Episode 26 Homes Under the Hammer

Hello. The UK property auction market is worth billions of pounds every year.

-Those are big numbers, but don't be put off.

-Auctions are accessible to everyone

and the auction room itself is a level playing field. All you need is some cash and some confidence.

With thousands of lots going under the hammer each year, there's a huge choice at auctions.

So here are the properties that our bidders put their hands up for at the auctions on today's show.

This three-bed mid-terrace in Kent is a little on the skinny side.

It's a little bit tight through here. Feels a bit squeezed.

In Kirkcaldy, Fife, this two-bedroom cottage has access issues.

Well, there's a first for everything!

And in Maida Vale, London, this high-rise flat ticks all the right boxes.

Once you've put your stamp on this property, it could be a really cool London pad.

All of these properties have been sold at auction and we'll find out who bought them

-when they went under the hammer.

-Well done.

Dartford in Kent is all about being connected.

Not in the "knowing the right kind of people" way, but in a transport sense.

Just outside London, but within the M25, it's commuter heaven with train stations galore.

From Dartford you can get to London Bridge in 40 minutes.

from nearby Ebbsfleet to St Pancras in only 17 minutes

and Paris in just over two hours.

So will the house I'm here to see be as well connected?

What do you want from a property in a commuter town more than anything else?

The train station a short walk away. And this road fits the bill.

It's under a mile to Dartford station, which immediately makes this lot an interesting prospect.

It's this three-bed house and it had a guide price of £135,000-£140,000.

Although it's up on a hill, you haven't got great views,

but you are elevated and feel removed from the bustle of the town.

There's no off-street parking, but I quite like this front garden which separates you from the road.

More to the point, it has what looks like new double glazing,

but the pebble dash has seen better days.

A little bit tired on the outside, but once you're inside, you have to look at the positives.

Central heating, it's already been decorated, needs a tidy up, perhaps some new carpets.

But a nice-sized lounge, a lovely big window there.

You need to sort that fireplace out. It's an eyesore.

A little bit tight through here. Is there anything you could do? It feels a bit squeezed.

Dining room through there.

Kitchen. Very disappointing. Far too small.

I know I've said this a thousand times, but what would really work

would be to knock this wall down, really open this space up.

Kitchen/diner with access out onto the garden. Perfect.

'It would offer a lot more flexibility as the kitchen's very narrow.

'Creating a kitchen/diner would open up the house.

'The garden needs a serious tidy up but it's the perfect size for a family.

'Apart from the pebble dash, the condition looks good.

'Upstairs in this mid-terrace that was guided at £135,000-£140,000,

'the layout is classic 1930s.

'At the back, there's a double bedroom, which houses the boiler and a bathroom.

'I would definitely change the cistern in the loo, but the bath and basin look OK.

'The smallest of the three bedrooms is fine for a child or, alternatively,

'would make a great study. The bay-fronted master bedroom appears to be a good size,

'but I've got a concern.'

The bedroom. First impressions - great, but then, you know, just have a little think about it.

Where is all your furniture going to go? You've got to visualise it.

Your wardrobe space, you could fit in something here and here, but there's this big chimney breast.

You could think about taking that out, but that's a mammoth job.

You need to put in your chest of drawers, a mirror, all your clothes.

Once you've done that, there isn't that much room to manoeuvre and walk around.

And you can forget a big king-size bed. It's got to be double or quits.

'Although the layout in these 1930s houses is fairly standard,

'the room proportions do vary, depending on the size of the house.

'A semi-detached house will have bigger-sized rooms than this mid-terrace.

'But I wonder if there's any way you could make it even better?'

So what are your options here? You don't need much more square footage to make the ground floor work.

I'd love to see a single-storey extension on the back here.

Then your living room can be a cosy, relaxing space.

And the kitchen/dining room/kids' play area, you could open all of that onto the decent garden.

But you will have to be careful. That could easily cost in excess of £10,000 to build.

You wouldn't be adding that much more onto the value of the property.

If it was me, I would definitely do it. I just can't see this house reaching its full potential

without that extra space.

'It will all come down to what the new owner plans to do with the house.

'If they intend to live here, it may be worth extending,

'but if it's a buy to let investment it's probably better to leave it.

'We invited a local property expert to come and take a look around.'

From the outside, it's very nice.

Obviously, inside there's still work to be done to it,

but central heating and double glazing has already been put in.

What's the potential resale value after a refurbishment?

I think in the condition it's in at the moment, you're looking at £150,000.

If it was refurbished to a relatively high standard, perhaps more £180,000-£190,000.

Once the house has been refurbished, how much rental income could it generate?

I would expect this property would rent for £850 in good condition per calendar month.

There's nothing really wrong with this house. On the contrary, it's a lot of space,

so close to decent links to London. But it is surprisingly small for a three-bedroom house.

