0:00:02 > 0:00:05- Welcome to Homes Under The Hammer. - We know all too well now
0:00:05 > 0:00:08that value of houses can go down.
0:00:08 > 0:00:11It's important to buy at the right price.
0:00:11 > 0:00:15One way to do that is to buy your home under the hammer.
0:00:40 > 0:00:44If you're thinking you'd like to have a go at buying at auction,
0:00:44 > 0:00:47then now may be the time to start.
0:00:47 > 0:00:51The market is always changing, so you have to judge when is the right time to buy?
0:00:51 > 0:00:55On today's show, three buyers have already put their money on the line
0:00:55 > 0:00:57and here's what they bought.
0:00:58 > 0:01:02'This good-looking two-bed semi in Sunnyhill, Derby,
0:01:02 > 0:01:05'could be full of surprises.'
0:01:05 > 0:01:07This is where it all goes horribly wrong.
0:01:08 > 0:01:13'In Charlton Marshall, Dorset, this old clubhouse doesn't throw my kind of party.'
0:01:13 > 0:01:17There was no alcohol or tobacco allowed on these premises.
0:01:18 > 0:01:21'And in Bousteads Grassing near Carlisle,
0:01:21 > 0:01:26'a three-bed semi with a nice guide price, but nasty layout.'
0:01:26 > 0:01:28Bit of a design fault.
0:01:30 > 0:01:35'All these properties were sold at auction. We'll find out who bought them and what they paid
0:01:35 > 0:01:38- 'when they went under the hammer.' - Sold.
0:01:44 > 0:01:47Derby is a real mixture of old and new.
0:01:47 > 0:01:52Victorian architecture rubs shoulders with concrete and glass constructions.
0:01:52 > 0:01:55It was one of the birthplaces of the Industrial Revolution
0:01:55 > 0:01:59and is the home of the first ever factory,
0:01:59 > 0:02:02the first powered silk mill.
0:02:02 > 0:02:06# Bring me sunshine Bring me love... #
0:02:07 > 0:02:10From this sunny spot on the Derwent river
0:02:10 > 0:02:14to here, one of the oldest suburbs of Derby.
0:02:15 > 0:02:18This is the Sunnyhill area of Derby,
0:02:18 > 0:02:22three miles outside the city centre, between Normanton and Littleover.
0:02:22 > 0:02:28The property I'm here to see is this, a two-bedroom semi-detached
0:02:28 > 0:02:31at a guide price of £68,000-plus.
0:02:31 > 0:02:35Love the garden, which is always a good sign. Let's look inside.
0:02:36 > 0:02:40One of the first things I notice is it's not double glazed,
0:02:40 > 0:02:42which is a bit of a downside,
0:02:42 > 0:02:47but the exterior paintwork is in extremely good condition, so it's been looked after.
0:02:47 > 0:02:50From the moment you step into the house, you get that impression -
0:02:50 > 0:02:53this is a house that someone's taken care of.
0:02:53 > 0:02:57So, through into this little area. You've got the kitchen there.
0:02:57 > 0:03:00Now, not ideal cos it's quite small.
0:03:00 > 0:03:03I can see an easy thing you could do. Take out that wall.
0:03:03 > 0:03:06What is now the rear living room area
0:03:06 > 0:03:10would create a really nice kitchen/open plan living area,
0:03:10 > 0:03:14which is very 2012 and definitely a good thing to do with this property.
0:03:14 > 0:03:18Through to the front, and you've got this really nice living room.
0:03:18 > 0:03:23Bay window, big fireplace area that you might want to modernise.
0:03:23 > 0:03:28But straightaway, I'm thinking, "Yep! This is a goodie!"
0:03:28 > 0:03:31MUSIC: "It's Looking Good" by The Rutles
0:03:35 > 0:03:38'Although the carpets and fixtures look a little dated,
0:03:38 > 0:03:41'they've certainly been well looked after.
0:03:41 > 0:03:43'What about upstairs?'
0:03:45 > 0:03:49If you were expecting me to come upstairs and say, "Ha-ha!
0:03:49 > 0:03:54"This is where it all goes horribly wrong!" you are going to be disappointed.
0:03:54 > 0:03:58It just continues to go very well indeed. Two bedrooms.
0:03:58 > 0:04:02A really nice one at the front of the property with a bay window.
0:04:02 > 0:04:05The loo's where it should be, upstairs. Small bedroom at the back.
0:04:05 > 0:04:07You've been in property for a while.
0:04:07 > 0:04:11You get suspicious. You're always on the lookout for what's wrong.
0:04:11 > 0:04:15Sometimes, you've got to go, "This is a really nice property."
0:04:15 > 0:04:18That's exactly what it is.
0:04:19 > 0:04:21'It really is a lovely little place.
0:04:21 > 0:04:26'You may find yourself less inclined to rip it out and start modernising,
0:04:26 > 0:04:31'as it has clearly been loved and cared for, and is charming for it.
0:04:32 > 0:04:35'I'm particularly taken with that front garden.
0:04:35 > 0:04:41'It's not the only treat in store when I venture outside to explore.'
0:04:44 > 0:04:50A real bonus to the property is that it sits on this nice sized plot.
0:04:50 > 0:04:52There's two things you could do.
0:04:52 > 0:04:56One, think about extending. There's easily room to do that.
0:04:56 > 0:05:00That would come down to whether it's financially viable
0:05:00 > 0:05:02or just something you wanted.
0:05:02 > 0:05:04The second thing you could do
0:05:04 > 0:05:07is leave it as it is and use it as an allotment.
0:05:07 > 0:05:09People cry out for allotments.
0:05:09 > 0:05:12Here's a chance to become self-sufficient,
0:05:12 > 0:05:16plant your vegetables, plant your fruit and get back to nature.
0:05:16 > 0:05:18An added bonus for sure!
0:05:25 > 0:05:31# Oh, the good life
0:05:32 > 0:05:37# Full of fun Seems to be the ideal... #
0:05:37 > 0:05:40'There's plenty of food for thought.
0:05:40 > 0:05:42'Would you extend, or develop the garden?
0:05:42 > 0:05:46'Would you change the layout to make a larger kitchen?
0:05:49 > 0:05:52'With its £68,000-plus guide price,
0:05:52 > 0:05:57'we invited the auctioneer who sold the property to give us his opinion.'
0:05:58 > 0:06:00The house has got a nice feel to it.
0:06:00 > 0:06:06It's as it was built, very much, so it's not been spoilt.
0:06:06 > 0:06:09You've got the ingredient here of quite a sizeable plot,
0:06:09 > 0:06:13so the opportunity's here for extensions, for parking,
0:06:13 > 0:06:15for conservatories, lovely garden.
0:06:15 > 0:06:20It's got the extra ingredient to it, so it appeals to me.
0:06:21 > 0:06:26'He likes it as much as I do, and we're agreed on its appeal.
0:06:26 > 0:06:30'If a basic renovation were done, what could it be resold for?'
0:06:31 > 0:06:36I think that when this was improved, it would have a value of about £105,000.
0:06:37 > 0:06:40'How about the rental returns?'
0:06:40 > 0:06:43Once renovated, and this came up on the rental market,
0:06:43 > 0:06:48it would demand a rent of somewhere around £500 a calendar month.
0:06:48 > 0:06:51'If an extension to make it a four-bedroom was done,
0:06:51 > 0:06:56'he recommended a sale price of £155,000 to £160,000
0:06:56 > 0:06:59'and a rental of £650 per calendar month.
0:06:59 > 0:07:03'It certainly seems that either option is viable.'
0:07:04 > 0:07:06There is quite a demand,
0:07:06 > 0:07:10both from a sale point of view and a rental point of view.
0:07:10 > 0:07:13And I would expect that, when this is updated,
0:07:13 > 0:07:16it won't stay around for too long.
0:07:19 > 0:07:23There are obviously things you could do to this house, if you wanted to update it.
0:07:23 > 0:07:25But it is one of those rare finds -
0:07:25 > 0:07:30a property that you could literally move into as it is, or rent it out.
0:07:30 > 0:07:35So, weigh up whether or not it's worth spending the money to sort it out.
0:07:35 > 0:07:38Let's see who fancied it when it went under the hammer.
0:07:40 > 0:07:44Lot number six. Start me where you like on this, ladies and gentlemen.
0:07:44 > 0:07:4870,000 to put it into the bidding? Who's got 68?
0:07:48 > 0:07:50Thank you. 68, I have.
