Episode 42 Homes Under the Hammer

Sometimes the property market is quiet

and sometimes it's positively booming.

But whatever the situation, you need to know...

..whatever you're purchasing is a solid investment.

So you need to buy carefully and you need to buy well.

One way you could potentially buy those properties

is under the hammer.

It doesn't matter what kind of property you're looking for,

you should be able to find it at an auction.

The choice is usually pretty wide!

Here's how our buyers spent their money on today's programme.

This flat in Fulham has the potential to go up in the world.

That is a sure-fire way of adding a lot of value to this place.

First impressions of this bungalow in Bradford are deceptive.

Real on the bottom, plastic on the top. Lovely!

And in Chorley, Lancashire, if you're after accommodation

there's a nice surprise once you get inside this property.

Look at all this space! I love it!

-All these properties went to auction.

-350...

And we'll find out who bought them and what they paid

when they went under the hammer.

Today, I'm in one of the most sought-after corners of south-west London,

Fulham, SW6 to precise.

Having an SW6 postcode is extremely desirable,

but the properties usually come with a hefty price tag around here.

Houses on this road have sold in excess of a million quid.

I'm here today to see a two-bedroom flat.

It had a guide price of £250,000,

so there could be a nice profit margin here, if somebody plays their cards right.

Let's go inside and see what you get for all that money.

It's a self-contained, two-bed, split-level flat,

occupying the first floor and upwards

of this very attractive building,

with a mezzanine floor at the rear.

All in all, it's a promising start.

Lots of stairs everywhere, but some people like that. It gives you the feeling of space.

You've got a really good-size kitchen down there,

a good-size bedroom, a lounge and there's another bedroom and bathroom upstairs.

What I like about this is, there's enough room to add an extra staircase.

Why would I want to do that? You only need to go out there

and see the amount of builders adding loft extensions.

You can see up there there's a big old space.

I'd love to have a dig around and see if you could convert that.

I think, judging by the neighbours, you probably could,

and that is a sure-fire way of adding a lot of value to this place.

It's great that there's already a precedent set

with other loft conversions on the street.

So, as long as you're not greedy,

getting the planners onside should be straightforward.

And as it stands, the attic rooms do feel a bit cramped,

so a flat-roof Mansard extension gets my vote.

But out back this flat has an added bonus.

With a first-floor flat in London, you might presume you get a little balcony.

But no! You get a garden!

# Daydream

# I fell asleep amid the flowers

# For a couple of hours

# On a beautiful day #

With your very own patch of garden, the flat appears to have it all.

But as is so often the case, I'm afraid there is a catch.

There's always something with an auction property, isn't there?

Unfortunately, this flat comes with a covenant

that will put some people off.

The vendor cannot sell this property to a purchaser

who intends to occupy this house as his or her principal home.

That will be a serious restriction for some

and emphasises the importance

of reading the legal pack before going to auction.

The vendors are the local council

and the covenant ensures that the income from the sale

goes directly to them and not to Central Government.

It means that you'll either have to do this one up and let it, or sell on.

So investors only, please.

We asked along a local estate agent to give us his take on the flat,

which went to auction with a guide price of £250,000.

I personally think it's fantastic. I love it.

It's the sort of property I like getting my teeth into.

It's got huge potential. It needs a lot of work.

The return you get is not only personal

but there's a sense of gratification of seeing the finished article.

If the purchaser kept the existing layout, did the flat up,

what could they put it on the market for?

If I put this property on the market in good condition,

I'd look to achieve in excess of £475,000.

What about the rental income?

I would look to rent this out for £1,700 per calendar month.

If they added a bedroom by extending into the loft space,

what might the flat be worth?

If the property was fully extended, I'd look to achieve in excess of £550,000.

What would that do to the potential rental income?

As a three-bedroom, I would look to rent this out at £2,000 per calendar month.

This could be a great flat -

it's in a fabulous location, there's scope to add value,

but that covenant will put some people off.

Let's see who was brave enough to bid at the auction.

Lot 90.

A two-bed, self-contained flat. First-floor flat.

I've got a proxy bid with me here.

Who'd like to kick off on this?

220!

Er, 300 with me. Now what?

305?

Oh, God, you don't have to look! 305!

310. 315. 320. 325.

320 with me, with a proxy bid.

325? 325. 330.

335.

350. 355.

Three...

..sixty with me. 365.

365. 370 with me.

375.

375, with the gent down here.

-380.

-With the proxy bidder out of the picture,

this one was between two interested parties,

and the bidding was soon up over the £400,000 mark.

..404?

405? 406?

Yes? No? 405, sitting down.

I feel someone else is coming in. 406. 406?

If not, 405, first time.

406. 407. 408.

409. 410.

410. 411. 412.

412. 413.

414.

413, first time.

Second time. Third and last time.

