Episode 68 Homes Under the Hammer

-Hello and welcome to the programme.

-They say every house tells a story

and we have certainly found that to be true.

There are always tales to tell and secrets to uncover

when you buy your home under the hammer.

At auction, properties are bought on a buyer beware basis,

so it's up to you to check everything out before you bid.

So, did today's buyers get lucky with their purchases

or were they in for some nasty surprises? Here's what they bought.

I'm in a Cardiff maisonette that's not got much up top.

Oops! The ceiling's down in the bedroom.

A lot of rubble on the floor.

In this mixed use property in Lanark, I'm thinking, if the shoe fits...?

There you go. Size six, if you're interested. They are available.

And in this mews house in Devon,

a relaxing break is the order of the day.

A towel and a Devon cream tea, please.

All these properties were sold at auction.

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

when they went under the hammer.

I'm in Cardiff, in an area called Lakeside

and no prizes for guessing why.

You're only three miles from the city centre here

but it's got more of a suburban, almost countryside feel,

with beautiful Roath Park at its heart.

Perfect for enjoying the slightly sunnier days!

The question is, will property in Lakeside be a bright prospect?

# Didn't it rain children?

# Rain, oh my Lord. #

Roath Park in this Cardiff suburb really is fantastic,

despite today's weather.

The area is home to the Metropolitan University campus

and the Lakeside is a popular area for families

with all these open spaces.

To be honest, anywhere within striking distance of that beautiful park

and all those facilities would get me reaching for my wallet.

And here, you are only a ten-minute walk away.

The property in this area is undoubtedly less attractive on first glance

but the road, it's nice enough,

and the guide price for this two-bedroom maisonette, well, £89,000.

I think it's looking lovely.

What makes a flat a maisonette?

Usually, it's split over two floors or as in this case,

it has its own private stairs and access.

This maisonette was built when flares were big and so were platform shoes.

The 1970s.

# Get it on, bang a gong Get it on. #

The property occupies all the first floor on the right-hand side of the building

and does have its own little bit of garden.

It doesn't offer much privacy but with any flat,

outside space is a bonus.

Not the warmest of welcomes. It is in a bit of a state. It really is.

You can see somebody has started to take the tiles off in the bathroom.

All of that will need to be completely redone.

You have got a lot of space. It is quite airy.

Oops! The ceiling is down in the bedroom. A lot of rubble on the floor.

But again, lots of light and a nice big room. But a storage heater.

Make sure you note that when you do viewings

because to install central heating in a property like this

really can be costly, and it depends

whether whoever buys this wants to have storage heaters

and whether there is even gas central heating in this building.

So that is something to think about.

Kitchen. Not a huge space but plenty.

Really nice size second bedroom there.

And the lounge through here. Now, I've just had an idea.

I can hear the old brain whirring. Come with me.

What about if you swap these two rooms over?

So you have that as your second bedroom and you have this room here as the kitchen.

You could put all the units down one end,

you could take this wall out and then you would have an amazing,

really big, double aspect windows, loads of space,

loads of light, sofas down here, telly, nice big table,

all your units down the other end. I think that would really work.

Wouldn't that be a better way to live?

# Baby please, please

# Don't leave me this way. #

That's how I see this property but then again,

not everyone likes open plan with cooking smells

and dirty dishes in the living areas.

More importantly, would it make financial sense?

Some flats on the estate have gone up into the loft

and in this case, access has been made easy for a quick peek.

I don't think there would be masses of headroom so again,

it may not be worth the cost. Another note of caution.

The maisonette is leasehold so you might not even be allowed to use it.

It's an interesting one, this.

Maisonettes often appeal to first-time buyers,

young couples, sharers even.

But here in Lakeside, it's fully family-fied.

So could selling or renting this place be a problem?

No, I don't think you need to worry.

I still think it would suit a small family just starting out

who are prepared to sacrifice the space of a house

for the desirable and toddler friendly location.

A compromise maybe,

and inevitably they would have to move on as the family grew.

But always remember, when viewing property,

if you've got the location right, it's hard to go wrong

and never underestimate the power of a postcode.

If families want to live in an area for schools or amenities,

they will compromise on space.

What does a local estate agent make of this first floor maisonette,

guided at £89,000?

It's a very spacious apartment.

My first impression is that you can do a lot with the design.

In my opinion, the amount of money that you would need to spend

to refurbish this apartment is probably in the region

of 20 to 25,000.

It is in a particularly good zone so it's probably worthwhile spending that little bit more,

getting the quality, which will then get a good enhancement in price on resale value.

Knowing the area so well, what does he think the resale value might be?

In my opinion, the property fully renovated to a good standard

would be worth in the region of £145,000.

With that school up the road and university around the corner,

what could the property attract if it was put on the rental market?

In my opinion, the amount of rent this could achieve per calendar month is £625 to £650.

Small, yes, but practical, and in a highly desirable location.

For that reason alone,

I am sure there was plenty of interest at the auction.

On to lot number 38.

Looking for 85 to get things started, ladies and gentlemen.

Who's got 80 then? 80, thank you. 80,000 is bid. I've got 80.

And one, I am looking for. One, thank you. 81,000, I've got. Two?

82,000? 82,000. I'm looking for three. 83,000. Four. 84,000.

