Episode 23 Homes Under the Hammer

Hello. Those glamorous houses that you see in newspapers and magazines

are very tempting, aren't they?

But do they always seem way out of your budget?

For something a bit more affordable and possibly more interesting,

why not head down to your local auction rooms?

Well, there are literally thousands of properties

that come up for auction every month in the UK.

Everything from flats to bungalows to plots of land.

So, whatever you're looking for,

you can usually find something that fits the bill.

Let's check out what got our buyers' arms waving

in today's auction rooms.

'I get up close and personal at this mid-terrace in Birmingham.'

The lengths I go to exploring properties for this show.

'I've seen some structural issues in my time

'but the one in this London property could beat the lot.'

That, my friends, is a crack and a half.

'And I've always believed the old adage that it's far better to

'give than receive, and this house in Cumbria seems to agree.'

This really is a house that just keeps on giving.

All these properties have been sold at auction.

We'll find out who bought them and what they paid for them

when they went under the hammer.

This is the bustling Birmingham suburb of King's Heath.

It has lovely parks, good transport links

and is known as "the village" by locals.

King's Heath came into being in the 18th century,

thanks to improved road links between Alcester and Birmingham.

Well, these days,

King's Heath is a really popular place to live and shop.

You've got local facilities, amenities

and yet you're only four miles from Birmingham city centre.

But will today's auction lot be the jewel in the King's Heath crown

or will it require a king's ransom to save it from the chop?

Well, the property I'm here to see is on a fairly busy road

but it does benefit from also being on a bus route, which is great news.

So, what was on offer at the auction?

Well, it was a three-bedroom terrace,

had a guide price of £120,000 to £125,000

and the outside looks interesting.

Oh, dear.

That's not a good start, is it?

The door's catching on the box to the electric meter.

That's the sort of thing that really annoys me.

How much effort does it take to make that box slightly different?

Anyway, moving on from things that shouldn't wind me up but do,

at least we've got a nice little entrance area here

with a double-glazed door, so at least it's going to keep

some of the noise from the road and the passing buses down.

Into your front living room area...

Look, by magic, there's a bus.

Into your front living room,

a nice-sized space, big, high ceilings.

Quite like this fireplace too, actually, with the bricks and stuff.

Open fires are always a big favourite. And the floor, too.

Clean that off and you've got a really nice stripped-back floor.

Obviously, two rooms have been knocked into one at some point

and that gives the front and rear living room area here

this really nice open-plan area

and I'm feeling straight away this is not a small two-bedroom terrace.

This is a three-bedroom terrace

which has got lots and lots of opportunity.

And, yeah, it's looking good.

Yes, it's a pretty decent blank canvas really

but if it's a blank canvas you're after,

look no further than the kitchen.

Or what was one once upon a time.

Now, the lack of a kitchen may make taking out a mortgage trickier,

so you might have to shop around, but this is a decent enough space.

And beyond the soon-to-be kitchen?

The lengths I go to exploring properties for this show,

but I am sinking to new depths in this instance.

Look at this, just off the kitchen, there is this sunken bath.

Now, it would look fantastic

in some Roman steam baths,

but, really, in this property?

I don't know quite what whoever put it in was planning,

but I don't think it really works,

so, yeah, it's got to go.

Oh, dear. Toga party, anyone? No, let's not go there.

Up the stairs and there are three bedrooms.

They're all looking a bit worse for wear but they should scrub up OK.

The largest one even has a little en suite which is a bonus.

Well, there's clearly work to be done to sort those bedrooms out

but they are at least a good size and those are the three bedrooms

that are described in the auction catalogue.

What isn't actually talked about is this room here, the attic room.

It's certainly not described as a bedroom.

That could be that it hasn't had building regulations approval

for use as such, but actually, it's a really nice space.

Not only have you got double aspect,

you've also got a little en suite,

so make sure that this is compliant,

and this is a really lovely additional room.

To sell this place on as a four-bed at the very least you'd have

to make sure that the insulation is up to scratch

and that the stairs comply with building regulations.

At the back, there's a decent garden, if a tad overgrown,

and the decking around the house has seen better days.

But there's one aspect that troubles me more than anything else.

It's something in the legal pack.

Now, I'm always telling you that before you buy

a property at auction, you must definitely,

definitely read the legal pack and this particular property

throws up a case in point because it says in the auction

catalogue that this property is freehold with vacant possession.

Well, there's clearly nobody in here

and you might think it is, in fact, vacant possession.

However, the legal pack reveals that there is, in fact,

a lease on this property.

Now, if you were applying for a mortgage, the mortgage company

would not necessarily give you a mortgage under those circumstances

because they'd want to know more about the lease etc.

And if you are looking to move into the property and the leaseholder

should happen to come back, you can imagine the complications.

It needs to be looked over by a solicitor and, most importantly,

forewarned is forearmed.

If you've read the legal pack, you know the circumstances.

If you haven't, you don't.

So, do your homework, read the legal pack and don't buy blind.

It's not rocket science but it's amazing how many people fail

to follow these three simple rules.

What does a local estate agent make of this mid-terrace

and its Graeco-Roman feature bathroom?

