog and put some French or bi-folding doors there.

You've got to keep up with the Joneses, haven't you?

While we're at it, let's take a peek of some of the neighbouring properties.

# Neighbour, neighbour

# Don't wonder what goes on In my home #

Ha-ha, a loft conversion! That gives me food for thought.

Time to check out the upstairs.

Things are fairly boxy up here. You've just got two rooms.

But there's a loft space, and converting that

could make all the difference to this house.

You could add that third bedroom upstairs

and then move the bathroom up here, which really does make sense.

The average cost of a loft conversion is around 20 to 30,000.

But get this - it could add as much as £100,000 to the end value of this house.

Definitely worth considering!

It would be quite a lot of work.

You'd have to re-jig the layout up here, maybe even move the stairs.

But the rooms are a decent size and it's all within the bounds of possibility.

We asked a local property expert to cast an eye over the place

and give us her thoughts.

The house is great. There's lots of things you could do to it.

You could keep the original layout and just refurbish it.

You could look at bringing the bathroom upstairs.

Or you could look at doing a loft conversion and changing the house.

Might there be problems applying for permission to do a loft conversion?

I think it would be quite easy because a lot of the houses have already had it done.

That sets a precedent, so it would be difficult for them to say no if they've already given permission.

So, if you were to keep the layout as it is and do the property up,

what kind of rental income could be achieved?

You could rent this property for £1,200 per calendar month in its current layout,

but having been refurbished.

And if you were to extend up into the loft space?

A three-bedroom house with a loft conversion would get about £1,600 per calendar month,

because you would let it to three sharers who would be happy to be so close to the Tube.

Given the auction guide price of £185,000,

what might the refurbished house sell for?

Leaving the property in the exact layout it is now, but refurbishing it to a good standard,

you could put it back on the market for 275, 285, and you would sell it quite quickly.

If you were to do the loft and end up with three bedrooms and an upstairs bathroom,

you are looking at the high 300s.

I'd say this is an attractive house in a good location,

with scope to develop and add value.

So quite promising. A great one to go for, I'd say.

Let's see who agreed with me as we go to auction.

Two-bed, mid-terraced house, near Colliers Wood Station. Good lot.

200. I'll go with 200.

205. 210.

215? 220 with the lady? 220.

221?

221. 222, madam?

223?

It was a popular lot, with bids flying in from all over the room.

We pick things up again as the bidding reaches £250,000,

already 65 grand over the guide price.

250?

Well done. 251?

Well done, 251. 252? 253?

254.

Back to you. 253, sitting down.

254?

With you, 253. First... 254. Popular lot. New spot.

255. 256.

257.

258.

259?

With you, sir, in the aisle. 258. Looking for 259.

259. Back in. 260.

261?

Just round it off, 261. Never stop on an even. 261.

262. 263? I daren't ask any more!

262. 263 elsewhere?

262. First time. Second time.

Third and last time if you're all done...

Sold. 262. Well done.

That successful bid of 262,000 was made by Robert.

He used to work in IT, but now develops property full time.

He's bought the mid-terrace with his brother Andrew, a finance director.

I met the brothers back at the house to find out their plans.

-Guys, Congratulations.

-Thank you.

-How did you end up in the auction room?

-We looked at a couple of properties in December,

and we didn't get them, for various reasons. They'd sold pre-auction.

Then we saw this one in an auction, we came and looked at it,

we liked its location, we thought it was close to public transport, there's a Tube down the road.

We thought it was a sunny outlook at the back, it's south-facing.

We thought it had prospects, in terms of being able to enlarge it

and possibly make what is now a two-bed, one-bathroom house

into a three-bed, two-bathroom house.

Great stuff. It sounds like Andrew and Robert are thinking about developing the loft

and transforming this two-bed mid-terrace.

Who spotted the potential of going up into the loft?

We looked two doors down, there's a loft extension!

We thought we'd have a look at that.

-That really is untapped potential. It's definitely worth looking into.

-Yes, we will.

What was it that you liked about the house?

Basically, it's a blank canvas. Everything needs doing.

I didn't want a place where it's half done and you've got to rip it out.

Everything needs doing, so it's a good project.

