Episode 47 Homes Under the Hammer

Hello. Now, whether you're looking

for a lucrative investment or your dream home,

the property auctions may have something for you.

Even in the more challenging times,

there are still bargains to be had as long as you avoid those pitfalls.

So, join us now as we show you the ropes.

Well, a nod of the head,

a wave of the catalogue or a sly wink, it doesn't matter

how you bid as long as you get the auctioneer's attention.

Now, today, we'll be meeting some people who did just that,

but what three properties did they choose?

Let's find out.

These Victorian terraces in Manchester look attractive

from outside, but is this one as good inside, I wonder?

No. Actually...

In Kent, this auction lot makes a fabulous first impression.

This really is a massive hallway!

It is fantastic!

And I am in Devon, where I ascend to giddy heights.

Only the fit need apply.

What an extraordinary garden!

All these properties were sold at auction.

We'll find out who bought them and what they paid for them

when they went under the hammer.

# I'm not so sure and yet I know. #

I am ten minutes outside of Manchester City centre,

in an area called Gorton.

But this isn't the first time the area has been on television

because it was one of the locations for the TV drama Shameless.

Well, over the last few years,

there has been many millions of pounds poured into the area,

not least in the redevelopment of the shopping area here.

So, that is a good sign.

Well, the area has lots of houses like these - Victorian terraces

built around the 1900s, and jolly nice homes they can make, too.

What I am here to see had a guide price of 25,000 quid.

Well, it certainly looks like it needs a bit of tender loving care

from the outside, however,

this property is slightly more than it first appears.

It does look like a standard Victorian house,

albeit a rather dilapidated one, but is that what we'll find inside?

No, actually, you know what, it isn't.

It's flats. In fact, two flats.

This is the entrance door to the upstairs flat

and this is the entrance door to the ground-floor flat.

Nice size. Love the front there, big bay window,

lots of light flooding in, that doesn't look too bad.

Oh, dear. Famous last words.

Walk towards the rear of the property

and I am starting to see some very worrying signs of problems.

That is extraordinarily damp.

Let's continue through to the kitchen.

More mould on the walls there. And, um, all the... Wow!

All the walls feel really, really almost wet.

And if you look at the ceiling there, it's like

it's collapsing in. Latest design, Swedish flat pack.

Do you like that? Clearly, the kitchen needs...a bit of work.

But that is tiny in comparison to...

what I think could be some really horrible problems.

I wonder where I can find out more.

# I'm trouble Yeah, trouble now

# I'm trouble, y'all I disturb my own town

# I'm trouble Yeah, trouble now

# I'm trouble, y'all I've got trouble in my town. #

There really is a whole lot of trouble here,

from broken windows and damp to no central heating.

This flat needs to be completely taken back to brick

and started again.

Well, up the alarmingly steep staircase to the first floor

and the second flat.

And you know what, it's not getting any better.

In fact, in some ways, it's getting even worse.

Look at that.

Somebody has taken off the plasterboard ceiling

so you can see right through to the loft. There is no underfelt.

In fact, I can see a whole there.

I can see daylight coming through.

So, obviously, the roof is in a right old state.

Water has been pouring in over goodness knows

what kind of length of time. It has made this wall very damp.

It has gone through the floorboards, down to the floor below.

And the wall below, as well.

Who knows what kind of damage that has created in terms of rot

or whatever. And again, up here,

there's just this feeling that something isn't quite right.

You know what?

I really am not getting a good feeling about this place.

Yes, there is so much damp

and rot that I suspect the roof has been leaking for some time,

which has left the place in a pretty bad state.

The room sizes are OK,

but the shower room...

Well, that's the stuff of nightmares.

And the shocks continue outside.

What isn't good news at all

is what I've found at the rear of the house,

which is clearly an absolute disaster,

much worse than I thought.

What has been going on, my guess,

is that one of the drains here has collapsed.

And all the water that has been pouring down from the ceiling,

from the sewer pipe,

from wherever over the years has gone into the ground

and the whole of this rear is basically falling down.

You can see the bricks have all gone.

The windows, all the bits around the windows.

My first thought

is that though whole of this rear wall

is going to have to be taken down.

Suddenly...

..that's not good, is it?

You don't want the rear wall of the property going the same way

as the garden wall, which has already collapsed.

You can only reach the back garden through a gated area at the moment,

so the true horrors of this place could have gone unnoticed

by an unsuspecting bidder.

But bearing in mind the low guide price of £25,000,

it could still work as an investment.

Well, setting aside the obvious issues of the property

just for one moment,

let's take a bigger-picture view of what we should do with it.

Should we keep it as two flats or convert it back into one property?

That comes down to what you plan to do with that.

Renting it out, you'll probably get more money keeping it as two flats.

But as a resale, you're going to get more

from converting it back into one house.