0:07:50 > 0:07:5468 is the starter. 69. 70,000.
0:07:54 > 0:07:5771. 72 is bid.
0:07:57 > 0:07:5973.
0:07:59 > 0:08:0174. 75.
0:08:01 > 0:08:0476. It's against you, madam, at 76.
0:08:04 > 0:08:0677.
0:08:06 > 0:08:0878.
0:08:08 > 0:08:11At £78,000. All done?
0:08:11 > 0:08:1579 at the back. 80,000.
0:08:15 > 0:08:1881, thank you. 82.
0:08:18 > 0:08:2183. 84.
0:08:21 > 0:08:2385?
0:08:23 > 0:08:27At £84,000 for the first time.
0:08:27 > 0:08:31For the second time. Third and last opportunity. All done?
0:08:31 > 0:08:34Sold. It's yours, sir. 84,000. Thank you.
0:08:34 > 0:08:36'The hammer fell at £84,000.
0:08:36 > 0:08:42'That winning bid came from Brian, who already has a healthy portfolio.
0:08:42 > 0:08:45'I met him at his latest acquisition.'
0:08:46 > 0:08:47# Brian
0:08:48 > 0:08:51# The babe they call Brian... #
0:08:51 > 0:08:54- Brian, great to meet you. Congratulations.- Thank you.
0:08:54 > 0:09:00- Tell me why you wanted to buy this house.- Mainly because it's got possibilities for planning.
0:09:00 > 0:09:05- An extension. So we could turn it into a four-bedroom, two-and-a-half bath.- Wow.
0:09:05 > 0:09:08- Or we could let it as it is. - Have you made any enquiries
0:09:08 > 0:09:13as to values of similar sized properties in this area and if that would work around here?
0:09:13 > 0:09:19Good point. Thing is that the houses round here sell for roughly 100,000, thereabouts.
0:09:19 > 0:09:23- That's two bedrooms.- Right. - With a small piece of land.
0:09:23 > 0:09:26This, as you can see, has got a lot more than that.
0:09:26 > 0:09:28So, I thought it was...
0:09:28 > 0:09:33quite an idea that we could use it as a plot to build another house on,
0:09:33 > 0:09:36which, when you look at it, of course, is not possible.
0:09:36 > 0:09:43But it certainly would extend very nicely into a four-bedroomed, two-and-a-half baths.
0:09:43 > 0:09:47- Right.- A four-bedroom house round here, and there's two up the road,
0:09:47 > 0:09:49done in the same way as I'm describing,
0:09:49 > 0:09:52they're around 175,000, 185,000.
0:09:52 > 0:09:56The idea is to let it out first, get some money back on it.
0:09:56 > 0:10:00'So, Brian's bought this property for the long haul.
0:10:00 > 0:10:05'Once he's made some money from letting it, he can research how much that extension would cost.
0:10:05 > 0:10:08'Whilst it would mean the place would be worth more,
0:10:08 > 0:10:12'the cost of doing the work may be too high to be worth it.
0:10:12 > 0:10:14'Speaking of work...'
0:10:14 > 0:10:16What do you do? Tell me about you.
0:10:16 > 0:10:21- Apprentice press photographer as a kid.- A press photographer?- Yeah.
0:10:21 > 0:10:26And then I became a freelance, started making real money.
0:10:26 > 0:10:30And then I moved on to renting caravans in France.
0:10:30 > 0:10:34- An obvious leap(!) - Yes! Then to a travel agency!
0:10:34 > 0:10:38- And then to a tour operation doing villas.- Oh, golly. - Now I just own a bit of property.
0:10:38 > 0:10:42'By a bunch, Brian means ten.
0:10:42 > 0:10:44'He owns two commercial properties
0:10:44 > 0:10:47'and this is his eighth residential one.
0:10:47 > 0:10:52'He hopes to have it renovated and ready for rental in six weeks.'
0:10:52 > 0:10:55- What are you going to do to it? - We're taking out a wall back there.
0:10:55 > 0:10:58The kitchen is a one-person kitchen, or a one-chef kitchen.
0:10:58 > 0:11:02That wall's coming out. Brick up round the doorways.
0:11:02 > 0:11:04We may or may not change the bathroom.
0:11:04 > 0:11:09It's a pleasant little bathroom, although out of date as far as colour's concerned.
0:11:09 > 0:11:11Should be white, of course!
0:11:11 > 0:11:16And we've got to renew the carpets and put in some quite nice curtains.
0:11:16 > 0:11:18Windows?
0:11:18 > 0:11:23I'm going to leave them because, if you look at them, they're pretty solid.
0:11:23 > 0:11:27- They are. Not double glazed, though. - No, but this isn't a busy area.
0:11:27 > 0:11:31Not a lot of noise. I've checked with the neighbour. It's quiet.
0:11:31 > 0:11:35The trouble is the garden, which is too good for rental purposes.
0:11:35 > 0:11:38Rental people don't do a lot of gardening. This is fussy garden.
0:11:38 > 0:11:41We've got to put a driveway in. MARTIN GASPS
0:11:41 > 0:11:44- Fussy but beautiful. - Yes. It's very pretty.
0:11:44 > 0:11:50And the next-door neighbour does the garden. Hopefully, he'll do a bit of work for me.
0:11:50 > 0:11:52- For pay, of course.- Of course.
0:11:52 > 0:11:56- So what's the budget for the work? - About ten grand.
0:11:56 > 0:12:01- Congratulations. Good luck. Look forward to seeing how you get on.- Thank you.
0:12:03 > 0:12:11So, this little property's taking former photographer Brian's property portfolio into double figures.
0:12:11 > 0:12:13How will the project develop?
0:12:13 > 0:12:16- CHUCKLING:- You can find out later in the show.
0:12:21 > 0:12:26'I'm in the conservation village of Charlton Marshall in Dorset,
0:12:26 > 0:12:30'home to a vibrant community of over 1,000 residents.
0:12:30 > 0:12:33'There's a wonderful blend of the old and new here,
0:12:33 > 0:12:35'with a historical reason.'
0:12:37 > 0:12:42Most of the village was rebuilt by the local lord of the manor in 1731
0:12:42 > 0:12:45after a huge fire destroyed the place.
0:12:45 > 0:12:48The property I'm here to see is an older one.
0:12:48 > 0:12:51It used to be a clubhouse for labourers.
0:12:51 > 0:12:54It was used as that right up until the end of World War II.
0:12:54 > 0:12:57So this semi-detached house, like the village,
0:12:57 > 0:12:59is fascinating historically.
0:12:59 > 0:13:03It's got a guide price of £175,000.
0:13:03 > 0:13:05So let's see why.
0:13:07 > 0:13:08Wow!
0:13:08 > 0:13:13- VOICE ECHOES:- What a space! Look at that amazing ceiling height.
0:13:13 > 0:13:17Somebody's already added a floor to this side.
0:13:17 > 0:13:20This has got a lovely feeling to it.
0:13:20 > 0:13:23So I want to know, what did they get up to in this club?
0:13:23 > 0:13:28Well, this was the main club room, used for refreshment and talking,
0:13:28 > 0:13:31with reading reserved for the quieter rooms at the back.
0:13:31 > 0:13:36Here's an interesting fact. Women were allowed in as well as men, which is a treat!
0:13:36 > 0:13:40But there was no alcohol or tobacco allowed on these premises.
0:13:40 > 0:13:44What really interests me is these original features.
0:13:44 > 0:13:47You've got these flagstones, which are beautiful.
0:13:47 > 0:13:49And that old brick fireplace.
0:13:49 > 0:13:54If you could restore these, you've captured a bit of history
0:13:54 > 0:13:57and this room would look wonderful.
0:13:57 > 0:14:03# Yes, those good, good old days that used to be... #
0:14:04 > 0:14:06Are its good days behind it?
0:14:06 > 0:14:10It's certainly starting to show its age with crumbling plasterwork,
0:14:10 > 0:14:12ancient plumbing and electrics.
0:14:12 > 0:14:17There's a functional no-frills kitchen in one of the side rooms,
0:14:17 > 0:14:19and a downstairs cloakroom.
0:14:19 > 0:14:22There's plenty of scope to change the layout.
0:14:22 > 0:14:26It's scary, the amount of work to be done in this property.
0:14:26 > 0:14:30But, in a weird way, I love it! I could talk about this for hours!
0:14:30 > 0:14:35This room does smell a little bit damp. The paper's peeling off.
