Episode 2 Homes Under the Hammer

Welcome to Homes Under the Hammer.

Property auctions used to be the territory of builders and developers, but not any more.

All sorts of people are finding what they're looking for at auctions.

They're managing to find themselves some real bargains under the hammer.

Even for the most experienced buyers,

auctions can be terribly exciting and nerve-racking places to be.

But you have to make sure you don't get carried away.

Did today's buyers keep a cool head? Here's what they bid for.

This Telford terrace needs a full refurb and it could be a pushover.

Right, it wouldn't take much to sort that out, would it?

This place in London has lots of rooms but one big problem.

There is no bathroom in this flat - anywhere!

The decor in this Paisley semi feels rather retro.

Reminds me of those 1970s pop videos

with the really funky kind of editing on them.

All these properties went to auction.

We'll find out who bought them

and what they paid when they went under the hammer.

Sold.

This is Dawley in Shropshire, part of Telford New Town,

which was formed in 1968 to bring together some of the local villages.

But Dawley very much has an identity of its own.

It's got a brand new high street with lots of regeneration,

so that's good news.

There's no time to dawdle in Dawley, there's property to investigate.

This bringing together of local communities was very much to reunite

and give an identity to a place that was suffering

due to the end of a mining industry that had long supported the area.

By the 1960s, much of the land around here had been left desolate

by the mines and the factories which subsequently closed,

leaving all sorts of social problems.

Nowadays, the grass is definitely greener

and the property I'm here to see has lovely views over the countryside.

It's this - three bed, mid-terrace at a guide price of £60,000.

Let's take a look.

The view looking out from the house is better than the view looking in.

It appears to be the least cared for property in the street

but there is an enclosed rear garden and parking 50 yards away.

It's undoubtedly got the location and a promising postcode,

all of which get my stamp of approval.

-# Mr Postman

-Mr Postman, look and see

# Oh, yeah

# If there's a letter there for me... #

So what's on offer?

A bit of post to go through!

Through the front door and straight away a bit of a smell

and a very run down feel to the property.

But let's look at the size and things like that.

You've got a downstairs cloakroom which is quite good news.

Stairs up to your bedrooms,

a good-sized kitchen by the look of it,

very, very, very sparse in terms of units.

A strange thing going on with the wall, I don't know what that is.

Then through to a living room, a really good size.

Through to the garden and you've got more storage space there

and, aha, that's what I was looking at, this thing here.

At some point there's been an archway put through here

to give access to, I don't know,

maybe a kitchen/dining room scenario.

That would be much better. I don't reckon it would take much to...

No. Right, it wouldn't take much to sort that out, would it?

Better go put that right. Ahem.

Bear with me.

There you go.

Nobody will know I've been here.

# I'm the invisible man, I'm the invisible man... #

There you go.

I think we've established you can take the wall down or keep it up on a whim.

Luckily, the rest of the house is built of sturdier stuff,

with a downstairs cloakroom, three good-sized bedrooms upstairs...

..and a bathroom with a suite

I suggest you make vanish as quickly as possible.

But generally,

what it lacks in decorative order it makes up for in potential and size.

Hidden under this grime is a decent family home which,

at that £60,000 guide price, could be a very attractive investment.

If you're looking for investment property

you could do a lot worse than Telford.

Buy this place for around the guide price, spend £10,000 doing it up,

get £500 per calendar month in rent, that's around an 8% yield.

You can't guarantee that prices here or desirability

are going to rocket over the next years but that's a steady income

and that's what we want.

# Good thing... #

So, as a rental proposition,

this really does look like it might be a good thing.

As Dawley improves long-term, it may stack up on the resale market.

But what does a local estate agent think?

The property itself needs quite a bit of work doing to it.

It needs a new bathroom, a new kitchen,

completely redecorating throughout.

Don't be fooled by the windows, they are PVC

but they're actually single glazed, so I'd say

you need some new double glazing put in throughout.

Undoubtedly, there is quite a bit of work to be done here

but the house was guided at £60,000.

Although it appears to be a sound rental property,

with the estate agent estimating an income of £525 a month,

could it also pay to sell it on?

In its current condition, I'll give it a current market valuation of £75,000.

Well, maybe Dawley's new day has dawned with rolling hills,

a rejuvenated high street and some good rental returns.

I think a potentially good little earner, this one.

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

Lot number eight is the three-bedroom mid-townhouse

which has far-reaching views to the front elevation.

Let's get it going, 40 can I say?

40 bid, thank you. At £40,000.

45, seated. At 45,000 seated.

Left, 50. £50,000. 55?

Yep, £55,000. 60 is it now?

60.

65. 70.

Shaking his head. I'll take one if it helps. New bidder, 71.

72.

73.

74. 75. 76. 77.

Shaking your head now. 77, with you, left, sir.

At 77... Back in, 78.

79. From the top. Bid 79, left there.

At 79,000 for the first time.

At 79,000 for the second time.

Third and final time at 79,000, all done.