So, as I said, it depends what you plan to do with it.

In order to put some numbers on those options,

we asked along a local estate agent to hear his expert advice

on this property

with its guide price of £25,000.

Well, obviously, this place is going to need

full renovation.

I mean, totally rip it down and start again.

The property hasn't been looked after at all.

It probably has even stood empty for a while.

Yes, it is a state all right.

But what's the best way to revive its fortunes?

I think if you turn this property back into a two-bedroom house,

you would be looking at putting the property on the market

for £75,000.

Two one-bedroom flats,

I think you would be looking at around about £35,000 per flat.

Despite its condition, it could still be

a viable resale proposition,

particularly as a two-bedroom house.

But what about rental?

Rental valuations on a one-bedroom flat in this area,

you're looking, I would say, £300 to £325 per calendar month.

You turn it back into a two-bedroom house,

you'd be looking at renting the property out within the region

of £450 to £475 per calendar month.

So, for an experienced builder or developer,

buried under the rubble, there could be a nice little earner.

Well, your initial reaction on this one might be don't touch it

with a barge pole, and to a degree, you might be right.

However, it all comes down to how much you pay for this property.

Because if you get it at a good enough price and allow money to do

all the major works that's needed, then you could still be quids in.

It's all about making sure you know what you are taking on.

Let's find out who bought it when it went under the hammer.

At £25,000, do I see a bid?

At £25,000.

I see 20 on my right.

At £20,000.

Who is going to give me 21? At 21, new bid at the back.

21,000. I see 22 on my right. 23.

It's going to you. 23, yes? No? 24? At 24,000 then. 25?

25. 26? At 26,000. At 27?

At 26 on my right then, 27 I'm looking for. 27 I have, new bid.

27,000. 28?

At 27,000, 28? 28,000.

29? At 29,000.

Do I see 30? 30,000 may I say at the back?

At £30,000.

31, he's back in at 31,000. Do I see 32?

He's in the market at 32,000. 33?

No. At 32,000 then. At 32.5 anywhere?

It will be sold at 32,000. 32.5.

33, may I put you in? At 33,000. 33.5? 33.5.

34 at the rear, I'm looking for. No. At 33,500 on my right,

gentlemen's bid. At £33,500, it will be sold.

34. At 34,000. 34.5 may I say on my left?

New bid, 34.5. 35.

At 35,000. 35.5 anywhere?

35.5, new bid at the back. 36. At 36. 36.5?

At 36.5. 37?

At 37. At 37.5? No. At £37,000 then, for the first time.

At £37,000 for the second time.

Are we all done it £37,000?

The final bid of £37,000 came from property developer Nasser.

He has done a number of his own developments in the past, but having

worked abroad for a few years, this is his first in the UK since 2004.

This one is a collaboration with a business partner.

Congratulations.

-Thank you very much.

-Tell me why you wanted to buy this place.

Uh... It's a challenge.

I didn't check on it all.

It does need a lot of work, probably re-building from new.

From what I've seen.

So, let me just check, did you go around the back?

I didn't because you couldn't get any access from inside the house.

-Yes.

-Right?

And the gates were locked, so I had no chance to check in the back.

So, that must have been a bit of a shock for you then.

It is and it isn't because in the past, I bought houses

at no sight and my friends were telling me I'm crazy.

I bought some for 9,000, I've sold them at 100,000.

-Oh, wow!

-So, I wasn't really crazy.

You never know. It's the market, that's the thing.

You never know what happens with the market.

Nasser has done total rebuilds before

and isn't phased by the amount of work here.

So, what are you going to have to do to sort it out?

I'll have to have new roof, new windows, new central heating,

-take the back walls down.

-Completely?

-Completely.

Put a foundation, rebuild them. A kitchen.

It's like rebuilding a new house, really.

Nasser also intends to restore the property into a single house,

as he believes that will maximise its sale value.

What is the budget for all of this, then?

When I first bought it,

I thought I'd probably spend between 13, 15, 17,000.

-But looking at it now, I will probably go up to 25,000.

-25.

And given what you paid for it,

is there still profit to be made for you?

From what I gather, probably just under 10,000.

Just under 10. Is that OK?

It depends how much I save, really, on the work.

-Yeah, it's OK.

-And for you then, what is next on the agenda?

-Are you going to do more?

-Yeah, but I'll be more careful next time.

-I'll be more careful, yeah.

-Well, listen, congratulations.

At least you're smiling.

-Thank you very much.

-Nice to meet you.

-Thanks.

# You got a keep smiling You got a keep trying

# Cos things can't... Things can't get much worse. #

Well, I think this sorry-looking terrace is now in safe hands,

and thank goodness Nasser is still smiling.

How will he get on? You can find out later in the show.

For the next property that went to auction,

I've come to Chatham, one of Kent's Medway towns.

