Episode 47 Homes Under the Hammer

Welcome to the show. In today's challenging market conditions,

do you think you could hack it in the world of property?

If you do get it right, it can be an exciting and potentially lucrative

-way to earn money.

-Yes, and it can be even more rewarding

going to the auctions and buying your home under the hammer.

There are often tense moments in the auction room.

Who will make the right bid at the right time?

Yes, properties can change people's fortune for better and worse.

So, what inspired people to raise their hands at the auction

on today's show?

If you're looking to buy in Middlesex,

then you may need deep pockets.

But this house, that had a guide price of £410,000,

could, believe it or not, be a bargain.

How about a three-bed semi in South Shields?

It could have been yours for just over £30,000

and had "rental potential" written all over it.

But if it's something a little bigger you're after,

well, they don't come much larger than this -

a Victorian seafront commercial pile in Margate.

And what a buy this turns out to be!

All 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.

Today I find myself in the great outdoors,

amongst woods, trees and parkland.

It's all rather tranquil, I must say.

So, where am I?

Dartmoor, perhaps? The New Forest?

No, this is actually Bushy Park,

just outside Teddington in Greater London.

Waterloo is just 36 minutes away by train.

You've got all the facilities you could need.

You know what? It's no surprise this is a very popular place to live.

Officially in Middlesex,

this area is often considered to be part of Greater London now.

It's a fast and easy commute to the capital's centre,

but still retains a taste of the country.

Perfect!

But what comes with that is high property prices,

and this one's no exception.

So we find ourselves in green, leafy suburbs

with parkland close by, a canal and river,

shops, easy commuter distance... What more could you want?

And this is the property I'm here to see.

Three-bedroom, semi-detached, brick-built house.

The interesting thing about these houses along this street

is that during the Second World War,

they were owned by American service people.

They were subsequently sold to the police dog-handling unit,

probably because of the proximity to the park.

This is the last one that went up for auction.

The guide price was £410,000, which sounds like a lot,

but for around here, could be a bit of a bargain.

Remember, this is a highly desirable area,

which is why it's got that price tag.

So, what do you get for your money?

# What you see is what you get

# There is no more.... #

Well, um, you might be surprised!

Not actually a heck of a lot!

Downstairs here,

one really, really big living area.

Which is quite nice, because you've got big windows

out on to the garden, which is lovely.

You've also got an open fire.

But you have primarily just got this one space,

sort of living space.

Through to the kitchen,

which is actually, strangely, at the front of the property.

You might have expected it to be the other way round.

It's not a bad space, but you certainly don't get a...

designer, hand-made, bespoke kitchen

for that nearly half a million quid.

But it's not a bad size.

You do, however, get a downstairs loo.

And...that's it!

Let's see what's upstairs.

# What you see is what you get

# There is no more... #

So, upstairs, no great surprises.

Three bedrooms, as I said. Two half-decent doubles

and a single.

Bit of a nice landing area.

You've got an airing cupboard there.

Upstairs loo and bathroom, which is good.

I mean, it's...it is what it is.

It's a solid suburban house.

The only nice throwback to the history of the place

is actually this, which isn't just a cupboard.

It was actually a place that the American service people used to use

for storing their uniforms.

# Life's not what it used to be

# When I had a uniform... #

OK-cokey, so, not exactly in the state

you might expect a house priced at almost half a million quid to be,

but do remember, you're not paying for the finish here -

you're paying for its location.

One thing which I think the property is crying out for

is an extension of some sort.

You've got the garden to do it in

and I think the area definitely warrants it.

Now, permitted development would allow

a single-storey extension, a small one, out into the garden,

or maybe just a conservatory.

Either way, definitely something to consider,

because the tantalising thing of course is...

beyond that wall at the end of the garden

is what you pay the money for.

Yes, it's a wonderful addition to have Bushy Park so close.

And your own garden here is a great size, anyway.

It would be wonderful to enjoy a glass of wine on a summer's evening,

watching the sun set here.

Or if you fancy a change of scenery,

you can just nip over and sit in the park.

Good idea!

So, why is this property the price that it is,

when you could get something similar

in other parts of the country for, I guess, a tenth of the price?

Well, the answer is, it's all about location -

proximity to London, the niceness of the area,

and, you know what?

Just look around you.

But in the absence of US servicemen or local coppers,

and with today's hefty price tag,

I wonder who would buy a house in this leafy location?

We asked a property expert to stroll over

and view this semi that was guided

at £410,000

and give us his opinion of it.

Structurally, the house looks to be in reasonably good condition.

There's an awful lot of decorating to be done,

from all the texturised wallpaper to the kitchen

and both the bathrooms.

The windows are quite a low grade uPVC.

But it's got a lot of potential.

What about the valuation, then?

Once redecorated, how much could it sell on for?

If this property was fully renovated,

it could be worth up to £700,000.

What about as a rental?

Fully renovated, I think this property could rent out

for up to £2,400 per calendar month.

Well, this is one of those properties where

a bit of local knowledge could really pay off,

because although that £410,000-plus guide price

sounds like a lot,

similar properties in this street have sold for a lot more.