Your lot, sir, well done.

Slightly hidden from view there, the successful bidders

for £79,000 were Clark and his partner, Adrienne.

They're both retired college lecturers

who've switched from teaching to learning all about property developing.

# But I lived and I learned... #

-Adrienne, Clark, good to meet you both. Congratulations.

-Thank you.

Tell me why you wanted to buy this place.

Well, it's an investment.

It's to use the money that we've accrued from other properties

and apart from that, we know the area

and it's quite a nice house, although not in this state.

It will be. Tell me a bit about you two. What's the relationship, the business relationship?

Never met him before in my life.

Who are you?

-Is this your full-time job?

-Just now, yes.

-What's your past jobs?

-We were both college lecturers.

-OK. So, moving away from teaching to...

-Something a little less stressful.

-Oh, really?

-Oh, yes.

Hmm. I need to have a word with you.

OK, good. There's no stress in property developing at all(!)

It's easy. Nothing goes wrong.

# I'm easy like Sunday morning... #

Oh, if only it was that straightforward.

But having done a number of other properties,

they know it's anything but easy.

# Easy... #

What's the idea in general for it?

Is it to do it up and sell, or to rent it out?

To sell, preferably.

-If they don't sell because of the market then we'll rent.

-Right.

You talk about "they", what do you mean "they"?

-We bought more than one.

-When?

-At the same time as this.

-Did you?

-The next lot.

-Oh, right.

-And then about five or six lots later.

We bought three at that auction.

All done?

Your lot, sir, well done. Your lot, sir, well done.

Your lot, sir, right in the corner.

# You win over and over again... #

That was a bit of a spending spree.

With three falls of the hammer, they just triple their workload.

What challenges do you think taking three at the same time is going to bring?

-Time, probably.

-Organisation, basically.

It could bring economies of scale.

Three bathroom suites, three kitchen units, three kitchen outfits,

three lots of work for builders you might want to employ.

There are some bargains out there for two-for-three.

Instead of buying one or two, we buy three!

So tell me specifically what the idea is for this place.

Basically, flooring, decoration, kitchen, bathroom,

moving a few walls here and there.

-Something like that.

-What's the budget?

Hopefully we should be able to do it in about 10, £10,000.

What about the other ones?

Are you going to run them simultaneously as projects?

I've got a deadline of three months to get it all finished.

-Just this one or all of them?

-All of them.

-Wow.

-We're hoping to do this one in about two months.

One of the other ones just needs redecoration,

new kitchen, new bathroom. That's a fairly straightforward one.

The other one is similar but needs central heating

and boiler put in so that'll be a bit longer.

But as we're working on this we can have plumbers, electricians etc

working on the other ones. There will be some simultaneous work done.

After this, if it's successful?

Don't know, we might go back to auction

or we might run away into the sun if we get a good price for all three.

Probably see you at auction.

Well, good. Congratulations. Well done.

I look forward to seeing how you get on.

Thank you.

Let's hope that this big spending spree

brings big profits for Adrienne and Clark.

But it's going to take more than nervous energy to sort out this

and their other two properties.

How are they going to get on? You can find out later in the show.

Today I'm in Leyton in East London, just a mile or so

down the road from Stratford, site of the 2012 Olympics.

Stratford's regeneration has been dramatic but Leyton hasn't missed out either.

With large, affordable Victorian houses

and a fast train line appealing to young professionals,

it's got a sporting chance of increasing its value in the future.

The property I'm here to see is a short athletic sprint from the Games site

but more importantly, it's a ten minute stroll to the tube station.

It's also a rather attractive road.

It has these lovely bay-fronted Victorian houses on.

I'm here to see this flat, it's on the ground floor.

It had a guide price of 145,000.

Well, favourable first impressions -

the sash windows remain and the paintwork and rendering look OK.

It's even got the original path.

The number of bedrooms in the flat?

I'm not sure, since the catalogue just states "four rooms". Make of that what you will.

Even though this is Victorian, they were designed as purpose-built flats

so you've got one on the ground floor and one going up there.

A bit dated, first impressions, a bit yellow,

and quite flowery in here.

Obviously, you need to consider this decor, you need to really spruce this place up, modernise it,

but what I love is the ceiling height.

This is a really spacious room.

Most houses would have the same size lounge as this.

Hoping there might be a nice original fireplace behind there,

but look at this gorgeous bay window.

This is quite a peaceful road so it will be quite good if you could keep these original sashes,

because they look absolutely beautiful.

First thoughts, not bad for that guide price.

It certainly feels like a standard, spacious Victorian property at the moment.

Along from the front reception is a decent size room next door,

which I suppose must be the bedroom.

There's a window out onto the side return,

which leads to the main part of the garden.

Then, at the back of the flat, it all gets a little odd.

We've got a long, long corridor into the back of the property.

A bit of an anonymous room.

Don't really know what it's currently being used for.

And, erm, gosh. A very small, dark room here.

A bit of a waste, really.