Sold, 413.

That successful bid of £413,000 was made by London-based Anthony,

who runs a construction and property-development company.

I met up with Anthony and his pet Yorkie Frankie...

# Hey, Frankie! #

..back at the flat to find out his plans.

# Hey, Frankie

# Do you remember me?

# Frankie

# Do you remember? #

It's great to meet you today.

You were rather lively at the auction.

Well, I put in the low starting price

and obviously it went up a lot further,

but I got it in the end.

You paid £413,000 for this property.

How much research did you do into the road and the area and the flat?

Well, I know the area pretty well,

in fact, we refurbished a pad just round the corner,

so I'm quite au fait with Fulham, I know it quite well.

Are you in the business?

I have been for about 20 years, something like that.

Yes, I've got a property construction company, so, yes.

Tell me how that all started.

Ooh, crumbs! Well, I was a drummer, funnily enough, in quite a few bands.

I lived in America for a while and played over there

and suddenly thought, "I've got to earn a bit of money!"

So I came back to England and bought my first property in Wimbledon

and, erm, just carried on from there, so...

It was a good way to make a bit of money. Drumming didn't!

-Are you drumming any more?

-I still have my drum kit set up!

I sit in at weddings and balls and that kind of thing, when I'm allowed!

-Not so noisy, then!

-Yes!

# Hear the drummer get wicked! #

And the music to my ears is that Anthony has big plans for the flat,

including converting the loft and really opening the place up.

We're going to knock through on this particular wall.

We're going to completely strip out all the electrics, the plumbing.

Every single wall and ceiling will be coming down.

Then we're going to be putting the stairs in just over there

and basically extending it like that.

Theoretically, we'll get three bedrooms, three bathrooms out of it.

Do you think there's going to be any problems or do you still think you've got a good buy?

Well, I'm just trying to sort out the party wall agreements,

which can be a little bit complicated, with the neighbours,

so we're just sorting that out at the moment.

But, touch wood, we should be all right!

How long do you think this is going to take you, this whole project?

Well, the planning's already gone in

and we should, hopefully, get an answer back within about six weeks,

and, hopefully, it shouldn't be too much of a problem

because we're emulating what they've done next door.

Er, about four months.

So, the grand plan - rent or sell?

Er, I'll see how I feel at the end of it, to be honest.

I may well rent it, but I'll see how the market's doing in a few months.

Well, this drummer-turned- property developer appears to have this one taped.

He's no stranger to developing property in the swankier pads of London,

so it sounds like he might do things to a pretty high standard here.

What sort of budget are you looking at to spend?

-About, er, roughly round about £90,000.

-OK.

And you've done so many properties like this before,

this is just another one to add to your list.

-True!

-Tell me how it works for you.

Do you just get a team of guys and off you go?

I've got quite a lot of builders who work full time

and, yes, they're great.

We've got a couple of projects going on at the moment

over in Chelsea,

which is mainly my base of where we work,

sort of Chelsea, Belgravia.

-So I expect to see top spec here.

-Ah, yes!

-Walnut.

-Yes.

-Low lighting.

-Yes.

-Mirrors.

-Yes.

-It's going to be gorgeous.

-Oh, yes!

It's been great meeting you today. Well done. Congratulations.

-Thank you.

-Thank you.

With years of experience behind him and his own building firm,

I can't see many problems for Anthony.

But how will he get on with the planners? Will he obtain permission to transform this property?

And what's going to happen about that party wall agreement?

Is he going to do this in less than six months?

Join us later and find out what happens.

This is Wibsey, a suburb of Bradford.

It used to be a village in its own right,

and in times gone by, what's now The White Swan pub was used as a courtroom

and its barrel-vaulted cellars used to lock up criminals.

But it's property, not people, that I'm here to pass judgement on.

So it's a pleasant area and the property I'm here to see doesn't sound too bad either.

It's a dormer bungalow, guide price £100-110,000.

Let's take a look!

This two-bedroom property is hardly what I'd call run of the mill.

It's definitely a bungalow that wants to be a house,

with a substantial dormer extension, big windows and a decent front garden.

It even has a garage.

So, what have we got? Quite a nice little entrance foyer here.

The stairs, unusual though they are, lead up to the bedrooms!

And interesting colours! Can't wait to see what the rest of the house is like.

Groovy!

But it's not only the wallpaper that's showing its age.

That brick finish and antiquated radiator

shows that this property has become stuck in a time warp.

So through to the kitchen and, actually, I really like this space.

Yes, it needs some new units in there and get rid of the polystyrene tiles,

but as a space, it works.

And then out here,

well, it's a bit shabby,

but the concept of having this kind of space would work really well.

So stick a much nicer conservatory on here

and that would be really pleasant.