Who's going to put me at 85? Five. 85,000 is bid. 86, thank you. 86,000.

I'm looking for seven. 86,000 I have, thank you very much. 87.

88, thank you. I'm looking for 89. 89. 90, sir.

I'm looking for 90 and one. And two. 92 is behind you, madam.

So 93, thank you. 94, sir. 94. 95, I'm looking for off you, madam.

95, thank you. 96, I'm looking for off you, sir.

95, madam, I have off you. 95 is in the market. Any advance? 96.

Thank you, madam. 96.

97. 97,000. 97,000. Any increase? Be quick. 97,000.

Madam, 97,000.

That successful bid of 97,000, £8,000 over the guide price,

was made by Cardiff local, Rhian.

# Art for art's sake

# Money for God's sake. #

She runs an art gallery in Cardiff and renovates properties as a sideline.

Rhian, congratulations. Well done.

Tell me, did you desperately want to buy this at auction? Were you happy when the hammer went down?

I was thrilled.

I had only actually come back from holiday the day before

so I hadn't actually been inside the property.

But I did a bit of research when I was away on holiday.

I had my computer with me.

I had set a ceiling price for the property

and I got it just underneath the price.

Tell me your experience. How many times have you done this?

-I've probably done it about 30 times, I would think.

-Really?

-Yes.

-So you're an old hand. You've bought and sold many times.

-Yes.

I've bought and done up and kept and I've bought and done up and sold.

-What else to you do?

-I've actually got an art gallery.

-Have you?

-Yes.

A fine art gallery in the centre of Cardiff.

# Art for art's sake

# Money for God's sake. #

From fine art to finding the beauty in a rundown flat,

I'm sure her day job gives her an eye for renovations and the

confidence just to go for it, even though she didn't see it pre-auction.

You did all that research on your computer

but you didn't have a chance to come in and have a look around.

-Did that worry you?

-Not really, no.

When I set a budget for the work that I thought would need to be done,

I set a budget that really covered all potential eventualities

and as it turned out, I'm probably going to need the full budget.

Absolutely. What about the fact that it doesn't have gas central heating?

-Straight away, that takes such a big chunk of your budget.

-It's heating.

It's going to have to be rewired. Totally new kitchen, new bathroom.

Floors and ceilings as well.

That was the other surprise when I when came to see the property

on the day, after I'd bought it, there were no ceilings.

They've all gone!

The thing I've learnt along the way,

if you do up a two-bedroom flat or a four-bedroom flat

or even a very small house, it can cost the same as a two-bedroom flat

because you've still got to put in a new kitchen, new bathroom,

all the heating, all the bits and pieces.

What's good about this place is that it's solid.

An older property, and I have done older properties in the past,

you can potentially have problems with the quality of the plaster

and then you're looking at replastering a lot of the rooms as well.

-There is no problem with damp here either.

-So you have got good walls.

Yes. Very solid and very solid floors as well.

So how much have you set aside in total?

-In total, I would like to bring it in at about 15,000.

-Really?

I don't know what you think of this idea,

but while I was here, I was thinking, how would I like to live?

What about if you knock this wall down

and swap the kitchen for the second bedroom

so you have a nice, big, open plan kitchen, dining, living area.

I know you get a smaller second bedroom but you could still get a double bed in there.

Then you've just got the double aspect, big, light, spacious room.

That sounds really interesting, actually.

I think a couple of considerations is about what kind of people

are actually going to be interested in buying a property here.

So I need to factor that in as well.

Is this kind of location going to appeal to a very young couple?

I don't think it's going to appeal to an older couple

-because you've got a lot of stairs.

-Maybe.

The other consideration as well is... That is a supporting wall.

So I'd have to put in a beam there and that would add considerably to the cost.

It would, but I really believe it would give you the wow factor.

You have given me something to think about, actually.

Maybe there is a way around, by not knocking the whole wall down

but we might be able to do something.

I quite like the idea of swapping the two around.

So you've got that artistic, creative flair,

so what are we going to expect to see when we come back?

It certainly won't be plain white walls.

I don't mean very loud colours

but something subtle that accentuates the space.

I'm excited to see the outcome. Good luck with this property. I know you know what you're doing.

Thanks ever so much. I appreciate it.

So no plain white walls for Rhian. That is music to my ears.

A bit of creativity goes a long way when you are renovating property.

But will she swap the kitchen and the second bedroom?

And will she stick to 15 grand?

You can find out what she does later on in the programme.

I'm in Lanark, situated between the tranquillity

of the Southern Uplands

and the more frenetic industrial belt of Scotland.

It's been an important market town since David I

made it a royal burgh in 1140.

Nowadays, its main focus is agriculture,

with regular livestock auctions on the outskirts of town.

Well, the property's right on the high street

in one of these wonderful old buildings.

100 years ago, it was a draper's and general outfitter's,

which, according to an advert, in 1898,

was under most efficient management.

Well, after 40 years as a shoe shop,

it closed and it was obviously recently up for auction

with a guide price of £75-80,000,

which given that it includes a two-bedroom flat upstairs,

sounds worthy of investigation.

The maisonette flat on the first and second floor

has been let since the 1970s, so we can't gain access today.

If the tired and tatty appearance of the ground floor frontage

is anything to go by, this is retail in need of some therapy.