Through here we've got the kitchen.

There is a sink. You couldn't really call it a kitchen at the moment.

Toilet through there,

but that tells me there is no bathroom in this flat, anywhere!

So we've got to re-jig this layout

and seriously think about how we can add a bathroom.

Now, my thoughts are, use this as the bathroom.

Knock this into one. You'd have to block up the back door so you could have a nice bath.

You'd need access outside.

Well, you could put the access along this wall somewhere.

What about having this window as a doorway?

And how about taking this wall out?

Then you can have a lovely, large open-plan kitchen-diner at the back of the house.

You can have access into the garden. I think that will be the most cost-effective way of doing things.

Two large bedrooms at the front

and a really nice open-plan kitchen/eating space at the back of the property.

# It seems so, so unusual... #

I really think I've cracked it.

Creating a large kitchen/living area out of these two rooms

with access to the back garden should help sort out the unusual layout here,

with the added bonus of a proper bathroom.

Alternatively, you could create access to the garden

through the bedroom which looks onto the side return.

Either way, you're sorted.

We've invited a local estate agent along to look at this flat,

guided at £145,000.

What does he think of its unconventional layout?

My impressions of this property, certainly unusual,

in that it doesn't have a bathroom

so I don't know what the previous owner's done,

but it's certainly a renovation project. It would be great for a developer.

So what could be the best way of maximising the layout here?

For me, the most cost-effective route would be to put the bathroom where the small kitchen is now,

then place a door to the side and have an open-plan lounge-diner so you're keeping the two bedrooms.

What's the flat likely to be worth

after a refurbishment and some layout changes?

After you've spent £20,000-£25,000,

I would estimate it to be £200,000, possibly £210,000, depending how good the job was.

For a buy-to-let investor, what's the rental potential here?

The rental market for this type of property is very strong.

Rents have gone up in East London.

I would estimate the value to be £900 per calendar month.

This is a decent flat for what seems a reasonable guide price.

Get a bathroom in and it could provide a reasonable instant profit.

But, for me, this feels like a long-term investment

in an area that could swim in the wake of nearby Stratford.

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

Right, next lot it Lot 6.

Four-room ground floor flat.

Popular area of East London. I don't know... 130?

130 on my left.

135.

140... 140... 145.

150. Round it off to 150.

150. 155.

160?

156.

Have a think. 155 down here.

156 elsewhere.

156 at the back. 157.

158.

158. 159. 160?

Yes? 161.

162.

163.

164.

165.

165.

166.

If not, 165, first time, second time,

third and last time, if you're all done?

Sold, 165. Well done, sir.

That final successful bid of £165,000 was made by Mahbub,

who's bought this with his business partner, Tariq.

Mahbub lives locally and works in the public sector

and has four other buy-to-let properties.

I wanted to find out what he saw in this flat.

It wasn't the bathroom, that's for sure!

-Mahbub, congratulations. Well done.

-Thank you.

-You must be really pleased you've got this flat.

-Very happy.

-Was it the first time you'd been in an auction room?

-First time ever.

-How much research did you do?

-Plenty of research.

I know the local area, I read the legal pack,

I had a budget set, once I identified the property,

I read all the paperwork and everything seemed to fit the bill.

Did you look around the flat prior to the auction?

Yes, I came round twice. First time, I came round, had a look.

Second time, I brought my friend who is the business partner,

we had a look and decided this was the one we'd go for.

-What attracted you?

-Basically, it's the location, plus the budget

and the condition - it's a blank canvas and we can do what we want.

-Why are you doing this?

-I have a passion.

I've always been interested in property.

I've bought a few properties over the years. I intend to keep them.

This is the first time I've been to an auction.

Me and my friend, we've raised some money, and here we are.

# Talking about the passion... #

Mahbub and his business partner have set a renovation budget of £20,000.

They hope to sell the flat on once complete.

But the first thing they need to address

is sorting out that vital missing detail.

You've got one big problem here

and that is that you don't have a bathroom.

No.

Where do you intend to put the bathroom?

I've walked around this flat many a time thinking,

"Which room should I put it in?"

How are you going to do it? The layout as it is doesn't work.

It doesn't work. There's a ceiling price to these properties.

We can chop and change - take out walls, chimney breasts,

but I think it'll cost too much and we won't recover the costs.

We're going to keep the layout as it is,

except where the kitchen is now, we'll have a shower room, and the toilet will stay separate.

And where we are now, this will be an L-shaped kitchen.

We'll block this entrance and create an entrance in the hallway

so you have a lounge at the front, a bedroom, second bedroom, kitchen-diner,

a shower room, which will be high spec, and a toilet.

What are you going to have in that little, dark room through there?

A bedroom with the entrance from the hallway.

-That's a very small bedroom.

-It will be, yes.

So one huge bedroom and one very small bedroom.

You can get a bed and you can get a cupboard.

What concerns me is the access into the garden.

Where will the door be?

With the properties in this area, the access to the garden is through the bathrooms or the shower rooms.