What's the game plan? How is it all going to start?

-Who's going to crack on with it?

-On Monday, I'm coming in

and I'm going to start work by myself.

What are you going to do? Tell me the plan.

Obviously new kitchen, new bathroom.

We might even move the stairs, move them to one side. Erm...

New plumbing, electrics,

the walls all need plastering, new flooring...

Everything, basically!

Have you sat down and really worked this out?

Have you got the drawing board out and scribbled some designs on there yet or not?

No.

All he's got is spreadsheets for the finances!

What role do you play in this, Andrew?

I'm a finance director by profession,

so I worked out the budget for this particular project to start with

and how much I reckoned we should pay for it.

We've got a budget to work with going forward.

That will be affected by whether or not we go ahead with the conversion. I feel that we probably will.

Let me into the secret. What is your budget?

For the materials, we've got a budget of just under £15,000,

obviously because Robert's labour will be free.

-And...

-I haven't told him yet!

Have you had a chat yet?! Come on!

No, basically, what we've done is, we've agreed a sort of profit-share, based on the end result.

But Robert will get a credit for his labour.

You've already got your spreadsheets,

you know exactly how much it's going to cost, £15,000 for the materials.

Now, if you do go up into the loft, have you worked that out?

No. We're going to get some quotes for that next week.

We'll probably go to three or four and get the best price for it.

How long do you think it'll take from start to finish to get this place sorted?

We've got three to six months, I would say.

Six months if we do the loft. Three months if we don't.

I've got to ask you, who's the elder brother?

-Can't you guess?!

-Who's the oldest?

There's two years between us. Now guess.

Don't put me on the spot! You? Just because you're tallest!

I am!

Guys, I think you've got a cracking buy here.

-Good luck with this project. It's been great meeting you both.

-BOTH: Thank you.

# He's my brother #

So, how will Andrew and Robert get on with their first joint venture?

Will it be all brotherly love or will it be more a case of brotherly rivalry?

You can find out how it all goes later in the programme.

Coming up, in Gateshead, this two-bed bungalow presents a very welcome surprise.

Wow! I was not expecting this!

In south London, Robert and Andrew's renovation

of this two-bed mid-terrace gets the thumbs-up.

They've done the best with an original Victorian layout.

But first, in Kent, Dave's business partner

shares the secret of their success.

This is Mr Chalk. I'm Mr Cheese.

Back now to Longfield in north Kent,

just a hope, skip and a 15-minute train ride to Central London.

Up for auction, in the middle of all these executive homes,

was this building plot.

# I said hey, honey

# Take a walk on the wild side #

It may not look much, but it did have planning permission for a five-bedroomed house.

Look at that! Oh, my goodness!

This is straight out of Dallas! Absolutely massive.

The plot was snapped up at auction for £228,000

by bricklayer Dave and his business partner Adrian,

a landscape gardener.

Dave was looking forward to their first go at building a house from start to finish.

We'd waited for something like this to come along

and suddenly it was on our doorstep, what we'd been looking for.

I'm excited, you know?

I'm looking forward to putting a beautiful five-bedroom house up on it

that my partner and me will be proud of.

The boys were cagey about their budget for the five-bed house,

but they did give themselves a nine to ten-month timescale to complete the work.

With its wide-open views, this place really could be magic.

16 months after our first visit,

we're back to see how Dave and Adrian have got on.

# This is

# A kind

# Of magic #

And as if by magic,

a five-bedroom house has parachuted into the plot.

Although there's still some work to do to finish it off,

you can see that before too long, this will be an amazing family home.

# Will soon be done

# Done! #

For a first go at overseeing a property build from scratch,

it's been in at the deep end for Dave.

But he seems to have thoroughly enjoyed the process.

I always wanted to do it. I'm happy to have done it. I'm pleased with what we've done.

And, I don't know,

maybe there'll be another one. We'll see.

# Magic! #

Dave has really got involved with every part of the process,

right down to choosing the spec for the bathrooms.

This is the master ensuite.

I just wanted something that when you walked in you went "Wow!"

So I thought black and white. Freestanding bath, nice chrome legs.

A nice shower to be able to walk into, with plenty of room.

