Episode 53 Homes Under the Hammer

Hello. Now, in the current climate,

it might be a little tricky to find your own piece of house heaven.

Whether they're large or small, you know,

auctions can be a great place to start.

So, join us now as we follow three plucky buyers,

buying their homes under the hammer.

Well, if you've decided to take a gamble

and place a bet on property developing,

then you may want to buy at auction.

Yes, the atmosphere is electric, the bidding is fast and furious.

-It's not for the faint-hearted.

-No.

So here are the three properties that inspired the buyers

on today's programme.

'Judging by the new door,

'you might think this Newcastle semi has been modernised inside.'

However, that would be wrong because that's all that's been done!

'If properties could talk, I wonder

'what this house in Bristol would say about its current condition.'

"Show me some love! I need attention! Please save me!"

'And this one-bedroom flat in Stoke-on-Trent

'may be a tad on the teeny size, but...'

it makes the most of what it's got. And I like it.

'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.'

'Welcome to Newcastle, a city with

'a proud industrial and architectural heritage,

'not only on this grand a scale, but also on a more modest level, too.'

Well, it's looking very positive so far.

Nice area, lovely residential street,

and a pretty attractive property from the outside.

1930s semi, three bedrooms at a guide price of 120,000 quid.

Let's see how it's fared.

'I'd say rather well, judging from the front.

'This type of traditional semi-detached is often regarded

'as rather too compact for present-day family living,

'leading many residents to extend and expand.'

Well, modern plastic door could give the impression

that there's been a reasonable amount of modernisation

happen to the property over all those years.

However, that would be wrong cos that's all that's been done!

And actually, it could be

this place is all the better for it because into the front entrance here,

and you're struck by this wood panelling.

Now, your first thought might be, "Just get rid of it." I think that'll be a real shame.

This is very back in fashion,

and either strip this back to reveal whatever wood is underneath,

or paint it with a modern eggshell-type paint.

And that would be, I think, a really amazing entrance to the property.

You've got your front sitting room area with the big bay window.

We like that. A rear sitting room area there.

Door leading out onto the rear garden there.

It gets a bit strange as you come over to this side of the property there

cos you've got this sort of tiny little room here.

And on through to...

HE LAUGHS

..the kitchen!

Now, believe it or not, again,

these kind of units are very, very trendy at the moment.

So, think about re-using those.

As a room, though, I don't like it.

Horrible, nasty polystyrene ceiling tiles.

It's got masses amounts of damp going on.

The floor feels really strange, and I doubt there's a damp-proof course here.

So there needs to be some thought about how you're going to get

a kitchen into the main part of the property.

But I think you've got space to do it.

And it's got a nice feeling to it, this place.

'I'd be inclined to preserve the period details of this property.

'The stained-glass bay window in the front reception room is particularly lovely.

'So the right balance between renovation and modernisation needs to be struck.'

'In the rear reception room, I do like the door leading to the back garden.

'The floorboards could be sanded and varnished.

'As for the wallpaper, the distinct design might not appeal to all tastes,

'so I'd recommend something a bit more neutral.

'But that's easily dealt with.'

# The big rip-off

# The big rip-off

# Get ready, It's the great big rip-off... #

Well, coming out into the rear of the garden

and this whole feeling of just a house that is

desperately in need of some tender loving care continues.

It just needs some time and effort spent on it.

But it would definitely be worth it.

But what you have got is a half decent rear garden here,

and something that definitely needs sorting out.

Now, I'm not going to be a squirrel's best friend here

because this tree has to go.

# Come on out of that tree, Squirrel... #

'The trees block the natural light

'that should be brightening the interior of the house.

'So it's time to get out the chainsaw.'

SOUND OF CHAINSAW

'Sorry, my furry friends!'

Well, upstairs, and I don't know quite why I'm so taken with this place.

But I am.

I guess it's partly because some of the older houses I get to visit,

you expect some of the original features to still be there,

and they often are.

But a house of this kind of age, 1930s,

often they've had renovations done in their relatively short lifetime.

And all the stuff from that era has gone. But not in this case.

Things like the bathrooms with those tiles,

they're probably going to be realistically ripped out.

But they are of an era.

Up here, you've got, you know, a decent amount of space.

Separate loo and a bathroom, you know, the age-old debate.

Do you actually keep those as two convert them into one?

Really depends on what you're planning to use the house for.

You've then got two good-sized double bedrooms

and a slightly smaller bedroom.

So lots of space.

Few worrying things.

Don't like that crack!

And, in fact, this sort of whole back part of the house

does seem to have a bit of a slope on it.

So maybe it needs to be checked out for possible substances.

But I am, for some reason,

looking at this place with very rose-tinted spectacles.

In fact, those kind of spectacles that kind of, like, go up slightly in the corners.

You know, pink and blue kind of thing. You know what I mean?

# Cos everything is beautiful

# When you're looking through

# Rose-coloured glasses

# Take them off... #

Well, it's time to remove those rose-tinted glasses,

as far as this property is concerned.

