Episode 69 Homes Under the Hammer

Hello. Have you ever thought about changing career

and having a go at something a bit different?

Property developing appeals to many people

especially if you're looking for a change of lifestyle.

But it is not always easy to get going.

One way to get yourself off to a flying start is to visit your local property auction.

Well, the lure of the auction room is very strong. What should you spend your money on?

You may set your heart on a property

only to find out that somebody outbids you.

It's best to do your research on several properties to keep your options open.

Let's see what grabbed the attention of our buyers on today's show.

In South London, I am perplexed by a large house built for tiny people.

This head height thing. Wow! What is going on here?

Beside the seaside in Blackpool, I am beside myself with excitement.

It doesn't feel at all like a flat. It feels like a grand house.

And in Amble on the Northumberland coast, I can see clearly now.

So, basically, this wall has to go.

All of these properties have been sold at auctions

and we'll find out who bought them

and what they paid for them when they went under the hammer.

Lady on the second row.

MUSIC PLAYS

Unlikely as it may seem, this wide open space is in South East London, in Camberwell.

An area on the verge of gentrification.

It's surprisingly close to the city centre, yet has lovely parks and greenery

as in Burgess Park which is undergoing a £6 million regeneration.

All good news for developers or someone looking for a family home.

So, the park is undergoing a transformation.

How far do you have to go to find a property that's in need of much the same?

Not very far at all. The property I'm here to see is just here.

It's a grand Georgian semi-detached with a guide price of £330,000.

Straight away we know no matter what it's like inside, it's got great views.

Great views but not a great entrance.

These semi-detached Georgian properties have their main door upstairs on the side.

In this case, it's blocked off so I'm heading for the current front door

which is in a rather dingy looking ground floor extension.

The house is spread over three floors and it has a Grade II listing.

It has a characterful but tatty facade.

On the face of it, this seems like a lot of London property for £330,000.

Bit of a shame for such a grand house that you have to go and access it

through this downstairs and fairly unpleasant rear entrance.

It doesn't get any better when you come in. This is the kitchen.

Really, it is! It's just horrible. Very low ceilings.

Got a strange roof-like thing going on there.

Down into the living room and this head height thing.

Wow! What is going on here?

It must be about two inches above my head. About six foot.

Not good at all. It continues all the way over this ground floor.

The good news is there is a reasonable amount of floor space.

I wonder if there's a way of raising this ceiling, then it would give a much better feel.

Also maybe there's some playing around with the layout you could do.

One of the keys to that is what we found in the garden.

What have we got? We've got this strange corrugated roof lean-to affair

which is ready for demolition.

The good news, this fairly flat area which has got a concrete base

which would be the ideal spot for an extension.

You could extend the kitchen and the living room to create something maybe with a glass roof,

really make the most of the location.

That may well be within permitted development rules

however, the house is listed and therefore you'll have to go through listed building consent

before you do anything.

The downside could be that it's going to eat away into the garden.

Actually, that's not going to be too much of an issue.

It's ginormous!

Really!

I mean, can you see how far it is? Fantastic space.

For a property in a location like this, the garden?

Perfection.

MUSIC PLAYS

Open spaces at the front of the house

and now this amazing park size back garden. It's 100 feet long.

It's a dream to find a garden like this in London

especially with real fruit included.

The lower ground floor is huge and has the only loo

but this space could be made to feel light and airy.

What more could you want? What about the rest of the house?

Another two floors to go. First, the upper ground floor.

Upstairs I'm delighted to say, finally we get a bit of head height

and also some hints to the house's Georgian past.

This staircase here, classic Georgian design.

The space starts to get really exciting.

You've got a big front bedroom. That is the original front door.

The original front doors themselves are here.

I'm sure the listing people would want you to put that kind of thing back

to recreate the grand entrance this place once had.

Both these rooms are being used as bedrooms

but they would have been impressive reception rooms when the house was built.

On the top floor of this three storey house,

there are two bedrooms, one at the front and one at the back.

Both are packed with period details lurking under dingy decoration and hardboard.

Squeezed in between them is the only bathroom and there is no loo there.

It's pretty obvious that rethinking the layout of the rooms

will be a priority for anyone buying this place.

But remember, it's Grade II listed.

For London, this is a whole heap of house and garden

for the £330,000 guide price.

We asked a local estate agent for his opinion.

When I saw the garden, I was quite surprised.

Normally, you'd get postage stamp gardens.

When I walked out there, there's a massive 100 foot garden. Looks fantastic.

With so much space and the option of reconfiguring to make another bedroom,

how would that affect the sales price?

If it was a three-bed, it would be somewhere between £450,000 and £500,000.

If it was done as a four-bedroom property,

it could get anywhere up to £600,000.

What about the rental market?

