Episode 27 Homes Under the Hammer

Hello and welcome to the show.

Now, as a nation, we are obsessed with property,

and nobody more so than Lucy and me.

Yes, it is a topic that keeps conversation going

into the small hours of the morning, and everybody's got an opinion.

Yes, and we think that buying at auction is the way to go.

Well, the auction catalogue can give you an idea

of what a property might be like,

but it's not until you look inside that you know for sure

whether it's going to be a money pit or a goldmine.

Yeah, it's important to do your research and make sure

you scratch beneath the surface of your potential investment.

So, what's coming up on today's show?

This Derbyshire property has got to me giddy with giggles.

I'm laughing cos it's just charming! I love it already!

Things could tot up nicely at this end-of-terrace in Twickenham.

As far as development opportunities go,

this one is a profit just waiting to happen.

And a one-bedroomed flat in Newcastle

makes me spill some secrets.

You thought it was a property show? Oh, no. It's so much more.

All these properties were sold at auction.

We'll find out who bought them

-and what they paid for them when they went under the hammer.

-Sold.

I'm in Derbyshire. The village of Hatton, to be precise,

and I will definitely be keeping MY hat on.

This has become somewhat of an overgrown village,

but this used to be the main road through the area

until they built a relief road. It's still fairly noisy, though.

This is the property I'm here to see -

a three-bedroomed detached house.

From the outside, well, definitely 1920s, 1930s.

It doesn't look to be in too bad a condition and I love the fact

that in the front here you've got this glorious magnolia.

# Magnolia you sweet thing

# You're driving me mad... #

I love this little entrance. Erm, so what are we going...?

I was just about to say what are we going to find?

You don't have to go more than an inch into the property.

You're hit by this beautiful Minton floor here. Great start.

You just walk through the door, there's an immediate feeling

that this is a house that hasn't been touched.

Fingers crossed that means lots of lovely original features,

and certainly glance into the front room there,

fantastic old fireplace.

Very much of the era when this property was built.

And it seems, yes, just looking around,

there's another fireplace in that rear sitting-room area there.

Again, very 1920s, 1930s, and back in fashion.

Through to the rear of the property here where you've got a kitchen.

You'll have to spend time and money on this. It's not big enough.

So maybe that wall comes down. It's got this bare brick in here.

I'm laughing cos it's just... It's charming!

I love it already!

Charming it may be, but you're going to need a pretty penny

to bring this place up to date.

New kitchen, rewiring, double glazing.

Well, quite a lot of work, really.

So, upstairs - any more delights in store?

Well, before I even get here, the staircase, pull this off,

I bet there's original spindles underneath there,

which would be lovely. Good size bathroom.

Not sure about the colour, but a great space.

Put a new suite in there, it would make all the difference.

Back bedroom's a good size. You've got a fire.

A smaller single bedroom there,

and through to the front where you've got your third bedroom.

And, er... Well, yes, it all needs a bit of sorting out, doesn't it?

But it's one of those houses where it's just worth the effort.

At a guide price of 85,000, there's a great deal of house,

and there's more - a humongous garden.

Well, I love the house so much that I would forgive it

if it had a really tiny garden, but it doesn't.

It stretches all the way down to that privet hedge at the bottom.

It's in need of tender-loving care and certainly a bit of a mow,

but get this planted out, it'd be a really, really nice space.

You've also got this fairly ramshackle wooden garage

and then over this side, a log store.

But look at this - a real brilliant little building!

It's an outside store area.

It's got a loo, another little area in there, but the best thing

is it's got that chimney stack. I don't know why, but I love it!

On reflection, if this was the old wash house,

there must have been a fire or a stove for hot water.

Whatever the case, as they would have said in the 1920s,

it's all rather hotsy-totsy from an era of elegance.

Speaking of which, what did the auctioneer

who sold this detached house make of it?

I like it, but I, you know,

I'm getting long in the tooth and I like older things.

It's a solid house. It's got some space to it,

it's got some original character to it. You could exploit it, you know.

You could extend it at the back, which probably is what it needs.

You could do a lot with it. So, yeah, it's got a lot of tick boxes.

Ah, an extension.

I hadn't considered that. But why not?

So, bearing in mind the auction guide price of £85,000,

what does he think that the refurbished property

without an extension could fetch if it was sold on?

I think this would have an ultimate value

of probably around £180,000.

And with, say, a cheeky new extension at the back?

I think it would probably have a value of about £225,000.

What about putting the refurbished house up for rental?

Rental value here, once renovated, would be in the order

of £600 a calendar month. Maybe towards 650.

Um, assuming extension, you'd probably increase that

by about £50 a month. So, 650 to £700 a month.

You'd almost feel like you were restoring a piece of history

if you took on this place,

and I just hope that whoever bought it is going to be sympathetic.

I love this house. Let's see who agreed

when it went under the hammer.

Lot number 68.

I'll start it with a proxy bid at 90,000.

I'm in at £90,000. 91 somewhere else?

At 90,000...

This one took a while to get going, so we rejoin the bidding

at £118,000.

118.

119.

120.

121.

122, a new bidder.

123.

124.

125.

26.

127. 128.

129.

129.

130? 130.

31.

32 somewhere else?

£131,000.

Once...twice...

third time.

# I'm so excited

# And I just can't hid it

# No, no

# I know, I know, I know, I know

# I know I want you I want you... #

Well, clearly delighted with their £131,000 purchase

were Sharon and her fiance Zach.