# Let the sun shine Let the sun shine, baby

# Let it all go Just let it all go, baby #

A new conservatory here would create a lovely place to sit

when the sun actually shines.

But there's another tacked onto the side of the property,

overlooking the side garden and backing onto a small dining room.

With a downstairs cloakroom, the tour of this floor is nearly complete.

So the only room left to discover is the living room, and here it is,

he says, almost banging his head on the light fitting!

I mean, like the rest of the house, a very '70s/'60s feel to it!

But a good-sized space. Lots of light coming in through the windows.

Look at that - fantastic.

And then this fireplace, which is...

Well, you either love it or hate it!

Real on the bottom,

plastic on the top! Lovely!

# Isn't she lovely?

# Isn't she wonderful? #

OK, maybe it's not quite as attractive as it was in its prime,

but what else is in store in the rest of this wonderfully retro house?

Well, upstairs, the large dormer area contains two large bedrooms

and both have plenty of storage space.

There's also a small box-room and, surprise, surprise, a rather dated bathroom suite.

But along with a decent-size plot, this is quite a substantial property.

What does a local estate agent make of what's on offer here

and its current condition?

You can clearly see it's a 1960s build.

It's in need of a lot of work.

It needs rewiring,

a lot doing to the roof and a complete overhaul inside.

If the work was carried out, what kind of returns could this bungalow,

guided at £100-110,000, yield?

I think it would probably go for £150-155,000.

The rental market, it'd probably go for about 550 per calendar month.

Well, it's a lot of house, in a good area,

at a very attractive guide price.

I'm sure there was lots of interest when it went under the hammer.

As the lot came up near the end of the day,

it was a quieter auction room that prepared itself for the battle for this bungalow.

Lot number 121, the vacant, detached two-bed dormer bungalow in need of renovation.

Start me off, if you will, at the bottom of the guide,

£100,000.

£100,000 for it. Thank you. Straight in at 100,000.

110.

120. 130. 131. 132.

133.

One more? OK. 133. 134. She's still going.

135. 135. Still going. 136.

137.

138. 139.

Shaking his head. It's 138,000, lady's bid.

He's going to be a gent and let her have it. £138,000 we have.

139. Not such a gentleman after all, perhaps! 139. 140.

141. Again, sir?

141, he will. 142. 143.

143, he will. 144. She's still going. 145.

146.

147.

148. 149.

150. 151.

No? Shaking his head. Selling for the first time.

150. Second. Third and final time, all done.

Thank you, madam. Well done.

So for £150,000,

the delighted new owners of the dormer bungalow in Wibsey are Jackie and Steve.

Jackie's an administrator at Leeds University,

while husband Steve is a compliance officer

for the electrical department at a hospital.

Although they had seen the property prior to auction,

it wasn't quite as they remembered or expected.

-Steve, Jackie, lovely to meet you both.

-Hiya!

Congratulations. Tell me...

Why did you raise your eyebrows like that?!

I was about to say congratulations on buying this place, but...

It was an interesting walk through the door!

-How? You'd seen it before you bought it.

-Well, yes, very quickly.

Very quickly, yes, about half an hour.

So, what did you think when you walked through the door?

-"Help!"

-THEY LAUGH

Politely...!

Why?

Er, we knew it needed work,

but then reality dawned just how much Steve has got to do.

Ooh. And you were thinking at this point?

-"Ooh."

-Ahh.

-Hopefully, it's all just decorative.

# Ooh, ahh, just a little bit Ooh, ahh, a little bit more

Ooh, er! There is a little more work than the couple first thought.

As they've already paid £150,000 for it,

£40,000 over the guide price,

I can't see this being much of a money-making venture.

Tell me about you two, then. What's brought you into this line of, well, adventure, I suppose?

We have a daughter who lives only a couple of miles away, having her second child,

so grandparents, close at hand to help.

-So you've bought it for you or...?

-Oh, yes.

-For us to be nearer her.

It's not a money-making venture.

The initial idea was to downsize to a semi, really, smaller,

and we just got carried away!

It must've had something to make you get excited, because you went to auction and bought it.

It's different!

-Each house that we've -

-We tend to buy different houses,

not like the ones adjacent, not like your next-door neighbours'.

# If you don't want to Do what the rest do

# Dare to be different #

Well, there's no doubt that this dormer bungalow is different,

but some of those differences are less welcome than others.

Tell me what you're going to do to sort it out.

I'm going to rewire the property.

I've got a friend that's a plumber. Hopefully, he will help us with the central heating.

I've got a son that's a plasterer, so he'll re-skim all the walls.

New kitchen, new bathroom.

-There's quite a bit of work, then.

-There is quite a bit.

He hasn't got to my list yet!

What does your list entail?

The downstairs loo, I want a shower room in there.

Upstairs, the bathroom reconfiguring to get a shower.

Looking to split this large bedroom into two.

