Episode 4 Homes Under the Hammer

Martin and I have been dealing in property for many years now,

and we've both witnessed plenty of fluctuations in the market.

We certainly have. But through it all, we've been convinced of one thing -

you can pick up some really interesting buys at the auctions.

Now, Lucy and I have always been fascinated about

-buying property at auction.

-Yes.

The speed, the excitement, and the potential to bag a bargain are all very seductive.

So let's see what got our buyers hot under the collar on today's programme.

This Devon bungalow inspires me to think outside the box.

Here's a radical idea - knock it down and build something else in its place.

This southeast London end terrace starts off promisingly...

But this is where it goes all wrong.

Argh! Look at that!

Argh!

Calm down, Lucy! This three-bed semi in Cumbria has great potential,

but might not be for everyone.

If you're looking for show-house condition, you're going to be disappointed.

All of these properties have been sold at auction,

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

Sold to you, sir.

Today I'm heading out west

to the beautiful countryside of South Devon.

I reckon we've found a little bit of paradise here,

just outside the historic village of Clyst St Mary.

Well, if it's views you're after,

then the property that was up for auction is a real gem.

Just imagine waking up in the mornings and looking out at that.

Let's take a look.

# This could be heaven

# This could be heaven... #

It's hard to believe we're only three miles from Exeter,

but in the middle of all this green is the property I've come to see.

This is it. Three-bedroom bungalow, built probably 1930s

and a guide price of £285,000.

Location you can't knock. Let's see what the inside's like.

# This could be heaven

# This could be heaven

# This could be heaven

# This could be heaven for everyone... #

It looks big from the outside - what about inside?

Well, actually, nice big entrance hall. We like that.

Gives immediately a feeling of space.

First bedroom there. You've got a bathroom and a separate loo there.

Off to more parts of the bungalow.

Got through to what I suppose should be the heart of the home - the kitchen.

Obviously, very tired, very dated units,

but not a bad-sized space.

However, you know what? You forgive it all when you look out the window,

because there you go - you're doing your washing-up...

..you've got the beautiful, beautiful Devon countryside

in front of you.

Ah, priceless!

# Ooh, heaven is a place on earth... #

Stunning views aside, what else do you get for your money here?

Well, there are three good-sized bedrooms,

albeit a bit on the damp side.

Bathroom is perhaps rather too avocado for some,

but a new white suite would, of course, transform that in no time at all.

And the living room is huge.

You've just got to see past those swirly carpets.

So this is the living room. Nice touch - it's got a real fire in here.

I don't particularly like the surround, but get rid of that

and it would be the focal point, which is good to see.

Big windows, making the most of the views out onto the garden.

In this case, a little pond there with fish, which is good.

This, I guess, would be the main area where you spent your time,

with your TV and your sofa,

not least because, of course, you've got a set of double doors

out onto the patio and onwards to that countryside.

Fantastic. I mean, all in all...

it's a big bungalow.

I like it.

# That's the way, uh-huh, uh-huh I like it

# Uh-huh, uh-huh... #

Outside, things get even better.

The garden is a great size, and not overlooked by anyone.

Given the size of the grounds and the beautiful location,

is this bungalow really living up to its full potential?

# That's the way, uh-huh, uh-huh I like it... #

Now, the property has been extended twice since it was first built,

but I still don't think it's making the use of the plot that it sits on.

So, what are the options?

Well, you could go up - put another storey on. That'd be nice.

Maybe even have your living accommodation up there to make the most of the view.

Failing that, dormer windows, perhaps,

or - here's a radical idea -

knock it down and build something else in its place.

Now that may sound a bit extreme,

but, in the long term, it may well be a more cost-effective approach.

Whatever you do, you've got to get the approval of the planners first.

So, two real options here -

either spruce up the existing

or take a more dramatic approach and start knocking things about.

We asked a local property expert

for his thoughts on the bungalow.

The property seems to have just plus points. It's got the space,

it's got scope for upwards and sideways extension,

the land has graphic potential

to landscape it further

and really accentuate the views you have all around.

A man after my own heart!

Bearing in mind the auction guide price of £285,000,

once renovated, what does he think this property could sell for?

If the property is refurbished, then it could fetch in the region of £425,000.

However, if you have upwards and sideways extension,

that could take it to a figure much closer to £500,000.

What about rental income?

Detached properties with space

demand quite high prices in this area.

I'd be disappointed if you didn't achieve somewhere in the region of £1,000 per calendar month.

So, what do you think? Is this the kind of place you'd like to buy?

It certainly has a lot going for it.

The grounds...

The property itself - well, in need of updating,

but good space. Most of all,

this location. Well, you can't beat it, really, can you?

Let's see who fell in love with it - I'm sure that happened -

when it went under the hammer.

Three-bedroom detached bungalow, good-sized garden and grounds.

So who's going to say to us 250?

Thank you, sir. 250.

Well done. 250. At 250.

Your 250, sir. I'm now going there for 252.

255.

258, sir?

258.

260, madam. 260.

262?

262.

264.

It looked as though this auction was going to be a two-horse race,

as the bidding climbed up over the £285,000 guide price.

