Episode 71 Homes Under the Hammer

We all know that property prices can fluctuate.

But even so, if you buy wisely,

you can profit from property.

One way you can do that is to head down to your local auction house.

There are hundreds of property auctions each year, so, plenty to choose from.

Let's take a look at which properties made our buyers part with hard-earned cash on today's show.

'This Wimbledon one-bed's welcome is anything but warm.'

So, straight through the front door and, er...

straight into a wall.

'In this end-of-terrace in County Durham, we're not on the straight and narrow.'

I don't... That looks a bit weird.

'And I'm in a quandary over this four-storey property in Kent.'

Family home? No. Flats? No chance. Holiday lets? Not quite.

20?

'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 southwest London, Wimbledon, to be precise -

'a bustling area with bars, restaurants and great transport links to the centre of the city.

'It's London, but it's livable.

'And, of course, famous for one thing.'

# Remember you're a Womble!

Remember you're a Womble!

# Remember you're a Womble! #

'Haha, only kidding! Of course, this place is famous for its tennis.'

# Anyone for tennis? Wouldn't that be nice...? #

The property I'm here to see

is less than half a mile from Wimbledon Tube station

and it's in this attractive Victorian terrace, which is perfect.

The road's busyish and parking would be a pain,

but for £210,000 guide price for a one-bedroom garden flat in this location?

Huh! That's very appealing indeed.

'You can't often net a one-bed period property

'for under £300,000 round here.

'This one scores extra points for being freehold.

'So, this could be a property to... um... love!'

So, straight through the front door and, er...

straight into a wall.

Nobody likes to see that!

But that said, look at the wonderful space you've got here.

There are lots of up-sides with this room.

Beautiful traditional cornicing, this wonderful window area.

It's got double glazing already. I'm not that mad keen on it.

I would love to see some traditional sashes,

but that will keep out the road noise and that's a bonus.

Ooh! Look at this down here!

Now if wooden floors are your thing, there are some superb floorboards.

Nice and wide and in good nick.

They would come up lovely, if you wanted to sand them down.

There's a gas fire over here, which tells me there's no radiators,

no central heating, so you'd have to get that sorted.

But as far as flats go in Wimbledon, this is very positive.

'The room will need work, but it does have good proportions.

'Next along the corridor is the one bedroom.

'And the ace for me is that it leads out to your very own garden.

'15 feet of outdoor space in London is a real luxury.

'Less luxurious is the layout at the rear -

'a kitchen at the end of the hall,

'which offers the only access to the bathroom and separate loo.'

# Ain't that a shame?

# You're the one to blame. #

Hm, I'm not keen on this layout, but I'm also not sure which way to go with it.

You could flip it around and move your living space to the rear,

so you're straight out onto the garden.

You could put the lounge where the kitchen and bathroom are.

The kitchen in place of the bedroom and have the living room as the bedroom at the front.

Or...keep your living room at the front.

Open up into what is currently the bedroom next door

and make THAT the kitchen.

You would still have the door into the garden from the kitchen

and a really lovely BIG open-plan space,

but still with separate zones for cooking, dining and sitting.

Your bedroom would be at the rear, which is away from the road, so it will be nice and quiet.

It is a lot of work but, in this location,

I reckon it's worth splashing the cash to transform the space.

'You'd still have a mission finding space for the bathroom,

'but I don't think it's impossible.

'Once you've taken out all the partition walls in the back,

'there's definitely space for a decent double bedroom

'and a small bathroom.

'It would improve the layout tenfold.

'It wouldn't be the cheapest option, but if you could bag this pad

'for anywhere near its £210,000 guide price,

'you could turn it into a prize winner.

'We invited a local estate agent round

'to see how she felt about the flat.'

The flat's tired,

but it's a good structural property, a nice Victorian house.

I feel it could be a lovely flat.

'Could be lovely,

'but what sort of cash would you need to splash to make it so?'

I think you have to be careful in this market,

how much you spend on a property.

Personally, I think that if it was cosmetic only,

you should really try and keep to a budget of around 10,000.

If, however, you're going to be an owner-occupier,

I think you could happily spend 30,000 to 40,000

on making it really a fabulous home.

'Before you decide what to spend,

'you should think about how much it could be worth.'

Once work's been carried out, I don't see any reason

why it couldn't be marketed around about the £300,000 mark.

'Once renovated, how would it fare rental-wise?'

I feel that this property could achieve £1,150 per calendar month.

Good quality first-time-buyer homes in London are in short supply.

Young professionals, fed up of paying rents at an all-time high,

are buying if they can, and this type of flat in this location,

done up, would fly off the shelves before the particulars were printed.

As an investment, I think this is a no-brainer.

Let's see who agrees at the auction.

Lot 70. Eh, interesting one.

I know what my first bid would be,

but I don't know what yours would be.

190?

Thank you. 190.

195. 200.

205, sitting down.

I'll take it. 210, with you.

215?

220. 225?

230?

235? 240. 245?

250.

255, anywhere?

255. 260?

256?

257, sir?

258?

257 down here.

First time. Second time.