0:14:35 > 0:14:38There's obviously been some problem upstairs.
0:14:38 > 0:14:42I wouldn't be surprised if there's a leaky bathroom.
0:14:42 > 0:14:45Look at this! This is the source of heating!
0:14:45 > 0:14:47A little fire in the corner.
0:14:47 > 0:14:51You've got to take into consideration the amount of money that needs to be spent.
0:14:51 > 0:14:55It probably needs rewiring, replumbing, central heating.
0:14:55 > 0:14:58You've got lovely, lovely old windows, though.
0:14:58 > 0:15:00I think these are old Crittalls.
0:15:00 > 0:15:04What I would do in this room would be to turn it into the kitchen.
0:15:04 > 0:15:09Although this doesn't sit on a lot of land, there is a little bit of garden.
0:15:09 > 0:15:13I think it would be great to be in your kitchen and have instant access
0:15:13 > 0:15:17outside to your garden - that would work really well for families.
0:15:19 > 0:15:21'The space outside isn't huge,
0:15:21 > 0:15:24'so you might as well make the most of what there is.
0:15:24 > 0:15:28'There's even a shed - always useful for storage.
0:15:28 > 0:15:30'What about the rest of this place?'
0:15:30 > 0:15:35Upstairs, you seem to lose your way a bit. It doesn't have great flow.
0:15:35 > 0:15:37You've got a bathroom here, which is huge.
0:15:37 > 0:15:39A bedroom down the end of the corridor.
0:15:39 > 0:15:43This bedroom here and, strangely enough,
0:15:43 > 0:15:45another room in the mezzanine.
0:15:45 > 0:15:49This is officially classed as a two-bedroom property,
0:15:49 > 0:15:51so I don't really know what this is.
0:15:51 > 0:15:53But now I'm up here,
0:15:53 > 0:15:58I think what you really need to do to maximise the value of this house,
0:15:58 > 0:16:00is to create a few more bedrooms,
0:16:00 > 0:16:03making this a four or even a fifth-bedroom property
0:16:03 > 0:16:05by going across this mezzanine,
0:16:05 > 0:16:08taking it across to the other side of the room.
0:16:08 > 0:16:11You will lose that wow factor when you walk in the door.
0:16:11 > 0:16:15You won't have that unbelievable wonderful ceiling height.
0:16:15 > 0:16:18But with this property, it's about more bedrooms,
0:16:18 > 0:16:21because, really, it's about the money.
0:16:21 > 0:16:26'Sometimes, it's a fine line between refurbishing what's in a property
0:16:26 > 0:16:31'and completely revamping the layout with cost versus return to consider.
0:16:31 > 0:16:33'In this case, the split mezzanine floor
0:16:33 > 0:16:35'doesn't appear to meet building regulations,
0:16:35 > 0:16:39'so it's going to need substantial work done on it, anyway.
0:16:39 > 0:16:43'You might as well put in a floor across the building
0:16:43 > 0:16:48'to get some extra rooms and a chance to rework the entire layout.
0:16:50 > 0:16:53'What does a local estate agent make of this old clubhouse
0:16:53 > 0:16:56'and its rather quirky mezzanine floor?'
0:16:57 > 0:17:01The mezzanine floor is a little unusual.
0:17:01 > 0:17:03It would be probably more valuable
0:17:03 > 0:17:06to just revert back to an ordinary dwelling,
0:17:06 > 0:17:09so that you have a full first floor level.
0:17:09 > 0:17:14'With sorting out the mezzanine, there's a lot of work needed.
0:17:14 > 0:17:19'So, could a property guided at 175,000 be a good investment?'
0:17:20 > 0:17:23Once the property has been thoroughly renovated,
0:17:23 > 0:17:27I feel that the asking price on the market would be
0:17:27 > 0:17:29in the region of £240,000.
0:17:29 > 0:17:33If the first floor extended so that it was a full first floor,
0:17:33 > 0:17:36creating four bedrooms, or four rooms of any choice,
0:17:36 > 0:17:41I feel that it would go on the market at £260,000.
0:17:41 > 0:17:45'So, resale values aren't too bad. What about rental?'
0:17:45 > 0:17:47Once the property is renovated,
0:17:47 > 0:17:53I consider that £650 per calendar month would be a suitable rental figure.
0:17:53 > 0:17:57If the first floor was extended to create further bedrooms,
0:17:57 > 0:18:02I consider the rent would be in the region of £750 per calendar month.
0:18:02 > 0:18:08'With promising rental values, I think that as a long-term investment, this could be a winner.
0:18:08 > 0:18:11'On the resale market, I'm not so sure.'
0:18:11 > 0:18:15It's a fascinating property with lots of history attached.
0:18:15 > 0:18:21I love it, but it's in need of some serious attention before that damp gets any worse.
0:18:21 > 0:18:26It needs some thought over the layout to maximise its value.
0:18:26 > 0:18:28Let's see what happened at the auction.
0:18:32 > 0:18:35Lot five. Guide here is 175,000.
0:18:35 > 0:18:38I do have a proxy bid, which I will execute.
0:18:38 > 0:18:43So, 175. It's my bid on behalf of the proxy at 175.
0:18:43 > 0:18:47At 180. At 185. 185.
0:18:47 > 0:18:50190? 190.
0:18:50 > 0:18:54195. 200? I'll go two, on behalf of the proxy.
0:18:54 > 0:18:59At 202. Looking for four. At 204. Lady's bid at 204.
0:18:59 > 0:19:01206. 206.
0:19:02 > 0:19:05208. At 208,000.
0:19:05 > 0:19:10Lady at the back there. At 208,000. I'll take one, if it helps you.
0:19:10 > 0:19:13209.
0:19:13 > 0:19:16Treat you the same. 210.
0:19:17 > 0:19:20210, bidding on my right at the back.
0:19:20 > 0:19:22All done and sure?
0:19:22 > 0:19:26At £210,000...
0:19:26 > 0:19:30- BANGS GAVEL - Congratulations, madam.
0:19:30 > 0:19:35'So, for 210,000, the successful bidder was Natalie.
0:19:35 > 0:19:38'She bought it in partnership with her friend, Phil,
0:19:38 > 0:19:41'who brought his dog, Muddles, to check the place out.
0:19:41 > 0:19:43'Natalie's an engineer.
0:19:43 > 0:19:46'Phil runs a local quad biking and paintballing site.
0:19:46 > 0:19:49'This is to be their first joint venture.'
0:19:51 > 0:19:55Guys, congratulations. Phil, you look very happy to have bought this.
0:19:55 > 0:19:57Yeah. It's quite exciting.
0:19:57 > 0:20:01There's a chance to do so much to it, to change the look so much.
0:20:01 > 0:20:05Why have you bought this? Is it purely an investment purchase?
0:20:05 > 0:20:09Yeah. We're looking to do it up, use some of the people that work with us
0:20:09 > 0:20:13for the labour side, and professionals to do the building and to do up, sell on.
0:20:13 > 0:20:17- What do you do for a living?- Quad biking, clay shooting, paintballing.
0:20:17 > 0:20:20Team work and stag type parties.
0:20:20 > 0:20:23Natalie, what's your connection with Phil?
0:20:23 > 0:20:27I used to work for his mum. We've been friends for a long time.
0:20:27 > 0:20:31It's an opportunity to put the capital I had raised into a property
0:20:31 > 0:20:35and, hopefully, increase the capital so I have a proper deposit.
0:20:35 > 0:20:39'Natalie has invested all her savings into this project
0:20:39 > 0:20:43'and sees it as a way for her to get onto the property ladder.
0:20:43 > 0:20:45'So, there are clear objectives,
0:20:45 > 0:20:49'but do they know how they're going to make their investment work best?'
0:20:49 > 0:20:52What do you think you need to do to maximise this space?
0:20:52 > 0:20:56It is begging to have a second floor put on it.
0:20:56 > 0:20:58The mezzanine floor has got to come down anyway.
0:20:58 > 0:21:03Structurally, you feel like you're on the sea, it bounces so much!
0:21:03 > 0:21:05We've got to get that sorted.
0:21:05 > 0:21:08So you don't limit your market,
0:21:08 > 0:21:11you've got to have at least four bedrooms - four big bedrooms.
0:21:11 > 0:21:16What are you doing to get your heads together for the plan?
0:21:16 > 0:21:19We've invited ten different people and given them a blank sheet
0:21:19 > 0:21:23with the structural walls in and said, "What would you do?"
