Episode 19 Homes Under the Hammer

-Hello. Property has always been seen as a pretty safe place to put your money.

-That's not always the case.

It depends where you are, whether it's a long-term investment or for a quick return.

However, there is one way to stack the odds in your favour and that's to buy your home under the hammer.

Whether it's an investment or somewhere to live in, you still need a good deal.

So the big question is did the buyers on today's show achieve that?

Here's what they bought.

In Chiswick, this retail unit with flats above it is a sight to behold.

You always hear of a sunny aspect, but look at this room!

I'm ready to make a booking at this holiday cottage in Cornwall.

I'm already sold on this place before I've seen inside.

And the second bedroom in this mid-terrace in Northumbria may be too cosy.

There's a single bed - fine. And a boiler!

All these properties have been sold at auction. We'll find out who bought them and what they paid

when they went under the hammer.

Why do people want to live in Chiswick, West London?

Well, the high street is teeming with great shops, it maintains a villagey feel,

even though we're minutes away from the train and Tube AND Colin Firth lives here.

Reason enough to buy a property in this leafy capital? I'd say so.

Now I can't promise you'll be rubbing shoulders with A-listers, but I can guarantee you'll enjoy it.

It's one of the hottest areas around with great transport links to the city,

but why would you want to escape all of this?

Now it's not all good news, I'm afraid, because property isn't cheap in Chiswick.

The average terraced house costs around £760,000.

And semi-detached properties are £1 million plus.

So what does an auction lot guided at £675,000 get you?

A tenanted commercial unit.

And two one-bedroom flats.

The ground-floor shop and basement are occupied by a hairdresser's.

# We will cut your hair... #

It's been let on a 12-year lease, which expires in just two years.

Sounds like a cut and blow-dried case to me!

Now when it comes to flats, I'm a bit of a fusspot and I do like a nice communal area,

but look at this. The carpet's in good condition, loads of space, a really lovely post and spindles,

setting the tone of the property. So far, so good. Onwards and upwards!

Up on the first floor, things continue to look positive.

The first-floor flat has a bright living room/kitchen which is a pretty good size.

There's a shower room, which is a bit on the compact side,

but the bedroom is large and...

# Sunny... #

In agent speak, you always hear of a sunny aspect, but look at this room.

You've got one, two, three really big windows,

all with wonderful views over the park. And it's really, really sunny. The floors are good.

The walls are good. You could rent this out straight away.

This flat is in excellent condition and it doesn't stop there.

Join me outside for more good news.

Outside is this fab roof terrace. I love it!

This property had a bit of history as far as planning applications are concerned.

I've been doing a bit of digging and I've found out that in 2002

permission was refused to convert the shop into a studio apartment.

The council thought losing a business premises would be detrimental to the area,

but more interestingly planning permission was granted for a two-storey extension there.

Now the permission lapsed three years ago, but that's not to say you couldn't apply again

to really increase your square footage right there.

A two-storey extension could work wonders for the top-floor flat,

which at the moment doesn't feel as bright and airy as the first floor.

The kitchen/living room is a decent size,

as is the bedroom, but a little more space wouldn't go amiss. It's all looking pretty positive here.

Or is it?

I hate to be the bearer of bad news, especially when it was all going so well,

but I'm afraid this auction lot does have a murky secret.

There's a flying freehold here.

The freehold flats are partly situated over the adjacent shop

and that shop doesn't come with the lot, I'm afraid. So the flats are in a state of legal limbo

and it can cause difficulties when trying to secure a mortgage.

At worst, a home lender will decide they're not prepared to lend at all.

And you know what that means - yes, the new owner could have to dig deep and buy this for cash.

And with a guide price of £675,000, that's no pocket change.

What does a local property expert make of this auction lot,

-comprising the downstairs shop and two one-bedroom flats?

-'Great. The location's fabulous.'

That's what makes them. Having two good-size one beds in a central location is fabulous.

Assuming the layout remains the same for now, what could the two one-bed flats rent out for

once renovated?

I would rent them for £1,400 each per calendar month.

So combined with the rent from the downstairs commercial unit, which is just under £14,000 a year,

this property stands to make someone a pretty penny in rent. But what about the resale market,

again without adding an extension?

I would sell the top-floor flat

for £275,000.

What about the first-floor flat?

The one-bed flat with the roof terrace, I'd sell for £300,000.

I think this is an incredible auction lot. A commercial unit with a longstanding tenant

and two good-sized one-bed flats in a desirable location.

You could rent these out as they stand or renovate them for sale.

Whatever the choice, there is definitely money to be made here.

