Episode 24 Homes Under the Hammer

Buying at auction doesn't mean you're guaranteed a bargain,

but when the hammer falls, that is the price you're going to pay.

Whatever sum's reached on the day, that's the value the buyer hopes to improve on.

Settle down as we bring you more scintillating stories from the auction on Homes Under The Hammer.

Buying property is one of the biggest commitments you'll ever make

and in today's market it's vital to do your research.

Exactly. Buying at auction,

you are spending thousands of pounds in the blink of an eye.

-It's important to get it right.

-Preparation is the key.

Let's see if today's bidders were prepared.

'I'll look round this property in Kent - once I've found my way out of the garden!'

Clear this up and you'll have the most magical little hideaway.

'There are some delights for me in London.'

It really is a treasure when you find a space like this.

So far, so good. I really like this flat.

'Then it's off to Cumbria and an old pub with room to manoeuvre.'

You HAVE got a good space.

It is on course to be an award-winning development.

'These properties have been sold at auction.

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

Sold.

I'm in Kent, in the village of Upnor.

The property I'm here to see is actually in Upper Upnor.

That's Lower Upnor. Both of them lie on the banks of the Medway.

It's a conservation area and, you know what?

It really is absolutely gorgeous!

# Come to this place The bend in the river

# Saw in the water The circle of magic

# Circle of magic

# A blanket of lilies covered your head... #

This little village certainly is magical

and maintains a true sense of old-world charm.

It's popular with yachting enthusiasts and bird watchers alike,

and it's easy to see why it's a highly sought-after area to live.

This place just oozes character. It's got a cobblestone street.

They still deliver milk bottles on the doorstep. It's glorious.

Properties here don't come up for auction that often. So, what did?

It was a Grade II listed mid-terrace

at a guide price of £95,000 to £100,000 and this is it.

If you can see behind this huge great bush or tree,

there's a very pretty house lurking.

White Kentish wooden boards on the outside.

What's it going to be like inside? There's only one way to find out.

Oh! That's interesting! Nice stable door to start off.

They're quite practical. I like that. Then, wow!

Fantastic wood-burning stove in a lovely old brick fireplace.

Original floorboards. It's looking cute.

What have we got here? Oh, I see.

A serving hatch through to the kitchen. That looks nice.

I love this place. Lots of little corridors, nooks and crannies.

The kitchen, well, it's a bit dated.

You'd like to see something with lots of character.

I suppose, in a hotchpotch way, it's got character.

I don't know. I forgive this. Let's carry on.

'Something harder to forgive is the layout and how the space is used.

'The conservatory... Is that even a conservatory?

'Is it a utility room? What is it?

'You might want to replace it, but that'll be subject to the red tape

'that goes with a Grade II building in a conservation area.

'It might be more user-friendly as a dining room.

'As it's next to the kitchen, that would make sense.

'What doesn't make much sense

'is that the main bathroom is a few steps down from here.

'So it's not perfect, but I'm still smitten.'

Before you get carried away with the charm of this place,

it is useful to take a bit of a reality check.

Restoring it is going to throw up its fair share of problems

and we've got the Grade II listed status to contend with,

which is going to limit what you can do.

But you have got a property that is very quirky -

the staircase, for instance.

There's another staircase leading to the bedroom on the top floor.

You've got lots of drops to the floor height and low ceilings.

In terms of structure, you don't know what you'll unearth

once you start lifting up floorboards.

Then you've got the windows. They're all fairly shot.

Because it's listed, you can't just replace them with whatever you want.

So, lots to consider, but it's one of those houses

that I think it'd be worth whatever the hassles were.

'And hassles there will be, no doubt about it.

'That's practically guaranteed.

'But what you'll also be guaranteed is a unique characterful property.

'Conserving character costs money, so you'll need a healthy budget,

'lots of patience and willingness to work closely

'with the planning and conservation departments.

'You'll have to get permission for work on the outside and the inside.

'The upstairs layout is not without challenges.

'The top floor bedroom IS big.

'On the first floor, there are two good-sized bedrooms,

'one of which has a shower and a loo, but no sink or bath.

'This could possibly be the family bathroom, so that's welcome news.

'So much for the inside.'

You're probably thinking that the only thing this property lacks is a bit of garden.

Here's an additional surprise!

Across a shared access area, you come to this.

Though it's a bit of a jungle, it's a classic secret garden.

Very typical for properties in this area.

It goes on and on. I don't know how long it is. At least over 100 feet.

Clear this up and you'll have the most magical little hideaway,

just to add... Oh, amazing!

# There's a petal that isn't torn

# A heart that will not harden

# A place that I can be born

# In my secret garden... #

'This place has truly won me over.

'If purchased for anywhere near its £95,000 to £100,000 guide price,

'I think it would be a bit of a steal.

'But what does a local estate agent think?'

The property has been left for so many years,

but it is a great opportunity cos you've got a blank canvas.

With that, you can keep its features.

You can do all sorts of things to bring it back to its original state,

which would be lovely and would give it such a wealth of character.