And I think there's work to be done before a family can settle down comfortably for the long term.

Still, it's a good one to go for. Let's see who agreed at the auction.

This lot came up towards the end of the auction when most bidders had left.

This is Lot 93. Mid-terrace, bay-fronted house.

Got a guide of 135-140.

Start me here at 135, bottom end of the guide. 135?

Or 125, then? I don't mind. £125,000 to start me.

125, thank you. At £125,000 I'm bid.

128. And 130? 130. 132.

135. 138, sir?

138. And 140. 142.

142. 145?

145. 145 I'm bid. 148? 146.

I don't mind. 147. 148.

149. And 50. And 51?

151. 152.

I have 153. It's no good looking at him. I'm much better looking.

153 I'm bid. 154?

153 and a half.

154?

You might have clinched it! At £153,500 for the first time.

He's out shaking his head.

153 and a half for the second time.

£153,500, third and final time.

At £153,500...

Sold at £153,500.

So the hammer fell at £153,500,

that final bid coming from a very relieved looking Steve, who was at the auction with his wife.

They live in Orpington, Kent, where Steve works as a driver for a lift company.

So to hear how he plans to elevate this property

and why he decided to buy at auction, I met up with him at the house.

Steve, congratulations. Well done. So why did you want to go to auction for this property?

Just quick and simple. Easy as that, Lucy.

-30 days and you own the place. Lovely.

-You like the simplicity.

-That's it. Nice and easy.

-You have to come up with the cash.

-If you're not ready, you can lose your deposit.

-Were you ready?

-Yes.

-Prepared.

-We was completely ready to go.

-Had you done your research?

-Yeah, plenty.

-Had you read the legal pack?

-Yes.

-Got the house surveyed?

-No.

-Why did you not get it surveyed?

Didn't feel it needed. Couldn't see any cracks, doesn't look like any subsidence.

-Everything that we can see needs doing is self-explanatory.

-What sort of vision did you have?

Quick in and out. Spend as little money as possible, but make it look really nice.

So it's all about turning a profit?

-Hopefully.

-You wanted to get in quickly, do it up and then get out.

Yeah, that's exactly right.

'Something tells me that Steve's no-nonsense attitude will reap a profit as well.'

# You're going up in the world You're going up in the world... #

'But any profit will depend on how he maximises the potential.

'Steve would rather sell this property on if the numbers work out. Otherwise, he'll rent it out.

'But what are his refurbishment plans? His budget is £7,000,

'but I think the layout definitely needs to change here.'

We're just going to do the usual. Clean it up, make it nice, decorate it.

-The kitchen and bathroom.

-But you've got to do something more than that, I think.

-I think you need to open some space up.

-We'll look at everything. If we need a wall down, we'll do it.

-Do you think you need a wall down?

-Maybe in the kitchen.

-I think definitely to open up that space

will really be the family living area that you need here.

If the wall needs to come down, it will.

-Do you think that will be an expensive exercise?

-Well, we'll do most of the labour ourselves,

-so we'll keep it to a minimum.

-Isn't it a small kitchen?

-Very small.

-Wouldn't you rather sit in a nice kitchen with an open dining space?

-Definitely. We'll see the figures.

-If it works, we'll take the wall down.

-'Oh, come on, Steve! Commit!

'I want that wall down! Figures or no figures, that would be money well spent.

'So Steve reckons it will be a quick in and out job, about three to four months,

'and he's going to fit it in around his full-time job. So what sort of finish is he looking for?

'I'm sure we're not talking gold taps and granite.

'Most of the rooms have been stripped back, but what about the woodchip in the living room?'

-We're gonna remove the woodchip, just for you.

-Thank you! It will just look so much better without it.

Yeah. We'll get the woodchip off. If the walls need re-skimming, we will.

-And your budget for all this work?

-£7,000.

-Do you feel quite confident?

-Everything you need to do here you can do yourself?

-Mostly.

-Have you renovated houses before?

-I've done three or four of our own.

-Are you quite confident to get in, do the work and get out?

-We love making a mess!

Steve, good luck with this project. Let's hope you stick to that £7,000.

-I'll be asking. Nice to meet you.

-And you, Lucy.

If there's one thing I know for sure, it's that kitchen wall needs to come down.

I can't believe Steve is still debating that. I do think he's got a great house,

but I want him to make the right decisions and make money, not just mess!

Find out what happens later in the show.

I've come to the east coast of Scotland to Fife's largest town, Kirkcaldy,

which sits on the Firth of Forth's northern shore. It has a rich history, a strong industrial past

and some fine green spaces to boot.

# It's all too beautiful... #

This is the lovely Ravenscraig Park, home to the remains of Ravenscraig Castle.

It's also the location of the property I'm here to see.

A single-storey cottage at a guide price of £55,000-£60,000, right on the edge of the park.

Views across the park out to the sea. I'm liking it already!