Third and last time. If you're all done...

BANGS GAVEL

257, sold.

'Successful with his £257,000 bid, £47,000 over the guide price,

'was fledgling filmmaker Dominic, a soon-to-be Wimbledon local.

'Which is where I met him, to get the lowdown.'

# And just like the movies

# We play out our last scene... #

Dominic, it's a pleasure to meet you. I'm so excited to find out how you ended up with this flat.

The first thing was I looked through the auction catalogue.

I studied everything in there and I saw this place in Wimbledon.

The first thing I thought about was Wombles!

And then I thought about tennis.

I remembered the time I'd been to the Wimbledon championships.

It had taken me four hours in the pouring rain just to get to the Tube station to get home.

I thought, "If I could get this place in Wimbledon,

"I'd never have to do that again, so it'd be worth it!"

-Where are you from?

-I come from north London, from Hampstead.

I'm coming down to Wimbledon, primarily, because I think it'll be closer to where I'll be working.

What is it about Wimbledon that you love, apart from Wombles and tennis?

There's restaurants, everything you could possibly need.

Tube station nearby. Wow! It's in the heart of things.

You paid over the guide price to secure this on auction day.

-Were you happy with that?

-When I thought of all of the things, it sold itself to me.

The period features, the wide floorboards, the freehold.

It's not a leasehold flat, which is unusual for London.

And it's got a garden as well.

When I went into that auction, a part of me said, "I can't let this go."

Auction fever was always there. It might have taken over.

But actually, I was surprised, in the end,

that it didn't attract more attention from other bidders.

I would probably have gone up to...280?

-Really?

-Yes. I would have gone much beyond what I got it for.

In my view, it felt like a bit of a bargain.

'Dominic was clear at the auction about his top price.

'If you fall in love with a property, like he did,

'you should try to make sure your head rules.

'Dominic was lucky to get this place for less.

'Now he's got it, what's he going to do with it?'

Well, wow factor is what I'm after.

There's lots of ideas you could try and I'll ponder all of them.

But the one that seemed to jump out to me

was to remove the wall that divides the bedroom and the living room,

and make that into a kitchen-diner, for starters.

Then in the kitchen, to make that a bedroom.

Then to make independent access from that bedroom to the bathroom,

and from the other rooms to the bathroom.

Right. I'm with you. The room we're in now, currently the kitchen,

you'd like to make into a bedroom and put a bathroom here somewhere.

-Yes.

-Is that something you're looking forward to, getting stuck into the work?

-Definitely. Yes.

I have an ulterior motive, actually, in renovating my own place.

I find when I'm doing serious work, my mind goes into another place.

-I get very creative and I want to use the time to write a script.

-For...?

I'm thinking of making some kind of black comedy or horror film.

You bought this flat so you get thinking time

-to spend on your horror film?

-Exactly.

-That's a first!

I've been doing this programme a long time and nobody's ever used THAT as an excuse! I love it!

'I hope Dominic doesn't find any hidden horrors here

'because he has a budget of just £15,000 to tackle some major reconfiguration.

'He's no stranger to the building trade, though,

'as he used to run a property maintenance company.

'So, he'll be hands-on and using all his old contacts

'to get the work done in six months.'

It sounds like you've got so much to look forward to.

Are you excited to actually move in and live in Wimbledon?

I can't put it into words. Yes. I am massively excited.

It's been so lovely meeting you. Good luck with this project.

-I hope your creative juices flow.

-Thank you very much. I hope so, too.

So, renovating this flat is a chance for Dominic to get creative.

And not just with the layout.

I'm really looking forward to seeing what he does here.

This could be an exciting renovation.

Join me later in the show for the premiere of this Wimbledon wonder.

I'm in West Auckland, near Bishop Auckland in County Durham.

This place has a charming story associated with it.

Back in 1909, around the time of the first ever World Cup for football,

a letter was sent out, allegedly, addressed to WAFC.

It was supposed to go to Woolwich Arsenal Football Club,

but instead, it came here, to West Auckland.

The local miners and other people who were part of the football club

got the letter and decided, "Right, we shall pool our belongings,"

and headed down to Turin, where the competition was held.

And, you know what? They won.

Not only that, they returned two years later and won again.

Isn't that fantastic?

'That was in pre-FIFA days, of course.

'There will, no doubt, have been celebrations on these same streets.

'I'm looking at a property that went to auction guided at £19,950.'

So, will the property I'm here to see prove to have a winning formula?

This is it - a two-bedroom terrace. Let's take a look.

So, what have we got?

Well, through the front door and...

I don't... That looks a bit weird.

The frames of the doors and the angles of the ceiling,

they're all skew.

That could be a sign of subsidence. I'll check that out upstairs.

Into this room, which is your main downstairs living room area.

It's quite a nice space. Very open plan, which is good news.

You've got a wood-burning stove or something similar.

So we like this. Then through to the kitchen.

Proportionally, it's just about right for the house.

It doesn't look to be in too bad condition.

Well, the units aren't - ish.

Much more concerning is what you see as soon as you walk in,

which is massive amounts of damp by the rear door.