0:21:23 > 0:21:27So we've gone through all of those and chosen what we liked and bits we didn't like.
0:21:27 > 0:21:33Now it's down to us to come up with different ideas and try to collaborate them.
0:21:33 > 0:21:36MUSIC: "All The Plans" by Starsailor
0:21:42 > 0:21:47'They're planning on using an architect, once they have a clearer idea of what they want.
0:21:47 > 0:21:51'They've allocated themselves a budget of 60,000 to 70,000,
0:21:51 > 0:21:55'and hope the project will take no longer than one year.'
0:21:55 > 0:21:58Natalie, what part are you going to play?
0:21:58 > 0:22:00I'll be picking colours!
0:22:00 > 0:22:03- HE LAUGHS - The interior,
0:22:03 > 0:22:05after all the structural stuff's done.
0:22:05 > 0:22:09I'll be making sure the costs don't go through the roof.
0:22:09 > 0:22:12Do you think this is going to work well as a team effort?
0:22:12 > 0:22:15Yeah. It'll be fine.
0:22:15 > 0:22:18Yeah. We tend to think quite similarly.
0:22:18 > 0:22:24It might not be exactly the same plans, but the ideas that we're trying to achieve are very similar.
0:22:24 > 0:22:28On the colour coordination, I'll definitely be backing down!
0:22:28 > 0:22:30If you saw my house, you'd know why.
0:22:30 > 0:22:33- What colour is your house? - Dark greens, greys. Orange!
0:22:33 > 0:22:38'So, hopefully, the only potential clash here will be over colour.'
0:22:38 > 0:22:41MUSIC: "Colourblind" by Darius Danesh
0:22:46 > 0:22:50So, will Phil and Natalie work well as a team?
0:22:50 > 0:22:54And what on earth are they going to do with this place?
0:22:54 > 0:22:59What's worrying me is whether they're going to be able to squeeze a profit from this old clubhouse.
0:22:59 > 0:23:04I can't wait to find out. Join me later in the programme and see how they get on.
0:23:05 > 0:23:09'Coming up, I may speak too soon at this three-bed house near Carlisle.'
0:23:09 > 0:23:11It looks OK.
0:23:11 > 0:23:14Haven't seen anything which is worrying me - yet.
0:23:15 > 0:23:20'In Dorset, did Natalie and Phil find this project a profitable pastime?'
0:23:20 > 0:23:23We'll find out whether that was worthwhile.
0:23:23 > 0:23:25If not, we'll find a new hobby!
0:23:26 > 0:23:31'But first, how did Brian's Sunnyhill semi tot up?'
0:23:31 > 0:23:33I've got the figures exact -
0:23:33 > 0:23:35cos my wife did them! LAUGHS
0:23:39 > 0:23:42'Time for us to head back to Sunnyhill, Derby,
0:23:42 > 0:23:47'where former press photographer Brian purchased this at the auction,
0:23:47 > 0:23:51'a charming and well-kept two-bed semi for £84,000.
0:23:51 > 0:23:54'He had his plan for this place all mapped out,
0:23:54 > 0:23:58'although there was one thing I saw as a pleasure
0:23:58 > 0:24:00'that he saw as a potential problem.'
0:24:00 > 0:24:05The only trouble is the garden, which is too good for rental purposes.
0:24:05 > 0:24:08Rental people don't do a lot of gardening. This is fussy garden.
0:24:08 > 0:24:11We've got to put a driveway in. MARTIN GASPS
0:24:11 > 0:24:13- Fussy but beautiful. - It's very pretty.
0:24:13 > 0:24:18'Let's hope Brian made a very good job of getting this place the way he wanted.
0:24:18 > 0:24:20'His timescale was six weeks.
0:24:20 > 0:24:25'We've come back two and a half months after we first met.
0:24:34 > 0:24:36'It's all looking good,
0:24:36 > 0:24:40'particularly the new open-plan kitchen-diner.
0:24:44 > 0:24:49'There's new decor throughout plus a new bathroom upstairs.
0:24:49 > 0:24:53'It seems there have been more changes than Brian had planned.
0:24:53 > 0:24:57'Unfortunately, some of them have been a necessity.'
0:24:57 > 0:25:00It's a bit of a money-pit, this place.
0:25:00 > 0:25:05It was well-presented when I came in, but it turned out to be not the case.
0:25:05 > 0:25:09We've had drain problems. We've had dry rot, wet rot.
0:25:09 > 0:25:12Beams have had to be replaced.
0:25:12 > 0:25:14We've just had about the lot.
0:25:14 > 0:25:17'At least the end is in sight.
0:25:17 > 0:25:21'The only thing left to do is to turn part of the front garden
0:25:21 > 0:25:23'into what?'
0:25:23 > 0:25:27Well, this may look a mess to you, but in actual fact...
0:25:27 > 0:25:31No, it's not a swimming pool. This is supposed to be driveway.
0:25:31 > 0:25:35The reality is that we've had continuous rain for two months.
0:25:35 > 0:25:40So we're hoping that when it stops, we can actually complete it.
0:25:40 > 0:25:47'By "we", Brian means his son, Lee, and grandson, Sam, who both helped.
0:25:47 > 0:25:51'After finding it difficult to get builders to start when he wanted,
0:25:51 > 0:25:54'he drafted in his family to do the work.'
0:25:54 > 0:25:59My son, who is a maintenance builder, he's been as good as gold.
0:25:59 > 0:26:03He's been in here just about every weekday for almost three months.
0:26:03 > 0:26:07I couldn't and my wife couldn't have done without them.
0:26:07 > 0:26:11We have put a bit of our own work into the place, mostly scraping the wallpaper.
0:26:11 > 0:26:13Oh, and going up to the tip.
0:26:15 > 0:26:19'Well, there's certainly nothing tip-like in here now.
0:26:19 > 0:26:22'One thing both Brian and I were keen to do
0:26:22 > 0:26:25'was to get that tiny kitchen opened out.'
0:26:26 > 0:26:30Well, it was very narrow, and what we've tried to do
0:26:30 > 0:26:32it to make it a little bit more modern.
0:26:32 > 0:26:37I'm not keen on stoves where you have to crouch to get the turkey out
0:26:37 > 0:26:41so we've put the hotplates way over here.
0:26:41 > 0:26:44There's plenty of room either direction. Microwave at one end.
0:26:44 > 0:26:48The oven at the other. A bit of walking keeps you fit!
0:26:49 > 0:26:53'It's all looking present and correct. Well, to me it is.'
0:26:54 > 0:26:58Bathrooms need to be a little bit glamorous nowadays,
0:26:58 > 0:27:02so we put in something - it's not very rude - called a P-bath.
0:27:02 > 0:27:04The letter P, not anything else.
0:27:04 > 0:27:07From there, we'll hope people will like it.
0:27:07 > 0:27:12I haven't actually seen it, but the vinyl's been put down.
0:27:12 > 0:27:15You've seen it. LAUGHS
0:27:15 > 0:27:17You cut that bit!
0:27:18 > 0:27:21'That's the Homes Under The Hammer team for you!
0:27:21 > 0:27:24'Beating Brian to see the finished result.
0:27:24 > 0:27:29'Given those unforeseen problems, how did the ten-grand budget hold out?'
0:27:29 > 0:27:33The £10,000 has grown to £15,000.
0:27:33 > 0:27:35I've got the figures exact -
0:27:35 > 0:27:38cos my wife did them! LAUGHS
0:27:38 > 0:27:42'Let's hope Brian gets to have the last laugh.
0:27:42 > 0:27:47'With that £15,000 spend on the work added to the £84,000 purchase price,
0:27:47 > 0:27:50'he's spent a total of £99,000.
0:27:53 > 0:27:57'We invited two local estate agents to give us their opinions.'
0:27:57 > 0:28:02Overall, the property has been modernised. It's light and airy.
0:28:02 > 0:28:06They've opened up the kitchen, making it a kitchen-diner.
0:28:06 > 0:28:09We've got the nice big bay window.
0:28:09 > 0:28:12The garden's spacious. There's room for development.
0:28:12 > 0:28:16They could have a conservatory, an extra drive. The property's lovely.
0:28:16 > 0:28:19If there was anything that should have been done differently,
0:28:19 > 0:28:23maybe the windows, to paint them in more appealing colours,
0:28:23 > 0:28:26a bit more neutral that somebody would expect.
0:28:26 > 0:28:30The front of the property needs to reflect the inside.
0:28:30 > 0:28:32At the moment, it doesn't.