The only downside - that flying freehold. It could cause some problems with the lender.

Let's see who is up for taking this on as we go to auction.

It's a corner building. You've got a retail unit,

an upper part arranged as two flats. Who would like to kick off on this?

Start at six. 600. Phone bidder.

600,000. 605 with you. 610 on the phone.

615.

620.

625. 630 on the phone.

635.

640 on the phone.

650. 655.

660 on the phone.

Sorry? 670.

675.

680.

690.

695?

695.

700?

At 695. Against the phone. First time.

Second time. Third and last time. Have you all done?

Sold. 695 to the lady.

That successful bid of £695,000 was placed by Yvonne.

She's a jewellery maker and is not originally from these shores.

Yvonne is Danish, but has lived in the UK for 20 years.

I went to meet her at the property and hear all about her plans for the place.

-Yvonne, congratulations.

-Thank you!

I love Chiswick. I always have. Why did you feel you wanted to buy a property here?

I live here and know the area really well. As an investment, I thought it was a very good location.

-How did you get to hear about it?

-A friend of mine is also looking to buy something.

We exchange opinions and things. "Have you seen that?" She said, "Have you seen that property?"

I wanted to have a shop as well, so I thought, "Very interesting."

I then looked it up and realised I'm definitely interested. That day was viewing.

Open house viewing. I looked at it and two days later was the auction.

In two days I had to raise the funds and everything. It was a real...

I knew I wanted it. I was dead keen.

She must have been dead keen to arrange everything within two days!

With a £695,000 price tag, this purchase was a significant one,

so how did she manage it?

Well, I'm an ex-banker. Raising funds is one of my specialities.

I love doing that and I know a lot of people, having done many properties before or some properties before,

helped friends. I know how to raise funds.

I had to phone more than normal because it is quite hard to get mortgages, but from phoning

and talking my good talk, I managed.

# Money talks Dirty cash, I want you

# Dirty cash, I need you... #

Yvonne's banking knowledge has obviously helped this whole process along.

Securing finance in these tricky economic times is no easy task,

but I get the feeling she's a lady who gets what she wants.

She also gets top marks for asking all the right questions.

During the process of buying it, I found out it's only legally one flat.

It's not difficult to get turned into two flats. However, I have found out since then

that it has been two flats for more than four years so you legally have rights to have it as two flats.

I phoned the electricity company who told me the meter was installed in 2006.

They have sent me confirmation that it's been two flats for more than four years.

-Bingo!

-Bingo.

Sounds like Yvonne has lucked out on the legalities there.

She's also been looking into the flying freehold and thinks she's found a solution to make it easier

to sell the flats in the future. And she hopes to use the planning permission for the extension.

I'm going to extend out to the roof terrace, half of that,

which is the premises I own below.

And then the rest, the flying freehold, will be a roof terrace. I've got the airspace.

It allows me to use it as a terrace.

-It's not a given, is it, that you'll get the permission.

-It's not a given at all.

I said, "Does that mean I can have it?" No.

-Tell me about your budget. What's the money you've got?

-Well,

I'd like to be able to do both for 100. However, I'm going to do high specs and I want it to feel...

I want to kind of put a Danish environment into it

and that will cost me quite a lot, so it might go up to 150. So between 100 and 150.

# The very, very, very best

# I want the best The very, very, very best... #

A possible £150,000 spend on top of the almost 700 grand Yvonne paid at auction

would add up to a sizeable investment here,

nearly £850,000. But larger flats should mean higher returns.

-So how much time have you got to do the work here?

-I'm planning as soon as possible.

I hope in two months I'll have scaffolding, skip, things pulled out.

-I can't wait to see what you do.

-Nor can I!

-Congratulations and good luck.

-Nice to meet you.

Jewellery designer Yvonne has found a real gem here, but what will she end up doing to the flats?

And, more importantly, will that flying freehold cause any problems further down the line?

You can find out what happens later on in the show.

# Coasting along The sun coming down

# Easy on me... #

How fantastic is this? I'm in Portmellon in Cornwall.

Ten minutes' walk from Mevagissey, six miles from St Austell, it is idyllic.

It's got a gorgeous sandy beach, but while you wait for the tide to go out,

you've also got a pub.

Fresh sea air and an enticing pub. Perfect!

However, if it's groceries you require, you need to head for Mevagissey, about a mile away.

But if it's a sensational seaside property you're after, look no further.

So how much for a three-bedroomed apartment in this stunning place?

£225,000?

Well, sounds like a lot, but it's worth it for the view.

There really is something magical about that view and it's one people will pay a premium for.

Perched perfectly above, it is the property I'm here to see.