So let's see who spotted it when it went under the hammer.

Unfortunately, a technical hiccup - oopsy! -

means we can't show you the first chunk of the auction.

But there was a lot of interest in the property

and the bids quickly reached a whopping 530,000 quid.

530? Nearly got it.

530. 531?

531.

532.

You're close. 533, sir.

I'll only go through it once again.

532, with the lady.

First time,

second time,

third and last time...

533. That's your last go.

534.

535.

536.

537.

538.

Madam. 539?

You sure? 538, sitting down.

First time, second time...

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

Sold, 538. You got there. Well done.

Sorry, sir.

That final bid of £538,000

came from Carolyn.

Mum Carolyn has two daughters,

Hannah, who's come down to see the house today,

and younger sister Katie.

Carolyn has rented out a few properties over the years,

so let's find out what she plans to do with this one.

-Carolyn, Hannah, great to meet you both.

-You too.

-Congratulations.

-Thank you very much.

So, tell me why you wanted to buy the house.

Mostly, it's an investment.

I felt that it was quite hard for the children

to get on the housing ladder here,

so I've done it so they have part ownership

and hoping that we can rent it out

and it'll appreciate in value.

Right, OK. Tell me more about this part share - how will that work?

-I have half and the girls have a quarter each.

-OK.

-That's how it's working.

-Excellent! Well, that's good.

So, yeah, that's how it's working.

My ex-husband and I decided that's what we'd do for the girls.

Right, to get them on the housing ladder.

And what was it that attracted you to choose this one?

Is it just the location?

Um, well, in Teddington,

it's a premium to be able to park off-road

and there's off-road parking and on-road parking.

But you weren't too fazed by the price?

Were you happy with what you had to pay?

-I was delighted with what I paid!

-Oh, really?

Yes!

Great! Why?

-Because I know how much they're worth.

-Which is?

-About 600.

-Right.

So at what point were you brought into this, Hannah?

Well, I got a call from Mum, saying,

"I've just been at an auction!"

And I was like, "Sorry?" It took me a while to take in what she'd said

and then she was like, "It's a quarter yours"

and I was like, "I'm sorry?"

Have you any desire to have a property

or get into the property developing world?

Yes, just purely because it's an investment

and obviously, you can get money from it.

It's always nice to say,

"Oh, I own this and this, in various different places."

-Clearly.

-So it's good to start from a young age. Why not?

-How lucky are you?!

-Very!

That's fantastic.

Yes, Hannah and her sister have a smashing little nest egg here

and all thanks to their mum.

So, what's the plan now?

There's a lot of work to do inside.

Any thoughts on strategy, Mum?

Get the builders in!

We're not going to do it ourselves, put it that way.

But I've had a number of builders come in and give me quotes.

New kitchen, new bathroom.

Move what was the uniform room into a shower room.

And decorate throughout, really.

So what's the budget for the works?

Good question!

I haven't got all the quotes in yet from the builders,

so I don't really know.

And, obviously, I'm trying to balance

how much they want and how long they're going to take

and all of that sort of stuff,

so I don't really have a handle on it yet.

-But I've bought the kitchen and the bathroom.

-Have you?

-Excellent!

-They're being delivered.

So what's the timescale?

I'm hoping two to three months,

but we'll see. It depends on who takes the work on.

Right. And then get somebody in here presumably as soon as possible?

-Yes, hopefully.

-Good.

-Well, congratulations.

-Thank you.

-Very exciting to see how it all turns out.

-Thank you.

-I wish you well.

-Thank you very much.

So Hannah and her sister being helped on the property ladder

by mum Carolyn.

And it looks like a really good buy.

Again, that proximity to Bushy Park putting this place

in a slightly different league.

What could go wrong? Let's find out later in the show.

From the awe-inspiring Angel of the North...

..to the redevelopment of the Newcastle and Gateshead riverside,

where you can visit the Baltic Centre for Contemporary Art

and the Sage Centre for musical performance,

Tyneside, once known as the heartland

of the Industrial Revolution,

is now a hotspot for cultural activities.

The property I'm here to see today

is in an area of Tyneside called South Shields.

This particular part of South Shields is called Harton Moor,

largely built by the local authority in the 1970s,

so it's no surprise it's a 1970s house I'm here to see.

And that's it. It's a three-bedroom semi.

I'm sure that cladding certainly gives the age away.

The guide price was £34,950-plus.

Let's see if the inside's also in a bit of a time warp.

# A blast from the past

# A memory that lingers still... #

The poor condition of the outside doesn't bode well.

Still, it's best to be positive, I think you'll agree.

Or as they might have said back in the '70s,

"Can you dig it?"

Useful little entrance porch there. Keep the noise and the cold out.

As you walk through the front door,

it does actually feel quite spacious, which is quite good.

Talking of space,

the cloakroom toilet...

That's more of a black hole.

Eugh!

Anyway, stairs up to your bedrooms.

Now, here is where you might expect the kitchen to be.

Unfortunately, it isn't there.