306 I've got.

At 308. 308.

310.

310...312.

314.

314.

316.

At 316 we've got stood in the doorway.

318.

318.

318.

318. Front row has it.

At 318... You sure and done? Here it is.

Front row at 318.

And done.

Sir, congratulations. Well done.

The successful bid of £318,000

came from electrician Malcolm.

His wife, care agency owner Chris, looks chuffed to bits.

# If I'm dreaming

# Just let me dream... #

So, just what have they got planned

for all this space?

I met up with them back at the bungalow to find out.

Malcolm, Chris, congratulations.

You look really excited.

So excited! Really excited.

So, Malcolm, why did you want to buy it?

Basically, for the views

and, hopefully, the peace and quiet that's up here.

And just...the space.

So this is going to be your house, then, is it?

It'll be our dream home.

It's what we've always wanted.

Somewhere where there's views

and somewhere where we're on our own,

we're not overlooked, and somewhere where the grandchildren can come and play in the garden.

It's just going to be wonderful.

# I feel so happy... #

This may be their dream home,

but that's not to say that Malcolm and Chris

are just going to sit back and do nothing to it.

Far from it.

Really, what we want to do is take the roof completely off

and put another floor on

and then have the living area upstairs,

so we'd have the living room and the kitchen and the dining room upstairs

and then the bedrooms downstairs.

Because it's crying out to have something done

to maximise the view, isn't it?

-Wow!

-So that's the big plan. Whether we get to the big plan, we don't know!

We may have to tone it down a little bit.

But that's the dream.

So have you made provisional enquiries with the planning office yet?

We went to the planning department last week

and had a chat with a guy there

and he was quite encouraging.

Obviously wouldn't commit to anything.

So we're going to do some drawings and take photographs, take them back to him

and see what he thinks.

And then if they say there's a possibility, then we'll go the full whack.

So you mooted the idea of putting an entire new floor on, a lot of glass on,

and he didn't say no to that?

No, he said just to do some rough drawings

and they would have a look at that

before we got proper plans drawn up.

And then they would give us some idea of whether it would be OK.

# Dreams can come true... #

That really was a smart move to talk to the planning office early on.

It's a great idea to get them on side.

So what kind of budget have Malcolm and Chris got to play with?

Well, we did say we can't really go above £100,000.

Which we feel is a reasonable amount of money.

But Malcolm will do quite a lot of the work himself.

Not the big-boy stuff, but he'll do quite a lot of the work himself.

Malcolm's an electrician by trade,

but has cut his teeth on renovation work by doing up their current home,

as well as a property they bought in France.

So, what's their timescale for this project?

We think probably about 12 months.

That's what we'd like, to have it all done in 12 months.

And then once you've done it,

um...

do you think you're going to live in it for a while?

-Oh, for ever.

-Yeah.

-Definitely.

-Unless something else comes along!

-No, you're not doing any more!

This is going to be our dream home.

And we're getting too old to be doing all this any more.

I have spoken!

Great. Well, I'm delighted for you.

-Congratulations.

-Thank you.

-Good luck with the plans.

We look forward to seeing you in 12 months' time, maybe, to see how it's all turned out.

Yeah. Thank you.

Well, Chris and Malcolm clearly delighted to have found their dream home.

And who can blame them?

Of course, a lot rests on getting that second storey,

and although they've had favourable murmurings

from the planners, you just never know

until it's signed on the dotted line.

Find out how they get on later in the show.

I'm in southeast London, in an area called West Norwood.

It benefits from its own mainline train station,

from which trains can whisk you to the City

in just over 20 minutes,

and if you're not rushing off to work,

well, you can kick back and enjoy this lovely green park.

Just around the corner from Norwood Park,

and I'm here to see today's auction property.

It's an end-of-terrace house, it's got three bedrooms,

and the guide was set at £185,000.

It certainly looks charming from where I'm standing.

I'm going to take a closer inspection.

You can see its 1930s credentials straight away.

# It don't mean a thing

# If you ain't got that swing... #

Elegant curved bay windows at the front,

along with gorgeous period detailing

and the original door, make me hopeful that there'll be plenty of features to admire here.

What a lovely hallway. I do like space when you walk into a property.

It really does feel so welcoming.

Obviously, it needs a bit of updating,

but I love this reception room.

High ceilings, good proportions. You've got the original stained-glass windows,

which are beautiful.

You know, there are so many options with these types of houses.

You can either knock through this wall and create one big space,

but I actually think that would be too big.

You could knock through this room,

because the kitchen is so disappointing the other side of that wall.

You could create a nice, big open-plan kitchen/diner.

But this is where it goes all wrong.

Look at that!

Argh!

That is a horror of a 1970s lean-to that's been thrown up.

# Hate is a strong word

# But I really, really, really don't like you... #

I am not liking what I see here.

This is an ugly structure, and it looks more like...

a greenhouse! I think it needs to be knocked down.

It's one way of solving that small kitchen issue.

And if you keep the extension within certain measurements,

you don't have to apply for planning permission,

because you will be within your permitted development rights.

This is an attached property, and so you can only come out by three metres,

but if you had a detached house, you could extend by four metres.