The floor's actually wet. More signs of damp over on that wall.

Oh, and that wall. Right!

So...! Oh, around the window as well.

We've got potential subsidence and loads of damp. Um..

Not exactly an ideal start.

# Gonna get right down to the real nitty gritty... #

'Yes, you'll have to get down to the nitty gritty with this property.

'Apart from nice original features in that front room,

'this is a place with problems.

'It's been empty for a year and the neglect means

'it's a fair bet that the damp is affecting the electrics.

'So that's one job for the professionals.

'Upstairs, this is where I wonder if the issues

'with this two-bed end-of-terrace

'are big in relation to its small guide price of £19,950.'

I can't really tell without further investigation

whether or not there's subsidence issues,

but one thing which is undeniable

is that there are certainly damp problems.

Up here, it's not a bad layout.

You've got one big bedroom at the front, a small bed at the back

and a bathroom which is half decent in size.

But just look at what we've got going on here.

All the walls, it seems every corner of the property,

there's massive damp problems, so that must lead to the roof.

If it was solved quickly, there wouldn't be this issue,

but it's been like this for some time, and who knows what damage has been done?

'At the end of the landing is a cupboard, also - guess what -

'riddled with damp.

'The bathroom looks in reasonably good nick.

'You could almost get away with keeping the suite that's here.

'But, oh no! Here we go again!

'That unmistakable little sign of... You don't need me to tell you.'

# The leak in this old building

# Is leaking all the time

# Every time it rains

# It makes me change my mind... #

'Outside, there's a shared yard, so no outside space of your own.

'That guttering is one of my chief suspects for causing the damp.

'It could be blocked or cracked but until you get the damp dealt with,

'you can't get going with the refurbishment inside.

'We asked a local property agent along to hear her impressions.'

The property's very close to the A68, which is a very busy road.

It's busy 24 hours a day. It looks semi-detached, but it's not.

It is end terrace, and that has implications for how high a price you would ever achieve

on this as a property, however well you were to refurbish it.

'Another negative, but let's be positive -

'if the damp is cured and the house has a full makeover,

'what, realistically, could it be worth?'

If this property was refurbished to a decent standard -

new kitchen, new bathroom, redecorated throughout,

make sure the central heating system works and new windows, probably -

you'd be looking, possibly, to achieve about the £45,000 mark.

'Would a refurbishment pay dividends for a buy-to-let investor?'

Refurbished, this property would probably let for a figure in the region of £400 per calendar month.

Although that guide price does seem incredibly low,

walk into the house and, yes, the layout's OK, but a lot of work to be done.

Always remember what the ceiling price of a property around here is

and how much it'll cost you to get this place up to scratch.

Not an obvious one. Let's see who bought it when it went under the hammer.

We're going down to West Auckland. No onward chain.

Your lobby, the lounge,

the kitchen, two beds, a bathroom.

It's got the double glazing. It's got the gas central heating.

We've got this in with a price guide of 19,950-plus.

I need 18 to start. If I don't have 18, I'll pull.

Right in the far corner at £18,000.

Can I ask for 20 anywhere else? We've got one bid at 18.

19 on the telephone. 20?

20 bid. 21?

No. I'm here at £20,000 on the left hand side.

There's a new bidder at 21,000. 22,000?

22 bid. 23?

24?

25?

No? I'll take 500 at the back. Is it a nod?

24 and a half bid. 25,000?

25 at the back. 25 and a half?

It's your last chance if you want to take 500. I'm selling at 25. Selling once at 25,000.

For the second time at £25,000.

Sold, left hand corner.

'The successful bidder hidden away from view at the back of the auction

'was James, who paid £25,000.

'If ever a property and a buyer were meant to be, this is it,

'because James is a roofer by trade.'

# I need a roof over my head... #

'This was his first auction purchase.

'I met him at the house to find out if he's just the man to come to its rescue.'

James, great to meet you.

-LAUGHING:

-Congratulations!

-Why did you want to buy this place?

-It's just an investment, really.

-It's close to the pub that I drink in.

-Oh, right!

So it's an added bonus, but it's an investment for the future, really.

-Have you done anything like this before?

-No.

I've done the house that I lived in, but I've never done a project to sell and possibly make money from.

-So why now?

-Property market's low. I can buy cheap.

And hopefully hit the market when it's rising and make some profit that way.

Tell me what you do when you're not doing this sort of thing.

-Roofer.

-A roofer?

-Yes.

-Right. What kind of roofing?

Industrial - schools, factories.

Are you going to bring those skills to this? Are you fairly handy?

-Yes. I trained as an electrician.

-Oh.

So that was my main trade when I left school.

Um... And I'm very, very handy with a hammer!

-A-ha!

-It'll come in handy here.

# You know it's time for the hammer to fall... #

'I'm not so sure about a hammer.

'I think a mop would be better, to soak up the damp.

'But James' electrical qualification and roofing skills

'mean he'll be able to tackle a lot of the work himself.'

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

-Initially, I'll strip it back to the bare bones.

-There's a lot of damp.

-There is.

-It's been neglected for a year.