If you are looking to rent the property out as a three-bedroom,

you could achieve around £1,700 per calendar month.

If you rented it out as a four-bedroom,

you could achieve £2,300 per calendar month.

There are clearly some structural issues with this place.

Allow yourself a decent enough budget

and you can sort out any problems there may be.

What you would end up with is a fantastic house in a lovely location.

Can't go wrong. Let's see who agreed when it went under the hammer.

We move on now to Lot 65.

Who would like to give me a start on this?

-350 anywhere? How much?

-330.

-OK, We've got 330 down here.

335 anywhere? Thank you. 335, 340, 345, 350, yes, 355.

360, 365, 370, 375, 380, sir.

385, 390.

It's against the gentleman in the middle. Bid's at £391,000.

Anybody else? 392 back in. 393, 394, more competition. 395.

396. 397. No? 396 for the first...

397, back in the room.

398, where is he? 398, 399.

£400,000, sir. 401.

402, 403, 404, 405. No?

404 for the first, 404 for the second, 404 for the third and final time.

All done? Sold. 404. Well bid.

That hard won bid of £404,000, £74,000 over the guide pride

was made by restaurant owner and caterer Charles, and his wife, Tima, a hotel reception manager.

They are looking forward to their first baby's arrival.

They're renting in Notting Hill so this will be a new home for their new family.

I caught up with them back there.

-Charles, Tima, lovely to meet you both. Congratulations.

-Thank you very much.

Tell me why you wanted to buy this house.

When I saw a picture of a lake, I thought, that can't be right.

I knew the area and we drove down here and I thought it's astounding.

It's got a late outside the front and parkland outside the back.

Why were you so passionate about buying it?

Because it is our first home.

It is really hard to find something like this in London.

-There is quite a bit of slope in the floors.

-Yes.

-Not a problem?

-No. If there was a problem like great big cracks up the wall,

but there aren't.

Charles may seem blase about the bowed ceilings

but this is not the first period property he's renovated.

He has built up good contacts for restoration work.

Tell me what are you going to do?

-We have got about £100,000.

-So, a nice budget.

-We've got a nice budget.

I don't want to spend it but we've got it.

We haven't made up our minds how to use the rooms.

It would depend on listed building consent as well.

Being a caterer, restaurateur, the kitchen is the centre of the universe.

I'd like to spill out from the kitchen into the garden.

That requires permission to open the window, which we may or may not get.

The fact it has been extensively repaired and there's out buildings should be helpful

but I am in the hands of the gods.

-Or the planners!

-Or the planners! Yes.

Then, do we have this as a reception room, do we have an extra bedroom downstairs?

Where is your main bathroom going to be?

We don't know yet.

Sometimes you can have too much choice.

I hope they get the layout right when they finally decide on one.

What will influence what you do?

The amount of people that are going to live here.

I am not sure what she means by that.

I think Charles that she means how big your family's going to get.

A four-bed might be a good plan.

-What's the timescale for this?

-Six months.

-Good question.

Six months, I don't know. Six months would be nice.

There is also one small thing, that you are having a baby

-which might divert attention for a little while perhaps.

-Perhaps.

-Perhaps.

I have no doubt she will.

-You say she, do you know it's a girl already?

-We are 98%...

-98% sure.

Congratulations, good luck and I really look forward to seeing

how you transform this into a home in lots of ways.

-Thank you very much.

-Thank you.

What a wonderful family home this will make for Charles, Tima and their newborn.

I know he doesn't want to spend all his £100,000 budget

but something tells me with the listed building status

and that kitchen he wants to put in, it will soon get eaten up.

But rarely does a house give so many possibilities.

Find out how they get on and meet their daughter later in the show.

MUSIC PLAYS

Today, I am in Blackpool, the playground of the North,

home of the illuminations, the North Pier, the amusements

and kiss me quick hats and sticks of rock.

It became the first working class holiday destination in the UK

when a railway line was built linking it to the industrialised regions of the North of England.

It's got a fascinating history and it's still alive and kicking today.

Even after all these years, people still flock to Blackpool

drawn by the mixture of seaside fun and entertainment,

whether it's on land or sea.

They are even building a Las Vegas style chapel

so along with a kiss me quick hat, you could also have a marry me quick.

Just one and a half miles from the town centre, and a short walk from Blackpool South Railway Station,

is the property I'm here to see today.

My goodness, look, it's massive!

It's a corner terrace.

At the moment it's laid out as three separate flats.

You have got a little garden to the front, and the guide price?

£55,000 for all of that!

I'm going to take a look.

This grand old lady suggests faded elegance, in this case very faded.

Let's check out the ground floor flat.

Flat number one is massive. Goodness gracious!

The interesting thing is, it doesn't feel at all like a flat.

