Episode 22 Homes Under the Hammer

Hello. It's always really exciting opening up the auction catalogue

and just seeing those properties just lined up for inspection.

From bungalows to barns to beautiful cottages, they are all waiting for your bid.

You can usually find what you're looking for when you buy under the hammer.

These turbulent financial times don't mean you always have to put your dreams on hold.

No, when "budget" and "save" are the watchwords, auctions could be just the place

-to find the property you're looking for.

-So let's see who's bagged a bargain on today's show.

Whoever tackles this semi in Eccles has a mighty big job on their hands.

It's a right old mess. It's more like a builder's yard.

This land in Kent has plans for a three-bedroom property, which in summer becomes four bedrooms.

Confused? Yes, I am.

I like impressive frontage and this Stoke house certainly delivers.

In terms of front gardens, it doesn't get much more manicured than this.

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.

Today I'm in the town of Eccles in Greater Manchester.

Home, of course, to the famous Eccles cake, the town is a mixture of old and new.

And the auction lot is just five minutes' drive from the town centre.

The property I'm here to see is on this estate of largely ex-local authority houses.

They seem to be pretty well maintained, which is good news. Very close to Salford Royal Hospital

so potential for rental and this is it - a three-bedroom, semi-detached. Guide price 60 grand.

Let's take a look.

'As it's on a corner plot, it has the advantage of land front and back and also to the side.

'A promising start.'

So what have we got? Oh, nice, big entrance. That's always good to see.

Somewhere to hang your coats, put your bikes, whatever. I do like ex-local authority houses.

They're solid. All the walls made of stone or brick. You can do a lot with these properties.

Also, the rooms are generally well-proportioned, good sizes.

Your front living room area with the bay window. Then the kitchen.

Yeah, a decent enough size. You might want to consider taking out this wall

and extending into the dining room area. Or just keep it as it is. It's a good, solid house.

'It seems to have all the right rooms in all the right places.

'There is quite a lot to do, though. The kitchen definitely needs replacing.'

So upstairs, a nice, big landing here.

Bathroom and toilet where you'd hope it would be. Needs a bit of a tidy up, but it's a decent size

and would certainly add a bit of sparkle.

And then three bedrooms. Two good-sized doubles and a single.

So, yeah, what can you say? Nothing too untoward. It's all good news, really.

# It's all good... #

'So far, it's a perfect DIY project.

'It would just be a case of rolling up your sleeves and scraping, rubbing, painting and fixing.

'New flooring would be in order and the bathroom needs attention, but it's good...until you go outside.'

Well, at the front and side, the garden, as you can see, is a right old mess.

It's more like a builder's yard! With lots of...well, you can see.

What we also have here is this - a half-completed extension.

My guess is that this might not have planning permission.

A simple call to the local planning office would sort that one out.

Has it been constructed to building regulations? Don't know.

It doesn't have a roof or even a rear wall here. Work to be done.

But if that was completed, it would be useful extra space.

But it's just adding to the list of to do jobs on this one, isn't it?

# Why do all good things come to an end

# Come to an end... #

'What seemed like a straightforward but lengthy list of to dos just got a whole lot more complicated

'and there's more. There's a series of old out houses.

'They're in the process of being attached to the extension,

'though currently they're more dog's breakfast than breakfasting room.

'But getting the extension checked out would be my priority. Is it legal? Is it safe?

'We asked a local property expert for his opinion on this place, which had a guide price of £60,000.'

It's obviously a full renovation. I don't think there's any room

that doesn't need work doing to it. So new kitchens, new bathrooms, replaster, possibly rewire it.

But it would make a good home.

'What would he do with that half-finished extension?'

First impression is pull it down. It's not been a good job at all,

but it gives you a chance to do something with that area out there.

'So assuming that either the extension was finished or replaced with something new,

'what could this house that was guided at £60,000 sell on for?'

I think once renovated, if you put an extension on the side or a conservatory or extra room,

would be able to achieve around about £115,000.

'And on the rental market?'

The rental value on this property, three bedrooms, nice area, we'd easily get £625 per calendar month.

There's clearly work needed to turn this house back into a home,

not least sorting out that extension, but it's a good, solid property in a great location.

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

OK, this is lot 54.

I went to see this property.

It's quite a big property.

Got to be worth £60,000 of somebody's money here today.

60 bid. Thank you, sir. £60,000 I have.

62, may I say? At 62. New bid.

At 62,000. Do we see 64?

At 64,000. 66 in the room.

67. At 67. Where have we gone? 68?

£68,000. The light's in the way. £68,000. 69.

Put you in for 70. At £70,000.

At 71. At 71. And there's a new bid at the back.

I'll have to put you in for 73 at the back.