So, do that, rewire, new plumbing.

Move the bathroom, make the bedrooms bigger.

Basically, jazz it up. New kitchen et cetera and bathroom suite.

There is a lot of damp. Any ideas what's causing it?

Well, being a roofer, I've had a look at the gutters.

They seem to be falling in the wrong direction and overflowing.

-So what about a budget?

-Budget, I'm looking at spending no more than 7,000.

That's including solicitors' fees, so it gives us 6,000 to play with.

I think I can keep it under that. I'm going to use the internet to purchase most of the materials.

'James is hoping to source an ex-display kitchen and bathroom,

'which he reckons he'll be able to pick up for around £600,

'as opposed to a couple of grand.'

-Anybody else helping you?

-Me and the girlfriend. She's going to help as much as she can.

-I'm not very good at tastefully decorating things.

-OK.

-What about a timescale for getting it sorted?

-Two to three months.

-OK.

What's the plan? To do it up and sell it or try to rent it out?

-I'm going to live in it first.

-OK.

-Make the most of the pub down the road.

-OK!

Hopefully, while I'm living here, I'll see what other properties are available.

Then when I find one, I'll put this one up for sale.

Get the next house on the back of this one.

Then, hopefully, in about ten years,

I'll have a house that's paid for that's mine.

-Congratulations.

-Thank you.

-Good luck, and we look forward to seeing how you get on.

-Appreciate it.

James seems to have the skills required to sort this place out and we wish him well.

However, I am a bit concerned that, when done up,

it might not deliver him the returns he's hoping for.

You can find out what happens later in the show.

'Coming up, a puzzling Kent property with a huge plus point.'

You cannot take away from the fact

you've got the most corking sea view.

'In County Durham, did this property unleash James' inner perfectionist?'

I couldn't leave it in the state it was.

My reputation goes before me.

'First, in Wimbledon, did Dominic's flat prove to be his muse?'

The screenplay came virtually within the first two weeks.

'We're back in Wimbledon, London, where we met fledgling filmmaker Dominic.

'He paid £257,000 at an auction for this one-bed ground floor flat

'with a rather puzzling layout.

'His plans - to rearrange, renovate and make this place his home.

'He also had hopes it would serve another, more unusual purpose.'

I have an ulterior motive in renovating my place.

-I want to use the time to write a script.

-For...?

I'm thinking making some kind of black comedy or horror film.

You bought this flat so you'd get thinking time

-to spend on your horror film?

-Exactly.

-That's a first!

I've been doing this programme a long time and nobody's ever used that as an excuse. I love it!

'But just over six months since we last met,

'will I love what Dominic's done here?

'Has it been a fairy tale or a horror story?'

# Don't be scared because it's just not real

# I love the horror movies

# Monsters and ghouls are just so groovy

# I love the horror movies

# I love, I love... #

'And I do love what Dominic's done.

'What was the kitchen is now the bedroom.

'What was the bedroom is now the kitchen.

'The whole place flows so much better,

'thanks to that clever reconfiguration.'

I'm standing in what was the bedroom when I bought the flat.

I wanted to make the bedroom part of the living room

and turn the bedroom into a kitchen.

To achieve that, I took down part of what was a solid wall here

and made that a nice large opening.

Then blocked up what was the entrance to the hall,

but left a space for light to come through a glass panel.

What I got was a nice big through-space,

nice and airy, nice and bright.

It really got rid of that feeling of claustrophobia,

which wasn't great when I first came into the flat.

'He did say he wanted the wow factor

'and I think that's just what he's got.

'The separate bathroom and loo have had a makeover.

'Just off them is access into the garden -

'and what a gorgeous garden it is now!'

# My garden, so lovely

# So lovely, my garden... #

'Dominic must be over the moon.'

The garden is my favourite part of the flat.

I've spent a lot of time there, sorting out the planting.

The moment the grass went down, I knew I was onto a winner.

It's just fantastic to be out there.

I didn't realise at the time quite how important it was,

but it's turned out to be vital to the overall scheme of things.

'And that's not the end of the story here.

'With dreams of writing a movie,

'did the creative process of carving up this place

'make him creative elsewhere?'

I'm very pleased to say

that the screenplay came virtually within the first two weeks.

Just as I was knocking down the walls, all the ideas came.

I went away, perhaps took one week off, and wrote the whole thing out.

I got it bang on the money.

So that was a nice by-product of doing this.

'But was he bang on the money when it came to his renovation budget?'

Well, I went over my original budget of 15 grand.

It's turned out around 25,500.

It was more than I expected to spend but, in the end,

I'm happy with the final result.

'So, he went over money-wise,

'but he did the work within his six-month timescale.

'That £25,500 budget, added to the £257,000 he paid at the auction,

'brings his total outlay here to £282,500.

'We invited two local property experts to have a look around.

'One of them is seeing it for the second time.'

I'm quite overwhelmed. What a transformation!

It's light and airy. I can't believe the transformation that's been done

quite simply by providing so much more light.

It's really a lovely job he's done.

It's a nice little flat. It's clean, tidy, bright, well proportioned.

