Episode 17 Homes Under the Hammer

Hello. Now, we are always being told to save for our future.

Yes, people are searching for ways to add to their pensions.

Property could be one option and the auction rooms are the place to head for.

If, like us, you're hoping that property will be a safe investment, you need to buy wisely.

That means doing your research and sniffing out those deals.

So did the buyers on today's show do just that? Let's find out.

In Cumbria, this two-bed terrace doesn't give me

any lofty ideas until I get to the top.

This would almost be my favourite room in the house.

This three-bed semi in Middlesex has plenty going for it, but it's not all adorable.

Look, cupboards here, doors, sliding action, it is all going on.

The real joy of this place in Lincolnshire isn't the tired bungalow, but its huge garden.

If somebody wanted a bit of space in the country here, it doesn't get much better than this.

All these properties have been sold at auction

and we'll find out who bought them and what they paid for them when they went under the hammer.

You, sir, well done.

This lovely rural setting in Cumbria is a place

that owes its existence and name to Isaac William Fletcher,

who started a coal mine here in the 1870s.

Today, I'm in the small rural hamlet of Fletchertown near Wigton in Cumbria.

Not much more than a couple of streets of houses built to house workers in the local mine.

The property I'm here to see is an end terrace.

It has a guide price of £30,000-£40,000.

Do you know what? From the outside, it doesn't look half bad.

There's a bit of a porch area to keep out the Cumbrian weather,

then it's into your front living room.

It looks OK. There are doors lying around all over the place. Somebody has started renovation.

Stairs in the middle here leading up to your bedrooms and through to the rear of the property,

where somebody has relocated the kitchen.

It works. I like the breakfast bar area and although the units are tired and dated,

I would keep the layout as it is. New units in here and it will make all the difference in the world.

And there's more.

The layout of this kitchen does work

so it's ten out of ten for that.

Unfortunately, there are plenty of signs of work begun but not completed.

The downstairs bathroom gets no points for layout

and how many marks out of ten would you give the avocado suite?

Upstairs, there are two reasonable sized bedrooms

and more signs of work started.

There is a lot still to do like tackling some of the rotten floorboards.

However, the cast-iron fireplaces are a real bonus.

So far, this place seems like a good buy for that guide price of £30,000-£40,000.

And there's more. There's a well-worn staircase.

It looks a bit rickety to me, but just for you, I will tread carefully.

The stairs may be a bit dodgy, but what they lead to certainly isn't.

It's a real find.

A window, for a start, which is throwing light into a surprisingly nice attic room

obviously been created at some point.

I doubt it was originally here in the property,

but somebody has done a nice job of turning this into a really useable space.

You've got the roof light, you've got the window there. Get the stairs sorted out

and then this would be one of my favourite rooms in the house.

The auction catalogue describes the house has been laid out over three floors

with two bedrooms and a "useful" attic room, which would suggest that the loft conversion

doesn't meet the strict building regulations to qualify as a third bedroom.

But even if you didn't want to spend a vast amount of time or money

making it regulation compliant, it's still a terrific indoor space.

Outside, at the front, the pebble dash seems OK and there are double glazed windows.

What is the situation around the back?

At the rear of the property, it is a bit shabby.

You have this lean-to and this extension,

which houses the bathroom and loo, and this dog kennel.

It looks like it could do with knocking down, but it is functional.

You could put up with it.

Through the little courtyard there onto this back alley area and open countryside at both ends.

That's why you're going to buy this place.

The rural location is great,

but Fletchertown doesn't have a DIY store.

So you would need transport to get to the nearby town of Wigton for your supplies.

# If you are working on your house or working on a shed

# If you are building up a rock or flower bed

# Whatever you need and a whole lot more

# They've got it all over at the hardware store. #

To investigate the potential once a refurbishment has been done,

we asked the auctioneer who sold the property

to come and have a look at it.

What are his thoughts on this two-bed house that went to auction guided at £30,000-£40,000?

The positives with this property is that it's priced well

therefore it's very affordable.

Good-sized rooms and good number of rooms, well proportioned.

If there is a downside to this property, it's where it is situated

in this small hamlet where you would need a car.

There are bus routes, but it's not walking distance to any larger conurbation.

And if you have got a car, across the road is a very useful parking space.

Once the house has been refurbished, how much could it sell for?

Once renovated, this property could achieve a figure approaching £80,000

If the new owner's a buy-to-let investor and looking to rent it out,

what sort of income could the place generate?

Once renovated and exposed to the rental market,

it would achieve a figure of around £400 per calendar month.

It needs a bit of work, but nothing too taxing

and you can't knock the location, so a good project for somebody.

Let's find out who that was when it went under the hammer.

Right, we're off to Fletchertown now. Let's get it away nice and quickly.

Do I see a hand at £30,000? It must be worth 30 to somebody.

30? 30 here. At 30 we're away.

30, I am bid. 31 over here.

32 may I see?

33, 34, 35, 36,

37, 38, 39 and 40.

One, two, shaking your head at two.

With you at 41. Take a half? And two. And a half.

Shake of the head at that. With you at 42.

43, 43 shall I say?

44, 45, 46, 47.