I'm here to see an attractive double bay-fronted detached property

situated close to the busy town centre.

It's on a busy road, as well, but I know similar properties

on this road are on the market for £700,000.

And so the guide price for this auction lot really caught my eye.

It was set at just £200,000 to £210,000!

What's wrong with it?

OK, the hedge needs clipping, but from the outside,

things are off to a really good start.

It's an imposing double-fronted detached property,

which was used as a medical centre until recently.

Judging by the exterior, it appears in good health.

Well, that really is my ideal looking property from the outside,

but the inside just blows me away with how huge it is!

I mean, this really is a massive hallway!

It's fantastic!

Lots of rooms running off it.

Look beyond the woodchip wallpaper, the strip lighting

and the fire extinguisher signs, it's quite amazing.

# Take my breath away. #

This property has great period character.

It really is a vision.

On the ground floor, are five rooms.

This large room was used as an office and reception.

And across the grand hall,

is what I think would have been the waiting room.

More character features looking at you as soon as

you walk into this room. Look at this lovely fireplace!

There is a beautiful, old bay window down here.

Well, it will be once all of this is off.

But this is a commercial property and I think it is fairly evident

from looking around - strip lighting...

It was used as a medical day centre and has D1 usage,

but I've got some really good news because planning has already

been granted for the change of use to residential.

And so, it will have a C3 classing.

Now, that really is what you want to hear

and it certainly lightens the load when it comes to developing.

Whoever takes this project on can crack on with the work

straightaway.

So, who is going to buy this property? Any suggestions?

# I've got so many new ideas

# I've got so many new ideas. #

Whoever takes this on will have a lot of property on their hands,

because we're still not finished on the ground floor.

Further down the hall, there is what looks like a consulting room.

There's a further room, which leads out onto a conservatory

with beautiful, original floor tiles.

But from the outside, it looks in a poor state.

Finally, there's a kitchen.

Time now to investigate the first floor.

Up the grand staircase, past this amazingly decorative window,

is yet more accommodation up here.

# How do you like it?#

Two bay-fronted former consulting rooms

at the front and a couple of offices at the back overlook the garden.

And a fifth, slightly smaller room.

So, enough potential bedrooms for a large family.

And it's great to see so many fireplaces have survived.

Upstairs, this property boasts five bedrooms.

Knowing this area pretty well, I would have a concern here.

A big, substantial property like this is amazing,

and I have loved walking around here today.

It would be an exciting project to take on, but as a developer,

you always have to think about your target market.

Is there a demand for a big detached house like this in this area?

If this were mine, I would be inclined to half my risk,

divide this house into two dwellings.

This, of course, is subject to planning permission,

but it is definitely something to think about,

especially in the current market.

So, the house isn't at the prime end of the street,

where similar sizes of property sell for as much as 100,000 more.

But this place has plenty of potential

and its appeal doesn't stop inside.

You have got quite a substantial garden out here.

Now, if you did think about dividing that house into separate dwellings,

there would still be more than enough garden to go around.

You could put a fence up in the middle here

and you'd still be left with generous outside space.

But now, look at this.

You're thinking, "Oh, great, just a bit more land."

But now, it is much more than that. Much more!

Because there is vehicular access,

so you could think about building a property out there

with its own independent entrance.

Again, subject to all the necessary planning permissions

being obtained, but how exciting is that?

# How you like it?

How you like it? #

We invited a local estate agent to give us his opinion on this house,

which had a guide price of between 200 and 210,000.

The development opportunities here are immense, really.

I could see the possibility of one unit.

Very nice family home.

Two individual units, possibly a number of flats,

you know, subject to planning.

If the new owner was to develop this as a five bedroom house,

how much could it be worth once renovated?

I could sell this house fully completed in the region of 500,000

to maybe £750,000 depending on the level of finish.

So, as one house, it could perhaps fetch around £2,000

per calendar month on the rental market.

But the possibilities don't end there.

If you were to develop this and turn this into two three-bedroom

properties, done to a good standard,

you could ask for 200 to £250,000 per property.

Well, I think I have made it clear what I think.

This is a fabulous development opportunity.

You could have three houses for the price of one

if planning permission went your way. That really could happen,

although this would be an amazing family house to live in!

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

200 to 210,000, the guide. Start me at 200. 200 I have.

That's what I like to see, positiveness.

At 200,000, 210 is bid. And 220.

220 I'm bid. And 30. 230.

And 240. 240.

And 250? 250 is bid.

And 260?

255 in a fresh place.

Standing by the sign at 255,000. 260 do I see?

260. 262. 265?

265. And 268? And eight I have.

And 270? That was a definite no, wasn't it? 268 on bid.

Standing. At 270 in a fresh place.

272? 272.

And five. And 78? No. 275 on the left.

Being sold for the first time. 277.

277.

280?

278? 278?