'Once the necessary works have been carried out, what's the likely sale value?'

With a property like this, it doesn't have a "value" as such.

It's what somebody is prepared to pay for it.

Because it's so sought-after and there's so much charm to it,

it will fetch a lot more than we would expect.

I would envisage that we would be looking at 200-plus on this,

but until the work is done, it's difficult to estimate it.

'Are rental values easier to estimate?'

You're going to be looking, probably,

at around about £750 to £800 per calendar month.

What can you say?

A house that has SO much character I don't know where to start,

and at a really good guide price.

Somebody will definitely have fallen in love with this.

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

'There was a lot of interest in this property.

'Let's join the bidding when it hotted up at 140,000.'

140 I've got. And two? 142. And five? 145.

150? 150.

And five? 160 I'm looking for. 160 I'm looking for.

158, if it helps you. Doesn't really.

156? 156. 158.

It's back with you, madam, at £158,000 for the first time.

At 158 for the second.

If you're sure you're all done.

158 for the third and final time... BANGS GAVEL

It's yours for 158,000.

'Making that successful £158,000 bid,

'way above the £95,000 to £100,000 guide price, was Paula.

'If anyone's cut out for restoring this beautiful old place,

'it should be her, as she's an architect.'

# Lines like these

# Have got to be

# An architect's dream... #

'I met her at the cottage to hear about her plans.'

-Paula, lovely to meet you.

-Hello. Lovely to meet you.

-What a great place!

-Yeah. It's fantastic.

-You obviously paid a lot over the guide price.

-I did. Yes.

I had my limit. LAUGHS

-Which was?

-160.

-Right. Tell me why you wanted to buy it.

I've had a bit of experience with listed buildings.

My house is listed and I've done quite a bit of work on it, so it's a project I can take on.

I'm just going back to work after quite a long career break.

I've just had two children.

So this is quite a nice project for me to take on.

'I can completely understand why Paula was drawn to this project.

'It will allow her to be her own boss

'and give her time with her children.

'She's not sure what she'll do with it once it's complete,

'but in the meantime, what will she do to renovate it?'

I want to do an environmentally friendly renovation of it.

I'm probably going to try to insulate the external walls,

put secondary glazing, possibly shutters in.

A lot of this is subject to listed building consent.

Obviously, the lean-to has got to go and I'll replace that.

Possibly put the kitchen in there.

Put a little shower room where the existing bathroom is.

Then I'm hoping to be able to put a little bathroom

in between two rooms on the first floor.

It's going to be sympathetic to the existing building.

What kind of money have you set aside?

There's a lot of work to be done.

If I could get it under 40, that would be all right.

'A £40,000 budget and Paula's professional expertise

'should be the perfect match for this property.

'Like me, she loves the character of the building,

'and I'm really pleased she's going to try and preserve it.

'She's set a timescale of six months,

'including drawing up the plans herself.

'Given how long listed building consent can take,

'I hope this isn't too optimistic.

'Paula's feeling pretty positive.'

-What are you most excited about?

-Everything.

I can sort of see where this building could go.

It's going to be lovely to see it right at the end.

I'm really excited about that - but it's everything.

-Congratulations. Can't wait to see how it turns out.

-Thank you very much.

-Good luck with it.

Not surprisingly, Paula has fallen in love with this place.

She's certainly qualified to sort it out.

Getting plans drawn up properly is even more important when it comes to restoring a listed building.

Still, a property like this is going to throw up all sorts of hidden problems.

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

'What do you think of when you see the word "Peckham"?

'Bustling street markets, wheeler-dealers,

'a diverse high street that's a little rough around the edges?

'Well, times have changed since Del Boy's days.

'Look carefully and you will find...'

beautiful tree-lined streets, gorgeous Victorian housing stock

and oodles of charm - but this IS Peckham.

After years spent riding on the coat tails of fashionable East Dulwich,

it's now desirable in its own right,

and this road is one of the most sought-after.

The property I'm here to see is right here.

It's the upstairs one-bedroom flat and it had a guide price of 185,000.

'This road is described by the estate agents as being on the border of East Dulwich.

'So, it's next on the cafe culture hit list.

'This bit of Peckham is on the up, and so am I.'

# I'm on the up and there's no coming down

# Just as long as I'm where you are... #

My first impressions of this property - a little tired and dated.

You've got exposed pipework. It needs a bit of a spruce-up.

But a lovely big kitchen. You've got the bathroom out back.

Not ideal, but I could live with that.

A wonderful bedroom space there,

views outside from the big window.

But this is what really sells the property. Look!

A fantastic, original, uncarved-up room!

Beautiful big windows, loads of lovely light.

It really is a treasure when you find a space like this.

So far, so good. I really like this flat.

'All too often in London, you'll find rooms like this

'with a kitchen squeezed in,

'partitioned off to create another room.

'So this untouched space is a find,

'because space is always at such a premium in the capital.

'This flat gets the thumbs-up so far.