I'm already sold on this place before I've seen inside!

I mean, gosh. Love the elevated position. You're on top of this fairly big building

and that's exactly where you want to be for these incredible views.

Into the property itself and straight away you can see it's a working holiday let.

There's DVDs, there's books, games. It's laid out to provide a wonderful summer holiday experience.

Main room here. I like the beams. A fire there could do with being opened up.

A big room, views out the windows. It's be nice to have a view at the end, but it's a bit too thick.

You come into here, your kitchen.

It's all a little bit tired, but your impression is created the moment you walk up the steps.

It'll have to be pretty bad to put somebody off. It's not bad at all.

Yes, it could do with a bit of refurbishment, but it's all nice to have and not essential.

Some people would feel the need to rip everything out and start again,

while others could live quite happily with this for the foreseeable future.

Out the back is a long hallway. Off that is the master bathroom, which is perfectly serviceable,

and the three bedrooms.

One has bunk beds and a lovely beam.

There's one twin room and the master at the end of the corridor,

plus an extra loo and shower.

A little decoration throughout could be a good idea, but not essential.

Outside, the apartment enjoys a well-maintained, pretty garden and my favourite bit,

this charming sun deck, which on a brighter day would be ideal to admire those views.

Charming though a lot of these Cornish villages are, one of the big downsides is often parking.

It's a complete nightmare. However, the good news for this apartment is

that you've got two parking spaces. That's great if you're thinking of running this as a holiday let.

Talking of holiday lets, this apartment, guided at £225,000, also has bookings

and doesn't become vacant for another three months.

So while that means you can't get immediate access to do any work,

it also means an income straight away, so it's already making money.

Is it a case of, "If it ain't broke, don't fix it"?

We asked a local estate agent for her recommendations.

This apartment needs new kitchen units which are modern and bespoke.

It needs a new white suite in the bathroom,

neutral colours throughout, so the natural light pouring in will lighten it even more.

I do think that, although old-fashioned, some of the fittings are charming,

but the property could benefit from anything that makes it lighter and brighter.

If work was done, how does she think it would fare if sold?

When this apartment is refurbished, we would look to achieve around £285,000.

What about renting it out long-term?

For rental value, this apartment would achieve about £1,000 per calendar month.

But if it were kept as a holiday let, how much could the new owners charge per week

at the height of the season?

For holiday let with this apartment, we would look to achieve around £1,000-£1,200 per week.

Well, I see literally hundreds of properties filing this show

and it's not often that I'm jealous of the buyers, but in this case I most certainly am.

Whoever bought this got themselves an absolute corking property.

It's a business if you want it to be, it's an escape, it's a dream come true.

Let's see who the lucky person was when it went under the hammer.

Sadly, I didn't have the pleasure of seeing this, but if that's the view,

it looks like a fabulous position. £225,000 is the guide price. Like to call me out a bid? Someone brave?

-225.

-225 off the phone is a great place to start. I'll take 225.

Any advance on 225?

230 if I can? No? I've got 225 standing here on the column.

Funny place to stop. Opening bid on the phone at 225.

There's no advance on 225?

225, then. First time.

Second. Third.

It's 225 on the phone. Are you sure you're all done? Thank you.

With just one bid, bang on that guide price of £225,000,

the successful bidder at the other end of the phone was Kate.

She and her husband Trevor live in a beautiful part of the country,

Cheltenham, on the edge of the Cotswolds.

I met them at their new coastal retreat to hear what brought them to Cornwall.

# If I could escape And recreate a place as my own world... #

-Kate, Trevor, great to meet you both. Congratulations.

-Thank you.

-Thank you very much.

-What a great place.

-You think so?

-I'm very jealous! It's lovely. Tell me why you wanted to buy it.

I think the key reason was that we had a property we managed to sell in Cheltenham.

And we have some other friends that live not too far away

and we just love being in Cornwall, by the sea. So maybe we could swap these two around

and get the benefit of a wonderful Cotswold home and a lovely Cornish pad by the sea.

-Wow. So this is going to be your place?

-Not entirely. Holiday lets.

-Right.

-And we'll use it out of season. And I'm an artist, so I can paint here.

-My word. What kind of painting?

-Large canvases and lots of pictures of Mevagissey, this area.

-My word.

-So you'll decorate it with your canvases?

-Definitely. It'll be painted white, very simple,

get the lighting right and then I can use it as a showcase as well.

This is an ideal spot to inspire Kate and hanging her pictures here is a savvy bit of marketing.

And she's not the only one with an unusual occupation.

-I work for a small airline, specialising in vintage aircraft.