With you at 46, first-time, second time, put you out of your misery.

All done. All out.

Third and final time to you, sir. Well done.

That final bid of £46,000 was made by Paul who was at the auction with his girlfriend, Abby.

Paul's a self-employed electrician who lives about ten miles away in Aldoth.

I met him at the two-bed terrace to hear about his plans.

-Paul, great to meet you. Congratulations.

-Thank you very much.

Tell me why you wanted to buy this place.

Just seen it as a real investment opportunity.

I went to auction hoping it would go for the right price and I believe I got it for the right price.

Is this something you've done before?

No, this is the first one and hopefully of many. I'll keep going.

Is this your first house purchase per se?

No, I live at home with my father, but I bought this house

as an investment opportunity, not to live in myself.

Why this particular house?

I know the area. A lot of my friends live local to here

and they'll be doing quite a bulk of the work,

so it made sense to get somewhere quite close and it saves a lot of travelling.

It'll cut down on the cost.

Paul may only be 21, but this young electrician sounds pretty switched on as a developer.

He has thought about the extra costs that the inexperienced often forget to factor in,

like travel, and he has also carefully considered the long-term.

He plans to sell eventually, but in the short term, he's renovating for the rental market.

What are you going to do to sort it out?

I'm going to install a new kitchen, new bathroom.

There's quite a bit of plastering work to do.

A new floor on the first floor. It's rotten. It's not really safe.

There's quite a bit of work to the steps going up into the attic room.

-Who's going to do the work?

-I'll do as much work as I can as I am a qualified electrician.

I'll be in amongst quite a few other trades as well.

And also some of my good friends...

I've got someone in every line of work. It's ideal.

-That makes a difference, having a team in place.

-Yes, it does.

What work will you be able to do? You'll be doing the rewiring?

Yes, rewiring. I will run the central heating pipes.

Any decorating.

My brother's a joiner, hopefully he'll set us off and I'll be able to take over from that.

I want to have a go at everything. I'll be alongside the tradesmen throughout,

so I get a feel for it myself and learn as much as I can.

-Doing it alongside another job?

-Yes, I am self-employed.

I've got a job subcontracting for a couple of days and I'm taking a step back from that

to focus on the property and try and get it turned around as fast as I can.

Impressive stuff.

It sounds like Paul has all the get up and go required to build himself a great portfolio.

He wants to turn it over quickly. What does that mean?

Originally, I was thinking no more than three months, but I have just booked a holiday

so that'll put us back a couple of weeks.

It shouldn't be far off target.

-What about the budget?

-Hoping to come in about £14,000.

I'm not going to scrimp on things. I want it to be nicely finished off.

-What are you going to do with the lean-to conservatory?

-I'm undecided.

One option is to take it down and open it up as a yard.

The other option is to build up to it and extend, which some houses further down the street have done.

Planning should be quite easy to gain.

What about the future, what's next on the agenda?

Buy another as soon as possible.

I'll be going straight back to auction.

In an ideal world, how many properties would you like in five years' time?

My business plan is to have at least ten properties in the next five years.

Obviously, they'll be on mortgages, but, hopefully, I'll have folk renting to cover them.

-Good. Congratulations.

-Thank you very much.

-Good luck with it.

-Cheers.

-We'll look forward to seeing how you get on.

-Thank you.

What a great project for Paul's first foray

into the world of property investing and developing.

I'm sure he'll do just great, especially with the help of friends and colleagues.

Will this little lean-to area be here when we come back?

You can find out later in the show.

This is Hampton in Middlesex near Richmond upon Thames,

an old village which is a village no more.

It has a cool urban vibe with plenty of shops, eateries and some pretty good schools.

In fact, all that commuters could desire.

When Londoners move to the suburbs for that better quality of life,

they console themselves by thinking that the train journey

into town is short enough, it won't make much difference.

But they forget the schlep to the station,

which eats into valuable sleep time, but not in this case,

because Hampton Station is a brisk two-minute walk that way and the house is here.

It's got three bedrooms and had a guide price of £380,000.

That nearby station will whisk you to Waterloo in just 40 minutes, or 40 winks,

from this lovely quiet street and this charming Victorian semi.

I do like to walk into a nice reception area.

Wow! High ceilings, love it.

A bit dated, but you could really wow this place up.

Nice reception room. Not sure about those grey bricks, they might have to go.

Second reception room,

there could be a nice fireplace lurking underneath that board.

Corridor leading to the kitchen.

Loads of storage space. You could even fit a downstairs loo in.

A little cupboard. Oh, no, that is a downstairs loo!

Fantastic! It's always nice to have a loo downstairs.

You have got great space in the kitchen. All terribly dated, this needs to come out.

A bright new kitchen should go in. Look at these sashes. They are in great nick.

You could make this property spectacular.

I really like it.

It's a good start with the interior.

Outside, the garden is a decent size for a house like this.

With a bit of work, it could be made a welcoming haven on a summer's evening.

There is a lean-to, which I think would be better rebuilt as a part of an extended kitchen.

Upstairs is also dated, but far from disastrous.

The front bedroom is the full width of the house, nice and bright.

The second bedroom is also a lovely size and at the rear,

the third bedroom is small although usable.