'I'm pleased to see that the kitchen has even got room for a table.

'Maybe just a table for two, but nonetheless...'

Having space for a table is important, I think, in a kitchen.

Seems an obvious thing to say, but it can double up as work space,

somewhere to entertain your friends and, at its most basic,

it means you don't have to eat on your knee

or squeeze a table into your lounge.

It's only, maybe, four foot square, this little area,

but in a small inner-city flat, it makes a massive difference.

And it's a huge selling point.

'While we're on the subject of space,

'a smidgen can be utilised between the kitchen and bathroom.

'You could take out these cupboards and perhaps enlarge the bathroom.

'Just a thought. What I like about this flat is that it has potential.

'It has scope for someone to come in, add value and sell on.

'Or has it?'

You're a local developer on the lookout for your next hot property in Peckham.

Could this flat be for you? Well, perhaps not.

A clause in the legal pack stipulates that the property could not be sold to someone

who had bought another property in the borough in the past year!

That is a first on me, that one.

What isn't, is that the buyer has to pay the seller's auction fees at 2%.

While not a deal-breaker, to walk away with a profit,

that could be more than a little annoying.

'The seller's fee and the stipulation about who can buy it

'is enough to put many developers off. Which is, of course, the point.

'However, even if you want a home to live in

'and are not concerned about profit,

'you could be looking at several thousands out of your budget

'before you even start stripping the wallpaper.

'What effect, if any, will these factors have

'on the value of this property?

'We asked a local expert for his thoughts on this one-bedroom flat,

'guided at 185,000-plus.'

First impressions of the flat

is that it has some mod cons - gas central heating -

but it needs going through, ripping everything out and redoing it all.

A fair bit of work, but a great one to work on.

'And it'll be even better when it's done up,

'but how will that affect the resale value?'

If its done up, its value, depending what you do and how well you do it,

will go somewhere between £280,000 to £300,000.

'What if the new owner decided to let it?'

In a good condition, rental-wise,

you'd be looking at about £1,200 per calendar month.

I really believe in this area. It's Peckham, but it's pretty.

This flat was a great chance for perhaps a young professional to buy a pad of their own.

Let's see what happened when it went to auction.

One-bed flat, requires upgrading.

Nice lot, this. Where do you want to start?

180. We've got 180 down here. 185 anywhere?

185. 190. 195?

200. 205?

210. 215?

220? Yeah? 225?

220 down here. 225 elsewhere?

220. 221 at the back? Try and help.

221. 222?

223?

224?

225 at the back. 226? Sorry.

227?

226 in the aisle. First time.

Second time. Third and last time, if you're all done...

BANGS GAVEL Sold. 226 in the aisle.

'And a beaming smile from Pete.

'He secured the one-bedroom flat for 226,000

'plus, of course, that seller's fee of around £4,500.

'He took the plunge to become a property developer a year ago.

'He bought it with his girlfriend Rachel,

'who works as an events organiser.

'I met them at their new purchase to find out more.'

-Why have you bought this property?

-We bought a property last year.

We did that up and made a nice profit from it.

This was our next project so I'm looking to do the same this time.

-Rachel, you weren't there on the day. Where were you?

-I was at work, watching it on the internet.

-Had to trust you a little bit.

-You did.

-I'd seen some photos.

-Yeah, that was as much as I had.

-You hadn't seen inside the flat?

-I hadn't seen inside the flat.

-You trusted Pete completely with all your money!

-Yeah.

We'd seen a few flats before so we know the sort of things we like.

This flat's got period features, bay windows, high ceilings. I knew it would be Rachel's taste.

When you were bidding, were you worried? "Rachel hasn't seen it. I've got to bid for this."

No. I wasn't particularly worried. I was confident about this one.

-This was one of my favourite flats I'd seen.

-We like the area.

I really didn't think we'd got it. I'd missed out on a few previously.

For 226, do you feel it's the flat you want and you got a bargain?

I don't think we feel we got a bargain.

It's going to be tight.

The last one we did, we kind of spent probably more than we should.

We wanted it to be the best that we could do, within reason.

-We don't want to cut corners, do we?

-No.

-It's such a beautiful flat.

-It's got such beautiful features.

-We want a very high-quality finish.

We feel that the kind of person we'd want to sell it to

would appreciate those kind of features.

-We want it to reach the maximum value we think a one-bed can.

-Yes.

Wait a minute. You're already talking about selling this on.

-What is the plan here?

-We're going to be quite flexible.

I'm going to do all the work as quickly as I can.

Then get it valued. If we could make some profit on it, that'd be great.

Sell it on and move on.

If not, then we're happy to live in this area. It's such a nice area and a nice house.

'The couple's other property is outside the borough,

'so they had no problem buying this place.

'Even if they don't sell it, they can always move in themselves.

'What's their budget for the work?'

We're hoping to spend no more than about £17,000.

-Which we think is going to be tight, don't we?

-Yeah.

We've looked into the things that we want to have, a few extra touches

to make it really a cut above other one-bedroom flats in the area.

