Episode 65 Homes Under the Hammer

-Welcome to Homes Under The Hammer.

-Now if you've ever tried

buying a property and been caught in the dreaded property chain, you'll know how frustrating it is.

-So how do you avoid that kind of situation?

-Well, one way to slice through the links of the chain

is to buy your home under the hammer.

Well, people go to the auctions looking for all sorts of properties, and they have all kinds of budgets.

There's an enormous choice to bid for, so what did our buyers go for today?

In Stoke-on-Trent, I step into the unknown.

It sounds very different from the usual two-up two-down. All I've got to do is find a way in.

In Herne Bay, Kent, this house has bags of room and loads of possibilities.

And it could be amazing.

Whilst just a short distance from Nottingham city centre,

there's a two-bedroomed flat full of pleasant surprises.

Joy of joys, look at this!

All these properties went to auction and we'll find out who bought them and what they paid for them

when they went under the hammer.

Third time.

I'm in the Trenton area of Stoke-on-Trent,

characterised amongst other things by the Trenton-Mersey Canal,

used to transport raw materials to and bring back finished products from the Potteries.

There's a very different feel in this part of the area,

and you know what? It's a lovely place to live.

Just a short stroll away is the auction lot I've come to see.

Unfortunately, the property is also very close to this fairly major road,

and, in terms of access, a few problems.

Somewhere around here, I think, through this holly bush,

there is a house which had a guide price of £125,000.

It sounds very different from the usual two-up two-down. All I've got to do is find a way in.

You know what? Let's try the back.

So far this place scores zero on kerb appeal.

With boarded-up windows and an overgrown garden, it clearly hasn't been touched for a while.

So not quite the warm welcome I was hoping for, and I haven't even made it inside yet!

Eventually!

Anyway, what have we got? Well, there's a little sort of rear area there,

which would be a very nice utility room,

and then through into what was originally the kitchen, I'm sure. But straightaway...

..you don't need to be a rocket scientist to figure out it's a house that's going to need a bit of work!

Nice-sized room, though.

So through to what was, I imagine, the dining room,

bearing in mind we're working back to front with this house at the moment.

But again not a bad-sized room,

although starting to see signs of some really serious dilapidation.

The ceiling's come down and those beams and floorboards look to be rotted,

so, A) take care when you're looking upstairs,

but B) I think that's going to take a bit of sorting out.

But then through towards the front of the property, big entrance hall here.

I love this about this age of house is that they actually bothered creating a space.

It gives a real sort of focal point to the house.

Got an understairs cupboard, really massive lounge area there,

another sort of sitting room area at the back.

It's lovely and there are some fantastic features to be uncovered, but...

I think there's work to be done, he says, understating somewhat.

You'd expect a bit of wear and tear in a house built over 100 years ago, but just maybe not quite this much!

Well, upstairs on to the first floor, and lots more really lovely open areas.

I really like the layout of the house,

but the more I look, the more I just see the complete...

terrifyingly bad state that this place is in.

I mean, every single wall you look at, every floor that you look at, every ceiling,

seems to have a problem, I mean, nowhere more so than on this wall in this particular bedroom.

As you can see, there's this massive crack.

It goes all the way down from the corner all the way up to the other corner.

You can almost get your finger in there.

It seems like this main internal wall in the property is sinking.

I haven't come across that before.

You'd need to get a structural engineer in.

It's bad.

It's really bad.

In fact, the drawbacks here are too numerous to list.

Cracks, damp and many structural issues throughout.

In total there are three double-sized bedrooms on this floor,

all with problems.

And in the loft, two large bedrooms, again not looking very good.

Back on the middle floor, there's a loo plus a bathroom,

which might just be the best-looking room in the house!

And I do say that with my tongue firmly in my cheek!

So it's easy to see why this large property had the relatively low guide price

of £125,000.

This property is very characterful and very spacious.

However, there are some structural issues.

It may be long-standing structural movement because of the busy main road.

It also may be caused by mining

as one of the local pits was very, very close to this property.

But with that guide price of £125,000, is there money to be made in this place?

Once this property is renovated, I would estimate the value to be in the region

of £225,000.

Mmm. Well, with the amount of work needed, you might be hard-pressed to see a profit on the resale market.

Perhaps it would be better rented out?

If this property was rented as a family home,

I would suggest a figure of somewhere in the region of £700 per calendar month.

Well, it would be very easy to fall for the charms of this place,

the room sizes, the location, the canal, just the general feel of the property.

However, do not underestimate the amount of work it's going to take to sort this place out.

It has got some serious structural problems.

Still, it was 125 grand.

I'm sure somebody fancied the challenge when it went under the hammer.

Lot 32. We move to the Trenton area of Stoke-on-Trent.

115 to start, then?

115. At £115,000.

120? 120.

At 120. 125?

At £120,000.

121 anywhere?

At 120... 121.

Back in. At 121.

122? At 122. 123?

123. 124?

124.

125? 125.

126?

At 125,000, seated right.

Another 1,000?

125,000, the bid seated right. I'm selling it

at £125,000, then, for the first time...

at £125,000, for the second time...

third and final time at £125,000.