-You fly vintage aircraft? Like what?

Chipmunks, Austers, I fly all the single-engine aircraft maybe you've never heard of

from times of yore, which are great fun, around the country,

and we have the largest collection of ex-military jets in Europe, probably the world,

-that we do air displays with.

-What's it like flying these?

-Fantastic. Not a bigger thrill in the world.

Apart from buying this property!

-So it's all...

-All shaking, juddering, by the seat of your pants.

-Do you have the flying hat and goggles?

-We flew to the Scilly Isles last year in his little Auster.

-Oh, wow.

-It was so exciting, he proposed to me on the way back.

-He proposed to you...

-On the way back from the Scilly Isles in this little old plane!

-Were you sitting next to each other or one behind?

-Next to each other.

-Hope he didn't go down on one knee!

-No. Air traffic control at Exeter were impressed when I announced it.

"I just proposed and she said yes!"

That's certainly a story to dine out on for a while. Something that didn't last long was the auction.

How did it feel being on the other end of a phone?

It was a bit strange when nobody else bid, you know.

She said, "You need to bid now or they'll take this off.

"They're not going to go any lower." So I had to trust that was the case.

We had a budget in mind. We knew we couldn't go over 250.

It just didn't make sense from a letting potential,

-but 225 is pretty good.

-Yeah.

-It gives us some cash, potentially, to do some work on the property.

-Tell me what you are going to do.

-We have a start point...

-We have to agree first.

We need to replaster. We have to do that at either end of the property,

the master bedroom and sitting room. Then it's the things we'd like to do.

We'd like to take this wall out and open it up - sitting room/kitchen as one big room. That's really nice.

-Any idea what the budget's going to be?

-Well, there isn't a budget.

The big expense will be changing the kitchen round and that depends on how much I can curtail Kate's thoughts.

Why? It sounds like a great idea.

We could spend £20,000, but you've got to keep some money back,

-so we'll have to be careful with what we actually spend. Maybe £15,000 is more realistic.

-Or five.

-The man speaks(!)

-But this is a business.

-Yeah.

So that's how we need to think about it and operate it. You need to work it through on that basis.

What's affordable from the rent. The only way to increase that is to get more lettings,

but you've got to make it more attractive to people to come in. That's our aim.

So plenty of decisions to make about what to do and how much to spend,

but as the property's already booked out for the next three months, they've got time to mull it over.

Well, Trevor and Kate clearly delighted with this place and who can blame them?

Flying high and living the dream. There may be a few arguments in terms of how much work they do,

but I can't wait to see how it all turns out. You can find out later in the show.

Coming up: the decor of this County Durham mid-terrace may need a rethink.

Not so sure about the half-timbered look.

In this cute Cornish holiday cottage, high-flying Trevor has a new favourite spot.

Standing at the sink doing the washing up, looking out to sea.

But first, in Chiswick, Yvonne's budget was a bit optimistic.

When I went out to tender, I realised it was me, I was wrong.

We're back in popular and prestigious Chiswick now. Earlier, I met jewellery designer Yvonne

who, for £695,00, purchased three properties in one lot -

a commercial premises with two one-bedroom flats above.

The ground-floor commercial space was already let out

so it was the flats upstairs that Yvonne had big plans for.

I'm going to extend out to the roof terrace, half of that,

which is the premises I own below.

And then the flying freehold is going to be a roof terrace.

I can use it as a roof terrace.

The flats were in a good state already, but Yvonne was aiming to make them amazing

by adding space plus a dash of her Danish designer flair.

We're back over a year and a half later to see the result.

# We're going to make it better

# Ooh, yeah

# Yeah, gonna make it right

# Here it is There's no way to make it better

-# Gets you down It's pressure

-Pressure...

-#

So Yvonne did get permission for an extension, which goes upstairs, too.

# Yeah, gonna make it better

# Ooh, yeah

# Yeah, gonna make it right

# Here it is There's no way to make it better

-# Gets you down It's pressure

-Pressure...

-#

I absolutely love the grey wash on the oak floors.

Talk about Scandi chic! And the new first-floor kitchen and living room is just fabulous.

The space has been doubled in size.

I think the space works amazingly well and the lights are hanging here

not because they're too low, but I'm building here a bookshelf up to approximately here,

which is also going to be a table. Then you separate the rooms a little bit.

I think it works wonders. And with the sliding doors. It's just fantastic.

Yvonne didn't have a set timescale, but had hoped to start the work within a couple of months,

a plan that didn't quite work out!

The planning was much longer than I anticipated, partly because it's considered shop front.