At 73,000. The lady seated.

May I say 74? 74,000.

At 74,000.

75. Firs option on the phone. And it's 75.

76, madam, seated? You've driven off your competition behind you.

At 76,000, seated. 77 I'm looking for.

77,000. 78, madam?

At 78,000, then. Do we see 79?

78 and a half? Try. Go on. 78 and a half. Same to you, madam. No?

78,500 for the first time on the telephone. What about another £250?

78,750?

78,750. There. At 78,750. Is he going to round it to 79?

No. At 78,750, then, for the first time. Second time.

The third and final time.

78,750.

'For that slightly unusual price of £78,750,

'The successful bidders were married couple Bernie and Bill.

'Bill's a landscape gardener, while Bernie is a senior administrative officer

'for children's services.'

-Lovely to meet you both. Congratulations.

-Thank you.

-Tell me why you wanted this place.

-Maybe an investment.

-Maybe?

-Maybe, yeah.

So is the idea then to do what? Rent it out?

No, we're going to live here. And then five or six years down the line, either rent it

or sell it. And then we move on to start something else again.

'Bernie and Bill have been together for 14 years, but only married 14 months ago at Gretna Green.

'They'd been looking for a property either to invest in or live in for a while.'

So how was the auction?

-It was a real emotional experience, wasn't it?

-Yeah.

We were one step ahead. We were buying it before the auction anyway.

-Sorry?

-We were buying this before.

-Were you?

-Oh, yeah.

-What happened?

-Well, we couldn't complete. Or somebody couldn't complete.

-So you'd agreed a price.

-Yeah.

-Absolutely.

-We agreed the price.

-What price?

-85.

-And you got it for?

-78.

-So how do you feel, then?

-Fantastic!

-Over the moon!

-I wanted to cry!

We had everything done, surveys.

'They paid £78,750, to be exact, making it a saving of just over six grand.

'Even though they were disappointed they couldn't complete earlier,

'following the house to auction really paid off.'

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

-Well, new bathroom, new kitchen.

-Obviously new roof on the outhouse.

-What about that mixture of rooms and outbuildings

and half-started extensions? What are you going to do with that?

-Well, the far room is going to be a utility room.

-Yes.

The door next to it is going to be a toilet and we're working on the rest of the space.

So what's the budget for the work?

-You might laugh at this.

-You probably are.

-15, but we want to spend about 10.

-Why are you so convinced I'll laugh? You think it's quite low?

-Yeah.

-When you see the size of it!

'£10,000 is no laughing matter and neither is a 3-4 month timescale.

'The couple intend to tackle a lot of the work themselves

'and will bring in tradespeople when needed.' How will you get on working together on this project?

-We know who our project manager is, don't we, Bill?

-Who?

-There's only one!

-Rottweiler B!

We'll be fine. You'll be doing a lot of the things. I'll be like, "This needs to be done.

"Go away and..."

-Are you excited by the prospect?

-Oh, God!

-Love it!

-Yeah.

-Not afraid of any of the work.

-No, it doesn't faze us at all. We like this.

-Love it.

-Why haven't you done it before?

-Well, it's been timing, finances...

You get to a time in your life when you think it's time to move on to something else now.

-Something different. We always wanted a project.

-We did.

So we've got that now.

-Listen, congratulations.

-Thank you.

-Look forward to seeing how you get on.

-Oh...

'Something tells me these two are going to get through this with their sense of humour and determination.'

Still, lots of work to be done to sort it out.

I'm particularly interested to see what they do with the outbuildings. You can find out later in the show.

This is St Mary's Bay on the Kent coast. It's a proper English seaside town.

The area really thrived in the '20s and '30s with holidaymakers drawn to the beach

and a Hi-De-Hi-style holiday camp which, rather bizarrely, turned into a poultry farm in winter.

The question is, will our lot today turn out to be a sunny proposition or a real turkey.

# You are the wind beneath my wings... #

'Plenty of scope to stretch your wings and legs on this "bootiful" beach,

'but will the property pickings here be plump and juicy or on the "poultry" side?'

Just minutes from the coastline is the lot I'm here to see. It's a very interesting one.

It's actually a plot of land on this unmade road

and it's got planning permission for two chalet bungalows.

And it's got a guide of £80,000-£85,000.

This is the plot. Sorry, viewers, I didn't pack the strimmer today so I'll let you take a look around.

# Jungle boogie Jungle boogie, get it on

# Jungle boogie Jungle boogie, shake it around... #

'Hack all of this back and there's plenty of room here for two bungalows.

'And all just a plastic disc throw from the beach, over that rise.

'Surrounding the plot is an intriguing mix of properties from all eras,

'so what about the plans that came with this parcel of land?'