You bought it. Well done, sir.

With his successful bid of 125,000,

the brave man who's taking on this huge project is Suhail.

He plans to renovate and restore the house with the aim of selling it on.

But where to start on it? I met him there to find out more.

-Suhail, good to meet you.

-Good to meet you, Martin.

-Congratulations.

-Thank you very much.

-Wow! You've taken on a bit of a project here.

-Certainly I have!

Why did you want to buy the house?

Well, it's basically the character it's got that it's got.

Although it needs a lot of work, it has some problems to it,

but nothing that couldn't be put right and basically restored to its former glory.

Right. So have you done anything like this before?

Yeah, I've done a few things but not to this extent.

Not sort of from absolute scratch.

So it this your main line of work, property developing?

-Well, no, this is basically a sideline that I have.

-What do you do when you're not doing this?

-Well, I go fly planes.

-Fly planes?

-That's right.

-What, for fun?

-I'm a pilot.

-A proper pilot?

Yes, I'm an airline pilot and this is my job, basically.

# Come fly with me

# Let's fly, let's fly away... #

From flying planes to renovating old properties,

Suhail likes to diversify, and he's certainly ambitious.

But has this high-flyer still got his feet on the ground?

So let's go on to what you're going to do to sort this place out.

Let's start with the biggest issue, the major cracking on the internal walls.

What do you know about that and what are you going to do to sort it out?

The major cracking in the property is basically subsidence.

We had the structural engineer in here,

and he actually drilled a few holes around the actual foundations of the property

and tested the soil underneath.

What he recommended is that we need to reinforce the middle of the property,

because the right-hand side is sound and the left-hand side is sound.

It's just the middle of the property is actually a little bit over loose gravel or soil

that is actually under the foundation.

So he's going to reinforce that.

-So that's like underpinning?

-It is an underpinning, and that will cure the problem, basically.

Suhail certainly has a major job on his hands here, because it doesn't end there.

A damaged roof is causing a major part of the damp problem,

so a new roof is to be installed,

and then inside the whole house will have to be stripped to the bone and renovated from scratch.

It's going to be a costly exercise.

All in all, we'll put a budget for it of £100,000.

-Oh, wow!

-To put it right.

And I think we can do that.

-Yeah, that's...

-Realistic, yeah.

-You must be doing this for more than the money?

-Well...

-Because there are easier ways to make money.

Yes, of course. But, I mean, it's passion, really.

It's getting something like this,

and developing it and changing it to something beautiful.

So that is a sense of achievement there.

Suhail's hoping to get that good feeling in around 10-12 months,

but he's not doing it alone. Apart from getting contractors in for the main work, he has Peter,

a builder and a long-time friend to give him some help and advice.

He's also hoping to get a hand closer to home.

What about your family? Are they going to get involved?

Yes. I think they're just going to come here and say, "My God! The place is haunted!"

No... Well, yeah... They obviously have a very good idea, especially my wife.

She's quite involved into what I do.

She's quite switched on to things as they happen.

She's well-briefed,

and she's the one who's going to be the eye on the show, basically, on a day-to-day basis.

Well, it's very lucky that it's found you.

You've got a bit of a challenge ahead!

-But we really look forward to seeing how you get on.

-Thanks very much.

-Good luck with it.

-It's a pleasure.

Well, thank goodness Suhail is under no illusions about the amount of time, effort and money

it's going to take to sort this place out.

However, it's great to see that he has such a passion for this property.

He really has fallen in love with it. Still, it's going to be a biggy!

Can't wait to see how he gets on. You can find out later in the show.

# If you're fond of sand dunes and salty air

# Quaint little villages here and there... #

This is Herne Bay on the North Kent coast, just eight miles from Canterbury.

It really developed 150 years ago

with the influx of holidaying Victorians who came for the sea and sand.

Today it's not so busy,

but, on a bright day like this, you really can't knock that sensation of being beside the sea.

Today I'm off to suss out an interesting investment.

It's a...wait for it.. seven-bedroomed property,

and it's on this pleasant residential street

with a guide of 220,000-250,000.

Now, here it is. Quite attractive and a bit unusual with its eyebrow window peeking out from the roof.

I wonder if the inside will raise eyebrows!

I like the look of this place.

It seems well-maintained and is nicely set back off the road with plenty of parking.

The ramp that leads up to the door gives a clue about its past.

Now, I know this used to be a residential care home,

so I'm expecting it to be plain and functional.

It doesn't really have that warm homely feeling the minute you step into it.

But you've got a couple of rooms, one here to the left, one to the right.

It's got a sort of, like, open, big feel to it.

Let's take a look around and check out the other rooms.

Now, off this little corridor you've got a bathroom through here,

some stairs leading up to three bedrooms,

through to this open-plan area.

They could easily call this a dining room, it's big, and look at this double doorway

leading into this massive, huge room!

Now, this excites me! I love space, I love it open, loads of light coming in.

These nice doors leading out to a very, very pretty garden. There's so much you could do here.

It does excite me. It does feel a little dated, a little old.