I think a lovely kitchen extension is what's needed here.

It would really make this house work.

# This is what you've got to do

# You've got to tear it all down

# Down, down, down

# Tear it all down... #

This structure has had it anyway,

and probably isn't worth repairing.

As for that possible extension, I would always recommend talking to your local planning department,

as interpretations on development rights can vary from council to council.

It's better to be safe than sorry,

but this is a great garden space.

How lovely would it be to bring the outdoors in?

Upstairs, you've got three good-sized bedrooms,

but you have the room to create a fourth

if you wanted to...

up there in the loft.

Now, adding an extra bedroom is the quickest way to add value to a property,

so if I took this on, it'd be the first thing I would do.

Like the single-storey extension outside,

you won't have to apply for planning permission

if you keep to a strict criteria

and you don't exceed certain measurements.

And then you can be within your permitted development rights.

This is a semi-detached house, so you are allowed 50 cubic metres of additional roof space.

You'll have to apply for building regs to make it a liveable place.

If you fail to get those, you will not be able to legally call it a bedroom.

It's not often you find this many ways to add value,

but it's all seemingly possible here,

and there are plenty of opportunities for improvement upstairs already.

At the front of the property, the master bedroom has some outsize wardrobes,

which really ought to go.

But there are still plenty of original features,

like the cornice and the windows.

Also at the front is a simple single bedroom,

with a not-so-desirable 1930s feature -

the electrical wiring.

The bathroom and loo are in separate places,

and some replastering has been started.

You might even be able to save a few of the original fixtures and fittings in here.

The third bedroom is a double and is at the back.

So what does the local estate agent make of this house in West Norwood,

guided at £185,000?

The real return on the property would be to develop it

and make it bigger - more square footage, more bedrooms

and on the ground floor, a bigger kitchen.

I think you'd see some good returns there.

However, depending on what the property's purchased at,

you may only see those returns over a period of time, unless you're purchasing it at a really good price.

# It ain't what you do It's the way that you do it

# That's what gets results... #

Let's discuss figures and options.

As a three-bed, refurbished, I think you'd put it on the market

for between £350,000 and £375,000.

With a fourth bedroom and loft conversion,

I believe you'd be looking to sell it on

anywhere between £425,000 and £450,000.

If this property was refurbished with rental in mind,

how might the figures stack up?

In terms of rental, as a three-bed, £1,750 per calendar month.

As a four-bed, between £2,000 per calendar month and £2,500 per calendar month.

This is an interesting house - a good one to go for in my opinion,

because there's room to create a fourth bedroom in the loft

and there's plenty of space for a single-storey extension out the back as well.

Those additions will really add value here.

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

Lot 19. '30s house, looks like.

I don't know. It looks... 250?

250? If not, you tell me.

200, at the back.

200.

205 anywhere?

Got 200 at the back. Sorry, 205.

210.

215.

220.

225.

225 on my right.

Looking for 226.

226.

227.

228.

229.

230.

231.

232.

233.

234. 235.

236.

240. 241.

242.

243.

244.

245.

246?

245, sitting down.

Another spot, 246.

247.

248.

249.

250. 251?

250, sitting down.

First time...second time...

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

Sold, 250.

The successful bid of £250,000 came from Neil.

He recently gave up his job project-managing home automation and entertainment systems

to become a full-time dad.

# Daddy cool, daddy cool

# Cool, daddy, cool

# Daddy cool, daddy cool... #

We joined him at the 1930s house, along with his dad, Sam.

They'll be refurbishing it together.

-Sam and Neil, congratulations.

-Thank you.

-Thank you.

-You must be thrilled to bits you've got this house.

-Absolutely.

-We are.

It was the first one that we wanted to get in the auction.

So were you going for a few of them?

Yes, we had a look at a few on that day

and we travelled around all over South London looking at houses, and this was the last one we saw.

So we came here. It was the end of the day and we were feeling a bit jaded.

We walked in, all of us - me and my dad and my mum.

We just thought, "Wow! This place is the one."

So, Sam, what was it you liked so much about this house?

What I liked about this house was the fact that it had a lot of potential.

Neil, this is his first project.

And I wanted it to have not too many problems.

And...I think I'll bring to bear my experience,

not in property, but more in project management.

I have worked for a company for 48 years

before I retired four months ago

and for the last 25 years, I was project manager.

# Rock, cool daddy... #

48 years with the same company? That is amazing.

This renovation is on a much smaller scale

than the multi-million-pound projects that Sam used to work on,

but it'll keep him busy in his retirement.

Neil was also a project manager,

but had to put the brakes on his career.

About 15 months ago, my first daughter was born, Kirsty.

-Congratulations!

-Thank you very much.

And at the time, me and my wife discussed how we were going to proceed with both our careers,

and the option that really came to fruition was that I would give up work

and she would continue after her maternity leave was over.

So I've been a stay-at-home dad for the last year and a bit.

And how is that?

It was great. I'm still really enjoying it, to be honest.

But given that we both decided that eventually I would go back to work and do something,

coupled with the fact that we had a property that we were thinking of selling,

we thought, after discussing it with my parents, that we'd buy a place in London

and become property developers.

