Episode 36 Homes Under the Hammer

Welcome to the show. Buying property can have its highs and lows.

It's not as easy as it seems, especially if you get stuck in a dreaded property chain.

But you can eliminate that part if you buy at an auction.

There are all sorts of properties coming up at auction these days.

And their buyers have a wide variety of plans and budgets.

So let's see what's on offer on today's show.

'In Merthyr Tydfil, Mid-Glamorgan,

'this house solves the question about heating two rooms with one radiator.'

Just share the one, eh?

'This semi-detached in London is in great nick and had a low guide price.'

So far, so good.

'Is it too good to be true?'

'I'm near Durham where it takes more than cracked ceilings, dated decor

'and tiny toilets to dampen my passion for property.'

But all in all, I'm still excited.

'All these properties are being sold at auction.

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

I'm in Mid-Glamorgan, Wales, in an area of Merthyr Tydfil known as the Quar.

And while the weather may not be on our side today, the property prices most certainly are,

as you'll see with this place.

Now, you may know that Cardiff-born writer Terry Nation created the Daleks,

but what you might not know is the man who actually built them, Bill Roberts, no relation,

came from Merthyr Tydfil,

so, the big question is, will today's property be worthy of extermination

or Da-lek-table?

This is it - two up, two down, 23 grand. Let's take a look inside.

Fortunately, from the outside, it doesn't seem to need exterminating, just a bit of titivating.

Oh, right. Well...

Nice to get out of the rain, at least.

So, a fairly narrow corridor into the property.

Stairs up to your bedrooms and, I don't know what you were expecting here,

but it is two up, two down, so not a huge amount of space.

At least this area has been knocked through, so you've got this living room/dining room area.

It's very dated and, obviously, in need of tender, loving care.

That bit is fairly cramped, but it gets much worse when you come to the rear of the property

where this is your kitchen.

It's a real rabbit hutch

and, clearly, it's going to have to be addressed.

So, all in all, well, it's not huge, is it?

# All the small things

# True care truth brings... #

"Cramped" would be an understatement here.

Imagine throwing a dinner party! You'd have your work cut out with such limited space.

But on the plus side, there seems to be a new boiler, so let's keep looking for other positives.

Upstairs, originally, there would have been just two bedrooms.

The good news is that one bedroom has been converted into a bathroom,

so it's great to have the bathroom and loo upstairs,

but in order to still retain this as a two-bedroomed house, they've come up with a rather ingenious solution.

Stud partition wall and in terms of a radiator...

Well, just share the one, eh?

# I'll share my world with you... #

Well, it's a creative way of cutting down your heating bills, I'll give you that!

But it's all really impractical, especially since both bedrooms are small,

so you could turn one of them into a bathroom and restore this good-sized bathroom back into a bedroom.

Or you could just take out the stud wall and have a nice-sized bedroom up front.

However, that would affect the value of the house.

That just leaves the garden. It's not the largest,

but at least, after the tight spaces inside, it does feel more open.

You are getting as much as you could expect

for that £23,000 guide price,

so what would a local property expert make of it?

We invited one along to find out.

First impressions are not great here.

It's a property that needs complete refurbishment from top to bottom.

The kitchen needs some major overhaul work.

The rest of the house is in pretty poor condition at the moment.

There's damp coming through upstairs.

It needs a rewire. New ceilings and floors I would advise as well.

Don't forget the re-plumbing!

He's right. A total overhaul is needed here, but is it a good area to invest your money in?

The Quar is an area very close to Merthyr Tydfil town centre.

It's predominantly ex-workers' cottages, mixed between one, two and three beds,

but as I said, very close to the town centre.

And that's always a good selling point.

Having local amenities is a real plus as well, but let's talk figures.

If the house was fully renovated, I think the end value would be in the region of £45,000.

A rental value on here of 350 per calendar month.

There is no getting away from the fact that this is definitely a house that will need work to sort it out,

but remember that guide price.

Spend a little bit of money and you could have yourself a great little home or a rental unit.

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

Lot number two now,

which is the mid-terraced house for renovation.

What shall we say? Start me off, 25,000 for it?

At 25, can I...? 25, I'm bid straight away. At 25 on the phone.

At 25. 6 can I see? At 25. 26 standing in the back.

26 there, out on the phone. 7, is it? Yes or no?

At 27, thank you. At 27. You're out.

At 27, it's the telephone bidder. 28 in the room.

At 28. Tell them to be quicker, please. At 28,000.

Is it 9? "No," he says.

At £28,000... It's yours, sir. Thank you.

'And that bid of £28,000 came from Liam who works as a crane operator for the railways.

'Liam is a first-time buyer and, with his brother Luke, plans to renovate the place.