It's nothing unusual with the layout of these properties.

I know you say that's not unusual but you've got to think,

"Do people want to go through their bathroom to get to the garden?"

There MUST be a better solution.

How about the bedroom... a bedroom would be a much more suitable place to put the door.

You are possibly right and I don't disagree with you,

but I think the market we're aiming for

tend to use the bedroom a lot more, whereas the bathroom or shower

will be used for 10 or 20 minutes, so during the day, you'll be away,

so I think it's fine.

# We just disagree... #

I think Mahbub and I will have to agree to disagree on this one.

His solution may be cheaper, but I don't think such an unconventional layout will appeal to everyone.

He may end up limiting the property's attractiveness on the resale market

instead of broadening it.

How long do you think this project will take you?

-The builder says about two months.

-But realistically?

I think we're talking about ten weeks.

Are you going to be getting your hands dirty on site?

I'll be here and so will my nephews, my partner's son will be here,

and my father will pop around and say hello to the builders.

-I can't wait to see what you do. Congratulations.

-Thank you.

So access to your garden through your bathroom?

Hmm, I haven't seen that in a while.

There's a reason for that - that's because it's not a great idea.

I do know why he's going down this route. It makes financial sense.

But I hope there's a different yet cheap plan that may emerge.

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

Coming up - in Paisley, this place needs expert help.

It has a slight air of DIY about it.

We return to London to see how Mahbub's getting on with his flat.

It's worked fine. My dad's been here every day guiding me.

But, first, back in Telford, do Clark and Adrienne recommend multi makeovers?

-Not three at one time.

-Not three at once.

In Dawley, Shropshire, we came across a 1970s three-bed terrace

that had been sadly neglected.

Sitting in relatively well-kept area,

it definitely appeared to be the worst house on the street.

That wasn't such a bad thing,

as it meant there was plenty of scope for improvement.

It could also be a good investment,

which is exactly why ex-college lecturers Clark and Adrienne

plumped for it at auction, purchasing it for £79,000.

But it wasn't the only house to catch their eye that day.

-Well, we bought more than one.

-When?

-Straight after this.

-Did you?

-Yes, the next lot.

-Oh, right.

And then five or six lots later. We bought three at that auction.

The plan was that by doing three properties at once,

they could co-ordinate the workflow,

moving the trades from one house to another.

With this particular one, they hoped a budget of £10,000 would suffice.

# Just follow steps one, two and three... #

But had their triple plan been three times better or three times worse?

Was it heaven or hell?

Well, nearly five months later, we're back.

And, wow! The front of the house is almost unrecognisable.

Gone is the jungle of plants and a tired-looking exterior,

to be replaced by a new lawn and bedding.

The rediscovered path now leads to a property with windows and doors replaced.

We practically rebuilt the house. We've left the foundations.

Having stripped the house back,

it was a case of carefully putting it back together again.

The electrics has had work on it, the plumping has had work on it,

new cloakroom, flooring throughout, every surface has been painted.

Just one or two jobs.

They've really gone to town here and nowhere more so than in the kitchen.

Whoa. That's impressive!

In the kitchen here, it's completely been redone.

Over here was a very wonky arch that's all been taken away.

We've moved the wall back so it's made a very spacious dining-kitchen.

That's all been fully fitted with integrated units and it's really nice now.

The kitchen is a fantastic improvement

and they've reworked the space very well.

Upstairs, this high quality refurbishment continues

with the three bedrooms modernised and redecorated.

And in the main bedroom, again,

they've successfully maximised the area they had to play with.

In this bedroom, in this corner there was an old heating system,

which came out to about there.

Also, there was two walk-in cupboards,

one accessed from this room

and another through a door which had access to the back bedroom.

We had both of them taken away

and, in doing so, we've opened this room right up

and it's now, well, a much more usable room and a lot bigger,

so really happy with the way it's turned out.

As if that wasn't enough, they've also pulled out all the stops

with a completely renovated bathroom.

It comes not only with new shower, tiling and contemporary unit,

it also has underfloor heating to boot.

And, finally, that garden has been brought back to life.

This development alone has clearly taken a lot of work

but this was just one of three, so how have they coped?

It's been a headache but it's been good

because when we've had problems with the work and those delays,

we've been able to the other properties and do work on them.

It's had its ups and downs.

We haven't been here every single day

but...it's been... it's been busy.

It was always going to be tough doing three together

but they'd hoped it would be more efficient by saving them money and time.

-Originally, I wanted it done in two months.

-And I said three.

It's taken five so I was closest.

I did say though, erm, all three properties finished in three months.

That hasn't happened.

OK, so they were slightly optimistic about their timescale

for such a comprehensive renovation.

What about their finances?

The budget was £10,000, hopefully, with a contingency of £5,000.

We have spent all that. It's been at least the £15,000.

A £15,000 spend on top of their £79,000 purchase price

will take their total outlay before costs to around £94,000.