So here is where it gets a little bit confusing. These plans were originally submitted for this site

back in 2005. What we've got here is essentially a one-bedroom bungalow with garage, utility, loo and hall

all on the ground floor, and the bedroom, lounge, kitchen and bathroom upstairs.

None of this is particularly good use of space, so it's no surprise the plans were resubmitted

for a three-bedroom bungalow with the lounge downstairs and kitchen and third bedroom.

More effective use of the square footage, yes, but also turned down by the local planners!

So what do we have now? Well...

The plans that have been passed and sold with this site are these.

A sort of halfway house going back to the original downstairs floorplan

with no actual living space at all and two bedrooms upstairs with the kitchen and lounge,

which could be considered a third bedroom in summer. Confused? Yes, I am.

What on earth is going on?!

# I said, hey What's going on? #

'Now, in principle, I'm not against the idea of an upside-down house

'with the living accommodation on the first floor, but for the planners to insist on that layout,

'well, that might sound peculiar.

'But, as is often the case, there's a perfectly good explanation and you don't have to go far for it.'

The reason for all this planning hoo-ha is just there. That's right - it's the sea!

This area falls within a coastal floodplain. In fact, according to the Environment Agency,

our lot is in a high-risk flood zone with a 1 in 200 chance of flooding each year.

Now this alone makes a massive difference to the planning process.

Not only won't the council allow bedrooms on the ground floor,

in this case it won't allow living space of any kind, so these bungalows will always be top heavy.

It's not ideal, but I'd just be grateful the plans have been passed

and all the headache and hassle of planning have been done by someone else.

'In fact, as it's taken almost six years for the plans to get here, I'd be very wary of tinkering.

'So what have we got?

'The plot and the plans went to auction with a guide price of £80,000-£85,000.

'Now the two bungalows on the plans are not huge and I reckon if you're canny, you could build them

'for around £60,000 per bungalow. So if you buy the land for, say, £80,000

'and spend £120,000 on the build, you'd be looking at investing about £200,000 here.

'We asked a local estate agent how those figures stack up.

'What could each bungalow sell for?'

I would expect a marketing price, when finished, of perhaps in the region of £150,000-£160,000.

'So there's a very decent profit to be made on the resale market,

'but what about if rented out?'

We'd be looking at a figure of approximately £695 per calendar month

to perhaps £725.

'I think this is an interesting proposition.

'If you can see past the fact that the plans are for upside-down houses

'and you keep your build cost down, there's money to be made. Let's see who went for this at the auction.'

Lot 120. It's got planning permission for two detached chalet bungalows

with garages. £80,000 to start me?

75,000, then? I don't mind. 70,000 if you're quick.

70 I have. I should think so, too.

At 70,000, maiden bid. 72 is bid.

And 74? ..73, I don't mind.

And 74. And 75.

And 76. And 77.

And 78? A very definite no, wasn't it?

77 I have. At 77,000, gentleman on the right-hand side.

At £77,000, his bid. 78 do I see?

At £77,000. It's being sold for the first time at 77,000.

Being sold for the second time at 77,000. Being sold for the third

and final time at 77,000. Are you all done?

'That successful bid of £77,000 - three grand under the guide price - was placed by Simon.

'He runs a business supplying meat and vegetables to Indian restaurants.

'But Simon and his bricklayer friend Lee are swapping naans for plans

'and are all set to get going on this site.'

Guys, congratulations. Great to meet you. How did you meet? And why take this venture on?

Well, we met through football. I'm a few years older than Lee.

He was a young boy coming into football and I was near the end of my career. We played in a local pub team

for a little while. And Lee's done work for me in the past.

-We just decided to do this as a joint venture.

-Have you ever worked together before?

What we did was Simon bought a bit of land about 18 months ago.

It was a bit of land that I was going to buy. We live in the same village

and have a pint from time to time.

Eventually Simon bought this piece of land, I did the work on that and we developed it.

-And it went really well?

-Very well.

And so, you know, this piece of land came up that Simon noticed

and he asked me if I'd be interested and I think between us we should do OK.

Where do you guys stand now? Are you going to go with the planning permission it has?

We are really, I suppose, but we are altering it.

We hope to make it bigger, slightly bigger.

We have looked into it with the architect that has done two very near to here.

We could probably appeal and contest to try to get living accommodation on the ground floor,

but it's time. But the drawings that he's done, he's spoken to the planners

and the signs look pretty good. But we've got to go back through planning, so it's not 100%.

'Uh-oh. Alarm bells are ringing in my mind at least.

'Going back to the planners with new drawings after all the toing and froing already?'

Oh, look! Now I love the front elevation. That looks beautiful.

-Is that going to be facing towards the sea?