It feels like a grand house. You've got lots of room to play with.

You are on the main road but it is double glazed

so you can't hear too much of that. There's central heating.

Bit of a feature fire there and overall, not bad.

I like that Swedish sauna effect on the ceiling.

This is the long and windy part of the flat.

In complete contrast to the bright sunny room at the end.

I think a little bit of work needs to be done on that wall.

You've got bedroom one here, a kitchen right at the back.

There's a lot you could do with this space.

Imagine living in this flat, once it's done up. You're in Blackpool,

you can even smell the sea from here. How exciting!

But what I can see is a load of work.

Off the kitchen is another room classed as a study.

Or it could be a second bedroom. Off that room is the only bathroom.

Not only do you have to go through the kitchen to reach it,

you have to go through this room as well. Not ideal.

And with the other bedroom and sitting room off a corridor,

the place has no natural flow.

The bonus of the flat is not just its size,

it also comes with outside space, albeit more of a yard.

What about the other two flats on the upper floors, what are they like?

Let's dash round the side of the building and find out. You've got to be fit for this job.

Apparently, there's another two flats. I think they're going to be quite large.

The two flats that share this entrance are a one-bed studio flat on the top floor,

which has a tenant in, so we can't access it and a two bedroom first-floor flat,

which is a decent size too.

This space is just incredible.

You've got a kitchen and a bathroom, a really nice big lounge,

not sure about the mid brown it's painted.

I think I'd like to get rid of that, but I am going to take you on a tour.

You've got all these rooms that don't actually do anything. Little lobby area.

You have to curve all the way round. You've got a single bedroom there.

In here, another double room. Quite a big space.

You've got to go all the way back here to get to the lounge. It's a bit of a maze.

I don't know what I'd do with a lot of these spaces.

If this were my property, I would take all the walls down that aren't supporting and start again.

For me, the property is not quite working.

Knocking walls down aside, there is a great deal of refurbishment work needed.

But this is a great substantial property for not a lot of money.

Three flats for that amazing guide price of £55,000.

Before I get my strongman hammer out,

we asked along an estate agent, local to the Blackpool area,

to see what she thought of the potential here.

I think the layout lends itself to be a good rental property.

There is demand for rental properties especially with multiple properties in one block.

We have investors waiting for properties like this.

So, demand is good but does that mean there is value in this building that was guided at £55,000?

I would say if the building was sold as a whole,

you would be looking to market it for about £125,000.

That is encouraging. How much income could you earn with the three flats?

For rental, for the whole building,

you should be able to achieve around £1,300 per calendar month once renovated.

That means, the three flats could bring in a healthy rental income of £15,600 per annum.

What a place and what potential!

Can this old traditional Blackpool lady be turned into the lovely vision

that she was or is she all too tattered and torn?

And someone is living in one of the flats at the moment

which could be a problem for any potential purchaser.

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

Lot 146 is a corner terrace house in need of refurbishment.

Looking for £40,000 to start.

£40,000 do we see? 40 straight in on the far left, seated.

At 40,000, 42 then? 42 anywhere? 42 here, 44, 46 yes.

48, I am looking for.

Yes, got it. You waved your paddle. At 48, 50 then. Yes, 52. There we go.

54,000. 56, 58, yes. A new bidder on my right. 60, then? 62.

Yes, 62. 64, 66, 68,

70, 72, 74, 76, 78. Shaking your head.

At £76,000, gentleman on my left. Take one if it helps you.

77, I have got. 78, I've got. 79, 80.

Yes, £80,000, gentleman on my left.

At 80,000, are we all done at £80,000?

First time at 80,000, second time at £80,000. We are all done.

Yes, we are. Well done. Your paddle number, please?

For £80,000, the successful bidder for the three flats was Mark.

He's done some house renovations in the past

but has been living abroad for the last couple of years.

He has returned to try his hand once more at the property game.

I met him at his latest purchase to find out more.

-Mark, fantastic meeting you today.

-Hi.

Tell me why you wanted to buy this house?

Because it has already been split into three flats and it is a big property,

so there's plenty of scope to change things round and get a good return on any money.

When you first viewed this, what did you think?

I hadn't seen inside when I bought it.

-I'd only seen it from the outside.

-When you came inside, what did you think?

-Not as bad as I thought.

There's a few issues with the floors but the rooms are big.

Once you start ripping it back to the basics, take some of the walls down, it's not too bad.

Without seeing inside before auction,

Mark was unaware the one-bed top floor studio flat had a tenant in it.

Luckily, he has managed to negotiate for them to leave in the next few months.

This was fortunate because that could have really held up his plans.

It does highlight the risk of buying sight unseen.

Let's hope there are no more surprises lurking in the structure itself.