The cracks and sloping floors

suggest there could be a serious issue with subsidence,

which can be caused by trees planted too close to a house.

Roots can grow into foundations and alter the water table.

Time to hear a cry of, "Timber!"

We asked a local estate agent for his opinion on this place,

which had a guide price of £120,000.

First, in relation to the property, traditional 1930s, pre-war,

offering good family accommodation.

In need of upgrading, but with some very good potential.

How much could this property achieve on the sales market?

Once renovated to a decent standard, we would expect to achieve a figure

of approximately £220,000 to £230,000 in the current climate.

Well, pick up this property for around the guide price of 120,000,

and you could've bagged a bargain. What about rental?

Once renovated, I'm confident this property would achieve

a figure of approximately £800 per calendar month.

Well, a bit of work to be done to sort this place out, but I reckon this house is a real find.

Lovely location, nice proportions, just a good feel about this one.

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

Anyone want to give me 125 to start?

125. We're up and going at 125.

127-and-a-half. 127-and-a-half.

130.

132,500. It's 130,000.

It's 130,000, 132-and-a-half. 135.

135 bid.

137,500.

140. The gentleman sitting down at 137,500... 140, anywhere else?

140 on the second row. 141. 142, 143...

143 bid. 144, 145 on the telephone.

146. 147?

150,000 bid.

155. 155?

152. 152.

Gentleman in the room at 154 bid. 156. 158?

Gentleman in the room at £156,000... 158?

We're in the room at £156,000. I'll take one. You have to be quick.

I'm selling it once, 156, I'm selling for the second time.

At £156,000...

The man who made that successful bid of 156,000 was Andy.

He lectures at the local university and has lived in the area for the past 30 years.

-Andy, good to meet you.

-Hi, and you.

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

-Well, I want to downsize.

My daughter was living in London,

and I want less space, but the advantages of being here.

-Great. This is for you, then, is it?

-Yeah.

-Oh, brilliant.

-So why this particular house?

-Well, I wanted some outside space

and I wanted a garage to use as a workshop.

And it's got a good-sized garden at the back. I like gardening, so I wanted that.

And enough room without being too big.

If Andy plans on being green-fingered in the garden,

does that mean the trees are for the chop?

Now, at the back, there's that tree.

There's two great, big fir trees.

They're coming out straight away. The neighbours want them down.

The first thing they said was, "What are you doing about the trees?"

I said, "Pull them out." They said, "Hooray!"

-So they all want them to go.

-So what to do when you're not doing this?

I work part-time in the local university. I teach a bit.

-I'm really semi-retired now.

-Teach what?

-I teach... Filmmaking for drama students.

-Oh, great!

And production management for media students. I worked for the telly some years ago.

-Oh, great, what did you do?

-There was a kids' serial called Byker Grove which ran for years.

-Byker Grove!

-Yeah.

-Legend.

Yeah, it was my lifeline and my living for quite some time.

-What did you do on Byker Grove?

-I was production manager.

-Wow! So that role was doing what?

That means you kind of run the logistics of the ship and make sure

that people do what they are supposed to do and don't misbehave.

Sounds like great experience for project-managing a renovation.

And if builders happen to give him the run-around, perhaps he'll be ready to rumble.

# Let's get ready to rumble

# Let's get ready to rumble

# Get ready, get steady And rumble

# Everybody rumble! Let's get ready to rumble... #

Andy has a six-month timescale and a £60,000 budget for the renovation.

So, tell me what you're going to do to sort it out.

Well, there's obviously some structural issues here.

All the floors tilt backwards a bit,

probably about maybe a couple of inches lower at the back.

And there's subsidence at the corner of the house,

which has caused cracks that go all the way up.

So, that's reasonably terrifying.

Apart from that, it just means all the plumbing, all the wiring,

all the decorating and a few bits of structural addition.

But hopefully, he says, leading the question enormously,

-you're going to leave some of the 1930s feel to it?

-Yeah.

We'll try and keep some of the glass, I might keep the panelling.

-Oh, please, please, please, please! Oh, God!

-It'll clean up.

-I had a scratch at it, it's not bad.

-I'm so happy you said that.

-Yeah.

-Congratulations.

-Thank you.

-Well done, I'm delighted the house has found you and you found it.

-Yeah.

-I look forward to seeing how you get on.

-Thanks very much.

# Watch us wreck the mic Psych! #

Well, hopefully not too many dramas ahead for Andy when it comes to restoring this property.

It's a good house and he's got some good ideas.

You can see how he gets on later in the show.

With its grand, imposing buildings, Bristol is a city steeped in history and tradition.

But with the University of Bristol attracting students

from all over the globe, it's far from fuddy-duddy.

It retains a youthful outlook

and continues to feature invigorating architecture.

Today, I'm in the nearby suburban town of Longwell Green.