There isn't a kitchen. Now, that could have all sorts of issues

when it comes to getting a mortgage on this place,

as some mortgage providers won't give you a mortgage

if there isn't actually a working kitchen.

Um, but walking further down the corridor,

you come to the rear of the property.

It's confusing. I say it's the rear of the property, but actually,

I suppose I've come in through the back, because this, if anything,

is the front. It's where there's another little walkway

and a bit of a nicer view. Not exactly much of a front garden,

but at least there's a bit of greenery there.

But it's not bad. I like the semi dual aspect in here.

Lots of light, and, um...

Yeah, you know, first...

Oh, you know. Needs a bit of work, doesn't it?

This house has been stripped back to the bare bones

and all the signs of the '70s have been removed.

Not necessarily a bad thing, in my opinion.

On the plus side, the proportions are good

and the layout very acceptable.

Boiler looks not too bad,

but always best to get it checked out by a certified engineer.

Something else in need of a safety check

is the car port to the side of the house.

With direct access to the semi, it could be a useful addition,

but in this condition, it's more of a safety hazard

than a selling feature.

MUSIC: Jive Talkin' by the Bee Gees

Well, upstairs, no great surprises.

The state of the place, sadly, doesn't improve.

But the layout, again, not bad at all.

Three bedrooms - two half-decent doubles

and a boxroom,

and at least the bathroom and loo are up here,

which is where you'd want them.

But all in all, it just carries on that theme of...

You know, it just needs a jolly good seeing-to!

MUSIC: "Whole Lotta Love" by Led Zeppelin

So this property needs a whole lotta love,

but there are things you can change,

like the condition of the prefabricated wooden cladding.

There are more fundamental things you can't change,

like how the house is constructed,

which is a method called cross-wall construction.

If you look at this wall, the end walls,

basically, wooden panelling on the outside

and it's very, very thin.

Certainly not thick enough to have a traditional brick construction

with a cavity in the middle.

This type of construction was prevalent in the 1970s,

but it just has all sorts of potential issues.

For a start, insulation - is there enough in there

to make this a nice warm room?

It's difficult to tell on a day like today,

but I'd certainly want to get that checked out.

And then, structurally, if it's made of wood,

is that wood in good condition?

Of course, that affects things like the joists and the floorboards, etc.

So it really needs to be checked out, and ideally by somebody

who knows this kind of construction quite well.

Cross-wall construction like this

is considered standard and therefore is mortgageable.

If it actually had a kitchen, that is.

This '70s property is less disco diva

and more wilted wallflower.

We invited a local estate agent to share with us

her opinion on this property,

which had a guide price of £34,950.

Everything needs doing.

The rooms are there, but there's just about nothing else!

Needs new bathroom, new kitchen.

Absolute cosmetic overhaul!

Once renovated, what could this place achieve if sold on?

Once done up, I would market this property

for £60,000.

Would it be a good renter?

Once renovated, it would rent.

There would be a demand for it,

and the rental would be £450 per calendar month.

Well, clearly, you've got to see through the house's current state

to what it might become, and actually,

it provides a lot of good-quality accommodation for a family.

So, for that kind of guide price,

I'm sure there'll be a lot of interest at the auction.

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

How about 20 to start?

Do I have 20,000 anywhere?

£20,000 anywhere?

In the corner at 20,000.

Gentleman there, 20,000.

21. 22.

23. 24.

25?

I've got 24,000, gentleman in the doorway.

24,500 bid. I'll take 500.

500 bid. 25. 25,500?

No? It's the gentleman in the doorway at £25,000.

25,500.

26.

26 bid. 26,500.

27.

27 bid. 27,500?

27,500 bid. 28.

28,500.

28,500 bid. 29.

29,500.

29,500, new bid at the front.

30,000. 30,000 in the doorway.

30,500.

30,500. 31.

He's walked away in disgust!

31. He's back.

31,500.

31,500 bid. 32. 32,500.

32,500 bid. 33.

32,500. It's your last shot.

I'm here at 32,500. I'm going once...

I'm going for the second time at 32,500...

And the successful bidder was Tahir,

who paid £32,500 for the semi.

He works for his family-owned

property development and management company.

They have an extensive portfolio of over 70 properties.

Let's find out what attracted him to this 1970s semi.

-Tahir, great to meet you.

-Nice to meet you.

Congratulations. Tell me why you wanted to buy this place.

Well, I was hoping I'd make some money out of it!

Right...you say that in a kind of "I'm not so sure any more" way!

No, no, I'm...

It looks like it's a decent buy.

And I think once it's done up,

it should reach a good price.

-You'd seen it before you bought it, though?

-I didn't.

-I didn't view it before I bought it.

-Why?

I'd done a little bit of research on the house

and the street, the area.

I kind of already knew that it needed pretty much everything doing to it.

OK. What did you think when you walked through the door?

Oh, my God!

-Really?

-And then I had another think on it,

did a little bit more research,

worked out what I needed to spend

and it's still something I think I can make some money out of.

I'm pretty sure I can make some money out of it.

And making money is the name of the game in developing.