0:28:32 > 0:28:36'Personally, I like the character those green windows add,
0:28:36 > 0:28:39'but will the figures have justified Brian's spend?
0:28:39 > 0:28:41'Firstly, if he fancied selling.'
0:28:42 > 0:28:46Sale value for this in its current, refurbished condition,
0:28:46 > 0:28:49would be between £105,000 and £115,000.
0:28:49 > 0:28:53If we were to put this on the market, I would suggest asking £110,000.
0:28:53 > 0:28:57At that sort of level, you'd achieve £105,000.
0:28:57 > 0:28:59It's interesting.
0:28:59 > 0:29:05These houses are...quite in demand because they have large gardens,
0:29:05 > 0:29:07fairly secluded and it's quiet.
0:29:07 > 0:29:10I don't think they're quite right.
0:29:10 > 0:29:14'If the estate agents were right, Brian stands to make
0:29:14 > 0:29:18'a pre-tax profit of between around £6,000 and £16,000.
0:29:18 > 0:29:21'But his plan was always to let it for a while
0:29:21 > 0:29:24'before considering extending or selling.
0:29:24 > 0:29:26'What sort of a rental return could he see?'
0:29:28 > 0:29:30The property as it is, refurbished,
0:29:30 > 0:29:35would achieve between £475 to £495 per calendar month.
0:29:35 > 0:29:38I would easily achieve £500 per calendar month on it.
0:29:38 > 0:29:44I think that's rubbish, because I have a house round the corner, a council house, which fetches 450.
0:29:44 > 0:29:49'With the rent the estate agents suggested, Brian's rental yield would be around 6%,
0:29:49 > 0:29:51'not bad in this market.
0:29:53 > 0:29:56'Hopefully, he'll achieve a figure closer to what he's after
0:29:56 > 0:29:59'and then, perhaps, find time for some R&R.'
0:30:02 > 0:30:05Yeah, my vacation time will be in September.
0:30:05 > 0:30:07The kids are back to school.
0:30:07 > 0:30:11Maybe we can get off to somewhere...let's say, in the sun.
0:30:11 > 0:30:13Cos there's not much here.
0:30:13 > 0:30:17- CHUCKLES - 'You got that right, Brian.'
0:30:20 > 0:30:26# We used to walk down by the river... #
0:30:26 > 0:30:32Well, I'm just five minutes from the centre of Carlisle
0:30:32 > 0:30:35on the fringes of the suburb of Denton Holme.
0:30:35 > 0:30:39This used to be a very industrialised area.
0:30:39 > 0:30:44In recent times, it has become an extremely popular residential spot.
0:30:44 > 0:30:47And with this on your doorstep, you understand why.
0:30:47 > 0:30:51'The lot I'm here to see is in beautiful Bousteads Grassing.
0:30:51 > 0:30:55'I suppose that, for some, one blot on this Cumbrian landscape
0:30:55 > 0:30:58'could be the local gasworks.
0:30:58 > 0:31:01'They're at the end of the street on which this auction property sits.
0:31:01 > 0:31:06'But in a city, the nearby country aspects are always a bonus.'
0:31:06 > 0:31:11There's a lot of local and ex local authority housing round here.
0:31:11 > 0:31:16It is big and substantial, as is the property I'm here to see.
0:31:16 > 0:31:18A three-bedroom semi-detached,
0:31:18 > 0:31:24but it had the guide price of just £30,000.
0:31:24 > 0:31:26That is a very low number.
0:31:26 > 0:31:33The reason could be that there's something very worrying in the auction details.
0:31:33 > 0:31:35But I want to see for myself.
0:31:35 > 0:31:39MUSIC: "I'm Worried" by Elmore James
0:31:44 > 0:31:48Right, well, that's not the most welcoming of entrances,
0:31:48 > 0:31:52having the back of the staircase right in front of you.
0:31:52 > 0:31:57I suppose that is where you can store bikes, hats and coats.
0:31:57 > 0:32:01You could use it for that, but it doesn't give a very good impression.
0:32:01 > 0:32:03Stairs up to the bedrooms there.
0:32:03 > 0:32:06The kitchen and some little annexe room there.
0:32:06 > 0:32:10This way into the lounge. This is a nice size.
0:32:10 > 0:32:14Window at the front, window at the back, so lots of light coming in.
0:32:14 > 0:32:16And it's a good size.
0:32:16 > 0:32:19Clean up the floorboards. Um... Looks OK.
0:32:19 > 0:32:24I haven't seen anything which is worrying me unduly - yet.
0:32:24 > 0:32:27The fireplace could do with replacing.
0:32:29 > 0:32:33There has to be a reason for that low guide price of 30,000.
0:32:33 > 0:32:37The rather tired kitchen offers no clues.
0:32:37 > 0:32:41The annexe room could provide useful additional kitchen space.
0:32:41 > 0:32:43There's even a downstairs toilet,
0:32:43 > 0:32:47but it's here that the body of evidence appears.
0:32:49 > 0:32:51# Crack attack!
0:32:51 > 0:32:53# Crack attack
0:32:54 > 0:32:55# Crack attack #
0:32:56 > 0:33:00So, it all starts to become horribly clear.
0:33:00 > 0:33:02We're talking about potential subsidence
0:33:02 > 0:33:07and the resolution for that would be underpinning,
0:33:07 > 0:33:09digging out underneath the property
0:33:09 > 0:33:12and putting in something which will support it.
0:33:12 > 0:33:15The reason why this has happened -
0:33:15 > 0:33:18I've done a bit of digging around, ha ha -
0:33:18 > 0:33:21apparently, this whole area is built on a landfill site.
0:33:21 > 0:33:26Other properties have gone through the underpinning route, but it's not cheap.
0:33:26 > 0:33:30It requires a lot of work. There are some specialist solutions.
0:33:30 > 0:33:33You're looking at 5,000 to 10,000 quid to sort this out.
0:33:33 > 0:33:36So then it comes down to, is it worth it?
0:33:36 > 0:33:40For a start, are those cracks moving? I don't know.
0:33:40 > 0:33:43You'd have to monitor them over a period of time.
0:33:43 > 0:33:47If they're not moving and you're renting this place out,
0:33:47 > 0:33:50would somebody not rent it because it's got a few cracks?
0:33:50 > 0:33:55I don't know. Weigh it up. Decide what you need the property for,
0:33:55 > 0:34:00how much it costs to do the work, and then it's not necessarily given that you have to do it.
0:34:02 > 0:34:07For the attentive buyers who bothered to read the legal pack,
0:34:07 > 0:34:10the issue with the subsidence was clearly stated.
0:34:10 > 0:34:13The great thing about this house, though, is space.
0:34:13 > 0:34:16The garden is huge, although a bit wild.
0:34:18 > 0:34:21And the good news on the size front continues -
0:34:21 > 0:34:24three well-proportioned bedrooms.
0:34:25 > 0:34:30But oh, dear. The cracks are really beginning to show up here.
0:34:30 > 0:34:34And then there are the rather peculiar plumbing arrangements.
0:34:34 > 0:34:37Bit of a design flaw, this one.
0:34:37 > 0:34:40This is the bathroom, but it only contains the bath.
0:34:40 > 0:34:44There's no loo. That is downstairs. Simple resolution to that.
0:34:44 > 0:34:48This wall, shift it that way to create a bigger room.
0:34:48 > 0:34:52On the other side, a cupboard, not as important as improving the bathroom.
0:34:52 > 0:34:54A bit of work required getting rid of this wall,
0:34:54 > 0:34:58but definitely, the benefits outweigh the effort.
0:35:00 > 0:35:03This semi is in serious need of thorough renovation,
0:35:03 > 0:35:08structural and cosmetic, but pick it up for the guide price of 30,000
0:35:08 > 0:35:12and you could have found yourself a cracking deal.
0:35:16 > 0:35:20We asked a local estate agent for her opinions
0:35:20 > 0:35:23on this property and the surrounding area.
0:35:23 > 0:35:27This is a popular area. It's very popular for rental properties.
0:35:27 > 0:35:30You're a short walking distance to the city centre.
0:35:30 > 0:35:34Just over the river, you have a well-known primary school,
0:35:34 > 0:35:36close to the amenities of Denton Holme.
0:35:36 > 0:35:40Maybe one drawback of the property is the approach by car,
0:35:40 > 0:35:43through the industrial estate, past the gasworks.
0:35:43 > 0:35:47I can't see any negatives. It's a good sized family property.