Tell me a little about you. Where are you from? What do you do?

I have lived in Blackpool most of my life.

I used to run a hotel here for quite a few years.

Got fed up doing that and that's when I came into buying properties

and renovating them and renting them out.

When the credit crunch hit,

it started getting hard trying to get finance,

so we decided, me and my partner, to try something new and that involved buying a bar in Gran Canaria.

Wow, that must've been fun!

Yes, it was fun. We had a drag theme because my partner does drag.

-We had a good laugh.

-Did you have to do all the dressing up as well?

No, I don't do the dressing up. I leave that to Peter.

It strikes me that his three flats may need a touch more than a little dressing up

before they are ready for the rental market.

-Are you going to start rearranging it?

-Yes, especially the bottom floor.

The kitchen at the back and the lounge, we're going to put the two together

and then move the bedroom at the back and the kitchen and the bathroom.

It's a bit of an awkward situation at the back, so we're going to move those around.

What's your timescale?

Probably three to four months, probably more on the four months.

I should say so. Your budget?

I think we'll start off with about £24,000, that's 8,000 per flat.

Then, up to a maximum of £30,000. Give £6,000 for any hidden costs

and anything that needs doing outside.

-Who have you got to help you do this?

-Just me and my nephew.

Apart from the electrics - I use an electrician. The plumber does the central heating

and I've got a lad that does the plastering.

Everything else me and my nephew will do.

-Are you excited by this?

-Once we start ripping it down, yes.

-It's been lovely meeting you today, good luck.

-Thank you.

Mark is such a character.

He's got so much planned for the building,

but will he stumble across any problems

when he starts changing the layout?

Will he stick to his timeframe and budget?

You can find out what happens later in the programme.

Coming up in Amble, Northumberland, I find there's not much room to grow out there.

If you are entering your garden here,

you are going to be a bit disappointed.

In Blackpool, did former hotelier Mark find himself on a rollercoaster?

Two weeks into stripping it out we realised there was some kind of issue with the structure.

First, back to South London to see what restoration meant for Charles and Tima.

It was time, it was money, it was frustration.

We're back in Camberwell, South London to see how caterer and restaurant owner, Charles,

and his wife got on with that massive semi-detached Georgian townhouse.

With Tima expecting a baby,

they fell head over heels for this property.

It sat in a fantastic location across from a park with a lake

and came with its very own park size back garden.

Inside the property was spread over three floors with two rooms on each.

It was packed with period features, cast-iron fireplaces,

beautiful banisters, alcoves and a few period features

you wouldn't want, like sloping floors and badly bowed ceilings.

But Charles wasn't unduly concerned.

No, if there was a problem there'd be great big cracks up the walls.

But there aren't.

He planed to strip the house back to its bones

and find a place for the kitchen.

But one of the biggest puzzles

was just how to use all this space inside and out.

We haven't quite made up our minds how to use the rooms.

It would depend on listed building consent as well.

The couple paid £404,000 for the house

and had a budget of £100,000 to turn it into a home.

They hope to turn it around in six months.

Well, we've come back one year later to see

if they have managed to resurrect this classic Georgian house.

Well, the scaffolding is still up outside but don't let that fool you.

The house is most definitely now a superb family home.

Clearly, Charles and Tima have been extremely busy

on much more than the house.

For starters, there is the arrival of their daughter, Valentina.

Valentina was born nine months ago.

She's so beautiful. What a treat.

I'm very lucky.

Looking after a baby as well as fixing up a house

is quite a demanding combination and this is no ordinary house.

I've done buildings like this before and from this period.

With hindsight I was too confident.

This particular building is far more fragile

than I'd appreciated.

Although plenty of the problems were on show when they bought it

even more were lurking out of sight.

We discovered that we had to have new drains,

which is very expensive.

We did a lot of investigative work

under floorboards, behind plaster

and discovered some horrors and some actually not so bad at all.

Let's not forget this house was Grade II listed

which added a whole new dimension to the renovation.

If 75% of the original exists you must restore it.

It was time, it was money, it was frustration.

The care and attention to period detail might have taken more time

but the results are simply stunning.

The top floor is now two beautiful bedrooms.

Valentina's looks out over the park at the front of the house.

And Charles and Tima's is at the back overlooking the garden.

Between them, there's a brand new family shower room.

Really, every room has a special thing.

Sometimes I think to myself what is the best thing in this place?

Every time I find every room has its own character.

On the upper ground floor the old bedsit-type front room

has been transformed into a glorious sitting-room

that's now full of character.

At the back is the all-important kitchen.

Charles had to wait seven months to get planning consent

for the basement conversion.

In the meantime he has re-thought his original plans

to place the kitchen on the garden level.

It'll be a bedroom at the front and a large bathroom at the back,

a utility room and then you will go into what will be a day room,

an office, or another bedroom.