Sharon runs the pub where the couple met.

I caught up with them at the property

to see what they were planning,

apart from their wedding in six months' time.

-Sharon, Zach, great to meet you.

-Nice to meet you.

-How are you, OK?

-Congratulations! Delighted to be in this house.

It's lovely, isn't it?

Fantastic, absolutely fantastic. What we've been looking for.

It's a lovely village and it just ticked all the boxes for us.

So you've bought it to live in?

Eventually, yes. Obviously, when it's all done up, we'll be in.

What was it about it that you loved so much?

The character, everything. The tiles in the hallway there.

Just everything about it was spot-on. The space...

The size of the rooms is fantastic.

Like we said, we ticked all the boxes.

All of the unique features about it were just fantastic.

A bit of TLC and it should be exactly what we want.

Yeah, it's lovely that it's survived the ravages of time

without having to many, you know, changes done to it.

There's some lovely, lovely features.

Tell me what you're going to do to it, then?

Really, structurally, it's going to pretty much stay the same,

bar the dining room wall's to get knocked through to the kitchen.

-Obviously a full rewire.

-New windows...

New windows throughout as well.

And then the bathroom. In an ideal world,

if we could possibly get an en suite off the main bedroom

and a family bathroom as well, then that would be perfect.

And then internal decoration. I mean,

it's almost come back in fashion, some of the wallpapers and stuff.

You pay a fortune for this kind of thing. For instance, in this room.

I think it's going to be a tough call when we get to that point

as to whether we keep things or let them go.

You're laughing, Zach, as if...

-Well, I'm a decorator.

-Oh, are you?

So it'll be me that's doing the tough calling, I think,

but it might have to go, I think, eventually.

Even if the wallpaper does have to go,

Sharon and Zach are intent on keeping

as many of the other period features as they can.

The tiled floor in the hallway

apparently has been covered with carpet for a lot of its life

so it's kept it in really good condition, so we want to keep that.

And all the floorboards we'd like to try and use,

if we can, if it's practical.

And any plans for, like, patio doors out of this room, perhaps?

I think it's crying out for French doors here, yes, onto the garden.

I'm not sure yet whether that would involve

blocking the back door from the kitchen.

But if you're knocking this wall in here down and then you have that.

That'd be a fantastic room, wouldn't it? Kitchen stroke...

This is where you spend all the time.

-Exactly, yeah.

-Definitely.

And what about the kitchen? Any ideas for a style for that?

Started loosely researching

what a 1920s kitchen style would look like...

-Oh, golly, really?

-..to see if that's appropriate.

Because it was built in the '20s we'd like to have a look

at whether that's going to be a theme

we'd like to follow through the house.

It's great to see you so excited about this. You are, aren't you?

-Yeah, we really are.

-Fantastic. Absolutely spot-on.

Brilliant!

These two are really thrilled about the task in hand.

On top of their sympathetic refurbishment of the interior,

they plan to overhaul the garden, the outbuildings

and make the driveway a bit more user-friendly.

All of this in a six to eight-month timescale,

during which they're also going to get married.

What's the budget for the work that they're going to do here?

-25-30, we think is realistic...

-Oh, wow.

-..and would still hopefully keep us adding value to the house...

-Yeah.

..so it becomes an investment for us for our future together.

Sounds like a very healthy budget.

-Obviously it's for our own use as well.

-OK.

So we don't want to cut corners.

We want the windows to be nice, we want hardwood windows.

We want all of the things that might cost us a little bit more,

so it's possibly on the generous side,

but it's where we want to live and where we want to stay.

And you've got the driveway to do outside.

-That always costs a lot, doesn't it?

-Exactly.

There's always little additions there.

Maybe a little bit of roof work but nothing that major.

But better to have it in the budget than not, really.

Will you wait until it's completely finished before you move in

or will you sneak in here when it's half-finished?

-Oh, possibly.

-I think the temptation will be

to get in as soon as we can and work round ourselves.

I think as soon as the drive's on the front, we'll be in.

As long as there's a kettle in the kitchen, we'll be there.

-I can understand why! Great.

-Looking forward to it.

Yeah, well it's lovely to see you both so excited by it.

-Good luck with it.

-Thank you very much.

-Can't wait to see how you get on.

-Thank you, thank you.

Well, how fantastic that Sharon and Zach have found this place

and they're going to turn it into their home.

In fact, their first home together. Wonderful.

And they obviously love it and they're going to look after it

and do it up so perfectly and...

Well, I can't wait to see how they get on.

You can find out later in the show.

Want to be 30 minutes from the centre of London,

but with a riverside setting

and shops and restaurants with a villagey vibe?

If so, Twickenham might take your fancy.

It's times like this that I love my job.

A nice part of Twickenham,

an attractive road lined with period properties,

and the lot I'm here to see isn't a complicated flat conversion

with badly carved-up space and lease issues to cause you a world of pain.

No - it's a really nice, straightforward house

with two bedrooms and a guide price of £430,000.

Perfect! I'm going to check it out.

Now, that's still a lot of money,

but this is a highly desirable area where properties can go

for around a couple of hundred thousand more than this.

Well, I don't want to jinx it or speak too soon,

and it is tired and dated, but it's not bad in here at all.

You've really got to have a bit of vision for this place,

but, look - you've got a lovely sized lounge in there,

beautiful windows looking out to the tree-lined street,

second reception room.