You've got this brick wall that's been painted over...

..but there's even more rooms through there. I'm going to check the rest of them out.

This is a separate annexe and a bit of a walk on the wild side.

# It was a jungle, jungle, jungle, jungle rock

# A jungle, jungle, jungle, jungle rock

# A jungle, jungle, jungle, jungle rock... #

Down the corridor there's another, yet larger, bathroom and two further bedrooms

that look out on the front. They all need taking back to basics and redecorated,

but structurally it all looks solid.

Back across that huge room is a large kitchen and utility room, that both look grubby and tired.

The same can't be said for the garden which is blooming marvellous!

And remember I said there were seven bedrooms? We've seen four so that leaves another three.

Now, sometimes space is a little tight in these dormer conversions, but do you know what?

There's masses of it up here. You've got two really good-sized doubles,

this lovely corridor along here, which is huge,

a big family bathroom and a sort of kid's boxroom there.

But it's done so well, it's got an amazing sold family feel to it,

and I'd say, as far as space goes, this house really has it all.

There's over 2,800 square feet to play with here,

and few people need seven bedrooms, so I think with some thought and a good eye,

you could really make this house something special, just with fewer rooms.

But what does a local estate agent make of what was on offer here?

I think the main plus points of this property are its size...

obviously, it's just under 3,000 square feet,

and the flexibility of space it offers the new purchasers.

The options here are almost endless, but if you did make this a large seven-bedroomed house,

would you also see a large increase on what was the guide price of £220,000-250,000?

I think the property today is worth between £270,000 and £280,000

and on completion back into a family house, I'd presume a value of between £390,000 to £400,000.

What sort of rental could it earn as a family home?

In terms of rental value, I'd put this on the market between £1,500 and £1,600 per calendar month.

Yes, theoretically, this is a seven-bedroomed house,

but really it's a specious four- or five-bedder, crying out for some imagination.

And it could be amazing, but amazing costs money,

and there is a ceiling for houses in this area that you really don't want to breach.

So whoever takes this on needs a keen eye for how to rework the space

and a tight hand on the chequebook. Let's see who that was at the auction.

Lot 25.

Where are you going to start me?

Can I say start at the bottom end of the guide? 220, do I see? 220?

220. I'm on my way at 220. It's in the room to be sold.

At 220,000 I have.

225 now, do I see?

225 I have.

230?

230. 235? 235. 240?

240. 245?

245. 250. 255? 255. And 260.

260. 265.

265. 270?

270 may I say? At 265 bid I have on the right-hand side.

270 I'm looking for.

267 I'll take if it will help.

If not... 267.

270 if you like. 270.

272? 272?

At 270, then, for the first time...

270 for the second time... Another 2,000 anywhere?

If not, for the third and final time at £270,000. Are we all done? I'm selling.

Yours at 270,000.

That final successful bid of 270,000 came from Gary and Claire.

Gary's an electrician and Claire's a travel agent.

Along with their two children, seven-year-old Charlie and four-year-old Milly,

they came to the house to tell me their plans.

Congratulations, guys. You've got a huge house here!

-So why did you want to buy this at auction?

-Why?

We've got a two-bedroomed house at the moment, and we were going to extend it,

and while I was doing the extension plans,

Claire was looking on the internet and came across this little house!

-"Little house"?

-Yes.

-Claire, this house has got seven bedrooms.

-I know.

-So you're jumping from a two-bed to a seven-bed house?

-What is your thinking behind all this?

-We've always wanted to live with parents,

-cos we're quite big on family.

-So, Claire, who is actually going to be living here?

There's going to be me, Gary, my two children, Charlie and Milly,

-our dog, a golden retriever, my mum, and Gary's mum and dad.

-Wow!

-So it's going to be like the Walton family all over again!

-Pretty much, yes.

MUSIC: "The Waltons" Theme

Even though it's a house in Herne Bay rather than a mountain in rural Virginia,

it's not often these days that you find three generations living together under one roof!

In fact, the family all agreed to buy the place, did their research,

raised the money, and successfully bid on it.

So it looks like there's real teamwork going on here.

I chatted to Claire's mum, Carol, about how she feels about the move.

-So, Carol, this is very exciting, isn't it?

-It is exciting.

-Are you as excited as Gary and Claire are?

-I think so...more, probably.

I spend a lot of time with them, and we're all a bit squashed in the house,

and this is perfect because we can be together and I can have my own space, so it'll be excellent.

-How did they put the idea to you?

-Well, to be honest, Claire and I were looking at bigger houses

without telling Gary.

And we saw this on the internet

and we thought, "Oh, that's quite a reasonable price," and I'd recently sold my house

and kind of didn't know what to do with the money, or some of it, anyway.

So we thought...we just said, "Shall we go and look at it?"

And he went, "Oh, well, you know... it's not a possibility,"

but then everything sort of rolled together, and we asked his parents and they said yes,

which was a big shock. We all get on really well, though, so, yes, here we are!

And there they all are,

but with seven of them to accommodate, what are Gary and Claire's plans here?

There'll be some structural changes, yes.