# It's all too beautiful It's all too beautiful... #

Well, it looks a bit shabby on the outside, but it's certainly on a good-sized plot.

All I've got to do is try to get in.

Well, that's the front door.

That's not going to work.

MUSIC: "Mission: Impossible" THEME

'Hm, a bit of a mission getting in.'

Never done this before.

Well, I suppose there's a first for everything. Climbing through the patio door!

Before I move on from the patio door, it makes the most of those views. Really good to see that.

But actually, unfortunately, it doesn't get much better as you come in.

It's in a right old state.

We've got props holding up the ceiling, half-finished walls.

I think it's a... rip it out and start again job.

# If only I could start again And I'd start I'd start again with you... #

'Well, starting again might be the best option here as things are in a state.

'Will it improve elsewhere?'

Er, no, it doesn't get any better here. Fingers crossed.

No, it doesn't get any better here, either.

I mean, it is a project that, to me, looks like somebody's started and not quite finished,

for whatever reason.

I suppose the good news is it's been cleared out, sort of, so you could put your own imprint on it.

As long as you buy it for the right price and allow enough to sort it out, you shouldn't be put off.

'You might be better off ripping out some of the work that's been started

'and stamping your own mark on the place.

'The size of the plot is big enough to extend outwards if not upwards, too,

'with planning permission.

'There's a derelict garage here which is odd because there's only pedestrian access through the park,

'but you could find yourself stonewalled trying to get consents for off-street parking

'as you'd need to remove part of the wall at the back of the cottage.

'The wall is Category B listed, meaning it's of particular historic importance.

'There is parking on the street and when you've got such beautiful views out front, who cares?

'With a guide price of £55,000-£60,000,

'we asked the auctioneer who sold it to come and tell us more about it.'

It must be one of the most unique properties in this part of town.

It's a lodge house

standing in Ravenscraig Park.

Some years ago it was sold by Fife Council to a property developer.

They've started work, but haven't finished it.

'That explains the bits and bobs done already. So let's talk investment options.

'Would it make a viable rental?'

If you tried to rent this property,

you would probably be looking at £450-£500 a month.

'What about the resale market?'

I'd have thought when it's finished you're looking at about £120,000-£130,000.

'What about the possibility of extending? What kind of resale could that achieve?'

If you try to extend to the side or upwards, or both,

I'd have thought you're getting on for £200,000.

Well, yes, there's work to be done to sort this place out,

but one thing's for sure - you can't knock the location. It's stunning.

Let's see who fell in love with this when it went under the hammer.

Right. Lot Three.

Two-bedroom cottage requiring renovation. Where are we going to start? Somebody start me at £30,000.

£30,000 anywhere?

25 to get me started?

25, thank you, sir. Sitting down. 20? OK, 20.

We'll start off with 20. Any other bids? Thank you, sir. 22.

24. 26.

28. 30. 32. 34.

36. 38.

40?

40. 42?

42.

44. He's shaking his head. With you, sir, at £42,000.

Are we all done? Sorry, sir. I didn't see you.

43. 44. 45.

46. 47. 48.

49. 50.

51. 52.

53?

53? 54.

55.

56. 57. 58

59. 59? 60.

Can I go up in twos, sir? 62?

Are you all done? At £60,000. The gentleman sitting down in the back.

At £60,000. Going once, twice, third and final time.

That successful bid of £60,000 was made by Craig on behalf of his friend, Caroline,

who works as an advertising rep.

I met Caroline and her builder Grant, who's Craig's brother, at the property

to find out the plans for this rather empty shell.

-Caroline, Grant, good to meet you both.

-Hiya.

-Congratulations.

Why did you want to buy this place?

I just thought the location was the thing. It was just an amazing location

-with the sea and the park.

-Quite an unusual property to find.

-Actually inside a park. Definitely.

-So tell me about you two. You're...?

-I'm the builder. I get the job of doing the place up.

-Yes.

-Tell me a bit more about you.

-I work at the local newspaper.

-Oh, great.

-Advertising rep.

-Nothing to do with property.

I've got a couple of places, though, so I am quite interested.

-I do bits here and there.

-Right. A bit of buy to let?

-Yes.

'Caroline's friend Craig didn't just do the bidding. He brought the property to her attention.'

-So did you see it beforehand?

-Just pictures and obviously from outside.

-Right.

-So you didn't come in.

-I keeked in the windows.

-You peeked in?

-Yeah.

-Any surprises when you saw it for the first time properly?

-It was worse than I thought, definitely.

-Would it have changed your mind to buy it?

-Er...no, actually.

Cos I think everything that's wrong with it is fixable.

'I'm sure Caroline will fix this place right up and it's a bonus she has Grant to help with it,

'but what exactly is she planning to do here?'

I'm going to knock this wall down, make it more open-plan.