You know, with these types of houses you can knock through here

to create a lovely, large open-plan space, works really well,

but, of course, it just depends on how you want to live.

There's already double glazed units in here, which is fantastic,

and the kitchen - a great space. Not a small as I'd thought.

It needs brand-new units, it needs a freshen up.

You could put a beautiful big window

or even some bi-fold doors at the back there

so you have a view of the garden.

And there is the potential to extend.

There's a side return so you could push out. Loads of potential.

I know I seem like I'm getting excited,

but it is a good house, this one.

# I get so excited

# I get so excited in your arms. #

The phrase "a blank canvas" could have been coined for this property,

but it's also crying out for inspiration.

In its favour, it's clean and tidy, doesn't smell damp

and it's really pretty much liveable as it is.

Upstairs, the front bedroom spans the whole width of the house

and is bright and spacious.

The second bedroom is also a great size and the bathroom is massive.

This is a disproportionately large bathroom for the house,

but the alternative of having it downstairs,

really, around here, is unthinkable.

And I don't want to start changing the layout,

trying to squeeze it into a corner, turn it into an internal bathroom -

that is just not happening for me, so I think leave it there,

make it luxurious and turn it into a real selling point.

# And just leave it alone

# Ah, ah

# Just leave it alone. #

Yes, I would definitely leave the layout alone.

This is not the sort of property where buyers will accept

pokey shower rooms or titchy bathrooms,

but there is scope for a valuable change elsewhere.

Of course, the opportunity screaming out here is in the roof space.

That's right - you could create a loft conversion.

Now, the house is big enough for your average family,

and with 2.4 children you need three bedrooms.

Now, there's space in the landing for a turn in the staircase,

and there is enough square footage in the loft for a master bedroom

and that all-important en suite.

Now, you would have to apply for planning, but as you can imagine

the precedent has been well and truly set around here

and you could add around £100,000 on to the value of the home.

As far as development opportunities go,

this one is a profit just waiting to happen.

I'm thinking that going up

and that side return could make this a fantastic family house,

coupled with what is a pretty decent-sized garden.

I reckon this is a corker!

But what does the local property expert think

of the possibilities for this place, guided at 430,000?

Well, it obviously needs some work, but there's loads of potential.

It's not too bad, it's not as bad as I thought it would be,

but then you've got a really good size garden.

I would certainly look to go into the loft, do a loft conversion

and also go out the back and do a kitchen extension.

So, we're agreed - what this house needs is a revival,

but let's talk dosh.

Firstly, how could this fare sales-wise?

If you didn't extend and kept it as a two-bedroom,

it would probably be worth maximum £550,000.

And if someone did extend,

soaking up around 80,000 to £100,000 of the renovation budget?

Once it's actually been renovated and extended,

it's probably worth in the region of about £625,000.

If you choose to let the property,

what monthly rental income could you expect?

It's a really good rental area. If you let as a two-bed

you'd get in the region of 1,800 per calendar month.

If you let it as a three-bed, you'd probably get in the region

of 2,500 per calendar month.

This lot is more than enough to get my investor's heart racing.

A dated freehold house in a desirable area with scope to extend.

It is a developer's dream!

There is work to do, but bought for the right price

there's profit in it for sure.

Let's see what it went for under the hammer.

I'd like to kick off, I don't know, 380?

I'm not going to go below 380. 380, anywhere?

With you, £380,000. Anyone else?

385?

390. 386.

387.

388, 389.

390.

391.

392.

What's that, 395? I'm not taking at 395.

396.

397. 398.

399. 400.

401.

Anyone else?

£400,000, first time, second time,

third and last time, if you're all done?

Sold, 400,000.

# Well, I'm a lucky man... #

Striking it lucky with Giles and his clearly delighted wife Cecilia.

With their successful £400,000 bid,

they bagged this pad for 30 grand under the guide price.

The only relatively small catch was they had to pay the seller's fees,

which cost an additional £1,000.

I met up with Giles to hear about his plans for it.

-Giles, congratulations.

-Thank you.

Well done! How was the auction? Did you enjoy that?

It was a little bit daunting, but it turned out to be a better...

I was so nervous because I set myself a limit,

which I obviously didn't want to go over,

and I had my wife there to try to keep me in tow,

cos I'm a little bit too competitive from time to time,

but it went for significantly less than I was prepared to pay,

so I was somewhat overwhelmed and somewhat worried

that perhaps there was something wrong with the property,

which I hadn't identified prior to the auction.

I was very surprised to hear you got this for 400.

I mean, that is an incredible price,

-but you didn't get a survey, did you?

-No.

So you don't know if there is anything wrong with this,

-you haven't done much research into the property?

-Only as far as...

I mean, the property's been standing for 100 years,

so I'm fairly confident it will stand for another hundred.

And I did have a look at the house on a number of open-floor inspections

so I could get a good feel for it and have a look and see

if I could identify anything that maybe was structural or more serious.

# I'm still standing Yeah, yeah, yeah

# I'm still standing Yeah, yeah, yeah... #

I'm not going to say it...

Oh, blow it - I am. You really have to do your research.

You just can't assume anything.

At least Giles read the legal pack -

just as well, since it said he had to pay the seller's fees.

He currently lives in rented accommodation

as he's just returned from a long spell in Australia.

So what's the plan here?