With Clark and Adrienne hoping to sell this house ASAP,

will that level of investment make a decent return?

What do two local estate agents think?

The property's been very nicely decorated throughout,

it's got nice, modern fitments which have been put into the property.

I particularly like what they've done with the kitchen,

making it more of a family kitchen-diner

and really done well throughout.

The property has been done to a really high standard.

It's very spacious, very clean, bright,

all the right selling colours.

They've gone the extra mile, perhaps more than they needed to.

This area will have a ceiling price,

so have they spent too much to get a decent return?

Surely this quality of finish should attract buyers and renters alike.

I would see the property achieving around £575 per calendar month.

I would suggest an asking price

of between £550 to £575 per calendar month.

A bit low.

I would have thought so. More the £600 mark, maybe £625.

Rental really isn't the way they want to go with this house

but £575 a month would bring in £6,900 a year -

a reasonably healthy yield of over 7%.

But with £97,000 invested so far,

could it make the returns they were hoping for on the resale market?

I would recommend an asking price of £105,000.

I would see the property achieving around £105,000.

That's a little bit low but it's in the ball park. Not too disappointed.

So perhaps a pre-tax profit of around £11,000, minus selling expenses.

But, on reflection, have these two former lecturers

learnt a few lessons about developing?

We'd go back to auction. We would, wouldn't we?

Not three at one time, though. I think that was possibly a mistake.

# Everybody's got to learn sometime

# Everybody's got to learn sometime.... #

# One, two, three four! #

MUSIC: "Pencil Full Of Lead" by Paolo Nutini

Paisley is the largest town in Scotland.

Just 20 minutes from Glasgow, it gained worldwide fame

when it lent its name to the patterned fabric that was produced here in the 19th Century.

It's also formerly home to actors David Tennant, Gerard Butler,

and the birthplace of singer-songwriters Gerry Rafferty and Paolo Nutini.

Take it away, Paolo!

# Food in my belly and a licence for my telly

# Nothing's gonna bring me down. #

Well, just a mile from the centre of Paisley

and close to Glasgow International Airport is Ferguslie Park.

The area hasn't had the best reputation in the past.

In fact, it was one of the first places in the UK

where they demolished houses that had been built in the 20th Century.

But the local council is ploughing a lot of money into the area and it's on the up

so let's hope the property is slightly more attractive inside

than the weather today.

# Why does it always rain on me? #

Well, a little spot of rain never put me off before.

So, what have we got? It's described in the auction catalogue

as a two-bedroomed semi-detached villa with a guide price of £35,000.

The exterior needs attention and the front garden could do with a tidy up,

as could the greenery that's growing out of the guttering.

But it does look like you get a lot of house for your money,

so is it as promising inside?

At first glance, it is.

That's quite pleasant. I like the staircase, the way it bends round -

a bit of character there.

Then up on to a higher level from where you come in.

Very nice-sized front living room with this slightly bayed window.

It looks in need of a bit of tender loving care, but a good size.

Erm, and that's a bit of a surprise.

A downstairs loo which looks like it's been refurbished,

although to what standard, I'm not sure.

Then through to the kitchen.

Again, it has a slight air of DIY about it,

if I'm absolutely honest.

But it's not a bad size.

Again, the high ceiling giving a feeling of space.

Interesting cupboards. Look, a bit of a water tank there.

OK, an interesting place for it!

But, all in all, as a starting point, pretty good.

Well, no major problems for this house so far, which is great.

OK, you'd want to put in a new kitchen

but, although the only bathroom is downstairs,

you could keep it if you were planning to rent it out and just freshen it up.

A new fire in the living room could provide a lovely focal point.

And the windows let a lot of light in so onwards and upwards.

So, upstairs, and I really do like this really big staircase.

It gives a good feeling of space to the property

and modern houses don't really, because of space constraints,

give enough space to staircases and landings,

because there's a big landing with a cupboard on it.

The only downside is it does mean this fairly substantial property

has only got two bedrooms, one at the front there.

Actually, it doesn't look in too bad condition.

And then through to a rear bedroom,

where there's an interesting choice of wallpaper.

It reminds me of those 1970s pop videos

with the really funky editing on them.

Yeah. A bit of wallpaper required, I think!

The wallpaper is enough to make your eyes go peculiar.

Another strange feature upstairs

is the toy cash machine built into the wall in the front bedroom.

It's an interesting quirk but I'd say it, ahem, has to go.

And, while you're at it, you need to investigate these signs of damp.

It doesn't look too bad,

but you'd want to make sure the water isn't getting in somewhere.

Moving outside, it gets better.

Well, sort of.

Yes, there's work to clear the back garden but it is a decent size.

On a drier day, this would be great for families to enjoy.

but with a front garden and space for off-street parking,

I think this place has enough going for it.

At a guide price of 35,000,

we asked a local property expert to come and give us his thoughts on it.

# If you're thinking you're too cool to boogie... #

The property is situated at a junction

and it is overlooked by other properties.