The two bedrooms are a good size. Probably, hopefully, won't need too much done to them.

The kitchen, sort of dining area, and then a lovely kitchen.

Close off the patio door and make it just a normal window.

I got a good bargain on a kitchen yesterday, so I'm quite excited.

-You've bought your kitchen already?

-Yep.

-Tell me about the bargain.

-It was just ex-display,

-so I decided to go for it.

-And how much was it?

-Only £500.

-How much should it be?

-2-3 grand.

-Something like that.

-Bargain!

-Bargain.

-And it happens to fit?

-Almost within an inch of its life.

'It's great that she's saving money already because there are plans afoot to get consent

'to extend the property upwards.'

We had the architect round yesterday and the thinking is to put two bedrooms up the stairs

and an en suite. And then just leave the ground floor as it is.

Obviously put in new walls. Well, insulation. Cut the floors, put a bit of insulation in it.

And hopefully get a large garage with an office above it outside.

'That office will certainly have an amazing view overlooking the park,

'but what about the parking issue?'

The biggest challenge of all is trying to get vehicular access through the wall outside.

It's a bit awkward because it's listed B, so hopefully we'll get through there and be better for it.

'I reckon unleashing the true potential here is all in the permissions.

'But although Caroline first bought this as an investment property,

'her enthusiasm tells me she may have changed her mind.'

So what's the plan for it, then? Rent it out, sell it on? What?

-I think I might be quite keen to move in.

-Oh!

I've got a good gut feeling that it'll look amazing

-and I'd love to wake up to that every morning.

-It's like the park is your garden.

-Yeah, definitely.

'Caroline's budget is £20,000-£25,000, but if they extend upstairs

'it'll be around £35,000.

'Grant will do a lot of the work himself, which will help to keep the costs down.

'And they will also be calling in a few favours.'

I've got lots of friends, family, willing to chip in and help out.

So I'm hoping to come under budget.

Hopefully. Got to keep a lid on him.

-And what's the timescale for the work?

-Em, 6-9 months.

-Yeah.

-The planning permission will take three months to come through.

So three months after that should be about done.

-Well, listen, congratulations.

-Thanks.

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

-Both of you.

-Thanks very much.

Well, it started out as an investment purchase, but Caroline has fallen in love with this place.

And the plans - blimey! If she can get those through, this really will be an extraordinary property.

A few hurdles to jump through before that. Find out how she gets on later in the show.

Coming up. I'm positively taken by this London flat.

Wow! On an even more positive note, what a lovely property to walk into.

In Fife, Caroline's renovation of this two-bed cottage wows the auctioneer who sold it.

I think it's absolutely amazing. What a transformation.

But, first, renovating this Kent mid-terrace was like opening a can of worms.

As soon as we got started, we realised it was a little bit worse than it looked.

Back now to Dartford in Kent where earlier in the programme

Steve, a driver with a lift company, bought this 1930s-style, three-bed mid-terrace

for £153,500.

# Lift me up When the lights are fading... #

It was his first auction purchase, although he had renovated three or four properties before.

No-nonsense Steve had done most of the homework before buying it.

-Had you done your research?

-Yeah, plenty.

-Read the legal pack?

-Yes.

-Got the house surveyed?

-No.

-Why did you not get it surveyed?

-Didn't feel it needed.

-And what vision did you have?

-A quick in and out.

Spend as little money as possible, but make it look really nice.

Well, it's now nearly four months later and we meet up again with Steve.

The house has a new path and the pebble dash has had a facelift.

The front living room has lost that fireplace.

Magnolia walls, brown carpets and gloss paint have certainly freshened up the overall appearance.

In the hall, the door to the kitchen has been bricked up.

And at the back the former dining room has lost its fireplace and laminate wood flooring's been laid.

I am delighted that Steve has taken my advice and removed the wall.

It's created a lovely kitchen/diner and really opened this house up.

But Steve's initial optimism for the place soon changed.

As soon as we got started, we realised it was worse than it looked. We took the woodchip off

and the plaster came off, and when the carpets came up,

we noticed there was woodworm in the dining room, but we just cut it all out, treated the floors

and carried on.

It was a lot more work than Steve had anticipated, meaning that survey might have been a good idea.

He had to cure the damp in the dining room and then replaster,

but once the problems were treated, the new layout of the house could then take shape.

We decided quite early on to take the wall down as it did make sense. We just got on with it and done it.

I'm sure he'd have reached that conclusion anyway, but I'm glad he listened to me.

Upstairs, the three bedrooms have been decorated and the fireplaces have been removed

from the two large bedrooms. The boiler is now sited more compactly.

There were problem areas all over the house and renovating the bathroom was far from clear-cut.

There was all sorts of things. Pipework in walls...

It just took me so much longer to do the bathroom than we expected,

but we're more or less there. A few more jobs to finish off, but it's almost there.

At the back, the wall has also been painted.