How forward do you want to go with this?

Knowing that you've got this at quite a good price

would you like to renovate this, you know, top spec and then sell it on?

Yeah, I'd like to renovate it to a high standard,

but I will also leave an element for a future purchaser

to take it to an even greater development opportunity.

I mean, you only need to stand outside and look up

and you can see all the properties, they've all gone into the loft.

They've got the extra bathroom up there.

Are you going to take it to that kind of level?

Yes, what I wanted to do is to do a loft conversion,

which would be an L-shaped dorm extension,

similar to the one on the neighbouring property,

which would actually facilitate an additional bedroom,

a master bedroom, with an en suite shower room

and a fourth room as well,

which could be a fourth bedroom or a nursery or a study.

Fantastic, and what about the downstairs space?

I mean, you've got enough room to,

sort of, push out into the side return?

Yeah, what I'm going to do at this stage

is I'm looking to open up the kitchen

by putting some French outward-opening doors at the end

and probably similarly from the dining room

to allow that to open out onto a paved area,

and then put in a galley-style kitchen,

but I won't actually expand the full width of the ground floor area.

The family would love that,

and you have got a fair-sized garden out there, too.

Yeah, the garden's fantastic, and it's south-facing as well,

so it's just bathed in sunlight.

So have you ever done anything like this before?

I haven't. I've dabbled in bit of DIY,

so hopefully that will provide me

with some of the knowledge that I need.

And what sort of budget have you got for the work here,

because you could spend so much money on a house like this?

You've just got to be very careful.

Yeah, I think I was looking at around £100,000 -

including my acquisition costs for the property,

so my stamp duty and legal fees - as a budget for the project.

# That's enough Come on, now

# That's enough... Yeah. #

That should certainly be enough for a lovely job

and make this a fantastic family home.

Giles did think at one stage

it might be his family moving into the house,

but I think it's much less likely

since he's realised the potential of what he's bought.

Do you feel quite smug about the fact that you did pick up a bargain?

Yeah, I have spoken to a couple of local agents to get an idea...

I wanted to get some input from them

as to what the local demographic would be looking for in the property

and one of them has suggested they might have a buyer

who would be interested in taking it in its current state,

-off my hands immediately.

-Oh!

So I'm obviously going to entertain that and see if it materialises,

but I'm also obviously getting ready to carry out the renovation project.

Wow! I mean, that could be tempting.

So you could turn it, not do a thing, and still make a profit.

-Yes.

-But that would be boring for us.

We want to come back and see what you're going to do.

Yeah, I mean, I am quite excited about doing the project,

but, I mean... Well, they say money talks and, yeah,

if the price is right then I'd have to consider that.

Giles, I'm so excited to see what you do here.

Good luck with this project.

-Thank you very much.

-Lovely to meet you.

Money does indeed talk and I can see why Giles is tempted

to sell this place on without touching a brick,

but I would love to see him do the work, though.

I think it's an exciting project

and there's potentially double the profit in this

if he renovates and extends.

What's going to happen? I just don't know.

You can find out later in the show.

Coming up, I'm baffled by parts of this Newcastle one-bed...

What's that for? Is it a design thing?

It's a dust gatherer, that's for sure. Look at that.

We'll find out how Giles fared with the Twickenham two-bed,

but not from the man himself.

He definitely got a bargain!

We got a little bit of a bargain, he got a big bargain.

But first, in Derbyshire did Sharon and Zach

let their purse or their heartstrings win?

We have exceeded our budget.

Back now to Hatton in Derbyshire and this three-bed detached house,

which simply oozed 1920s charm.

It was bought at auction for £131,000

by pub landlady Sharon and her fiance, Zach.

They were intent on retaining

as many of the period details as possible.

It's almost come back in fashion,

some of the wallpapers and stuff, haven't they?

You pay a fortune for this kind of thing.

For instance, in this room...

Yeah, I think it's going to be a tough call when we get to that point

as to whether we keep things or whether we let them go.

They'd given themselves a budget of £25,000-£30,000

and a six to eight-month timescale to renovate the property,

get married and then move in.

Well, 11 months after our first visit and we're back.

The couple are now married and have nearly finished the makeover here.

# Every night in my dreams

# I see you, I feel you... #

# Hoots, mon, there's a moose loose aboot this hoose. #

Well done, Sharon and Zach.

They've done a great job of retaining period details

and adding their own contemporary twist.

We were really bowled over by the original features

that were still here in the house and the condition that they were in.

We've lost a few, like the picture rails,

which we've chosen not to reinstall.

However, we've managed to keep all of the doors original,

all the door handles...

We found the spindles when we took all the covering off the banisters.

They were boarded in, yes, and we found those

and had to keep the Minton tile floor because it's so beautiful,

and we're lucky it's in such good condition.

As well as the beautiful original hall tiles,

they've reinstated the open fire in the sitting-room.

And in one of those contemporary twists,

the log-burner works a treat in the new kitchen-dining room.

With us blocking up the doors to the pantry

and also the original kitchen door as well,

that's allowed us to have a lot more space in the kitchen

giving us a lot more work space and worktops and that,

so in the long-run it has worked out a lot better for us this way.

They've squeezed a WC into the under-stairs cupboard.

And the French doors out onto the garden work really well.

Sharon and Zach are still planning to tidy up the back garden

and those fabulous outbuildings,

but there's been a lot more work to do on the house

than originally thought, not least a whole new roof.