0:35:47 > 0:35:49This style is very popular with families.
0:35:49 > 0:35:53Good room sizes, three good bedrooms in an affordable area.
0:35:54 > 0:35:58'How much could this place achieve if sold, once renovated?
0:36:00 > 0:36:04Renovated to a good standard, including the underpinning work,
0:36:04 > 0:36:08I would put the property on the market in the region of £95,000 to £100,000.
0:36:08 > 0:36:10'And rental?'
0:36:10 > 0:36:17I would expect the property to achieve around £425 to £450 per calendar month.
0:36:19 > 0:36:22Well, a nice enough house, this one,
0:36:22 > 0:36:25with just that one big potential problem.
0:36:25 > 0:36:29So it is important that you don't look at it with rose-tinted specs.
0:36:29 > 0:36:32Let's see who fancied it when it went under the hammer.
0:36:32 > 0:36:36Who's going to start me off? First bid of the day. 35?
0:36:36 > 0:36:38Get me away at 35, somebody.
0:36:38 > 0:36:42One might get it. 30, then. Let's get away.
0:36:42 > 0:36:4630 I've got. Thank you, sir. 32, I've got. 34, may I say?
0:36:46 > 0:36:4936? Shake of the head.
0:36:49 > 0:36:53It's with you at 34, sir. Don't bid against yourself.
0:36:53 > 0:36:55At £34,000. Are we done?
0:36:56 > 0:36:59At 34. 36, new position.
0:36:59 > 0:37:0038, may I say?
0:37:00 > 0:37:0340. 42?
0:37:03 > 0:37:06Shake of the head at 42.
0:37:06 > 0:37:0842, I've got. 44.
0:37:08 > 0:37:0946?
0:37:10 > 0:37:1245. 46?
0:37:12 > 0:37:15Seven? Eight?
0:37:15 > 0:37:17Nine? 50?
0:37:18 > 0:37:21Shake of the head at 50. It's with you at £49,000.
0:37:21 > 0:37:26Are we done? We're selling this at £49,000. Are we all out?
0:37:26 > 0:37:29At £49,000 for the first time.
0:37:30 > 0:37:33At £49,000 for the second time.
0:37:34 > 0:37:3650. 51?
0:37:36 > 0:37:3951 I've got. 52, may I say?
0:37:39 > 0:37:41Shake of the head at 52.
0:37:41 > 0:37:45Back with you at 51. At £51,000 at the front.
0:37:45 > 0:37:47First time, then, at £51,000.
0:37:47 > 0:37:49Second time.
0:37:49 > 0:37:53All done? All out? Selling away, third and final time.
0:37:53 > 0:37:58'The hammer fell on a bid of £51,000, made by Martin.
0:38:01 > 0:38:05'He and his wife, Diane, have developed eight properties over ten years.
0:38:05 > 0:38:09'When not adding to their portfolio, Diane works as a civil servant
0:38:09 > 0:38:11'and Martin's an electrician.
0:38:11 > 0:38:17'Here's hoping they've done their detective work and are not shocked by the subsidence.'
0:38:19 > 0:38:22Martin, Diane, lovely to meet you. Congratulations.
0:38:22 > 0:38:25Tell me why you wanted to buy this place.
0:38:25 > 0:38:27It's just an investment, really.
0:38:27 > 0:38:31We've got a few properties round town that we let out and this just adds to it.
0:38:31 > 0:38:35What was it about this particular house that you liked?
0:38:35 > 0:38:40First of all, it is the price that attracts you to it. Then we had a look at it.
0:38:40 > 0:38:45It's nice views outside, so we thought we'll have a look at it.
0:38:45 > 0:38:48Clearly, the caveat and reason was this whole thing
0:38:48 > 0:38:52about "did need some fairly major structural remedial works".
0:38:52 > 0:38:55We looked at the legal pack prior to it.
0:38:55 > 0:39:00The survey said it may need underpinning, it may not.
0:39:00 > 0:39:03In the meantime, I've had a firm have a look.
0:39:03 > 0:39:08They're saying we need a borehole done to see what the ground's like below.
0:39:08 > 0:39:12Based on that, we've had an estimate of about five grand to sort it.
0:39:12 > 0:39:15Five grand would buy you what, then?
0:39:15 > 0:39:18They'll come down, drill it, and any gaps as such,
0:39:18 > 0:39:22they inject with this foam that goes rock hard within a second.
0:39:22 > 0:39:25That's what we're hoping for.
0:39:25 > 0:39:29Did you contemplate, at all, not bothering with the underpinning?
0:39:29 > 0:39:34Yes, I must admit. The advice I'd been give was just to monitor it and see if it's still moving.
0:39:34 > 0:39:38If the cracks start getting bigger, it's still moving.
0:39:38 > 0:39:43But we don't want to sit on the property for six month waiting for that.
0:39:43 > 0:39:49So we thought if we made it right for the cost it's going to be, it'll solve that problem initially.
0:39:51 > 0:39:55'It sounds like Martin has a plan of attack to fix the cracks.
0:39:55 > 0:40:00'I hope the costs don't spiral when they finally get cracking.'
0:40:00 > 0:40:03How did you get into property developing?
0:40:03 > 0:40:07About ten years ago, we bought a property, started doing it up,
0:40:07 > 0:40:10and then we've done one to two a year?
0:40:10 > 0:40:13Maybe one a year from about then.
0:40:13 > 0:40:15This is number nine now.
0:40:15 > 0:40:19Then we've done two others that we've just bought and sold on.
0:40:19 > 0:40:22- So, yeah.- It's gone well? - It's going OK.
0:40:22 > 0:40:24Going OK, yeah.
0:40:24 > 0:40:27- Who does the work? - Martin does most of the work.
0:40:27 > 0:40:30I do the decorating side of it.
0:40:30 > 0:40:34We'll get a few people in to do the bits and pieces.
0:40:34 > 0:40:37Tell me what you plan to do.
0:40:37 > 0:40:41There's walls needing removing in the kitchen, built-in cupboards.
0:40:41 > 0:40:46The bathroom upstairs. We need to move a wall to get a toilet in.
0:40:46 > 0:40:48Rewire, replumb, new bathroom, new kitchen,
0:40:48 > 0:40:52redecorate, recarpet and just make good from there, really.
0:40:55 > 0:40:58'That's an extensive programme of work.
0:40:58 > 0:41:03'The couple hope they can complete their renovation for only £19,000,
0:41:03 > 0:41:06'including the underpinning, within six months.'
0:41:09 > 0:41:13What's next on the agenda after you've sorted this place out?
0:41:13 > 0:41:18- BOTH LAUGH - Well, I'm still looking for our own home!- What?
0:41:18 > 0:41:21We sold ours last May, our home.
0:41:21 > 0:41:26We're living in rented accommodation at the moment, so we need to find somewhere to live!
0:41:26 > 0:41:29- Oh, wow! - We could do with doing that.
0:41:29 > 0:41:32If not, we'll find another one and do it again.
0:41:32 > 0:41:35- Congratulations. - Thank you very much.- Thank you.
0:41:35 > 0:41:38- Look forward to seeing how you get on. - BOTH LAUGH
0:41:42 > 0:41:47So, have Martin and Diane solved the prickly problem
0:41:47 > 0:41:50of the subsidence in this property?
0:41:50 > 0:41:53Are they making the right decisions? I think they probably are.
0:41:53 > 0:41:57Still, once you start digging down, you don't know what you might find.
0:41:57 > 0:42:00You can find out later in the show.
0:42:02 > 0:42:08They say time is a great healer, but it can also be an enemy if you're up against a deadline.
0:42:08 > 0:42:12- What has happened to those properties?- It's time to find out.
0:42:12 > 0:42:17'Back to the Dorset conservation village of Charlton Marshall.
0:42:18 > 0:42:23'This semi-detached property used to be a clubhouse for labourers.
0:42:23 > 0:42:27'The club room at the front was huge, but housed a bouncy mezzanine.
0:42:27 > 0:42:31'Friends Phil and Natalie bought it for £210,000
0:42:31 > 0:42:34'as a joint development project.'
0:42:35 > 0:42:38Guys, do you think this is going to work well as a team effort?
0:42:38 > 0:42:40Yeah. It'll be fine.
0:42:40 > 0:42:43Yeah, we tend to think quite similarly.
0:42:43 > 0:42:48It might not be exactly the same plans, but the ideas that we're trying to achieve are very similar.