And I just fancied a little feature that I thought I'd put in.

That's the closest I could get.

Basically, I'm really happy with the way it's turned out.

I think it's a lovely bathroom.

Nice and bright and, erm... Yes.

And while Dave has been hands-on,

his business partner Adrian has been busy behind the scenes.

Dave's very much a doer

and I sit in the counting house, counting out the money.

And that's how we work. It's a good combination.

Dave and Adrian still refuse to tell us how much they spent on the build.

But with their purchase price of £228,000,

I'd be surprised if they had much change from £500,000 in total.

But Adrian does have a clear idea of how much they would like to sell it for.

Our figure at the moment stands at 870.

That's flexible, possibly both ways.

It doesn't have to be completely finished, we're not quite finished,

and if the right buyer comes along and they want to finish it, it's open for negotiation.

But it could also go the other way. If somebody comes along and says, "I want gold-plated floors",

we'll do it and they can pay the difference to what we propose to do.

A sale at £870,000 would surely mean a healthy profit for them.

Bad weather and to-ing and fro-ing with planners in the early stages

means that their timescale has slipped by about six months, and there's still work to do.

But bricklayer Dave remains upbeat about the project.

I'm so pleased to have been a bricklayer and to build the whole house.

We've done it from the ground to the roof.

I've been involved all the way through. Thoroughly enjoyed it.

We asked two local estate agents to look around the property

and give us their thoughts.

It's absolutely fantastic. The quality is outstanding.

It's a good size

and I think that any family would be very happy here.

I really like the property. Fantastic-size rooms.

It'd be lovely to see it when it's completed.

Obviously haven't seen the kitchen yet.

But it is a lovely house.

What do the experts think it might fetch on the rental market?

I would currently rent this property out for around £2,500 per calendar month.

We'd be looking to rent this out

at somewhere in the region of £2,500 to £3,000 per calendar month.

I was thinking maybe 3,000 a month. Maybe a touch over.

We'd have to work hard to get that,

but I'd be quite willing to work to obtain that sort of money.

It's an idea.

But Dave and Adrian would rather sell the house on.

They hope to secure £870,000. How likely is that?

I would currently market this property for around 800 to £825,000.

We'd be looking at putting this on the market at a guide price

between 850,000 to 875,000.

-Well...

-One of them's out to lunch and the other one is getting close.

I think one's a good price that we thought it was,

and the other one is miles too low for the size of the property.

Dave and Adrian have done a great job here.

Despite their refusal to tell us what they've spent, there's surely a healthy profit in this

if they get anything like the 870,000 they're hoping for.

So, what's the secret of their success?

This is Mr Chalk. I'm Mr Cheese.

You've heard it before - good cop, bad cop.

I go in and chat and smooth it all over,

and when I've finished the job, this guy goes in with a final account and upsets them.

And we move on from there!

What does the future hold for the duo? Another new build?

We're happy to go on. Why stop when you're having fun?

This is the first time we've built a house for ourselves.

It's surprising what you can do.

This guy's a gardener, I'm a bricklayer,

and together we've built a home, a nice family home.

-Yes.

-Yes.

-I wish I could live here.

If I was a rich builder, I would be able to live here!

I'd be his handyman.

# Fog on the Tyne is all mine, all mine

# The fog on the Tyne is all mine #

This is Gateshead, on the southern bank of the Tyne, across the water from Newcastle.

With its seven bridges spanning the river

and architecturally striking modern buildings,

Gateshead is on the up.

Something else on the up is the Angel of the North.

Standing 20 metres tall, with a wingspan of 54 metres,

this amazing sculpture is truly iconic.

So, will today's property prove to be an angel or a demon?

I'm in Lobley Hill, a popular residential area,

about a ten-minute drive from Gateshead town centre.

I say popular - it is, too, especially since the colliery's been turned into a park.

What more could you possibly want? This is the property.

It's a two-bed bungalow at a guide price of £110,000. Let's take a look.

The area has a pleasant suburban feel.

With its space to walk your dogs and for the kids to feed the ducks,

it's got that winning mix of urban connections and room to breathe.

Well, what have we got? That's a nice surprise, I have to say.

Stripped floorboards always gives a nice feel to a property, I think.