So it's going to be tight but, hopefully,

by myself doing a lot of the work, we won't have to spend too much.

'The more he saves on labour, the more profit they'll make.

'Pete sounds pretty confident about his handyman skills.'

I do everything myself. I'm completely self-taught.

My dad's very good at DIY, so hopefully it's in my genes!

I'll ask you, Rachel. Is he as good as he says he is?

I have to give him credit where it's due. He definitely is.

-I did help with the painting, didn't I? But...

-Yeah.

I reckon on the whole of the last project, you saved me five minutes!

-LAUGHS

-That is not nice!

-She's out at work all day, getting up early.

-Thank you.

She's the designated skirting board painter.

Even that, I'm not really up to scratch, apparently.

Yeah. I re-do it at night when she's asleep!

'Surely not THAT bad, Pete!

'The two make a great team. Rachel's job allows her to raise a mortgage.

'And Pete's able to spend the time to get the place up to scratch.

'They're prepared to adapt their living situation to take this step up the property ladder.

'They lived in their last property while they worked on it, putting up with all the mess.

'But not this time round.'

Where are you currently living?

We're actually living with Pete's mum and dad, temporarily.

When we sold the last property, we had nowhere to go.

You're not in a chain when you buy at auction.

-We're temporarily living there, aren't we?

-Yeah.

So, when are you going to start the work, Pete?

I should start in the next few days, start stripping the wallpaper and getting everything out.

-So are you excited?

-Very excited, yes.

We hope to get it done within the next...six to eight months.

-Well done. I'm so excited for you both. Rachel, Pete.

-Thank you.

Rachel and Pete have an exciting, if dusty, time ahead of them.

I'm sure they're going to make this flat absolutely beautiful.

But am I sure there's going to be a big profit here?

Hm, not quite so confident there.

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

'Coming up, I've had a change of plan in Cumbria.'

My initial thoughts of knocking the place down and starting again -

maybe that was a little hasty.

'In London, Rachel's in charge of the decor, but what about Pete?'

I'm more the practical person.

-Match made in heaven.

-BOTH LAUGH

'First, will it be hard for the owner of this Kent property to let it go?'

It's going to be really easy - if I sell it to someone I like.

'Time to return to Kent.

'Here, I met architect Paula,

'who purchased this characterful Grade II listed terrace at auction

'for £158,000.

'As I did, Paula fell in love with this place

'and couldn't wait to get cracking with the work.'

-What are you most excited about?

-Everything.

I can see where this building could go.

It's going to be lovely to see it right at the end.

I'm really excited about that - but it's everything.

'That "everything" was going to get done in around six months.

'However, it's now three years and two months since I first met Paula,

'and we've come back to see the fruits of her labour.

'What was the kitchen is now additional living space,

'which could be used as a dining room.

'As per her original plan,

'the decrepit-looking conservatory is a goner.

'In its place is this lovely new kitchen.'

Well, a lot's happened in this bit of the building.

It was a conservatory. It was all rotten.

The first thing we did was take out all of that.

Then we exposed the back wall of the house.

You can still see some of the timbers

and the doors are as they originally were.

Then we just put a very simple kitchen in.

It gets lots of sunlight.

And... It's almost a bit more modern than I'd envisaged it.

But that's OK. That's fine.

'This project was more about restoration than renovation.

'Paula has combined the two really well,

'not least up on the first floor,

'which now has two good-sized bedrooms

'and a family bathroom in between them - ideal!

'There's still a loo on the ground floor,

'but without the bath there was room to make it a utility space.

'As for up top...

'..the room has been completely redecorated,

'turning it from ramshackle to ravishing.

'The biggest difference is an additional window,

'so this area is now flooded with light.

'Along with builder Barry, Paula has done a wonderful job.

'That's not to say it was easy.'

There are a lot of issues with how to repair a house

and bring it up to modern standards,

yet retain the character and not ruin it.

So we've tried to be sympathetic, wherever we can.

Actually, by going forward, we've also gone back.

But I think, in general, it works. It was hard work, but it did work.

'It has meant they've had time to re-landscape the garden as well -

'after over three years of time, energy, love

'and some lengthy discussions to get the listed building consents.'

The listed building consent took 18 months.

You have to negotiate down to skirting boards,

everything you want to do.

It's a long process.

But I found it absolutely fantastically helpful.

'Never underestimate the effort involved to take on a listed building.

'If you can commit to it in the way that Paula has,

'there's no comparison with doing a standard conversion

'to the satisfaction of making a house as homely as she has.

'So homely, in fact, that I don't think Paula wants to let it go!'

I'd love to keep this house, but I can't afford to.

It's going to be really easy - if I sell it to someone I like!

'As well as the purchase price of 158,000,

'Paula's spent around £60,000 on the work.

'That's more than her original budget of 40,000,

'but look at the results!

'We asked two local property experts to tell us what they make

'of her £218,000 investment.

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

They have restored it in a really sympathetic way.