Just a few minutes walk from all the shops,

and I'm here to see today's auction lot. It's a semi-detached house in this quiet cul-de-sac,

and it had a guide price of 100 to £110,000.

A similar-sized property sold for £200,000 last year,

and so, that guide price sounds worryingly low.

Upon closer inspection,

it's plain to see this property is in dire need of some TLC.

If houses could talk, what would this one say?

"Show me some love, I need attention. Please save me!"

Yes, this one is certainly crying out for help,

and I think it's time to see if I can assist.

# Tender love and care

# That's what I'll be givin'

# Tender love and care... #

Mm, the inside doesn't get any better, I'm afraid.

It is in a bit of a mess. The flooring has been taken up,

the plug sockets are even gone.

These things can all be replaced, so I'm not overly concerned about that.

Look at this - the room where the kitchen should be.

Well, somebody has obviously ripped that out too,

and that is much more of a concern because it could cause a problem when it comes to securing finance.

Now, most mortgage lenders require a property to be habitable

before they will secure a mortgage on them.

A property without a kitchen isn't considered habitable, obviously.

If you didn't know this before going to an auction,

it could come as a nasty surprise later on down the line

when your lender refuses to release the funds.

A real case of buyer beware.

# Daddy!

# Daddy!

# You better beware! #

I do like the doors leading to the garden, although it's overgrown.

Let's take a look upstairs.

The bathroom continues the shabby-but-not-so-chic style,

but the suite is contemporary and in good condition.

It could be retained, saving some pennies.

The two bedrooms are both a fair size, but I wonder -

are two bedrooms too few?

This is very much a family area, so, if I took this on,

I'd be looking to add extra bedrooms somewhere.

It's a sure-fire way of adding more value and making this place much, much more saleable.

So, how would I go about doing that?

How about creating an extension out here?

Now, everything, as we know, is subject to planning.

And if you are able to demolish this carport and build out,

I think you could end up with a nice two-storey extension out here.

Then, you could add as much as £45,000 to the end value.

Sadly, nobody in the immediate area has extended to this level, but it's not to say it's impossible.

I would make it my business to contact the local council

and find out your chances of extending BEFORE going to auction.

We invited the auctioneer who sold the property,

which had a guide price between 100 and 110,000, to give us his opinion.

There's multiple options for the new owner.

I would say that keeping it as a slightly generous

two-bedroomed house is the worst of them.

You might be able to create three bedrooms internally,

but it would be very small.

The obvious easy answer is to push out that way

and you'd get yourself two more bedrooms and a reception room,

and perhaps an integral garage still altogether. That's the way to go.

Once renovated, how much could this property achieve on the resale market

in its hidden layout or with an extension?

If the house was refurbed as an all-singing and all-dancing two-bedroomed version,

I'd expect to see it on the open market at £167,500.

And a four-bedroom version of the house,

as nice as it could possibly be, would probably tiptoe over £200,000,

and I'd be looking at £215,000 being the probable asking price.

And a rental valuation?

I'd expect it to be on the market at about £750 per calendar month.

For a four-bedroomed version,

I'd be looking towards £900 per calendar month, possibly not quite.

You know, I think this is a great one to go for. There's the opportunity to add value, the chance to extend

and add even more to the end sale price.

But in its current state, I think this one is for the cash-rich only.

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

I'm not going less than 100.

Wey, we're off! 100, I got. 102, 105, 105...

Committee decision. 8... 80... Not yet for single, sir, if you don't mind.

It's going to be a moment or two.

108, looking for 10. 110. 110...

112, front row. 114 at the back. 114, I won't forget you, sir. 114.

116, 118,

120, 122, 124, 126,

and there's a third face, 128. 130.

And I'm coming down here to you if you'd like it, sir. 130. Shake of the head.

130, 132... 132 is front row, as it were.

144 on my left, or not?

133, perhaps? 133? Cos 132 is here. 132, you're in.

132, looking at the phones. 132. So, my last serious look back...

132-and-a-half. 132, and a fresh face, relatively speaking. 132-and-a-half.

133, I've got. You're in, first time. 133, second time.

At 133, everyone else is out, sitting has got it, 133, and done.

The hammer fell on a bid of £133,000 from JJ,

who attended the auction with his wife Sukhinder.

JJ currently manages a cash and carry but is due to retire soon.

Having dabbled in property in the past,

he's decided the time is right to resume developing.

# Temporary

# This cash and carry

# I'm stepping up to indicate

# The time has come to deviate. #

JJ, congratulations. Tell me how you got to hear about this property.

I had a look on the internet, actually. I always look at all the auctions and all that,

so seen it at auction, came down...

Only two days before the auction, I looked at it.

And we decided to go for it and that was it.

So we thought about having a bash at it.

How far would you like to take the renovations? Because it is in a bit of a state.

-It's not looking great at the moment.

-Put a nice kitchen in there,

do the garden up, put fencing up, and do the decorating.

Change where the window is, put a door there. Where the door is, put a window.

You think that should be a window and not a door, and that should be a door and not a window?