But, and there is always a but...

This is the bit I don't like.

It's incredibly narrow, it's a bit dull, low ceilings.

Look, cupboards here, doors, slidey action. It's all going on.

What I think you need to do is get rid of this cupboard

because you've got a big water tank. Get rid of that. Have a combi boiler.

Take this away and you'll get a much nicer outlook as you come up the stairs.

Then you can afford to have a proper bathroom door, not this slidey old thing.

It would really improve this space.

Once you've done that, you can afford to knock the toilet and the bathroom together

to make a lovely big family bathroom. I think that would work.

That's a simple change to make in the grand scheme of things,

but is there a possibility of bigger changes?

You're expecting me to say extend to the side, go up into the loft,

spend the cash and push this place to the limits of its value.

But I am going to play devil's advocate.

What if you didn't do that?

There's an argument that says lots of buyers are reluctant

to buy a house that has reached its full potential.

They want to stamp their mark and do some of the graft themselves.

I'd speak to a number of local agents, but for a quick sale,

I think it might be worth doing the basics and walking away with a swifter, easier profit

and leaving the building work for someone else.

# And make it easy on yourself

# Make it easy on yourself. #

If you kept the changes to a straightforward refurbishment,

leaving scope for the new purchaser, it could make your renovation quicker and cheaper,

but still leave you with profit plus potential for your buyer to make a profit too.

But what does a local estate agent think

are the best options for this Hampton house guided at £380,000?

First impressions are pretty good. The overall condition is not bad.

It could do with some improvements, but I don't think

it's going to cost that much to bring it up to a good standard.

My recommendations would be to do a loft conversion. It is crying out for one.

The third bedroom is small so you would benefit

from converting the loft to create a nice master bedroom with an en suite.

You also have potential of adding on a side return

to create a really nice kitchen/breakfast room which is in demand at the moment.

So there seems to be a need for extended properties,

but would the returns justify the financial outlay?

What sort of resale value could an enlarged house achieve?

If the work was done with the side return and the loft conversion,

I would be suggesting an asking price of anywhere from £590,000 and £600,000.

If there was no extension and it was brought up to a really good standard,

I would suggest an asking price of around £500,000.

By doing a straightforward refurbishment it seems there's a decent profit to be made.

But that top price of £600,000 sounds even more attractive.

To get that, you'd have to get planning permissions, pay building costs and cope with the hassle.

I'm definitely for taking the easy route here. What about the rental options?

The rental income in its current condition would be around £1,400 per calendar month.

If you were to bring it up to a good standard

and extend the side return and do the loft conversion,

you could be looking at anything up to £1,800.

A lovely neat and tidy house and a neat and tidy investment.

I think so. Let's see who agreed at the auction.

Lots 88. £400,000 anywhere? How much?

OK, we'll start there. It is a good bid.

£380,000 I've got. Anybody else?

Thank you. 385. 390. How much? 392. OK.

392, 393, 394, 395, 396.

Yes, OK. New place 396. 397, 398.

The two interested parties were really batting for this lot.

We rejoin when the bidding reached £418,000.

418, 419,

£420,000.

420, 421, 422, 422? No, OK.

Bids for £421,000. Anybody else?

If not, 421,000 for the first time, 421 for the second,

421 for the third and final time. We all done?

Sold 421. Well done.

And those happy successful bidders who secured the lot for £421,000

were Heather and her husband David.

They live in Surrey where Heather works as a childminder

and David is a retired surveyor.

He wasn't available today, but I met Heather at the house

to discover their plans for what is her first ever renovation project,

though David has done some before.

-Heather, congratulations.

-Thank you.

-I really do like this house.

It's got such a welcoming feeling. How much research did you do?

Quite a lot. We have been here quite a few times.

We looked at it and planned it and found out what we would benefit by the schools,

the train, the lovely green, the river.

We thought it would be a good project for me to start on for the first time.

Tell me a bit more about you wanting to conquer the world of property developing?

I wanted to do something different and get involved in something I can do on my own

and make decisions and go through it all and see what the outcome is.

Do you feel confident doing it on your own without any help at all?

I will probably get advice from David, but it will be my say in the end.

We work well together anyway so it should be an exciting thing to do.

Tell me about David.

I've known David for 42 years and we've got a daughter, Gemma,

we got married last year after 42 years together,

so we had a very exciting wedding and that was it. That was last year.

It's our first anniversary and this has all happened on our first year together as man and wife.

# Love and marriage

# Love and marriage

# Go together like a horse and carriage. #

Congratulations to Heather and David on their wedding bells

however, I'm listening out for alarm bells.

As a first-time developer, might Heather be tempted to over develop?

How far are you going to take it?

There's quite a few options, you can go out to the side return,

you can go up into the loft, leave it as it is or knock out and try and extend out that way.

What are you going to do?

We're going to knock out the kitchen all the way back to the end of the shed.

We might do this. We're not going to doing a loft extension.

New bathroom, new toilets upstairs.

All wood flooring all the way through.

We're going to knock down the inner wall in there to make it a completely through lounge,

so you can see outside, that should be quite nice.

I thought you were going to say you were going to be knocking through here

because you got the side return.