So she's added a few things to your list, Steve.

-Indeed, yes!

-He did know some of them!

# You've got to help me

# I can't do it all by myself #

So Steve will be busy,

but he's enlisted his son to help him.

They'll bring in tradesmen for any building work

so the entire burden isn't on Steve's shoulders.

What's the budget for all the work?

We have taken a loan for £50,000.

What about the timescale?

-We'd like to think five to six months, wouldn't we?

-Yes.

But it's whatever to get it the way we want it.

-Well, congratulations.

-Thank you.

-I look forward to seeing how you get on.

-Thank you.

-And, er, all the best.

-OK!

Well, it seems that Steve has slightly more on his to-do list than he originally thought.

And as for downsizing, I don't think that's quite gone to plan either.

Find out if the renovations turn out as they hope later in the show.

Coming up, in Chorley, Lancashire, this mid-terrace has many positives.

But there is that niggly negative that is "no bath"!

Back in Bradford, Jackie's delighted that Steve's lived up to his reputation.

His name in the family is Mr Fix-it!

But first, in London, what's the expert's opinion of Anthony's conversion?

If I had the money I would buy it in a heartbeat.

In the rather swanky surrounds of south-west London, Fulham, to be exact,

a two-bedroom first-floor flat in an elegant white-fronted building

was bought at auction.

The split-level flat not only came with well-proportioned rooms and period features,

but also had access to a rear garden.

And with the possibility to add a loft conversion to increase its size,

this looked like a great opportunity.

It was bought for £413,000 by Anthony,

who has run his own construction and property-developing company for the last 20 years.

With his budget of £90,000 and a five-to-six month timescale,

this former drummer in several bands

was hoping this property would be his next hit.

Tell me how it works for you. Do you just get a team of guys and off you go?

I've got quite a lot of builders who work full time

and, yes, they're great.

-So I expect to see top spec here.

-Ah, yes!

-Walnut.

-Yes.

-Low lighting.

-Yes.

-Mirrors.

-Yes.

-It's going to be gorgeous.

-Oh, yes!

Even with plans for a loft conversion,

for a professional like Anthony

this refurbishment should be pretty straightforward.

15 months later, we're back with Anthony and his dog Frankie

to see if it really did go as smoothly as he'd hoped.

# No need to ask He's a smooth operator

# Smooth...operator

# Smooth operator

# Smooth operator #

With the bedroom turned into the kitchen

and the old kitchen turned into an ensuite bedroom,

this property has been completely transformed.

With a fully comprehensive refurbishment throughout,

this flat is almost unrecognisable.

But what does Anthony think about what has been achieved here?

It was pretty nasty when I first came in!

Hopefully, I've brought a little bit of style back to it,

which has brought it back to its possible heyday.

He's certainly done that, plus a bit more...

..with a stunning loft conversion which houses a high-spec family bathroom...

..and another bedroom, complete with an ensuite shower room.

This is now a three-bedroom flat.

So, did it really all go to plan?

I very much stuck to the original plan

that the architects did the drawings for,

which was basically emulating what they'd done next door.

So there was actually no great issue with the planning. That came through very easily.

It was purely time buying the freehold,

which, er, took the time, from the council.

In order to do the loft conversion, Anthony needed to buy the freehold.

In conjunction with the downstairs-flat owner,

they eventually managed to buy it for 25,000,

with Anthony paying £17,000 of that.

This process took several months and significantly held up the building work.

In fact, in spite us being back 15 months later,

the whole project took only seven months,

with the flat stripped right back to a shell

and then rebuilt in the new layout.

So we've widened this door,

that was quite a bit smaller originally,

and we blocked off a bedroom door just on the left-hand side there.

Obviously, we did this knock-through here, as well.

We had to put a lot of steelwork in

to basically keep the upstairs up.

And we actually dropped this floor and the floor in the bedroom downstairs, as well.

We took the chimney breast out here,

so it's widened the space up,

and put a lovely kitchen in.

So, what do you think about that, Frankie?

"Rubbish!"

Well, this is far from rubbish!

With granite work surfaces and magnificent walnut floors,

this is a high-spec kitchen to go with that fabulous lounge

in what is now a three-bedroom flat, two of which are ensuite.

And then there's that beautiful family bathroom.

But a finish like this doesn't come cheap.

I initially budgeted for round about £90,000 to do the project,

but I ended up spending around £100,000 on it.

A £100,000 spend,

on top of Anthony's £413,000 purchase price,

and 17 grand to buy the freehold,

would mean a total outlay of 530,000.

So, has this property been worth the wait?

What do two local estate agents think?

The developer's done an excellent job.

There's a superb blend of modern and contemporary features

and this offers an excellent opportunity for the eventual buyer.

I think the finish has been finished to a good standard.