And quite spacious, even though it's smaller than it looks!

'Making the place seem bigger than it is is an impressive feat.

'Dominic bought this flat for himself to live in,

'but if he changed his mind, could it be a healthy little earner?'

In terms of renting, it should rent very quickly.

About £1,200 a calendar month.

As a rule, a one-bedroom garden flat,

in walking distance of all the facilities in Wimbledon,

would certainly be able to fetch about £1,000 per calendar month.

Well, I haven't researched it, but I suppose that could be about right.

Hope I don't have to do that!

LAUGHS Cos I quite like the way it is.

I'd be heart-broken if I had to see somebody else going in.

But that's nice to know.

'Will the sales values be just as "nice"?'

For resale purposes,

I would expect to achieve around £325,000 in the current market.

I would put this property on the market right now for around about £359,000,

looking to achieve around about 350.

Ah! Really? OK.

That's surprising. I wasn't quite expecting that much.

350? Wow! That's great. At least I didn't lose any money, which is always good to know.

'No, Dominic. You certainly didn't lose.

'In fact, if he opted to sell, he could make himself

'a pre-tax and expenses profit of between £42,500 and £76,500.

'I think his love of his new home

'means he won't be going anywhere any time soon.'

Not at the moment, no. I don't think so.

In every single way, it's turned out to exceed my expectations.

This is Margate in Kent, a stunning stretch of coastline,

but with a town that has seen better days.

It's such a shame, because Margate has got so much to offer -

sea, sand and gorgeous Regency terraces.

But it's been on the up for years, without ever quite getting there.

But maybe now, real regeneration has reached the town

with a high-speed rail link into London

and the arrival of the Turner Contemporary Gallery

painting a brighter picture for the future.

# If I were a painter

# And could paint memories... #

'Turner, one of Britain's foremost landscape painters,

'was a regular visitor to Margate during the 19th century.

'Whilst he wouldn't recognise the boutiques and gastropubs

'beginning to spring up in the spruced-up old town,

'the land and seascapes still weave their magic.

'Just a few minutes from Margate town centre

'is an area known as Cliftonville, overlooking the sea,

'and the destination for today's auction lot.'

The quality of light may have drawn Turner to Margate all those years ago,

but today, what is there to attract a property developer?

Well, there's this -

a former Chinese restaurant on the ground floor,

with three storeys of residential accommodation above.

Also, a guide price...

of 60,000 to 65,000.

Ooh. I wonder if inside is sweet or sour.

These premises have been closed for three years

so it's all rather dilapidated and dirty now.

Saying that, look at all this space!

For a terrace, it really does go on for ever.

There's so much space behind this counter.

You've got loads of light coming in from there.

This big window at the front and, whatever you think about this place,

you cannot take away from the fact

you've got the most corking sea view! Fantastic!

# Go down, down to the sea

# Down to the ocean She's calling to me... #

'A seaside eatery lying empty makes me wonder.

'Why has no-one else taken it on?

'What business might work in this location?

'Is there passing trade? Lots to research.

'On the other hand, you can't deny the floor space on offer.

'That ground floor restaurant area is huge.

'That story continues upstairs on the first floor,

'where there's a living room which stretches from front to back.

'There's a somewhat shabby kitchen, along with a balcony,

'which would be lovely on a sunny summer morning.

'The bathroom is on the half landing

'and then it's up to the second floor, where the bedrooms begin.

'There are three here, all in need of refurbishment.

'And then, on the very top floor, a further three rooms.

'Wow! An epic amount of space for that £60,000 to £65,000 guide price,

'but an epic amount of work needed.

'So, what are the options here?'

You might well be thinking, "Massive building! No garden!

"Busy location. How about splitting this into separate units?"

That is a complete non-starter,

since the council currently have a moratorium on the creation of flats in this area.

They feel there's an oversupply in Margate.

With the town hoping to appeal to families and professionals in the future,

they're unwilling to see large properties like this carved up.

I can see the sense in this decision, but this lot would have been perfect as four units

to, perhaps, let to young couples who don't mind lively nightlife -

which is literally on your doorstep.

'It's worth bearing in mind that there's a busy road,

'a popular night club, a casino and a kebab shop nearby.

'Great, if you're after a lively social life,

'but it probably wouldn't attract families

'or those looking for a relaxing holiday.'

This property is troublesome. It doesn't quite fit any particular use.

Family home? No. Flats? No chance.

Holiday lets? Not quite.

It feels like a lot that's stuck in limbo, unsure of which way to turn.

A lot like Margate itself, in fact.

The bones are there, but the regeneration has yet to put flesh on those bones

and make it a popular place to be.

But that's not to say it won't happen.

When you have the housing stock, the views, the potential like Margate,

I think it could only be a matter of time.

Until then, invest your cash by all means,

but be prepared to sit on your investment.

Because the future is where the profit is.

'With a guide price of £60,000 to £65,000 for this property,

'a lot of patience and a long-term plan seem essential.

'We asked a local property expert

'if he could see the potential uses for this Chinese puzzle.'

This property's quite run-down.