In what's the playroom now which has got the jungle theme,

the wall between there and the big bathroom will come down,

and the bathroom will be made smaller so that will be like a kitchenette-living room area.

And just in the hallway there there's a hot-water tank which will probably be going upstairs.

And that cupboard will be knocked out to make the bathroom downstairs bigger.

Sounds like there's a lot of work ahead for Gary and Claire,

but for the kids, Charlie and Milly, with so many rooms to play in, it promises to be a big adventure.

What colour are you going to paint your new bedroom?

-Every single colour in the rainbow.

-Every colour in the rainbow?

Charlie, what do you like about having bought this house?

That our nans are moving in with us.

So what's it going to be like for you, having grans and granddads all over the place?

A bit confusing.

So you're going to have your mum and dad telling you what to do,

your nan and granddad telling you what to do, your other nanny...

-Yeah.

-But you are really excited?

-Yeah.

Well, the children might be excited, but it will be down to Gary and Claire to transform this house

into a large family home.

Mum and Dad have given themselves just a month to do most of the work before moving in. No pressure, then!

Their budget is a healthy 20,000-30,000,

but, remember, that is to cover a pretty large property.

-Did you ever imagine you'd be buying a house as large as this, ever?

-No.

No...it's... I'm always looking... I'm always looking around for something,

and Gary says, "Don't look! Don't look!"

-And of course I found this, so you can't say that to me any more.

-No, I can't, no.

-Gary, she did quite well, didn't she?

-She did very well, yes. Very well. I'm very pleased with it.

So it seems like this has all really worked out for you. I can't wait to find out what happens.

Hopefully, it'll be great.

Talk about one big happy family!

Gary and Claire have made a brave but exciting step here,

and I'm sure family relations will continue to blossom.

There's a lot to do here, though, and in a short space of time.

And building work tests even the strongest of bonds.

You can find out how it all goes for them all later in the show.

Coming up, in Nottingham there's a flat which certainly seems to hit the mark.

Second box ticked!

We return to Herne Bay, Kent, to see if it's all happy families.

I think my brother thinks it's really good and I think it's brilliant.

But first, did Suhail's massive refurbishment keep him on his toes?

It was a challenge, I had to keep running backwards and forwards.

In Stoke-on-Trent, Staffordshire, we came across one of those properties that excites,

disappoints, scares and exhilarates all at the same time.

Described as "a spacious period three-storey five-bedroomed mid-terrace house",

this place had seen better days, to put it mildly.

There was damp and decay and, worst of all, subsidence.

But with many original features still in situ, there was a glimpse

of what it once had been and could maybe become again.

These flashes of its former glory were enough to encourage airline pilot

and sometime property developer Suhail to part with £125,000 to take on this massive project.

-You must be doing this for more than the money?

-Well...

-Because there are easier ways to make money.

Yes, of course. But, I mean, it's passion, really.

It's getting something like this,

and developing it and changing it to something beautiful.

Having given himself a budget of £100,000, Suhail and a team of builders

set about returning this house to its former glory.

Now, 15 months later, we're back to see how high-flyer Suhail has got on.

Well, underneath the scaffolding there are significant changes.

There's a new roof, windows and external plasterwork.

While inside the restoration project is in full swing...

..with traditional fireplaces planned in modern centrally heated rooms.

The kitchen area's been opened right up ready for contemporary kitchen units and appliances to be fitted.

It seems Suhail, along with his main builder, Steve, have broken the back of the work here,

but let's go right back to the start.

We had to underpin it first of all.

We started about three months later, after the underpinning had taken place,

rebuilding some of the internal walls that were affected previously by the movement,

so the central wall of the house, basically, has been rebuilt all the way up,

at least 90% of it, and it's all original bricks that we actually used.

Once the walls of the house were made sound, there was still a fair amount of internal structure

that had to be replaced.

Well, when we inspected all the floors, we found there was a lot of damage there

because of woodworm and other stuff. So we had to change all the floors in the house completely,

apart from those, like, six boards in here and maybe about four boards downstairs,

but everything else is new.

With walls and floors sorted he was on his way to turning the five bedrooms and bathrooms

from their previous sorry condition back to their original state.

# I'm on my way from misery to happiness today

# Uh-huh, uh-huh, uh-huh

# I'm on my way from misery to happiness today... #

Suhail has also enlarged some areas, such as the bathroom,

to locate what will be a great shower unit.

And he's opened up beneath the eaves to create extra cupboards in the top two bedrooms.

This wasn't the only place he found more space.

OK. Well, while we were actually putting the roof on

we just discovered this massive area in the loft in there,

so we actually created this opening in here,

and as we've gone in there was this massive place,

which actually we thought of creating a new beautiful bathroom,

and we kept sort of... Well, we installed the window which has given us a lot of nice light,

and we kept the beams as original, and obviously we changed it into a lovely bathroom,

so people can have a bath in here, looking at the stars.

# All the stars are coming out tonight

# They're lighting up the sky tonight for you

# For you... #

And Suhail's been a bit of a star to take on this house.

It was in quite a desperate state, and to get it to this stage is some achievement,

especially when you live 40 minutes away and have a full-time job as an airline pilot.