The property needs refurbishing from top to bottom.

It needs a new bathroom. It needs a new kitchen.

It needs wiring, new heating and decorating throughout.

Bearing in mind the £120,000 to £125,000 guide price,

what could the property, once renovated, fetch if sold on?

Resale value, once refurbished, I would say around £170,000.

And on the rental market?

I would anticipate a rent around £675 per calendar month.

Well, it's a nice enough property

but it could fail at the most basic level

when it comes to that whole issue of freehold or leasehold.

Especially if you were to be looking to buy this with a mortgage.

Let's find out who did buy it when it went under the hammer.

Lot 144.

This was the penultimate lot of the auction

and did take a while to get going.

Where shall we start, folks?

£125,000 anywhere?

115? 110, I don't mind.

90, then, and I will not go lower and I will move on.

Eventually, the bids did start coming and we pick it up at 110,000.

Going to make me work, madam.

At 111, I'm bid. At 111, I'm bid.

At 111, I'm bid. Is it 115 now?

It's been a long old day. At 115.

At 115, thank you.

At 115, I'm bid, madam.

Is it 116 now? Thank you.

At 116. 117.

Is it 118 now? 118, and thank you.

And 119, is it now?

At 119, I'm bid. Thank you, madam. Will you fill that up for me?

At 120?

And thank you. At 120, I'm bid.

At 120, I'm bid. Is it 121 now?

At £120,000.

I'm putting this on sale to you for £120,000.

For the first time, 120,000,

for the second time, for the third and last time,

at £120,000.

That successful bid of 120,000 came from Tanvir.

She has a Masters in construction,

has worked as a quantity surveyor

and plans to fit this renovation in before starting a new job

as a project engineer for a major car manufacturer.

Go, Tanvir.

-Tanvir, lovely to meet you.

-Nice to meet you, too.

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

I was looking at getting into property developing

and I saw this in the brochure.

I was quite interested in it so it just went from there.

So, why this particular house then?

There was no particular reason really.

I just went through the auction booklet

and saw a few that I was interested in.

And when I went to the auction, this was the one that I got.

-And had you seen it beforehand?

-No, I hadn't.

HE GASPS

-Why?

-I just didn't get time, to be honest.

I was at work. But my auntie came to see it.

-OK, and what did she say about it?

-Well, this was her favourite anyway.

There was a couple she was interested in, but she liked this one.

'Tanvir and her aunt, who's financing the purchase,

'are hoping that this will be the first renovation of many

'in a joint business venture

'so it was good that one of them viewed the property.

'However, there is that second Hammer golden rule.'

-What about the legal pack?

-A big no-no. We didn't read it.

HE GASPS

-You didn't read the legal pack?

-No.

-And we had a bit of a problem with that as well.

-Tell me more.

We bought the freehold on the property

but there was an unregistered lease on it.

Hmm, so what has your solicitor found out about that

and what's your position right now?

We put in an application to Land Registry to have the lease removed

with all the evidence that they needed to show that the house

is empty etc, but they've taken that off since, so we've been quite lucky.

-So it's gone now?

-It's gone now.

-So everything is fine?

-Yes.

-Were you relying on a mortgage?

-No.

-Because if you had been...

I would have been in trouble.

-You'd have been in big trouble, wouldn't you?

-Yes.

So next time definitely read the legal pack.

Well, a lucky escape for Tanvir this time.

I do hope she's true to her word

and makes any future auction purchases with her eyes wide open.

So, tell me, what are you going to do to the place?

Just the usual property developing stuff like full plaster,

kitchen, bathroom, new floors, fireplaces.

Possibly thinking of building the wall back in to make

-it into a hallway and two separate rooms.

-Right.

-So that's the plan and maybe move the bathroom upstairs.

-OK.

And what about the very top floor?

That's included within all of that.

-I'm going to keep the en suite in there.

-It's nice.

-I like that top floor.

-Yeah, it's nice.

-Really pleasant.

-And then the unusual sunken bath.

-Yeah, that's going.

I don't think anyone is really going to like that one.

What's that room going to be then?

I'm going to knock the wall through

-and make that into a big sort of open-plan kitchen diner area.

-Right.

As long as it doesn't cost too much, that's the plan.

Tanvir will project manage and her healthy budget of £25,000 to £30,000

includes labour costs for the job.

She hopes she can get this mid-terrace turnaround

in eight to ten weeks.

She plans to put it up for sale

before starting her new full-time job.

But it's not all work and no play for her.

What about other stuff you've done outside of work?

I've done a little bit of travelling.

I've gone to Base Camp, Mount Everest.

A little bit of travelling?

"Majorca. I went to France. Oh, no, I went to Everest Base Camp."

Yeah, it was tough. It was really good, though.

I'd recommend it to everyone. Really good experience.

You didn't go any further? Not tempted to climb the mountain?

No, it was hard enough to Base Camp. Yeah, it was really good, though.

-Listen, congratulations. Good luck with it.

-Thank you very much.

-I look forward to seeing how you get on.

-Thank you.

Well, things could have gone horribly wrong for Tanvir there

regarding the legal status of this property,

but, thankfully, the issues have been resolved

but definitely lessons to be learned for all.