Come through the front door, little corridor and then you've got what I think is a bedroom.

It's not huge, but lots of light coming in.

Over to this side, you've got a reasonable-size living room.

Again, the bay-fronted windows. We really like that.

You've got central heating, which is good news, as well.

And high ceilings, so you don't feel too claustrophobic, which is good. All in all, big tick.

Big tick indeed. The bungalow looks to be in a perfectly liveable condition.

In fact, it's very well done. You could move in tomorrow if you really wanted.

The bathroom is good and the second bedroom at the back is a decent size.

It's all quite neat and petite. Not exactly spacious,

but all of that may be about to change.

Wow! I was not expecting this!

Look at the size of this kitchen!

It's enormous. And... My mind is racing right now!

Think about extending it even further, you could have doors into the garden.

Fantastic place for a family. It's always the heart of a home.

You could have a big sofa there, with a telly.

There's even space for a dining table.

It's wonderful. A real bonus.

It turns this bungalow on its head, as far as I'm concerned.

# Oh, my starry eyed surprise

# Sundown to sunrise #

This really is a pleasant surprise.

The kitchen is much bigger than you'd expect in a bungalow of this size and age.

It's obviously a later extension, but really makes a huge difference to this house.

Wow! Well, another fantastic surprise

when you come and out to the rear and see the garden!

It's absolutely massive. You've got these views over the surrounding hills.

It's no surprise the catalogue had a picture of the rear, rather than the front.

Great space.

So a nice family garden. Could you turn this into an ideal family house?

For that, you need a third bedroom. Is that a possibility? Let me think.

I guess you could put a partition wall in here, play around with the other rooms.

You could always put a dormer bedroom in, I suppose.

But I'm not sure you're not falling in between two stools there

because you're losing this gorgeous family-size space.

If you're using this as somewhere that's maybe a retired person, they don't need the extra rooms.

Talk to an estate agent.

Find out the differences of two and three beds round here and then make your decision.

I think I'm coming down on the side of "leave it as it is".

I think if you were going to get into third bedroom territory,

you'd need to build a proper extension to the side

to retain the living space a family needs.

That could well hit the ceiling of what bungalows on this road go for.

We asked along a local estate agent to get her views on this place,

which had an auction guide price of £110,000.

The general condition is very good.

However, I would recommend spending between 10 and 15,000

on general decoration and a little bit cosmetic enhancement.

Would it be worthwhile maximising the accommodation by creating a third bedroom?

A third bedroom, I don't think would add any value whatsoever.

If you did go up into the loft space

or you did extend out to the side, perhaps it would,

but I think you would take it away from being a traditional bungalow.

So, in this area, how much could the bungalow achieve on the rental market?

The rental in this area's very good.

I would feel 550 per calendar month is a reasonable price.

Once renovated, what's the maximum value that a property like this could hope to sell for?

Realistically, the ceiling price should be around 150,000.

Well, bought for anything like the guide price, I think there's money to be made on this.

It's a good property in a great location.

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

A well-presented two-bed semi-detached bungalow.

Price guide of 110.

Anybody want to start at 110?

105?

100?

Guys, I'm meant to be going up. I'm going the wrong way.

90,000 anywhere? 90 to go in the room or I'm going to pull.

As soon as you say, you suddenly get people. At 90,000. Far right at 91.

92. Are you coming in at 93? 93 bid.

94. 95?

£94,000. Anything further? We're at £94,000 in the room.

95 to the lady. 96?

96? We're selling, lady standing at 95,000. I'm going to sell.

This is your last chance. I'm selling once at 95.

You're both out. I'm going to sell it for the second time at £95,000.

Sold.

The winning bid of 95,000 was a whopping 15,000 under the guide price

and it was made by Jacqueline.

She and her husband Kevin have bought the bungalow to add to their small portfolio.

Jacqueline works in transport for local government

and Kevin runs a kitchen and bathroom-fitting business.

I caught up with them back at their new purchase to find out more.

Lovely to meet you both. Congratulations.

-Tell me why you wanted to buy it.

-We haven't done a lot in the market for the last two years.

Property in this area is still quite strong,

but a bungalow is a safe bet at the moment with the market.