That will open out into the garden.

Charles originally thought this refurbishment would take six months

and they had allocated up £100,000 to do it.

So, how did the budget fare given the costly

and skilled restoration they had on their hands?

The budget!

Yes. I declared that we'd got a budget of £100,000 which we did.

A pity we didn't keep to it.

By the time the extension has been built the budget will have doubled.

I'm hoping that the value will show through. We shall see.

We shall indeed.

Time to hear what two local property experts think of the work done here.

In terms of the style of the house

and the character I think they've done a really good job.

They've used what's here but haven't tried to replace what's here

and get it wrong which a lot of people do.

You still get the period feel but it's done tastefully

which is very important.

The building, the location, the way it overlooks the park

and the way it has been finished is absolutely fantastic.

High praise indeed but will it translate into profit

when the new extension's finished and the garden level is complete?

I'd set the value somewhere around the £650,000 mark

possibly up to £675,000 because it is a very unusual property.

Once the extension is complete it should sell for £675,000 - £700,000.

That would give the couple a profit of between £46,000 and £96,000 before fees and expenses.

If we wanted to sell it then I suspect that'll be about the price.

I'm disappointed but I suspect it's realistic.

It can be hard to get an exact valuation

when there is still a heap of work to do

but Charles and Tima bought this house to be their long-term family home.

# I come home

# She lifted up her wings

# I guess this must be her place. #

I love the building. I am affected by tradition.

I'm just a page in its book and I want it to be a good page.

# You will have a fishy on a little dishy

# You will have a fishy when the boat comes in

# You will have a fishy on a little dishy

# You will have a fishy when the boat comes in. #

Today I am in the small fishing port of Amble

on the Northumberland coast

and even on a day like this it's still a charming spot.

In fact, this little place has a poignant reputation

for friendliness and charm.

In the 1930s the steamship RMS Mauritania was heading out

for the last time to the breaker's yard in Fife.

The Amble town council at the time sent a telegram to the ship

saying she was still, "The finest ship of the seas."

The Mauritania replied with a greeting to,

"The last and friendliest port in England"

as she sailed into the distance on her final voyage.

So, steaming ahead and only five minutes walk from the town centre

is the property I am here to see.

It's a traditional stone built terrace, three bedrooms,

had a guide price of £74,950.

What's it like inside?

There is only one way to find out.

That's a nice surprise.

Through the front door and a really good size entrance hallway.

Fantastic, somewhere to put your coats there.

It gives, immediately, a nice feeling of openness which is great.

Front sitting room there. Looks to be in pretty decent condition.

Even the carpets could do you.

Towards the back it starts to get a bit strange

because that's the kitchen and then this is the rear sitting room area

but you've got this window between here and the kitchen.

Fantastic if you like watching other people do the work

or you are a bit of a kitchen voyeur, but not ideal. So...

Basically this wall has to go.

Knock that down to create a really nice open plan kitchen/living area.

In terms of what it is at the moment, the units are old.

I wouldn't worry about that because you are going to redo this area.

Do that and I think you've got a really great property here.

# Steamy windows

# Ain't nobody can see

# Steamy windows... #

Yes, that window really has to go.

It must steam up every time the cooker goes on

in that rather small galley kitchen.

A kitchen diner would work so much better here

and with a good-sized front reception room and open, airy hallway,

this house is bigger than the outer appearance might lead you to believe.

Upstairs, a bit more unusual glass, different kind of voyeurism here.

It leads into the bathroom and the loo.

Once again, when you come up here a really great feeling of space.

I love this landing and it gives this whole property something

I was not expecting.

It feels really, really big and lovely.

Three bedrooms and a good-sized bathroom.

In terms of what you've got to work with in this property I just love it.

If the prospect of three good-sized bedrooms, all of which are in decent order,

centrally heated, looking structurally sound

and a large bathroom weren't enough for you, you could also consider

extending into the loft space

with the right planning permission of course.

So, this decent sized house has the potential to be even bigger.

# Let it grow, let it grow

# Let it blossom... #

At the back of the property you've got this little rear yard.

But as you can see it's very wet out there today

so I will tell you all about it from in here.

If you wanted a garden you are going to be disappointed

but a couple of planters out there and you'd really improve it.

A big bonus - two out-buildings including an outside loo.

Well, it's looking good to me but let's hear from someone

who knows the likely local appetite for it.

We asked an estate agent for her opinion.

This property is in a very popular area

because it has a lot of local amenities

that are within walking distance to it.

It also is very spacious

and has a lot of flexible accommodation inside the property.

If you were hoping to sell this on and make a profit

after you've done it up, what could you expect to get?

In my opinion the value of the property is in the region

of £125,000 - £130,000 if it was done up to a good standard.