They've taken a lot of time and effort to really keep its character.

You can see yourself on a cosy night sitting in and enjoying it.

A lot of people would feel the same.

My first impression is, "Wow! It's a really nice property."

Full of character. It looks like it's been done to a very good standard, so I'm very impressed.

'I think they are just as smitten as Paula.

'Much as it pains her, she's keen on a sale rather than rental.

'However, both agents agree that £800 to £850 per calendar month

'would be about right.

'This was bought to sell on, as Paula wanted to create

'a development career that would give her time with her children.

'So, how has she fared with that £218,000 investment

'and three years of hard graft?'

Price-wise, it's very difficult, because it is unique.

It's always down to what somebody is prepared to pay for it.

But the feel I have for it is somewhere around the £225,000

to probably about £250,000 for it, as is.

If I had to put this property up for sale,

I would expect to put it up for a price in the region of £225,000 to £250,000.

Yeah. That's about what I thought it would be, something like that.

Which is good, in a way, cos I think that's affordable.

It's nice to do an affordable house, basically.

So, yeah, I'm happy with that.

'So, Paula's potential profit lies between £7,000 and £32,000,

'before tax and costs.

'I have no doubt that she'll find a buyer

'who loves this place just as much as she does.'

Houses like this, they've got personality.

They sort of become a friend...

You know, you find them in a terrible state of disrepair,

and a friend in need is a friend indeed.

It's just got personality everywhere!

So, yeah. I love it. I love the house. Beautiful.

I'm in Whitehaven.

This once small Lakeland fishing port

grew on the back of rum, coal and ship-building to become what it is today.

The marina behind me is testament to the good stuff going on in the town.

# Down by the seaside

# See the boats go sailing... #

'Over £11 million has been spent here,

'including 100 more moorings in the marina, and the future looks bright.

'However, if you want to delve into Whitehaven's dark side,

'then the town's museum, The Rum Story, is the place to go.'

Quite fitting, given the port's rum-based boozy heritage,

the property that was up for auction is this former pub.

Grubby from the outside, it's a very interesting development opportunity.

You've got the pub itself, then a three-bedroom flat above.

The guide price was 35,000 quid.

Big question is, is it as grubby on the inside as it is on the outside?

Uh-oh. I think this answers my question.

It's always strange walking into places like this.

It's almost like they've just been abandoned.

You've got the glasses on the bar and all the bar bits and pieces.

Very strange. Let's look at the space we've got here.

It's a really good sized room.

You're probably not going to keep it, are you?

We're looking at the square footage.

I'm not bothered about the state of it cos it's probably going to go.

Let's see what else there is.

# Don't let my glass run dry Please fill it up again... #

'There's lots of square footage but, unfortunately, lots of damp as well.

'This building needs some drastic measures.

'Maybe a conversion to residential might work.

'But I'm thinking, "Bring in the bulldozers!"

'My glass is half full rather than half empty

'because there's a good plot under here somewhere.'

We're here in what was the old snooker room - yet more space.

That is, really, what you're looking at here.

And also, how much stuff there is to demolish.

I'm on the lookout for things like asbestos,

anything which impedes that demolition process,

which we are contemplating.

But at first glance, you have got a good space,

so I think it is on course to be an award-winning development.

# Tonight in a bar alone I'm sitting

# Watching the bubbles in my beer... #

'Underneath the bar there's a cellar, and behind it a snooker room, the pub's toilet

'and stairs to the first-floor flat.

'Up here, there's a maze of rooms on different levels.

'But...'

I am having a rethink, in terms of what I might do with this place.

It's surprisingly all right.

The layout screams out to me - flats!

I mean, pretty much as it is. Imagine a door here.

That would lead into a fairly reasonable one or two-bed flat.

You've got the shared access here and the stairs there.

Another door here, leading down to,

again, a half-decent one-bedroom studio flat, if you like.

Beautiful views out that way, so that would be fairly good.

The thing that makes me say this could work is this really good-sized kitchen here.

Maybe my initial thoughts of knocking the place down - maybe that was a little bit hasty.

'On reflection, this pub guided at 35 grand

'could make a characterful development, maybe even two houses.

'The outside could lend itself to that

'and it has a great position, high above Whitehaven.'

# Going up to the spirit in the sky... #

'Maybe someone would keep it as a pub,

'although I'd be rethinking my drinking establishment

'if I had to climb up here!

'There are houses next door, so residential looks like a good option.

'What does a local estate agent think would be best?'

I don't think it should stay as a pub.

It's a good idea to convert it, say, into two properties.

'How much could those properties be worth?'

For a three-bedroomed house,

I would say in the region of £145,000 to £150,000.

For your two-bedroomed house, about £130,000.

'What about flats?'

You could convert it into flats.

Whether that would be viable, I don't know.

Because the council have got a lot of flats in the town centre

and this area is mostly houses.

'Sticking with houses, what sort of rental income could they generate for a buy-to-let investor?'

For the three-bedroomed house,

rental would be in the region of £425 per calendar month.