278. And nine?

Another thousand from you?

At 278, then. Far left-hand side.

Out? 279?

Is that a bid? I didn't take it. 280 I have.

No? You sure? At 280 then for the first time.

280 for the second.

280 for the third and final time.

Are you all done at 280,000? Sold at 280,000.

That final successful bid of £280,000 was made by Philip.

He and his wife, Sam, have been on the programme before

when they purchased a house not too dissimilar to this one.

They bought it back in October, 2009,

and turned it into their family home.

The couple run a civil engineering business, as well as a building

firm, so they are perfectly placed to take on this project.

I met up with them back at the house to hear their plans.

Sam and Philip, hello again.

-Now, we have met before, haven't we?

-We have, yeah.

-You bought a fabulous house at auction, if I remember rightly.

-Yep.

You did it up to an amazing standard and you were living there.

What has happened?

Year on, we are still living there, all the family, the kids you met.

-Yep.

-So, why have you bought this one?

It's a beautiful character building, again.

I think we can put the love back into it.

-So, have you bought this as an investment, guys?

-Yeah.

So, tell me, what was it about this house, Sam, that you like so much?

The rooms and just the character of it.

So, Sam got a good prognosis from this former doctor's day centre.

It is going to require a lot of hard work to remove

all the commercial trappings from this former medical centre.

But Sam and Philip intend to convert this back into a grand,

five-bedroom house,

using the planning permission that has already been granted.

So, how far are you going to go with putting the character back in?

Because, you know, it could be a bit of a money pit, this house,

because it's so big. Lots of rambling rooms and corridors.

We aim to make it into a five-bed family house -

with two bedrooms upstairs, en suite.

These rooms, I think, will stay the same.

They'll just be refurbed, basically.

-And what about turning it into flats as opposed to one family house?

-No.

We know how to make this into a nice house.

And it will sell.

On top of the £280,000 they paid at auction,

Philip and Sam have budgeted 75 to £85,000 for the work.

So, their total could reach 365,000,

and they reckon five to seven months should be sufficient.

But what about the opportunity at the back?

Did they consider a potential development out there?

We did, but then you'd lose the space for the drive.

A house of this quality and size, you need parking, off street parking.

Guys, it's been fantastic meeting you again.

I'm really excited to see what you do, and put your magic touch on it.

-Good luck. Philip, lovely to see you again. Sam, thank you.

-Thank you.

Well, it's not like Sam and Philip are novices.

And we know from their other project, they really can do this,

with bells, whistles and knobs on.

But I am not so sure about their plans this time.

Is there a market for such a huge house in this area?

On this busy main road? Will they find their buyer?

You can find out later on in the programme.

Coming up, in Devon,

this house has a large living room and small kitchen.

So, what are you going to do?

Of course, knock this wall down.

We return to Kent to find out if Philip and Sam's renovation

-impressed the experts.

-It's fantastic.

It is a lovely property. It's been done to a high standard.

But first, in Manchester.

Is Nasser happy with his hard graft on this terrible terrace?

I'm just proud of what I've done, really.

Let's make our way back to Manchester,

and the suburb of Gorton, where I viewed what should have been

a lovely Victorian terrace.

But I was shocked to find the house had been converted into two

pokey one-bedroom flats.

And the interior was a real horror show.

# With a little bit of shock, shock, horror! #

The property was riddled with rot and damp.

That is extraordinarily damp.

A hole in the roof had allowed rain to flow throughout the building.

But there was worse to come - the rear wall that had

partially collapsed.

Which is clearly an absolute disaster!

To the rescue, came property developer Nasser.

He purchased the property

at auction, along with a business partner,

for £37,000,

12 grand over the guide price.

-Tell me why you wanted to buy this place.

-It's a challenge.

It does need a lot of work, probably rebuilding from new.

From what I've seen.

Nasser has seemed ready and able to rise to the challenge and save

this property from ruin, but could he do that and still make a profit?

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

# Somebody save me!

# Let your warm hands break right through and...

# Save me! #

The two flats are now a single warm and welcoming three-bedroom house.

There are still finishing touches to do,

but it looks like he has done a tremendous job.

Even though it's not finished 100%, I would say 99%.

But I am proud, you know? I'm glad where I am with it.

The dank odour of damp has been banished

and the house is now bright and fresh.

You sort of really didn't have light or room or space

when you walked in, you know? Like walking into a tomb.

And it's nice. It's nice to have the space, you know.

It's been a monumental undertaking, involving dry lining

and plastering all the walls and ceilings,

fitting new floor joists and laying flooring,

as well as installing new electrics and plumbing.

Nasser's budget also took a big hit

on new double glazing and repairing the roof.

And we have not even dealt with the rear of the house yet.

Nasser has completely rebuilt the rear wall,

first of all fixing the broken

sewage pipe below the surface that caused the wall to collapse,

and then repairing the damaged foundations.