-No.

-This way?

-Yeah.

So this is what you'll see as you drive in. So you have the same size accommodation downstairs

-as upstairs.

-Well, upstairs is a lot bigger, in actual fact.

Because this is a car port, it's not living accommodation.

-So you've sneaked a bit of extra space in here!

-We hope so!

You've increased the square footage upstairs by putting a car port on the side. Very clever.

-Who came up with that idea?

-The architect. He's done all this.

-That's a good idea,

a good way to get around that.

So you've now got a much bigger lounge.

'The new plans have all the living accommodation upstairs,

'but will the planners approve the new exterior look? That said, if they get the new plans through,

'Simon and Lee will have two larger and potentially more valuable properties on the plot.'

So, guys, what's your budget for the build costs?

We estimate roughly about £100,000 each house.

We've done some homework and think it'll come out at that.

We'll hit a few snags on the way, but round about £100,000, so £200,000 for the two houses.

-What sort of timescale?

-It'll probably be 6-9 months,

all done and dusted from start to finish.

'These two seem remarkably unfazed by the task ahead, but with more planning hoops to jump through

'I do worry about their 6-9 month timescale, though.

'Simon will hold the purse strings with Lee doing most of the work.

'But all this does seem quite a long way from the pub football team where Simon and Lee first met.'

How do you think you'll get on with this, as mates? Think you'll still have that pint up the pub?

Lee will be in charge of it all. I'll only come down from time to time. It's Lee doing it all.

-Simon, you've got the easy job.

-Well, yeah, I have.

-I'm so excited.

It's going to be really interesting to see what it looks like. I hope you do well. Well done.

-Thanks, Lucy.

-Nice to meet you.

-Thanks very much.

Simon and Lee have got an exciting and busy time ahead,

but their architect has come up trumps with those plans.

A worry, though, that the site may still prove problematic

and will going back to the planners be more hassle than its worth?

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

Coming up: some people believe there are only wrecks in auctions.

This is a classic case of one of those properties that blows away the sceptics.

In Kent, Simon and Lee bought land with plans already in place, but they had other ideas.

We literally started from the beginning again.

But first, are the experts impressed with Bill and Bernie's renovation?

The quality is exceptional. The attention to detail is brilliant.

It was in the Greater Manchester town of Eccles where we first saw this three-bed, end of terrace

that initially appeared to be a decent refurbishment project.

Although in poor order inside, the layout and structure held promise.

It also sat on a corner plot, so had land at the front, side and back.

But it was here at the back where the problems started,

with a half-finished extension attached to outhouses which made the area more of a building site.

But this didn't put off married couple Bill and Bernie,

who were determined to make it their new home.

# With all your faults I love you still

# It had to be you, wonderful you It had to be you... #

-We were buying it before the auction.

-Sorry?

-We were buying this.

-Oh, yeah. Yeah.

-What happened?

-We couldn't complete. Or somebody couldn't complete.

They saved over £6,000 by following it to auction and plan to do it up and move in

before selling it on or renting out.

They hope to complete renovations in what I was worried was an over-optimistic 3-4 months,

on a budget of £15,000.

Now, a whole 14 months later, we finally catch up with Bernie and Bill.

Well, it may have taken longer than planned, but from the front the house is looking much better,

with new double glazing in the front porch.

And inside...

The house now definitely seems like a home and a recent one at that. When did they move in?

Just on Saturday. Three days ago.

-I know. Four days ago.

-Couldn't wait.

So what have they just moved into?

Downstairs, the kitchen's modern and smart.

The dining room off it has a really fresh, welcoming feel.

While upstairs, the three bedrooms are unrecognisable from before,

now fully decorated with new fixtures and fittings.

The bathroom, well, it's not really a bathroom any more,

with a modern shower replacing the tired old bath.

So, yes, this certainly is a place ready to be lived in,

-but remember the challenge wasn't so much the house.

-The major trouble was the extension.

It needed a roof, needed floors going in and obviously plastering,

pipework, electrics, you name it.

Now it's got all that and more.

With a utility area,

a cloakroom and also a fully-fitted bathroom,

which does have a bath.

And a bedroom. They've turned what seemed to be a negative into a real plus point.

It's like a little self-contained area, really.

You've got your own front door and back door entrance to it.

They've done a great job. Although they got tradespeople for some jobs, they also did a lot themselves.

So how did working together go?

-We'd had our ups and downs.

-We did.

-Oh, yes, we did.

We have fall outs every now and again. I put paint on the wall and thought, "I don't like that.

"It's doing nothing for me." Painted it totally and thought, "Don't like that. Got to change."

-So... Yeah, patience. You have got a lot of patience, haven't you?

-I have, yeah.