Just a few mountains left to climb sorting this place out.

You can find out how she gets on later in the show.

Southfields in London, heard of it?

Well, not many have but that's changing.

People are falling for its charm and potential

and property prices are rising in line with its popularity.

It's easy to see why. Southfields is close to Wimbledon.

There are some lovely houses

and I think I may have stumbled upon a bargain here.

The property I'm here to see

is in the less expensive part of Southfields but am I disappointed?

No, I am not, and you know why?

Because this part of the area is much more likely to

rise in value as families, priced out of the trendy part,

look for cheaper homes and it's families that I have in mind

because the property I'm here to see is a house.

It had a guide price of 430,000.

It's got three bedrooms and a rather bad case of pebble dash.

Let's go and have a look around.

Judging by the giant pile of rubble bags,

I'm guessing the new owners have already started work.

It is a dusty, dirty mess in here

so I think we should just work through room by room

in this building.

Now, reception room here, if you can see through the bags of rubble

and, believe me, there are so many of them,

you've got quite a nice big space.

A few features lurking.

You've got a ceiling rose and some cornicing.

Second reception room, again really good space.

You've got lovely old spindles here, some under-stairs storage.

This is a nice traditional terraced house

and right at the back here, you've got this wonderful,

wonderful space which could be incorporated as part of the kitchen.

That's what I would do.

Knock through here and have a nice, big, open-plan kitchen diner

with access to the garden.

I'm going to have a look.

It's only a small garden, but it's all yours

and, once cleared, would be perfect for a table, chairs and a barbecue.

Any garden, whatever its size, is highly prized in London.

Inside and out, you can tell that the place is tired and old

and probably hasn't been updated in a number of years.

But I think there's more space inside than you might expect.

Follow me upstairs and you'll find that this property

takes open-plan to a whole new level.

So, upstairs becomes more open-plan than ever.

And that, my friends, is a crack and a half. Now, look at it.

The rule of thumb would be, if you can get your hand in it,

this way, alarm bells should be ringing.

But look, I can get my whole hand in there. It could be old movement.

This is an old property, but I would certainly get that checked out.

That would worry me. Now look at this property. It is incredible.

Now, we've got quite a spacious room

but the problematic bathroom at the other end of it,

so straightaway I'm thinking how are we going to get from A to B?

Well, the obvious thing here would be to put a corridor along here

but look at the depth of this big old baby here.

Now we are always going on about

how hard it is to knock out a chimney breast.

Look, you can see it goes right up and supports the roof.

That's a big old job but, as far as I can see,

this would be the only way to access the bathroom,

so I think it's fair to say there's a fair bit of work to do upstairs.

It really is a skeleton up here, so you have to use your imagination.

A property developer with an eye for a big project would be

in seventh heaven here as there's so much room to play with.

The front bedroom spans the full width of the house.

It would make a lovely space once you've put up some walls

and the second bedroom behind it is also a good size.

Sort that bathroom access out and you'd have a family-sized home

with plenty of space for a growing family,

as long as that crack doesn't cause too many problems, of course.

The house has decent proportions, but, you know me,

I'm always looking to push things a bit further

and I think you could look at extending out at the back

to make a big full-width kitchen diner and up into the loft

and add an extra bedroom and an en suite

but, before you get giddy with ideas, you've got to consider

the figures and, although this area is up-and-coming,

it's not there yet

and you can't get top dollar for houses around here no matter

what your sights are, so if you did all that work, you could be at

risk of only getting back what you spent and there might be a better

instant return in just renovating the property as it stands, selling

on and letting the new owners fork out the big bucks in their own time.

It's all food for thought but one thing's for certain,

whoever bought this has got plenty more work on their plate.

# Handful of dust

# A handful of dust. #

We asked a local estate agent to brave that dust and rubble

to tell us what he thought.

It's a perfect developer's property. It's completely un-modernised.

You're buying the footprint, which is

one of the largest footprints you can get.

Scope to go out the sides, scope to go into the double loft conversion,

the main loft and the rear loft,

so it can be a very sizeable house when the developer's finished.

He also reckons it would be worth doing that extension out the back.

It would be criminal not to make two large bedrooms

with a bathroom en suite.

It would be far, far superior in floor space.

You're almost going to add more than a third of floor space to the house.

Therefore, the resale value is going to be a lot higher.

What would the resale figures be with and without the extension?

If the property was fully developed in its current shape, it would

be something in the region of

535,000 roughly.

If you did the loft conversion, rear addition and went to town,

especially with the finish,

at the moment they're selling for around 620, which is a lot of money.

And if the extension was done, how much could it let for?

If it was fully modernised and fully extended,

the reality is you're looking between £2,200 to £2,300 per calendar month.

This house has buckets of potential

and is really a very exciting proposition.

I think it was a great one to go for.

Let's see who agreed at the auction.

Invite your bids, 400.

Not going below 400. 400, thank you.

405 anywhere?

405.

410, 415, 420.

416, 417.

418.

419, 420.

421, 422.

423, 424.

425, 426.

427, 428.

429, 430, 431.

432.

433, 434.

435, 436.