Meanwhile, Neil's wife Jennifer will continue working in human resources for the Premier League,

while Neil juggles looking after their daughter Kirsty

and overseeing the renovation with his dad.

How are you going to work this as a team, as a joint effort?

I think it'll be a case of I'll be the hands-on guy on site

with the people we employ to do the work, as required.

Dad will be there to provide an ear

to listen to any problems that we have and provide guidance and advice.

And also to help out on-site as well, with his experience.

You don't say no to that sort of experience, really.

Absolutely. Now, are you going to be getting the builders together?

Who's going to sort and do the day-to-day running of the whole project?

Well, it'll have to be a joint effort.

The advantage I've got is that having retired from my work,

I can come here first thing in the morning,

whereas Neil has got to look after Kirsty.

So that's where we dovetail.

So how's it going to work as a father and son team?

I mean, you're a project manager too. Do you think you'll agree on the same sort of thing?

I think, fundamentally, yes.

Of course there will be disagreements along the way,

but that happens in any walk of life.

The idea is to compromise where you need to, and listen to other people's ideas.

So I think it'll work really well.

What is the plan with the property?

How are you going to turn this around?

Well, the plan was to do some of the things that the neighbours have done.

A lot of houses around here have had loft conversions done,

they've done single-storey extensions at the back,

so the idea is to pretty much follow that template,

but to try and add some wow factor to it.

Initially, we will do the loft extension,

convert it to a four-bedroom house,

and add a second bathroom up there.

And then, on the ground floor, we'll take out the back wall,

we'll knock through the wall between the existing kitchen and the rear reception room,

and we'll make it a large living/dining area.

How exciting. That is really what this house needs.

So how much will something like that cost you guys?

Have you had time to work out a budget?

We have, and we've allocated about £60,000 to this,

with a contingency on top of about £5,000 to £10,000

in case there are any unforeseen problems that we run into.

What's the timescale? How long is it going to take you?

Well, as project managers know,

everything's got to be planned meticulously, but we're hoping within six months.

That's the plan.

And what about applying for planning permission?

Are you going to be going further than your permitted development rights?

We thought we would initially, but from speaking to some of the neighbours,

we found out that people have tried to get for example, two-storey extensions on the back

and they've been refused point blank.

So that was nipped in the bud from an early stage.

So I think it will be pretty much permitted development on this one.

Good luck with this project, and make sure you stick to the budget.

-Thank you very much, Lucy.

-Sam, Neil, thank you. Good luck.

So Neil and Sam have got big plans for this end-of-terrace.

If it goes their way, we'll come back to see a four-bedroom house.

How will they get on with the planners,

and will they be able to keep to their budgets?

You can find out later in the programme.

Coming up, this three-bed semi in Cumbria

needs work inside and out.

Sort out the back garden, and it'll make a huge difference.

In southeast London, Neil explains the thinking behind his renovation.

This is the room that we wanted to have the wow factor in.

People would walk into the house and go, "This is the house for me."

But first, Chris and Malcolm's new home in Devon gets the thumbs-up.

Now that we've actually moved in,

it's absolutely fantastic.

Back now to the beautiful Devon countryside near Exeter

and this three-bedroom bungalow in a truly stunning location.

Husband and wife team Malcolm and Chris

bought it at auction for £318,000.

The couple were all for making this their forever home

and they weren't short of ambitious ideas.

Really, what we want to do is take the roof completely off

and put another floor on, so we'd have the living room and the kitchen and the dining room upstairs

and then the bedrooms downstairs.

-Wow!

-Because it's crying out to have something done to maximise the view, isn't it?

Electrician Malcolm was planning to roll up his sleeves and help out,

but there was planning permission to sort out before any builders could get to work.

All the same, Malcolm and Chris set themselves a £100,000 budget

and a timescale of just 12 months to transform the place.

Well, almost exactly three years after our first visit,

we're back to see what they've achieved.

One thing's for sure...

the couple need look no further for their dream home.

The formerly tired, damp bungalow

is almost unrecognisable,

with its New-England-style cladding

and raised roof,

plus a sizeable and beautiful new kitchen extension.

It's been quite a journey, as you can imagine.

It's been quite stressful at times.

We've had lots of fun.

But now that we've actually moved in,

it's absolutely fantastic.

And it's just lovely.

They decided not to undergo the expense

and upheaval of creating an upside-down house

and I think it was a good call.

The downstairs is looking fabulous,

with three bedrooms, a bathroom, a massive sitting room

and an even more ginormous kitchen extension,

complete with a rather intriguing feature.

The extended kitchen now incorporates the old water well,

which was just outside the old back door.

And, yes, that IS toughened glass over the top of the well!

Phew!

When the builders were bricking up,

one of the brickies dropped his trowel

in the bottom of the well.

And they tried to fish it out with some magnets,

but that didn't work,

so, in the end, I actually went down the well

and I managed to retrieve that for him,

which he was quite pleased about.

It was his favourite trowel!

# Well, well, well... #

But that's not all, folks.

After a well-earned rest, Malcolm and Chris can tackle upstairs.