To be quite honest with you, if I bought a piece of land

and built it, it would have been quicker and cheaper probably for me.

There was time consuming, not to mention expensive, work.

So, how much has Nasser spent on the renovation so far?

I've not worked it out, but I would say

in the region between 30 to 35,000. So far.

Because I know only how much I had when I started

and I know how much I have left.

There are still odds and ends to do,

but his estimated final budget should be around £35,000.

Add that to the purchase price of 37,000

and the total investment here is £72,000.

Even though the majority was spent on structural repairs,

Nasser hasn't skipped on the finish.

He has fitted lovely oak doors throughout

and also oak flooring in the reception room.

Installing a new wide staircase has allowed Nasser to fit

a WC into the space underneath.

But I do hope he is not investing too much money here,

thereby exceeding the ceiling price for properties in this area.

Money-wise, I know I won't lose.

You know, I got a debt cheap, really, in a way.

If I don't make a profit, I've not lost.

I'm just proud of what I have done, really.

We asked two local estate agents

for their opinions.

The owner has done a great deal of work to the house,

far more so than I probably would have anticipated, really.

The property is almost there now

and there is very little to do internally,

other than maybe some minor decoration.

My overall impressions on this property are very good.

I think the owner has done it to a very good standard.

Particularly impressed with what he did with the space

using the downstairs cupboard as a toilet.

I think he'll do well with it.

How much could this place achieve on the rental market?

I think this property would rent well, especially in this market.

I think you will find a tenant no problem at all,

looking at about £500 to £525 per calendar month.

I would genuinely anticipate a rental figure of between £525

and £550 per calendar month.

Those figures, if achieved, would give Nasser

and his business partner a healthy rental yield

of between eight and nine percent.

But they are more interested in selling.

So, bearing in mind their total outlay of £72,000,

what could that make?

I think you would probably be looking at somewhere

in the region of 70 to £75,000 for it.

I would genuinely anticipate an asking price of between 75,000

and £80,000.

Those valuations could see Nasser

and his business partner making a loss of £2,000

or a profit, before taxes and expenses, of as much as 8,000.

What does Nasser think about that?

I reckon, really, I should get between 95 to 105.

And that's what my target will be.

I sincerely hope Nasser receives his asking price as due reward

for all his hard work.

-So, would he return to another auction?

-Yes, I would.

It is a challenge and I enjoy it.

Today, I am in Paignton, in Devon, a popular coastal holiday

destination on what is known as the English Riviera.

So, you're bored of the beach,

you're bored of paddling in the surf,

you're bored of the sand in your sandwiches.

Well, why not come a little bit inland

and you've got Occombe Woods to wonder round.

And, coincidentally enough, the property I'm here to see

is literally on the road that leads down to the woods.

Not particularly characterful -

a 1960s house, three bedrooms. Let's take a look.

The road itself is nice enough - wide, tree-lined and nicely kept.

As always, let's hope we find the house in the same condition.

Actually, forget it, I can't go in until...

I made a comment about that.

What an extraordinary garden!

And with a little huffing...

and plenty of puffing,

I finally made my way to the top,

where you can enjoy the view, but not much else.

As for kicking about a football or firing up a barbie, forget it.

The severe slope means this garden is not really a useful space at all.

So, after all that exertion, let's take a tour inside.

Uf! Well! Having taken an intake of oxygen

and some anti-altitude sickness tablets,

we finally enter the house.

And quite pleasant it is, too.

Somebody took the carpets out to see the floorboards.

Would you strip those back? Maybe, maybe not.

Good size entrance here,

a little corridor down to the kitchen,

stairs to the bedrooms

and then through to the main room in the house.

It's a nice surprise.

It's a double aspect living room-dining room.

A little balcony out there. Actually, it's by another door.

I'm noticing straightaway, there are far too many doors.

But it's a good size space with an open fire, which is good,

and then very typical of the period,

a serving hatch through to the kitchen.

So, what are you going to do?

Of course, knock this wall down, tear that out,

create a really nice kitchen-family dining area.

Maybe open that out onto a set of patio doors,

so you can stare up at the mountain in front of you.

And, as a starting point, I have not seen anything here that worries me.

You might want to level out a portion

of the steeply tiered garden to create a patio.

But I'd recommend calling in some expert help to avoid a landslide.

The last thing you want when you move this mountain

is the garden landing inside your house.

# I can move, move, move Any mountain. #

Back inside and upstairs you've got a standard three-bedroom layout.

Two good-sized doubles and a smaller bedroom at the front,

with a bathroom and a separate loo.

You could remove the wall to create one family-sized bathroom.

There is no shortage of space in this property

and I reckon there's more space you could utilize elsewhere.

With planning permission,

this integrated garage could be converted into extra accommodation,

as several other houses on the street have done.