437.

438, new spot. 439. 440.

440?

439. First time.

Second time.

Third and last time. Have you all done?

Sold, 439. Well done.

That successful bid of 439,000 was made by Charlie.

He's a developer who currently has a portfolio of 13 properties.

If he looks familiar, that's because he was on the show a while back

when he bought this place in Streatham.

# Oh, where could we have met before? #

He told us then why he wanted to be a property developer.

Hopefully gives you an early retirement and then you can go

and sit on a boat somewhere. That's the motivation.

'Well, he's not retired to a life on the seas just yet.

'He's still going strong.

'So let's find out his plan for this, his latest project.'

-Charlie, we are not strangers. We've met before.

-We have, yeah.

-In Streatham.

-We did, yes.

-You're still developing, buying at auction.

Yes, still buzzing.

I think the market's... It's a good time at the moment, actually.

I think things have slipped a bit and suddenly it's on the up again.

So you're still there ready to pounce on the bargains.

Any bargains. Cover the floor and see what you end up with.

So tell me about this property. Why did this appeal to you?

It's in an area I know.

Really, it was a matter of viewing all the ones that

seemed in the area I cover and then go to the auction

and see which one came down to the hammer.

No particular affiliation to this area, but it's a good house,

a nice project.

The last time we met, you weren't passionate about the properties.

It's all a numbers game for you.

You put your builders in, they crack on and you walk away with a profit.

-How is it working these days for you?

-Yeah, it's still working well.

Same team.

You get to trust them more and more, give them more of a leash

-and let them go, really.

-What's your intention with this property?

To take it to a top-end house?

It needs to be a good, cosy family house.

I don't think we're going to go for the really modern

sort of blank canvas of a house.

We're going to add a bit more character to it

because that's what people want now.

-Now, you've started work, haven't you?

-We have, yes.

There's been a guy in here just filling his lungs with dust, really.

-Tell me about it. Me also.

-A joy to be here.

'Charlie also has an estate agency to run

'so I'm sure his builders won't see him for dust.

'Actually, it is a joy to be here to see the bare bones of this

'Victorian building but it makes it hard to imagine what it's

'going to be like when it's finished.'

What extent are you going to take this?

You can go up in the loft, you can extend out the back.

There is so much you could do here,

but will it necessarily add the required value?

For sure, I think in its current layout, it's a two/three-bed house.

To get to the family market you need to have a big master bedroom,

an extra bathroom, so definitely doing the loft.

Probably not the extension over the back for the bathroom.

We'll just keep it simple and then we'll have to get planning for a side

extension, just make a lovely big kitchen/breakfast room at the back.

Let's talk about the price and do some number crunching.

So you paid 439,000 for this.

439, I think we'll probably get away with about 90

and then hopefully get just over six.

We've got a good arrangement with the bank on interest so, yeah,

-it should be a good one.

-A big enough profit margin for you, do you think?

Yeah, for sure, 100%.

'Charlie seems to have a handle on the figures,

'but that's only if it all goes to plan.

'Could that nasty-looking crack cause him grief?'

So what do you think that is, old movement?

Old movement, it's definitely old movement.

There is no sort of new cracks and really,

it's in the middle of the building.

The house can't fall out of the terrace. It's mid-terrace.

I think it's something that can be healed and covered over.

Charlie, lovely to see you again.

I can't wait to see how you turn this place around because,

at the moment, you need rose-coloured spectacles. Take care.

Thank you.

So, Charlie seems like a bit of a part-time developer

but he reaps big-time rewards. That's the way to do it.

Join me later in the show to see this house finished, developed,

extended and, hopefully, with some walls.

'Coming up in Cumbria, from the front,

'this terrace looks tiny, but...'

I'm slightly flabbergasted by this place.

It's got this whole feeling of space.

In London, we catch up with Charlie

to find out if he enjoyed his latest property venture.

Every project's good fun when they're finished and they're sold.

But first, are the experts impressed with Tanvir's renovation?

It's a great family house, this one, and they've done a very,

very good job all the way through.

Back now to the King's Heath area of Birmingham

and the not-so-regal splendour of this three-bed mid-terrace.

Tanvir bought it at auction for 120,000

and planned to spend eight to ten weeks

and £25,000 to £30,000 sorting the place out.

She saw this as a step to becoming something

of a property developer, assisted by her aunt, who financed the purchase.

'But these wannabe developers very nearly came

'unstuck at the first hurdle.'

What about the legal pack?

Big no-no, we didn't read it.

-You didn't read the legal pack?

-No.

And we had a bit of a problem with that, as well.

'They thought they'd bought the freehold to the property

'but there turned out to be a lease in place.

'Luckily for Tanvir, their solicitor managed to sort it all out

'and work could start at the mid-terrace.'

Four months after our first visit, we're back in King's Heath to see

if this former quantity surveyor is now queen of all she surveys.

# Don't stop me now

# Don't stop me now

# Cos I'm having a good time, I'm having a good time

# I'm a shooting star leaping through the skies like a tiger

# Defying the laws of gravity

# A racing car passing by like Lady Godiva

# I'm gonna go, go, go, there's no stopping me

# I'm burning through the skies, yeah

# 200 degrees, it's why they call me Mr Fahrenheit

# I'm travelling at the speed of light

# I'm gonna make a supersonic man outta you. #

Well done, Tanvir. The place now sparkles like the Crown Jewels.