Tahir has a team of tradesmen he uses on a regular basis.

He'll aim to get them started on this

when they've finished working on another of his properties.

He hopes to have this ready to rent out

six to eight weeks after work begins.

What are you planning to do with it?

It needs everything done to it, doesn't it?

It needs a full-on refurb, decoration throughout.

It needs an upgraded heating system,

but, yeah, I hope to bring it in,

well, around £8,000 to £10,000.

Right. OK.

Spend about that much on it.

And what work will you do?

-I'm a qualified gas engineer.

-Oh, right.

-So you can do the central heating?

-I could do the central heating system,

but...yeah, I possibly will do that.

Any plans to change the layout,

or are you going to leave it pretty much as it is?

I think we're going to utilise the car port.

Might turn that into a usable room.

-Oh!

-Put a solid roof on there.

What kind of room?

-Another living room.

-OK.

Or playroom or a...?

Yeah, something for a family. I think it would work well.

What about the actual construction of the house?

Certainly the end walls are wood.

Apart from the shell, which is brick,

-everything else is more or less prefabricated.

-Right.

Is that in good nick, do you know?

-The prefab?

-The woody bits.

I think it's not rotten.

It certainly doesn't appear to be.

-There's no signs of any damp getting into the property.

-Right.

So, yeah, I think it's OK,

but further inspections will reveal all.

Fingers crossed for Tahir that the timbers are in canny fettle,

as they might say in this neck of the woods.

This place requires a great deal of effort

and any hidden expenses could really impact on his profit margin.

And what do you do when you're not doing properties?

-Well, I like playing football.

-OK. Good!

Yeah. I spend time with my kids.

How old are your kids?

I've got two girls, six and four - Sophia and Amelia -

and I've got another one on the way.

-Tomorrow.

-Tomorrow?!

Tomorrow, yes - unbelievable!

-You mean like any time now?

-Any time now!

I could get a call and I'd have to run off and do what I have to do.

Oh, wow! How exciting!

It is very exciting, yes.

Well, listen, congratulations. Good luck with it.

-Thank you.

-Look forward to seeing how you get on.

Well, Tahir seems to know what he's doing,

although he did break the cardinal rule

and not look at this place before he bought it.

I'm a little bit concerned about that cladding and that end wall.

Will it really be OK inside?

And that timescale - six to eight weeks -

well, he's got a baby on the way. Will that slip?

Well, you can find out how it all goes later in the show.

Coming up...

Don't miss the fabulous transformation

of this Margate building

into something really special.

We return to South Shields

to see not just this house,

but Tahir's other beautiful new addition.

The day after you were here, we had a baby.

But first, if you want to know how to make money from property,

then watch how Carolyn profited from her investment.

It's more than I thought.

Earlier, we saw this house in Teddington

sell for £538,000.

It was bought by mum Carolyn as an investment opportunity

for her two daughters, Hannah, who we saw earlier,

and Katie, who each now own a quarter of it.

Have you any desire to have a property

or get into the property developing world?

Yes, just purely because it's an investment

and obviously, you can get money from it.

It's always nice to say,

"Oh, I own this and this, in various different places."

-Clearly.

-So it's good to start from a young age. Why not?

-How lucky are you?!

-Very!

Lucky, indeed.

There are not many teenage girls who can say that.

They're not only on the property ladder,

but they're developers as well.

The plan was to rent it out as a nest egg for the girls.

But there was a lot of work to do before they could do that.

Just nine weeks later, let's catch up with Carolyn at the house

to see what they've done.

Well, outside, it's just been a case of a bit of tidying up,

but it was inside where most of the work needed to be tackled.

We've completely redecorated throughout.

We've changed the two cupboards into a shower room.

We've completely redone the bathroom and the kitchen.

# Shine, shine, shine on... #

Well, they do say it's kitchens and bathrooms that sell houses,

and this one certainly gets my seal of approval.

Modern, stylish white units,

with a tasteful worktop and new flooring.

Carolyn's really spiced up this room.

To improve it, we decided we need to completely gut it

and modernise it.

I looked round, decided what sort of units I wanted

and what sort of worktops

and tried to keep it as neutral as possible,

because obviously, the idea is to rent the house out.

I'm really pleased. I particularly like

the lights at the bottom of the kitchen, cos they're quite cool.

Yes, it's a sparkling little finishing touch.

And even though she's planning to rent it out,

it's good to see that she's not just done a basic job.

# Shine, shine, shine on... #

It's great for a family to have this extra shower room,

saving arguments in the morning over who's next in line.

The bathroom itself has had a complete revamp too.

Again, it's a stylish, clean-looking space

and has been rejigged a little, so you can have a bath by the window,

soaking away whilst listening to the birds twittering in the garden.

Bliss!

# Shine, shine, shine on... #

And talking of which, there's been a lot of work out the back too.

There was a big problem with Japanese bindweed,

or knotweed, as it's sometimes called.

This is terrible stuff, and has to be removed by a registered company,

as it can grow through concrete.

Not something you want near your house.

And that's not all they found while they were at it.

I think we took out four bikes and, um...

and...a motorbike.