I particularly like the walnut floors and the work surfaces in the kitchen.

And to have three really good-sized double bedrooms, as well, is a real bonus.

I had an instant gut feeling, and it is definitely something I would live in.

If I had the money, I'd buy it in a heartbeat.

Of course, if you don't have the money to buy, you could always rent it.

How much would you have to pay for that?

I expect this property to achieve a figure in the region of £2,600 per calendar month.

I think this would rent out for £2,600 per calendar month.

Great! To be honest, I hadn't looked into the rental situation as yet,

but it's something I'll consider over the next couple of days.

But, yes, that's a happy prize.

Rental values of £2,600 per calendar month

would see a rental yield of around six percent, which isn't bad.

But more importantly,

how will his £530,000 investment fare

on the resale market?

I expect this property to achieve a figure in the region of £650,000.

I think this would sell for £650,000.

I budgeted for, erm, round about sort of 600, 610,

so anything over that was going to always be a benefit.

So, yes, I'm very happy with the outcome.

In fact, since filming he's accepted an offer of £675,000,

meaning a pre-tax profit of £145,000.

So, how does he feel about it now?

Glad that it's over, to be honest!

but I'll certainly be moving on to the next one pretty quickly.

For the next property that went under the hammer at auction I've come to Lancashire.

I'm in a village called Coppull,

just five minutes drive from Chorley Town Centre.

I'm here to see this terraced property. It's got two bedrooms.

The last house to sell on this road

achieved over £99,000,

so I was really interested when I heard about today's lot.

It went to auction with a guide price of £49,000.

An attractive price, and the house seems pretty good, too.

It could probably do with a fresh coat of paint, but the brickwork appears OK.

The roof and guttering look original, so I'd get those checked out

and maybe lift the slabs in the garden.

A bit of turf would make a more favourable impression.

Wow! Proportionally, I was not expecting this!

Look at this space in here! Gosh, it's incredible!

You've got double glazing,

your feature wall taken care of, it's been nicely wallpapered.

A rather modern fireplace, some people will love that.

And lots of space to put your furniture.

All in all, a really good start.

This is the kitchen at the back. Again, look at this space! I love it!

Little nooks and crannies! You can put storage cupboards everywhere.

It's fantastic. Really, you could keep it as it is.

And right at the back you've got, well, it's not a toilet,

it's not a bathroom because there's no bath, sadly. It's a shower room.

That's a disappointment. I'm wondering whether they've managed to sneak in a bath upstairs.

I'm going to investigate.

If I do find the bath upstairs,

you could turn the shower room into a really useful utility room.

It already houses the boiler and is positioned right behind the kitchen.

Upstairs, turn right at the top

and there's a huge master bedroom at the front.

It could be even bigger if the wardrobe was removed.

And I wonder what's behind the radiator.

An original fireplace maybe?

Across the landing to the left, the second bedroom at the back is a fair size, as well,

even though it's lost some space to the airing cupboard behind the door.

And next to the bedroom, has someone found enough room for a proper bathroom?

There's already a small space housing a loo and a sink up here.

I'm not sure you could get a bath in there. It would be so cramped!

That answers my question. A bath needs to be installed downstairs.

I would turn this into a really nice shower room for the family.

There's also plenty of room in the master suite next door

if you feel the need for luxuriating in the bath upstairs.

Out the back of this mid-terrace, guided at 49,000, it's not great.

There's a huge garage taking up valuable garden space

so you're left with only a strip of concrete,

although off-street parking is a bonus.

What would a local estate agent make of this place?

We invited one along to hear what he'd recommend

as the best solution for the lack of bath.

I'd say to keep the toilet upstairs as a toilet and a shower room if possible.

I don't think there'd be enough room to put a bathroom upstairs.

Downstairs, I'd put a bathroom where the original bathroom is now.

I'd put a bath in there, as well.

The kitchen doesn't need that much doing to it. The windows look quite recently fitted.

So it's basically just a bit of refurbishment, really.

So, what's the best option here -

a full renovation and look to sell, or a quick makeover and let?

It's probably worthwhile refurbing and renting out.

By the time you spend the money on refurbing it,

you're not going to make a great deal of money back.

OK, let's talk figures. What's the potential sale price

compared to the rental income?

When refurbished, I could put this on the market for £90,000.

On the rental market, you're probably looking between £450 and £475 per calendar month.

Whoever takes this on will need to do some minor alterations.

There's lots of positives, but there is that niggly negative

that is "no bath"! But that is easily solved.

Let's go to auction and find out what the future holds for this little house.

Lot 33, a two-bedroom, traditional terraced house, with garage.

Lot 33. Bid me on this one. May I say 52 for it?

50. 48, under the guide. 48 I have. Thank you.

At 48,000. 49.

49. At 50. 51. 51.

52? 52.

52 and a half, either of you?