The new kitchen diner looks really fantastic and, for me,

it's a huge relief to see the Graeco-Roman sunken bath

consigned to the annals of history.

The way the kitchen now opens out onto a proper garden rather

than an overgrown wilderness could be the icing on the cake.

But the other changes on the ground floor work really well, too.

So, in this room we've separated the front room from the hallway

by building this wall.

And over here we originally had a gap in the wall which now has been

filled in and separated the front room to the back room.

The main focus in this room is this new fireplace.

I've kept the original hearth which I think is quite nice

and I've got a new wooden mantelpiece and a central cast-iron piece.

Overall, I'm really happy with the way this room has turned out.

Up the stairs, and Tanvir's been busy here too,

sacrificing half of one of the three bedrooms

to create a new family bathroom.

I don't personally like having the bathroom downstairs

but I had a couple of agents in beforehand

and they said it might be better to bring it up as well.

And also I didn't want to lose a bedroom upstairs

so, rather than converting a whole bedroom into a bathroom,

quite a large bathroom, that's why I sectioned off one of the bedrooms

and made it smaller, into a single room, and fitted the bathroom in.

The old second bedroom is now just a single,

but moving the bathroom upstairs works really well.

Tanvir has also made changes to the layout of the master bedroom,

removing the small en suite that was there.

I think that was sensible as, when you take into account

the refurbished en suite in the attic room,

this mid-terrace is well equipped in the bathroom department.

Tanvir's gone over her eight-to-ten-week timescale,

but not by much.

The slight delay was partly due to the theft of the gas meter

from outside the front of the house.

How has she fared with her £25,000-£30,000 budget?

I haven't fully calculated at the moment,

but it's come to about 32-33,000, which is a little bit over my budget,

but I've gone for a higher-spec finish on it.

I think hoping to make a profit on it,

it's still within what I thought was reasonable.

If we call Tanvir's spend here 33,000, that means her total

outlay, including purchase price, comes to 153 grand.

We asked two local property experts for their thoughts

on the refurbished mid-terrace.

It's clean, it's bright, it's very spacious.

It's a great family house, this one,

and they've done a very, very good job all the way through.

There's high-quality fixtures in the kitchen and bathroom

and it's a great family house.

My first impressions of the property is that it's been completed

to a very high standard.

I'm impressed with the level of work that's been carried out.

What could this place earn if rented out?

This property would rent for around £800 per calendar month.

This property could rent for approximately £850-£900

per calendar month.

Those rental values would give Tanvir

a yield of between 6.5% and 7%,

which is really pretty healthy.

But what about her preferred option, selling the property on?

I would put this property on the market for around £200,000.

This property would resale for somewhere in the region of £225,000.

Wow, that's great. That's more than I expected. So I'm happy with that.

That really is great news.

Tanvir could be looking at a profit before tax

and expenses of between £47,000 and £72,000.

Now, she's recently started a new job with a major car manufacturer,

so will she and her aunt be heading back to an auction any time soon?

I definitely would buy a property at auction again, however,

on this occasion I'd definitely read the legal pack

and have a look at the property beforehand.

And since filming, she's sold it for 205,000, a profit of around 52,000.

This is Longtown in Cumbria, just a few miles from the Scottish border.

# South of the border. #

It's farming country around here,

but there's also lots of local industry

and all the amenities you're likely to need right here in the town.

Oh, and if you did fancy eloping with your sweetheart,

it's only five miles from Gretna Green.

So, will the property I'm here to see turn out to be a marriage

made in heaven for the person who bought it?

It certainly sounds all right from the auction catalogue.

£40,000 was the guide price. Two-bedroomed, mid-terrace.

Let's take a look.

Nice double-glazed front door, which is a good start.

Keep the cold out, and then as you walk inside,

straightaway a really nice feeling about this house,

I don't know why, but decent-sized corridor here.

You've got this little archway above the stairs leading up to the

bedrooms, which is good. Standard layout, in some ways.

Living room there. Gas fire.

I'd like to open it up into a real fire perhaps, or certainly

improve that and maybe modify that whole fireplace surround a bit.

Then through here to the kitchen.

Before you get there, though, there's quite an interesting place.

The loo is actually there, it's downstairs.

It's got a bath in there,

however, of all places it could be, I've seen worse.

Ideally upstairs, obviously, but maybe we can live with that.

Then through into this kitchen area.

This is a really nice surprise cos not only have you got this bit,

which I imagine was the original part of the kitchen,

but this bit, which is in the extension and it gives

a really nice open-plan area

which is great for families or whatever.

Yes, it need some new units and, yes, it need a bit of better

lighting and, yes, this and that but, in general, it's great.

Yes, I really like this place.

There's a certain charm and character to it.

Sometimes you do just get a good feeling

when you walk into a property and this is one of those times.

Obviously, it needs some love and attention but ignore those cosmetics

and take it for what it is, and you've got a lovely little place.