To discover more about the potential for this property,

we asked a local estate agent to take a look around.

First impression of this property is that it has great potential.

The gardens are steep.

However, they do offer a good degree of privacy.

A good landscape gardener could make a really good job of it.

Is there potential to let the property to tenants?

Is there much demand locally?

Fully renovated, this would be a very rentable property.

I would be looking between £700 and £750 per calendar month.

What could it achieve once renovated?

As a completely renovated property,

we would be looking at between 150 and 160,000.

Well, the house itself, pleasant enough.

Spend a bit of time and effort and it could be a nice place to live.

However, the thing which I will never forget

about this property is this extraordinary garden -

absolutely ideal for a mountain goat or an Everest explorer.

Let's see who bought it. Scale the heights of this one!

When it went under the hammer.

Someone might start me off at £100,000 to start?

I've got £100,000 at the back of the room.

Looking for five more. Five more now on the aisle. 110. 115.

Yep, 115. 120.

The one, 116. 117 then.

117, seated. 118?

118 now. You're not together, are you?

No, that's fine.

119? 119. 120? 120 now.

121 against either of you. 120 here. 121.

Two? 122. Three? 123.

And four? 124 now.

125.

125. One more for 126? No?

£125,000. There is no further advance on that?

Really sure?

Sure, sure?

That final bid of £125,000

was made by the husband and wife Rick and Jackie.

They live locally and run a diving charter boat.

# Well, they call me deep-sea diver

# Cos I can dive so far down. #

They have renovated their own homes in the past,

but recently decided to take the plunge

and dive into the world of property development.

This is their first investment.

-Jackie, Rick, lovely to meet you.

-Hello.

-Congratulations.

-Thank you.

Tell me why you wanted to buy the house.

We were looking at two at the auction,

and this one was up first.

And we set a price guide and we were just lucky enough to get it.

Had the other one come up first, you would've bought that one.

-Maybe, yes.

-Really?

-What was it you liked?

-I suppose...

Probably the ones we've done in the past have been older properties

and we were hoping this would be an easier one to do.

Although that's likely to be the case here,

it doesn't always follow that a house built around 50 years ago,

like this one, will have fewer problems than an older one.

But for their first investment, I think they've chosen pretty well.

They plan to do it up and let it out.

What tempted you into the market right now?

Well, we had some money put aside

and it wasn't earning much interest,

so we decided to invest in properties.

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

-I run a dive charter boat.

-Oh, right. Great.

-And Jac helps me.

-And the diving round here is good?

Yeah, lots of wrecks, lots of things to see,

so, yeah, brilliant.

It turns out that Rick and I have a lot in common -

I spend much of my time on the show looking at wrecks, as well.

But of properties, in my case.

Although, this house is actually not that bad.

They are both keen DIYers and will do much of the work themselves,

calling in specialists where they need to.

So, what are they going to do here?

We are going to do the electrics, put some gas central heating in,

kitchen, bathroom, decorating.

Any plans to take out the wall behind you to the kitchen?

I think possibly, because of the size of the kitchen, that we will

take the wall out, but we are still going to weigh it up, really.

So, let's go on to the garden, then.

-Well, the mountain.

-Yes.

Um, what do you think about that?

Well, we want to do some improvements,

but the house is a priority first.

And depending on how much money we've got left in the pot, really.

We are struggling with it.

This area here we'll clear, make a patio area or something like that.

But we might, if we can, we may lower it

and put some railings up to make it safer.

But I really don't know about the rest.

We are hoping for some sort of, I don't know,

some sort of idea to appear while we are doing the house.

But I really don't know.

Hopefully, inspiration will strike, because at the moment,

I have to admit, I'm stumped.

# I need your sweet inspiration

# I need you here on my mind every hour of the day. #

So, what is the budget for the works?

We are looking at between 10 and 15.

Right. And what kind of timescale?

-About three months, we hope.

-OK. Well, good luck with this one.

-Thank you.

-And I hope it turns out all right.

-Thank you.

Thanks very much.

Well, a new challenge for boat owners Rick and Jackie to dive into.

I think that house won't prove too much of a problem,

however I think the garden may be a challenge too far.

You can find out how they get on later in the show.

Our would-be property tycoons were certainly eager beavers

when we left them.

-Yes, so did they grab the bull by the horns?

-Let's find out.

Let's return to Chatham, in Kent,

where I viewed this lovely looking property.

Inside however, it was drab and dreary.

It had been used as a medical centre.

But the period features left me breathless.

# Take my breath away. #

Well, I thought a developer could reap

greater financial reward by converting it into two flats.

I was thrilled when husband and wife developing duo Philip and Sam

told me they planned to restore it into one fabulous five-bedroom

family home.

They purchased this auction lot as an investment for 280,000.

It is a beautiful character building.