I had to apply for them to approve the colour of my windows, the roof tiles and my bricks.

Every time you do an application with the council, it's eight weeks. So the first plan was eight weeks.

Then I had to re-apply for my dormer. Eight weeks again. Then my tiles, so that was another eight weeks.

So the whole planning was much longer than I had hoped for, sadly, but that's how it goes.

-But the weight may have been well worth it.

-I want to jump with joy.

It's fantastic. I always go, "Would I like to live there?" Yes.

If I want to live there, I think a lot of people would, too. That's how I look at it.

This is a quality project with real imagination and flair.

From the dazzling tiles in the entrance hall to the dressing area

and en suite attached to the bedroom, every stylish detail has been carefully chosen.

The result is stunning, but at what cost?

Yvonne originally reckoned on a maximum spend of £150,000 for the work,

so what was her final renovation bill?

Altogether, I've hit a budget of £247,000.

And I underestimated that at the time. When I went out to tender, I realised it was me, I was wrong.

But the end result is better than I hoped for. And I think the value of the flats is better.

But we'll have to wait and see.

When you add that £247,000 spend to the £695,000 she paid at auction,

Yvonne's total outlay here is £942,000.

So was it money well spent? We asked two local property experts to give us their thoughts.

They're beautiful and the location is going to be very high in demand.

I really like what she's done, extending parts,

but the interesting angles in here are a really nice design feature.

The terrace downstairs is obviously going to be very good. The finish is very good.

What I particularly like about this one is the roof terrace.

The second one is fantastic, with the windows in the roof that bring in so much light.

They've both got individual qualities. Two fantastic properties.

-But could they make a fantastic profit?

-If they came on the market today,

I'd expect the first-floor flat to come for £425,000-£450,000.

If this one came to the market, I'd expect to achieve £400,000-£435,000.

For this first-floor flat, I would put it on the market for £475,000.

The second-floor property I would put on the market for £450,000.

I would expect to obtain offers very close to the asking price.

Both estate agents valued the commercial property at £250,000,

so if Yvonne sold the shop and the two flats, at the very top of those valuations

she'd make a profit of £233,000, minus tax and expenses, but the shop is let

and she plans to rent out the flats, too. So what kind of rental income might she get from them?

The first-floor flat I'd expect to achieve around £1,900 per calendar month

and this top-floor flat I'd expect to achieve around £1,700.

For the first-floor property, I'd expect around £1,950 per month.

For the second-floor property, I'd expect to obtain a rental of around about £1,850 per month.

My budget was always around 400, 425 a week, so this is slightly above, so it's what I had expected.

With the commercial annual rent of around £14,000,

if Yvonne were to let both flats for the high end of those values, she'd earn a yield of 5%.

I hope that after all the time, work and money she's put in here, she's happy with the end result.

Absolutely. I feel that I do what I love doing.

Next time I can do it faster and I've got all the connections.

I feel quite, you know, secure in doing the next project. Very good indeed.

Today I'm in County Durham in a suburb of Bishop Auckland called Coundon.

Coundon was once a mining village in its own right, but the mine is long gone

and in terms of house sales the property market has struggled.

Although the owner-occupied market has dropped significantly in the last few years,

the rental market is particularly strong, which makes this auction lot very interesting indeed,

especially when I tell you the guide price. It's a two-bedroomed mid-terrace.

£19,950 plus. Let's take a look.

Well, nice thing to see straight away is a porch. It keeps the cold and wet out on a day like today.

Then through into your front living room. Well, it's the only living room.

I like the fact the stairs are positioned there. It gives this a nice, open-plan feel.

Not so sure about the half-timbered look. Not sure it quite works.

And likewise that fireplace, although I quite like the surround.

Take out that gas fire, replace it with an open fire there. That would give a real nice feel.

Through, though, into the rear of the property where your kitchen is.

It's not a bad size, but it's really made to feel quite claustrophobic by this bit here,

but that is tiny in comparison to the problem on the ceiling. They are laminated floor bits.

Doesn't work, does it? So clearly get rid of that.

And try to do something in here.

But, intrinsically, I like it.

Off the kitchen, the back door currently leads straight into a greenhouse-cum-conservatory.

And beyond that is a fairly large shed.

Now I love a shed as much as the next man, but in this case I'd be tempted to clear this garden out,

greenhouse, shed and all, to see exactly what you've got.

Then you might even think about a proper small extension out here.

Back inside and up the stairs you've got the shower room and two bedrooms -

one double and one single. The wood effect ceilings appear here, too,

but so does another rather unwelcome feature.

Here in the second bedroom there's a single bed - fine. And a boiler.