# Well, well, well... #

There's room up here to turn the bungalow into a five-bedroom, three-bathroom family home.

And the views from upstairs are...

..well, breath-taking.

I just can't wait until we get our bedroom finished upstairs

and that we wake up in the morning

and can see that view.

We just need to cut the hedges down a little bit.

Another job!

Yeah!

In fact, Malcolm's supposed to be retired,

but he's done all the wiring, some of the plumbing

and generally put a whole lot of work into creating their dream home.

I didn't think Malc would be able to do it all by himself,

but he's, um...he...

despite his age...

..he's done really well, and it just shows that there's life in the old dog yet.

This has been a true labour of love for Malcolm and Chris.

A year in the planning, then two years of building,

most of which the couple spent in a static caravan on site,

through the harshest winter for 100 years, no less.

But if their timescale has slipped from one to three years so far,

what about their £100,000 budget?

We're just over the £100,000 - about £103,000,

so we're really pleased with that.

But of course, a lot of that is down to Malc,

because we haven't had to pay any labour costs...

-Yet!

-..for your work.

Well, even if Malcolm hasn't taken a wage for his efforts,

they've done really well to keep a tight rein on the budget.

On top of their purchase price, their £103,000 spend

brings the total outlay to date to £421,000.

They estimate another £30,000 to complete the upstairs,

which will make a projected total outlay of £451,000.

We asked two local property experts to take a look at the place now.

My overall impressions are it's an absolutely amazing job

what the couple have done. It really is truly a credit to themselves.

They've created a wonderful family home.

I feel that the property's been done to a very high standard.

There's still a few things that need to be completed -

for example, the upstairs, but once that's done,

I feel that the property will be a very nice place to live.

Chris and Malcolm have built this as their dream home,

to enjoy with their children and grandchildren.

But if they sold it on in its current state,

without spending on the upstairs,

what do the experts think it would fetch?

It's hard to put a value on this property,

as it is so unique and different to others that have sold in the area.

But if I was to put it on the market in its current condition,

I'd be looking to put it on for £425,000.

If I was to place the property on the market as it stands today,

you could probably expect to fetch somewhere in the region of £500,000 to £550,000.

Well, I think the first one's rubbish!

But the second one, we're really pleased with that, aren't we, Malc?

-Yeah, would be.

-Yeah.

No, that's really good.

Quite a difference of opinion from the experts there,

but those valuations mean that Chris and Malcolm

could make a pre-tax profit

somewhere between £4,000 and £129,000 if they sold today.

And what about the potential rental income?

If the property was to be placed on the rental market,

once the upstairs is converted to a high standard,

you could expect to achieve probably £1,400 to £1,600 per calendar month.

If I was looking to put this property to let,

I'd want it completed,

but I feel it would then achieve £1,700 per calendar month.

-I'm amazed.

-Crumbs, we'd better move in some lodgers, then!

I don't think so!

If they spent £30,000 on the upstairs

and rented the house out,

they could be looking at a yield of between 3% and 4.5%.

But I don't see them doing that...

certainly not in a month of sunsets like this.

This is Whitehaven,

a former mining town and port on the Cumbrian coast,

with an intriguing claim to fame.

Whitehaven is regarded as one of the most complete examples

of planned Georgian architecture in the world,

and many historians believe that this very place

was the blueprint for the grid system

of New York city.

No, I'm not taking any liberties.

HE CHUCKLES

A big claim indeed.

But Whitehaven has benefited from a wave of regeneration recently.

So, will today's property, situated in the Greenbank area of the town,

ride the crest of that wave?

Well, just outside the town centre,

with some lovely views over the Lake District hills,

is the property I'm here to see.

Now, it has seen better days,

but then, the guide price was just £25,000,

which, for a three-bedroom semi, has go to be good value,

in anybody's book.

The properties here were built by the local authority,

with some of them now in private ownership.

That £25,000 guide price is seriously tempting

for a first-time buyer or an investor.

Spruce up the front garden,

and you've got instant kerb appeal,

with a fantastic outlook.

So, what have we got?

A nice elevated position, making the most of those views.

Through the door, stairs up to the bedrooms,

and into your front living room.

Um...nice big windows to make the most of it

and an open fire, which is good.

Now, it's not in that brilliant a state, as I said, but...

I'm not seeing anything TOO horrendous at the moment.

Large living room there,

through to your kitchen.

It's a fairly standard layout, and, as you can see,

the kitchen is in a bit of a state.

But I expected that, and for the money, who cares?

It's a good start.

There are definitely damp patches in here,

but I think the way forward is to give the whole kitchen the heave-ho

and see just what you're dealing with.

And I'd get the electrics looked over while I was at it.

The sitting room is a good size

and the open fire could be a great focal point.

But the lack of radiators in here makes me think

that central heating might have to be on the to-do list.

Onwards and upwards.

Well, up here, again, if you're looking for show-house condition,

you are going to be disappointed.

But what I'm seeing, I like.

You've got three decent-sized bedrooms

and most importantly, you've got that bathroom upstairs.

It all needs sorting out,

but really, the intrinsics are incredibly strong here.

Good one!