Clearing the trees on the lawn at the front

has certainly opened things up.

Upstairs the layout remains the same, apart from one big change -

the addition of an en suite to the master bedroom.

Just putting a stud wall in enabled us to have

a very decent-sized en suite

and still keep a good-sized bathroom as well.

Yeah, a really good bathroom.

Probably the easiest room to work out, really.

Went straight in, all the pipework's been fine,

so it was quite straightforward.

And it seems to suit the house as well, and suit our needs.

Definitely, definitely.

But it hasn't all been so easy.

They had to take the whole building back to the brick and start again,

which allowed them to insulate the property well.

Replastering from top to bottom

was a help to painter-decorator Zach.

The builders left us a fantastic plaster finish

so it's been relatively easy,

with all the new woodwork on the skirts, the sills and everything,

the blues and the creams we're quite happy with, so...

Sharon's good with the colours.

As you can probably tell by the curtains upstairs.

Yes, it's those little touches

that really do make this house a beautiful home.

There's still a bit to do in the kitchen.

Over a bit, over a bit...

Yup, that's fine.

But Sharon and Zach didn't start straight away on the renovation,

so they are happy with the time the work has taken.

But what became of their £25,000-£35,000 budget?

We have exceeded our budget.

-HE CHUCKLES:

-A tad.

Certain expenses we hadn't planned for,

so we are currently at a spend of around 42,

but for that we have everything that we could really have wanted

and we have an almost-new house.

That £42,000 spend

brings their total outlay here so far to £173,000.

We asked two local property experts

for their thoughts on this renovated house.

I think the property is a delight to enter.

The open space, it's bright, airy, light, and it's truly superb.

The highlights of this property for me are the beautiful features

the current owners have actually left in,

such as the Minton tiled floor on entering

and the fireplace that's been left in the lounge is really lovely.

What do they suggest the property might fetch if it was let?

The rental income would be somewhere between

£675 and £700 per calendar month.

I think it would be popular with families

and I think it would achieve a monthly rent

somewhere in the region of £700 per calendar month.

Those rental valuations would give a yield

of just under 5%, which is OK.

But what if Sharon and Zach wanted to sell the house on?

If I were looking to put this property on the market,

I would expect it to achieve a sale somewhere in the region of £180,000.

If I was to bring this property to the market in its current condition,

I would recommend an asking price of £180,000-£185,000.

MUSIC: "You Can Leave Your Hat On" by Tom Jones

So there may just be a slim profit

of £7,000-£12,000 if they chose to sell.

However, Sharon and Zach are intent of keeping their "Hatt-on" property.

So what's next on the agenda for this newlywed couple?

-Have a day off. Sleep.

-I think it's been...

Yeah, it's been hard work and a labour of love, really.

Yeah, we certainly enjoyed it though.

We wouldn't do it if we didn't enjoy it.

It's been hard, but it's been very enjoyable.

We've had a laugh all the way as well.

Yeah. Looking forward to living in it, having some time together

and, you know, possibly sneak in a little holiday in there if we can.

-A cheeky one, if possible, would be nice.

-Yeah.

And so to the highest point of the Metropolitan Borough of Gateshead,

with views over Newcastle to the North

and the Team Valley to the West, this is Sheriff Hill.

So, how did Sheriff Hill get its name?

Well, in years gone by the Sheriff of Northumberland

would meet with judges and other law enforcement people

from around the area before they'd travel together across the Tyne

into Newcastle to pass judgement on ne'er-do-wells.

You thought it was a property show? Oh, no. It's so much more.

# Stand and deliver. #

Well, hopefully not too many bandits and highwaymen

around here these days, but as a popular location,

Sheriff Hill stands on its own two feet

and may yet deliver a property bargain.

Well, properties in Sheriff Hill

benefit from really good transport links into Gateshead,

and Gateshead itself is undergoing massive regeneration at the moment,

so a fantastic place to invest in property.

So what am I here to see? It's a one-bedroom flat.

It had a guide price of £25,000 plus.

This is it. Let's take a look.

Dum-ba-da-ba-da...

So, what have we got? Well, I tell you what.

I don't have to go very far to see some really strange things.

Look at this door!

Have you ever seen an internal door with this kind of...

What's that for? Is it a design thing?

It's a dust gatherer, that's for sure. Look at that.

Anyway, into the flat. What have we got? A little corridor...

Really nice-sized front living room. Actually, or is it?

Or is it the bedroom? I'm not sure.

Probably have that as the living area

because it's actually on that fairly busy road,

and you'd want to have your bedroom towards the back.

Bathroom there. Good size. I mean, it's got a bath in there.

You could have a much bigger bath, perhaps, even, and a shower,

so lots of things to be played with there,

and then through to a room... And I'm now going to have to completely go back

on everything I've currently said

because this is clearly your living room

because you've got the big fireplace and off it is your kitchen.

So my idea of moving the bedroom here...

Well, it ain't going to work,

so major need for some double or even triple glazing.

It's got double already, but a good-sized living room here.

I love the fireplace.

And then through down into the kitchen. It's not huge,

but this really is just a one-bedroom flat at the moment,

so maybe it's adequate, and then out into a little courtyard there.

So it seems like a pretty good start. Um...

Nothing majorly structural or damp-wise to worry about so far.

So, yeah.

Double thumbs.