Not so fine. Why? Well, bedrooms and boilers is a really potentially lethal combination.

If you watched the show, you'll know that I'm always going on about making sure gas appliances are

properly serviced. The reason is if they start to burn inefficiently, they produce carbon monoxide.

If it's in the bedroom, this goes straight in to where you're sleeping. Not good news.

So always make sure your boiler is regularly serviced and, ideally, don't have it in the bedroom.

Carbon monoxide poisoning claims more than 50 lives in the UK every year,

so do please ensure that all gas appliances, including cookers and fires, are correctly installed

and regularly serviced.

But for now, onwards and upwards to the loft space.

With a rather spectacular carpet!

Now access via these stairs, it literally is just a storage space,

but I wonder if you could be clever and get some more permanent access.

It would require building regulation's approval and doing soundproofing, strengthening.

On the other hand, there is going to be a ceiling price in properties here so it may not be worth it.

Talk to an estate agent and find out.

And as if by magic here is an estate agent

to give us her thoughts on this mid-terrace house and its £19,950 guide price.

It will need some extensive work doing to the property. Overall,

it's a good size. Outsize space is the major thing with this property.

The outside space is quite a good addition.

What about going up into the loft space?

I don't think I would recommend opening up the attic space

because of the required building regulations that are needed. I don't think it will be cost-effective.

Fair enough. So if you refurbish the property without extending it, what might it fetch if sold on?

I would recommend this property was placed on the market at a value of £35,000-£40,000.

What about the rental market?

The property should achieve in the region of £375 per calendar month.

Well, a few things to sort out, not least this rather unusual conservatory at the back.

But do that and get this property for around the guide price and it could be a real moneyspinner.

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

Lot number 31. A conveniently situated terrace property.

It's got gas central heating, double glazing.

Anyone to start me at £20,000? Do I have £20,000 anywhere?

How about 16?

I need £16,000... In the doorway at 16. 17.

18. 19.

20? 19,000. Gentleman right at the front at £19,000.

20,000 anywhere else? It's against you. It's here at £19,000.

500? 500 bid. 19 and a half.

20. 20 bid. 20 and a half?

I'm here and I'm selling at £20,000. It's your last chance. 20 and a half?

I will take a half elsewhere. I'm selling it at £20,000. I'm going once at 20,000.

Going for the second time. At £20,000.

Sold at £20,000.

It was Tony who snapped this one up for 20,000.

He was once a bricklayer, but gave that up and became a sergeant in the Royal Artillery.

For the last six years he's been working around the world with a specialist security force,

but Tony now has his sights trained on another kind of security - the world of property development.

'Tony, great to meet you.'

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

I'd been after a project for quite a while. Saw it advertised for auction.

At the guide price, I thought it was worth to come and have a look.

-I had a look round and thought it was worth a punt, basically.

-Right.

-And you got it for £50 over the guide price!

-I know. Robbed!

-Yeah, terrific.

-So why have you bought it? To do what with it?

-I've done a property up previously, spent far too much,

-didn't make us much as I wanted.

-Why did you spend too much?

I got trapped in the, "If I lived here, I would do that."

-I probably did a lot more to it than I really should have done.

-What did you put in?

Just going into the kitchen. Instead of a plain, nice, new kitchen, little wine chillers and...

-Oh, really? Wow.

-Ridiculous.

-Well, you say it's ridiculous...

-I thought if somebody was looking, it would help to sell it.

-How quickly did it sell?

-About three months.

-I was hoping you'd say it sold to the first person who came round!

-It had a higher price.

I finally got it at a lower price.

'Well, here's hoping Tony can avoid the temptation to overspend on wine chillers and such like.

'He has done his homework on the area and will try to sell the mid-terrace on,

'but is open to the idea of letting it, too. This could even be the start of a property portfolio.'

-So tell me what you're going to do.

-Once I've got everything out of it,

we'll obviously need a new kitchen.

The bathroom, it needs changing. I'd like to get a bath back in to it,

but it's very small. New bathroom suite, decorated throughout.

-Shift the boiler that's currently taking up a lot of space in the second bedroom.

-Not ideal.

And just decor, carpet the place throughout.

-And at the back you've got an interesting conservatory/greenhouse!

-Yeah.

-All that will be going. Clearing everything out the back.

-Right.

-What's the budget, then?

-I'd like to get it all done for £7,500. 10 at the very most.

-With you doing how much of the work?

-I've got some guys who helped me out on that last place

who have done rewiring and the kitchens and bathrooms.

But all the manual donkey work, I'll do it myself. Decorating it, painting it. As much as I can

-to try to keep the cost down.