Now, feature wallpaper in itself is fine,

but, especially if you're looking to let the property,

it might be best to stick to plainer, neutral tones.

The three bedrooms are a decent size, though,

and we do like to see the bathroom upstairs, don't we?

Out the kitchen door at the back, you do unearth

a bit of a problem at the back here.

This is actually like an infill between two properties,

and it is actually a flying freehold,

which one of the bedrooms is situated in,

so, as usual with those kind of things, you do need to have it checked out by your solicitor.

It's probably not a problem, but you certainly want to know the legalities or otherwise of that.

And while I'm here, it doesn't look like it's in that brilliant condition.

Some time spent in the back would definitely pay dividends.

Lots of breeze blocks and mess.

Sort this out and get a nice bit of terracing, sort out the back garden,

and it would make a huge difference,

because one of the great things you've got is open space at the back,

which is lovely.

With a bit of hard graft, this could be a lovely family garden,

but do make sure your solicitor is aware

of any flying freehold situation,

where you property extends over the neighbour's land.

It's not that uncommon, and usually you can take out

an insurance policy against any potential problems.

So, it's a good-sized house

at an amazingly low guide price of just £25,000.

But what does a local property expert make of it?

This property is an ideal starter home

or for a buy-to-let investor.

It is in need of a full refurbishment.

But we've got potential to make into a nice family home.

Once done up, what does she think that the place might fetch on the resale market?

If this property was brought up to modern living standards,

we could market this property in the region of £60,000.

Wow! Keep your eye on the budget and there's a healthy profit to be made here.

And what about the rental market?

If this property was brought up to reasonable standards,

we could be looking in the region of £350 per calendar month for rental income.

So, a good one to go for?

Well, I think so, but it all comes down to the price that was paid at the auction.

So did the person who bought it score themselves a bull's-eye?

Let's find out.

Lot 23, a three-bedroom semi-detached house.

A lot of property, £25,000.

20, then?

£20,000. Let's see it... 20 I've got.

At £20,000.

Take it in ones. At 20 I'm bid.

At £20,000. 21, seated.

22, may I say?

23.

24.

25.

26?

Shake of the head.

With you at 25.

At £25,000, then.

We're here to sell, ladies and gentlemen. It's in the room, selling this today.

At £25,000...

I'll take a half.

250.

At £25,000 for the first time.

At £25,000 for the second time...

At £25,000, then, selling. Are we all done, all out?

Sold to you, sir. Well done.

And it was local lad Gaz

who snapped this one up for bang on the £25,000 guide price.

He's just taken voluntary redundancy

from his job as a building surveyor,

freeing him up to make property development his career.

Gaz, great to meet you.

-Morning.

-Congratulations.

-Thanks.

-Tell me why you wanted to buy this place.

Um, I had a shortlist of three or four properties at the auction.

The ones that came up before this one came up a bit. They went beyond my budget.

-Right.

-And this one started off below my budget,

so I chipped in, and there you go. Luckily enough... I'm saying "luckily" - I think so!

-Yeah.

-I got this one.

I'd say it was lucky.

So why this area?

It was driven by price, really.

Where I live, I drew a circle round the area,

and went, "I'm prepared to travel that far to work."

-How big?

-Sort of 30, 40 miles.

But you know, price led, so...

Yeah, so here it is. I'm going to... I'm committed now, so this is it.

-This is what I'm taking on.

-Sure.

And why did you like this particular one?

Nice simple formula - three-bedroom,

went for the right money.

Obviously, again, budget's OK.

I think it could make a decent little modest family home.

-Mmm. It's nice. Solid.

-Yeah.

I think it's OK.

And what's the plan for it?

Is it to do it up and sell it on,

or to do it up and rent it out?

Ideally, do it up, sell it on.

If the market's not right, then I'll quite happily look at a more long-term kind of thing

and maybe look at the rental market.

So what do you do at the moment? What's your job?

-I'm a building surveyor.

-OK!

-Well, that's very convenient.

-Let's hope so.

But I've finished being a building surveyor now.

-I literally finished last week.

-Wow!

So I'm committed to this now.

-OK, so you can work on it full-time.

-That's the idea.

But what great experience to have getting into this sort of career, or second career that you've chosen.

Yeah, well, I'm quite handy as well,

-so, hopefully, being hands-on and having a surveying background...

-Yeah.

-Hopefully it comes together and works.

-Ideal combination.

A hands-on surveyor, eh?

Sounds like a winning combination to me.

And with useful contacts in the building trade,

there's a strong chance this could be something of a walk in the park for Gaz.

Talk me through exactly, then, what you're going to do.

The first thing I'll do is strip out the carpets, strip this panelling off the walls.

There's some panelling up the stairs - take that out, strip the kitchen out.

I'll get my plumber and my electrician over,

work out how I'm going to arrange the central heating.

And then, once everything's stripped out,

-start putting it back together.

-Right.

Decorate it outside, attend to anything else that seems to be a problem on the outside,

redo the garden, tidy up the garden at the front,

-make it as presentable as I can within my budget.

-Right.

What's the budget?

Um, I've got a maximum and a minimum I'm kind of working to.