# Have a little patience

# I really want to start all over again... #

No wonder it took so long, but, you know, sometimes it just has to be right.

However, time is money. So did their £10,000-£15,000 budget go the same way as their timescale?

£24,000!

Yes!

That's quite a jump, that, really.

Yeah, but...

-It was worth it in the end.

-It was.

-Worth it, you know.

-It was money well spent.

£24,000 is a jump up from their original budget.

Added to the £78,750 they paid at auction,

their total outlay is about 102,750 quid.

So is Bill right? Was it money well spent? What do two local estate agents think?

The quality is exceptional. The attention to detail is brilliant and it just smacks of quality.

It's been really nicely refurbished. uPVC windows, central heating,

new flooring, new decorating, new kitchens, bathrooms. It really has had the works done.

It certainly gets the thumbs up from the estate agents, but will that equate to good valuations

on this house on which they've spent nearly £103,000?

You could possibly get anywhere between £110,000,

and possibly if you got the right purchaser maybe as high as £120,000, but that would be top end.

I'd expect a current asking price in the region of £110,000.

-That's really good, isn't it? That's very good. Do you think so?

-Yeah.

So perhaps a modest pre-tax profit of between £7,000 and £17,000.

The estate agents also thought the property could achieve £550-£575 per calendar month in rent,

which would mean a healthy yield of around 6%.

But with no immediate plans to let or sell, what's next for Bill and Bernie?

-We would love a holiday this year.

-We would.

-We forfeited that.

So we thought, right, get a holiday. At least one!

-A week would be nice.

-Two week!

This is Mow Cop Castle, a medieval fortress and tower in Staffordshire.

It dates back to 1754 when it was thought to have been built as an elaborate summerhouse,

rather than the mighty fortress it might suggest.

You can see it from all of south Cheshire and from the property I'm here to see today,

which is 18 miles north of Stoke on Trent.

I'm in Brown Lees in Staffordshire moorlands

and the property up for auction was a three-bedroom semi-detached with a guide price of £80,000

but before I've even reached the front door, I'm impressed.

You can tell a lot about how someone looks after their house by their garden

and in terms of front gardens, it doesn't get much more manicured.

'My expectations have been set high here, given this lovely garden

'and the position of the house on an elevated plot.'

Well, let's hope the inside is as immaculate.

Through the front door. Traditional layout for this kind of property.

Living room on the front, central stairs up to the bedrooms and then over this way to the kitchen.

Now... the layout at this point starts... Well, there's nothing wrong with it,

but it could definitely be improved. Kitchen area, storage cupboard there, then the bathroom and loo,

the only one in the property. Clearly not an ideal place to have it at all.

And it makes this a very small place. So take out that wall and increase the size of the kitchen.

One real positive thing is you pass through into this area,

which originally would have led into the rear courtyard area.

It's got this conservatory on it. It might be a bit dated, but it adds valuable space.

# Ooh ah, just a little bit A little bit more

# Ooh ah, just a little bit You know what I'm looking for... #

'You can't take issue with the condition the property's in.

'Just as the front garden suggested, the place is well-maintained.

'Guided at £80,000, it could make a great starter home

'and wouldn't necessarily cost a fortune to do up.' Upstairs, any nasties to discover?

Absolutely not. Just three decent-sized bedrooms and, yes, it could do with a lick of paint

and a bit of modernisation. It's got some nice original features.

This is a classic case of a property that blows away all the sceptics

that say all auction properties are derelict wrecks. This one isn't. And lucky whoever spotted it!

# You hit the spot

# Like a balmy breeze On a night in May... #

'Remember I told you that Mow Cop Castle could be spotted from all around here? There it is.

'One of the bedrooms could be turned into a bathroom to move that upstairs. That would be a shame

'as the three bedrooms are worth hanging onto. Maybe the solution is

'to build a new single-storey extension, replacing the current structure, which may be a problem.'

At the rear of the property, this flat-roof conservatory throws up a few issues

when it comes to insurance. A lot of mortgage companies don't like flat roofs.

So do you keep that? It creates a little bit of extra space. I don't think that's a problem,

but it does lead you out into a really nice rear garden. It's all in good condition.

There's nothing wrong with this house.

'Nothing except for that downstairs bathroom off the kitchen. That's my only bugbear.

'What will a local property expert make of this house, guided at £80,000?'

If this was my property,

I'd certainly consider moving the bathroom to the first floor. That would make a large difference.

But would losing that third bedroom have a negative impact on its rentability?

What it loses on the rental income, it will actually gain on the rentability or saleability.

You're moving that bathroom from the ground floor and it would be a sticking point

with a lot of buyers or tenants.

Once the property has been upgraded, perhaps rewired and that bathroom sorted, what could it sell for?