There's not many of them about

and you've got more likelihood of getting a buyer for it after you've renovated it.

Tell me about your experience. Have you done this in the past?

We've got a small buy-to-let portfolio,

and we did a little bit of renovation, but we haven't done anything for the past two years

and we've stepped back into the market now.

-Previous projects worked well?

-Yes, they did.

But with the market falling a bit flat, we decided to step out a bit, you know?

And then decided to come back in when the property is as low as it's going to be,

and it's probably on the way back up again.

OK. So, why this property in particular?

It has a very good location. The transport networks are very good in this area.

There's a really good school in this area, as well.

It just seemed a good option to buy at this moment in time.

It doesn't need a huge amount done, either.

-I grew up here, as well, so I know the area quite well.

-Right.

-What was the auction like?

-I wasn't there, so Jackie can answer.

I did that. It was fine. It was a very quick procedure.

Probably the quickest I've ever seen a property go through the auction. It was quite painless.

-Were you happy with what you paid?

-Very happy, yes.

At what point did you get to hear about how much it had cost?

When she came home from the auction, I got a call.

She says, "I've bought it." I says, "Congratulations!"

Congratulations indeed,

as canny Jacqueline got the bungalow for £15,000 below the guide price.

The couple know the area very well.

Their policy is to play safe and only buy properties within a 10-mile radius of where they live.

Having that local knowledge can be key.

A bungalow, then, is that a good or a bad thing in your eyes?

I think it's a good thing.

A lot of people, even families, tend to move into bungalows.

So we intend to try and make this one a three-bedroom,

because there's a shortage of three-bed properties in this area.

Right, and how are you going to add the extra bedroom?

We're going to put a stud wall across there to create a kitchen,

move this wall further back to make this room a little bigger.

-Also, take that wall out.

-Right!

-Make it a little wider.

It'll create a bigger space and this'll be a living room.

And what is currently the living room will be, what, a bedroom?

-BOTH: Yes.

-Then you create three bedrooms

and it gives you the option that you could use this as an eating and living area,

or you could change one of the rooms at the front.

It just gives maximum scope for the property to be used.

Have you checked out the demand and the value

of two and three-bedroom properties in the area?

Every bungalow on this road is a different layout.

They've had different things done to them.

Some are a little bit smaller, some are a little bit bigger.

But there's very few three-bedroomed properties in the Lobley Hill area.

So people with families are having to move out of the area and away from the good schools

because most are two bedrooms.

-So, you're doing it more for the saleability rather than to add a lot of value?

-Definitely.

It's not a huge amount of work to make it from a two to a three.

It's a case of moving a few walls.

Only a case of moving a few walls?!

Jacqueline makes it sound so easy, although perhaps it is

when you've got all-rounder Kevin on hand to do most of the work.

I'm a kitchen and bathroom fitter and an electrician, so I'll do most of the work myself.

What I can't do, I know everyone in the trade, so...

Great! What's your budget?

Probably in the region of about £15,000.

Does that cost in your time, as well?

My time's free. She doesn't pay me nothing!

I tend to buy them and he does the work.

-I'm her slave!

-Yes!

-The slave!

-Congratulations. Well done.

-Thank you very much.

-Good luck.

-We'll look forward to seeing how you get on.

-Thank you.

Jacqueline and Kevin have clearly got themselves a good buy here.

In terms of carving it up to create that third bedroom,

I'm not sure it's the right thing to do.

On the other hand, maybe it will draw in those families.

Only one way to find out. You can watch later in the show.

It's been a while since we last saw those properties. Have our new owners been busy bees?

Or have they been stung and stopped dead? Let's find out.

We're back in south west London, Colliers Wood, to be precise,

to check on progress at this two-bed mid-terrace

which brothers Robert and Andrew bought at auction for £262,000.

-What was it that you liked about it?

-It's a blank canvas. Everything needs doing.

Have you worked this out?

Have you got the drawing board out and scribbled some designs on there yet or not?

No!

All he's got is spreadsheets for the finances!

Andrew was in charge of the purse strings.

They had a budget of just under £15,000 for materials,

but they hadn't got a price for a possible loft conversion.