-Yes.

-Why do you think that?

Because if you open this door, the door is there,

as soon as you open the door, all the wind goes straight through,

up the stairs, you lose heating in the house.

Are you going to change that around? Will you put a window there?

I think that's the wrong thing to do.

In the summertime, there's nothing nicer than opening the doors out into the garden.

You don't want to worry about getting things out the car!

-We don't get a summer in this country.

-Of course we do!

Well, maybe not in Bristol, but where I come from, the sun shines.

We're talking Bristol, not where you come from!

# Trees

# Swayin' in the summer breeze. #

Well, on the door becoming a window and the window a door,

JJ and I will have to agree to disagree.

But are we of one mind when it comes to the two-storey extension?

I think this house is crying out to be a family house.

With two bedrooms, it's just not going to work.

-No.

-I think you need to add another two bedrooms to this property.

-I've already got the plans done.

-Really?

-Yeah.

Two-storey, with a garage and a utility room.

Now, that is the one that gets me excited,

because I think there's a huge amount of scope here to add value.

JJ has given himself a superspeedy schedule of three months

to get planning permission, build the extension,

and renovate the property.

He has a £40,000 budget, which, added to his purchase price,

would give him a total outlay of £173,000 if he came in on budget.

So how much does he believe this place would then be worth?

So you're hoping to add a certain amount of value to this property.

What would you like to market this property for,

once you've done it up?

Once we've done the extension, between £245,000, £275,000.

-245 to 275?

-Yes.

Now, you know, that's quite a difference, isn't it?

Yes, but it depends on the market. The market fluctuates all the time.

Sometimes you have a good market.

House prices are not very stable at the moment.

It'll be interesting coming back and seeing what you do.

JJ, it's been a pleasure meeting you today.

-Good luck with this project.

-OK.

-Lovely to meet you. Thank you.

-Thank you.

JJ is making the right decision by extending and adding bedrooms,

but I think he's making the wrong decision by taking out the doors

leading into the garden, and fitting a single door to the side.

Big question is, will he obtain the planning permission

for the extension, and will he pull in the big bucks for it?

Join me later in the programme, and you can find out.

Coming up: In Stoke-on-Trent, this flat may be fully functional,

but it's rather lacking in style.

A bit of time and effort spent in there could spruce it up.

Back in Bristol, has JJ transformed this beat-up

and broken-down house into a money-maker?

Very rentable, very sellable.

It's just about right.

First, in Newcastle, has Andy brought his renovation in on budget?

I suppose it wasn't so much a budget as a piece of supreme optimism!

Let's go back to Newcastle, and the suburb of Gosforth,

where I saw this 1930s three-bedroom semi-detached,

which had a guide price of £120,000.

The house still had original features,

such as wood panelling in the hall,

and a lovely stained glass bay window in the reception room.

I was happy to hear that new owner Andy

was as charmed by its character as I was.

Hopefully, you're going to leave some of the 1930s feel to it?

Yeah, I'll try and keep some of the glass.

I might keep the panelling.

-Oh, please!

-I will keep the panelling initially.

It'll clean up. I've had a scratch of it, it's not bad.

Andy, who lectures on the subject of drama at the local university,

paid £156,000 for the property at auction.

He planned to make this house his new home.

But despite the property's plus points,

there were some serious structural issues.

There was subsidence, which had caused sloping floors,

but I was sure Andy wouldn't make a drama out of a crisis.

Just under eight months later, we're back.

And what can I spy?

An extension.

How exciting!

But unfortunately, the original stained glass bay window has gone.

Does this mean a modern make-over inside?

Well, the wood panelling has been stripped, sanded and repaired,

making a magnificent first impression.

I liked the fact that the house had a lot of original features,

like the glass and the panelling,

and I wanted to keep as much of it as I could.

But it quickly became apparent that it wasn't practical

with the glazing to do that.

Panelling in the hall and upstairs, I kept them.

I went for a white finish, because I think it brings more light in.

Andy's team of tradesmen have done a marvellous job

under his ever watchful eye,

making sure he gets his home exactly as he wants it.

But the really big changes are at the rear of the property.

Andy extended out into the back garden,

combining the kitchen and rear reception room

to create a marvellous open-plan living and kitchen area.

The idea was to go from a '30s house, with small rooms,

and kind of modest spaces,

to a more modern version,

with open living area,

and also be open to the garden.

Ah, the garden. Remember those gigantic trees?

I'm pleased to say they've gone,

and Andy's attempting something a touch more tranquil.

Well, I saw this Japanese garden in the south of France,

and it was gorgeous, the lovely sort of chunky deck,

and little plants in gravel.

I thought, "I want one of those."

Well, so far I've got a sea of mud,

but hey, it's a work in progress, you know.

Andy may be in need of a peaceful place to relax

after all the stresses and strains of this renovation.

The extension proved to be a difficult build,

requiring deeper than expected foundations.

The original foundations for the house required underpinning,

to ensure there were no more issues with subsidence.