# Don't worry about it, take it as it comes. #

I'm slightly flabbergasted by this place.

It's just got this whole feeling of space, even when you just

walk up the stairs there, it feels really nice and open.

You've got this little landing area at the top.

A small bedroom at the back with these built-in cupboards

although, take those built-in cupboards out and I think that

would give it even more space and then you come into the front

of the property here and the master bedroom is absolutely huge.

Again, built-in cupboards, strip those out and it would be even

bigger and I'm thinking maybe there's enough space here to

put in an en suite or move the bathroom from downstairs up here.

You can do that and not lose too much of this room.

This really is a house that just keeps on giving.

An en suite or small family bathroom would be great here

if this were being bought as a home.

But, as a rental investment,

it's unlikely to recoup the costs of doing that.

There seems to be plenty of space to play with, and outside,

it's the same story.

Well, come all the way out through the kitchen

and, as well as that flat-roof extension, you've got this

little conservatory, somewhere to grow your tomato plants etc.

Now, it doesn't look to me like it's been constructed that well

and, as you can see, it's just sort of tacked onto

the rear of the property so you may want to do something about that.

Maybe consider a more sympathetic extension.

Possibly even two storeys.

What we have got, which is quite a surprise, is a really

nice-sized rear garden and it's all enclosed in this big wall.

It almost feels like one of those old-fashioned Victorian

walled gardens.

A couple of really useful, or even just one really useful

outbuilding and lots of space to do stuff in.

The real additional bonus that I wasn't expecting.

There's so much potential here

and this walled garden only adds to its charms for me.

# I know a wall when I see one

# And I'm looking at one right now. #

At that guide price of £40,000 plus,

I'm convinced that you're really getting a lot for your money here.

But does a local property expert agree?

We invited one along to find out.

It's a good property. Perfect family home.

If this was my property, I would strip it right back to the walls,

take all the wood chip off the walls, kitchen out, bathroom out

and basically start again.

If I was a landlord, I would probably spend a little less

and come in and give it a real good clean-up,

redecorate and make sure everything was good

and then you can turn it pretty much right round, new carpets,

that sort of stuff and turn it right round

and get a tenant in here and take it from there really.

If it did get some interest on the rental market, how much,

once renovated, could it fetch?

If this property came to the rental market

I could see it fetching

about £450 per calendar month.

What about if the new owner decided to sell it?

If this property was refurbished to a high standard,

I would market it somewhere between 95 and £100,000.

You never know quite what you're going to find in a house like this.

From the outside, a fairly standard terrace,

but walk through that front door and it does have

a lot of additional things going for it so, yeah, good one to go for.

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

Who's going to be the first? What shall we say for this one?

Shall we start at 40?

40. And one.

One I've got. 42. 43.

Yes, you're going to do it at £43,000.

44, madam. 44, I've got.

45. Can you at 45?

Yes, you can. 46.

47. 47, may I say?

Is it too early for halves?

46 and a half.

47. And a half?

Well, it may be a little early for halves

because it went up slowly but surely for another few minutes.

Let's join it £17,000 later. That's certainly a lot more halves.

At £65,000, seated.

65 and a half. 66.

66, I've got. 66 and a half. 67. 67 and a half.

68. And a half. 69.

69 and a half. 70.

And a half.

Shake of the head. It's with you at 70.

First time.

£70,000, and a half. 71.

71 and a half, back in. 72.

And a half.

Thinking about it. 72,000, back with you, madam.

72 and a half.

Shake of the head. With you, sir, at £72,500.

At 72 and a half, first time.

At 72 and a half, second time.

All done, all out.

Bid? 73.

And a half? Shake of the head.

At £72,500, then.

Sorry, 73, my fault. Can't count.

Going first time. 73, second time.

At £73,000, then, and a half.

Shake of the head. You are out now.

First time, second time.

At £73,500 then, first lot of the day,

all gone, all-out, selling away.

Well done, sir.

That was a game of more than two halves

and the man with the stamina to last into extra time was John.

He paid £73,500 for the property,

well over the £40,000-plus guide price.

He's a plumbing and heating engineer

and hopes that this purchase will help secure his future.

# You got a beautiful future

# A beautiful future. #

'I met him at the property to find out more.'

-John, good to meet you.

-Hello.

-Congratulations.

-Thanks very much.

Tell me why you wanted to buy this place.

Basically just sort of, my pension is not very good

and I thought it would be a good project to start.

-Right, are you from this area?

-Yes, I live four miles from here.

-Right, so that's why you decided to invest locally?

-Yes.

So why this particular house?

I just liked the look of the layout and I thought, with the

condition it was in, I could do a lot for it

but also keep the costs down.

-So you can do all the central heating and stuff?

-Yes.

I can do most things. Probably the only thing I can't do is the wiring.

-Right.

-Obviously I'll get an electrician in to do that for us.

Terrific. And what are the plans for the place then?

Basically, strip all the wallpaper off

and see what sort of condition the walls are in.

If they need to be re-skimmed, re-skim them.

Put extra sockets in where it's needed.

Upstairs, create a bathroom out of the big bedroom at the front.

-So make a slightly smaller large bedroom?