53? 53 and a half.

54. No? 54 and a half?

55? And a half? 56? And a half?

57? And a half? 58? And a half?

59? And a half?

60. You're quite enjoying this, aren't you? 60,000.

Don't be put off by them. And a half?

60 and a half. 61? And a half.

62? And a half? 63? And a half?

64. Are you sure?

£64,000, the lady's bid. 500 somewhere else?

At £64,000, then, for the first time.

Second time. Third and last opportunity.

Sold at 64,000.

And those enthusiastic bidders who secured the property for 64,000

were Hayley and her daughter Jessica.

Hayley gave up her job in a supermarket a couple of years ago

to start property developing with her husband David.

But it's Hayley who'll be overseeing the work, with a helping hand from her daughter Jessica.

Ladies, it's lovely to meet you. Congratulations.

What's the story?

I just started a couple of years ago

with investments for when the kids get older.

It's very difficult for them to get on the property ladder unless they've got plenty money.

So we've got our house

and we want to make sure the kids have got a house each if anything happens to us.

Hayley's taking the long-term view, so she's holding on to the properties she acquires.

She and her husband David, an electrical engineer,

have already renovated and rented out three other properties.

In this unstable economic climate,

a lot of people are very wary of buying a lot of property.

-You don't seem to be too worried about it.

-No, not...

We do all the finding the houses and my husband sorts out all the finances.

He's the brains.

-He's the brains behind the operation.

-Behind the money, yes!

So you all work really well together.

And then there's my boyfriend, who comes in,

and he'll be ripping wardrobes out and all that.

-There's all of us, isn't there?

-Everybody gets involved. Everybody will do their bit.

Well, if everyone chips in, they could have this done in no time.

But just what is the plan?

Definitely putting a new bathroom in or an ensuite in each bedroom,

depending on the plumbing works for the toilets.

That is going to be quite costly, getting the plumbing to the bedroom across the stairs.

My idea was to have a good quality, lovely big shower-room up there

so you do have the facilities to wash and shower upstairs, with a toilet and sink,

and then just have a really nice bathroom downstairs

so you can still have your bath.

I know it's not ideal and people would prefer a bathroom upstairs,

but I think you've got to be careful not to exceed your upper limit.

That's it, yes. We'll have to wait and see how much things are going to cost.

If we put a full bathroom in upstairs,

we'll take a few feet off the smaller bedroom

and then the builders will knock walls down

and put a new one up and put a bathroom suite in.

But hold on. Have you actually really thought about that?

I'm not so sure you could even get a small bath up there in that small room.

-You can. We've got a good builder!

-But you need to move the wall.

You can't encroach on the window. It would be extremely tight.

Yes, he said he'd be able to do it, yeah.

One way or another, Hayley's determined to get a bath upstairs

or implement her other idea of two ensuites,

which still sounds pretty ambitious to me.

It does mean the downstairs shower room would be freed up to become a utility room.

But how much is all this going to cost her?

What sort of budget have you got?

We did have a bigger budget, but we've just bought another one, so it's 5-6,000 now.

So with the money that was supposed to be the budget, you bought another property? What?!

Since Hayley started buying properties, it seems there's no stopping her.

This is her and David's fourth property

and they've already purchased their fifth.

With the family rallying around, Hayley's not concerned about the workload

and hopes to get the place finished in around six weeks.

How are you feeling about this, Hayley? You seem quite calm.

Calm about this, yes. Houses don't stress me out, really.

How do you two see yourselves -

out there, two new property developers!

Just two mad blondes!

Two mad blondes doing extremely well on the property market!

It's been lovely meeting you. Good luck.

-I can't wait to see how it turns out. Well done.

-Thank you very much.

The question is, two ensuites or one family bathroom?

I do worry that Hayley is going overboard with those renovations.

Two ensuites sounds a little bit excessive.

Will she end up overdeveloping this property and overspending?

Find out how Hayley and Jessica get on later in the programme.

So, Martin, time has passed, money has been spent, but has it been worth it?

Yes, have our buyers been busy or have they let the grass grow under their feet?

Time to go back and find out.

We head back to Bradford now, and the suburb of Wibsey

where we first saw this two-bedroom bungalow

with an interior like a time capsule from the '70s.

Ahh, the memories came flooding back.

It took me back to the days of Sta-Prest flares.

MUSIC: Soul Bossa Nova (Theme from "Austin Powers")

But enough of that. It was bought at auction for a very up-to-date figure of £150,000 by Jackie,

an admin officer at Leeds University,

and her husband Steve, an electrical compliance officer for the NHS.

When I first met them, they'd forgotten how the place looked!

So, what did you think when you walked through the door?

-"Help!"

-THEY LAUGH

-Politely...!

-Why?

We knew it needed work,

but then reality dawned just how much Steve has got to do.