Let's take a look upstairs, at the new extension.

Andy has created a new master bedroom,

and tucked behind the partition wall

is the entrance to an en suite shower room.

Andy's also had a play with the layout of the other rooms.

The smallest of the three is now a simply sumptuous

and luxurious bathroom.

# This kind of love is getting expensive

# We know how to live, baby

# We're luxurious like Egyptian cotton. #

And what was the bathroom is now an open-plan office.

Andy has spared no expense,

fitting out his new home to his own high standards.

So how has his £60,000 budget held out?

I suppose it wasn't so much a budget,

as a piece of supreme optimism!

What had happened was that I had some difficulty finding a builder who would give a firm quote.

Once I had that, I knew that 60,000 wasn't going to get anywhere,

because the complete set of windows, complete central heating system, all-new plumbing, all-new wiring...

So, at that point, I thought, "OK, that's 80,000, then."

And that was 80,000. 80,000 came and 80,000 went.

So I think it will probably end up something in excess of 90,000 by the time it's all finished.

Andy estimates a total outlay, including the purchase price,

of around £250,000.

There is a great deal to admire about the renovation and restoration of this house,

but what has he enjoyed most?

The highlight for me is when you can actually see the kitchen and the lounge together,

and you can sort of imagine living in this space.

Also, the garden is a work in progress,

but when the sun shines out the back, that's terrific as well.

We invited two local estate agents to give us their opinion

on Andy's new home.

I think it's an excellent property, obviously been extended,

refurbished, good-quality fixtures and fittings.

Just an excellent family home.

The property has been refurbished to a very good standard,

creating a great family home in a very popular area.

Andy expects his total spend here to be around £250,000.

While it has undoubtedly been money well spent to create a wonderful new home for Andy,

has it been money well spent as a financial investment?

How much do the estate agents believe this property could achieve if sold?

I think this property could achieve something in the region of £265,000.

I would recommend an asking price in the region of £250,000.

250 to 265? Well, that's probably what I spent in the end, you know.

But, hey, I've got what I wanted and it's a great experience.

And it appears Andy is pondering transferring

his new property-developing skills onto another project.

I'm going on holiday to France in a bit, and I did notice that the French estate agents are sending me

all this stuff, and you can pick up some fantastic bargains in the southwest of France.

You know, who knows? It might be Homes Under The Hammer en France!

Well, perhaps I'd better start brushing up on the old French.

Ah, mais oui. Mais oui, sacrebleu, mon cheri, vol-au-vent!

# Daydream

# I fell asleep amid the flowers

# For a couple of hours

# On a beautiful day... #

This is Hanley Forest Park on the edge of Sneyd Green in northeast Stoke-on-Trent.

It's certainly a lovely area now, that's for sure, but it hasn't always been like this.

In the 1970s, it was converted from the remnants of the old mining industry,

so this would have been slag heaps, old buildings, and general detritus.

It's now a lovely recreational area for skateboarders, cyclists, walkers, whowever.

Great news, cos the property I'm here to see is around the corner.

It almost doesn't matter what the property's like.

Who wouldn't want to live right on the edge of this fantastic park?

No wonder it is won conservation awards.

It's an oasis of tranquillity and beauty in the heart of Stoke.

And right on your doorstep.

Well, the property I'm here to see is on a relatively new development,

and houses here don't come up that often.

When you hear of a one-bedroom flat with a guide price of £39,000-plus,

it's definitely worth investigating.

You know what? From the outside, it looks pretty good.

The flat is leasehold, but with a whopping 980 years left,

there's no need to worry about renewing the lease just yet.

Nice double-glazed entry door. Good to see.

Property's probably 15 to 20 years old, so, hopefully,

not going to find too much that needs to be done.

Having said that, looks like it's got storage radiators,

so factor in some money to redo the central heating

and put in something possibly as an alternative to that.

Bathroom, you know, nothing intrinsically wrong with it,

but a bit of time and effort could really spruce it up.

It's only one-bedroom, so, not masses of space,

but it's fairly well proportioned. That's your one bedroom there.

And then through into this sort of open plan living/kitchen area,

which I think works really well.

The kitchen, like the bathroom, you know, it hasn't been replaced

since the property was built, I would hazard a guess.

It needs a bit of updating, and that would really make a big difference.

As it is, in terms of layout,

the place hasn't got a huge square footage,

but I think it makes the most of what it has got. And I like it.

# Baby, I like it The way you move on the floor

# Baby, I like it I-I-I like it... #

The layout is not all there is to like about this ground floor flat.

Well, there's no getting away from the fact the flat itself isn't exactly huge.

But a fantastic bonus is that through a set of patio doors,

you've got this area here.

Bit of patio itself and then a small amount of garden,

and you're right on the edge of some woodland.

So, the basic result of this is that it means the flat itself doesn't feel claustrophobic.

And actually, you've even got a bit of a view of the lake.

Brilliant.