Oh, wow!

A creaky door, to boot. This is wonderful.

It's got a real olde-worlde feel to it

and look at the height of the ceilings!

You've got cornicing... very unusual.

Yes, you can imagine, in days gone by,

these shelves stacked high with shoes, or jumpers or whatever.

But in terms of a commercial space, a good-sized floor area

and that's what you need. Great stuff!

# You're window shopping

# Just window shopping... #

I can't see that this shop has changed much since it was built.

As far as the ground floor goes, this is pretty much it,

with a small storage area at the back.

And a solid-looking safe for the day's takings.

The first floor is split, with the back of the building

belonging to that flat on the top floor,

which has been let to the same tenant since the 1970s.

We can access the front portion of the building, though.

Well, upstairs there are staff facilities.

You've got a loo, a kitchen and a storage area,

a few remnants of what the shop once was, a shoe shop.

There you go, a pair of size 6, if you're interested.

They are available.

But here, a really nice room, look at this,

lots of light pouring in through the window.

Now we are on a road, obviously the high street there,

so, there's quite a bit of noise, but it's a nice-sized space.

On the face of it, the property's not in terrible condition. However,

I have discovered some signs of potential problems.

There's a bit of a damp patch on the ceiling there.

This wall has got all sorts of problems, and it's caused

real issues with the surrounds of the window there.

It's become rotten. My thoughts are, a problem with the roof,

either historic or current.

Whatever, it needs to be checked out.

I love this space, it's got a really great feeling to it,

but this accommodation and the old shoe shop

are in a conservation area,

so, any work will be monitored by the council

and will definitely not be a..."shoe-in".

Restoration and replication will be the name of the game,

not rip out and replace.

That will get the tills ringing, as will the roof repair

and then the refurbishment. Then there's that rented flat

which has the back of this first floor and the top floor.

It does raise a few issues like access.

The tenants use this rear stairway,

rather than traipsing through the shop.

At the top of the stairs, the flat's front door

is next to another storage area.

The layout across the floors is not ideal for either party,

I would have thought.

However, in these days of trouble on the high street,

this flat does yield an income.

Right, so a sitting tenant, conservation area,

roof problems, access difficulties, lack of parking and a weird layout.

Does that guide price of £75-80,000

start to look a little less attractive?

We asked a local estate agent along for his opinion.

It is difficult to get planning permission in Lanark at times

because we're in a conservation area.

You can only do certain things to the property.

Although for sale in one lot, I'd like to find out

what it's worth if it was refurbished and split into the shop and the flat.

Splitting the property down, we've got the retail outlet down below

and part of the second floor. That in itself would be worth

about £60,000 in the current climate.

The flat above, depending again on the condition of the flat,

that should go for around about £50-60,000.

What about rental values for this hot spot on the high street?

Rental values on the properties, a commercial unit would get

somewhere in the region of £9-10,000 per annum.

The flat itself upstairs for residential purposes,

you're looking at something about £350 per month.

Well, with Scotland, like everywhere else,

being affected by the recession and small businesses more so,

is now the time to invest in a place like this that needs work?

Well, it's got a good location,

but that didn't help the business that was here before survive.

So, I'm not so sure. However,

I think the flat upstairs, well, that reduces the risk

and I think, on balance, makes it a good one to go for.

Let's see who agreed with me at the auction...

Lot 21.

This is retail premises on the ground and part of the first floor.

40, to get me going.

Thank you, sir, standing up at the back. £40,000.

42 anywhere? 42,

44, 44,

46, 46, 48, 48, 50. 2?

The bids came thick and fast

-and we rejoined the auction at £90,000.

-90.

90, sir? 90. 92. 94.

96.

Take one if it helps you, 95.

95 down the front, 96, sir,

96, 97,

98, 99,

100.

Shaking his head, it's with you, sir, at 99,000, down at the front.

100. Oh, he's back in again. At 100.

101. 101. 102, 102.

I've got 102 with the gentleman in the pink shirt,

looking for 103, are we all done?

At £102,000, going once,

twice, third and final time, £102,000.

Gentleman on the aisle...

The successful purchaser in that long bidding bout was Robert.

His daughter, Gill, who's hidden from view, was with him.

They paid £102,000 to add this to their family business premises.

The two clothing shops they already own on Lanark High Street,

flank this auction property.

# We'll go shopping not too far... #

So, why did the family want another shop?

I went back to the property, to meet brother and sister Gill and Alistair, to find out.

-Gill, Alistair, lovely to meet you both.

-You too.

-Congratulations.

-Thank you very much.

Tell me why you wanted to buy this old shop, and the flat?

Well, we've got both a menswear shop on one side,

a ladies' wear shop on the other side,

so it made sense to buy the one in the middle.

We own property at the back as well,

-so it felt right that this had to be ours.

-You own Lanark, basically!

Not quite own Lanark,

but it made sense to go to auction to see what price it went for.

Tell me more about your shops, how long have they been here?

We've been in Lanark since 1970.

But we're actually a Carluke-based company,

-we've been on the go since the 1870s.

-Wow.

-It was you and was it your father at the auction?

-Yeah.

He was doing the bidding.

-Very nerve-wracking.

-Was it?