It needs real tender loving care to bring it back to its former glory.

I think this property is ideally suited

to be turned back into a family house.

Personally, I would lose the commercial side of the property and make it one family home again.

I think, at the moment, the holiday let market

wouldn't be ideally suited for this type of property,

just because of its location with the club and kebab shop nearby.

'We're agreed on that, and you do need to think long-term.

'Unlike me, he doesn't have reservations about this being a family home.

'So, on that basis, what could it be worth?'

I think, refurbished into a four-bedroom family home,

it's going to be worth in the region of £130,000 to £140,000.

As a family home, You could rent it out for around about £700 per calendar month.

I think anybody who's interested in this lot

has to put their faith in Margate itself,

and hope that the future is as bright as the weather.

Let's see who that was at the auction.

Where do you want to start me? £60,000? At 60.

Got to be worth £60,000. Start me at 55.

55, we're on the way. At 55. 58, now?

58, sitting on my left. 60, it's against you. 60, it's with you.

And two? I've got 65 behind. I'll take 67 from you, if you like.

67. And 68? 68 I've got now.

Make it... 80 on my right hand side.

82? It's against both of you in the middle.

82 I've got. 84 anywhere else?

84,000? It's going to be sold. It's in the room. It's just who's going to buy it.

At £82,000, sitting on my left. Make no mistake.

For the first time at £82,000.

For the second time at 82,000.

If you're sure you're all done. It's going to be sold at £82,000...

-BANGS GAVEL

-It's yours, sir, at 82.

'That successful £82,000 bid was made by property developer Geoff,

'who owns around 25 properties in London and Kent.

'I couldn't wait to hear about his plans for his newest purchase,

'so dragged him away from the sunny seafront, so he could tell me all.'

-Geoff, congratulations.

-Thank you.

-I think you got a lot of house for the money.

-That's true.

-Yes.

-Why did you want to buy this in Margate?

Because I already own the building next door

and I know it can be transformed with the right amount of energy

and expertise from a builder - and money, of course.

I'm hoping that the same can be done with this.

So you've really seen the potential.

There's enormous potential in Margate. This is why I'm concentrating on Margate.

Such transformation's taking place even just over the last six months.

I think that will have a ripple effect through the rest of Margate.

-It's going to be a slow process, but it will come about.

-You loved it enough to buy another property here.

-A Chinese restaurant's not for everybody, is it?

-No.

I don't know what I'll do with the restaurant, initially.

I might try to contact many Chinese restaurant businesses

around the southeast of England, but also in London

and Chinatown itself, and try to encourage people to set up a...

probably a noodle house format here, I think that would work best.

What IS your plan for this building?

Initially, I'll be concentrating on the three floors above,

which is going to be turned into a five-bedroom holiday apartment.

Surprisingly enough, you think, "Who wants five bedrooms?"

But there's a lot of demand for that sort of property

which suits a family or perhaps two families sharing a holiday together.

But do you think this is the right location for a holiday let?

I know you've got the sea view, but it is in between a night club and a late-night takeaway.

-HE LAUGHS

-Why do you see it as a holiday let?

I don't think that's too big an issue.

Being convenient to the sea and having delicious sea views more than make up for any inconvenience.

'Geoff renovated the property next door as a holiday let,

'so does have knowledge of the local market,

'as well as 25 years' experience in developing.

'But I can't help thinking the restaurant downstairs,

'as well as the proximity to the nightlife,

'may put holidaymakers off.

'He's set a £20,000 to £40,000 budget.

'I reckon he'll spend closer to the upper end of that,

'given the sheer scale of this project.'

-So how many bedrooms above?

-I suppose we'd say five bedrooms.

We need an extra bathroom.

I haven't decided which room will become the extra bathroom.

-Would you like to have turned this into three separate flats?

-No, I wouldn't.

I think I'd probably make a better return having three separate flats.

They can be let happily enough right around the year,

but I think it's much nicer to try and bring more people into Margate,

more outsiders who want to sample the life of Margate!

'I love that Geoff's enthusiasm is more about Margate than the money.

'I'm sure he'll get just as enthused about the work to be done here.

'There is a lot of it, and he's set a timescale of around six months

'to get the upper three floors ready for letting.'

I just don't see this as a holiday let.

Unless you're a clubber with a penchant for noodles and kebabs,

I think this is better off as a long-term rental.

Geoff loves Margate, and passion is key to developing,

but I hope he goes down the right route here.

Find out what happens later in the show.

We hope work will be well under way when we return.

Will there be brick dust and ladders all over the place,

or will the properties look brand new?

Let's go back and find out.

'Back, now, to West Auckland in County Durham,

'a town with the proud history of winning the first football World Cup

'twice in successive competitions.

'James paid a startlingly low £25,000

'for this two-bed end-of-terrace.

'It was just as well that he was a roofer by trade,

'as this house was wetter on the inside than the outside.

'There was loads to do, but James definitely had the power to transform the place.'

Are you going to bring any skills to doing this? Are you fairly handy?

-Yes, I trained a an electrician.

-Oh!

That was my main trade when I left school.