The fences have been put up all around the garden which will be laid to lawn

with a paved patio area next to the house.

The old kitchen door has been sealed up and replaced with a window

with garden access through the dining area's double doors.

Steve reckons he has spent about £600 getting professional advice

and having the wall removed in the dining room

and a further £1,600 on the kitchen, although he fitted it himself.

So did his budget go through the roof?

Our budget was 7,000, but we actually went over and ended up at about 8,500.

We've done a lot more work due to the plastering and due to the garden work.

That £8,500 on top of £153,500 he paid at auction

takes Steve's total outlay to £162,000.

Having quit his full-time job, for the last couple of months,

he's been able to spend most days here.

So is it actually starting to feel like home?

I am thinking about moving in, but I've not decided yet.

Time to see what two local property experts think of the finish

that Steve has achieved here.

He's certainly done a lot of work to it.

It's very nice to see new carpets and the walls all looking nice and clean.

The kitchen is nice and modern,

got very nice units in there that will appeal to most people.

The property has been refurbished to a fairly good standard.

Fairly neutral throughout. The kitchen has benefited from being opened up into the dining area.

The bathroom has been refurbished to a good standard. I like the choice of tiles.

And if he decides to let the house out, how much income could that generate?

The rental value for this property would be £700 to £800 per calendar month.

If we were to market the property for rental, the owner could ask as much as £900 per calendar month.

That's a yield of about 5 to 6.5%.

Yeah, the rental's OK. If we decide to go down the rental route, that's always handy to know.

What about re-sale? Is it worth more than the 162,000 Steve spent?

If I was to sell this property,

I think you would be looking to achieve approximately £180,000, £190,000.

I would suggest a marketing price in the region of £180,000 to £185,000.

So, a potential gross profit of between 18,000 and 28,000. Is Steve pleased?

I think they're both about right.

I think the place is probably worth about 180,000.

We had done our research before we started, so it's all about right.

Since filming, Steve says he's 90% sure he's going to rent it out,

so despite the problems he's unearthed, is he happy with this project?

We have enjoyed it. I need a little bit of a break.

I probably will go back and buy something else from auction later in the year.

This is the West London area of Maida Vale,

a place very much in demand where the average price of a flat is a whopping 490,000

and a house, well, that would set you back on average a cool three million quid.

I'm sorry. I won't be showing you any million-pound properties today.

I am here to see a more affordable one-bedroom flat on this busy A-road.

Now, it's in this tower block. It might not be to everyone's taste,

but I'm fairly positive about this one.

It's in a fabulous location. It's close to the Tube station.

The block is being developed and there is a 24-hour porter here, so that comes in extremely handy.

So, come on, come on, how much for a one-bed flat in Maida Vale in London?

How does £225,000 grab you?

# Your love keeps lifting me higher

# Than I've ever been lifted before... #

With property buyers' love for this area of London,

unlike other places in the country, prices are still strong

and with this building undergoing an upgrade to its windows and balcony doors,

I'm hopeful that the 12th floor one-bed flat up for auction could also see an uplift in its value.

On a positive note, I would like to say how secure this block feels.

It's wonderful to have a 24-hour concierge downstairs, lifts that work

and...wow, on an even more positive note,

what a lovely property to walk into!

It feels bright and sunny. There are huge windows with a cracking view.

Wow, that's quite incredible! It feels open, it feels light, it feels airy.

Once you've put your stamp on this property, it could be a really cool London pad.

But sadly, it's far from cool at present with dated electric storage heating

and a tired, cluttered old kitchen.

The rather shabby bedroom is divided from the lounge by folding doors

that definitely need replacing.

And the bathroom that's situated off the bedroom needs a complete overhaul.

But despite the netting to prevent the pigeons flying in, it does have great views all round,

especially from the balcony.

# There's a gentleman that's going round, turning the joint upside down

# Stool pigeon, ha-cha-cha... #

As much as I like to see building maintenance being carried out,

it does tend to worry me when I'm viewing auction properties. Look at all that scaffolding down there!

Remedial work to a block like this could run into hundreds of thousands of pounds,

and someone taking this on could be hit with part of that bill.

My advice - have your solicitor check this out thoroughly before going to the auction.

Best case scenario, it's already been paid for and you benefit from the works being carried out.

Worst case scenario, you're hit with a whopping great maintenance bill you didn't budget for.

Now, that wouldn't make anybody happy.

# Don't make me sad

# Don't make me sad... #

This is definitely one of those property purchases where reading the legal pack is a must.

It's clear that extensive work is being carried out,

but although it looks like the windows and balcony door have been done in this flat,

it doesn't necessarily mean that the work has already been paid for.

This is a leasehold flat with a nice, long lease of 94 years left to run, so that's great news.

The bad news is the service charge.

It's quite high. It's set at £2,600 a year.

That works out at roughly £216 a month.