-Yes.

With a bathroom off it.

-But still keep it at the same number of bedrooms?

-Oh, yes.

So nothing majorly structural them?

The only part that, at the back of the kitchen there is like

-a lean-to which I'm going to take down and make a patio area.

-Right.

Cos round the back, when we do get good weather,

it's a really good sun trap.

John will do the majority of the work himself

except for the electrics because that's not a DIY job.

You need a certified expert for that.

He has a budget of between £7,000 and £8,000 which,

given he'll do all the plumbing himself, sounds pretty reasonable.

And what's the plan then, to keep it or sell it?

Depends on what it's sort of valued at.

I would have thought, more or less, I'll be renting it out.

-And hopefully go from there and maybe even buy another one.

-OK.

Start a bit of a property portfolio.

Yeah, just to see what workload this takes on and how it develops

and then we can see what happens, basically.

-Well, listen, congratulations.

-Thank you.

-Good luck with it.

-OK, thank you.

-I look forward to seeing how you get on.

OK. Lovely.

I think John's chosen well for his first property investment venture.

He might be slightly underestimating the amount of work

to be done, especially if he's only got the evenings and weekends

to do it in, so will he make that timescale and do it within budget?

You can find out later in the show.

After those properties are done,

they could be worth a lot more money.

But have our buyers even got started?

I hope so, because time is money. Let's go back and find out.

Now it's back to the desirable area of Southfields

in London where we saw a mid-terrace with three bedrooms

and three public rooms with plenty of space for a loft conversion

and a kitchen extension.

Property developer Charlie bought it for 439,000 and it sounded as

though he didn't have a minimalist look in mind for this house.

So what's your intention with this property?

To take it to a top-end house?

It needs to be a good, cosy family house.

I don't think we're going to go for the really modern

blank canvas of a house.

We're going to add a bit more character to it

because I think that's what people want now.

He gave himself a budget of around 90,000

and hoped to get it done in four months ready to sell on.

We met him a year later at the property to see how he'd got on.

Well, the pebble dash has been dashed off

but the rubble out front makes me think work is still going on.

Let's take a look inside, beginning with the attic conversion.

Fantastic!

Charlie has conjured up a magnificent bedroom

with en-suite shower room.

The addition of a Juliet balcony brings natural light flooding in.

On the first floor there are a further three bedrooms,

with designer radiators and light fittings.

A nice touch.

The bathroom has equally stylish fixtures and fittings.

On the ground level there is still a lot of work to be done

but I am impressed with his side-return extension which will

create a wonderful kitchen dining area.

The extension has been a massive plus.

Suddenly the space is transformed from being a pokey long corridor

without light to suddenly feeling like an outside area

blessed with light, heat and a good place to be.

The new sloped roof windows are a fabulous touch.

They certainly let in plenty of light which makes it feel

even bigger in here.

This was the only job that Charlie's own building team couldn't

undertake but unfortunately the contractors

he hired did not achieve the required results.

A contract was agreed and they supplied and fitted it

but they measured it wrong, the frame,

and they measured the glass wrong and then they broke a piece of glass.

And the weather has been terrible as well.

To seal it they needed really fair weather.

It has been the one delay and the one bit that is out of our control.

Mm, the only delay?

Remember, he thought it would take four months

and here we are a YEAR later. So what happened?

We didn't start here until I think October, November time,

because we had other bits going on. And so...

No, it has all gone well and everything is in-house

apart from the glazed roof.

So a late start and problems with the roof have meant

he's not quite finished. But Charlie doesn't seem too fazed.

Originally, he aimed to spend 90,000 on the work.

So has that plan gone out of the window along with the schedule?

We've already spent 85 so far but it will probably be 110,

I expect, by the time we finish.

Charlie was keen that this would be a family home, rather than

a glossy showpiece, and I think he has gone some way to achieving that.

It's certainly more practical for modern living.

I think we've retained a little bit of character albeit by cheating.

We put plastic sliding sashes in rather than wooden sashes.

It saves money but still looks stylish.

We've got a few fireplaces going in that aren't here yet.

I think we've managed to put a bit of character into it. It's important.

Charlie's planning to sell on when he eventually finishes the work

so let's find out how much value has been added.

We asked two local property experts

to take a look and give us their thoughts.

It's expanded to full potential.

It's got four decent bedrooms.

The standard of the bathrooms are very good.

The kitchen will appeal to a lot of people

because of the way he's opened up space. So he's done a good job.

I think the house is a great house.

I think the owner has done a great job in terms of the refurbishment.

The quality of the finish is of a really good standard.

I think the kitchen he's expanded to the side.

He is going for modern, open-plan living,

so the kitchen will be the style that people require.

You bring the living area to the back of the house.

That's what people are looking for nowadays.

I think the loft space is great. It is really spacious up there.

I also think with the added benefit of the en suite it really works.

By the sound of it, perhaps taking a bit longer

for the build hasn't been a bad thing.

Since we came a year ago the market has been very busy.

There's a lot of demand and very few properties to offer.

So the prices have spiralled. It's gone up faster than before 2007.

We are effectively looking at about almost a 15% increase

on last year, even if nothing had been done to the house.