And I'm very, very handy with a hammer.

# Hammer time! #

'Well, that's always handy.

'James had set a budget of £7,000, including his legal fees.

'He planned to use internet auction sites to source a new kitchen and bathroom.

'Well, five and a half months have passed,

'and back in West Auckland

'the outside of the house has a much smarter appearance.

'But will it have a drier INSIDE?

'Downstairs is certainly looking much more homely and welcoming.

'Upstairs, the layout at the top of the stairs has changed.

'Those cracked doors that I'd been worried about have been replaced,

'and this super new bathroom's been created

'by taking some space from the front bedroom.

'The bedroom's still a good-sized double,

'and James discovered this stone fireplace behind the plaster.

'The new layout allowed him to knock the former bathroom

'and second bedroom into one much more practical and larger bedroom.

'As he explains, getting rid of the damp needed structural changes.'

If you can remember, this used to be two rooms -

a bedroom went this side and a bathroom behind me.

When we took this dividing wall out, we found the roof was over-spanned,

which means that this joist wasn't able to take the weight.

We had to prop the ceiling up downstairs and prop this roof up.

Then we were able to take this joist out and replace it with the correct size.

Doing that caused another problem.

The Velux windows weren't fitted correctly, allowing water in, causing a lot of damp.

So when we'd fitted them correctly,

we were able to start plastering cos everything was sound and dry.

Being a roofer, I couldn't leave it. My reputation goes before me.

I had to have it right.

# Cos if you get it wrong, you'll get it right next time... #

'This former damp house has dried out very well.

'To cure the damp downstairs, the damp proof course needed replacing

'and one metre of plaster had to be removed.

'James' auction site kitchen units look great!'

The kitchen was a GREAT deal.

I got it from a couple who'd closed a store down in Manchester.

500 quid, ex-display! The only thing that I've added is the work tops.

I just wanted that bit of glitz.

'Well, it all looks very swish...

'..and complements the slate grey floor.

'James has laid an oak floor in the living room,

'and as he was removing the plaster to get rid of the damp,

'he made another discovery.'

Well, this lovely stone fireplace was a real surprise to us,

an original feature we uncovered doing the damp proof course.

It's taken a lot of time to get this and the one upstairs

restored to the condition it is now.

It's not perfect, but we're really pleased with it.

'The property's right on the busy A68 road

'to the beautiful North Pennines,

'and the only outside space is shared with neighbouring properties.

'Even so, James has put a new door on his shed.

'It's taken him six months to get to this stage -

'twice what he'd anticipated, but as he's fitting the work around his full-time job,

'that's still good going.

'But what about his budget? Did he manage to keep to that?'

Well, I originally estimated it would be about 7,000.

It's come in at just over 10,000, 10,400, but that's including fees.

If I put MY wages in, it'd be well over, but that's the reason it's low.

'So, James' total investment stands at £35,400.

'Buying this place is all part of his long-term plan.'

I'm going to be moving in for a little while.

When I decide to move on, I will probably sell it,

to release the equity to buy the next one.

'We asked two local property experts along

'to hear their verdict on how he's done.'

The highlight of this refurbishment

would be the bathroom, for me.

It's been done with nice fitments and looks very modern.

He's done a nice job on the property.

The workmanship right the way through is to quite a good standard.

He's kept all the original features

and added a few luxury touches, which I think's nice.

I think this property would appeal particularly to first-time buyers.

To the standard that it's been done up, they would like to move in and put their own things into it.

'If James decided to look for tenants, what could the rental income be?'

I think this property would achieve in the region of £425 per calendar month.

I would expect to achieve around about £425 per calendar month on this property.

'That would achieve a yield of over 14% on James' investment.

'Very impressive.'

That's more than I was expecting.

I was expecting around 400, so I'm quite pleased with that.

'How much do the estate agents think the house could be worth?

'More than the £35,400 that James has invested here?'

I would put this property on the market at £75,000, because it has been done to a very high standard.

I would value the property in the region of £75,000.

It is higher than I expected prior to coming into the property,

due to the size and location.

However, having come in, the high internal specification

does mean that I think he could achieve a slightly higher price.

'Given it was originally projected to be worth 45,000 when renovated,

'their amazing valuations reflect the quality of his work

'and the improvement in the market round here since James bought it.

'He could now make a potential pre-tax profit of £39,600!'

75,000? Well...that's over and above what I expected.

I was expecting to sell it for about 65,

if that, so I'm over the moon with that.

If I get close to it, I'll be happy.

'I admire James' long-term vision.

'He sees this house as a stepping stone along the way to being mortgage-free.

'Judging by the way he's turned this previously very damp and dismal house around,

'I reckon he's right on track.'

I'll try and get it sold as quickly as possible.

I'm quite happy living here until it does sell,

then move on to the next one and move into that.

Hopefully, do the same. That's the best news I've had this year.

I'm over the moon. All that hard work's paid off.

# Go down, down to the sea

# Down to the ocean She's calling to me... #

'We're back in Margate now.

'Just outside the town centre lies Cliftonville,

'where earlier I met Geoff.