My only thoughts with that would be that you might be a little close to the neighbours' wall.

We could get permission for that, but it will take longer for planning to go through

and we want to run this through in three months to see it to the end.

A three-month timescale and a budget of £35,000 is the aim.

I reckon they've made a sensible decision,

helping the saleability factor by creating a great living space

whilst still leaving scope for development by the next owner.

You do have another option, have you thought about selling it on as it is?

Not doing a thing, just turning a profit that way.

We were approached by someone to do that right after the auction,

but we decided that we would turn it down and do it ourselves.

-Somebody made you a private offer after the auction?

-The next day.

-Really? Do you mind asking how much more they offered you?

-475.

-£50,000 extra?

-Yes.

-£50,000 for doing nothing and you said no? Why?

-Because you think you could make more?

-Yes, maybe she was thinking the same as well.

-You thought I'm going to hold onto this one.

-Hold onto that one, yes.

We did our paperwork, worked it out and we thought no,

we'll go ahead and do it because we wanted to do this as a project.

-Good for you for sticking to your guns. Congratulations.

-Thank you very much, Lucy.

So Heather turned down 50 grand to take on this project.

I'm not sure I could have managed to do the same.

Still, I'm sure the house will be fab when she's finished.

You can find out how it goes later in the show.

Coming up in Lincolnshire, this tired bungalow may be small, but it is rather confusing.

I think it must be the kitchen because there's a sink here, but there's nothing else.

In Hampton, Middlesex, how did Heather and David get on with their renovation?

We're very proud of each other that we have succeeded in doing what we've done.

In Cumbria, it seems this renovation's taught Paul the most important lesson.

I have learnt a lot. I've learnt how much things costs for instance.

We're back in the Cumbrian countryside in the hamlet of Fletchertown.

21-year-old Paul, an electrician by trade, had bought this two-bedroom terrace

with an attic for £46,000.

He was hoping for a future in property developing.

Is this your first house purchase per se or have you got your own home?

No, I live at home with my father but this is an investment opportunity.

What are you going to do to sort it out?

I'm going to install a new kitchen, new bathroom,

a new floor on the first floor as it's rotten and it's not safe.

There's quite bit of work to do on the steps going up into the attic room.

What about the budget?

I'm hoping to come in about £14,000.

I'm not going to scrimp on things, I want it to be nicely finished off.

With help from his family and friends, Paul planned to refurbish

the place in three months and would then be looking for tenants.

It's now seven months later and back in Fletchertown,

Paul's keen to show us the finished house that his close team have helped to transform.

The finish is absolutely fantastic on all three floors.

I'm glad to see the downstairs bathroom has gone

and is now a smart utility room that matches the stylish kitchen.

In here, we skimmed the whole place, brand-new kitchen

and next door there was a dividing wall to what used to be the bathroom,

ripped that out, re-plastered again and made that into a utility space,

which I think works well.

The old lean-to has been demolished,

the back door and all the windows have been replaced too.

Paul's kept a cottage feel in the living room

with a log burner and oak beam. Very nice indeed.

Upstairs, the floorboards needed replacing in the two bedrooms.

But that's not the main difference up here.

The main changes is we brought the bathroom upstairs.

Originally, there was just two bedrooms.

We took the largest of the bedrooms, divided into two

and used the space really well to make one small bedroom and a decent sized bathroom.

Paul discovered that the attic complied with regulations and could be classed as a bedroom.

But he still relocated the door to improve access

and moved some overhead trusses to increase the head height plus he added a radiator.

Paul's a qualified electrician and, with help from friends in other trades,

he's done an impressive refurbishment here.

He paid £46,000 at the auction and had set a budget for £14,000

He was keen to learn from the various tradesmen who were going to help out.

I have learnt a lot, how much things cost for instance.

Also, halfway through the project, I decided to move in myself

which meant the finish was to a higher standard.

I went over substantially maybe £28,000.

That means Paul spent double his initial £14,000.

It brings his total investment to £74,000,

but he's about to move in and make it his new home with girlfriend Abby.

They've taken some time to have the odd holiday and give this stylish house the personal touch.

I've put colour change and mood lighting in the kitchen,

plinth lights and unit lights just to give it that finishing touch.

It's a great location and with views like this from the front bedroom,

I can see why Paul's decided to move in and make it home.

I just love the area, the neighbours, great views, handy for the Lake District.

It seems the perfect house to move into.

We invited two local estate agents

to come and have a look at the finished result.

What will they make of Paul's refurbishment?

When I walked through the door today, I was pleasantly surprised

by the work that has been done on the property.

The quality of the fixtures and fittings is outstanding and the attention to detail is high.

My first impressions when I walked in

were it was quite a large, bright, airy property.

It has got a really high spec bathroom and kitchen.

On the saleable market, it would do very well.

Paul's initial intention was to let the property

and have this as his first buy-to-let investment.

How much income could that have earned?

I think the property would rent easily given its three bedrooms.

I would be looking to achieve £400 per calendar month.

I would expect to achieve £375 to £400 per calendar month.

Those valuations would have generated a yield of over six percent.

Originally, when I was going to rent it out, I did have a tenant lined up.

Unfortunately, I had to let him down.