It was a challenge, I had to keep running backwards and forwards

from, you know, where I am and where I work,

and, again, it's really thanks to my wife as well who's actually been looking after it quite a lot,

and she's been working quite a lot and actually, you know, keeping it going.

And, you know, thanks again for people like Steve who's absolutely a bar of gold, five bars of gold!

He's absolutely great. He's been doing a fantastic job in here.

If it wasn't for him, really, we'd be well behind.

Five-gold Steve must have had to work hard as practically everything needed replacing or refurbishing.

But how many gold bars did it cost to get the job done?

Well, we set a budget of £100,000 to actually spend on the house,

and we're hoping we can actually get away with 80,000 maybe or 85,000,

but, again, it doesn't matter. We're around there.

But £100,000 spent on a property that was 125,000 at auction

means, including costs and fees, that his total outlay will be over £225,000.

So has he flown too high here and burnt his wings? What do two local estate agents think?

It's a lovely character building, well-sized,

but still a bit of a work in progress.

This is a fantastic property, wonderful period property.

Great room sizes, everything here is large. It is terrific.

Suhail generally looks to sell his purchases on once completed,

but if he couldn't immediately sell this house, how much could it rent for?

Once renovated, I'd put this property on the market for £995 per calendar month.

I would say that you were looking at somewhere in the region of £850 per calendar month.

Those rental figures represent between £10,000 and £12,000 a year, or a yield of around 4%.

So would his £225,000 investment fare better if resold?

Once the property has been fully renovated, I'd expect to put the property on the market for £240,000.

Current market value of this property is somewhere in the region of £225,000.

I think that's a bit low,

cos there's no houses like it in the street, in the area, that are for sale,

and I'm very confident I'll get a bit more than that.

Suhail had a price of around £300,000 in his mind,

so the figures do seem disappointing, but it's not fully finished,

which will make a big difference. What does he plan to do with the house now?

Well, I will aim very much to get the price that I'm actually looking for or even just near it,

and move on for the next project.

I'm in Nottinghamshire, in the leafy suburb of Bilborough.

Well, I'm a few miles from Nottingham city centre to see a two-bedroomed flat

which the auction catalogue described as being "an ideal investment opportunity".

Well, one of the key things for such a thing would be location.

Well, this place certainly stacks up from that point of view.

So with one box ticked let's see what it's like inside.

The guide price of this ground-floor flat was quite attractive too, just 42,000.

Well, the next thing you want to be looking for is a place that doesn't need too much money spending on it

to bring it up to scratch.

And I have to say at first glance this place is again doing pretty well. A little corridor there,

a private corridor, and then into what is a main open-plan living area.

I really like this room. You've got light coming in from the garden,

and it's just a really nice-sized space. Leading off it,

you've got your two bedrooms and your bathroom and then through to the kitchen.

And, joy of joys, look at this.

It might not be the most up to date, and certainly, yeuch, it needs a bit of cleaning,

but I think get a professional cleaner in here and it could be sparkling,

so second box ticked!

# Just look to the good, just like I told you that you would.... #

So far, on the face of it, this leasehold ground-floor flat is looking good.

It has a decent kitchen, access to a shared garden and plenty of space.

So, through here, you've got your bathroom. Needs a lick of paint, but looks in reasonable condition.

And then another thing you really want to look for in rental property is good-sized bedrooms.

And again the property does tick that particular box.

Front of the property here, two bedrooms, double-sized. Great stuff.

However, that's all the pluses out the way. Down to a few negatives.

Come in here and you can see round all these walls this black, kind of damp thing going on.

Now, they're on internal walls as well so I really don't know what is causing that.

My fear would be that the damp-proof course under the floors in some way got damaged.

In which case that is going to be quite expensive to put right.

# Some places they get mildew and others get too hot

# Some places are so damp that everything you've got just rots... #

This damp is clearly more of an issue that I first thought.

If you look closely, most of the rooms have some signs of dampness.

So the first thing to do is to get it checked out and sorted.

I'd definitely recommend a survey before buying this flat,

because what might look like a good buy might end up being a bit of damp squib.

With a leasehold property, it's always worth checking the legal pack.

If you buy a property with a short lease, it may be difficult to get a mortgage.

It will cost you money to extend the lease. Luckily this place has a pretty decent 99-year one.

What does a local estate agent make of this property?

Basically, if you buy something for rental,

you don't want to go spending an awful amount of money,

so with it being double-glazed,

and the kitchen and bathroom's in, there's no expense there.

There are signs of damp. It does need major cosmetic work...

new carpets, redecoration... Kitchen and bathroom are fine.

Just needs a good general tidy round.

What could you get in terms of rent for this two-bed flat?

I think it'll rent very quickly.

They usually stop on the market for about four-six weeks.

Figureswise for rent, you're probably looking about £450 per calendar month.

What about if you tried to sell this flat that was guided at £42,000?

If it was up for sale, realistic valuation, you're probably looking about £70,000.

Well, there are some intriguing damp issues to resolve,

but I think spend a bit of money on this place and it will be a good rental opportunity.