When my dad was doing the bidding,

I was sitting, kind of looking around.

And I thought, "We've got to get it, got to get it."

And got that twitchy way, got to get it.

So, when the hammer went down, I really felt like, whoo!

# Let's go shopping... #

No wonder Gill was excited.

This is an opportunity for them to secure their business' future.

It's just lovely that a family-run business is helping to keep the high street going in this town.

Presumably, one of the big things is you now have control over what goes on here?

Aye, that's what we felt. With having shops either side,

it just gives us a degree of certainty, looking into the future, we could then plan out.

It gives us more options in terms of what type of shop to open here.

Do we expand from next door?

It gives us options that perhaps we might not have had before.

Obviously, these are tough times.

-Are you confident you can make a success of it?

-We certainly hope so.

Recently, we have closed down a number of shops.

But what we are trying to do is concentrate where we feel there is a future.

And Lanark being a market town,

we feel there's hopefully enough customers here to make a go of it.

So what we're trying to do is invest for the future.

Tell me about the plans you've got for the place.

We have a few options.

We can knock in the wall to our other property,

and extend the menswear.

Or, we can keep it as a separate shop, and maybe do shoes.

We have been asked quite a lot, both menswear and ladies' wear, if we do shoes.

-So...

-That's one option anyway.

What are the other options?

We've got a classic side next door

so perhaps we could have a more directional shop, maybe for the younger man.

Perhaps, with the ladies' wear shop next door,

we could even have a younger ladies side.

So it could be a store for our younger customer.

There isn't an option in those options

for somebody else to come in here and run the shop?

No, whatever we're going to do, we'll do it ourselves.

-You're definite about that, aren't you?

-Absolutely!

So, from outside, how long is it going to be before we see

your name above the door, and a restoration, I presume, outside?

We've already had a chap looking at the roof,

there's problems with water coming in just now.

-That is what's created the damp upstairs?

-Yeah.

There's a problem with the flat roof,

Scotland's not really the best climate for flat roofs, as you know.

So it's created its own problems.

Water finds its way in. But hopefully we'll have that re-roofed,

and that should sort out the damp problem.

How much do you think it will cost to get it into a place

where I can come in here and buy my shoes?

Well... Through experience...

We did a conversion five years ago.

Whatever we set down, it cost twice as much,

it took twice as long. MARTIN LAUGHS

So we're not actually anticipating, we've not got a ballpark in mind.

What we do anticipate is that, with an old property,

when you start taking things off the wall, you discover more problems.

We wouldn't like to pinpoint what it will cost, but we know it'll be a lot.

-Somewhere between £20,000 and £50,000 probably.

-Yeah.

Listen, good luck. I realise this is not just a property,

-it's a milestone in the business for you.

-It is, yeah.

The very best, we look forward to seeing how you get on.

-Thank you.

-Thank you.

I'm delighted that this place has fallen into the hands of

a small, family-run business, as it was all those years ago.

I hope it doesn't cost twice as much

and take twice as long to sort it out.

But then, actually, starting any new business is not easy.

So, you can find out how they get on, later in the show.

Coming up, this mews house in Devon exceeds all expectations.

A bit of a find, this one.

See, not all auction properties are in a right old state.

Has Alistair's learning experience

on this renovation project in Lanark been a fun one?

There's been parts of this I've really enjoyed.

I've certainly made plenty of mistakes along the way.

But first, in Cardiff, could Rhian be set to sell?

Anything above £140,000 would certainly tempt me.

Earlier we were in Cardiff, where we met gallery owner Rhian.

She's bought and done up around 30 properties before,

so is no stranger to renovation.

This time, she purchased this maisonette at auction for £97,000.

Did you desperately want to buy this at auction?

-Were you happy when the hammer went down?

-I was thrilled.

I'd come back from holiday the day before, so I hadn't actually been inside the property.

But, I did a bit of research when I was away on holiday.

I had my computer with me.

I'd set a ceiling price for the property,

and I got it just underneath the price.

So her ceiling price wasn't an issue.

But the ceilings were.

Or, should I say, lack of them?

The property was pretty run-down last time I saw it.

Now, we're back, 15 weeks later,

to see if Rhian's taken it from messy, to marvellous.

Rhian's artistic eye has certainly come into play here.

Even the front door looks a lot more welcoming.

I'd been keen to see the layout changed here,

turning the kitchen into the bedroom,

and making an open-plan kitchen-living area.

But Rhian decided to keep the rooms as they were.

Lucy came up with some great ideas,

and I did give some thought to her suggestions.

There were some issues in terms of structural changes.

And the cost of actually implementing those,

it was actually quite prohibitive, really.

As Rhian essentially had to start from scratch,

changing the rooms around wouldn't have been cheap, I admit.

And perhaps better suited to someone who planned to live here.

So, how did her budget pan out?

I set it at around £15,000.

The reality is that we did probably spend about £3,000-4,000 more.

A few thousand over,

but I think the money has been well spent,

particularly the £4,500 she spent on this stunning new kitchen.

I'm really pleased with the way the kitchen has turned out.

My initial plans were just to put in basic appliances.

We have put in a washing machine.

There's an integrated dishwasher.

And we've also put a fridge-freezer in as well.

It was a bit of a challenge really, deciding the look for the kitchen.