I think we can put the love back into it.

I'm really excited to see what you do, and put your magic touch on it.

Philip and Sam plan to return this once great property

to its former grandeur before selling it on.

I can't wait to see what they've achieved.

So, just over ten months later, we're back.

Well, the exterior looks lovely.

Let's begin by taking a turn around the ground floor.

# I'm breathless! #

The grand entrance makes a fabulous first impression.

# I'm breathless! #

The front reception rooms have been transformed

from tired and tacky office space into simply stunning.

When you first came, this place was offices, very bland.

And we basically restored it back to a family house.

It's lovely to see a house change

from an office, which destroyed all the character of the house

and come back to its original state.

It's lovely to see it finished.

The stained-glass windows and ornamental tiles are beautiful.

The couple have not only restored, they've modernised.

By combining this room with the kitchen

and hallway in between, they have created a new heart for this home.

-# Beautiful

-Beautiful

-# Beautiful

-Beautiful

# You make me feel so beautiful. #

This was the original kitchen here.

It extended from here to about here.

There was a partition wall here.

There was a little hallway here with another partition.

We took out these partitions and made this into one big, open room.

We had to level the floors and get all the floors to level.

We then fitted this modern kitchen with integrated appliances.

And an island.

And we're very pleased with it.

And so they should be.

Philip has also been rather clever with the conservatory.

He has turned it sideways against the house,

maximising the floor space.

Genius!

The original conservatory, actually, was on the same line here

and extended only to here.

So, effectively, we had the panels here and the panels here.

All we've done is remove the panels here and made them

in a straight line, which increased the size of the conservatory.

We had to level the floors and we re-rendered all the walls.

Perfect for enjoying splendid summer days like this.

Unfortunately, it meant the floor tiles had to be removed,

but the couple have added features in keeping with

the age of the property elsewhere.

At a very early stage, we realised

that we had to get the period features put back in it -

putting the panel doors back, putting all of cornices back.

We had to get special mouldings made

to suit the existing, they're not made any more.

So, yeah, we were very conscience trying to get the original features

back to the house.

# All I know is

# You may me feel so...

# Beautiful

# Beautiful

# Beautiful

# You made me feel so...

# Beautiful. #

Upstairs, the rooms have been renovated and remodelled to create

two bedrooms with en suite -

one with bathroom, the other with a shower room -

and three further bedrooms.

Philip and Sam are experienced property developers.

But while some couples can find it difficult working

and living together, their relationship positively thrives.

So, what's the secret of their success?

We get on. I think.

I think we just get on very well.

And we're both very focused

and we're both focused in the same direction,

so it's very easy to have vision and move on with properties. Yeah.

Sam is my best friend. And we complement each other very well.

I do my building and Sam is very good at the interior design.

The couple had hoped to spend up to £85,000 on the renovation,

but have spent ten grand more.

That's not too bad at all,

considering the fabulous finish here.

This means their total investment, including purchase price,

is 375,000.

So, what do the couple plan to do with this property

now that their renovation is complete?

The plan is to, obviously, put it on the market.

Try to make a profit.

And look for a similar property again,

because we really do like Victorian or Georgian buildings.

And it's good fun. It's good fun. It's a nice way to make a living.

Have Philip and Sam invested wisely

and is the local property market suitable

for a beautiful, big house like this?

It's not at the prime resale end of the street,

where ones of a similar size can sell for 100,000 more.

But has the couple's high-end finish earned them a premium price tag?

We invited two local estate agents to give us

their opinions.

When you first enter the property,

you are greeted by the beautiful stained-glass

and the period features immediately hit you.

The size of the property just makes it ideal for a large family

or even a two-generation family.

It's fantastic.

It's a lovely, lovely property. It's been done to a high standard.

It'll make this property so desirable,

but not necessarily much more valuable.

But it has been done to a very, very high standard.

Well, the experts are impressed with Philip and Sam's renovation,

but a note of caution has been sounded.

Have the couple spent too much,

bearing in mind their total investment of 375,000?

Let's find out.

I would market this for £475,000

and I would sell this property for in the excess of £450,000.

I would suggest the owners place the property on the market

for £575,000.

Well, that is a very wide valuation range, so it seems the location

has made a difference to one of the estate agents' estimates.

However, if the amounts in that range were achieved,

Philip and Sam could make a pre-tax profit

of between 75,000 and 200,000, minus the usual selling expenses.

The couple already have the house on the market,

so let's hear how much for.

We have it on the market in the 500 to 600 band.

So, we expect it to be somewhere in the middle.

Philip and Sam develop properties not only for financial reward,

but because they love to bring period places, like this,

back to life.

So, what's next for them?

We plan to carry on. We love these traditional houses.

If we could find another one, yeah,

we'd jump in and do it all over again.

And I for one hope we'll be there to see the results when they do.