It's quite a large sum, but it does cover heating, water bills and pays for the 24-hour porter service.

It also goes towards the upkeep of the communal parts

and makes sure those all-important lifts are working. Perfect!

But is high-rise living really what people who move to Maida Vale want?

What does a local estate agent think of this flat?

Does it need big changes?

I would think leave it very simple.

I think the layout is as it is.

It's a single person's property -

new kitchen, new bathroom, a basic refurb. That's all you need to do, really.

This flat was guided at 225,000,

so if a good quality upgrade was achieved,

what kind of rental return could we expect to see?

I would say I could put this on the market for about £1,600 a calendar month.

And re-sale values?

I would say about £385,000, £395,000.

Wow, the prices round here really are sky-high!

And it looks as though, refurbished to a decent level, this flat is no exception.

It's a lovely flat with fabulous views in a great location.

What is not to like?

Well, the high service charge may put some people off.

Then there's the issue with the remedial works. Does the new owner have to contribute?

A few things to iron out and accept, but if you get over that lot, this one could be a winner.

Let's see who fancied it when it went to auction.

Right, Lot 68

is a one-bedroom flat, again a great location along Maida Vale.

A hot location.

Start at 200? I'm not going to go below 200. 205?

205. 210.

215.

220.

225.

230. 235.

240. 245.

250.

255. 260?

Yeah? 265. I'm coming to you.

270. 275.

280.

285. 290...

290 in the front.

295.

300.

305.

310.

310, yeah...? 315?

315, new spot. 316?

317. 318.

319.

320.

321.

322.

Good. It's cheap at 322. At 323. 324?

324. 325?

325...?

324 down here, first time, second time, third and last time.

Are you all done...? Sold, 324. Well done.

'So, for 324,000, nearly £100,000 over the guide price,

'the successful bidder was Reza.

'He works in the financial markets, trading shares and commodities.

'Although this is his first property purchase, his mother and sister own buy-to-lets in this block

'and he's been trying to get his own flat here for a while.'

# You can get it if you really want

# But you must try, try and try

# Try and try

# You'll succeed at last... #

Reza, congratulations. This is really good news.

How desperately did you want to buy this at auction?

Well, I've tried to buy a flat in this building three times now

and this is the third time lucky.

This one came in the auction and it was a much better price.

It just needed a bit more work to do, so I felt it was a good decision.

So were there any surprises for you on auction day?

The major surprise was when we found out afterwards that I have to pay 1% of the seller's costs.

That is something that everybody should be aware of now because it's becoming more and more common

and it's not always stated somewhere where you can see it. That is why it is important to read the legal pack.

That's the experience I learned.

I'll ask the auctioneer whether we pay the seller's costs and I'll check with the lawyers.

-You got your fingers burned, but it's a lesson learned.

-Yeah.

-Good stuff.

I paid 3,000 quid extra, but it's worth it really.

'That old mantra of "read the legal pack" was definitely applicable here

'with a 1% seller's fee that Reza found he had to pay.

'That meant an additional three grand.

'As if that wasn't enough, he also had to pick up a £800 maintenance bill for the new windows,

'but on the plus side, he got the flat for £35,000 less than the one he had previously made a offer on,

'so all in all, his persistence to get a flat here has paid off.'

So have you bought this for yourself to live in or for rental purposes?

For myself, initially. I'll live in it.

In the meanwhile, I'll raise more money for another flat and maybe build a small property empire.

-So you've got high hopes?

-I hope so, yeah.

In my job, you might lose money or gain money, but this is good

because you buy an asset and it's tangible and you can improve it

and it keeps its value much better than our trading jobs.

'But to make most investments grow, you need to improve and upgrade.

'Although Reza will employ a builder to carry out the work,

'this is his first property project,

'so he needs to calculate how to turn it into both an investment and a home. Help is close at hand.'

# I'll be there to lend a... #

What do your mum and sister think? They've got a property in this building.

They have a lot of ideas on how to do it up because they've done it before and in their own way.

Like my mum got an electric shower and it saved her £5,000 instead of getting a new boiler.

So that's been quite helpful and they just give me handy tips on how to do the flat, really.

Are you going to change the layout at all? At the moment, it's open-plan, which I love, very light.

On a beautiful day like today, that is the most stunning view.

I'm going to keep the layout probably the same.

Just keep the layout the same and then just do some cosmetic changes

like get a new kitchen in,

just sand the floor

and just tidy up the doors and a new bathroom

and get new furniture which we can order very quickly.

'With a £10,000 to £15,000 budget

'and a four to six-week timescale, Reza plans to get cracking straight away.'

-Reza, this is very exciting. Good luck.

-Thank you very much.

A-ha, third time lucky then for Reza and by buying at auction,

he saved himself £35,000 in the process.

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

Well, we wait patiently for our purchasers to do the work on their properties

and sometimes they make a wonderful job of it.