That was what he would have been paying so I'm happy with that.

How is the sale value of the house now looking?

Is it worth more than the £74,000 Paul's invested?

I would value this property at £75,000

possibly with the quality of the fixtures and fittings, £80,000.

I would be looking at marketing the property at about £90,000.

A potential profit of between £1,000 and £16,000 before taxes and expenses.

Figures Paul was expecting?

I'd be looking for a bit more than that,

but hopefully that's when the market picks up. We'll see how it goes.

Paul's refurbishment has brought the best out of this house

and it is good to know that along with his girlfriend,

he'll be enjoying all the benefits of his hard work.

But what about his ambitious portfolio plans? Are they on hold?

I'm looking for another property to rent

so I will be continuing in property, but this one's mine.

I'm staying here.

What are the ingredients for the perfect village life?

Peace, but with a lively sense of community?

Good, independent shops, even a quaint old English pub.

If that's your idea of perfection,

Welton in Lincolnshire could be just the place for you.

So what am I here to see in this village that has it all?

It's one of my favourites, a 1930s bungalow.

They often have great scope for improvements

and they are a great place to live more often than not. This is it.

At a guide price of £95,000, two bedrooms. Let's take a look.

It is not instantly attractive,

I don't think the exterior has changed much over the past 80 years.

A splash of paint would fix that.

It's got off-street parking and a good sized front garden.

So what's on offer? A fairly tight entrance.

Let's see if it gets any better.

Lounge over to that side, that's a reasonable size.

Second lounge area there, then through to the rear bedroom.

Hang on a minute! That must be the other bedroom.

Erm...OK.

This internal layout is getting very strange.

This rear area here, which I think it must be the kitchen

cos there is a sink here, but nothing else.

There is an annexe at the back. You've got a bathroom there.

A separate loo over there.

Come on, what's going on with this internal layout?

It's as if you'd want to remove all the internal walls and start again.

It's small, but it's not perfectly formed.

Small and badly laid out.

It doesn't have the same ring to it, does it?

But it is a 1930s bungalow and I don't think it has seen many changes since then.

Plenty of work to do, but don't write it off as all doom and gloom.

One of the wonderful things about this house is this garden. Look at it! Absolutely huge.

Why don't they build houses with gardens like this any more?

Because space is at a premium. You've got apple trees, a vegetable plot. It's fantastic.

You might think it ends here, but it doesn't.

This little orchard at the back is absolutely fantastic for a garden enthusiast

or somebody who wants a bit of space in the country.

It doesn't get much better than this.

A huge garden, a small two-bedroom house with a guide price of £95,000.

Is there a development opportunity here? A way of building another house on this huge plot?

Well, no, there's no access for starters.

Sometimes, you've got to hang up your developer's hat and sit back and enjoy the scenery.

Wait! Who am I kidding? Of course there's an opportunity.

So, listen carefully.

Do you want to know how to treble your money on this place?

Add about £30,000 onto your renovation budget, add a couple of bedrooms

and an extension on the back and you've got a family home.

The family market here is extremely good.

People want to live in this area. Who wouldn't?

Maybe this 1930s property can make some 21st-century profits.

# Happy days are here again

# The skies above are clear again. #

I think this 1930s bungalow guided at £95,000 has great potential.

But what does a local estate agent reckon?

It does require quite a lot of modernisation.

Kitchen, bathroom, re-dec throughout

just to bring it up to modern day standards.

Upgrading the bungalow might do for those on a limited budget,

but could value be added here?

A lot of properties in this area have extended

and I think, potentially,

going out the back or even up into the roof space would certainly

make it a much more valuable, and probably saleable, property.

'So, if you stick with the floor plan or add an extension,

'what sort of resale figures could be achieved?'

I think if you literally just refurbed

the property as it is in square footage terms,

you'd be looking at around about 125, maybe £130,000.

I think if you actually did the full-on extension...

the sky's your limit, a bit.

It could be 200,000, it could even get up to 250,000.

-'And rental?'

-If it was extended,

I think you could ask something in the region of £550-£600 per calendar month.

Well, this property really is a bit of developer's dream.

Very desirable area.

It does need updating, but all that space at the back means

you can build on an extension and increase the value quite dramatically.

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

Lot Number 21.

Who would like to start me at the guide price for this property?

Thank you, sir, straight in at £95,000.

96. 96. At 97. 97. 98. 99.

At 99.

100. At 100. At 101. Fresh face, 101, 102. 102, 103, 104, 104.

At 105, at 106...

'The bungalow had attracted several interested parties

'and we rejoin the auction when the bidding reached 117,000.'

At 117, at £117,500,

£118,000. 500, sir? 118,500.

At £118,500, my eyes are all on you, sir, now.

At £118,500, once.

At £118,500, twice. The third and last time I'm asking at £118,500...

..sold!

'The successful bidders who got the lot for 118,500 were John and Pam.

'John used to look after the electronics department

'at the local technical college, while Pam was formerly a secretary.

'Now, they are both retired and live in Welton itself,

'and it turns out you can't get any more local than them.'

-John, Pam, lovely to meet you both.

-Nice to meet you, Martin.

-Nice to meet you.