As it was going to be their new home to be nearer their grandchildren,

the couple had a £50,000 budget and a five-to-six month turnaround

to drag this place into the 21st century.

But it was 12 months later when we returned

to see just what they had done here.

Well, on the outside, new windows and cladding have been installed.

And take a peak round the side

and the old lean-to has been replaced by a new extension.

That means with the removal of the old toilet and rear kitchen,

a fantastic, spacious open-plan kitchen area has been created inside.

What a stunner!

At the front, the living room has been brought right up to date,

with light, neutral tones creating a spacious feel.

And that fireplace has gone

but we'll let Jackie tell us all about that.

In this room the fireplace was, let's say, interesting.

We had to rip one, two and then three fires out

before starting to bring it up to today's standards

and to give what I think is a nice-looking fireplace.

To get this bungalow up to today's standards,

the upstairs space has been tackled in a big way.

The new staircase takes you up to a rejigged layout.

Walls have been moved, splitting the main bedroom into a double bedroom with patio doors,

originally hidden by a wardrobe.

And a single bedroom...

Repositioning the walls has also created another double bedroom.

And a beautiful bathroom, which is now larger than before,

as Steve explains...

I initially installed the bath where the existing bath was, and a shower in the corner,

but it made the bathroom very compact,

so I decided to knock through the wall and install a shower cubicle.

I then moved the bath onto the wall where the shower had been installed

and I think that makes the bathroom a lot more spacious.

Back downstairs, a new loo has been installed

and the dining room and conservatory have been made over,

looking out over a beautiful little garden.

It's an amazing transformation

from the dated bungalow to a modern des res.

But it wasn't without its share of troubles.

The schedule overran by six months to a year

because they felt badly let down by their builder and redid much of the work.

So, who took the job on?

-Steve did it!

-You just take it in your stride

and put right what was not right, as it were.

He's a very modest man, but he's extremely resourceful.

His name in the family is Mr Fix-it!

# Yeah, I can do it!

# Yeah, I can do it!

# Yeah-eah-eah #

Sincere congratulations to Steve, who did everything from the plumbing to central heating,

the electrical work, fitting the kitchen and bathroom

and helping his son, a plasterer, to replaster the bungalow.

It's a great finish and a lot to be proud of.

But it seems the old groovy wall coverings aren't consigned to the past.

We've kept some of each of the wallpaper.

I intend to make a collage of that

and that's going to go in the study.

# Memories...

# Like the corners...

# ..of my mind #

It's lovely to preserve some things from the past,

but with all the troubles and schedule overrun,

did they manage to preserve that budget?

Well, we had what we thought was an amazing budget of 50,000...

..but that soon disappeared,

though we have kept just within it.

Add that £50,000 spend on the bungalow

to the purchase price of £150,000,

and Jackie and Steve's total outlay is £200,000.

So it's time to hear from two local estate agents

whether they think the couple's hard work has paid off.

I really like what they've done with it.

I think it offers quite versatile accommodation.

It's vastly improved from last time I saw it.

They've obviously spent quite a bit of money on it, but they've done a really nice job.

The estate agents like it.

But let's remember, it's to be Jackie and Steve's new home,

so any market value placed on the property is purely academic.

But if circumstances changed,

bearing in mind their £200,000 spend, what could a resell achieve?

It would probably achieve around about £175,000.

I see this property fetching £165,000.

I think that's probably about right,

because we realised at auction that we'd gone...

..£25,000 over what we should've done.

So that, and considering we've spent 200,000 altogether,

it's probably about right.

Although there's no profit to be made on this property, Jackie and Steve are happy with their new home.

But should they ever decide to let the bungalow,

the estate agents gave valuations

ranging from £600 to £650 per calendar month.

The couple could make a rental yield of three to four percent.

So, how does that sound?

I never considered renting it!

We're doing it to live here,

not for someone else. It's for meself!

That's why Steve put all that hard work into this bungalow.

So while the couple enjoy a well-deserved cuppa

after all the trials and tribulations of this renovation,

what advice would they give to anyone thinking of buying property at auction?

Don't get carried away!

I think it's so easy to have thought,

"Just one more, just one more."

Keep that level head.

Back now to the Lancashire village of Coppull, near Chorley,

where earlier in the programme

I met Hayley and her daughter Jessica.

Hayley bought this two-bed terrace with her husband David for £64,000

to add to their growing portfolio.

With help from Jessica, family members and her builder,

she planned a refurbishment and a rejig.

She wanted to turn the downstairs shower room into a utility room

and to convert the upstairs loo into the family bathroom.

But I had my doubts.

Hold on. Have you actually really thought about that?

I'm not so sure you could even get a small bath in that small room.

-You can. We've got a good builder!

-But you need to move the wall.

You can't encroach on the window. It would be extremely tight.