And for the two-bedroomed house, about £400 per calendar month.

So, for a £35,000 guide price, you get a lot of property with this one.

Money to be spent, clearly, but I think, yeah, money to be made.

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

Lot number 20, then. I've got a telephone bid. Are we connected?

We are, indeed. 35,000, anyone?

30? 30 I've got, seated, on the aisle.

At £30,000. We're away.

31 I've got. 32, madam?

32 I've got. 33?

33 at the back. 34?

34 I've got. 35?

Half. 34 and a half. 35?

35 I've got. And a half?

Shake of the head. It's with you again, at £35,000.

35 and a half on the phone. 36, madam?

36 I've got. 36 and a half on the phone, may I say?

Shake of the head at 36 and a half. At £36,000.

36 and a half. 37, madam?

37 I've got. Determined.

Have to hurry you along on the phone. 37 and a half. 38?

38 I've got. At £38,000 I'm bid.

First time.

At 38 second time.

Are you out? £38,000, ladies and gentlemen. Third and final time.

'Well, for only three grand over the guide price,

'Heather and husband Brian have bought a pub with no beer for £38,000.

'Heather recently gave up her career as a technology teacher at a secondary school.

'Brian's a quantity surveyor, which should be handy.

'I met them to find out if it was brown ale or bulldozers for this pub.'

# Look what I found in my beer

# A couple of dancing ladies and a ticket outta here... #

-Heather, Brian, lovely to meet you.

-Hello.

-Hello.

-Congratulations.

Tell me what you've bought it for.

-Hopefully, we're going to be able to split it into two buildings.

-Oh!

-So we're going to have the house, which is the old pub side.

-Wow!

Then the other side, we'll revert back to a cottage.

So, hopefully, a two-bedroomed cottage and a three-bedroomed house.

What do you know about the history? Was that how it was at one stage?

We think so, yeah.

If you look at where the wall division is between what became the pool room,

it looks as if there was a natural division there originally,

so it shouldn't be too bad.

So why have you gone down the route of two houses rather than flats?

One is cost for us.

The other thing is that this residential area that we've got,

we felt that it would be more appropriate to have a family house

and a cottage that was maybe for a retired couple

-or starter home or something like that.

-Right.

For flats, we've got a lot of flats in town already.

So we felt let's try and keep it in keeping with the area itself.

'The couple seem to have done their research.

'But regardless of what type of conversion they do,

'it's most definitely a very big undertaking.'

What attracted you to it, then?

-The price, initially, I think.

-Mm!

When we came to have a look around on the open day,

we sat in the car and identified that it's two buildings, not one.

So there was lots of potential here.

-Tell me what you're going to do to sort it out.

-We're going to strip everything out.

We're going to turn this into the living area,

walking through to a semi open-plan kitchen area and utility room.

Then have the dining room encompassed within this living area.

-And upstairs?

-Upstairs, we've got three bedrooms.

They're going to stay as they are but get refurbished,

and turn one of the bedrooms into a master with an en suite.

We'll be taking a little off the bathroom, which is a big bathroom.

-It'll be a huge property.

-It will be, yes.

Is there a market for that? Will that fit in with the area?

By the time we've separated it into two properties, it will be,

because the adjoining property will be more of a cottage.

That'll have two bedrooms and bathroom.

We'll have to put in a staircase.

Then downstairs, it will be a living and kitchen area

with a small utility combined, hopefully.

'Their architect has measured up the property.

'Once the plans have been agreed, they'll hope to get planning permission,

'but it doesn't sound like a cheap conversion to me.

'How much will it all cost?'

-Our budget at the minute is about £100,000 for both properties.

-Right.

We'll be re-plumbing, re-electrics.

-There's a roof garden, possibly, to go on this extension.

-Wow.

We're going to keep as many of the features as we can.

If we can take the doors and bring them back to life, we will.

Some of the floors, if they're recoverable, sand and varnish them.

All the work will be done by proper tradesmen.

'With his quantity surveying job, Brian will take a back seat,

'just coming down on weekends and evenings,

'but he knows the tradesmen well.'

# Tonight in a bar alone I'm sitting

# Apart from the laughter and the tears... #

How much involvement on a day-to-day basis will you have?

Um... Quite heavy, really.

Although I'm not going to be doing any major works,

because that's not my forte, I'll be overseeing it.

-What's the timescale?

-We're looking at six to eight months, with planning on top of that.

-I'm very excited to see what you do to it.

-OK.

-I'm sure we'll see some big changes when we come back.

-Hopefully.

-Good luck.

-Thank you. Lovely.

So, it seems like it's last orders for the old pub -

but I think we knew that, didn't we?

But not converting to flats, building two houses here,

have Heather and Brian made the right decision?

Um... Not so sure. You can find out how it goes later in the show.

It's hard to predict how things will have gone.

Will the renovations have been a coat of paint and a new carpet or a full-blown rebuild?

Which one will it be today? A lick and a promise or back to square one? Let's find out.