Part of that challenge was really about trying to decide

what type of person would want to buy this property.

It was important to choose a style

that would appeal to a wide range of people.

When you renovate a property with a view to selling or letting,

it's important to try and make it appeal to as wide an audience as possible.

It's amazing how many people can be turned off

just by the colour of a wall.

I think Rhian has struck a great balance here.

It's not the standard magnolia you find in newly-decorated properties,

but feels homely, without feeling like it's already done to somebody else's taste.

And I'm not the only one who's happy here.

I am really pleased with the way it's turned out.

Obviously, along the way,

I've probably changed my mind on a couple of things.

But it's essentially how I imagined it would look.

Rhian had aimed to do the work here in less than six weeks.

But the job took closer to ten, mostly thanks to some bad weather

interfering with essential work needed to the roof.

Now the project is complete, what next?

Initially, my thoughts had been that we would rent the property out,

though I will be interested to hear what the agents have got to say

in terms of valuation.

To be tempted to sell it,

I think anything above £140,000 would certainly tempt me.

The property cost £97,000 at the auction.

Then about £19,000 has been spent on the work,

bringing Rhian's total outlay to £116,000.

She's unsure which way to go with it.

We've invited two local estate agents round

to see what they reckon.

First impressions, coming back, is what a transformation.

It's got a lovely wow factor as it were,

and we've got ceilings this time, which is great.

The presentation is to a high standard.

Good quality carpets,

refurbished kitchen and bathroom, again, to high standards.

The overall feel is, yep, I want this one.

First impressions of the property are very good.

It's a light, airy flat.

A very nice kitchen done to a very high standard.

They've obviously spent quite a bit of money on it.

But I think it will pay dividends when it comes to resale.

If she opts to go with her original plan of renting this out,

what sort of return could she expect?

In my opinion, this particular property, rented,

would achieve £650 per calendar month.

Rental income on this property would be

between £650-£700 per calendar month.

Oh, gosh! Now, that does sound really good.

Very good indeed. I was expecting more the £600 mark, actually.

Those estimates would give a rental yield of between 6-7%.

Rhian did say she might be tempted to sell

if the property could reach over £140,000.

The burning question is,

do these estate agents think it can?

I would suggest asking £150,000

with a view of achieving offers over £145,000.

We'd look to achieve between £145,000-150,000.

Gosh, that's fantastic.

I was hoping that it might reach £140,000,

but to exceed that, that now gives me a bit of a dilemma in terms of

whether I rent, or whether I actually go for the sale.

Gosh, that's fantastic.

With her £116,000 spend on the property,

she could be looking at a sale profit of between £29,000-34,000,

minus tax and expenses.

So, Rhian has a lot to think about, and the potential returns here

aren't the only thing making her smile about this renovation.

It's been great. I have done a few before.

And each one is different, and you learn something new each time.

So, yeah, I have enjoyed it.

A few challenges along the way,

but it hasn't put me off doing another one.

Welcome to Kennford,

or as it's nicknamed, the Happy Valley of Kenn, in Devon.

It offers a very tasty slice of country life,

with gorgeous fields,

local pubs, shops,

and some beautiful thatched cottages.

Plus, if you want country life, with a slice of city on the side,

it's not far from the city of Exeter.

It's all pretty idyllic,

and would be even more so if not for today's weather.

It would take more than rain

to dampen my spirits about this place, though.

It's a bit of a rainy day, but ten minutes outside Exeter,

and you're in real Devon countryside.

And very lovely it is too.

Kennford has got pretty much everything you need.

A pub, a school, a farm shop, there's even an ice cream parlour

but maybe that's just on my list of must-haves!

The house itself, tucked away in this little mews,

two bedrooms, at a guide price of £125,000.

Let's take a look.

-HE EXHALES

-Into the dry.

Let's hope that continues throughout the house,

no damp, always a good thing.

Other than the wet on the floor from me.

Erm, but, straightaway, a little interesting entrance area,

especially because you've got this sort of serving hatch.

Now, clearly, this is to throw light into this part of this ground floor.

It's kind of unusual, isn't it?

Er... Towel, and a Devon cream tea, please!

But...

moving into this side.

I'm beginning to think this is actually in quite good condition.

The kitchen, not exactly brand new,

but it's a nice space, pretty well-equipped.

White goods have been left, which is good.

And it's pretty serviceable as it is.

A bit of space there for your kitchen table.

Then, back through here, into the main living area.

You've got this open-plan design, with the kitchen there,

then this large living area.

Nice to have the open fire.

In terms of this design, you've got this corridor

which will be naturally created from the door,

into and up through the bedrooms.

That gives you a problem when it comes to furniture.

So, it's not ideal.

But, at least the fact it's open-plan

does give it a really nice, open feel.

So, yeah, you certainly can't complain about the condition.

Upstairs, you can't complain about the character either,

with all these lovely beams.

There's a decent-sized double bedroom,

with some, love them or loathe them, built-in wardrobes.

Unfortunately, there's a tiny single at the back,

which I think is impossibly small, especially if, call me crazy,

you want to fit a bed in the bedroom.

# Size matters Size matters... #

However, the landing is probably bigger than it needs to be,

so there's some potential for rejigging here.