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

Lot 24 is the two-bedroomed ground-floor apartment

with gas central heating, double glazing. 38 to start me, then?

38 I have. Thank you. At £38,000.

At 38. 39 is bid.

40,000.

41. 42.

42. 43? Or 43,500?

43,500.

43,500. 44,000. 44,500.

45,000.

45,500.

46,000. 46,500.

47,000. 47,500.

48. 48,000. One more. 48,500.

49. 49 is bid.

49,500. 50,000.

50,500?

50,500.

51,000.

51. Bids are all yours.

51,000. 500 again? 51,500.

52.

52,500? 52,500.

52,500.

You sure? £52,500, then. Going once.

Going twice. Third and last time.

Sold at 52,500 to number 53. Thank you.

For £52,500, the new owner is Barry.

He already has a portfolio of ten properties and has bought at auction before,

but this time, apparently, Barry didn't have time to do

what I regard as some rather essential pre-auction preparation.

-Barry, good to meet you.

-Good to meet you, Martin.

-Congratulations.

-Thanks very much.

-So here we are standing outside the flat you've bought for around £50,000.

-That's correct, yeah.

-Which you haven't seen yet.

-No, not inside, no. Just through the window.

So how do you feel now, standing outside it, having not got a clue what's behind that door?

A little bit apprehensive because you're here.

If I'd the luxury of being able to go in on my own, I'd be a little bit more confident.

But the main things are going to be the bathroom and the kitchen,

so as long as they're not too bad, then, I think I should be OK.

-Right. Well, I think the moment has come.

-OK.

-Lead me into your new house.

-I will do.

Thank you.

-After you.

-OK, thank you.

I don't know who's more nervous, me or you, actually.

-But here you go.

-Wow!

Well, no shocks so far.

-It's quite a nice room, actually. Lots of light coming in from the garden.

-Yeah, reasonable size.

One thing I did notice. A bit of damp on some of the internal and external walls.

-Obviously I didn't spot that looking through the window.

-No kidding! Come through to the kitchen.

-OK.

-I quite like the layout.

Big space here, bedrooms going off there. Then you come through here into your kitchen.

Well, that's a result, yes. Reasonable kitchen...

which was one of my concerns that I was going to have to put a new kitchen in.

-As a starting point, what do you think?

-Yeah, reasonable. I've been in a lot worse.

-So it's good.

-Well, listen, there's the bedrooms and the bathroom for you to explore.

-You go off and do that and I'll see you in the garden in a minute.

-Lovely.

# I get around, yeah, get around, round, round, I get around... #

Not only is this the very first time Barry's been inside the flat,

but he also didn't read the legal pack or get a pre-auction survey.

Not ideal if you're shelling out £52,000 on a leasehold property.

But he did at least do some research on the area and how much rental or resale value he might achieve.

So now you've had a chance to look round the whole flat, what do you think?

Yeah, it's OK, really. A little bit concerned about the damp.

I wasn't expecting that because of the age of the property.

But, yeah, I'll have to get my builders round to look at that and see what needs doing.

But, yeah, the rest of it, bathroom, kitchen just needs cleaning up and redecorating, really.

New carpets and then get it on the market to rent.

So on a happy scale of 0-10 where would you place yourself?

-Er...about 6 or 7, really.

-OK.

-If I'd have paid less, I'd be slightly happier.

Any idea how much you're going to have to spend to sort it out?

As little as possible, really. Maximum, I'd like to think, couple of thousand, 2,000-3,000,

depending on what needs doing with regards to the damp.

-And who's going to do the work?

-I've got a good team of builders, plumbers, electricians,

who, hopefully, as long as they're not tied up on other jobs can get round here pretty sharpish, really.

£2,000-£3,000 isn't much of a budget.

Fine if all you need to do is redecorate and carpet,

but if the damp problem is a major issue, then the budget will have to rise significantly.

However, with Barry not getting a survey done, this is still an unknown,

but it seems Barry's not averse to taking the odd risk and relishes a challenge.

-Tell me a bit more about you.

-OK.

I worked in financial services for about 25 years,

the last ten of which I was working for myself as a mortgage broker.

-Oh, wow!

-Always dabbled in properties over the years,

bought and sold my own properties,

and recently started to build up a small portfolio of buy-to-lets.

-I built my own house from scratch once...

-Golly!

So now I'm doing more and more of that, really,

so I've sort of resigned from my business and focusing on properties

and spend a bit more time doing things I wanted to do, travelling and seeing a bit more of the world,

-and taking more time out, really.

-Right, OK. Well, what inspired that?

My brother was very ill and, unfortunately, passed away as a result...

-Oh, no!

-..Just over a year ago.

-How old was he?

-He was 49.

-49?

-He was just a few months off his 50th birthday, yes.

It makes you realise that, you know, you're here for a short time,

and you should make the most of all the time you've got available.

So since then, you know, I've been off and rode my motorbike across Europe,

I've climbed Kilimanjaro... done quite a few things, really.

-You rode your bike? What kind of bike?

-I've got a Harley-Davidson.

-Have you?