And as a rental?

'The rental value, I'd be looking to achieve in the region

'of the £500 per calendar month.'

There are a few internal modifications you could make

to this house but it is a fantastic little property in a lovely area.

What is there not to like?

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

This lot came up at the end of the auction day.

Move along to lot number 100.

It's a traditional stone-built house

in a popular street in the coastal town of Amble.

Can I ask 75,000 anywhere?

Thank you. Quickly.

I've got one bid of £75,000.

Can I have 76 anywhere else? 76,000 bid.

77? 77 bid.

78. 79.

Yes? 79 bid. 80. 81.

82. 83.

83 bid. 84. 85.

86.

86 bid. 87.

I'll take 500 if it helps.

86,500. 86,500 bid.

I will take 500 again.

87. 87 bid.

87,500.

No? To the lady in the second row.

£87,000.

I am selling it, you are both out. I am selling for once, 87.

I'm selling for the second time at £87,000.

To the lady in the second row at £87,000.

Those relieved bidders were Evelyn and her daughter Michelle.

They each own stationery shops in the area.

With their bid of 87,000, £7,500 over the guide price,

they've secured a new home for Michelle and her 13-year-old son, Cain.

Evelyn, Michelle, great to meet you both. Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

Erm, we have lived in the area my whole life.

I moved out of the area a few years ago.

When I came back I couldn't afford a house

so this year we started looking and this one became available.

-Right.

-We went to see if we could get it.

And you did.

'Michelle has been away for six or seven years

'and getting on the local property market seemed out of her reach.

'However, by securing this house at their first ever auction,

'Michelle is now very handy for her mum who lives just a few streets away.'

Evelyn, what is your involvement?

It's very important, it's called a chequebook and a pen.

-The bank of mum.

-That's right. That is my involvement.

-What are you going to do to sort it out?

-New central heating.

-Electrics.

-New electrics.

Apart from that, I'm not sure.

-No, just your expensive bathroom you would like.

-Well, yes.

There is that.

-And the kitchen of course.

-My beautiful kitchen.

Mam's got the purse strings so I will have to behave.

-What is the budget?

-Michelle's budget or my budget?

Why? Are they different?

There is a couple of noughts difference, isn't there, Michelle?

-Yes.

-10 to 12.

15 tops.

10 to 12.

'Well, I have a funny feeling the bank of mum

'is going to be relieved at that higher £15,000 figure.

'They're hoping to get the work done in just two to three months.'

-Who's going to do the work?

-Sadly, it's professionals.

We've got builders and everybody coming

because apart from stripping the wallpaper

and painting of bits and bobs, I could do that with some friends,

but as for the rest of it it will have to be people

coming in from the outside, sadly.

That is where the expense is.

You are going to make sure you will get some good people involved,

get lots of quotes. Three at least, but four possibly.

What are you most looking forward to?

Just having a home that is mine

and having somewhere just to settle with me and the little ones.

-Has Cain seen it yet?

-Yes, he's been in.

-Has he chosen his bedroom yet?

-Yes.

-And has he chosen the biggest bedroom?

-Yes.

-Is he going to get that as his room?

-I think he will, yes.

I hope this one works out well for you. I look forward to seeing how you get on.

-We will be back.

-Thank you.

-Well done.

-Thank you.

-Good to meet you.

That is lovely. Mum Evelyn helping Michelle return to Amble

and to a great house.

I really hope they take my advice

and get lots of quotes for the work that needs to be done

but with that done it will be a lovely home for her and her son.

You can see how they all get on later in the show.

We hope our buyers have been working away on their investments.

Have they had time to make themselves a nice profit?

Have they been busy or have things not turned out as they'd hoped?

It's time to go back and find out.

The Lancashire seaside town of Blackpool may epitomise

a British seaside holiday resort with its famous tower,

trams, lights and entertainment.

But it is also a popular place to live, so when a very large,

rather quirky building came up for auction it was certainly worth checking out

especially since it had been subdivided into three flats.

There was one two-bedroom ground floor flat with its own entrance.

Then, a two-bed first floor flat

and a one-bed studio flat at the top floor,

both reached via a side entrance.

But the layout was, to say the least, far from ideal.

There were rooms off rooms and a maze of short corridors.

But for ex-hotelier, Mark, it was an opportunity

to return to property developing after two years away.

When the credit crunch hit it started getting quite hard to get finance.

So, we decided, me and my partner, to try something new

and that involved buying a bar in Gran Canaria.

-Wow, that must have been fun.

-Yes, it was fun.

We had the drag theme because my partner does drag, so it was a drag theme bar. We had a good laugh.

But he's back in Blackpool

and having paid £80,000 at auction for this large, muddled property

Mark planed to retain the three flats and address the layout issues.