Um...there was a trolley,

ironing boards... You name it, it was there.

And so we cleared that at the same time,

just so we didn't get the Japanese bindweed

coming back into the garden.

Despite the extra work in the garden

and dealing with the pesky Japanese bindweed,

they still managed to bring the project in on time -

eight weeks.

They certainly are a crack unit,

and Carolyn was more than happy with the A-Team she hired in.

MUSIC: "The A-Team" THEME

Carolyn found George and his men to be a really crack team.

They made all the difference to getting this project

done swiftly and very well.

This bunch worked with military precision

in extremely pressured circumstances.

With a film crew coming in and a deadline such as a date,

so not someone's living here

and suddenly you can work round them and do snagging

and stuff like that... So last week, it was a case of everyone going round

snagging their own work and myself overseeing it.

And then after that, it was literally film crew's here Tuesday.

We're not going to move that. It's a case of that has to be done.

Me and the painters were here till half-nine last night

and here at half-six this morning,

so, yeah...thanks for that(!)

Sorry, George! But I'm glad to hear we've helped with their timetable.

Time to find out what value it's added, though.

Carolyn didn't have a budget in mind when she started,

but ended up spending £34,000.

So, added to the purchase price of £538,000,

that's a total outlay of 572 grand.

So, do those figures mean this has been a good investment

for a rainy day?

Two property agents braved the elements

to give us their verdict.

I think the changes to this house are lovely.

It looks really modern, contemporary.

And there's been good attention to detail, I'd say.

I think when you walk in, you get a really good feel.

It looks really inviting -

all clean, perfectly neutral.

But the kitchen and the bathroom and shower room really stand out.

I think the conversion of the storage room on the landing

to provide a second bathroom or shower room

is really, really fantastic,

particularly for buyers, because it's likely to appeal to

a large family or a medium-sized family.

So what about values, then?

First, the resale price.

Remember, the total spend here has been £572,000.

So what's it worth now?

The property could now be sold for £650,000.

I think if we put it to the market,

we would be looking to put it on for about £650,000,

and I think we would look at lowest offers of £625,000,

increasing from there.

I'm pleasantly surprised. I think £650,000 is a good number.

It's more than I thought.

That top figure would mean a healthy profit of £78,000,

minus the usual fees and tax, of course.

But Carolyn and her daughters intend to let the flat,

so what could they get for that?

This property could currently rent for £2,500 per calendar month.

If we looked to rent the property,

we'd be looking, I think, for about £2,300, £2,400

per calendar month.

That's a good number - a bit more than I thought,

so I'm pleased with that number as well.

Yes, that would mean an annual rental yield

of around 5%.

Not too bad.

This property development looks as though it has paid off.

So, what does Carolyn think her two daughters

will make of their new career in property developing?

They'll be looking forward to an income,

so they can afford to stay at university.

Margate in Kent may once have been synonymous

with a typical day out at the seaside,

but in recent years, it's seen a bit of a decline.

Now it seems the tide has turned

and it appears to be very much on the up.

With the Turner Contemporary art gallery

and investment by local government,

the town is undergoing a renaissance of its own.

But there is still some way to go,

and properties in Margate - well, compared to other areas,

they are still something of a bargain.

# Now the autumn wind

# Brings to them the end

# Of a faded summer love... #

When you're viewing property in a coastal location,

you're just hoping against hope that it might be overlooking the water,

and today, well, it's my lucky day!

For more reasons than one.

Because this is the property I'm here to see.

Yes, all of it, and it had a guide price of just £220,000 to £240,000.

This auction lot comprises four storeys

of faded Victorian seaside glamour.

But there are still traces of its old splendour to be seen

in its ironwork and masonry.

The building has been put to a number of uses in its time.

Most recently, it was a sweet shop.

So is it going to be a bag of Love Hearts

or bah, humbug?

It's actually making my mouth water -

look at all those yummy sweets on the window!

Boy, oh, boy!

This place is MASSIVE!

From the outside, you certainly don't expect it to be this big.

Wow!

It's got a big old echo in here.

You've got huge high ceilings.

It's fantastic!

Wow! This place really is incredible.

And this is just the beginning.

So how do we get round to the rest of it?

Through the front door, turn left, round the back,

up the stairs, left again through the second shop entrance.

See? Told you it was big.

Don't worry - all will become clear.

I can't quite get over how spacious this place is.

Below me, this is the basement,

which is a warren of nooks and crannies

and also has enough space to be utilised.

The stairs from the ground floor

leading to the two floors above are blocked.

But where there's a will, there's a way.

So it's time for me to stretch my legs.

# So come on, feet Start walking

# Mouth stop talking

# Arms, let him go

# Can't you see

# He don't love you

# He don't love you any more... #

So, through the front door... Bit of deja vu here, anyone?

And into the second shop unit.

Now, this is actually the first floor of the front of the building,

so this whole property is on slightly different levels.

Following? Do try and keep up.

It's an equally big space, sea views here too,

beautiful old pillars...

Look, you've got marble on the walls over here.

Signs this was once a grand space.