-Yeah. A real mid-life crisis bike.

-You rode your Harley-Davidson across Europe?

-That's right, yes.

-And climbed Kilimanjaro?

-Not all at the same time.

-No, clearly not.

-I did that last year.

-And you from your financial services background throwing caution to the wind...

-I know, it's terrible.

-Well, listen, congratulations.

-Thank you.

-Good luck with it.

-Thanks.

-We'll see how you get on.

-OK.

# Ain't no mountain high enough... #

Well, Barry broke the cardinal rule when it comes to buying property at auction.

He didn't see it beforehand and, worse, he didn't even read the legal pack.

That could have had really horrendous ramifications.

It seems in this case he got away with it, but, please, don't do it.

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

Time has passed and we need to see if the money has been well spent.

Yes, have those fine-sounding plans come to fruition?

Let's go back and find out what's been going on at the properties.

With its seaside location, Herne Bay in Kent has long attracted holidaymakers,

but when a former children's residential care home came up for auction,

it wasn't the sea air or the Blue Flag beaches that attracted married couple Gary and Claire

and their family to part with 270,000.

It was the space and possibilities that the property offered them.

# Let's stick together... #

So you're jumping from a two-bed to a seven-bed house? What is your thinking behind all this?

We've always wanted to live with parents,

cos we're quite big on family,

so it's kind of a solution that Gary's mum and dad and my mum can come and live with us.

And it's enough space so everyone can have their own space as well.

# Let's stick together... #

So the plan was that the three generations could live together under the same roof,

yet have different areas of the house to themselves.

This building looked like it fitted the bill perfectly.

So, 14 months on, had it all worked out?

Was the house finished? And, more importantly, were they all living together?

Well, the outside looks promising with new doors and windows

and a fresh lick of paint.

It was a sort of kids' home before, so it looked a bit like a hospital.

Everything was pastels, blues and pinks so we had to rip it all apart.

After ripping it apart, Gary started to put it back together again.

So where there was once a large, sterile, pastel-coloured room,

there is now a fantastic open lounge

with laminate floors that run through to the dining area.

That tired old kitchen has been transformed into a modern family kitchen space with all mod cons.

We wanted everyone to have their own area, which was important, that we all had our own space.

The house lent itself nicely to being divided into three,

with two extension areas off the back and one off the front.

So the front area extension has been turned into Claire's mother Carol's part of the house...

with it own lounge...

..bedroom...

..and bathroom. And it's all been fitted out and paid for by Carol.

Whereas one of the extensions at the back has been converted into a separate annexe.

This was the play area,

but we wanted to make a separate space for Gary's mum and dad,

and for them to have their own kitchen area,

and so we made it open-plan living, and they're really, really happy with it.

So now Gary's parents Pam and Bob have their own self-contained unit.

With Bon recovering from throat cancer, it must be great to have his family close at hand.

And yet they have their own space with two bedrooms and a bathroom

to go with that big open-plan kitchen area.

While upstairs there is Gary and Claire's bedroom...

..seven-year-old Charlie's own room...

..and a lovely pink room for four-year-old Milly.

And with another great bathroom suite, this house has just about everything a family needs.

I feel exhausted just looking at all the work they've done here.

This was certainly some project!

It's been a journey, hasn't it?

It has been a real journey.

The children have got involved when we were knocking walls down and things,

-they got really involved, didn't they?

-Yeah.

-They really enjoyed it.

In fact, the family moved in just two weeks after we first saw them.

So Charlie and Milly were not only on hand to help, but to see the changes.

When we first moved in, my mum painted that wall,

and then I think she put the butterfly stickers up.

I think my brother thinks it's really good and I think it's brilliant.

Well, because at my old house we had to share rooms and everything,

but now we've got much bigger space.

The children are so happy with their own rooms, but how has it worked out for other family members?

Is Carol just as pleased about living under the same roof as the rest of the family?

I love my grandchildren. I get to see them every day while I'm here.

And they're a joy to me and I'm really glad that we're all together.

But doesn't she want her own space occasionally?

Er...I'd shut the door in between the hall,

and then it's mine!

This really is a great arrangement.

They've all got their own space, even the dog!

Yet they're all under the same roof and close at hand if they need anything.

How much did it cost to bring this family together?

By the time we've finished the conservatory and the utility room and the garden,

it will be around £45,000, I imagine.

A £45,000 spend seems fantastic value for what they've achieved.

But then Gary did do a lot of the work himself.

They paid 270,000 for the house, so, with costs and fees,

their total outlay will be around 320,000.

What do two local estate agents think of their efforts?

I like the layout of the house. It's done to a high standard.

It's a good family property.

However, I would put a separate external door into the granny annexe.

The house works very well because you've got a central hallway

and then two wings that go off the hallway

and space for a very nice conservatory in the back.

Having tailored this house to their requirements,

clearly, Claire and Gary aren't planning to sell any time soon,

but have they invested around £320,000 wisely?

I'd put it on the market between £395,000 and £425,000.

If this were to be sold, the value now is about £400,000.

-Yeah, that's fantastic.

-Yeah, it is good.