'Luckily for Liam, Luke is a bricklayer by trade and all-round handyman,

'so he's in good hands for the job ahead.

'I met them both back at the house to find out more.'

Liam, Luke, good to meet you both. Congratulations. Why did you want to buy it?

-I've looked at it for a few years now.

-How come?

-I live opposite.

-You live opposite?

-Yeah, right opposite there.

-Literally, you can see your house...?

-You can see it through that window there now.

-No way!

-It's crazy, innit?

-You've seen it over the last few years?

-I've been living opposite for about 10, 15 years now.

I've seen people coming and going here. It's never been updated. It needs updating, so...

-How extraordinary that you live in the street! Who do you live with?

-My grandparents and my two brothers.

-A bit cramped then?

-Yeah, that's why I'm moving out now, so I can give them a bit more space.

'Well, this house hasn't exactly got wide-open spaces,

'but at least for Liam, it will be his own space and a new home.

'But for these brothers, it seems that it has been a focus of attention for some time.'

We actually looked at it about three years ago when it was going for 50.

We looked at it then, hoping to get it then, but it came up better now.

No kidding, almost half price! How was the auction?

-A bit nerve-wracking. Obviously, it was my first auction, first house. We didn't know what to expect.

-No.

I was shaking, bidding, but a good price in the end. I was ecstatic, to be honest with you.

-You were both there and your nan was there as well.

-Yeah.

At the end, I think you gave her a bit of a tug on the cheek.

That's love, innit.

So did you get the finances and everything sorted out OK?

Obviously, a bit of help from my grandparents, my nan especially, she helped with the funding.

-Aw!

-So I'm thankful to her.

Obviously, she made this...buying this house a dream come true.

Yeah, fantastic.

'Liam's grandparents have helped him take his first steps on the property ladder

'and he does plan to pay them back,

'but first things first - this place needs some serious work.

'What are the brothers' plans?'

Get the house back to the bare bones, really.

Knock walls down, open plan,

the stairs will be moving. Basically, new house, really.

-Are you going to be doing all the work?

-Most of the work.

I'll be overseeing the other trades like the electrician, plumber. That has to be certified.

I'll do all the construction work,

we've got to damp-proof this place.

We've got to strip the back roof, so if I can't do something, then we'll get somebody in.

But the only people we need in are the plumbers, plasterers and electricians.

-Everything else, we'll sort that out.

-You're doing it for free?

-Yeah.

-Aw!

-It's good, isn't it?

Yeah, it's fantastic.

'Liam will still have to pay for materials and other tradesmen when needed,

'but he has a healthy budget of £20,000.

'He hopes to have the renovations done in three to four months,

'but there's one huge bonus about living across the road with his gran.

'The commute to work should be hassle-free.'

# It's such a rush just being with you

# We're driving in the rush hour... #

What does your grandma think of everything you're doing here?

-She's loving it. Ecstatic, isn't she?

-Yeah.

The fact you're so close, you'll be able to carry on seeing her.

Yeah, hopefully. She'll still be making me dinners as well, hopefully!

-She'll still be cooking you your dinner?!

-Taking it across.

-You could put the menu that you want in the window and she could look at it.

-Turn it round.

-Congratulations. Good luck. We look forward to seeing how you get on.

-Thank you.

Things really couldn't have turned out better for Liam,

finding a property directly opposite where he's already living, so he can go over to his nan's for his tea.

And having his brother to help him sort it out, that's great.

How will he get on though? It's a big job. Find out later in the show.

Welcome to Wembley in London, popular, of course, with football fans.

But it's also popular with investors looking for the next property hot spot

and it's the R-word that gets buyers interested.

Yes, you've got it - regeneration.

And with a staggering £90 million in the pot, Wembley is set for a major facelift.

# But match of the day's

# The only way

# We spend our Saturday... #

The regeneration is approaching the final whistle

with a new public square, shopping complex and hotel being built.

That's a hat-trick of development that can only increase property prices.

The average price of a flat in the Wembley area costs over 195,000,

so I was delighted to hear about today's auction lot.

It's a three-bedroom, semi-detached house and it had a guide price of £190,000.

That's right, I said "house", not "flat", and so that guide price sounds like great value.

Now, from the outside, it looks freshly painted, so that is a huge bonus.

Kicking off, we've made a good start.

No sign of exterior damage and it's double-glazed. Back of the net!

What a nice surprise!

The interior has also been freshly painted, so, thumbs up!

It's a great property, wonderful proportions, and it's got a certain amount of character.

Look at this lovely door! You've got floorboards. These would look gorgeous once sanded.

And this, sort of, '30s over-fire mantel, I really like this. So far, so good.