'Now back to Peckham in south-east London,

'where earlier we saw this one-bed flat sell at auction for 226,000.

'It was Pete and Rachel who snapped it up.

'Pete's a property developer

'and it's his business to make money out of his renovations.

'Rachel does lend a hand when it comes to decorating.'

I did help with the painting, didn't I?

I reckon on the whole of the last project you saved me five minutes!

-LAUGHS

-That is not nice.

-She's out at work all day!

-Thank you.

She's the designated skirting board painter.

I am, but even that I'm not up to scratch, apparently.

I re-do it at night when she's asleep.

'Hopefully, Pete hasn't had to double-check her work this time.

'Let's catch up with them almost a year later,

'to see what they've been up to.

'As you can see, they've done such a fantastic job

'that they've decided to move in themselves.

'And who can blame them? It's gorgeous!'

You can see that the renovations have been throughout the whole flat.

Completely renovated the kitchen, the bathroom, the bedroom.

We've just got the hall to finish.

We've laid solid parquet floor throughout.

We've got a roll top bath in the bathroom.

We've finished it, we think, to a very high standard, so we're very happy.

'Not only is it of a high standard,

'but I think it's a brilliantly bold colour scheme.

'They've also reinstated Victorian touches

'like this wonderful fireplace.'

We tried to stick with Victorian features everywhere.

We've put in the ceiling rose in the lounge.

The roll top bath is obviously a Victorian feature as well.

So tried to keep it in keeping with the style of the house.

'The couple decided to move in a few days after I met them last year.

'They wanted the flat to be an even higher spec than they envisaged.

'They were able to avoid the mess

'by moving in with Pete's mum for the duration.

'And it's a stunning result - particularly the kitchen!'

We sourced a lot of very high-quality material.

We've got solid wood cabinets

that have been sprayed the colour that we wanted.

We've got an earthstone work top, which is very durable.

We've got a nice linear hob that's very modern.

We wanted to make it a functional, but also appealing to the eye, room.

'Rachel was in charge of the decor. What an exceptional job she's done!

'But almost all the labour was down to Pete.'

Everything you can see, I've pretty much done everything.

From fitting a new kitchen to fitting a new bathroom,

fitting the parquet floor throughout, tiling.

Absolutely everything, apart from the plastering in the lounge and the hall and the gas works.

We had a boiler replaced, so obviously I couldn't do that.

Everything else, I've done.

'And he does mean everything else!

'He is certainly a man who takes on a challenge,

'even digging out the soil pipe all on his own

'in order to rejig the bathroom.

'Rather him than me!

'The down side is that it's taken a few months longer.

'Since they're living here, that's not an issue.

'Has the budget changed along with the plans?'

The budget was originally £17,000.

At that stage, we wanted to do the project as a buy-to-sell.

Now that we're living in the property, we thought we'd spend a little bit more,

to add a few nicer touches that we probably wouldn't have done.

So the budget has gone up to around £20,000.

'An overspend of only £3,000 seems pretty tame,

'given the standard of the finish.

'Remember, that total doesn't include any furnishings,

'and it sounds like they're willing to spend even more money here.'

We have the potential to turn it from a one-bed into a two-bed,

through a loft conversion.

We're looking to do that towards the end of this year.

With that, we'd have a second bedroom and a second bathroom,

which would really add real value on to the house.

'Talking future values, then.

'Let's ask two local property experts what they think of the work,

'and what Pete and Rachel could achieve if they put it up for sale.'

I've had a good look round the flat.

It's in fantastic condition. Everything's been meticulously done.

Expense has not been spared.

My first impressions is that it's beautiful!

They've done an amazing job.

The finish is brilliant. The choice of surfaces is amazing.

The style is incredible. They've obviously got very good taste and they do a very good job.

'You can't get a more glowing report than that!

'Hopefully, the estimated resale value will reflect that, then.

'Remember, they spent 20,000 on the work,

'so added to the 226,000 they paid at auction

'plus that seller's fee of 4,500,

'that's a total investment of £250,500.'

The property would resale between £285,000 and £290,000.

We'd put this property on the market for £299,000

and we'd expect to achieve that.

That's roughly what we were thinking, wasn't it?

But maybe a little bit higher as well, so that's good news.

'That top valuation of 299,000 would mean a profit of £48,500,

'minus the usual tax and fees, of course.

'Not only have they got a lovely new home,

'but they're sitting on a great return, which could climb higher

'if they decide to do that loft extension.

'And they've learnt about each other's strengths when it comes to property make-overs.'

I think Rach is more the creative one,

likes to source different things from all over the place.

I'm more the practical person who puts it all together.

-A match made in heaven!

-BOTH LAUGH

'Earlier in the programme, we visited an old pub in the Cumbrian town of Whitehaven

'and met Heather and her husband, Brian.

'This was a new venture for the couple

'and Heather was going to be hands-on as project manager,

'since she'd given up her job as a technology teacher.