A great outlook, providing you're tall enough!

# I turn to stone

# When you are gone

# I turn to stone... #

I bet there weren't many stony faces at the auction, though,

with this flat guided at £39,000.

To find out more about the potential here,

we invited a local estate agent to come and take a look.

Who does he think might be attracted to this one-bedroom flat?

This property in this area would appeal to investors,

particularly those who are looking for low-maintenance properties

with a good rental return.

Also, owner-occupiers or first-time buyers

and an investor would have no problems in letting a property.

A rental value for this type of property would be in the region of £400 per calendar month.

So, an excellent bet for letting, then.

And what could you expect if you decide to sell it on?

Even with very basic refurbishment, lick of paint, new carpets,

I would suggest the property would be worth in the region of £50,000.

Well, it may not be the most glamorous of properties,

but you certainly can't knock the location,

and this little flat does exactly what it's supposed to do.

It could be an ideal rental opportunity with very little money or effort required to sort it out,

or just a real pleasant place to live. So, I think an excellent one to go for.

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

Lot 42 - modern ground floor apartment, popular location,

bedroom, bathroom, living room, kitchen, it's all there.

What shall we say for lot 42? Can we start it at 30?

Yeah, 30 bid. £30,000.

31. £31,000. 32.

32, 33, 34,

35, 36, 37,

38, 39...

At 39,000, seated on the front row...

40?

500, he's saying. 39-and-a-half.

40. 40. Another half?

No? At £40,000 on the front row, then. Another 500 anywhere else?

Bid's at 40,000 on the front row and I'm selling it...

40,000 then for the first time, 40,000 for the second time,

third and final time at £40,000... That's your lot, sir. Well done.

The successful bidder, who paid £40,000 for the one-bedroom flat, was Rob. Thanks to his day job,

he knows a thing or two about the property world.

He's the business manager for a company which certifies

the energy surveyors who provide those all-important energy

performance certificates when you are selling or letting the property.

# High energy

# Your love is lifting me

# Whoa-whoa... #

-Rob, great to meet you.

-And you, Martin.

-Congratulations.

-Thank you.

Tell me why you wanted to buy this flat.

Well, it was one I came to look at. It probably wasn't my first choice.

I looked at three or four on the day and I only came to view this one

because the chap who was doing the viewings was coming here next and I thought I'd follow him down.

-Wow!

-Pretty much, yeah.

-And you ended up buying it.

Yeah, I thought it was excellent. When I've come in to have a look at it, I was very pleased with it.

Tell me little more about you, what do you do?

-I'm a business manager for an energy rating company.

-Right.

I actually look after a team who look after the energy surveyors who look after commercial buildings.

The energy rating of a property shows how efficient it is.

Rob's ended up with a flat with only one bedroom to heat,

instead of the two or three he'd initially been after.

But he could still be getting a bit hot under the collar

with the work he's planning.

So, tell me why you wanted to buy this particular place.

I think it was basically the location.

You've seen the location outside. It's beside Hanley Forest Park.

It's a lovely area, and obviously the price was right, so I decided I would buy the place.

Although he works full-time,

Rob's no stranger to property developing.

He usually does one or two investment properties a year.

So is the idea to do it up and sell it on, or to keep it and rent it out?

Initially, it was to buy it up and sell it on.

Having looked at it now and spoken to a couple of agents,

one-bedroom flats are quite sought-after now.

I've had one of the letting agents out to have a look at the place,

and he's given me a guaranteed rental scheme as well.

What he said is that they would become the landlord

and would guarantee the rent for me for a period of 12 months.

-So, if the tenant leaves or there's voids, you don't have to worry about that?

-I don't... It doesn't, yeah.

Clearly, that's going to come at a price. What kind of price does that come at?

Erm, I think the rental guarantee was about £280 a month,

so they're taking close on 30%.

-Right. So, from 400...

-To 280, yes.

-To 280. So, quite a hit.

Quite a hit, but no fees involved, so I don't pay any fees whatsoever.

-OK.

-And that's guaranteed, as I say, whether the place is empty or not.

Well, I can see the appeal for Rob of getting a guaranteed income,

although he'll have to pay about 30% of the gross rental income to the management company.

But before anyone moves in, there's work to do.

So, what kind of budget have you set aside?

I don't think it needs that much leaning on it.

I mean, I would spend no more... Probably 2-5,000.

And what kind of went of time?

Probably... I've got quite a lot on at the minute,

so I'll be looking to do that within the next eight to ten weeks.

Simply because it'll be weekends, it'll be time I've got spare.

-Well, congratulations.

-Thank you.

-Good luck with it. Look forward to seeing how you get on.

-Great.

Well, it may not have been his first choice,

but I think Rob has done really well with this place.

The potential is to create something for not very much money that is going to create a reasonable yield.

And certainly that guaranteed rental is something to consider.

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

The moment of reckoning has arrived.

-Yes, have those property gambles paid off or have our buyers backed the wrong horse?