To the rear is the kitchen.

Hmm... Rip it out, chuck it and pop in a brand-new one.

Perhaps you could knock through into the rear reception room.

I like the French doors to the rear garden -

brilliant, until you see the garden, that is!

It's a great size though and it could be a great selling point if landscaped.

Now, don't you go getting jealous of those neighbours.

Your garden too could look like that if you've got green fingers.

And while we're on the subject of neighbours, everybody needs them

and it helps if those next door have extended

because it means the council have already given the green light

and it could help you extend too.

That is brilliant news. It's also a cracking way to add value to your property

and it could add as much as £15,000 to this house.

Let's take a look upstairs.

There are three fair-sized bedrooms with some period features in good condition

if a potential purchaser wanted to keep them.

The bathroom needs work and is separated from the loo.

Perhaps they could be knocked together to make one larger bathroom.

Then there's the attic. Could more space be created up there?

And there's even more ways to add value out here - create some off-road parking.

They have, they have, they have.

You've got your neighbours to thank for setting a precedent.

You won't automatically get approval. It will just strengthen your case.

You will have to contact the local council and the highway authorities, so they can drop the kerb,

and you will have a fee to pay, but it's well worth doing.

Everybody else around here has and it will certainly add value.

This is certainly a place with plenty of potential.

We asked a local estate agent to give us his opinion

on this property which had a guide price of 190,000.

The accommodation is fairly spacious, typical for a three-bedroom house.

The two separate reception rooms are normally popular and it's got a lovely, big garden.

It has good scope to extend.

Next door have done so on the ground floor.

It will probably make a nice addition to the back of the house.

If the house was renovated, keeping its current layout, how much rent could it achieve?

You could rent the property out for something in the region of £1,450 per calendar month.

And if sold?

When the house is refurbished, I think you could probably market it

at something in the region of £315,000 to £320,000.

However, if a developer added a rear one-storey extension and an attic conversion,

as nearby neighbours have done, the estate agent believes it could achieve 350,000.

There's plenty to ponder with this property development.

I like this property. It's as simple as that.

I can't see any major issues and there's scope to add value.

It's also in an area that's undergoing a real transformation, so that's very exciting.

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

230?

230 anywhere? You tell me. I think it's worth 230.

One...

180?

180, sitting down. Two ladies, 185. 190.

195.

200. 205, madam.

210.

215.

220.

225.

230.

235.

240.

241? Try and help?

242, new spot. 243.

244.

245.

246.

247.

248.

249.

250.

251. 252.

Yeah? 253.

254. 255.

256.

257?

If not, 256 first time...

Second time.

Third and last time, are you all done...?

'The successful bid of 256,000 came from David.

'But he has just broken into the 3% Stamp Duty threshold,

'so you can add on almost another 8,000.

'David was bidding on behalf of his daughter Laura and her partner Alistair

'who works for David's firm of builders.

'Laura and Alistair are the proud new parents of five-month-old Colby

'and while Mum looked after the baby, I chatted to Alistair.'

-Congratulations.

-Thanks.

-It's been lovely meeting you and your family.

So what's the story behind you wanting to buy this?

Basically, it's a sound property. All the windows are in good nick.

Everyone's done extensions, so there won't be a problem getting permission.

Drop the kerbing out the front. There's a lot we can do, rearrange the bathrooms.

It's quite a simple procedure.

Absolutely. The good thing here is the precedent has been set in so many different arenas already,

which is good news for you guys.

What will you do to change the property internally?

We might get the permission to put a loft in because it has been done in the other houses.

We won't do the work. It might be just a selling point, so we'll get the planning permission done for it.

So that gives whoever takes this property on the chance to do something if they want to.

'Alistair will be working on the renovation full-time

'with Laura's dad, David, helping out,

'while Laura and her mother will be deciding on the decor.

'Hmm, I wonder what Baby will be doing?'

# Baby

# I'm telling you, baby... #

So, Alistair, tell me about the family being involved.

-How many of you are there trying to make all these decisions?

-There's about five of us.

You see, too many cooks spoil the broth!

What we're going to do is get all the decisions done and dusted before we start doing anything,

so when we come in, we've made the final decision, we don't change back,

otherwise, you end up spending more money on changing all the time.

We'll have the final decision before we start.

Will you be spending a lot of your time here in Wembley?

I only live down the road, so we'll travel through every day. It'll be a lot easier.

I've got to go home and see the baby and help change nappies.

-He's the new addition to your lives. He's gorgeous.

-Yes, he's brilliant. I can't complain.

-He's a very good boy.

-Do you hate having to go to work and leave him now?

It can be a struggle. He seems to wake up every morning when I'm leaving and say goodbye.