Sadly, some of them are boarded up,

which, from a marketing point of view, would not be great

if it was to be sold at the moment with them in that condition.

But I do feel, once it's renovated, that it, hopefully,

will be in a condition that's going to be appealing to many buyers.

So he thinks this type of property would suit a developer

who would do a quick £5,000 to £10,000 renovation then rent it out.

So what kind of rental could this place achieve?

In the current market, I feel the property will rent

for between £350 and £400 per calendar month.

If the property was renovated to a good standard,

what could it achieve on the resale market?

Once renovated, I feel the property will be worth in the region of £55,000 to £60,000.

It may not be the most glamorous of areas,

but there's a good demand for rental property.

I think this house is a pearler.

Yes, it needs tender loving care but remember that guide price.

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

Two-bedroom semi-detached villa in Paisley. Guide price is £35,000.

I'm going to look for a start here about £25,000. How does that sound?

£25,000 on the phone. I've got £25,000.

Anybody else coming in? 26.

27. 28.

You're in at 29.

You're in at £30,000. Thank you, sir. Nice and clear.

£31,000.

32.

I'll take 500 if it helps.

Back in at 33. £33,000.

£33,500.

34. At £34,000.

It's against the phone.

Back in at £34,500. 35.

The gentleman at the back of the room at £35,000.

Anybody else, be quick, please. We've got £35,000.

Out on the phone?

£35,000 it is.

Sold to the gentleman standing at the back of the room.

And the successful bid of £35,000,

bang on the guide price, came from Colin.

# We've got some half-price cracked ice

# And miles and miles of carpet tiles... #

He describes himself as "a bit of a Del Boy character",

as his work involves buying cut-price unwanted goods from shops

and leasing companies, and then selling them on.

I met him at the property to find out more.

Colin. Lovely to meet you. Congratulations.

Tell me why you wanted to buy this place.

I didn't.

You didn't?!

No. It was... Not a mistake. I went to buy another one in Hamilton.

-It was pre-sold, during the auction.

-Ah.

This came up at the right price, so I bought it.

So, had you seen it beforehand?

I hadn't seen it. I hadn't read the legal pack, which is a nightmare.

I hadn't done anything. Didn't even know what street it was.

-You know how badly that could have gone wrong, don't you?

-Uh-huh!

That's how, straight after the auction,

it took me two hours to get here, but I had to get here.

Everybody was winding me up. "Colin, it's only a brick".

THEY LAUGH

Well, joking aside, Colin's broken all Homes Under The Hammer rules.

He should really know better, because he says he was inspired

to start buying properties in the first place by our programme.

He now has 11 other properties which he rents out,

so at least he's got plenty of experience behind him.

What are his plans for this one?

Get it done, seven to ten days.

-Seven to ten DAYS?

-Yes.

Right. To do what?

Rip everything out.

Put everything back in, and rent it out.

What do you mean by "everything"?

Back boilers, boiler,

kitchen, bathroom,

flooring. Everything out, and I'll freshen up. It's a good mission.

-MARTIN LAUGHS

-Yeah! No kidding!

But it will be done.

MUSIC: "Superman Theme" by John Williams

Seven to ten days? He must be Superman!

Within that time, Colin plans to paint the outside of the house,

tidy the garden, and fix that guttering,

which should stop any future damp in that bedroom cupboard.

In the living room, he plans to replace the fire.

And, as if that isn't enough,

to re-plaster, redecorate, and carpet throughout.

I feel exhausted just thinking about it.

I reckon he'll be calling in quite a few favours

from friends in the trade to help him.

He's also going to get some special help from his daughter, Laura,

because, in every superhero, there lies an Achilles heel,

and with Colin, it's not kryptonite.

I'm colour-blind.

-Right.

-So I'm not very good at picking paints or carpets.

MARTIN LAUGHS

So, she helps me pick the paint.

She'll do all that kind of work with me.

My boy, he'll come and help me strip the house.

So how much are you going to spend on the renovation?

£4,000.

£4,000?!

That budget seems as tight as the turnaround.

Colin says the biggest expense will be the central heating,

but he's managed to get a good price, even for that.

Because I use the same guy all the time,

I get it done for about £1,900.

For a full gas central heating?

-Six radiators and a boiler.

-Right.

Colin's confident about his budget and timescale.

He's hoping to get around £450 a month in rent,

which will give him a healthy yield,

as long as he can reign in his costs.

But he has many contacts in the trades to help,

and a sharp eye for a bargain.

# Yeah, somebody lend a helping hand. #

Well, I guess, when we come back in two weeks' time,

will it actually be done?

Oh, yes. It will be done. And tenanted.

-Right. And you'll have a tenant in here, as well?

-Yes.

Wow!

Something tells me you're probably right! Good.

Congratulations! Good luck with it.

Well, I've heard a few ambitious timescales and budgets in my time,

but Colin's is way up there.

But something tells me, he's got a good chance of achieving it.

Will he or won't he? You can find out later in the show.