-Congratulations!

-Thank you!

-Well...

-What do you mean, "well"?

-Well... Apprehension, coming in there.

Apprehension?! Why?

Well, it's the first time we've bought a property at auction

and the first time we've actually...

Well, it's the second property I've ever bought.

-Because I bought the first one when we got married 30...

-33.

33 years ago and this is only the second time we've

looked at buying a property.

-Wow. So why did you want to buy it?

-Basically, a combination of reasons.

One, the bank rate being low and we had the money the bank,

-so it came up and it butts onto our property.

-Where?

-Just at the back.

-It's at 90 degrees to our property.

-Oh, right!

-So your house is sort of over there-ish?

-That's right.

And we've used the orchard for our geese

and sometimes we have sheep, young lambs, in it.

It was coming up for auction, so we thought, "We'll have a go".

-You knew the owner then, obviously?

-Very much, yes.

Old Pam lived next door, actually.

I did, for 21 years I lived next door,

so I've sort of grown up with this property.

-Ah, fantastic! So, you were friends with the lady who lived here?

-That's right.

Yes, it was actually built in 1933 and it's only had two owners,

and we're the third.

And I've known both sets of owners,

I used to spend quite a bit of time round here as a child.

So was there a large element of not wanting it to go into somebody else's hands,

-coming to the purchase?

-To a degree.

We were a bit concerned because we've just something developed on the other side of us,

you can see the new buildings there, and somebody could have bought it,

I suppose, knocked it down, and put two more bungalows on here.

So, yes, an element of that.

We're not totally sure,

but it's a combination of all of those things, why we've done it.

But what kind of property developing experience do you have?

Hey? Property developing? What, what's all that? None!

'Well, despite this being their first and possibly last foray

'into property renovation, John and Pam have done very well here.

'They did put in an offer pre-auction which was rejected

'and ended up paying more than they had originally wanted.

'But there's still money to be made if they do the right things.'

The main idea is to put an extension on the back.

We thought it would be nice to have a living-dining kitchen

with double patio doors out the back looking down the garden.

Probably an extra bedroom-cum-study, and obviously, toilets and bathroom.

Then, the front, we're going to remove the two chimneys

and chimney breasts in the bedrooms and then, take it from there.

But, basically, that will be the main extent.

It depends how much it costs and where we run out of money.

To be fair, if we can get our money back and then only sell

off half the garden with the bungalow, that would be the eventual idea.

Right, so then you get to keep the bit that...

We get to keep the bit that we've been using.

So have you got any idea of the kind of numbers involved here?

You know you paid for it, what about the budget, stuff like that?

We might be slightly limited because we've no particular income now

with not working, but a guesstimate would be about 40.

'A 40 grand budget sounds a bit tight for the work they've planned,

'but they're not going to rush it, giving themselves a year to do it.

'The couple are confident of getting their money back.

'They hope that by the time it's ready to sell,

'property prices will have risen enough to make them

'a healthy little profit on top of their investment.

'I hope these geese appreciate all the effort.'

Are you excited about taking the project on?

It'll obviously keep the old grey cells working!

Now we're retired, you need something, I think, so...

It's another stage of our lives, something different to do.

You know, you've got to have challenges, haven't you?

To keep the, as Pam said, the grey matter going.

That is our next challenge, I suppose, yes.

-We're looking forward to it?

-We are, yes.

Well, congratulations, we look forward to seeing how you get on.

-Thank you.

-Thank you very much! Watch this space.

-Yes.

Well, it's one thing to buy a property to keep the old

little grey cells active,

but I think that Pam and John have stumbled on a fantastic investment opportunity here,

and I don't think they quite realise it yet.

And it all started because they wanted a little bit of land for their geese.

How are they going to get on? Find out later in the show.

-Doing up property always takes longer than you think.

-Yes.

There are always reasons for delays,

so have our buyers been held up or raced ahead?

Time to find out.

'We head back now to Hampton in Middlesex.

'It was here we met Heather who, along with her husband David,

'had bought this handsome three-bedroom semi for 421,000.

'Heather's day job is as a childminder

'and this was going to be her first renovation development,

'a "do up quick and sell on fast" project.

'But with the house in such a good state,

'there was another tempting option.'

Have you thought about selling it on as it is?

We were approached by someone to do that right after the auction,

but we decided that we would turn it down and do it ourselves.

Really? Do you mind me asking how much more they offered you?

475, it would have been, in total.

-£50,000 for doing nothing, and you said no?

-We said no.

-Why?

-Did you think you could make more?

-Because we can make more, yeah.

'To help her get more, Heather planned to spend 35 grand to add an extension on the rear

'plus create an open-plan through lounge, all in three months.

'But it was five months later that we returned to find out

'if she'd regretted not taking up that offer.

'From the outside, the house still has that appealing character,

'this time with freshly painted windows.

'And inside?

'As promised, the dividing wall has gone

'and Heather and David have opened up the rooms to create that

'spacious and light through lounge.

'The effect is complemented with the warm tones of the new oak flooring.

'And there's character here, in the shape of a new fireplace.

'That's one big change. And the other?

'Well, Heather has got her extension, transforming the old shed and kitchen

'into one fabulous kitchen-dining area.