-400,000.

-Makes it all worthwhile if we decide to sell it.

-Not that we will.

-That's really good.

Yes, so despite a potential pre-tax profit of between £75,000 and £105,000,

this is to be their home for the foreseeable future.

What are their current plans?

A few little bits to do just to finish off, and we're going to sit back and enjoy it.

-Yeah, definitely.

-Enjoy the hard work.

-Yeah. Enjoy the life...

-Yeah.

And the generations, you know, cos originally it was my dream to have, you know...

-and we now just want to live it, don't we?

-Yeah.

# So happy together

# So happy together...

# So happy together

# So happy together... #

In the Nottingham suburb of Bilborough,

a two-bedroomed ground-floor flat sold at auction.

Apart from some worrying signs of damp, it was in pretty good condition.

That was all news to former mortgage broker Barry

whose purchase of the flat at £52,000 represented a bit of a gamble.

-So here we are standing outside the flat you've bought for around £50,000.

-That's correct, yeah.

-Which you haven't seen yet.

-No, not inside, no. Just through the window.

-Right. Well, I think the moment has come.

-OK.

-Lead me into your new house.

-I will do.

Thank you.

# I was blind, now I can see

# You made a believer... #

Having looked around his blind purchase, Barry decided he could turn this flat around quite quickly.

And on a budget of just £2,000, which sounded like a bit of a challenge,

but for a man who'd previously crossed Europe on a motorbike

and climbed Kilimanjaro for charity, this flat was going to be a walk in the park, wasn't it?

Well, just one month later, we're back.

And it certainly looks like Barry's taken this challenge in his stride.

OK, in the living room, apart from just general decoration and changing plugs and sockets,

we reinstated the fireplace.

I managed to pick this up from an internet site.

Funny thing was when I bought it and brought it into the house,

it was slightly larger than the chimney breast.

So we had to extend the chimney breast slightly, but that was only a minor expense.

The other thing I did in here was replace the double-glazed patio doors and put in just a single door.

And that was it, really.

That new single door leads out on to the shared garden.

With a flat it's always such a bonus to have access to a garden.

And off the redecorated good-sized lounge is the kitchen

which just needed a wash and brush-up.

But there was of course that damp issue.

OK. Well, as you can probably remember, when we first came in

there was quite a lot of evidence of damp in this room in particular

and other rooms throughout the apartment.

I thought it might have been rising damp,

but I got a specialist round and he assured me it was condensation, caused by the lack of ventilation.

So, as you can see here, I've installed two air vents which allow the air to circulate,

and we've done that in the other bedroom, the kitchen and the lounge.

And that, together with a bit of replastering, has solved the problem.

With the condensation sorted, Barry could crack on with the rest of the rooms.

So the two bedrooms were carpeted and given a lick of paint,

while the bathroom has had a general tidy-up and been redecorated.

With the help of some tradesmen, he turned this flat around in just four weeks,

one week of which he was on holiday in Spain.

But he still met his three-to-five week deadline for refurbishment.

Did he also manage to stick to his original budget?

I was estimating a couple of thousand, really,

and it turned out to be...I worked it out this morning, it was 2,620.

A £2,620 budget on top of his £52,000 purchase price,

with costs and fees, takes Barry's total outlay to around £56,000.

So will his blind purchase see any decent returns?

It's in lovely condition. Very, very good sellable area.

I think all the rooms are a really generous size.

I think the kitchen's nicely appointed, good general accommodation.

Very good access to local schools and amenities, so ticks every box.

It's been nicely finished.

There are a few areas where it could have been improved slightly.

I think there's a little bit of competition for this kind of thing on the market at the moment,

er... but, overall, it's a good finish.

Barry's now undecided whether to rent or sell his two-bed flat.

Perhaps the figures will help him make up his mind.

Rental market, I would consider offers of around £450 per calendar month.

At the moment in the rental market, unfurnished,

I would say the property could achieve in the region of £450 per calendar month.

OK, that's good. Yeah, I was thinking, if I was going to advertise it to rent for 475,

with a view to accepting 450. So, yeah, that's spot-on.

£450 a month rental is £5,400 a year or a pretty impressive 9% yield.

But how would his £56,000 investment fare if sold on?

Saleswise, I would think about offers in the region of around £75,000.

At the moment I believe it would achieve in the region of £70,000.

I'd have put it on for 75 with a view to taking an offer slightly below that,

but, yeah, that's reasonable.

In fact, since filming Barry has managed to sell the flat for £74,000,

giving him a pre-tax profit of around £18,000.

Not bad for just one month's work.

Has he any advice for would-be property developers?

Yeah, do it, go for it. Just don't do it in Nottingham.

Too much competition!

# This town ain't big enough for the both of us

# And it ain't me who's gonna leave... #

Barry might feel that the city of Nottingham isn't big enough for too many developers,

but with his experience and instinct for a bargain he will be tough competition for anyone who tries.

Well, that's it for now. Did we inspire you or put you off trying it for yourselves?

-Make sure you join us next time for more Homes Under The Hammer.

-We'll see you then. Goodbye.

-Goodbye.

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