That will help the client get his full profit on the end of the deal.

Well, didn't I say this area was becoming increasingly popular?

Charlie paid £439,000 for the property

and reckons on a total refurbishment cost of 110,000,

bringing his total outlay to £549,000.

I think the house would definitely achieve an asking price

of £725,000, with a view of taking anything sort of north of £700,000.

I'd put it on for £735,000.

That top figure of £735,000 means Charlie could take away

a fantastic profit of 186,000,

minus tax and expenses, of course.

I was thinking in the region of 680-720, so spot-on.

Probably a little bit more than I thought.

So it is a great return for his year's work.

Charlie's property-developing career is definitely

going from strength to strength. Is he enjoying it?

Every project is good fun when they are finished and they are sold!

Back to Cumbria now where we saw this two-bed terrace

sell at a lengthy auction for £73,500.

John, a self-employed plumbing and heating engineer, was hoping

the property might plug a hole in his pension.

He was going to do the work in his spare time.

So why this particular house?

I just liked the look of the layout and I thought with the condition

it was in, I could do a lot for it but also keep the cost down.

So you can do all the central heating and stuff?

I can do most things.

Probably the only thing I can't do is the wiring

so I would get an electrician in to do that for us.

He had a long list of work to do to bring this house up to a good rental standard.

Let's have a look nine months on to see what he has been up to.

John has certainly achieved great things in the kitchen.

Long gone is that shabby, dated one.

Now say hello to a modern, stylish look.

The front room has lost that '60s feeling

and now has a trendy new wall-mounted fire.

Upstairs, the two bedrooms have been re-plastered and decorated,

resulting in a clean and fresh feel.

A new combi boiler and radiators were fitted

and John has put his skills to good use in the downstairs bathroom...

..while upstairs, he has created a good-sized family bathroom.

The reason I decided to move the bathroom

was because you couldn't really accommodate a shower in the bath

because the ceiling height was too low.

And the big bedroom upstairs was basically waiting to be altered.

So I took a part of the big bedroom off

and put a new bathroom suite in with a built-in shower.

It's a much more convenient convenience to have up here,

but there was some structural work John decided not to go ahead with.

Originally I was going to take the conservatory down.

To me it was an eyesore.

And I realised it was another room so I have renewed it in plastic.

Haven't quite finished it yet.

There's a new flat roof to go on and the ceiling has got to be boarded.

One thing I loved about this house was the quirky walled garden

and this little space is a great place to enjoy it.

In the summer they could have their breakfast in here.

Or they could just use it as an extra cloakroom or storage room.

But I think it's just a nice, bright room that people will enjoy.

Remember, this is John's first property venture,

so he is on a bit of a learning curve.

You certainly can't fault the workmanship here,

but there has been one problematic area, that timescale.

Originally, he had hoped to get this done in 12 to 14 weeks. However...

It probably took us probably longer than what I had expected,

because I was only doing it at weekends.

It has took us just over nine months.

Luckily, John hasn't had to rush

but an over-running schedule can have a big impact financially.

Not only are you shelling out money, you are not getting any income,

so it is vital to be realistic about how long things might take.

# Gee, ain't it funny

# How time slips away... #

So the timescale might have taken a hit but what about the budget?

My original budget was round about, I think it was 8,500,

which...it's gone up.

I think at the moment it's round about 11,500.

Even though he's not quite finished,

he's already drummed up some interest.

I've had a few people inquire about renting it.

So once I get it all finished, I'll make a decision then

whether I do rent it or sell it.

At the moment, I think I will rent it for the time being.

But will some figures change his mind?

We invited two local estate agents to give us their opinions,

including the one who saw the property before.

He's done a really good job.

It's very nice from top to bottom, so very well done out.

I think the kitchen dining room works really well.

It is a good-sized room which is what most buyers are now looking for.

The whole layout is very good.

He's brought the bathroom from downstairs to upstairs.

Cut a piece off a very large bedroom he had before

but that works very well.

Still got two good-sized bathrooms and a four-piece bathroom suite.

John bought this house for £73,500 and spent

£11,500 on the renovation, bringing his total investment to 85,000.

How much could it sell for?

In the current market I would market this property for £94,995.

I would suggest in the current market we would look to

market at £95,000, looking to achieve offers in the region of £90,000.

That top valuation of 95,000 would give John a profit of 10,000,

before he pays any taxes, fees and expenses.

What does he think of that?

I thought it could be maybe slightly higher but it's OK, that.

John was already favouring letting the house

so how much could that achieve?

I would expect this property to achieve between 400,

about £450 per calendar month.

I would recommend the property was rented at £425 per calendar month.

Yeah, that's very good as well.

I was thinking more in the 400 bracket but that is a bonus.

The middle rental of £425 per calendar month would give John

a very reasonable 6% return to add to his pension pot.

Is he happy with that?

I'm pleased that I've done it the way I have,

because it was worth it in the end.

Or it will be! Hopefully!

We'll have plenty more auction stories for you next time.

And you wouldn't want to miss any of them on Homes Under The Hammer.

-So, from Martin and me, goodbye.

-Goodbye.

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