And if I had a spare I'd give the third thumb too

for this lovely shared courtyard.

To have this at the back is a real bonus,

particularly as the guide price was just £25,000 plus.

We asked a local estate agent for her thoughts on it.

This is a spacious one-bedroom flat.

Needs redecoration, refurbishment, a new kitchen, obviously.

Some works done to it.

It would benefit greatly if we could get a second bedroom in here,

and perhaps that's something that the owners could look into.

I think in this case it would be sad to sacrifice the space,

but the decision could hinge

on the difference it would make to the financial returns.

If this flat was refurbished to a high standard

then in this market it could expect to achieve approximately £60,000.

If it had a second bedroom

then it could possibly achieve £70,000-£75,000.

And as a rental?

As a one-bedroom flat in today's market,

in good condition this property could expect to achieve

approximately 475 pounds per calendar month.

If it was made into a two-bedroom flat

then I would expect that to increase

to approximately £550 per calendar month.

Well, it's a nice flat in a great location

and a good guide price, too.

Currently one-bedroom. Would you bother converting it into two?

Well, I personally wouldn't.

Let's see what happened when it went under the hammer.

So we're going to go this time to Gateshead.

It's a one-bedroom, ground floor flat.

Do I have 25,000 anywhere?

Third row, £25,000 bid. Do I have 27 anywhere else?

It's the lady's bid at 25,000.

27 on the telephone.

29. 29 bid. 31?

31 bid. 33?

33 bid. 35?

It's in the room at £33,000.

On the back wall at 35,000.

37. 37 bid.

39? 39 bid.

41? 40,000 bid.

41? With the lady on the third row at £40,000. 41.

You're out as well, Janet? It's for the lady at £40,000.

You're both out. I'm here, I'm selling at £40,000.

I'm selling once at 40,000.

I'm selling for the second time at £40,000.

Sold.

That successful bid of £40,000

was placed by Philippa on the right here.

She was at the auction with her civil partner, Tiana,

who's also in on the deal.

Philippa's originally from Zimbabwe and Tiana's from South Africa.

They've lived in the UK for three years

and split their time between property developing

and importing handmade gifts,

such as candles made in the South African village

where they used to live.

-Philippa, Tiana, good to see you.

-Good to see you, too.

-Congratulations.

-Thank you.

Tell me why you wanted to buy this flat.

Firstly, its location. It's on a great bus route

and transport links to Newcastle and Gateshead.

And it was so spacious.

Walking in, I just loved the feeling of space.

And nice one-bedroom. The hospital's up the road.

It's a good renter, I think.

-Is that the plan, then? You bought it to rent it out?

-Yes.

We looked at the area and found that,

with the hospital up the road, schools just up the road,

there's definitely a rental demand in this area,

so that's definitely our plan.

This will be the fourth renovation

the couple have taken on since moving to the UK,

but they did dabble in property development back in South Africa.

I bought an airport in South Africa.

-An airport?!

-Yes.

It was a rural airport with an operational airstrip,

but the building was built in Spanish style.

Huge building, and it was in disuse.

And it was originally built for the Dakotas.

They couldn't make it all the way from Johannesburg to Cape Town

and they needed a refuelling bay.

It was about five hours from Cape Town,

and it was that airport

and I bought it and renovated it and made it into a guesthouse.

-Oh, wow!

-So it was a huge project and great fun. Loved it.

-And is the runway still operational?

-Oh, yes.

It was operational all along for light aircraft and...

Well, Dakotas, it must have been reasonably long?

-Yeah, a mile.

-A mi... Wow!

Beautiful property. Beautiful property.

I told you this was so much more than a property programme!

This particular travelogue,

from South African airstrip to a flat in Gateshead,

is a bit of a departure.

Fingers crossed Philippa and Tiana will avoid any delays.

So, tell me what you're going to do to sort it out.

Well, there's not that much work.

Obviously a new kitchen.

Strip all the wallpaper off,

if we skim the ceilings and possibly the walls...

The bathroom, we're going to install a nice, big shower.

It's spacious enough for that.

The floors, some of it we're thinking of bringing back to wood.

To sand it down and make it nice again.

So we're sort of toying with that.

And then under the stairs in that little room

we're going to make a little utility area

with a washing machine and that kind of thing.

Because the kitchen is so small, we can utilise that space.

So it's basically just a general little refurb. Nothing too serious.

Philippa and Tiana are working on another property at the moment

and their gift-importing business is approaching a busy time.

So they aim to have the flat ready for the rental market within four months,

even though the work here should only take around six weeks.

So what's the budget for the work?

We've worked out about 5,000, with a contingency of 1,000.

So we are expecting to come in under six,

but we're really thinking five will do it.

And are you doing a lot of the work?

-90% of the work.

-90? OK.

Um, we'll get a spark in, obviously, to do all of that.

It needs a complete rewire,

and we'll get our gas man in to come and check out

all the central heating and the boiler and all of that.

And apart from that, yeah, it's us.

We'll exercise our plastering skills on this property.

-Plastering skills?

-We've just completed a course

at Newcastle Construction Academy on plastering.

-Wow!

-Because it always crops up in these properties.

You always need a bit of plastering,

so we've just completed and we're going to take it on.

-So we'll be plastering.

-Really?

It's funny, cos it is. You mentioned electricity and gas -

the majority of people have to bring people in to do them,

but actually the other thing which people get people in to do

is the plastering, because actually things like ceilings - nightmare!