-But it's all good. We get home, have a bit of family time, then he's off to bed.

-Fantastic.

-And Laura will have an input in this project?

-Definitely.

'Alistair wants this property on the market by summer in three months' time.

'Let's hope he gets the planning permission fast.'

So what's your budget? How much have you got to spend?

The family has said 20,000.

I think we might be closer to 25, 27.

I think we'll be a little bit into that area.

-OK, I suppose with the extension, that's going to take a lot of your money up.

-Yeah.

-What would you like to sell this property for once you've put your magic touch on?

-Good question.

It's got to be in the plus 300s, doesn't it, really, by the time we finish what we want to do?

I think, because you are adding an extension,

you may go into the loft, you're dropping the kerb, you're doing so much to it,

-you could probably take it up into the next echelon.

-That's the aim.

-Alistair, good luck. I can't wait to see what you do. Well done.

-Thank you.

-Thank you.

Everyone knows their job. I love that. And they all seem confident taking it on.

But will it be happy families when we return? Only time will tell.

And how will they get on with that fairly modest budget?

Will that cash be enough to turn the house around?

You can find out how Laura and Alistair get on later in the show.

'Coming up, I'm near Durham, and if you can't say something nice, don't say anything!'

You can't complain about this property.

'In Wembley, London, are proud new parents Laura and Alistair pleased

'with the handiwork on their new property?'

We're quite happy with the results.

'First, in Mid-Glamorgan, are the experts impressed with Liam's new home?'

The house has undergone an impressive transformation since my first visit.

'It's time to return to Merthyr Tydfil and an area known as the Quar

'where I viewed this two up, two down terrace which had a guide price of £23,000.

'The interior decor was dated and the walls were dank and damp-ridden.

'The property was bought at auction for £28,000 by local lad Liam,

'and when I say local, I mean local!

'He lived across the road with his brothers and grandparents.

'With a helping hand financially from his grandparents

'and with his brother Luke doing most of the work for free,

'lucky Liam planned to renovate this as his new home.

'But as every boy knows, you can't beat a bit of Granny's home cooking.'

So what does your grandma think of everything you're doing here?

She loves it. Ecstatic, isn't she? She'll still be making me dinners as well, hopefully!

She'll still be cooking your dinner?

'Liam had big plans for this little house,

'so we're back a whopping one year and two months later.

'Surely he's finished by now?'

# Don't you know, don't you know?

# You're beautiful, don't you know?

# Oh-oh, don't you know, don't you know?

# Oh-oh, you're beautiful, don't you know? #

Wow, what an amazing transformation!

Earlier, Liam had said he was going to create an all-new house and he's certainly been true to his word.

It was a full gut, really. A new roof on the house, brand-new kitchen, brand-new bathroom.

A lot of hard work, but it's gone really well.

What's turned out best, I think, is the kitchen.

Obviously, it's a good look, modern, stylish. I'm really happy with it.

With the building expertise of his brother Luke, Liam created his open-plan kitchen and living area

by knocking down the rear wall and installing a beam.

At the back, they knocked down the old extension...

..and built a new one to house the kitchen.

We've done a full revamp, really, brand-new roof, guttering, windows.

The old garden was right up against the old house, obviously causing damp throughout,

so we've moved the garden back, re-slabbed it, drainage in,

obviously, just to keep the water off the house.

And it's gone quite well.

QUITE well? I'm beginning to believe that Liam is a master of understatement.

I'm really impressed with his home.

I particularly like the exposed stone alongside the new staircase.

It adds a hint of history to this modern makeover.

Upstairs, a bedroom had been converted into the bathroom and,

even though the master bedroom had been partitioned into two bedrooms,

it still shared the one radiator.

Those two rooms have been restored into one and it's now Liam's bedroom with built-in closet.

The closet cut across the front left-hand window,

so Liam bricked it up and rendered and painted the exterior.

The bathroom has been returned to the second bedroom.

By moving the staircase forward, Liam created space for his new bathroom.

A fantastic layout design from Liam,

but let's not forget his indispensable brother Luke.

Myself and my brother Luke have done 90% of the work on the house.

Another friend, Richard, did the other 10%.

It was a good effort.

And Luke did it all for...

..brotherly love. It's a beautiful thing.

Yeah, I just owe him a little favour.

Liam had hoped to complete the work in three to four months

as he and his brother were both working part-time for the railway,

but their situation changed, causing the delay.

We were going to be working full-time here and just doing weekend work on the railway,

but a job became available, good money, so we couldn't turn it down and we just fitted this in.

Which is why Liam spent £24,000 renovating the house,

so added to the purchase price of 28,000, that's a total of £52,000.

We invited two local property experts to see Liam's home.