Once the property's renovated, I'd have no hesitation in putting it on at £125,000.

-What about rental income?

-Again, once renovated,

on the rental market I don't see £525 per calendar month being a problem.

So this house appears to be a solid investment and it's in great condition.

But the property market is still tricky, so what condition is it in and what was someone willing to pay?

Let's go to the auction.

Lot 60. Three-bed, semi-detached.

In need of modernising.

What should we say for Lot 60? 70 to start me?

65, then? 65 bid. Thank you.

At 65,000. 70.

At £70,000. I'll go in ones if it helps. 71.

72. 73. 74. 75.

At £75,000, then. New bidder. 76.

77.

78. 79.

80. Another one?

You're not looking at me. I'm assuming you're out. Another one anywhere else?

£80,000 for the first time.

£80,000 for the second time. Third and final time at 80,000. It's your lot, sir. Well done.

'That relieved young lady was Sarah. Her boyfriend, Andy, was doing the bidding

'and, accompanied by her dad Bill, they bought this for bang on the guide price of £80,000.'

# No need to ask He's a smooth operator

# Smooth operator... #

'Andy's a plasterer and will be smoothing out any problems with the help of Bill, an electrician.

'I met up with them to find out what they had planned.'

-Andy, Bill, good to meet you both.

-Hi.

-Hi.

-Congratulations.

-Tell me why you wanted to buy this house.

-Me and my girlfriend have been looking for about six months.

We missed out on a couple, then we looked on the internet and we saw this.

-So are you first-time buyers?

-Yeah.

-Great. Not many first-time buyers venture into the auction rooms,

-but you did.

-We did. We'd been offering on properties and missed out and we saw this one.

We had two viewings before we bought it and we loved it.

-So, Bill, what's your involvement?

-I used to be an electrician years ago.

-Right.

-They asked me to come along and have a look.

-Did you look at it before the auction as well?

-Yeah.

-And what did you think?

-Too good to be true, really, for the price.

I've worked in these kind of houses and they're solid.

You might get a bit of damp or what have you, but it's curable.

And looking round this, I don't think you'll get much better.

-So you're father-in-law, then?

-To be.

-To be?

-Yes.

So you're going to get married soon?

Maybe!

# Maybe, baby, I'll have you

# Maybe, baby, you'll be true

# Maybe, baby, I'll have you for me... #

'Well, no date set just yet. Andy and his girlfriend, Sarah, are living at her parents' house

'and will move in here once this place is refurbished.'

-What are you going to do to it?

-Rewire, new central heating system, replaster throughout.

Downstairs in the kitchen we're going to take out the dividing wall between the bathroom and kitchen

-and take the bathroom upstairs.

-And lose a bedroom?

-Yeah. The kitchen's one of the main parts.

-And the conservatory on the back?

-We've not made no plans. We'll possibly put a toilet downstairs.

'It all sounds like a perfect plan. Bill's experience as an electrician

'plus Andy's dad Craig being a builder means he shouldn't have too much trouble sourcing help

'to do the work in his timeframe of 4-6 months.'

-What's the budget for the work?

-Pretty much non-existent, really. It cleared us out at auction!

It perhaps came a few months too early. We were saving for a deposit and all the other fees.

-We've got at the moment about £2,000 to start the work.

-Two?

-Yeah.

And then it'll be as and when what spare cash is available every month, really.

-Doing it myself I can keep the costs down.

-You've got to buy boilers and radiators

-and kitchen units.

-We've got friends and family who will help out, a few things already bought for us.

-Well, congratulations.

-Thank you.

-Good luck. We look forward to seeing how you get on.

-Thanks.

Well, for whatever reason, a lot of first-time buyers don't consider the auctions,

but they're definitely worth a look. I think he's got a cracking house

and with almost-father-in-law Bill, I'm sure they'll do a great job.

You can find out how they get on later in the show.

Once you've bought your property at auction, you may think the hard work is over,

-but believe me that is not the case.

-Sometimes the purchasing is the calm before the storm,

-so have today's buyers ridden the waves or sunk without trace?

-Let's find out.

Blue skies, crashing waves and a gorgeous stretch of beach.

OK, so the Kent coast isn't quite Baywatch, but there was something here that needed saving -

this plot of land, which was frowned in weeds.

It was Simon and Lee who came to the rescue by buying the land for £77,000.

They originally met in a local pub football team and this was their first business venture together.

How do you think you'll get on? As mates. Still going to have a pint?

-Yeah.

-Lee will be in charge of it all. I'll only come down from time to time to have a look.

-It's Lee doing it all.

-Simon, you've got the easy job.

-I have, really.

-And you've got a lot of hard work ahead.