It faces a more standard shopping street,

but what a commercial opportunity.

It's like you get two bites of the cherry -

two main roads to ply trade on from the one building. Bonus!

Just take a look at this lovely balcony,

with its fantastic seafront views.

This building really does cry out to be brought back to life.

I'm very excited to be exploring this grand old Victorian property.

But the more I see, the more the harsh reality's hit home.

It's a tough economic climate to be starting up a high street business

and this place needs a lot of work.

Now, there's still one more floor to explore,

so it's onwards and upwards once again.

More and more and more space

as you get towards the top of the building.

And the views...well, they just get better and better.

How fab would it be to have a flat up here,

right in the centre of town,

but feeling like a million miles away from it all?

Funnily enough, that's exactly what someone else thought.

Plans have been passed to turn this building

into four two-bedroom flats and two one-bedroom flats.

That includes a two-bedroom penthouse apartment

on a newly constructed fourth floor.

There are opportunities galore with this auction lot -

business or residential -

but it'll need a hefty investment either way.

However, this really is my favourite kind of property.

Do I sound like a kid in a sweet shop?

# Because I'm sweet on Candy

# And Candy's sweet on me... #

We invited a local estate agent to give us his opinion

on this property, which had a guide price of between £220,000

and £240,000.

I think the plans that have been passed on this building

will make it quite impressive. There's an extension

on the upper floors to make the most of the flats,

and also plans passed to build a completely separate penthouse

on top of the building,

which I think will really be an absolutely fantastic apartment.

Of course, I'm sure that's going to be priced the highest.

So how much might it cost to realise those plans?

To convert this building

to the sort of standard I think it would need to be to,

you're going to be spending in excess of £500,000 to do the conversion.

Adding those building costs to the guide price

means an approximate outlay of around £750,000.

So could a heavy investment like that be recouped?

I think the flats in here

are going to be quite a high quality of conversion,

so I would be imagining the price at the moment of the one-bedrooms

would be around about £90,000.

The two-bedroom flats would be in terms of about £120,000.

I think the penthouse, dependent on how special it actually is,

could be up to £200,000.

This property is a gamble,

and needs to be viewed as a long-term investment.

Buy it now while prices are low

and before the regeneration of Margate is complete,

meaning higher property prices,

then, hopefully, cash in your chips

and you could have earned a small fortune.

But is it a bet worth making?

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

220,000. 220 to start me.

Where do you want to start? 200.

200, straight on.

£200,000. Now 205.

205.

205 I've got.

210. 210 is with you.

215 I've got. 220, it's with you.

225, it's against you, at the back again.

225.

225.

225 I've got. And 230 if you like.

230 I've got. And 5. It's against you again.

At £232,000.

232. 234.

234. And 6.

236 I've got.

238, straight away. And 40 now, if you like.

240 I'm looking for.

240 I've got.

242.

242? 242.

And 244 now.

244 I've got.

245 I've got.

245.

246.

246?

Otherwise, at £245,000 for the first time...

245 for the second...

I'm not going to dwell on this one.

245 for the third and final time.

If you're sure you're all done at £245,000...

After that tense tussle,

the successful bid of £245,000

was placed by Nick.

However, it was nearly ten months after that auction

that we met up.

Not that Nick hasn't been busy in that time.

After taking early retirement from managing pension funds,

he's been building a sizeable portfolio,

with three tenanted properties, plus this project -

his most challenging to date.

So will he sink or swim?

-Nick, congratulations.

-Thank you.

What an enormous amount of space for the money.

Well, it is a lot of building, but as you can see,

it's been neglected rather. It's been empty for quite a while now.

So it's got permission for six flats.

Is that what you're going to do with it?

That's what I was going to do,

but I wasn't going to rush the project,

because I just think it's a very special building.

But actually, over that time, I've suddenly realised,

because there's a dearth of good hotels in Margate,

I actually decided this could be a hotel.

Wow! So you've completely thrown the flats idea out,

the hotel idea in?

I think the time is right.

Margate seems to really need an upscale boutique hotel.

And have you had permission to turn this into a hotel?

We've put plans in. They've been very positively received.

And judging from the plans, I can see why.

There are many hotels with lovely sea views in Margate,

but this cool, contemporary vision will make a lovely addition.

While the sweet shop might be no more,

there will be an ice cream parlour on the seafront.

Nick has wisely engaged an expert

to help him realise this ambitious project.

Conrad's a consultant who helped with the initial design

and negotiations.

Conrad, I'm really excited to find out

what your involvement with this project is going to be.

Nick brought me on board to look at the hotel feasibility initially.

I'm a consultant who specialises in hotel and leisure.

Nick asked me to come on board to look at the feasibility

of developing and operating a hotel here

on the seafront in Margate.

So why do you think this building is perfect?

What makes a hotel so special?

Well, first and foremost, location, location, location.

And the dimensions are superb

from the point of view of a boutique hotel.

Conrad, tell me, how much does it cost to develop such a site?

Are we talking millions, hundreds of thousands?

Well, it depends how many multiples of hundreds of thousands

you want to use!