-And timescale?

-As quick as I can.

Two months at the very most, I hope. Depending on what we find.

-Congratulations. Good luck. Look forward to seeing it.

-Thank you.

So Tony has spotted the potential for this place and his previous experience of overspending

and not quite making as much as he'd hoped for clearly hasn't put him off. How will he get on?

Will he bring his skills to bear? You can find out later in the show.

Well, time waits for no man. Have our buyers managed to fulfil their promises?

Has the hard work been done? Let's reveal all.

# Ocean's replays

# Slow motion waves... #

We've returned to Portmellon on the Cornish coast.

Perched on a high spot above the sea and sandy beach was this three-bedroomed holiday apartment.

Kate and Trevor purchased it at auction for their first and only bid, dead on the guide price

of £225,000. However, the finances regarding this place weren't so straightforward elsewhere.

-Any idea what the budget's going to be?

-There isn't a budget.

-Hm?

-The big expense will be changing the kitchen round. That depends how much I can curtail Kate's thoughts.

Why? It sounds like a great idea.

You've got to keep some money back for a rainy day.

-So we'll have to be careful with what we actually spend. Maybe 15,000 is more realistic.

-Or five.

So would Trevor or Kate win the budget debate? We've come back to see them and their new purchase

six months on.

# But I am up Riding high amongst the waves

# I can feel

# Like I have a soul that has been saved

# I can feel like I've

# Put away my early grave... #

Well, Kate clearly got her way when it came to the wall.

This works much better as a large, light, open-plan living, kitchen and dining area.

This was a closed-off kitchen, so it was quite dark.

It did have a nice sea view, but most of it was lost in here.

Taking the wall down now means we've got a nice, big eating area,

a nice, modern, bright kitchen and it maximises the sea view. That's what I'm pleased with.

As a holiday let, it's lovely.

The living area in this room has seen some changes, too.

The biggest change we've made here is putting in the Velux window,

which has really opened up this end, brightened it and given us a fantastic view out to sea

and the beach at Portmellon.

And the second most important thing is our log burner, which has really brought some warmth to the place

and made it very cosy, a delightful place to spend the evenings now.

I'd love to come here on holiday at any time. It's ideal that Trevor and Kate will be able to enjoy it

during the quieter months. Through the back of the property, the green in the hall is gone.

Each of the bedrooms has been redecorated and the layout left as was,

however, the couple do plan to do further work such as installing a new bathroom suite

once the upcoming busy season has passed. Looks can be deceiving, though,

and the refurbishments weren't straightforward.

It's been pretty difficult.

If you spoke to some of our skilled helpers here, they would say, "What a awkward place."

It's in the loft space of a building that goes back before the Napoleonic Wars.

It was never designed as a domestic dwelling, so everything has to be tailored to fit,

everything was a challenge in that regard.

But what may have been more challenging was their budget

which when I met them was anywhere between £5,000 and £20,000.

We decided in the end - it wasn't Trevor's choice - to knock the wall down and go the whole hog.

-It meant new kitchen, new everything.

-We went through every item. It came to £18,500.

We said, "It's the right decision. If we don't do it now, we never will, so, Kate, as ever, you're right.

"Let's get on and do it and we've got £1,500 contingency." We're now well into that.

Remember that they couldn't do any work at the beginning as the property was rented for holiday lets

but after three months they're nearly finished for now, with just some external roof work outstanding.

Having been here getting their hands dirty over the last few weeks,

Trevor's now enjoying cleaning up for various reasons.

My favourite place of all, for once, is standing at the sink doing the washing up, looking out to sea.

Well, let's see what two local property experts make of this place.

It cost £225,000 at auction

and they spent approximately £20,000 on the refurbishment, which brings the total to £245,000.

This ticks a lot of boxes for the holiday market

because there's lots of room for children, mum and dad have got a really nice bedroom,

heave the children out onto the beach. Perfect.

I think they've done everything they possibly can to modernise it

and capitalise on the natural light.

What do the experts think the refurbished apartment might fetch on the resale market?

The remarket value for this property we would market at £265,000.

I think they could put the property on the market at something towards £300,000, but probably not quite.

-I feel pretty happy with that.

-It's better than where we started.

-Probably in line with what we thought we might have to pay for it originally at auction.

-Yes.

As they didn't have to pay that premium price in the auction,

they could be looking at a pre-tax profit of £20,000-£55,000.

However, this purchase was about Kate and Trevor creating a place by the sea to enjoy,

while letting it out to holidaymakers the rest of the year.

How much could they charge per week at the height of the season?