-And sometimes, Martin, they don't do anything.

-So what will be the stories with today's properties?

'Back now to the Kingdom of Fife in Scotland and this two-bed, single-storey cottage in Kirkcaldy,

'which was bought at auction for £60,000.

'Sitting inside a beautiful park, it has spectacular views right out to the sea.

'The cottage itself was in a pretty poor state

'with evidence of a renovation started and then abandoned,

'but Caroline and her builder Grant were all set for the task ahead

'and Caroline was quick off the mark to snap things up for the place.'

I got a good bargain on a kitchen yesterday, so I'm excited about that.

-You've bought your kitchen already?

-Yeah.

-Tell me about the bargain.

-It was just an ex-display.

-So I decided just to go for it.

-How much was it?

-Only £500.

-How much should it have been?

-Two, three grand, something like that.

-A bargain!

-And it just happens to fit?

-Yeah, almost within an inch of its life.

Caroline was going to apply for planning permission to create two bedrooms in the loft space

and to knock a hole in the listed wall behind the house for off-street parking.

She had a six to nine-month timescale and a budget of £20,000 to £25,000, increasing to £35,000

if she got permission for the loft conversion.

-# Come on, come on!

-Come on, come on!

-Come on... #

OK, that's enough chat. 17 months after our first visit, we're back to see what's happened.

# A little less conversation, a little more action, please

# All this aggravation ain't satisfactioning me

# A little more bite and a little less bark, a little less fight and a little more spark

-# Close your mouth and open up your heart and, baby, satisfy me

-Satisfy me!

-Satisfy me... #

Well, there's certainly been plenty of activity here.

The ex-display kitchen does look as though it was made for the space

and the house now makes the very best of those stunning views.

Well, we had a big wall here that made the place very, very dark, so that's all gone.

And we had a double patio door which we've doubled again, so it lets in all this light,

then we've put the decking on the outside which is just...

I love it, I absolutely love the decking and it takes in the views of the park.

# Parklife... #

With a new roof and a coat of paint throughout, the cottage really does look the business.

The planning permission for the loft conversion was rejected,

but Caroline is more than happy with the layout they've achieved.

We were going to go up to four bedrooms if that was a possibility, just to make it a little bit bigger.

However, it wasn't to be, so we were quite happy to stick to two bedrooms.

It's a really brilliant-sized house as it is, so we were quite happy to keep it to that.

Caroline was also denied permission to create access for a car through the listed wall behind.

But there is a new opening to the back door

and with parking on the street right outside, that's really not so much of an issue any more.

It took the best part of a year to go through planning,

but once they did get started, the work was completed in just over six months

with Caroline's builder Grant pulling out all the stops.

Grant was involved in, you know, the drawings

and he was on site the majority of the time,

so he was pretty much hands-on.

He's away on another job at the moment, so that's why he's not here,

but yeah, he's really kind of taken on board most of the hard work.

There is still a little bit of landscaping to do,

but the plot here is smaller than the first time we visited,

so could it be that Caroline has an ace up her sleeve?

We didn't think that this particular house needed as much space as it actually had,

so we've fenced off a border

and we've created another space to the side

which we will do something with in the future, but I'm not sure what.

It might be a holiday home or another house.

You know, I've not decided yet, but at least there's a space there to do something with.

The planning issues Caroline had did push her over schedule,

but how has she done on the budget front?

The original budget was literally a guestimate. I think we said 20,000.

Realistically, it's closer to 30, so a little bit over,

but still within a reasonable amount of money, I think, still to do it.

Caroline's spend of £30,000, added to her purchase price of £60,000,

brings her total outlay here to £90,000.

We asked along two local property experts

to tell us what they make of the cottage now.

It's amazing. What a transformation from when we saw it originally!

They've done a really nice job.

It's so bright. It's brilliant.

It's in a great location with great sea views.

It's nice, bright and spacious.

That's a pretty good start, so what do they think the property could sell for?

Well, a two-bed house in this area appears to be going for between £160,000 and £190,000.

Generally speaking, I think it would tend towards the lower end of that bracket

because the bedrooms are quite small,

but with the right person who likes the location,

you might get towards the top end of that bracket.

This property could achieve in the region of £150,000.

I'm delighted with that. Very good.

I was kind of thinking about the 140 mark, so that's even better than what I was thinking.

The experts' valuations could mean a pre-tax profit of between £60,000 and £100,000 for Caroline,

which is fantastic.

What about renting the house out?

In the area, two-bedroom properties appear to be attracting rentals of around £600 per calendar month.

Having said that, this property has got this unique location

and you might get lucky and find somebody who would pay more than that.

This property could achieve £600 per calendar month.

Those rental valuations would mean a yield of 8%, possibly more, which again is great news.

If she had got planning permission to extend, Caroline was going to move in,

but her plan now is to put the house up for sale.