-Let's find out.

Welcome back to Bristol where, in the suburb of Longwell Green,

I viewed this two-bedroom semi-detached,

which had a guide price of between 100 and 110,000.

Inside, it was beaten up and broken down, and in dire need of some TLC.

And the man for that job was JJ.

# Tender love and care

# That's what I'll be givin'

# Tender love and care... #

He purchased the property for 133,000, and planned to do it up and sell it on.

JJ managed a cash and carry, but intended to retire.

Having dabbled in property developing in the past, he decided the time was right to return to it.

Tell me how you got to hear about this property.

I had a look on the internet, actually.

I always look on all the auctions and all that. So, came down...

Only two days before the auction, I looked at it.

And we decided to go for it, and that was it, you know.

So we thought about having a bash at it.

So, will JJ's "bash at it" be the tender love and care this property required?

And will he reap the cash AND CARRY on developing?

Two months later, we're back to find out.

# Whoa!

# You've got to give a little love

# Give a little love

# Go on, just do it

# You can't abuse it

-# Give a little love! #

-Well, the kitchen's looking good.

Let's ask the man himself to talk us through it.

We have replaced the kitchen and all the tiles, floor tiles,

lightings, electricals, new plugs, completely done up.

And that is where most of my money has gone.

And it's money well spent,

as an attractive kitchen is one of the main selling points of any house.

I am also glad to see JJ has come to his senses

and NOT bricked up the patio doors as he originally intended.

The garden is now a place to sit and relax, rather than a rubbish tip.

Let's see what he's been up to the sitting-room.

# Give a little love!

# Give a little love

# Give a little love

# Go on and do it... #

Actually, we have replaced the banisters here.

Completely new - bits were missing.

Put in new lighting, redecorated it,

and so we did quite a bit in this room, you know.

Virtually did 101% work in here.

Does the 101% effort continue upstairs?

The two bedrooms are now smart and welcoming,

having been redecorated and recarpeted throughout.

JJ could've skimped in the bathroom and reused the existing suite.

But, once again, he has invested wisely.

As with the kitchen, a good bathroom is an important selling point and certainly adds value.

One potential area of significant added value

was to build an extension.

JJ had plans drawn up and planning permission has been granted,

but he's decided against carrying out the works himself.

This area, actually, mostly houses are two-bedroomed houses.

And mostly couples lives there.

Or...now these days some families are moving in.

So if somebody do want a bigger house,

they don't have to go buy another one,

they can just extend this one.

Having planning permission approved may entice potential purchasers

put off by the fact that there are only two bedrooms.

JJ has done the work here, with help from friends in the trade

and also his wife Sukinda.

She's been in charge of choosing the kitchen and bathroom

and the fixtures and fittings.

I help my husband like Miss Mate. Like a builder.

And I bring him food. Indian food.

Make coffee. Help him to buy lights, kitchen, and the tiles.

I help him all round. Everything he ask for, I bring him.

They finished the renovation in eight weeks and spent £12,500 on it.

Added to JJ's purchase price of £133,000,

that means a total investment of £145,500.

Now all he needs to do is sell it.

We asked two local estate agents for their opinion of this property.

The simple refurb is the best thing that he could have done.

Very straightforward, very rentable, very sellable.

It's...just about right.

He's used all the correct colours.

Obviously, magnolia walls making it nice, bright and cheerful.

He's done a very good job of the kitchen -

nice open plan feel to it, with the dining room directly off.

Bearing in mind JJ's total investment of £145,500,

how much do the estate agents believe this property could make if sold?

The value of this house, currently, is around £170,000.

I would suggest that he would market this property at £174,950

to achieve a realistic value of £170,000.

That valuation tallies with JJ's expectations

and would mean a gross profit of £24,500.

In the current economic climate, sales can be slow,

so let's investigate rental.

The rental market is really quite strong.

This is a quite favoured part of Bristol.

The rental demand would generate I think about £700 per calendar month.

This is a very, very sought-after area for rental property.

I would suggest a rental value of £700 per calendar month

would be very, very achievable.

Despite the good local rental market,

JJ is determined to sell this semi,

as he already has his eye on another investment opportunity.

So, would JJ recommend other would-be developers to invest in property?

It is well worth doing it.

I mean, we had the money three months in the bank -

I think we achieved about £150 interest on it.

By doing this, in two months, we might make £15,000.

Even maybe £10,000 is better than... a lot better than the bank.

I encourage anybody to do it.

Hanley Forest Park in Sneed Green, Stoke-on-Trent,

has won several conservation awards.

So, not surprisingly,

properties neighbouring the park are always in demand.

Early in the programme,

Rob bought a one-bedroom, ground-floor flat in this property for £40,000.

He's a full-time manager in a company providing support to energy surveyors.

He's purchased other investment properties in the past

which he's always sold,

but he was in two minds about what to do with this flat.

So is the idea to do it up and sell it on, or keep it and rent it out?

Initially, it was to buy it and sell it on.