Martin, as we both know, the hard work really starts

when you've bought the property.

You've got to be prepared for a few surprises along the way.

So did today's buyers encounter problems,

or unearth hidden treasures?

Let's go back and find out.

Time now to return to Leyton, East London,

where, earlier in the programme,

Mahbub and his business partner, Tariq,

bought the ground floor flat in this mid-terrace house

for 165,000.

Mahbub lives locally, works full-time in the public sector,

and has four other buy-to-let properties.

But he and Tariq intended to refurbish this flat,

and sell it.

Although the house had four rooms,

there was no bathroom, just a solitary WC.

But Mahbub proposed a new layout for the flat.

You have a lounge at the front.

Bedroom, second bedroom, a kitchen/diner.

A shower room, which will be very high spec, and a toilet.

Now, what concerns me is the access into the garden.

So where will the door be?

With all the properties in this area,

the access to the garden

is actually through the bathrooms or the shower rooms.

So it's nothing unusual, with the layout of these properties here.

I know you say that's nothing unusual,

but you've really got to think about,

do people want to go through the bathroom to get to the garden?

There must be a better solution.

Mahbub and I just weren't going to agree on this issue.

But what's happened since we met?

It's now four-and-a-half months later, and the flat is finished.

It has replacement double-glazed windows, and a brand-new door.

Inside, the hall's bright and welcoming...

..the front living room's had a complete make over...

..the period fireplace has been opened up and restored...

..and the new window lets in loads of natural light.

The original floorboards have been sanded and waxed,

'and they look gorgeous.

Moving along to the double bedroom, and the original fireplace,

that's come up a treat!

The swirly carpets are now ancient history,

with more lovely floorboards on show instead.

So far, so good.

But what I'm really curious about is the back of the flat.

Did Mahbub stick to his planned layout?

When in the former kitchen, I spy

something beginning with B and that's a bath!

It's been squeezed into what was going to be a shower room.

What a bonus!

So that's the bathroom on the left and on the right is the separate WC,

which has been fitted with a brand-new suite.

That means the controversial back door to the garden

remains firmly rooted in the same position,

in the middle of the bathroom.

This is the door that leads out from the bathroom.

For privacy... We had a larger window,

now we've got a smaller window. We used the original bricks.

I don't think there's an issue of access

to the garden from the bathroom

because most properties round here have access through the bathroom to the garden.

OK, so the door stays.

Moving back indoors and that nondescript room

is now a fantastic kitchen.

The fire has gone but the chimney stack remains.

The door that led to the small, single bedroom has been bricked up

and is now accessed through the hall, which is much more practical.

So now it's done, is Mahbub happy with the reconfiguration

of the back of the flat?

We had a choice whether to locate the bathroom here

or in one of the other rooms.

We chose this room because it was very easy

to tackle the plumbing issues we had

and the end product, I'm very pleased with.

The garden still needs to be finished

but will feature a patio area.

Mahbub's done a lot of work himself but he's had a lot of help

from his nephew, Rizwan, and has brought in experts when required.

We had workmen come in and do what's needed

legally for the electricity, gas, boiler installation.

My dad's been here every day guiding me

and my nephew's come in and done the finishing off.

When we first got here, it was a great dump. There was nothing here.

I've done all the painting, the vanishing on the doors,

cleaned the floors

and got some of the equipment they used to do this flat.

It's come out all right.

It's been good having the nephew around because we can joke

and we have similar sort of tastes.

He's great fun, he's a funny person,

we have a great laugh whenever we work with each other.

The ambitious two-month schedule that Mahbub's builder had planned

actually ran into three.

But what about the budget? Did that stay on track?

£20,000 was the original budget. We spent 22,500

and for that we've achieved a new kitchen, a new bathroom,

double glazing, central heating. Basically, a brand-new flat.

With the £165,000 he spent at auction,

the total outlay is now £187,500.

Has it been money well spent?

Time to see what two local estate agents think of the flat

and its prospects.

Good flat. You know, clean, crisp,

restored the original features which was a good move

and a great location. Nice kitchen and good quality bathroom.

The guy's done a really good job. I love the kitchen.

The bathroom is a bit small, as is the second bedroom. However...

I think he's done a very high standard of work.

The only downside is that

you've got a small second bedroom, which is not ideal

and walking through the bathroom to get to the garden, again,

may put some people off.

Mahbub spent a total of £187,500 on the purchase and renovation.

So how much is the place now worth on the resale market?

I would place this property on the market for £220,000.

We'd put this on the market for somewhere between

£210,000 and £220,000.

That valuation range would produce a gross profit,

before the usual selling expenses, of between £22,500 and £32,500.

Very good. Very nice figures.

The range of figures I had in mind as well so I'm obviously very happy.

Mahbub and his business partner, Tariq, plan to sell the flat

but how much rental income could it produce?

You could rent this property out for £1,000 per calendar month.

You put this on the market for rental,

you'd be looking at somewhere between £1,000 and £1,100 per month.