So with the benefit of hindsight, would she recommend the process of buying at auction, then renovating?

As long as you go in with your eyes open and you're prepared to start at the very beginning and work through,

rather than going from A to Z in a hurry, it's definitely worthwhile doing it.

In the West London area of Maida Vale, it seemed things were on the up

and where better to buy in a high-price property market than in a high-rise block?

And that's exactly what shares and commodities trader Reza thought

when he purchased a one-bed flat on the 12th floor of this high rise for 324,000.

He hoped that with a little investment he could reap a decent return.

In my job, you might lose money or gain money,

but this is good because you buy an asset and it's tangible and you can improve it

and it keeps its value much better than our trading jobs.

With both his mother and sister owning rental flats in the same block,

he was hoping to turn his first property purchase not only into a good investment, but also his home.

But this flat came with its own ups and downs.

# Upside down you're turning me... #

The ups were that it only needed cosmetic work,

had a 24-hour reception service, working lifts, a long lease

and a fantastic view across London.

The downs were it came with a seller's fee of 3,000

and a maintenance bill of £800,

then there was an annual service charge of £2,600.

Reza hoped to get the work carried out for 10 to 15 grand

and get it all done in a month and a half,

so he really had to get on with it.

Now, just under two months later, we're back.

And with the maintenance work clearly moving on apace,

the exterior of the whole block is steadily being improved with new windows and doors,

but how has Reza fared sorting the interior of the flat?

Well, the lounge and bedroom have been given a lick of paint

and the floors sanded and polished.

But it's in the bathroom and the kitchen where the main changes have taken place.

There's a new bathroom suite complete with electric shower...

..and a fitted kitchen with all modern appliances.

Well, the kitchen, we went with the supplier and he showed us on the software how to design the kitchen

and fit it in, given the space constraints.

We're really happy with it and the project manager did a fantastic job

of implementing the kitchen designs, so we're really happy with it.

So, a big improvement in the kitchen and, generally, the whole flat has been spruced up.

But it seems most of what first-time property refurbisher Reza has and hasn't done here

was on the advice of his mother and sister.

They've each been through the process from the beginning to the end in their own flats, so they helped me

with recommendations like rewiring

and what sort of painting we need to do for the walls and the flooring as well.

They just recommended to sand it and polish it, not to get a new floor

which would have been more expensive

and just to keep the door between the bedroom and the living room

because it's good quality wood and it's fine to just keep it like that,

as opposed to having a wall and a new door through it. It would cost you much more.

# I like it like this... #

So the changes have been made very much with Reza's investment hat on,

holding the costs down by keeping the doors, floors and storage heating system.

But I guess he must be happy with this as it's also going to be his new home.

I'm hoping to move in in the next couple of weeks.

It's a new flat, everything is new, appliances are new and furniture as well,

so I'm looking forward to it, really, getting the independence.

In total, the work here took about seven weeks, which is very slightly longer than he had planned.

How much of his £10,000 to £15,000 budget did he spend?

13... £13,000.

Well, a £13,000 spend, plus the purchase price and seller's fees

totalling 327,000, plus the maintenance cost of 800 quid,

makes Reza's current outlay just short of 341,000.

Has he done enough to raise the value of his investment? What do two local estate agents reckon?

It's come on quite well. It's a good, basic refurb,

but it's clean, tidy and ready to go.

I like the property. It's been done neutrally,

so it would suit a lot of people.

You've got wonderful views across London. It's a very nice flat in a very nice block.

Reza was planning to live in the flat for a while,

then he was looking to put it on the rental market later.

For renting, somewhere in the region of £1,600 per calendar month.

I would look to rent this, to put this on the market at £1,650 per calendar month.

Initially, we thought about 1,300,

but 1,600 to 1,650 is very good.

1,600 to 1,650 a month would generate a reasonable yield of between 5.5 and 6%.

But is Reza likely to see an uplift in the re-sale value?

Remember, he has spent around 341,000 in total here.

If I was going to put this on the market for sale, I would put it on in the region of £385,000 to £395,000.

I would look to put this on the market for just below the £400,000,

so perhaps we would try and market this flat at £395,000 and see what the feedback was.

I'm really pleased since we bought it for £324,000,

so it's a good, short-term gain, but I think we'll keep it for now.

With a potential pre-tax profit of between 44,000 and 54,000, no wonder Reza is pleased.

It seems it might be the first of many.

We're much more confident. The team's in place and we have a deposit. We're ready for the next venture, really.

So for Reza at least, it seems his hopes for building a property portfolio are looking up.

# Lifting me higher and higher, come on... #

Well, that's all for today's show,

but we'll have lots more stories from Britain's auction rooms here on Homes Under The Hammer next time.

-And you wouldn't want to miss them. Join us then. Goodbye.

-Goodbye.

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