But it is a substantial sum.

As I say, we're going for quality, but this is a very old building,

which needs to be respected, treated with care.

We need to reinstate all the main services and go all the way up

to the very top.

And these things don't come cheap.

So this is a really major financial gamble

and a lot hinges on Margate's rejuvenation.

It is a big venture. Does it make you slightly nervous?

Well, it does. It does.

Hotels don't come cheap,

but that's why I needed expert help, and that's where Conrad comes in.

Nick, if there's one venture I am excited about,

it's this one!

I cannot wait to see what you do with this hotel.

-Good luck.

-Thank you very much.

-I think it's great for you.

-Thank you.

Well, I was not expecting that!

But what a fabulous idea of Nick's -

a boutique hotel could be just what Margate needs

to lift it to the next level.

But don't forget, this building needs a huge amount of work,

and then you've got to fill it with paying guests.

Let's see if Nick manages it later on in the programme.

Now, if you want to make serious profit from property,

timing is crucial.

You need to be flexible and also prepared for the unexpected.

And not let time pass you by.

Let's have a look and see how our buyers got on.

Back to the '70s again now.

But this three-bed South Shields semi

was looking none too glam when we last visited.

Indeed, bits of it were unaccounted for.

Including the kitchen.

# I've been missing you

# I've been missing you

# For so long... #

But for local property developer Tahir,

this was too good an opportunity to miss.

So he bought it for £32,500,

planning to refurbish it quickly and rent or sell it on.

He'd given himself a budget of £10,000

and a deadline of six to eight weeks.

But before he could really get down to work here,

there was a slightly more pressing issue.

How old are your kids?

I've got two girls, six and four - Sophia and Amelia -

and I've got another one on the way.

Tomorrow.

Tomorrow?!

Tomorrow, yes - unbelievable!

-You mean like any time now?

-Any time now!

I could get a call and I'd have to run off and do what I have to do.

Oh, wow! How exciting!

It is very exciting, yes.

Crikey! With a house refurbishment to manage,

plus the arrival of a new baby,

Tahir was going to be a busy man.

Well, 14 weeks later, what's the story?

So, it's a smarter-looking semi which greets us now.

There's a new fence, and that old rotten timber cladding

has been replaced with modern, more durable uPVC.

So there's some progress on the property front,

but what's the news on Tahir's home front?

The biggest news we had was the day after you were here,

we had a baby.

We had a baby boy.

His name is Zachary

and since then, we've had quite a few sleepless nights.

So this project got a little bit delayed,

simply because my attention needed to be elsewhere.

Helping my wife.

So, very understandably, Tahir's six- to eight-week timescale

went out of the window.

It's only in the last few weeks that he's focused on the house again,

as it was also crying out for his attention.

He hasn't been idle, though,

with walls knocked down to create a big kitchen/diner.

And the kitchen has, well...

well, it has a kitchen in it!

How novel!

With the black hole of the cloakroom now radiating light,

downstairs has definitely started to shape up.

I'm quite happy the way it's turned out.

It's not quite finished 100%.

Upstairs, the three bedrooms are all rejuvenated.

As is the retiled and redecorated bathroom.

Although there are still a few snagging problems,

he's certainly well under way.

And he's not finished yet.

The car port/garage area was pretty rotten

and in a condition ready to be falling apart.

Which we were going to replace,

but I thought I'd go a little bit further,

apply for some planning permission to turn that into a habitable room,

so that whoever takes the property, they have either a bedroom

or a playroom,

which is much more needed than a garage.

Tahir has submitted an application for planning permission

for the changes, and is still awaiting the outcome.

He will either sell the house on with planning permission in place

or let it out with the intention

of doing the conversion at a later date.

But what has it all cost him so far?

So far, I have spent just over £5,000,

which leaves me with round about £5,000

to do the garage conversion.

I'm hoping that that's going to be well under that price -

three to four. I'm going to hopefully save on...

It's going to come well within the budget.

Well, a £5,000 to £10,000 spend on top of his £32,500 purchase price

will take his total outlay to between £37,500 and £42,500.

So has he got the best from this property?

What do two local estate agents think?

It's most definitely far brighter than it was the last time.

It was very dark, very dingy, very old,

and the brightness in here - everything cream, neutral,

the space it gives because of that, is wonderful.

I think the property's been refurbished

to a reasonable standard.

However, I do think it could be improved upon,

to get it up to a marketable standard.

The kerb appeal, exterior-wise, has been improved immensely.

The cladding's great in the respect that it's clean, it's modern,

and it's also got the benefit of lower maintenance than timber.

Tahir knows there are still some snagging issues to address,

but even so, bearing in mind the current market,

has this house that he's spent £37,500 on to date

been a wise investment?

I do feel the sale value is £60,000.

However, due to the finish

not quite being so good as one would have expected,

they may have to consider offers upon that figure.

When the finishing touches have been done on this property,

I would recommend a sale price of between £55,000 and £65,000.

If a fourth bedroom was added by way of extension,

I do think it would increase saleability

and it would increase appeal to potential purchasers.