Yeah, they are. But I have to confess,

we're not going to do the ceilings.

Our instructor is going to come and do the ceilings for us.

Oh, well done! But how did you get on, because it's not easy?

-Or is it easy? I don't know.

-No, I wouldn't call it easy.

Not easy. It's an art. It's a skill.

Yes, it's a skill that you learn with time, I would say.

You get more proficient as time goes on, so it's a bit of...

And definitely there's different styles.

We found from the people who were instructing

that they had different styles

and you can just develop your own style

-to what is comfortable for you.

-Wow. Well, lovely to meet you both.

-Congratulations.

-Thank you so much.

-Good luck with it.

-Thank you very much.

-I look forward to seeing how you get on.

-Thanks.

-Thank you.

Well, from an airport in South Africa

to a flat in Gateshead. Hopefully this project

will be a RUN-A-WAY success for Philippa and Tiana.

But you never know - the sky is the limit.

-LAUGHING:

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

Well, time has passed.

Let's go back to our properties and find out the truth.

Have they been a triumph of engineering or a house of cards?

Let's find out.

Let's take a trip back to Twickenham on the outskirts of West London

where I viewed this two-bedroom end-of-terrace

in a highly desirable area.

Inside the decor was a blast from the past,

but it wasn't retro - it was, "Oh, no!"

But structurally it was sound

and at a bargain guide price for this area of £430,000

and there was plenty of potential for profit.

On auction day, the successful bidder was Giles

who paid 30 grand less than the guide price. Is that lucky?

Well, you've got to be in it to win it, as they say.

He planned to renovate the property

and add a loft conversion, plus side extension.

But there was also another option.

Do you feel quite smug about the fact that you did pick up a bargain?

Yeah, I have spoken to a couple of local agents

and one of them has suggested they might have a buyer

who would be interested in taking it in its current state

-off my hands immediately.

-Oh!

So I'm obviously going to entertain that and see if it materialises,

but I'm also obviously getting ready to carry out the renovation project.

So did Giles flip it or forge ahead

with his grand plans for the renovation?

Just under a year and a half later, we're back.

Fantastic - this end terrace has been transformed from retro shriek

to a chic and contemporary family home.

However, these aren't the fruits of Giles' labour.

He did choose to sell the property as it was

to Alex, James and their baby Charlie.

Giles has moved back to Australia,

so it was Alex, who works in fashion PR,

and James, a financial controller,

who did the renovation and are now living in the house.

We always wanted a property to renovate,

so we started our search quite wide in West London

and found the property and decided to make an offer.

We were actively put off by properties that were done.

-We wanted to do the work ourselves.

-Yeah.

And what a tremendous job they've done.

By removing the internal wall and extending out into the back garden,

they've created a fantastic open-plan living kitchen area.

I absolutely adore it. It's spacious yet cosy.

In the kitchen I just love that rustic shelving,

a beautiful touch which, added to the log burner in the living area,

gives this room a warm and comfy, country vibe.

We wanted to have a bit of, kind of, oldness to it as well,

-not just all stark and brand-new.

-Yeah. We're really happy with it.

-Yeah. We think it works.

-Mm.

Upstairs, with its garish carpets and peeling wallpaper,

was far from the modern family home

the local property market normally attracts.

Alex and James have again worked wonders.

Their interior design choices radiate peace and tranquillity,

and I'm pleased to see they have uncovered and restored

a period fireplace. Fantastic!

The bathroom no longer feels oversized

due to the addition of built-in cupboards. Always handy.

It's now ideal for baby bath time,

and then enjoying a relaxing soak in the tub once baby's in bed.

But we're not done yet. The couple have added an attic conversion.

Ooh, exciting! Let's go exploring.

Charlie's nursery bedroom's upstairs,

along with another oh-so-cosy bedroom.

And it would appear I'm not the only one who thinks so.

We've added two bedrooms and a bathroom.

We decided not to go en suite, so it's a separate bathroom

just so it makes it a little bit more of a proper additional bathroom

that can be used by both those rooms.

Yeah, cos we thought with having two rooms up there rather than just one

it would benefit from having a separate bathroom.

-Which... It works, I think.

-Yeah.

Alex and James have created

a fantastic family home for themselves here.

The couple put in an offer for the property

less than two months after Giles bought it at auction for £400,000.

So if they don't mind telling us, how much did THEY pay Giles for it?

For the property itself we paid 500,000

and, on reflection of other properties in the area,

-we thought that was quite a competitive and fair price.

-Yep.

And were they aware that Giles had only just snapped it up at auction

for £100,000 less than they paid?

No we weren't. We weren't.

We only found that out later, actually.

Well, Giles really did bag himself a bargain!

Yes, he did get a bargain. He definitely got a bargain.

We got a little bit of a bargain, he got a big bargain.

We try not to talk about that very much.

OK, let's move swiftly on.

From the moment building work began, it took six months to complete.

It cost £150,000, which, added to the couple's purchase price of 500,000,

brings their total outlay to £650,000.

We invited two local estate agents

to give us their opinion on this property,

including the one who viewed it previously.

Well, after seeing the property before

they've clearly done an amazing job in here.

It's absolutely transformed from what it was before. It looks stunning.

Property in very good condition. Presented very nicely.

Loft conversion's been done to a good standard to create a good space.

The finish is all very good throughout the property.