Or, I've got another idea to address size issues up here.

So that second bedroom, a real disappointment then.

What could you possibly do?

The bathroom, conversely, is actually a really nice size.

And I think you could

quite legitimately steal a little bit of space from in here.

This is only a stud partition wall.

So that could come out.

Move it even just a few feet, maybe half a metre this way.

You'd still have a half-decent-sized bathroom,

get a bath in there instead of a walk-in shower.

Up here, there's also a very large cupboard

with the water storage tank there.

Maybe consider putting a combination boiler in.

At the moment, it's just got storage radiators,

and obviously an immersion heater to create your water.

That would then free up this space.

So your bathroom would still be a decent size.

And you would increase the size of that second bedroom. Job done!

So that's a couple of my favourite options for upstairs.

Although the proportions do suggest a limited market

for this little mews house.

Downside number two, the only outside space is communal.

But none of that means it doesn't have investment potential.

One thing you might want to consider for this place

is renting it out for holiday lets. You're at the bottom of the M5,

so you've got good transport links.

A nice little village surrounded by countryside, that's good.

You're not on the coast,

so you won't get the same rental figures you would on the coast.

But still, £550 a week or so, something worth considering.

It's always a good idea to mull over every option.

We asked a local estate agent what she thought of this country pad,

guided at £125,000.

My first impression of the property was probably, a little bit rundown,

needs a bit of work doing to it.

But I think it's got quite good space here.

You've got a good-sized bathroom.

The bedrooms are probably a little bit on the small side.

But you've got a good living area downstairs.

Could it appeal to holidaymakers?

I think it could work as a holiday let.

It's a really good location. A lot of people aspire to be in this area.

So yeah, it would work definitely.

What about the sales and rental values?

If you were to do it up and bring it into the 21st century,

probably be worth between £140,000-150,000.

If you were to rent it out, it would achieve £800 per calendar month.

Well, a bit of a find this one.

See, not all auction properties are in a right old state.

Pretty much move into this one as it is.

As a rental, as a place to live or for short-term holiday lets.

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

Lot 303, ladies and gentlemen.

Anyone like to start at guide, at 125?

125, thank you.

127, can we say?

125, 127, now?

127. 129?

127 here. 129?

129. 130?

130 here. 131?

Yeah, 131. 132?

One more? 132?

I'm going to call that for the first time, then.

£131,000.

We're very close, I can't sell it there.

Perhaps you'd like to have a quick chat with us afterwards,

or now if you wish?

Well, this is a little unusual.

The reserve wasn't met, so it didn't sell in the room.

However, the property was purchased afterwards by one of the bidders,

Robert, who bought the mews house for £130,000, with wife Sarah.

I met her and daughter Vicky, who was also at the auction,

to get the full story.

-Vicky, Sarah, great to meet you both. Congratulations.

-Thank you.

Tell me what happened there then, what happened after the auction?

Well, basically, we went as high as we could on our bidding up to 130.

But it didn't meet the reserve.

So, afterwards, they called us back into the back room,

we came to an agreement

and managed to get it for our highest bid basically, so 130.

-So you got it for what you would have bid...?

-Yeah.

-That was a bit of unnecessary messing around!

-Yes!

But quite a good result.

Yeah, definitely, yes. Very happy, yeah.

Brilliant. So tell me why you wanted to buy it.

-It was basically you and dad buying it.

-Yes.

It's local to us, we live just down the road.

We thought we could rent it out

-and have it as an investment for the future.

-OK.

What's your involvement in the whole thing, Vicky?

Really, just here to help out really with decorating it, that sort of thing.

I only work part-time at the moment, so I'm around to help out, really.

You were interested in the auction?

Yes, I've never been to an auction before,

so I thought, it's a bit different.

Keep her dad under control!

Definitely, yeah, stop him going over the budget.

At the auction, there was a little boy with you, your little boy?

-Yes, my little boy, yeah.

-What's his name?

-He's Jack.

He was getting very excited.

He was, he was actually bidding for us at one point, I think.

Luckily, the auctioneer didn't take his bid, thankfully!

But yeah, he was getting very involved.

Will you get him involved in some of the restoration?

-I'm hoping to get him to do some painting.

-Wow, how old is he?

He's a year and a half. So... It might be quite messy!

I'm all for getting into property at a young age but one and a half might be pushing it.

Although Jack seems to be enjoying investigating this place.

Robert and Sarah have purchased this as their first foray into the buy-to-let game.

Apart from being local to the area, what was it about the house that you liked?

It's a really sweet cottage and we love the beams and the way it has been done.

-And what tempted you into the world of buy-to-let?

-That's my husband.

He is always looking for something to do. He retired just over a year ago.

I think it's a project that he's keen to do.

-What are you going to do to the place? What's the plan?

-Decorate throughout.

Everything needs painting, the kitchen, the cabinets. We're hoping to just do the doors.

We need to do something with the bathroom. There's a couple of things upstairs we want to sort out.

-There's built-in cupboards that we'll probably take out.

-Right.

-Apart from that, just decorating.

The second bedroom is quite small

and it looks to me like somebody stole a bit of room to increase the size of the bathroom.

Is that something you're going to change?

Probably not. We want to spend as little as possible on work.

We just have to hope that it will be all right as a study or something like that.