He was hoping that with a £30,000 budget

and a three to four months' timescale he and his nephew

could do the changes necessary to make this suitable for the rental market.

So, was this to be a happy return to property development?

Now over 11 months later we're back to find out.

The first noticeable thing is that the old faded lady

has had a real makeover and not just a quick bit of slap either.

A new roof, new windows, doors and the rendering is completely re-done.

Why the total transformation?

Two weeks into stripping it out we realised there was an issue

with the structure of the brickwork, especially the main supporting wall

in the centre of the building having dropped by nine inches.

We had to move... Two thirds of the building had to be pulled down.

Then we had to have new foundations, the walls to be rebuilt and that type of thing.

It took us five months to get to the blank canvas

before we could start putting the building back together again.

Wow, it takes a lot to recover from this kind of rollercoaster ride

but Mark's still here and the messy layout in the ground floor flat has gone.

This flat saw the major change

because the layout before was very awkward.

We moved the kitchen from the back into the lounge

because it was a fairly large lounge so we could take a piece off there.

In doing so, we managed to move the back door to the other side

allowing us to put a long corridor in,

allowing to move the second bedroom and the bathroom off that corridor,

completely altering the layout and making it easier to use.

Off the new corridor there are now two bedrooms

and a bathroom which still needs some work to finish it off

to go alongside what is a good-sized kitchen/diner.

The two-bed ground floor flat is well on its way

but what about the other two flats reached via the side entrance?

In this flat we moved the door from in this corner here

and in doing so we've got a bit extra room in the lounge

because we could move the corridor and also the bathroom and kitchen,

we could get a bit bigger because there's no corridor in there either.

With the kitchen and bathroom now accessed off the main lounge,

Mark has got a more natural flow to the flat.

And though the two bedrooms along the corridor

have remained a similar shape and size they've been completely refurbished.

But what about the top floor studio flat

which we couldn't even access before because it had a tenant in it?

It wasn't too bad actually.

She managed to find somewhere else to move to

and went within three or four weeks.

It could have been a bit awkward if they were an awkward tenant

but she was really, really nice.

I even gave her a hand to move her stuff in the van. She was quite happy.

Mark was lucky the tenant was so cooperative

as a sitting tenant does have some legal rights. So, buyers beware.

But at last we get to see the top floor studio flat.

Quite quirky with an oddly angled lounge

with one bedroom off a small galley kitchen and then a shower room.

It seems Mark's grand old lady turned into a bit of a monster.

With all but the electrics, plumbing and main structural building work

done by Mark and his nephew, Ben, he's been here most days.

It seems all the hard work may have been worth it.

The flats are all tenanted.

We've got people waiting to move into the bottom flat and the second flat

as soon as they're done.

The top flat needs a bit more work on it

so probably another three to four weeks for them to move on.

That's great news and a real incentive to finish off this protracted project.

What impact have all the unforeseen problems had on the costs?

The original budget was £24,000 with the contingency going to £30,000.

Once we'd got to the point where we realised the structure

needed to come down at the back, that budget got blown away

and the 30,000 went instantly on trying to rebuild that.

The budget has gone well out the window.

Yes, the budget really did go out of the window

and now stands at a whopping £75,000.

Having purchased the building for £80,000 at auction,

the total outlay here without cost and fees is £155,000.

What do two local estate agents make of this three-in-one property?

They've really worked with the personality of the house,

brought out its light.

It's got nice high ceilings and I think that really works.

They've complemented it with the down lighting.

I like the finish of the place and the size of the rooms.

They're all bright, there's plenty of windows

so it's a nice, bright place with a lovely feel to it.

Mark is looking at this as a rental machine.

If he were to put the whole building for sale

could he see any return on his £155,000 investment?

In today's market we are looking at £160,000.

To sell the whole building I would imagine you'd be in the region of £150,000.

Right. That's a lot lower than what I thought it would be.

That could be a pre-tax profit of £5,000 or possibly a £5,000 loss.

But rental's the name of the game here

and Mark's already got tenants lined up.

Has he got the best combined return on his three flats?

As one proposition I think you would achieve

approximately £18,000 a year.

For the whole year, I would imagine you'd be renting the whole building

in the region of £15,000 per annum.

Yes, the 18,000 is about the right amount.

That works out about right with what I'm getting on the rental

with the tenants that are moving in.

Mark's tenants are paying between £476 per calendar month

for the one-bed flat,

and £540 per calendar month for each of the two-bedroom flats.

That reaps him a healthy yield of above 11%.

Even after all the structural issues this appears to have been

a very successful return to property developing for Mark.

So, is it or more of the same or back to the bar?

I'll look for another property, probably flats again,

and do the same type of thing, not with as much structural work to do.