Holiday letting this property, we could achieve £1,200 per week.

As a holiday let, of course, it's going to fly

and you could be looking at... £1,100, £1,200 a week

-in those core, high-value weeks.

-That's what it was letting for previously.

For us, it's a great property to own and take advantage of. And to let others stay here and enjoy it, too.

Back now to County Durham and this two-bed mid-terrace in Coundon.

It was bought at auction for £20,000 by Tony, who's embarking on a new career as a property developer.

This was to be his second renovation and he admitted to overspending on his last project.

-What were the things you put in...?

-Just going into the kitchen

-and instead of a plain, nice, new kitchen, little wine chillers and...

-Oh, really? Oh, wow!

So is this going to be wine chillers and spa baths all round?

Or will Tony have kept a tighter rein on his budget this time?

Three months after our first visit, we're back to reveal all.

Nice one. It looks like Tony has avoided the temptation to splash the cash on frivolous extras

and the end result is a no-nonsense renovation which works really well.

The biggest transformation, though, is out the back.

Yeah, the conservatory,

it had to go, unfortunately. Completely stripped out the back yard

but that in itself revealed a few problems. It had some quite tall, old walls.

I was going to reduce them, but the whole things were going over,

so one was taken down and rebuilt completely. The other was made good.

In a previous life, Tony was a brickie, so he enjoyed dusting off his trowel and rebuilding the wall.

He also had to replace the wooden beam in the kitchen with a new structural wall,

but I think this kitchen is still a good size. And the sitting room feels so much more spacious, too.

Upstairs, the changes continue. There's still no bath in the bathroom,

but it is a tight space and the shower is fine.

The bedrooms are also looking good, but what about that boiler in the second bedroom conundrum?

The boiler's still here, unfortunately.

I got a gas fitter in to take a look at it.

Unfortunately, because of building regulations, there wasn't enough space in the loft.

It was all to do with having it on a party wall. It was the same story in the kitchen.

There was nowhere to put it. I'm going to get a carbon monoxide detector fitted

just to give any future tenants peace of mind.

Having the boiler in a bedroom cupboard might not be ideal, but Tony took professional advice

and it complies with safety regulations. That carbon monoxide detector is vital.

He's left the loft as storage space

and when the weather improves plans to put some decking in the back yard.

Now I'm relieved to see that Tony's avoided the wine chiller excesses of his last renovation project,

but he has had to spend more money than he hoped on this project.

In the sitting room, there was quite a lot of fitted units and all the furniture.

I didn't have a good impression of what the place was like, but I had quite a bad damp problem.

So all the internal walls were quite damp.

Once we got the wallpaper off! I couldn't see it initially, but it was quite damp.

Sorting out the damp course and replastering has put Tony about a month over on his timescale,

but what has it done to his budget, which was £7,500-£10,000 tops?

By the time I've done the little bits in the yard, it's probably more like 12,000.

A spend of £12,000 would bring Tony's total outlay here to £32,000,

but is there still room for a bit of profit in this mid-terrace?

We asked two local property experts, including the one from before, to give us their opinions.

I think the refurbishment

is very good. It's to a very high standard and he has made a massive difference with the property.

It's very well refurbished. There's been an awful lot of work done.

There was a problem with damp and that's been sorted out with a guarantee

and a new kitchen, which is super.

Tony's preferred option was to sell the property on, so what do the experts think

this refurbished mid-terrace would fetch on the rather slow local market?

In the current market, I'd recommend putting this property up for sale for a price in the region of £55,000

but I do think you'd look at accepting around the £50,000 mark.

The sale valuation I would put on this property would be £50,000-£55,000.

Unbelievable. I can't believe it. I think that's well above what I was expecting.

I was expecting mid-40s, so, yeah, that's fantastic.

Those resale values would mean Tony could be looking at a profit, before tax and expenses,

of between £18,000 and a max of £23,000 if he sells on.

What about the rental market?

In this area, a property like this, you'd be looking at a rental figure

of in the region of £330-£335 per calendar month.

I would suggest £395 per calendar month.

I'd sort of thought of a rental figure somewhere in-between, maybe around 370,

so that's encouraging as well.

The experts' valuations would mean a yield of between 12% and almost 15%.

Now that represents a seriously good return on Tony's investment.

Enough to tempt him down the rental route perhaps?

Well, I had originally decided that I was going to sell it,

but with the additional costs of refurbishing the place, I'll look at renting it for a couple of years

and recoup the money I've spent.

So many different experiences of buying at auction and we'll have plenty more next time.

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

-Goodbye for now.

-Goodbye.

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