I can't help thinking that they may be missing a trick in the rental market

if the second bedroom is only to be a study.

But the work required here is minimal so they can maximise their potential profit

by keeping costs as low as they can.

Although they'll do most of the cosmetic work themselves,

they'll bring in a plumber and electrician where necessary.

They aim to get everything done for £4,000 then let it out as soon as possible.

Robert needs to get cracking.

-My husband's retired so he's on a tight schedule, a month.

-A month?

-Is this the first of many or what?

-Who knows?

Hopefully not, but knowing her dad, it might be!

-Depends how successful this one is.

-Congratulations. Good luck with it.

-We look forward to seeing how you get on.

-Thank you.

It looks like this could be the start of a new family business for three generations,

although something tells me little Jack may be better at painting himself rather than the walls.

You can find out how it all turns out later in the show.

Transforming a property from a worn out shell into a home can been rewarding and profitable.

Did everything go to plan for our buyers today?

Let's go back and find out.

We're back in Lanark in Scotland.

Alistair and his sister, Gill, are the sixth generation in this family retail business.

Their father bought the shop that separated their ladies'

from their gents' wear on the town's high street.

This three-storey property consisted of shop space

and storage on the ground floor, then things got messy.

The building had a maisonette flat with first-floor living quarters

and bedrooms on the top floor.

The front of the first floor was storage for the shop below.

The building was in poor condition and in a conservation area

so the new owners were prepared for the worst, budget-wise.

How much do you think it'll cost to get it into a place where I can come in and buy shoes?

With an old property, when you start taking things off the wall, you discover more problems.

Nothing will be straightforward so we wouldn't like to pinpoint how much it will cost.

-So, somewhere between £20,000-50,000?

-Aye.

The family bought the property over three years ago for £102,000.

We've come back to see if it is high hopes on the high street or heaps of heartache for the family.

I might not be about to try on any shoes just yet

but they have managed to put their stamp on it.

As you can see, it is a work in progress.

So far, we have plastered the walls.

We've kept the original features of the cornicing.

It's an old building and we wanted to reflect that character. We are going to replace the windows

and through the back we've created a store.

The back area has been extended into the old pub, which the family also owns.

More on that later.

Although there's been minimal work to the shop,

their efforts have gone into the flat above.

That bay windowed room is now the living room of a smart new maisonette flat.

The storage room is now a smart kitchen.

The new flat has the upstairs bedrooms that have been switched from the original flat.

We couldn't get access when we were first here

but the tenants have moved out and the rooms in the flat have been given a new lease of life.

There's a master bedroom with a fabulous view of the high street from the balcony.

A good-sized second bedroom and a bathroom.

But getting to this stage has taken time and money.

At the front, we had a flat roof and water had got in over the years

so we took everything back to the bare bones, re-roofed it

and the result is we have had to replace a lot of wood internally.

We've worked from the top to the bottom, joists replaced, everything stripped back to the bare stone.

It's been a big job.

One of the most awkward things about this place was the lack of a proper entrance.

This has been solved by going around the side into the close and making a door there.

The business already owns this huge building which had originally been a pub.

The back of the auction property will now extend across into the pub,

creating a second two-bedroom flat with Velux windows to the rear.

The pub building will also provide much-needed storage space for the ground floor shop.

This project has become so big, I'd almost forgotten about that.

We expect the shop to be ready in the next couple of months. We've got the shopfront to replace.

We've got one or two things still to do with the storeroom at the back.

It's going to be a while yet before anyone's stepping out in new stilettos here.

And don't forget, we are three years on.

Developing two flats as well as business and storage space,

whilst also running a business, is a huge undertaking.

Initially, the budget was vague, the timescale even more so.

What has that meant for the pounds and pence on this project?

When asked how much it was going to take, I thought at the time

it was going to cost twice as much and take twice as long.

Three years later, we have spent in the region of about £128,000.

The family bought the property for £102,000.

Add it to the £128,000 for renovation so far, that makes an outlay £230,000.

Valuing an unfinished shop in the current retail market is not an exact science.

However, a local commercial property agent valued the shop

when renovations are done at £9,000 per annum for rental.

And at offers over £90,000 if it was sold. So, what about those flats?

We asked two local estate agents to tell us what they make of them.

The property has obviously been a substantial building

when they purchased it and they've done well to have the current layout

as such that they can get

two two-bedroom flats out of what was originally one large two-bedroom flat.

They have done a really good job with the refurbishment,

split over two levels now.

Two double bedrooms upstairs and this lovely big living area.

Nice modern kitchen and bathroom. It's a good job, high spec, lovely finish.

Let's hear about rental returns.

I would expect this property to get about £450 per calendar month.

In the current rental market, I'd expect a two-bedroom property in this location

of this size and nature to command about £400-425 per calendar month.

Given the standard of finish in this front flat,

I would expect this property to rent nearer the £450 per calendar month.

I certainly feel the front flat is a more attractive flat.

The rear flat is going to be very nice but I can get more of a premium price

here at the front so I would expect more than 400, about 450.

What could this front maisonette flat sell for?

I would expect this flat to value somewhere around £100,000.

I'm of the opinion that the front flat, that we're in at the moment,

given its standard of finish and layout,

would command a price of £95,000-100,000.