'Brian was planning to take a back seat,

'but his quantity surveying skills were definitely going to be useful.'

Tell me what you've bought it for.

Well, hopefully, we're going to be able to split it into two buildings.

-So we're going to have the house, which is the old pub side.

-Wow.

Then the other side we'll revert back to an old cottage.

'Heather had taken time out from her teaching career to consider other options.

'She chose this project to see whether she might prefer property developing to teaching.

'Although Brian was hands-off,

'he was keen to retain as much of the character as possible.'

We're going to keep as many features as we can.

If we can take the doors and bring them back to life, we will.

Some of the floors, if they're recoverable, sand and varnish them.

All the work will be done by proper tradesmen.

'The couple had set a £100,000 budget for both properties,

'and a six to eight month timescale.

'Well, it's now 13 months later

'and some Cumbrian character has been restored to this building.

'The former pub is now a house.

'The main bar area is now this open-plan dining and living area.

'With the former snug becoming the kitchen

'with this separate utility area.

'Upstairs, the layout of the three bedrooms hasn't changed.

'But the master bedroom has gained an en suite.

'The bathroom that lost space to the en suite is still a good size.

'As Heather explains, there have, inevitably, been delays.'

First of all, because it was originally a commercial building,

we had to put in for planning permission for residential.

That took longer than we expected.

The longest thing to wait for was we had to do a mining report that we hadn't anticipated.

'The planned extension hinged on the report,

'which involved three test boreholes

'and a six-month wait to see if there was movement -

'expensive and long drawn out.'

So we felt that converting the cottage into three storeys

going into the loft was the answer.

'Work on the cottage is well advanced.

'The former snooker room and lounge on the ground floor

'will be an open-plan kitchen and living area, as in the house.'

We've put a staircase in, so it leads up to a master bedroom.

We've got a family sized bathroom.

Leading up again into what was originally the loft,

we've got another bedroom and a reasonably good sized shower room,

plus storage area as well.

'They've reinstalled two original windows at the top of the building.

'Both properties have new windows throughout.

'In the house, two useful storage spaces have been made in its attic.

'But with only a ladder, it can't be classified as a bedroom.

'Outside, the pub toilets have been demolished.

'That's created a small garden and patio area for both properties.

'How much has the project cost so far?'

Our original budget was based on a figure of £100,000.

We've currently spent £108,000

and we anticipate when the project's totally finished,

we'll probably spend about £140,000.

'With the £38,000 they paid at auction,

'that takes their total investment to £178,000.

'The delay in finishing the work was only because they didn't cut corners

'and wanted to make sure it was perfect.

'It wasn't just their builders who've been involved.'

Other than the professional builders we employed,

my brother gave us a hand a few times knocking render off walls.

My cousin came up and gave us a hand.

Everybody local has took an interest in the project, so it's been nice.

Everybody's been very generous. We've really appreciated it.

'We asked two local property experts for their opinions on the house

'and prospects for the cottage.

'First, the auctioneer who sold it.'

It's been a huge transformation from being a pub.

The bar area's now the lounge.

The snug is now the kitchen. It's a functional house.

I think the house is very spacious, done to a high standard.

The cottage, I think, because it's on three floors,

when that's finished, it will be very nice.

The cottage next door,

which is work in progress, I think it'll be very appealing

and I'm looking forward to the finished product.

I think the loft accommodation in the house,

although you can't class it as a bedroom,

once you're up there, it's quite spacey

and I like the exposed brick on both ends.

'Once both properties are finished,

'how much rental income could they earn?'

The house would achieve in the region of £500 per calendar month,

with the cottage achieving more in the region of £400 per calendar month.

The cottage, when it's renovated, could achieve £450 per calendar month.

The rental valuation for the house would be £550 per calendar month.

'If both were let,

'those rental valuations would produce a yield of 6%.'

I think that's very good for this area, for rental,

though we'd really like a sale.

'Heather and Brian will have invested around £178,000 in both properties.

'How much are they worth on the market now?'

Dealing with the house first of all,

I think you would get in the region of £145,000.

I think the house could be put on the market at £145,000.

The cottage, when it's fully renovated, could be put on the market at £110,000.

The cottage, when finished, you could get in the region of £100,000.

'Those valuations could produce a profit of £67,000 to £77,000,

'before tax and expenses.'

The cottage valuation is as we expected.

-We think the valuation on the house is, to be honest...

-A bit low.

-..is low.

-Considering this is more of a character property,

I think we can afford to put it in a little bit higher.

I think we'll achieve higher than that.

'How close are they to putting the house on the market?'

Our builder's gone off on another project for a month.

What we'll do in that month is come into here

-and carry out the final clean.

-And we'll do the snagging.

And the general bits and pieces that need doing.

Then when Albert comes back in about four weeks' time,

we can start on the cottage again.

-Still plenty to do.

-And a little rest.

Well, yeah, that will be nice.

That's it for today's show. Join us for another ride on the renovation roller coaster.

-Look forward to seeing you then. Goodbye.

-Goodbye.

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