Having looked at it and spoke to a couple of agents,

one-bedroom flats are quite sought-after now,

so we've already had one of the letting agents out

to look at the place.

And he's given me a guaranteed rental scheme, as well.

He's said they would become the landlord,

and they would guarantee the rent for me, for a period of 12 months.

If Rob went with the rental guarantee scheme,

he would get £280 per calendar month,

although the flat could actually let for around £400 per calendar month.

So, which letting route would he take?

Or would he sell once he'd surveyed it some more?

11 weeks later, we've returned to Sneed Green.

Well, he's certainly given the flat an impressive refurbishment.

Look at the bathroom! Everything is new.

On the other side of the bathroom wall,

Rob's put his energy into the kitchen.

In the kitchen, I went for a good-quality fitted kitchen,

keeping it nice and clean, and a smooth finish,

because it is a very small space.

And we've also contrasted it with grey tiles.

I did that because I did a previous job with cream tiles

and I threw a few of the cream into the grey

and I think it works really well, actually.

We also have the touch-control ceramic hob

and fan-assisted oven, topped off with the modern extractor fan.

So, all-in-all, it's a very usable kitchen

with good-quality appliances.

I really like what Rob has achieved

in quite a cramped space.

The chrome sockets reflect the quality of the finish.

In the living room, he's replaced the fire

and new carpet's been laid throughout.

There's only one bedroom,

so removing the wardrobe was a sensible move.

The new door has moved the flat on from the 1990s as well.

But I'm keen to discover if this level of finish

is a clue to Rob's plans for the flat

and how much he's spent.

I wasn't sure, when I first bought this,

whether to bring it to a reasonable or a good standard.

To rent it out, or...

So I set myself a budget of about £5,000.

And I have actually spent just over 4,600, so I've come under budget.

I think it is a really nice location,

and speaking to estate agents,

they did say that there's a number of people looking to downsize.

So I did it to a standard that would suit pretty much anybody,

but I think I'm making my mind up to sell it at the end.

With the £40,000 he spent at auction,

that £4,600 outlay takes Rob's total investment here to £44,600.

That would have inevitably been more

had he decided not to keep the storage heaters.

But the flat's been replumbed and new carpets and blinds all add up.

Remember, Rob works full-time

and has been doing the work at weekends and in the evenings,

so who else has been involved?

My partner, Louise, did all the painting in here.

So she came down with me at the weekends.

She also did the garden.

Out back, it's not just Louise's flowers that smarten up the garden.

When I first looked at this, the patio was a bit grubby,

it was overgrown, the fence was damaged.

So all it's really taken is a couple of fence panels to repair

and a power wash-off, and a tidy-up here,

and it's looking an awful lot better.

But it's been no laughing matter out here,

because someone's been overseeing all the work.

When we first came into the garden we'd a couple of little friends.

One's there, and there's rabbits here pretending to be a chair.

We had a laugh, but we thought, it's obviously someone's taste,

if not ours, but we decided to leave them here.

This little chap's project-managed the whole job

right to the end, so we decided we'd leave him here.

He's comfortable, so he's gonna stay.

# Ha-ha-ha, he-he-he

# I'm a laughing gnome and you can't catch me

# Said the laughing gnome...#

Well, there's no place like gnome!

We invited two local estate agents to look at the flat

and give us their thoughts on it.

The standard of the spec is very good.

It's good-quality contemporary fittings -

particularly the kitchen and bathroom.

I like that there's been little bits of attention to detail.

The fire's better than you'd normally expect to find,

the sockets are all chrome, which is not what you'd expect.

They'd normally be a standard white.

And the light fittings are of a better standard.

If Rob can't get a buyer and decides to let it,

how much income could the flat produce?

I would anticipate a rental return

in the region of £400 per calendar month.

We'd look at a rental figure of £375 per calendar month.

He might be tempted by a yield of over 10%?

Yeah, that's pretty good. That's what I was expecting.

Erm... I've had another agent around prior,

so they confirmed about £400 a month.

So that's just about right. Yeah, good.

What about the resale figures?

Will the flat be worth more than the £44,600 Rob's invested here?

I would anticipate an asking price in the region of £60,000

in the hope of achieving very close to this figure.

We'd look to advertise the property at £60,000

looking to achieve £55,000.

So a potential gross profit of between £10,400 and £15,400

before taxes and expenses. But Rob is disappointed!

I suppose with the state of the market it's to be expected,

but it's lower than I thought.

It's about to go on the market slightly higher than that,

so I'd expect to get slightly more than that.

Having always sold his investment properties,

I thought this might have been Rob's first buy-to-let.

Oh, well. Maybe next time. So what are his plans?

Look for another, and hopefully this time next year,

I'll be in the same position again. Ready to sell another one.

Well, whether you're an old-time property developer or a property novice,

join us next time for more stories here on Homes Under the Hammer.

-Yep, make sure you tune in then. Goodbye.

-Goodbye for now.

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