The house has undergone a very impressive transformation

since my first visit.

The owners have refurbished absolutely everything, top to toe.

I think that they've done an absolutely fantastic job.

They've enhanced it to its maximum potential.

The experts are impressed with Liam and Luke's handiwork.

Liam spent £52,000 purchasing and renovating his new home.

What do the agents believe it could achieve if sold?

If he was to sell this property, I would estimate the value to be in the region of £60,000 to £65,000.

In today's market, a property in this location, in this type of condition,

would sell in the region of £65,000.

Those figures would give Liam a potential profit of up to £13,000, minus the usual selling expenses.

On the rental market, the agents believe it could achieve as much as £450 per calendar month.

That would give Liam a rental yield of just over 10%,

a wise investment should he ever decide to sell or rent it out.

All Liam needs to do now is move in. Let's hope he puts his fantastic kitchen to good use

and gives Gran a break from cooking his meals.

I feel really excited about moving in.

Just last Friday I moved into this house. But part still over at my nan's house,

but I'll be moving in full-time this weekend, hopefully.

It's going to be a bit new, but I'm looking forward to it.

And so he should be.

After all his hard work, it's time to put his feet up.

I wonder if there's anything good on TV.

Ah, now there's a handsome rogue, if I ever saw one!

Beautiful County Durham has a strong association with its coal-mining heritage.

The location of today's auction lot is a part of that legacy.

Well, just a few miles from Durham in the small former pit village of Bowburn

is the property I'm here to see.

Three-bedroom semi-detached. Looks a bit shabby from outside, but wait until you hear the guide price.

£25,000 plus. It's got to be worth a look.

'Shabby, but ripe for an injection of chic, I reckon.'

'I'm not loving the look of those single-glazed windows, the crumbly doorstep's not great

'and from here I can see that the gutters need a clean.

'But it all looks solid enough. Maybe the chic is inside.'

So what kind of condition is it in?

Er...the jury's out for now, but an entrance hall here.

That's a bit unusual! A few steps up to what I think is a little loo.

I haven't seen anything like that before.

But the more loos the better. Something I do not like is this on the staircase here.

Look at the space. That is a real risk, especially if you've got kids.

But through to the kitchen and...uh...

That is another potential risk.

I'm not certain, but I think they may be asbestos panels.

It fits in with the kind of age of the house.

If they are asbestos, they need to be disposed of very carefully by a specialist.

You definitely shouldn't play around or touch them. But not a bad size.

It could be bigger. You've got this little area here.

A bit of a coal storage area.

Think about taking out these walls. There's another little area there.

That would give a bit more space, but, all in all, I'm still excited.

# Ah, freak out... #

If you suspect there is asbestos in your property,

particularly if it was built pre-mid-1980s,

you don't need to freak out, but you do need to get professional advice

either from a specialist firm or your local council about its safe removal.

And now into the sitting room.

That fireplace is very grand. You might want to tone that down a bit,

but there's plenty of room here for a dining table and sitting area.

A potentially rather costly issue is the central heating system.

It's coal-fired, which explains the coal store just off the kitchen.

So I'd say a gas supply and a new combi boiler is a must.

I don't think this is going to be a quick and easy renovation.

Well, upstairs and more of this dreadful banister design.

It really needs to be sorted.

Apart from that up here, though, a good size.

The bathroom and loo need to be refurbished,

but it's not at all bad. It's where it should be.

Front of the property, a small single bedroom and then two good-sized doubles.

In terms of accommodation, well, you can't complain about this property.

It needs a bit of work, but, hey, what do you expect?

First thing I'd want to do is to put in new double-glazed windows

to keep in the heat and block out passing traffic noises.

But with a new bathroom suite and a freshen up of the bedrooms, you've got a fair amount of space.

Back outside, there's a useful-looking shed behind the house,

then you're through to the garden proper.

In the rear garden there is a really good-sized space,

so I'm immediately thinking family home, especially for pet lovers,

but you also get an idea of the state of the fabric of some of this house, particularly under windows.

Those sills need replacing, so that's going to add at least 200-300 quid

to the price of replacing the windows.

The to do list is getting pretty long,

but I think there's money to be made here.

We asked along a local estate agent to see what he thought

of the potential of this semi with its guide price of £25,000 plus.

It's a popular design of property, in need of updating,

but it has always proved to be a popular property

for first-time buyers.

Once done up, what kind of rental could you earn here?

Once completed, the property should be able to achieve somewhere in the region of £450 per calendar month.

Bearing in mind that £25,000 guide price, what about putting the refurbished property up for sale?

Once renovated, the property should be able to achieve somewhere in the region of £75,000-£80,000.