-I have.

-Mind you, you were the younger one in the football team.

-That's right.

'There was already planning permission for bungalows,

'but with risk of flooding no living space was approved downstairs.

'So the kitchen, living room and two bedrooms were to be upstairs above car ports,

'but the guys wanted to re-apply for permission to build two three-bed properties with car ports,

'allowing more living space on the upper floor. I was dubious about their 6-9 month timescale,

'but surely three YEARS later they've finished?'

# You raised me up to walk on stormy seas... #

'Well, the houses are up and looking great. They're not quite finished, but they're getting there.

'They're like bungalows on stilts as it's not possible to get approval for living space downstairs.

'So what they've done instead is to go larger to the side, creating extra space for a third bedroom.

'As I suspected, getting the plans amended is what ate up all their time.'

We had lots of issues with the planning, re-applying,

which takes a long time. We had lots of issues with the original architect that we used,

so we transferred to a new architect that we've used before.

It's just months and months on end and it's taken a long time to get the project underway.

'As Lee and Simon found out, just because there's approved planning permission,

'even if you don't amend the plans, starting the work is still not plain sailing.

'You need to prepare for choppy waters.'

Even though you buy the property with detailed planning,

it has to start again. We had to get flood risk reports, badger reports,

so we've literally started from the beginning again. That's why it was so time-consuming.

I think it was over a year before we got the agreement from the council

and then building regs hadn't been applied for. We thought they had.

And it was another 8 or 10 months. So, all in all, it's been nearly two years,

until we finally started the production of the buildings.

'But all that waiting has been well worth it and I love that blue wooden cladding on the outside.

'It may seem odd to have a property essentially upside down, but imagine the view on a clear, sunny day.'

# I want to turn the whole thing upside down... #

'It's still a bit of a building site here, with Simon managing the teams of workmen at each stage.

'Bearing in mind it's been three years and they've still not finished,

'how far off does Lee think they are from having them complete?'

The electrician's just finishing off, the plumbers are finishing off.

We've got to fit the kitchens and do all the carpentry.

Em... which won't take much longer now.

The rendering, we might have to wait another week before it's rendered.

The weather's a little bit too cold at the moment,

but apart from that we're probably only 6-8 weeks away from completion.

'The timescale may have gone well over the estimate. Has the budget?

'They hoped to spend about £100,000 per house,

'so multiply that by two plus the £77,000 they paid at auction,

'that would be a total spend of £277,000. How close to that are they now?'

We think it will be in the region of just over £300,000 in total - buying the land and building the properties.

We've still got a considerable amount of expense as you see for the area for parking

and the patios out the back. That's the sort of region we reckon.

'An overspend of £33,000 then? But when it's done, I think it will be amazing and worth every penny.

'Any potential buyer or tenant should agree. They haven't decided what to do with them yet.

'They could rent them out as holiday homes or sell them as beach-side properties.

'Maybe some thoughts and figures from two local property experts will help.'

I'm quite surprised. As you come in to the development, it opens up.

They've got really nice cladding on the outside. It's going to be a really nice development.

The size of the accommodation and general layout is very appealing.

Having put the living accommodation off the ground floor,

with the potential risk of flooding perhaps in the area, in the UK as a whole,

people are looking for this kind of thing.

'On to figures, then. Keeping in mind that total outlay of £300,000 for the land plus the two builds,

'what could they each be worth?'

I would market each property for £225,000.

I feel they could sell for within the region of £215,000-£225,000.

'That top figure of £225,000 could see Simon and Lee clear a profit of £150,000,

'minus fees and taxes. What do they think of that?'

Happy enough about those values. When these are completed, I think it'll be closer to 250, personally.

I think once they're all landscaped and that, it may increase the value,

but we're not disappointed at that.

-'What if they decided to let them?'

-I'd say that each property would rent

for £750 per calendar month.

If we were looking to rent these properties in today's market,

we'd be looking at a rental in the region of £750 per month.

'That would give them a yield of around 6%. What if they decided to go down the holiday let route?'

These properties could let for potentially within the region of £500-£700 per week.

We did have that in mind, that sort of figure. That seems a fair valuation.

'Plenty to think about then, but they'll wait until they finish to see how the market looks.

'However, the holiday let option does seem the most tempting until the resale market picks up.

'So it's been a successful venture for them and they've had some success on the pitch, too.'

We're going to Wembley. Tunbridge Wells is not far away from us

and I know a couple of lads who play for them. We're going to Wembley in May for the FA Vase final.

We'll have a couple of beers that day.

'Time now to return to Brown Lees near Stoke on Trent, where Andy bought this three-bed semi

'for £80,000. He and his girlfriend, Sarah, plan to make it their first home together.