0:42:48 > 0:42:52On the colour coordination, I'll definitely be backing down.
0:42:52 > 0:42:54LAUGHING: If you saw my house, you'd know why.
0:42:55 > 0:42:58'But it's not Phil's house we're here to see.
0:42:58 > 0:43:01'One year, ten and a half months later,
0:43:01 > 0:43:06'this former labourers' clubhouse has certainly had some hard graft put into it.
0:43:08 > 0:43:12'Look at what Natalie and Phil have achieved at the back!
0:43:12 > 0:43:16'The former sitting room has been opened up into a beautiful kitchen.
0:43:20 > 0:43:22'I love the central island,
0:43:22 > 0:43:26'the lighting and quality fittings down both sides.
0:43:26 > 0:43:31'The layout change really works, as Natalie explains.'
0:43:31 > 0:43:36In here, it was just a sitting room and a toilet and a hallway.
0:43:36 > 0:43:40We knocked down all the walls, made it into one big kitchen.
0:43:40 > 0:43:44There was a window there that got changed into sliding patio doors.
0:43:44 > 0:43:48The kitchen floor will continue outside into a little patio.
0:43:48 > 0:43:51The kitchen cabinets and work tops came from different places
0:43:51 > 0:43:56to try and get a higher quality kitchen at a cheaper price.
0:43:56 > 0:43:59And I'm really pleased with how it's turned out.
0:44:00 > 0:44:05'There's a utility room and cloakroom next to the kitchen,
0:44:05 > 0:44:08'in what was the original kitchen area.
0:44:08 > 0:44:12'At the front, I'm delighted that the former meeting room
0:44:12 > 0:44:15'has managed to retain that wonderful open space.
0:44:16 > 0:44:19'Natalie and Phil removed the bouncy mezzanine
0:44:19 > 0:44:23'and created an entirely new and full first floor.
0:44:25 > 0:44:29'There are now three bedrooms at the front of the house,
0:44:29 > 0:44:31'two with en suites.
0:44:33 > 0:44:39'One of the former rear bedrooms is now this wonderful luxury bathroom.
0:44:45 > 0:44:47'The other rear bedroom and former bathroom
0:44:47 > 0:44:51'are now this magnificent master bedroom,
0:44:51 > 0:44:56'with its own en suite and exposed timbers, as Phil explains.'
0:44:57 > 0:45:00This room's the master bedroom,
0:45:00 > 0:45:02probably my favourite room in the place.
0:45:02 > 0:45:05The old bedroom was only about a third the size
0:45:05 > 0:45:07and had built-in cupboards.
0:45:07 > 0:45:10We ripped them out.
0:45:10 > 0:45:12That revealed a chimney and fireplace,
0:45:12 > 0:45:14which we wanted to keep on show.
0:45:14 > 0:45:19We used all the floorboards that we found throughout the house
0:45:19 > 0:45:21and relaid all that.
0:45:21 > 0:45:23We put an en suite to it as well.
0:45:23 > 0:45:26When it came together, it's my favourite room in the house.
0:45:27 > 0:45:30'This property really has come together well.
0:45:30 > 0:45:33'Every bit of space has been utilised.
0:45:33 > 0:45:35'There's even another room in the attic,
0:45:35 > 0:45:38'although it can't be classified as a bedroom
0:45:38 > 0:45:41'as it doesn't meet building regulations.
0:45:41 > 0:45:44'They would require a fire door to replace the internal oak door,
0:45:44 > 0:45:49'which they prefer to keep, as they've used oak throughout.
0:45:49 > 0:45:51'So were there any problems with the planners?'
0:45:51 > 0:45:56We had a couple of issues with planning for windows cos it's in the conservation area.
0:45:56 > 0:46:00They were just worried about what we were going to do to the house.
0:46:00 > 0:46:03I think we've kept as much character as possible.
0:46:03 > 0:46:08We spent a lot of time ageing things and trying to make it look older.
0:46:08 > 0:46:12I'm hoping that the flagstone floor, when we clean it up,
0:46:12 > 0:46:15will epitomise that when we come in.
0:46:17 > 0:46:22'Phil wasn't surprised they hit problems with a property this age.
0:46:22 > 0:46:25'Part of the kitchen floor was rotten, so had to be replaced.
0:46:25 > 0:46:28'And there was woodworm to treat.
0:46:28 > 0:46:31'There were jobs for specialists,
0:46:31 > 0:46:35'but Phil roped in his paintball centre staff whenever he could.'
0:46:35 > 0:46:39We'd find we finished a function at half three, four o'clock,
0:46:39 > 0:46:41and four of us coming down for an hour,
0:46:41 > 0:46:44it was amazing what we could achieve.
0:46:44 > 0:46:49'They've ended up with a fabulous property, but how much has it cost?
0:46:49 > 0:46:53'Did Natalie engineer some savings to their 60 to 70-grand budget?
0:46:53 > 0:46:56'Or was it splattered, like one of Phil's paintballs?'
0:46:56 > 0:47:00I think, by the time we finish, we'll have spent 115.
0:47:00 > 0:47:05We'll find out whether that was worthwhile and, if not, we'll find a new hobby.
0:47:05 > 0:47:10'That £115,000 spend on top of the 210 grand they paid at auction
0:47:10 > 0:47:14'makes their total investment 325,000.
0:47:14 > 0:47:16'Are they still looking to sell?'
0:47:16 > 0:47:19There's a good chance we may rent it now.
0:47:19 > 0:47:23Some of the lads that work for us are interested in renting it.
0:47:23 > 0:47:26Having been involved in it, they've fallen for it.
0:47:27 > 0:47:31'Time to hear what two local estate agents think of the conversion
0:47:31 > 0:47:34'of this former working men's clubhouse.'
0:47:34 > 0:47:37What I particularly like is the size of the kitchen.
0:47:37 > 0:47:41It's a large family kitchen-diner. You've got space to eat in there.
0:47:41 > 0:47:45I think it's stunning. It really is very impressive.
0:47:45 > 0:47:48They've done an amazing conversion of it.
0:47:48 > 0:47:53The standard and the quality of the bathroom and the en suite facilities
0:47:53 > 0:47:55is particularly high.
0:47:55 > 0:47:57'So, positive reactions, there.
0:47:57 > 0:48:00'How much could the property let for?'
0:48:00 > 0:48:04You'd be looking at about £1,200 to £1,500 per calendar month
0:48:04 > 0:48:06on a property like this.
0:48:06 > 0:48:12The rental that this would achieve would be between £1,200 and £1,600 per calendar month.
0:48:12 > 0:48:16'That's a potential yeild of around 4.5% to 6%.'
0:48:16 > 0:48:19That's in the region that we were thinking of.
0:48:19 > 0:48:22And the people that were interested in renting
0:48:22 > 0:48:27were expecting about 1,600, so, seems to tie up.
0:48:27 > 0:48:29'What about the resale value?
0:48:29 > 0:48:33'Could it be more than the £325,000 invested here?'
0:48:33 > 0:48:36A property of this calibre
0:48:36 > 0:48:41should achieve a price of around £395,000.
0:48:41 > 0:48:47I would recommend a marketing figure between £375,000 up to £400,000.
0:48:47 > 0:48:50'That valuation range would generate a gross profit
0:48:50 > 0:48:55'of between 50,000 and 75,000, before taxes and expenses.
0:48:55 > 0:48:59'Is that in line with their expectations?'
0:48:59 > 0:49:03Er, yes, that will have made it financially worthwhile, wouldn't it?
0:49:03 > 0:49:07Yeah, it's again pretty much in the region we were hoping for.
0:49:07 > 0:49:13'Well, friends Natalie and Phil have given this property a magical refurbishment.
0:49:13 > 0:49:16'Remember, it's their first joint investment project
0:49:16 > 0:49:19'and they've made it look pretty easy.'
0:49:19 > 0:49:22MUSIC: "Easy" by the Commodores
0:49:22 > 0:49:25'Can they see themselves working together again?'
0:49:25 > 0:49:30Yeah, I'm sure we'll do another one and I'm sure it'll be just as successful.
0:49:30 > 0:49:34- LAUGHING: I'm sure it'll be just as easy.- Yeah.
0:49:43 > 0:49:47'Earlier, we were in Bousteads Grassing near Carlisle,
0:49:47 > 0:49:51'where couple Martin and Diane nabbed this three-bed semi
0:49:51 > 0:49:54'at the auction for £51,000.