# ..let's watch the flowers grow. #

Well, there's work to be done to sort it out, but you're buying into an area that's on the up

and the property's pretty substantial. Let's find out who fancied it under the hammer.

Lot number 15.

A three-bed semi-detached property. Can I have £25,000 to start?

Any bid of 25 anywhere?

23?

21? I'm meant to be going up.

Anyone at 21? Two of you. Back wall at 21.

22? 22 bid. 23?

24? 25. 26.

A new bid at 27,000. It's against you.

28?

27 and a half bid.

28?

28 to the lady immediately behind you.

29,000 at the front. 30,000?

30,000 bid. 31?

32?

32 bid.

33? 34?

I'll be kind and take 500. 33 and a half?

33 and a half bid. 34? 34 and a half?

No?

34 and a half. New bidder.

35. 35 and a half? 36.

36 and a half. 37. 37 and a half?

38. 38 and a half? 39.

39 and a half. 40.

41. 42?

At £41,000. Gentleman on the right-hand side. 41 and a half? 41 and a half bid.

42? 42 bid. And a half.

43. And a half? It's 43,000. The gentleman on the right-hand side.

No? The gentleman at 43,000. We're here to sell. Last chance.

Once at 43. For the second time at £43,000. Congratulations,

the gentleman on the right-hand side at £43,000.

That successful bid of £43,000, almost £20,000 over the guide price,

was made by local mortgage consultant Ian, who attended the auction with his wife, Sandra.

I met Sandra and daughter Lindsay to find out their plans.

-Lovely to meet you. Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

We just sold our house and we're in rented accommodation.

Me and my husband decided we wanted to go into buying and selling property.

-To do it up and sell it on?

-Yes.

-What's your involvement, Lindsay?

-I'll help do up the house.

I work most of the week in the city, in London. At the weekend, I'll be here Friday, Saturday, Sunday.

Everything. So from taking out kitchens to smashing walls down! Everything.

-Pretty hands on.

-What do you think about them doing this stuff?

-They're a bit crazy, to be honest!

-Really?

-No, it's always been their dream since I was little. They used to do houses out.

'It looks like they'll all be pretty busy.

'The first priority is new double-glazed windows.

'Then it sounds like the whole house is going to be gutted

'and there's good news about the kitchen ceiling - it's been checked and is not asbestos.'

Upstairs, we're just going to strip back to the bare walls, plaster.

The bathroom, we'll strip that out and put a new suite in, shower over the bath as there's no room.

-Yep.

-And, erm, I think we need to do the staircase

-because the rails are too wide.

-Definitely.

For a child, it's not very safe.

And there's that little toilet on the landing. I've never seen one in that way before.

But we plan on keeping it in.

We'll do it out with a new toilet and put a hand basin in there.

Hopefully, in the kitchen we'll knock some walls out, if we can.

-Oh, right.

-To make it a bit bigger.

-Great. Which walls?

Well, there's the coal house and an old pantry,

so that'll knock further back

and then the chimney breast from the fireplace.

It goes into the kitchen, so, hopefully

-we might be able to block that off.

-So big, big jobs, actually, some of the things you're contemplating.

Any idea of a budget for it?

We planned £15,000-£20,000,

but we have a bit extra if it goes over.

-But hopefully 20.

-Right.

-And in terms of timescales?

-Hopefully, six months, within that.

'That seems a sensible timescale for the amount of work to be done

'and there's the central heating to be sorted, too.

'Sandra and Ian plan to sell the house on,

'but is there a back-up plan?'

Tough times at the moment, you can never predict the property market.

-What happens if you can't sell?

-We haven't thought about that yet!

Possibly just hold it, leave it on the market.

We're not in no rush. The money was in the bank, so...

-Would you rent it out, perhaps?

-We'd have to think about that one. We haven't considered it.

There's no harm in renting it out until the property sells.

Do you see this being the re-start of your passion for property?

Yes, we plan on using the money we make for the next project.

And it'll continue, hopefully.

-Congratulations.

-Thank you.

-We look forward to seeing how you get on.

-Thank you.

-Thank you.

Well, the family have re-entered the property market in a good area that's certainly on the up.

I am a little bit concerned that if they can't sell it, they're not sure about renting it.

Find out how they get on later in the show.

It's been a while now since we last saw our purchasers. Have they been racing on with the work?

Or has the project ground to a complete halt? Let's find out.

Let's make our way back to Wembley,

where I viewed this three-bedroom semi-detached, which had a guide price of £190,000.

The interior wasn't in bad nick, but had damp-ridden walls and crumbling, cracked plasterwork.

However, the big bonus with this house was the ability to add value.

Neighbours had added rear extensions and attic conversions.