'It was going to be a real family effort. Andy's a plasterer, his dad Craig a builder,

'and Sarah's dad Bill is a retired electrician.

'Bill was confident that this would be a great starter home.'

I've worked in these kind of houses and they're solid.

You might get a bit of damp and what have you, but it's curable.

And looking round this, I don't think you'll get much better.

'Downstairs, Andy was going to remove the wall between the bathroom and kitchen

'and relocate the bathroom upstairs into the smallest of three bedrooms.

'It was just as well the dads were going to be on hand to help, given the finances.'

What's the budget for the work?

Pretty much non-existent. They cleared us out at auction.

It perhaps came a few months too early. We were saving for a deposit and all the other fees.

-We've got, at the moment, about £2,000.

-Two?

-Yeah.

And then it will be what cash is available at the end of every month.

'With help from friends and family, Andy reckoned the work would take 4-6 months.

'Well, six months after our first visit, we've come back.

'There's "snow" sign of Bill. Just Andy to talk us through the progress.

'But a shining start in the living room.

'I really love the log burner and oak surround.

'At the back of the house, did the wall to the bathroom come down?

'Oh, yes!

'And this large kitchen/diner is the result.

'And a smart shower room has been installed upstairs. It means losing the smallest bedroom

'but I think it's a price worth paying. How does Andy feel now he and Sarah have moved in?'

Glad to be nearly at the end of the road. It's been a lot of hard work,

-a lot of late nights.

-'The house looks good, but there were problems.'

We found some woodworm so we had to treat all the timber floors.

Luckily, it hadn't gone into the joists.

And then the kitchen was a big job.

We had to knock two walls down, cut a doorway out, put a window in. That was one of the biggest jobs.

And moving the bathroom upstairs and getting the waste in.

'The couple went for a traditional style in the kitchen, with a Belfast sink,

'solid wood work surfaces, plus slate-effect flooring.

'It's all looking lovely. This project may not have had a lot of money,

-'but it had a lot of heart put into it.'

-My dad and Sarah's dad, we couldn't have done it without them.

I did most of the plastering, Sarah's dad did the electrics, my dad did the building work

and knocking the walls down.

'Has Andy been busy with the colour charts and fabric swatches?'

The colour and design are down to Sarah. She picked everything. I left it to her.

She's done the decoration and furnishing.

'I'm impressed by Andy and Sarah's makeover in the living room, too,

'particularly that welcoming log burner and fire surround.'

The fireplace was reclaimed from a pub.

We got all the beams out of there and the York stone from work. All free, which is nice.

'Very nice considering that after buying the house they only had about £2,000 left for the work.

'They've added whatever was left at the end of each month's wages.

-'So how much have they spent?'

-We spent about £9,500 in the end, a lot more than I first said.

Apart from the kitchen, we only spent about £3,000. The kitchen was the main spend.

'With the £80,000 they paid at auction, that takes their current total investment to around £89,500.

'It's six months since we first visited the property. Were they snowed under by the work?'

It's taken about four months, from start to finish and moving in.

'There's still plenty to do including making good around the new windows and doors.

'Long-term, Andy plans to divide the conservatory, creating a loo and a utility room.

'I'm really impressed. They really are turning this house into their home.

'Let's see how the numbers stack up. What do two local property experts make of the finish?

'Will the house appeal to the rental and sales market? First, the estate agent who visited last time.'

After being in the first time, they've done a lot of work. It's much better,

the layout downstairs considerably better. Moving the shower room upstairs

is going to create a lot more interest and be viewed a lot more favourably by potential buyers.

They've done a very good job. They retained original features

and it's not quite as sterile and bland as some refits.

What rental income could it generate?

I'd put this property on the market for rent for £550 per calendar month.

Rental value, somewhere in the region of £600 per calendar month.

Helpful to know. A potential yield of 7-8% if Sarah and Andy were temped to let.

That's very nice. I'm pleased with that, definitely. Sarah will be as well.

With the £89,500 the couple have invested here,

will the sale valuations mean any profit?

I'd put this on for £110,000.

Once the property is finished, I'd expect a comfortable value of £115,000,

maybe even pushing £120,000.

More good news. A potential profit of £20,500 to £30,500

before tax and expenses. Not bad after four months' work.

That's nice. I'm pleased with that. It's quite a nice little profit.

-I'm sure Sarah will be pleased.

-She'll be happy with that. I don't think she'll be disappointed.

Although it's finished now, I'm glad we're here. So, yeah, it's been a worthwhile adventure.

Well, once again we've proved that even the smallest properties can end up with a tale to tell.

-So join us next time for more surprising stories here on Homes Under The Hammer.

-Goodbye.

-Goodbye.

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