0:49:54 > 0:49:56'This is their ninth development,
0:49:56 > 0:50:02'so they weren't wearing rose-coloured spectacles when it came to the task ahead.'
0:50:02 > 0:50:04Tell me what you plan to do.
0:50:04 > 0:50:08There's walls needing removing in the kitchen, built-in cupboards.
0:50:08 > 0:50:12The bathroom upstairs, we'll need to move a wall to get a toilet in.
0:50:12 > 0:50:15Rewire, replumb, new bathroom, new kitchen.
0:50:15 > 0:50:19Redecorate, recarpet and just make good from there.
0:50:20 > 0:50:24'They had aimed for a six-month timescale.
0:50:24 > 0:50:28'It's eight and a half months on and they've just finished the work.
0:50:28 > 0:50:32'We've come back to see what they managed to make of this messy place.
0:50:47 > 0:50:50'It looks better the second you step inside,
0:50:50 > 0:50:54'especially as a wall is no longer the first thing you're faced with.
0:50:54 > 0:50:58'Elsewhere, the living room has been spruced up nicely.
0:50:59 > 0:51:04'As for the old dilapidated kitchen and ante or storage room?'
0:51:06 > 0:51:09This room has seen quite a lot of work, to be honest.
0:51:09 > 0:51:13There used to be a corridor along there, leading outside.
0:51:13 > 0:51:16This was a little store cupboard. We knocked these walls through.
0:51:16 > 0:51:20Back in the kitchen area, there were built-in cupboards.
0:51:20 > 0:51:25Knocked them out. Replastered and replaced plumbing and wiring.
0:51:25 > 0:51:29Put the French doors in. Really pleased with it. Looks good.
0:51:31 > 0:51:34'That goodness extends to the back garden,
0:51:34 > 0:51:36'which was overgrown and under-loved,
0:51:36 > 0:51:40'but now boasts a lovely lawn of fresh green grass.
0:51:40 > 0:51:43'Martin and Diane have made clever use of the size,
0:51:43 > 0:51:48'by making the rear area suitable for parking a couple of cars.
0:51:50 > 0:51:55'The main issue was that there was a potential problem with subsidence.'
0:51:55 > 0:52:00First of all, we got the guys down to do the borehole, find out what the ground was like.
0:52:00 > 0:52:03From that onwards, we contacted a builder.
0:52:03 > 0:52:05He got his structural engineer to have a look.
0:52:05 > 0:52:10He seemed to be pretty keen that he could concrete them back in. So that's what they've done.
0:52:10 > 0:52:13They dug around the foundations, poured in the concrete
0:52:13 > 0:52:15and that sorted the subsidence out.
0:52:15 > 0:52:19'Subsidence sorted with minimal stress.
0:52:19 > 0:52:23'If only the same could be said for the rest of the project!'
0:52:23 > 0:52:26- The biggest problem was... - The whole thing!- Yeah.
0:52:26 > 0:52:29To be honest, we did discover it was one thing after another.
0:52:29 > 0:52:33There was no damp course in the concrete floor so we had to do that.
0:52:33 > 0:52:36The concrete paths outside were lying on the damp course.
0:52:36 > 0:52:39We had to knock them up and redo them.
0:52:39 > 0:52:43These walls are load-bearing so, basically, putting lintels in,
0:52:43 > 0:52:48we had to take the joists out above, which meant we had to take the upstairs walls out as well.
0:52:48 > 0:52:53'Ah! The upstairs! Three bedrooms and one peculiarly plumbed bathroom.
0:52:53 > 0:52:58'I really do mean a BATHroom, as it had a sink, a bath and no loo.
0:52:58 > 0:53:00'But now!'
0:53:00 > 0:53:02MUSIC: "Make It Good" by A1
0:53:13 > 0:53:15There's been a lot of changes.
0:53:15 > 0:53:18All the internal walls have been moved.
0:53:18 > 0:53:21For the main reason, there was no toilet in the bathroom.
0:53:21 > 0:53:24We had to put a toilet in, obviously.
0:53:24 > 0:53:29We stole a bit off the back bedroom and the front bedroom to make the bathroom the size it is.
0:53:29 > 0:53:32We're really pleased with it all. It looks really good.
0:53:32 > 0:53:34End result's fantastic.
0:53:34 > 0:53:37'They've done a great job, but with the volume of work
0:53:37 > 0:53:41'added to the volume of problems they've had to deal with,
0:53:41 > 0:53:45'were they able to keep within their £19,000 budget?'
0:53:46 > 0:53:49Moneywise, it's just been very tight.
0:53:49 > 0:53:52Um... Obviously, we had...
0:53:52 > 0:53:55I don't know. Did we...? Sorry. Did we have a budget?
0:53:55 > 0:53:57'You sure did. Martin?'
0:53:57 > 0:54:00We're looking in the region of about 27,000.
0:54:00 > 0:54:05It has cost us more, but we've done more than we anticipated.
0:54:05 > 0:54:07We spent a lot more in the garden.
0:54:07 > 0:54:11We did spend more, but we've got a lot better house than we anticipated.
0:54:11 > 0:54:13'And not just here.
0:54:13 > 0:54:17'The couple have also, at last, purchased a property for themselves
0:54:17 > 0:54:20'and their two girls.'
0:54:20 > 0:54:24If we do another one, it'll be a long time away!
0:54:24 > 0:54:27Yeah. It'll be a flat, something easy!
0:54:27 > 0:54:32We'll concentrate on our own and the girls, then maybe think about doing another one.
0:54:32 > 0:54:38'They can't focus on their own house until they decide what to do with this one, though.
0:54:38 > 0:54:43'They tend to opt for rental, but are torn between that and selling this one.
0:54:43 > 0:54:46'Adding the £51,000 they paid for the property
0:54:46 > 0:54:52'to the £27,000 outlay on the work, they've spent a total of £78,000.
0:54:54 > 0:54:57'We invited two local estate agents to look around
0:54:57 > 0:54:59'and give us their thoughts.'
0:54:59 > 0:55:04My first thoughts are that it's a really good finish throughout.
0:55:04 > 0:55:07Nice layout with the dining-kitchen, the downstairs toilet,
0:55:07 > 0:55:11which is great for families, so it would suit lots of buyers.
0:55:11 > 0:55:14It's a very high-quality finish. There's literally nothing to do.
0:55:14 > 0:55:18People can walk in, put their sofa in and make a cup of tea.
0:55:18 > 0:55:21'But before we start putting the kettle on and feet up,
0:55:21 > 0:55:24'we've got to talk prices.
0:55:24 > 0:55:27'If Martin and Diane chose to let it, as they usually prefer,
0:55:27 > 0:55:31'what would be their estimated rental returns?'
0:55:32 > 0:55:36The property would let well, especially with three bedrooms.
0:55:36 > 0:55:43Three bedrooms are more in demand and you would expect to achieve around £450 per calendar month.
0:55:43 > 0:55:48For a property like this in this area, you'd be looking in the region of £450 per calendar month.
0:55:48 > 0:55:52We'd expect a little bit more. We'd be marketing at 495, at least.
0:55:52 > 0:55:56'With the total outlay here being 78,000,
0:55:56 > 0:55:58'a £450 per calendar month rental
0:55:58 > 0:56:01'would mean a healthy yield of nearly 7%.
0:56:01 > 0:56:06'But what if they decide to sell instead?'
0:56:06 > 0:56:09I would value this property at £110,000.
0:56:09 > 0:56:13I would market this property at around £129,000.
0:56:13 > 0:56:18- Yeah.- Values are really good. Bit of a discrepancy between the two.
0:56:18 > 0:56:21But, yeah, it's kind of what we were expecting.
0:56:21 > 0:56:27'A pre-tax profit of between £32,000 and £51,000 could be very tempting.
0:56:27 > 0:56:31'But with this one costing more and taking longer than expected,
0:56:31 > 0:56:35'has this put them off, or will they be tempted to renovate in future?'
0:56:35 > 0:56:38We'll keep looking, but... LAUGHS
0:56:38 > 0:56:42- At the moment, you know, we'll have a bit of a rest.- Yeah.
0:56:44 > 0:56:50That's it for now. We'll be back next time with more action from auction rooms around the country.
0:56:50 > 0:56:54- Make sure you're watching Homes Under The Hammer. - See you then.- Goodbye.
0:56:58 > 0:57:02Subtitles by Red Bee Media Ltd
0:57:02 > 0:57:05E-mail subtitling@bbc.co.uk