At the front, neighbours have also dropped the kerb to create off-road parking,

another sought-after feature in busy suburbs where parking is at a premium.

This property was bought at auction for £256,000, just hitting the 3% Stamp Duty threshold.

It's a family investment with builder Alistair, his partner Laura

and her mum and dad, who is also a builder, getting involved.

So, what's the story behind you wanting to buy this at auction?

Basically, it's a sound property.

Everyone's done extensions, so we'll get permission.

Dropped kerbing at the front.

The good thing is the precedent has been set in so many different arenas already, which is good news for you.

'Laura planned to do it up and sell it on, so after 3½ months, let's see if this property is a backbreaker

'or a moneymaker.'

# You've got the moneymaker You've got the moneymaker

# You showed them what you can do

# This is your chance to make it

# Oh, yeah

# Oh, yeah... #

Alistair's added value has certainly added instant impact.

Basically, this was just an old little dining room.

So what we've done is, the building ended here, we've taken the door out and put the extension on through,

which has given us an extra kitchen now, larger than what used to be here.

And we're quite happy with how the results have turned out.

The extension has worked wonders,

creating a family-sized open-plan kitchen and dining room.

Alistair has added what every family wants - a second toilet -

by using the space under the stairs.

New wood flooring has been added throughout the ground floor,

integrating the new extension,

rather than it feeling like an add-on.

In the sitting room, I'd like to have seen more made of the fireplace

to help create that all-important, eye-catching first impression.

The walls are now whiter than white and while Alistair's been busy doing the heavy lifting,

with help from Laura's dad, it's now time for Laura and her mum to design the interior.

They will be coming in now putting the finishing touches on.

The woman's touch that we don't have! Just to make it a bit more attractive and it'll sell faster.

At the front, work is progressing with off-road parking, but permission's needed to drop the kerb

and that's proving harder to get than they'd hoped.

Off-road parking, we've had trouble with it.

Apparently, my artwork's not good enough in the drawings. We've had it sent back three or four times now.

It's just taking a bit longer than expected

so we're basically trying to get that sorted out

and once that's done we can drop the kerb and it's good to go.

Let's take a look upstairs.

The property has three bedrooms - a single and two good-sized doubles.

The walls have been painted white and a new carpet laid.

I'm sorry to see that the original fireplaces have been removed

because I liked the period charm they gave the place.

But Alistair has kept the original doors

to retain some period character.

The bathroom and separate toilet needed remodelling

and a new suite.

He has done well to combine the two rooms,

creating a good-sized family bathroom.

Alistair had hoped to have the renovation done in three months,

but there's one thing no developer can control - the weather.

It's taken a little bit longer than expected to.

We had a couple of weather delays and cold snaps and we couldn't build the extension.

And the last couple of weeks hasn't stopped raining, so we couldn't work outside.

We've got about another two weeks' work and then we'll be ready to go.

The bad weather caused the spending to increase

as specialist trades, such as the electrician,

took longer than budgeted to complete.

Laura and her parents had hoped to have it all done for £20,000,

but Alistair always felt that was on the low side.

The budget, we're a little bit over.

I'd say we're going to be in the vicinity of £28,000-£32,000

once we've finished.

The family decided to save money by not applying

for planning permission to convert the attic.

Alistair believes the total investment on this renovation will be around £310,000,

including purchase price, Stamp Duty and all costs and fees.

Alistair's quality craftsmanship can be seen throughout,

but by not applying for planning permission for the attic conversion,

has he maximised the potential to add value?

We asked two local estate agents for their opinions.

First impressions on the house are that he's done a lot of work,

the downstairs extension is great.

It's given him a nice-sized kitchen and also a breakfast eating area,

which is very popular these days.

It's a well-presented, three-bedroom semi-detached house.

It's got modern fixtures and fittings in kitchen and bathroom

and I'm sure it'll attract buyers.

The property will be put up for sale. Remembering that investment of around £310,000,

do the estate agents believe Alistair has added enough value to make a profit?

I would ask £340,000 for the house

and would expect to receive somewhere in the region of £325,000-£330,000.

We would look to achieve, in the current market, £325,000.

Those figures would mean a potential profit of £15,000-£20,000.

Is Alistair pleased with those figures for his 4½ months hard graft?

The resale figures are quite satisfactory. We're happy with that.

As long as we achieve them, then all good.

Since filming, Alistair has completed all the works,

landscaped the rear garden,

finished the drive and finally got permission to drop the kerb.

The property's now up for sale for £335,000, so will he buy from an auction again?

Definitely. As long as the property sells and we make some money,

then, yeah, we'd love to do it.

Back now to County Durham and this three-bed semi in Bowburn,

bought at auction by Ian and his wife Sandra for £43,000.