I think it will definitely appeal to a lot of families in the area.

Alex and James have no intention of selling their home

for the foreseeable future.

But bearing in mind their total spend of 650,000,

how much do the estate agents believe it could sell for?

If we put this up for sale we would look to achieve

in the region of about £690,000.

In the current market I would expect to achieve

around £700,000 for this property.

Those estimated figures, if they were to sell the place on,

would give them a pre-tax profit of between 40,000 and 50,000,

minus the usual deductions, of course.

What do they think of that?

-That's exactly what I would have expected, actually.

-Yeah.

-So, um...

Yeah, it's good to know that we're, kind of, on par

-and we've made a bit of money on it as well, so...

-Yeah, that's good to know.

Rental-wise, the estate agents believe this property could achieve

as much as £2,250 per calendar month,

which is a tad over a 4% yield.

This house is Alex and James' home

and it's been an investment in their future happiness

rather than a fast financial reward.

Are they as happy here as they hoped they would be?

I think, yeah. And actually, in comparison to buying it

with it like this already done, it gives us more satisfaction, I think.

I probably, kind of, like it more

given the fact that we've done it ourselves.

-No, we're really pleased to be here.

-Yeah. It's a good family home.

-Mm.

Back now to Sheriff Hill, Gateshead,

and this one-bedroom ground floor flat.

It was bought at auction for £40,000 by Philippa and Tiana.

But these two were no renovation novices.

Philippa, on the left, had stretched her wings

buying property at auction back in South Africa.

-I bought an airport in South Africa.

-An airport?!

-Yes.

It was a rural airport with an operational airstrip,

-but the building was in disuse.

-Oh, wow!

And I bought it and renovated it and made it into a guesthouse.

-INTERCOM CHIMES

-Ladies and gentlemen,

my name is Martin and I'll be making sure you are comfortable

during this short flight from before to after.

Philip and Tiana are at the controls

and they're estimating a renovation budget ceiling

of £5,000-£6000 and a flight time of around four months.

-INTERCOM CHIMES

-So please sit back, enjoy the flight

and, of course, the in-flight entertainment.

Well, it looks like Philippa and Tiana

have successfully piloted this one to its destination.

The new kitchen is complete.

Well, almost.

Thank you, Philippa.

While the new bathroom is looking fabulous.

Over to you, Tiana.

Well, in the bathroom, first of all,

when we arrived we had a big airing cupboard

with the old storage tank in, so that we removed.

And then, because the bathroom is so large,

we decided to put in a nice, big shower.

And then, of course, on that side above the bath

we had tiles which was different shapes and different sizes

so it really didn't work,

so we took all of that off and we tiled that as well.

So now you have a really nice, spacious bathroom

and we are quite pleased with the end result.

Yes, the bathroom and the rest of the flat are looking spick and span.

I was rather fond of the fireplace. I'm sorry that's gone.

But it's all very impressive,

especially given that Philippa and Tiana

have done most of the work themselves.

Did that plastering course they did come in handy?

When we took the wallpaper off, which was one of the first jobs,

we realised that the condition of the walls wasn't great,

so we decided to replaster the entire property,

excluding one small ceiling,

and that gave us an opportunity to develop our plastering skills.

And we also had help from our instructor who came along

and did ceilings and some of the walls with us,

so we had more learning experience from him,

but we really enjoyed it. Really enjoyed it.

They have also had help with the rewiring, gas and plumbing jobs

from certified installers.

Delays on another property they were working on

has pushed them a little over on their schedule,

but how have they fared on the budget front?

The budget was 5,000 with a 1,000 reserve,

but we've gone to 7,300

and the reason being that we had to put in a new boiler,

which we didn't think we'd have to,

so that was just over 1,000 there, and then the shower.

Once we took away that storage cabinet in the corner

we had so much space a smaller, or a normal-sized shower unit,

would have been lost in there, so we had to go for a bigger unit,

so there was a bit more money spent there,

so that drove us up to 7,300.

That £7,300 spend brings their total outlay here to £47,300.

We asked two local estate agents,

including the one who saw the flat before,

to give us their thoughts on the renovation.

I think they've done the property to a good standard,

especially for renting out.

Perhaps they could have done a little bit more

if they were living here themselves, but, yeah, I like it.

I particularly like the bathroom. I think the size of it's brilliant.

The walk-in shower works really well, as well as having a bath.

I think that's a real positive future.

The estate agents reckon the flat could sell

for between £60,000 and £65,000,

which would mean a profit, before tax and expenses,

of between £12,700 and £17,700.

But this was always going to be for the rental market

and, as you can probably see, they already have a tenant.

Will the experts think the rent the couple are getting is about right?

I think if this property was placed on the market unfurnished

then it should be put on at £395 per calendar month.

I think this property would achieve

£450 per calendar month on the rental market.

We're getting 400 and we are very happy. We've got a good tenant.

A rental income of £400 per month

works out as a yield of just over 10%,

which is very healthy indeed.

So, what's on the cards for these two in the future?

Another auction property?

-Oh, definitely. Yes.

-Definitely.

You have to do your research,

as we've learned from Homes Under The Hammer,

you have to do your research on property before you buy,

but, yes, we'll definitely go back to auctions.

That's it for today's show.

Join us next time for more thrills and spills

-here on Homes Under The Hammer.

-We'll see you soon.

-Goodbye.

Subtitles by Red Bee Media Ltd