Hopefully, just a refurb and quickly move on to the next one.

Not as long on the next one.

In the coastal town of Amble in Northumberland,

a surprisingly spacious three-bedroom stone-built

terraced house went to auction.

First impressions were certainly favourable with decent sized rooms

and no sign of damp or structural issues.

It did have a slightly odd window between the smallest kitchen

and the rear dining room but nothing that couldn't be easily sorted.

So, for local mother and daughter, Evelyn and Michelle,

this looked like it might be perfect as a new home for Michelle

and her 13-year-old son, Cain.

With Evelyn living just around the corner

and both of them running card and stationery shops in the area

their location was spot on.

So, for £87,000 they bought the house at auction.

Then it was just a case of working out how much to spend on it.

What is the budget?

Michelle's budget or my budget?

Are they different?

There's a couple of noughts difference, isn't there?

-Yes.

-10 - 12.

15 tops.

10 - 12.

Well, in theory Mum was holding the purse strings

but in practice, let's see, as we return just four months later.

Well, at the front, the main change is the addition of some air bricks

to help circulation and inside...

The front reception room certainly looks much more homely

with modern fittings and furnishings.

But what about the rear reception room with the odd window

between it and the kitchen?

# Open your window

# Won't you let her out

# Wave goodbye to the butterfly the one you can't be without

# Open your window

# Won't you set her free

# Where you are isn't where she's at... #

So, this is my kitchen.

The wall used to be here and the door was about here.

As you can see, they've gone.

I'm left with this lovely kitchen

with everything I could possibly want

and my beautiful island with its sparkly tiles.

Well, the kitchen certainly does sparkle.

It's fantastic the way the space works now.

But what about upstairs?

# Open your window

# Won't you let her out

# Wave goodbye to the butterfly the one you can't be without... #

The three bedrooms look very striking,

or should that be striping, with modern lines throughout.

And what about that luxury budget-busting bathroom

Michelle had in mind?

Well, this is the bathroom. There used to be a cupboard here

which has obviously gone.

With it being such a big space we decided to have

the bath and shower separate.

Then the cabinets just finish it off.

So, what a transformation from a house into a home.

As they employed a builder to do the work

and did get a number of quotes, how hands-on were Evelyn and Michelle?

We weren't on site that much, not at the beginning,

but as it got closer to the deadline we realised

that everything hadn't been done to the way it was supposed to be have been done.

Mam came in with a clip board and told them

exactly what they should have been doing.

-I believe we still speak to them, don't we?

-We do, yes.

We had an understanding at that point

that they were going to do what they were supposed to be doing.

The only remaining task to be checked off Evelyn's clipboard

is the patio area. That is taking the place of the old outside privy.

Then it will be the lovely home Michelle was so keen to have

for herself and her son.

Did he get the biggest bedroom after all?

With Cain it's quite comical because when he looked at the house,

I said you're getting the little room. He went, "Oh, right."

Me and Mam had talked about it and we have given him the big room.

He has been barred from the house since the carpets went down

because he knows what carpet he's getting.

-He doesn't know any of it yet.

-A lovely surprise for him.

Where's my bed?

-What?

-Where's my bed?

-Maybe you want to try the other room then.

Oh, yes!

-Does that meet with your approval?

-Yes.

Isn't that great? It seems everyone's happy with the outcome.

Yes.

Wait a minute. What about the battle of the budget. Who won?

Was it Mum or did Michelle break the bank here?

My original budget was 10 - 12.

-My original budget was 15.

-Michelle's.

And sadly...

we've probably spent between £17,000 and £18,000.

An £18,000 spend on top of the £87,000 purchase price

will take their total outlay to £105,000 without costs and fees.

What do two local estate agents think of the property

now it's been renovated?

It's a lovely property and they have done a good job to it.

Modernised throughout and it is beautiful.

The property's fantastic.

It's a popular street and I think people who've worked on the property

have done a nice job.

Yes, they have done a great job but have they invested their £105,000

in this three-bed terraced house wisely?

I would recommend a valuation in the region of £125,000 - £129,950.

We would be looking to market the property for around £128,000.

That's not bad. Not bad at all.

That is a profit.

It is indeed.

A potential pre-tax profit of between £20,000 and £24,950.

So, there is some money in it.

Would that tempt them to try and do another property?

Short-term, we're going to get back to work

but long-term, I think we've possibly thought about

doing a couple of more houses.

It's a good way for you to earn money.

-Early retirement for me.

-Yes.

-Sounds good. I like that.

That is it for today's show. We'll have more properties

and more enthusiastic buyers for you next time.

Make sure you join us then for more Homes Under The Hammer.

-Goodbye.

-Goodbye.

Subtitles by Red Bee Media Ltd