This renovation was going to be a real family affair

with daughter Lindsay coming up from London on weekends to help out.

-What do you think about them getting involved in this?

-A bit crazy, to be honest!

-Really?

No, it's always been their dream.

They used to do houses out, so it's getting back to that.

-Do you see this being the restart of your passion for property?

-Yes.

We plan on using the money that we make from it in the next project.

With a £15,000-£20,000 budget and a six-month timescale,

there's quite a lot to sort out with new central heating

and new windows and sills topping the list.

Well, 5½ months later, we're back.

It looks like Lindsay has a new hairstyle and a baby bump as well.

Let's not forget about the house. That's undergone some changes, too.

# Liz Taylor is not his style

# And even Lana Turner's smile

# Is something he can't see

# My baby don't care who knows it

# My baby just cares for me... #

Well, I think things here are looking blooming wonderful,

but has young Lindsay been as hands-on as she hoped she might be?

Er, I tried to be here, but when I found out I was pregnant,

I couldn't spend much time here,

so I had to stay out of the way more.

Quite right, too.

But while Lindsay was preparing for a different kind of labour,

Mum and Dad have been pretty busy here in the last few months.

So what's changed exactly?

Everything from bringing the gas into the house

to doors and windows, stripping walls, plastering walls,

ceiling, new kitchen, new bathroom, downstairs toilet and carpets.

What have they been getting up to upstairs?

A new bathroom's been put in, all the bedrooms were stripped down,

new floorboards have been put in one of the bedrooms,

carpets, everything you can think of, through to windows.

Has the renovation gone nice and smoothly?

There was one problem when Ian's foot went through the ceiling!

He had to put a new ceiling up.

He put his foot through one of the floorboards and came through the ceiling in the kitchen,

but apart from that it's gone swimmingly!

Thankfully, no lasting damage there to husband or house.

The new kitchen is a big improvement on what was here before -

bright, light and spacious.

This was the kitchen, where we had the coal house and the pantry.

We got all that knocked down.

There was a chimney breast across that wall. That was knocked down.

Then we had the walls and ceiling plastered, when my husband's foot knocked the ceiling down!

Then there was central heating put in and we've had the floors and the kitchen put in.

And this is where the combi boiler is, in this cupboard here.

So it's out the way and I'm quite happy with the results.

The new patio doors in the sitting room make this a lovely family space

and if you ignore the pouring rain

things are looking up on the outside, with new uPVC windows.

And the wilderness that was the garden?

Well, talk us through the changes here, Sandra.

What we did in the garden was we actually gutted it all. It was quite a mess, overgrown with weeds.

And we've had the tree surgeons in to cut a lot of trees down cos there was quite a lot.

I'm quite pleased with the result. I'm really happy.

Job well done, I'd say. And with the monoblock out front power-washed,

the house really is looking the business now.

And done in just under their six-month timescale, which is great.

-But what about their £15,000-£20,000 budget?

-We didn't stick to it! We went way over.

It was 22 in the house and it cost 24 with the outside,

but half of it was on the decking, so, you know, £24,000.

I think that's still pretty good given how much they've had to do.

Including the purchase price of £43,000, the total outlay is £67,000.

We asked along two local estate agents to see what they make

of the refurbished property.

The refurbishment work

is extremely good in terms of the quality of the finish and making more space in the kitchen area.

It's a well-finished property. Good-size bedrooms,

good-size garden, in a popular area.

What could the semi fetch as a rental?

On the rental market at the moment, it should achieve in the region of £450-£475 per calendar month.

Potentially, we could expect to achieve a rental of about £500 per calendar month.

I don't think we're looking to rent it out anyway. If we can sell it, that's what we aim to do.

If they did let the property, they could be looking at a pretty healthy yield of around 8% or 9%,

but the house is already on the market to sell, so what do the experts think it should fetch?

In the current climate, I would reckon it would achieve somewhere

in the region of £85,000-£90,000.

I'd value this property at £90,000.

That's about what we thought.

As long as we make a little bit off it, it's more of a learning curve.

Selling on for £85,000 or £90,000 could mean a pre-tax profit,

before fees and expenses, of £18,000-£23,000,

which is really pretty good for a learning curve.

But have they enjoyed the process?

It's been a good experience.

I think I would do it again.

Definitely, when you add the figures up, it's a healthy profit, so yeah.

Well, good luck to them with the house and the baby when it comes along.

# Baby, I love, I love you... #

Well, the world of property is never boring,

but you do need to know what you're doing and we can help.

So see you next time for some more cautionary tales

-and success stories on Homes Under The Hammer.

-Goodbye!

Subtitles by Red Bee Media Ltd