'Spacious, with beautiful units and tiles,

'creating a wonderful space for any family.'

As you can see, we've created really a lovely kitchen here

with a fridge-freezer and freezers here, washing machine and dishwasher, lovely cooker here.

And this is where the kitchen ended, originally, was just here.

So, it was kind of really small and tight.

Now, we've expanded it, lovely, with the patio doors which open up

onto the garden, ideal space for a table, if you wish to have one here.

Everything's here that one would want in the kitchen,

the space, the garden, lovely and fresh, and, yeah, I love it.

'It's easy to see why.

'Everything on the ground floor has been done to a high standard.

'And it's the same upstairs.

'The master bedroom and second bedroom have been renovated

'and redecorated, with new carpets...

'..as has the third rear bedroom.

'The cupboard that was in the cramped corridor has been removed to

'make it user-friendly.

'The separate toilet and bathroom have been combined to create a larger bathroom.

'There's even space for a shower cubicle. Perfect for a family.

'There's lots to like about this house,

'and Heather likes one area in particular.'

I love this room, I love the lounge.

I've always liked open-plan and I think it really works,

and the windows are beautiful as well,

and it looks out onto nice property at the other side and that's good.

'Just as they look onto your nice-looking home as well, Heather.

'But it's not just the front that looks good,

'with the spruced-up garden providing a pleasant,

'low-maintenance space to relax in.

'But looking at this side raises the question

'of whether Heather and David regret not extending into the side return and loft.'

We decided not to do that, because we thought just to leave it

the way it is and give the option to people that want to buy

the property, they'll do that if they wish to.

So we just felt that we could just do it the way it is and hope for the best.

'I reckon Heather did the right thing by not overextending herself on her first project.

'Applying for planning permission for the extension

'and the Christmas break meant their timescale was

'extended from three months to four.

'But in general, the renovation was pretty trouble-free,

'with everything going smoothly for the couple.'

My husband and myself have been both very involved with it

and we've worked very well together, deciding and choosing,

and it's worked very well with our team of builders as well,

so it's been an excellent job.

And we're both very proud of each other, that we've succeeded

in doing what we've done, especially with this being my first project.

I've thoroughly enjoyed it and can't wait to do the next one.

'In fact, it's already up for sale, but making a decent

'profit will be down to how much the renovation costs.

'Did they manage to do it within their 35 grand budget?'

Well, it didn't actually, because we put the oak flooring down and throughout downstairs

and also the extension to the kitchen and spec of the kitchen units, etc,

so we spent 45 in the end, in total.

'With their purchase price of 421,000,

'their total spent on the property adds up to 466,000.

'So time now to find out what two local estate agents

'think of this first-time renovation.

'First up, the agent who saw it before.'

Coming back today, it's absolutely fantastic, it's really lovely,

lovely family home.

They've done a fantastic job to it.

The property is a very nice property indeed.

I like the kitchen and the extended part of the back of the kitchen.

There's a nice kitchen-dining area now, it's a nice, light, airy

and bright room, it also opens up onto the back garden, which is

also paved, which looks very nice.

I think the standard of work has been done to a very good level.

I think it is what a Hampton buyer would look for.

'So the estate agents reckon the house is just

'right for the local property market.

'But could it sell for more than Heather and David's 466,000 investment?'

I think in the current market conditions I would expect to achieve

somewhere in the region of £600,000.

I'd expect this property to achieve around £590,000.

'Well, those valuations could see Heather achieve an incredible

'potential profit of £124,000-£134,000, minus the usual taxes and expenses.'

They're very good and that's probably what we expected anyway,

but, yeah, really, really pleased at that.

'But if Heather decided to let the property,

'the estate agents estimate a possible return of up to

'1,600 per calendar month, a yearly yield of just over four percent.

'Do these sort of figures appeal?'

No. I don't think so.

I mean, you never know, if the worst comes to the worst

and we couldn't sell for a long time,

then it is another option to do so, but I should think the house

will sell really quickly and we're going to sell it.

'With those possible returns and the success of the project,

'it looks like Heather could be a natural-born renovator.

'She spotted a good property in a desirable area

'and didn't get carried away with over-developing it.

'More importantly, she and David had a good time transforming it.

'Does that mean another renovation could be on the cards soon?'

We've enjoyed it tremendously and, yes, we will, indeed,

be doing this again. Very soon.

'When it comes to buying property,

'it's always important to know the area and do your research,

'and when it came to this 1930s bungalow

'in Welton, Lincolnshire, which the new owners, retired couple John and Pam,

'paid £118,500 for, all the information they needed

'was on their doorstep, or rather at the bottom of their garden,

'because the garden of their current home is connected to the

'rear of this bungalow's huge garden.

'This was only the second house they'd bought in their 33 years together.

'They weren't so much motivated by developing the land

'and making money, they saw it more as a way of

'keeping their grey matter ticking over and maintaining their standard of living.'

So why did you want to buy it?

We've used the orchard for our geese and sometimes we have sheep,

young lambs, in it. And it coming up for auction, so we thought,

"Well, we'll have a go."