Yes, he said he'd be able to do it.

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

Before we check out how they solved that bothersome bathroom issue,

let's take a tour of the ground floor.

The living room has retained the entrance area...

..but the room has a new fireplace and colour scheme.

They've kept the wallpaper and salvaged as much as they could in the kitchen.

But a new oven, flooring and wall tiles

have helped to transform the room.

It seems to have been a case of "if it ain't broke, don't fix it".

In the kitchen, we managed to save quite a few of the units

because they're quite modern and they're all pretty decent.

We managed to save the worktops,

we've had a new oven put in and all tiled behind,

new flooring put down.

It's saved us quite a bit of money and was an added bonus.

Good to hear it.

But wait till you see what's behind the kitchen at the back.

Well, it turns out that the former shower room has had a major refit,

but not to convert it into a utility room, as Hayley planned.

There are new wall and floor tiles and a modern white suite has been installed.

Best of all, it's a proper family bathroom,

complete with a bath!

I always thought that would work better.

Upstairs, they've had a change of plan, as well.

The loo that was next to the rear bedroom has been removed...

..creating a much bigger room.

Jessica's delighted with the solution they eventually decided upon upstairs,

which was creating a Jack-and-Jill toilet between both bedrooms.

What a neat idea.

There was an ensuite here with just a basin and a toilet,

which we knocked down to make two decent-size double bedrooms.

But we decided it wasn't practical enough without an upstairs toilet

if there was a mother, say, with a child,

so we built the Jack-and-Jill ensuite with a basin and toilet.

What I was thinking was, if I lived here with my little boy and he had that room,

this ensuite would be perfect.

Well, it's a good compromise - keeping the bath downstairs

and building a new loo above the staircase

with access from the back and front bedrooms.

But it meant walls had to be removed and two new doorways created.

So, at what stage was all that done?

Them walls came down quite soon, didn't they?

Yes. She got excited with the sledgehammer.

The two walls came down!

Well, once you've checked it's safe to do so,

it's always fun knocking things down.

It's the rebuilding that's the challenge.

But family and friends chipped in, plus experts when required.

We've had to get workmen to do the gas and electrics.

Apart from that, we've done 99 percent of it ourselves.

My granddad's been hanging the doors and the frame for the bathroom upstairs.

My boyfriend and the little boy's been helping, as well.

But as they'd almost finished the refurbishment,

they discovered a potentially fatal problem.

We had a gas leak. The kitchen was done and in here was done,

and when we went to pop a new fire in, there was a gas leak.

We had to put new pipes in going halfway round the house.

That was a biggie that we didn't expect!

It meant they had to employ two qualified gas fitters for a couple of days

to repair the leaking pipework and ensure everything was safe.

Hayley then decided to fit an electric fire in the lounge.

What effect did that have on the budget?

I think the budget was about five grand

and we've gone a bit over at 6.5, which isn't too bad,

because we had things like the gas leak

and ended up having a complete new bathroom in,

so it's not been too bad really.

That £6,500 spend,

on top of the £64,000 paid at auction

takes their total outlay to £70,500.

At the back, the yard and garage have been tidied up

and a couple of tiles replaced on the roof.

There are just a few finishing touches to complete.

So, do they still plan to add the house to their rental portfolio?

We're going to rent it out. We've got a few rentals.

Keeps an inheritance for these lot!

Time to hear what two local estate agents think of the house

with its relocated upstairs loo and new downstairs bath.

It's very nice. It's a good level of refurbishment.

It's nice and bright as you come in, there's two good-size room upstairs

and it's got a garage to the rear.

I think it's very stylishly presented

and it's complimented by the decent-quality sanitary kitchenware.

What rental income could Hayley and Jessica expect?

I think it should go on at £475 per calendar month.

If we were offering this to let,

I would expect that we would be looking to achieve a rental

of about £485-495 per calendar month.

Well, those rental valuations of £475 to £495 per calendar month

would generate a yield of at least eight percent.

-That's...

-About right.

-That's about right, yes.

We were expecting about 480, 485 a month,

-so it sounds about right.

-Pleased with that.

-It's good.

How much do the experts reckon the house is now worth?

More than the £70,500 invested here?

I think for a resale valuation, I think it should go on the market at £85,000.

If we were launching this on the market,

I would expect that we would be quoting an asking price of £89,500.

So a potential gross profit of 14,500 to 19,000

before expenses and fees.

-That's good.

-We were expecting around about 85.

-So the second one's better.

-Yes.

My husband will be happy! That will please him!

We've seen them all over the years - former chapels, railways stations,

telephone exchanges, listed buildings, all on the programme!

The variety is huge, so make sure you join us next time for more Homes Under the Hammer.

-We'll see you then.

-BOTH: Goodbye.

Subtitles by Red Bee Media Ltd