However, the price would remain at £65,000.

£65,000 is, er...

Yes, it's not too bad.

It's around the figure I expected.

I was hoping for 70 at the top, when the extra room was added.

So...yeah, I'm pretty pleased with that.

In fact, since filming, Tahir has accepted an offer on the house

of £64,950.

If that sale goes through, it would mean a pre-tax profit

of 27,450 quid for him.

Not bad at all.

So is there anything else in the pipeline?

I've got quite a number of projects to get on with,

so this year's going to be pretty hectic!

It's time to get the sun hat on

as we return to the golden sands of Margate

and this fabulous Victorian pile.

With sea views to the front,

yet also with the frontage on the High Street,

it had planning permission in place to convert it into six flats.

So, this large commercial building certainly had tremendous potential.

Former pension fund manager and property developer Nick

bought it at auction for £245,000.

So it's got permission for six flats.

Is that what you're going to do with it?

That's what I was going to do,

but actually, I suddenly realised,

because there's a dearth of good hotels in Margate,

I actually decided this could be a hotel.

Wow! So you've completely thrown the flats idea out,

the hotel idea in?

I think the time is right.

Margate seems to really need an upscale boutique hotel.

Wow! So, quite a radical rethink by Nick.

But with no background in tackling such a big undertaking,

he sensibly brought on board hotel consultant Conrad

to assist with it.

We're going for quality, but this is a very old building,

which needs to be respected, treated with care.

We need to reinstate all the main services and go all the way up

to the very top.

Even with Conrad's help,

this was still going to be a massive project.

As long as planning permission to make it a hotel was granted,

they hoped to do the work in eight to nine months.

Now, almost one year after we first saw

this huge dilapidated and sprawling building,

we're back.

We've created exactly what we set out to create -

a 20-bedroom hotel.

Some of the 20 bedrooms are in a new large extension at the back.

They are mainly across three floors,

with six bedrooms per floor,

all en suite.

Nine of the bedrooms have sea views.

We've created the restaurant and bar,

which completely covers one floor.

It has a large west-facing terrace.

What a truly magnificent space.

And they've blended the old with the new beautifully.

We've actually built rooms into the original roof

and created a roof terrace on top of that.

But we've gone to great lengths

to preserve the original Victorian facade, which dates from 1888.

So the building's actually 125 years old this year.

So, parts of it might be 125 years old,

but I doubt it's ever looked so good.

# Welcome to the hotel... #

LIFT BELL PINGS

We opened about two weeks ago.

And it's all gone extremely well so far.

The bar and restaurant is absolutely thriving.

And bookings are picking up, so it's all looking very good.

It's not just the hotel that's looking cool.

Remember the old sweet shop?

Well, it's now an ice cream parlour.

So what's it been like licking this building into shape?

It's been fascinating, the whole project.

I've obviously had a lot to learn about hotels.

But...the whole thing has been extremely enjoyable.

After planning permission was granted,

the build process took ten months to complete.

It's been a collaborative process between Nick and Conrad.

So how well did that work?

We both bring different things to the party, I think.

It's always good to have someone to sound ideas off anyway.

Although we had some very lively debates about certain aspects,

these were very much a minority of issues,

rather than the overall scheme.

So, yeah, we've worked together extremely well.

With this boutique hotel complex now complete,

will Nick and Conrad step away from the project

and go their separate ways?

We've got a team of managers in place.

However, Conrad and I do intend to be very much involved day-to-day,

because we want to make sure it's working operationally perfectly,

so, yeah.

This has clearly been a huge undertaking,

with a considerable amount of money spent.

And although Nick won't disclose the total cost of the project,

it's not surprisingly in excess of £1 million.

So, what do two local estate agents

make of Margate's latest seaside attraction?

When this was initially sold, it had planning consent for apartments.

I think they've done exactly the right thing.

Margate was totally overloaded with the amount of property

that was available that's converted into flats.

So this is something that's a real landmark in the area.

The selling feature of the hotel is obviously the finish,

but the quality of the rooms, the sea views,

the roof terrace gardens...

Just everything - the ambience about it.

In terms of the building itself,

it's a lovely property, stunningly converted,

retained a lot of the character, although it's new.

So that's all very appealing, but a very tough one to value.

Yes...value.

Hotels and commercial properties are very difficult to value,

as they're not just based on the bricks and mortar,

but also on the commercial success of the business.

Hotels are normally valued

after they've been trading for at least three years.

So, having only just opened its doors,

this building and business are hard to put a price on.

But the estate agents reckon the building itself

is worth between about £600,000 and £700,000.

And if sold as a going concern,

could be worth £1.2 to £1.5 million.

And with Margate apparently on the crest of a wave,

who knows how much it might be worth in a year or two?

How does Nick feel about this development now?

I'm very excited about the hotel

and about Margate generally.

There's so much happening here now. It's just a very exciting time.

Yep.

Indeed it is!

Well, that's it for now. We'll have more great stories for you

next time here on Homes Under The Hammer.

-And we look forward to seeing you then.

-Goodbye.

-Goodbye.

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