'He's a property developer who paid £82,000

'for this huge terrace property at auction.

'It comprised an old restaurant

'with three floors of residential space above.

'It came with huge amounts of renovation and restoration to do,

'but Geoff was the ideal person to take it on.'

Why did you want to buy this in Margate?

I already owned the building next door

and I know it can be transformed with the right amount of energy,

expertise from a builder and money, of course.

I'm hoping that the same can be done with this.

'Experience behind him, he planned to turn the upper three floors into a five-bedroom holiday apartment.

'We last saw him just under one year ago,

'so have returned to see how he tackled this tricky property.

'OK. So, not as far along as I would have liked to see,

'but don't be fooled.

'On the upper two floors, the plaster has been replaced throughout

'the roof, which had some leaks, has been repaired,

'and the paintwork's been started.

'The biggest change, though, is on the first floor.'

First of all, took down the wall here,

which was separating that into a little kitchen, but far too small a kitchen.

It was really quite grotty.

That was quite a quick and easy job, to take down the wall.

The really challenging work here was to level the floor.

It had quite a sag to it because the joists weren't sufficiently strong.

We've fitted the kitchen, mostly, as you can see.

The sink unit needs to be put into position

and the cooker top needs to be cut out,

but the electrics have been done, the plumbing's been put in and it's pretty much ready to go.

'Once it is, I think this will be a really wonderful room.

'Before, the kitchen was tiny and no good at all for a five-bed property.

'Also in short supply were toilet facilities,

'as there was only one loo.

'But Geoff's got a plan for a second one in another room

'which has waved goodbye to a wall.'

The major change here is there was a wall dividing the two bedrooms -

double bedroom here, single bedroom there.

I thought it would be good to have one main master bedroom.

The feature's going to be an en suite bathroom in this corner.

I think this will be a really attractive, spacious master bedroom.

Two windows with direct sea views, as I keep on harping on about.

So we're almost in.

'A master bedroom with such stunning views will be a great selling point,

'once he's in a position to start letting this.

'He had hoped to have everything completed within six months,

'but we're here almost 12 months on and it's not finished yet.'

We were later starting work here than initially intended.

The place was left virtually empty for a good four or five months.

Just a few months ago, we started renovation work in earnest.

So far, we've spent about four months and there's still one or two months remaining.

It would have been nice to have made an earlier start, but different factors didn't permit that.

'Things don't always go to plan in property development

'so it pays to be flexible.

'Geoff's experienced enough to know that he needs to take his time and get the job done to a good standard,

'rather than trying to catch up and take short cuts,

'which can cost more money later on.

'The disadvantage of the delay is he'll miss this season's holiday rental market.

'He may have to change his plan and rent it out on a short lease.

'And hopes for that noodle bar are on hold for now.

'He had planned to keep his spend to £20,000,

'but had a contingency of up to 40.

'How has that gone?'

Fortunately, I think the budget's going to be well within the limit.

At the moment, I think I've spent about £15,000.

I think it's going to come in roughly £25,000 to £30,000, which is quite acceptable, I think.

'Geoff purchased the property for £82,000,

'and his max spend, when the project's done and dusted,

'will be £30,000, making his total outlay £112,000.

'Time to invite two local estate agents to inspect the work so far.'

The change he's made to the layout

is maximising the space available.

For the purpose of what he's trying to achieve,

I think it's a good mix.

Making it open plan is a very good idea.

Modern living does encourage open-plan living.

So an open-plan kitchen-lounge is a good idea.

I'd like to see the top two bedrooms knocked into one bedroom as well.

Offering panoramic sea views is a really good idea.

'That's their take on the property, but what do they think of the future financial picture?

'Firstly, as a five-bed holiday rental,

'how much could Geoff let it for per week?'

I would expect him to achieve between £150 and £200 per week.

In terms of what he could expect for a week's holiday let in high season,

I would think, possibly, about £400 per week.

Oh, see, that's...

It's not 150. I don't think it's 400, either.

I think it'll be, perhaps, 300 a week in the peak of the season.

'That disparity in valuations comes back to very differing opinions

'on whether this really is a suitable holiday let.

'How about rental for the restaurant?'

If he was to let it as a commercial property, he would expect between £8,000 and £10,000 per annum.

I wouldn't think he would achieve any more than £5,000 per annum.

Perhaps £5,000 if I want to let it very quickly,

but if I'm prepared to be patient and wait up to another year, then I think more towards 10,000.

'If Geoff were to sell the property as a whole, once finished,

'they recommended a sale price of between £150,000 and £180,000.

'With his total £112,000 outlay here,

'his pre-tax and expenses profit would be between £38,000 and £68,000.

'Sounds good to me, but what about Geoff?

'Was he glad he took on this whopper of a property?'

We're getting there, so on the whole, I'm very happy with it.

I'm glad I took on the challenge and I just hope that things will continue to improve in Margate.

That's it for today's show. Join us next time on Homes Under The Hammer.

We'll have more intriguing properties and ambitious buyers for you.

-See you then.

-Goodbye.

-Goodbye.

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