I think it's going to take at least £10,000

to get it to where I want to,

-but if it goes up to 15, I think the numbers still make sense.

-OK.

Gaz has a three-month timescale to get the place shipshape.

But before he starts ripping things out,

he's off on holiday to Sicily with his wife, Sophie.

But it ain't going to be no sitting-on-the-beach kind of holiday.

Not with Gaz's hobby of choice...

When you're not doing this, what do you do in your spare time?

-Um, spare time mostly taken up with climbing.

-Climbing?

-Yeah.

On of the reasons for living in the Lake District in the first place, to be honest with you.

Oh, wow! And round here, where are the best climbs?

In all the valleys, down Borrowdale Valley.

There's a whole history of climbing that's gone on in this area.

-Yeah.

-You could keep going for ever, climbing here.

-Usually attached by a rope? None of this silly clinging by your fingernails stuff?

-Yeah,

well, we do try to play as safe as we can.

Good. Well, listen,

congratulations. Good luck with it.

-Thank you very much.

-Look forward to seeing how you get on.

-OK!

Well, from climbing in the Lake District

to climbing the property ladder here.

I think Gaz hasn't got a property that's too ropey.

How will he get on sorting it out?

Enough climbing puns for now!

You can find out later in the show.

Well, renovating property can sometimes be a very stressful and time-consuming process.

Especially if things don't go according to plan.

So, have today's buyers' dreams made it off the drawing board?

Let's find out.

We've come back to Norwood in South London...

# It don't mean a thing

# If you ain't got that swing... #

..to see how father and son Sam and Neil got on with that 1930s house.

It was ripe for development.

Although there were already three bedrooms, there was an opportunity to expand into the loft

to add a fourth.

And the dinky kitchen could be knocked through into the dining room.

Then there was that 1970s conservatory,

which had clearly outstayed its welcome.

A lot of houses round here have had loft conversions done.

They've done single-storey extensions at the back.

So the idea is to pretty much follow that template,

but to try and add some wow factor to it.

They bought the house for £250,000

and planned to spend about 60 grand on it,

with up to £10,000 as a contingency.

We're back, nearly a whole year later,

to see if they've bust the budget

as well as the six-month timeframe they'd set.

# Oh, life could be a dream

# If I could take you up in paradise up above

# If you will tell me I'm the only one that you love

# Life could be a dream, sweetheart... #

The tired old semi-detached house

is almost unrecognisable.

It's bigger, brighter and now it's finally beautiful.

In the kitchen, we've taken down the external wall that ran over there.

We've put in a new steel beam

to allow us to extend through to the back.

We've put in this bi-fold door,

solid oak flooring.

We've added in some built-in appliances

to a very up-to-date, modern kitchen

with high-gloss units.

And the bit I really like is the black quartz worktop,

which I think really sets off the whole room.

# Life could be a dream, sweetheart... #

It may have taken twice as long as they'd planned,

but the father and son team even managed to get planning permission

to build a higher rear extension,

making the downstairs space work.

Absolutely it was worth applying for planning permission.

The planning permission allowed us

to make sure the extension was nice and airy.

It has great appeal, I think, to the family market in particular.

It just shows off the house to its best potential.

But Neil's dad, Sam, took a little more persuading.

We had a few heated words.

But he convinced me that,

because we're going to go for a top-quality conversion,

that we should splash out for a very good quality kitchen.

So he really went to town.

I believe it was worth spending a lot of money on the kitchen,

because this is the main focal point of the house.

This is the room that we wanted to have the wow factor in.

People would walk into the house and go, "This is the house for me, because I love this space."

As well as the huge new kitchen/diner,

Neil and Sam have also added even more space in the loft.

But that was not without its problems either.

I think the loft conversion is probably the best part of the house.

Unfortunately, we started doing this when the weather was really bad.

Weather has been, I suppose, number one enemy

and a challenge.

I think what it does do also, like all challenges do,

it makes you dig deep down

to deal with the challenge.

And I think it makes you learn more.

If everything went smooth, there's no learning experience.

# Cos my daddy knows best

# Oh-oh, my daddy knows best now... #

Working with my father has been challenging at times,

but overall, it's been fantastic.

He's got so much experience, so much knowledge of things.

He's been there to rely on, to help out with managing the guys on site,

giving advice to me and to them.

I think we've dovetailed together brilliantly on this project.

Neil's time at the University of Dad

seems to have done him and the house the power of good.

The unused loft space has been transformed

into a fabulous double bedroom with its own en suite.

And the three existing bedrooms have been replastered, rewired

and restored to life.

The formerly separate toilet and bathroom have been joined together

to make a brand-new spacious family bathroom.

# She's crazy like a fool

# What about it, Daddy Cool... #

With such a large and extensive renovation taking twice as long as they'd estimated,

how has the original 60 grand budget fared?

Did they have to dig into that ten grand contingency?

I think we are just about a shade over 80.

But we're not too unhappy about it,

because we made a conscious decision to upgrade the spec.

Neil and Sam bought the property for £250,000

and have spent £80,000 on refurbishment,

bringing their total investment to £330,000.