Who spotted the potential of going into the loft?

We looked two doors down, there's a loft extension!

We thought we'd have a look at that.

Little brother Robert was going to do a lot of the work.

Their timescale was between three and six months,

depending on whether they went ahead with the loft conversion.

12 months after our first visit, we're back to see how they got on.

From the front, those skylights tell me that the loft conversion might've come good.

The old peppermint green kitchen and tangerine shower room

are things of the past.

The new kitchen is much brighter and far more appealing.

Right, so in the kitchen, originally there was a bathroom at the end here.

We've taken the partition wall down and it's given us an extra three or four feet.

It was originally a very dark room

so we put in a large window,

which makes the room a lot brighter.

We've left space for appliances, a dishwasher and a washing machine.

We've put in a range of units on this side.

Also, we've moved the boiler from the wall here to the side,

so that keeps it out of the way.

Big changes on the ground floor.

What does all this mean for the upstairs?

Robert and Andrew have managed to fit the bathroom in on the first floor,

which really works well.

Two bedrooms, one at the front, one at the back,

are now a bit smaller, but still a decent size.

A brand-new staircase takes us up to the loft conversion,

which has allowed for a third bedroom and an ensuite shower room.

I like it! I like it a lot.

But going up into the loft must've made a pretty hefty dent

into the original budget of £15,000.

The loft, when we decided to go ahead with that,

we added to our original budget another £24,000.

So the revised budget would've been £38,000 for materials,

plus paying that contractor for the loft.

We ended up spending 41,000, so we're 3,000 over budget.

As overspends go, that's not too bad.

Must've been all those spreadsheets, Andrew.

Their timescale, however, has slipped from six months to one year.

With their purchase price of £262,000,

Robert and Andrew's total spend on the renovation

comes in at £303,000.

We asked two local estate agents to give us their thoughts.

First impressions, it's a very nice house in a good location,

and been well renovated.

They've done the best with an original Victorian layout.

These houses are quite tight,

but having an ensuite in the top bedroom,

vital for our buyers that we have today.

It's going to appeal to your professional couple

who work in the City and need the Tube.

So, what do they think the property might fetch as a rental?

The rental value in the current market

would be approximately £1,500 per calendar month.

I think the rental will be £1,500 per calendar month,

possibly even £1,600.

Those rental valuations would give Robert and Andrew a decent yield of around six percent,

but the brothers would rather sell the property on than rent it out.

What do the experts think the renovated mid-terrace could fetch on the resale market?

I think the resale of this property is probably 385,000 to 390,000.

I think the sale value should be in the region of 390 to 400,000.

Those resale valuations

could mean that Robert and Andrew are looking at a whopping pre-tax profit

of between 82 and 97,000,

minus fees and expenses.

That's got to please finance director Andrew. But what about Robert?

We've taken an offer of 400,000, so those estimates are spot on. I'm very happy with it.

So buying at auction has been fruitful for the brothers.

But will we see them back bidding for a bargain any time soon?

Absolutely, yes.

We're going to come out with a profit, so we'd like a similar project again.

# Fog on the Tyne is all mine, all mine

# The fog on the Tyne is all mine #

Back to the Gateshead suburb of Lobley Hill

to check on the progress of this two-bed bungalow,

which Jacqueline and Kevin bought at auction for 95,000.

I didn't think it needed much work,

but the couple gave themselves a healthy £15,000 budget,

and five to six weeks, to turn it from two to three beds.

How are you going to add the extra bedroom?

We're going to put a stud wall across there to create a kitchen,

move this wall further back to make this room a little bigger.

-Also, take that wall out.

-Right!

-Make it a little wider.

-And what is currently the living room will be, what, a bedroom?

-Yes.

Then you create three bedrooms, and it gives you the option

that you could use this as an eating and living area,

or you could change one of the rooms at the front.

It just gives maximum scope for the property to be used.

I wasn't convinced about dividing up the kitchen.

Ten weeks after our first visit, we're back to see how they got on fixing the place up.

# Yo, baby, fix me up

# In the middle of the morning Evening

# Oh, baby, fix me up

# Gotta give me some rubbing down And all of my squeezing

# Oh, baby, fix me up

# I want my healing #

Kevin and Jacqueline have done a tremendous job of transforming this place.