'Spreading their wings into full-time property development was not

'the plan, but they wanted to renovate and extend the bungalow

'and sell it on while retaining the orchard for their animals.

'They'd set a realistic £40,000 budget and a relaxed 12-month timescale.

'I had high hopes that with that extension at the back,

'this goose was definitely going to lay a golden egg.

'However, it was two years and eight months later

'when we returned to see if the couple's plan had finally hatched.

'Outside, the lovely, sparkling new exterior has really

'lifted that dowdy old frontage.

'But can the same be said for the back?

'Well, as promised, a great-looking extension has been added,

'with huge patio doors letting lots of light into this spacious

'kitchen area, with a vaulted ceiling and Shaker-style units.

'But best of all with amazing views of that huge garden.

'But this extension isn't just about cooking and admiring the scenery.

'Tucked behind the kitchen are a utility room and new bedroom, with

'en suite facilities, though a shower cubicle still needs to be added.

'Overall, it looks like the renovation's nearing completion,

'and for Pam, it's not a moment too soon.'

We're really pleased, I think, that it's beginning to come to an end

because it has started to drag on a little bit.

We've enjoyed doing it,

but now is about the time that I think it needs to come to an end.

'But we haven't come to the end of our tour yet.

'Back in the old part of the bungalow, the original hall,

'which ran down the centre, still exists, but is now refurbished.

'And the original living room and two bedrooms have been gutted,

'rewired, replastered, and redecorated.

'And the two bedrooms have had their chimney breasts removed,

'creating more space.

'And the old kitchen and bathroom?

'Well, the wall has come down, which has created a new family bathroom.

'It's now a good-looking, family property, but it took John and Pam

'longer than they anticipated to reach this stage,

'with ten months alone dedicated to getting planning permission

'and building regulations for the extension.

'But it wasn't just the paperwork that held them up.'

When we were taking the conservatory down,

we saw the manhole cover we knew was there, but when we looked in,

it was eight feet deep, not just a shallow draining.

It wasn't till we really pumped it out

and realised it was the soft water off the roofs was collecting,

and we had to drain that out, dig it all out,

and, obviously, fill it all in.

'Professional contractors sorted out that particular problem

'and skilled tradesmen were called in for the electrical work,

'bricklaying and plastering.

'But being a retired couple with budget constraints meant that

'John, after learning some skills on the internet,

'decided to get stuck in himself.'

The only thing I'd built before this, really, was pigsties,

when I used to keep pigs.

-Hopefully, this hasn't turned out to be a pigsty.

-It certainly hasn't, no.

'I agree with Pam, there.

'But let's not forget, the reason for this venture was to acquire

'that massive garden for their beloved geese, goats,

'and sheep, so is that now part of their property?'

Basically, we'll put a fence part of the way down the garden

and when we sell, we'll say, "Well, the garden ends here,

"but if you want a little bit more..."

A little bit by negotiation, as to how much garden the new owner would want.

'Not that selling the property is a foregone conclusion.

'They may let the bungalow out, or may even move in themselves

'when the work is complete.

'Apart from the finishing touches, they plan to build a new garage

'to match the new extension. That will add to their budget.

'So how did the original £40,000 estimate hold-up?'

Overall, by the time we've finished, once we've done

the showers and the fireplace and everything, we certainly won't have gone over 53.

-How much?

-53,000.

-I didn't know it was that much!

'Well, add that to their purchase price of £118,500,

'and John and Pam have spent £171,500 here.

'Time for two local estate agents to tell us

'what they think of this new, improved and enlarged bungalow.

'First, the one who saw it before the renovation.'

I think my overall impression of this full refurbishment

and extension is, "Wow."

I think the kitchen is a stunning piece and the fixtures and fittings

are excellent, and to have squeezed

an en suite into the master was a stroke of genius.

The property's been renovated to a high standard throughout,

the size and the standard of the kitchen will prove to be a real

selling point for this property, as well as the en suite master bedroom.

'So, could the couple make any profit from their £171,500 investment?

'First, on resale.'

In my opinion, in current market conditions,

the property would be valued between £215,000-£225,000.

I would value this property at £215,000.

'Those valuations mean they could realise a possible pre-tax

'profit of between £43,500 and £53,500.'

Not bad, I suppose, in the present climate, is it?

Yeah, I was hoping, 225 was the one I was hoping for,

but that's before the market started to come down.

So it's in the region we thought it would be.

'If they do decide to let the extended bungalow,

'then the estate agents reckon they could achieve a rental

return of £650-£675 per calendar month.

'The upper valuation would mean

'a yearly yield of just under five percent.'

Slightly lower than I thought it would be, actually,

the rental value. But not too bad.

'Those valuations don't appear to have ruffled Pam and John's feathers.

'In fact, I think, given that they were winging their first

'property development project, they've done well to make a profit

'and still get what they wanted - that orchard.

'Plus, of course, they wanted to keep the grey matter working. So, did they?'

It has, yes, it's certainly been an interesting project.

Bit of a nightmare at times, various things have cropped up,

but we've overcome everything and it certainly turned out pretty well.

Well, we'll have more tales of thrills

and spills from the auction room for you next time.

-And we look forward to seeing you then. Goodbye.

-Goodbye.

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