So, will it be a family fortune

or a family fortunate to break even?

We asked two local estate agents

for their thoughts.

First, the one who visited the house before the renovation.

My first impressions coming back to the property

is fantastic. It's a totally different property.

I wouldn't recognise it from when I first saw it. It's a really good job.

I think undertaking the extension was a good idea.

It's made it a much lighter

and airier environment.

The only consideration will be the cost to them to have done that

and whether or not they will get that back.

Good question. So if this house was put up for sale,

what price could they expect to achieve?

In the present market, I would expect this property to achieve

in the region of £425,000.

I would expect to achieve somewhere between

£425,000 to maybe £435,000.

That would give Neil and Sam a profit

of between £95,000 and £105,000 before tax and expenses.

-Very happy.

-Very happy indeed.

If we can realise that profit, that would be excellent.

Since filming, Neil has accepted an offer on the property

of £460,000. Nice one, Neil!

Back now to Whitehaven in Cumbria

and this three-bed semi, which hands-on former surveyor Gaz

bought at auction for £25,000.

He was all for ripping everything out and starting from scratch here.

He had a £10,000 to £15,000 budget

and a three-month timescale to do just that.

That's when he wasn't indulging in his favourite outdoor pursuit.

-My spare time's mostly taken up with climbing.

-Climbing?

-Yeah.

-Usually attached by a rope? None of this silly clinging by your fingernails stuff?

-Yeah,

well, we do try to play as safe as we can.

But has this project been trickier than scaling the north face of the Eiger,

or has Gaz jazzed this one up with pizzazz?

Seven months after out first visit,

we're back to find out.

Ah, now, this is NOT what you think.

We'll talk about the outside in a minute,

but what's gone on inside the property is far more impressive.

# One more mountain left to climb

# Just one more mountain left to climb... #

The outside may not be finished,

but the inside is looking pretty much there.

Gaz really has done himself proud.

I started with pretty much gut everything.

Quick summary, I guess, is...

new electrics, new gas...

new bathroom,

new kitchen, carpets...

Everything's brand new.

And the biggest transformation?

That has to be the kitchen,

which is looking fabulous.

OK, so I guess the biggest change in here

is in this corner here.

There was an airing cupboard with an old copper cylinder.

I've taken that out, to open up some room.

The ceiling...

I've taken it down and put a new ceiling up, replastered the walls.

I think it's come together quite well.

Um, yeah, with a careful eye on the budget

and trying to make something more than just the basics.

It's worked out very well.

The upstairs is looking great too,

and those neutral tones make the rooms look so much bigger.

As for the outside, it turns out the local council has undertaken a scheme

to improve the insulation of its housing stock on the street.

Gaz has paid a small contribution towards it.

So, in a couple of weeks, his house will have brand-new super insulation.

Combined with the new gas central heating,

that makes me think this will be a very cosy home.

So how long has it taken, exactly?

I've kept a record. I know I was here 128 days.

And I've done all the work myself, apart from the specialist things

that needed certification - gas and electrics.

He is over his three-month timescale,

but Gaz has done most of the work himself, so we'll let him off.

But what about his £10,000 to £15,000 budget?

Budget went pretty much bang-on.

I've kept a very accurate record.

And I've spent £13,000.

That includes fuel to get to the job, everything.

Surprisingly, it's £2,000-worth of fuel.

So something that's well worth budgeting for!

Gaz's spend of £13,000

brings his total outlay, including his purchase price, to £38,000.

We asked along two local property experts

to get their take on his work.

The changes have really impressed me.

I didn't quite expect the quality of finishings

that I've seen today, so I'm really impressed with the property.

I'm really impressed. What a transformation!

It's probably one of the biggest transformations I've seen.

That's a pretty convincing endorsement, Gaz. Congratulations!

But what do the experts think the property might fetch on the rental market?

The rental market at the moment is particularly buoyant,

and I think he could achieve in the region of

between £400 and £450 per calendar month.

I think if this property was exposed to the rental market,

I think it would achieve in the region of £425 per calendar month.

Those valuations would give Gaz a yield of between around 12% and 14%,

which is very impressive.

So what about his preferred option of the resale market?

I wasn't expecting to say this figure before I'd seen it,

but I think a figure of...

in the region of £60,000 could be achieved.

I think Gary would be looking in the region of

between £60,000 and £65,000.

I think that works out quite nicely. Yeah.

That's encouraging.

It would have been bad news if I'd missed the mark,

but that's what I would hope for. That's good!

That IS good news.

Gaz could be looking at a pre-tax profit

of between £22,000 and £27,000.

Watch and learn, dear viewer. Watch and learn!

So, what are Gaz's thoughts on the process of renovating this property?

It's been a very, very positive experience.

I've really enjoyed my daily graft.

I've got to know the neighbours so much more

than I'd anticipated.

I've got to know Whitehaven. I've done the coastal walk.

It's been a very, very good experience.

Yeah, it's been excellent.

Well, that's it for this show.

We'll see you next time with more stories from the frontline of property development.

Yes, join us then for more Homes Under The Hammer.

-We'll see you then.

-Goodbye.

-Goodbye.

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