We are going back to Preston, near Paignton,

in Devon, where earlier in the programme,

husband and wife, Rick and Jackie, paid £125,000

for this house built at the bottom of a very steep hill.

Although outside was going to be an uphill struggle,

the inside wasn't too bad.

Rick and Jackie planned to refurbish and then look for tenants.

Although they've done up their own homes in the past,

this was their first investment project.

So, let's go on to the garden, then.

-Well, stroke mountain.

-Yes.

-What do you think about that, then?

-Well,

we want to do some improvements, but the house is a priority first.

This area here we will clear, make a patio area or something like that.

But I really don't know about the rest.

We're hoping for some sort of idea

to appear while we are doing the house. But I really don't know.

Five and a half months have passed.

And we meet Jackie and Rick again back at the house by the hill

to see what they've achieved.

Well, no surprise, the mountain's not moved.

But there have been some changes lower down.

A patio door has been installed,

which lets much more light into the living room.

Losing the old fire surround and adding an electric fire

is a big improvement.

And that serving hatch is no more.

You can now carry your curry out from the kitchen.

It has been refitted with modern units and new appliances.

The former door has been bricked up and the larder removed.

That has enabled a longer work surface to the added,

as Rick explains.

We took out the larder, removed the back door,

opened up the serving hatch into a doorway into the dining room.

As it was, we wouldn't have got all the cabinets in.

And now, we've made a much larger kitchen.

It's my first time fitting a kitchen and, yeah, I think it's good.

I'm quite please with it.

The house has had a complete rewire and it has been re-plumbed,

plus new central heating has gone in.

They also discovered woodworm in the hall that needed treating.

Upstairs, the two front bedrooms are finished.

There is new carpet throughout

and they just need the doors to be re-hung.

Along the landing, the separate loo is gone.

Rick and Jackie have removed the dividing wall

and created a lovely family bathroom.

It certainly makes the most of the extra space they've gained.

We took down a wall between the toilet and bathroom

and then moved that wall out

so we could fit a bath... a full-sized bath in.

It was my first attempt at tiling an entire bathroom, and so,

yeah, quite pleased.

Next to the bathroom, the second double bedroom overlooks the garden.

Rick is still waiting for inspiration for the top of the hill,

but down at the bottom, he has got a plan.

We are thinking of getting rid of some of the steps.

I'm worried about someone falling down. You know, it's quite steep.

So, we're hoping to sort of, like, tier it

in a way, and move the steps, so they're not all in one direct line.

Apart from Rick, Jackie and their children, Will and Emily,

lending a hand, who else has been involved here?

We've had a plasterer in and a plumber and an electrician,

but most of the other work, all the changing,

taking walls down and changing the layout was done by ourselves.

The steps leading to the front door have moved away from the house,

so Rick has got to demolish them and rebuild.

And although they've treated the woodworm,

they need new joists in the wall.

So how long will all that take?

Being optimistic, I'm hoping we'll have it done in another month.

Maybe not all the garden, but the majority of it.

Rick reckons the work should take around a month to complete

and that he'll be just a fraction over

that upper budget limit of 15,000.

Added to that purchase price of 125,000,

that makes their total outlay here just over 140,000.

Time to see what two estate agents make of the property.

I like the idea of knocking the bathroom and toilet into one

to make a bigger bathroom.

And also the back door they moved to make a bigger kitchen, as well.

It's a good idea.

It's very appealing. The kitchen is very modern.

Again, the bathroom is... It flows a lot better

than it used to do.

The addition of the patio doors to go into the garden have made

a big impact on the property.

How much rental income could the house achieve?

I'd put this property up for rent on the open market at between

£700 and £725 per calendar month.

The rental income they're going to get

is about £750 per calendar month.

Those rental incomes would generate a yield of around 6% to 6.5%.

But Jackie is having second thoughts about letting the house.

We think we may have got a bit too involved with this place to rent it.

So we may be wanting to sell it.

Well, if resale is the route, will the estate agents value it

above the £140,000 that Rick and Jackie have invested?

We are probably looking at fetching somewhere in the region

of 155,000 and putting it up for sale at 160,000.

I would look to market it somewhere in the region of 165,000 to 169,950.

So, after all that hard work, that valuation range

could generate a profit of between £13,000 and nearly £30,000,

before tax and expenses. They must be delighted about that.

-Yeah, pleased with that.

-Yeah.

If we sold it, it'd be a good return, so, yeah.

Can't be unhappy with that.

I wouldn't want something with this amount of work...

I mean, we have had help from our children, Will and Emily,

and my mum has been across and has done quite a lot for us.

Next time, I think maybe something with not so much work.

From perfect homes to shrewd investments,

we will have lots more properties for you next time

on Homes Under The Hammer.

-Look forward to seeing you then.

-Goodbye for now.

-Goodbye.

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