The rear flat is not finished yet so it is hard to put a value on it.

I'm pleased with this front flat. I believe we'll get more than the valuation suggests.

In fact, Alistair likes the flat so much, he plans to move in.

Both estate agents think the back flat, once completed, could be worth up to £100,000.

With a £90,000 value on the shop and two flats valued at £100,000,

that outlay of £230,000 leaves them ahead by £60,000.

There has been parts of this that I've enjoyed.

I've made plenty of mistakes along the way but it hasn't put me off.

We've got one or two projects lined up for the future.

Kennford's calling.

It is here we previously met Vicky and her mother Sarah,

who, along with husband Robert, purchased this cute mews house for £130,000.

The renovation job was going to be one which every member of the family could get involved with.

-At the auction, there was a boy. Was that your little boy?

-Yes.

-What's his name?

-He's Jack.

-He was getting very excited, wasn't he?

He was, he was actually bidding for us at one point.

Luckily, the auctioneer didn't take his bid!

-Yes, he was getting involved.

-Are you going to get him involved in some of the restoration?

-I'm hoping he can do some painting.

-Wow! How old is he?

He is a year and a half. It might be quite messy!

Let's just hope there's no mess here just over five weeks later.

Quite the opposite, in fact.

The mews house wasn't in a bad way when Sarah and Robert purchased it,

but it has benefited from some sprucing up throughout.

Most noticeably in the kitchen.

The main thing we've done in the kitchen is changed the doors on the unit.

The carcasses were fine, it just wanted the doors changing.

They were tatty ones with a brown handle at the bottom. We've changed all these.

A few problems, because something like this is a three door unit now,

that was a four drawer unit.

We had to juggle where the shelves go for the runners.

It has come out very well. There was a four-inch gap down here.

We've built a little wine rack, which we are very pleased with,

with a drawer for your bottle openers and straws.

It has filled that gap so you don't get food going down there.

We are very pleased with the kitchen. It's a lot brighter, airier. It has come up well.

The kitchen and the whole house, we are very pleased with.

As well they should be.

Whilst I would have liked them to extend that tiny second bedroom,

choosing not to has really helped keep them under budget.

£4,000 was what we had. It has come in at £2,400.

Maybe a little bit more because we are still waiting

for some of the invoices from the workers, the electrician and the plumber.

We reckon about £2,400, which is great.

We found 20p under one of the storage heaters

so, that's gone a little way towards it as well!

You know what they say, every little helps.

-How did their little helper get on?

-Jack wasn't particularly helpful.

On one of the days, he helped to clean a little bit.

But he was more a source of entertainment throughout.

There's a lot to be said for being kept entertained on the job,

although the plan was for most of the graft to be done by Robert.

I've done the bulk of it, Victoria has done a little bit of painting.

She's helped by releasing me by doing work at home,

washing-up and that sort of thing. Sarah has done a lot.

She did an awful lot of cleaning yesterday, she was here until 10.

She has also helped with choosing the kitchen doors and other bits and pieces.

So everybody has played their part in getting this place ready to rent out.

They've done it in five weeks, just one week over their planned timescale.

With the £130,000 they paid for the property, added to the £2,400 spent on the work,

the total outlay comes to £132,400.

We invited two local property experts to see

the new and improved mews house and find out if they were impressed.

My first impressions are that it has been renovated in a tasteful and attractive manner.

The size of the second bedroom is going to restrict the market.

If they pinched a little bit from the bathroom,

it could've made a difference.

In my opinion, I might have just been tempted to steal a bit from the bathroom.

It is a good-sized little cottage. It is nice and light.

In the kitchen, I think it is a good size.

It's nice that it has got a dining area.

It's got new worktops and doors. It has got a nice outlook overlooking the communal gardens.

If Robert and Sarah decided to sell, what would these estate agents suggest they market it at?

If we were putting the property on the market in the current climate,

we you would be looking to ask a figure in the region of £150,000.

In the current market, I would expect it to achieve

in the region of £135,000-140,000.

In some respects it's immaterial if we're not going to sell,

-but it's good to know that it's worth more than we bought and put into it.

-Definitely.

Yes, we are pleased with that.

The pre-tax profit here would be between £2,600-17,600

minus the usual tax and expenses.

The plan for the property was always to let it.

Robert and Sarah already have tenants lined up, who move in tomorrow.

How much do the estate agents think they could charge in rent?

If we're looking to rent the property in the current climate,

we'd be looking at something around £650-700 per calendar month on an unfurnished basis.

For rental, I'd expect it to achieve between £650 and £700 per calendar month.

650-700 is brilliant. The tenant's in that ballpark figure.

-That's about the ballpark figure we've got for it.

-Brilliant.

Based on the estate agents' suggestions,

the ballpark rental yield would be around 6%, which is great.

I think Robert picked up an ideal property for his first renovation job.

It's lovely that it has been such a team effort by the whole family.

We work together really well.

Different attributes and we all pulled together and it came in and within time.

-If you've got a tenant lined up, you need to get it completed by that time.

-Yes.

Whether you're a seasoned professional or a property novice,

there are always lessons to be learnt.

Join us next time for more auction action here on Homes Under The Hammer.

-We'll see you then.

-Goodbye.

-Goodbye.

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