Those rental figures could mean a yield of between 6.5% and 7%

if Mahbub did decide to rent it out.

How does he feel now the flat is finally finished?

It's been a busy three months but something which I've enjoyed.

Family have been great and really helped me.

I look forward to doing up another project very soon.

# One, two, three, four! #

It's time now to head back to Ferguslie Park in Paisley,

where earlier we met Colin.

He bought this two-bedroom semi-detached house

at auction for £35,000.

This was to be Colin's 12th property,

so he's no stranger to property developing.

He planned to do a complete refurbishment here -

new kitchen, new central heating, rewiring, painting external walls

and also tackling those front and back gardens.

# She's mighty fine and says she's all mine

# And nothing's gonna bring me down... #

Colin thought the biggest problem was going to be the decor

and he'd need the help of his daughter, Laura, for a very reason.

I'm colour-blind.

-Right.

-So I'm not very good at picking paint and carpets!

I've tried, but it doesn't work.

So she helps me pick the paint so she'll do all that work with me.

Colin set a budget of £4,000 and a timescale of only seven to ten DAYS!

Well, four WEEKS have now passed and we're back to see the results.

Colin has done a fantastic job of the exterior of the property,

and inside...

..the living room's had a total overhaul. It now looks great, fresh

and contemporary with new plasterboards, skirting and decor.

In here, when we took the skirting off, we found dampness.

Figured it was the gutter causing it.

Stripped the walls back, put a false wall in here,

tore the wood off this wall,

redone the wall again, done this paint job.

All we need to do now is flooring and that should finish us off.

So no surprises - that greenery growing out of the guttering

has caused water to come INTO the property.

Once the house started to be stripped back,

the full horror was revealed.

Soon as we started taking skirtings off, paper off, we saw the walls

falling down so there's a lot of plastering, sorting walls out.

More work than anticipated then, but Colin's spirits weren't dampened.

So what was his vision for the kitchen and bathroom on the ground floor?

# One man, one goal

# Ha! One mission

# One heart, one soul

# Just one solution.... #

In the bathroom, I found three layers of tiles

in the floor so I had to rip them up. I lifted the wall tiles,

put a new bathroom suite in,

gave it a new clean-up and that was it.

Kitchen, complete rip-out.

There's a combi boiler in there now, new central heating throughout.

I've just made it easier for the person to clean.

There's not a lot of clutter.

Upstairs, both bedrooms have been completed redecorated.

Gone is that old wallpaper and in its place,

light colours which really brighten up these rooms.

Colin has a new tenant lined up who wants to choose the flooring.

Outside, Colin is still to drop the kerb for the off-street parking,

and the damp caused by that pesky guttering

has meant he can't paint the exterior walls just yet.

In two months' time, we'll give it a fresh paint and brighten it all up.

For the time being, we've put new chips down,

done away with all the bushes and sheds at the back

and put all these back so it's easily maintained.

Colin seems to be thinking well ahead.

He's spent £500 more than his four grand budget,

what about that seven to ten-day timescale?

I didn't think the walls would fall down,

but it's taken us about 21 days now.

My daughter helped with painting.

My daughter's boyfriend's mum and dad came to help me,

which I appreciate a lot.

I just sat here and we just worked and worked.

Colin was very dedicated to get all this work done

in such a short space of time.

# I've got my mind set on you

# I've got my mind set on you... #

So with a budget spend of £4,500 and a purchase price of £35,000,

that's a combined outlay of £39,500.

We invited along two local estate agents

to get their thoughts on this place.

The chap's done a good job to it. It's nice, fresh decoration.

Kitchen's nice, bathroom's nice.

There's a vast improvement with the garden, I feel.

Front garden's nice, back garden's very nice,

he's done a good job there and removed bits and bobs

that were out there and it's looking great.

The final finish in the kitchen and bathroom's OK.

The kitchen especially, the bathroom has been a new suite put in.

He's kept the existing tiles,

but generally speaking, the finish is pretty good.

Thumbs up then! So let's talk figures -

what sort of resell value could you expect to achieve here?

On the residential sales market,

I'd expect it to achieve between £50,000 and £55,000.

From a sale point of view,

I would value the property somewhere in the region of £55,000.

Not bad. So in the space of a month, there's a potential profit here

of between £10,500 and £15,500

minus the usual selling expenses.

But Colin's got a tenant lined up,

so what kind of rent should he be charging?

From a rental point of view,

I would value the property at a level of £475 per calendar month.

I would expect the property to rent for £475 per calendar month.

I've been offered 480,

so as I say, I'm happy with 475-480.

That's good value.

The £480-a-month rent will give Colin a yield of 14.5%,

making this a great investment property

to add to his growing portfolio.

No wonder he can't wait to get back to an auction to buy another one!

What I love is the satisfaction you get.

You don't see it yourself when you do it,

it's when other people come in and go, "You've done this?

"That's beautiful." But you don't see it.

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

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

-See you then.

-Goodbye.

-Goodbye.

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