And if I can eat my words, the crowning glory is the re-jigged kitchen.

What we did in here, it was one big area,

so we moved that wall slightly further back

to create a bit of a smaller bathroom.

Swapped the windows over to create more light in this room.

We then created this wall with a doorway through, to divide the two rooms

and make this the living area and this the kitchen.

What we did to create a bigger illusion of a kitchen

is create all the storage space here.

We built in the fridge-freezer in here,

built-in cooker, built-in microwave,

built-in washer, and a built-in dishwasher.

So you have all your appliances. Plus, we created an eating area.

It means you can have your sitting room in here and an eating area in here.

We also fitted French doors going out into the garden,

and just created a nice, bright, light room the best we could.

Kevin's kitchen and bathroom-fitting skills

have come to the fore in this renovation.

But his input didn't stop there.

I did most of the work myself

because I'm an electrician, and I do kitchens and bathrooms, as well.

So all the joinery, everything like that I done myself.

Jackie helped to do the planning. It was her design for the kitchen.

She helped design the bathroom.

We both talked it through and decided to go with some of her ideas, some of mine.

We put them both together and this is what we created.

He makes it all sound so easy.

But it hasn't been quite as straightforward as all that.

When we bought it, it was quite a good standard.

But there'd been a flood over the winter,

so it was quite in a disarray really.

The kitchen was rotten and when we started to pull things out,

it was worse than what we'd anticipated.

And I like to do things properly and to a good standard,

so we decided to renovate to a good standard.

Kevin's work commitments have meant that the timescale has slipped

from five or six weeks to ten weeks.

But that's still not bad at all.

What about their £15,000 budget?

We've spent approximately £21,500 on this project.

Which has still come in quite comfortable. I'm quite happy with that.

It was a little bit higher because we decided the boiler had to be replaced.

It's got to be done by the correct people. So that increased the budget.

We decided to redo the damp course around the whole property, because it was damp.

And I've got to admit, we spent a little bit more on the kitchen and bathroom.

Kevin and Jacqueline bought it for £95,000,

so their £21,500 spend

brings their total outlay to £116,500.

We asked two local estate agents to look around the property

to see if the couple have invested their money wisely.

I think it's absolutely amazing. The standard is fantastic.

The quality and finish is brilliant. Superb. I love it.

I think it's been done to a very good standard.

It's nice and neutral throughout

and I'm impressed with the kitchen and the integrated appliances.

So a big thumbs-up from the estate agents.

Given Jacqueline and Kevin's total investment of 116,500,

what do the experts think the bungalow might fetch if it was put up for sale?

I think in this current market,

I would start the marketing off at £155,000,

to achieve in the region of £150,000.

I would put this property on the market for £150,000.

A sale at that valuation of £150,000

would give the couple a pre-tax profit of £33,500, minus the usual selling expenses.

What do they make of that?

Erm, I think it's quite a low valuation.

Bungalows are sought-after, especially in this area.

The dishwasher, washing machine, the bathroom is all brand new.

Basically, you're getting a brand-new house.

I think it's a bit undervalued, but time will tell.

What about rental valuations?

I would perhaps put this on the market for rent at £695 per calendar month.

I would put this on the rental market

for £675 per calendar month.

I think that's pretty spot on.

-I would say they've got the rental about right!

-Yes.

Valuation's a bit low, but the rental is... Yes.

From experience in that market, I would've marketed it at that.

It's not something I really want to do,

because once you've rented it out, it's never brand new again.

So it probably isn't an option that we'll take. We will put this on the market to sell.

Whoever does buy the bungalow will get a cracking little property in a great area,

which they can adapt to their own style. Not bad at all.

How have Kevin and Jacqueline enjoyed renovating this place?

-I love it.

-It's been a good development, this one.

A safe development, definitely.

Especially when it's close to home. It's been easy.

-Yes?

-Yes, it has. It has.

Join us next time for more auction action.

Yes, we'll have more buyers. Will they be successful or will it go horribly wrong?

Will you be jealous or relieved it wasn't you?

-See you soon.

-BOTH: Goodbye!

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