Episode 5 Homes Under the Hammer

The weather's not too bad today,

but can you tell the temperature of the property market?

Sometimes it's difficult to judge whether it's blowing hot or cold.

One way to suss it out is to visit your local auction house.

When you go to an auction, you can tell if there's confidence in the room

or if everyone's playing a cautious game.

Yes. It's a real barometer of the property market.

So let's see how the land lies

with the properties that went to auction on today's show.

In Callington, Cornwall, there's no question about it,

this cottage needs work.

It's never going to be easy with a house like this.

This 1930s Shepherd's Bush flat has me floored.

It's really, really in good nick.

That, to me, just stands out.

And in Denton, Manchester,

this former jeweller's shop may have lost its sparkle.

What you have got here, which I really do like,

is flexibility and options.

All of these properties went to auction.

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

when they went under the hammer.

Congratulations.

# California dreaming on such a winter's day... #

On a damp and dreary day like today,

you can be forgiven for longing for some West Coast sunshine.

But this just ain't California, I'm afraid.

It's Callington in Cornwall, within striking distance of Plymouth

and the Dartmoor National Park.

So, what am I here to see? Well, it's a little cottage.

Double storey, double bedrooms

and I had to do a bit of a double take when I saw the guide price.

£40,000-£60,000.

Oooh!

Well, first thing to note, no parking,

which is a bit of a disadvantage.

Through the front door, off the little courtyard area there,

into your front sitting room.

Fairly low ceilings,

so it feels a bit claustrophobic as you walk through the door,

but it's nice to see that traditional stone, open fire there.

So that's quite nice.

And you're going to have to look through the current state

because it's all a bit dark and browns and stains and things.

But you have to see through that.

So not a bad start.

Through to the kitchen.

Again, you need to see through the current state.

Great looking over towards that window.

Look at the thickness of those walls.

That also means you're probably going to be into damp issues

because I doubt there's a damp-proof course in the floor,

I doubt the walls have got any kind of damp-proof cavity,

so something to bear in mind.

But let's carry on.

In addition to the kitchen and sitting room on the ground floor,

there's the bathroom and a funny kind of lean-to utility room thing

with access to the backyard.

Now, both that backyard and utility area need a bit of work for sure.

At the front, the property sits right on the road

and the rendering's dirty from the traffic.

I would want to check that it's sound and doesn't need repairing.

Upstairs, there are two bedrooms, neither of which is huge.

But I think if you're really clever,

you could squeeze the bathroom in upstairs

and free up some space on the ground floor.

So, what does the auctioneer who sold the property

see as the way forward for this Callington cottage

with its guide price of £40,000-£60,000?

By moving the bathroom upstairs, the saleability factor would go upwards.

People like the conventional layout

and being able to go from a bedroom to a bathroom.

But actually, the cost of doing it may not actually be worthwhile.

Fair enough.

But once done up, what kind of rental income might you expect?

For the rental market,

you could probably achieve probably £500 per calendar month.

What about selling the property once it's finished?

If you're placing the property on the open market once refurbed,

I expect it would fetch somewhere in the region of £100,000-£110,000.

Well, it's in a good location in a friendly village,

but there is one heck of a lot of work to do to sort this place out.

You almost want to take all the internal walls down

and start again because everything's sort of in the wrong place

and it just feels like there's a lot of work to be done.

Let's see who fancied a challenge taking this one on

when it went under the hammer.

This property was one of the last auction lots of the day.

It's a two-bed, end-of-terrace cottage.

Who's going to kick us off at 50? Straight in at 50.

I'm asking for 50. I look around the room for 50.

OK, bottom end of the guide at 40. 40, you're away, at 40.

42. 42.

At 43.

44. 45.

46.

47. 48.

49 and 50.

Shake of the head, looking at the floor. Not a good sign.

So you've hit his round number, I expect. You're in at 50, sir.

You're in at 50. At 50, then.

At 50 for the first time.

At 50 for the second... 51.

51 off the phone. 52.

52. So I'm asking 53.

53 goes, yeah. 54, I'll take.

At 53, it's on the phone.

53 on the phone.

At 53,000, then.

53 for the first time, then.

53 for the second time.

On the phone has it for 53,000.

We're all out, so... Oh! 54. That was close.

54. At 54. At 55. Straight back at you.

60? Blow him out.

55. 55 is on the phone. At 55.

You're out, sir. 55 for the first time.

55 for the second time.

At 55,000.

All selling at 55,000 and out.

Congratulations.

So, that final bid of £55,000

was made over the phone by John and Julie.

As keen sailors, they're more used to being

on the end of a different kind of line.

# It's raining more than ever

# Know that we'll still have each other

# You can stand under my umbrella...#

I've come to meet them at the cottage,

where it was a case of water, water everywhere and not a drop to drink.

Julie, John, great to meet you both. Congratulations.

-BOTH: Thank you.

-Tell me why you wanted to buy this place.

We love a challenge.

That's all right, then.

If...you count the 20 apartments we had at one time,

this is our 43rd property.

-Right.

-So we do enjoy it.

-Are you property developers, then?

-No.

-No.

-What do you mean, no?

We wouldn't class ourselves as such.

How many do you have to have to be a developer?

43 sounds like quite a lot to me.

We just rather like properties, you know.

And, er...it's the challenge of doing them up and improving them.

Wow! And doing them up to sell on and move on, or...?

This one in particular is going to be our own house

-because my son lives nearby.

-Right.

-Um...so we're going to do a really good job, I hope.

-OK.

So, why this one, then?

-It was cheap.

-Yes.

And it was appealing from the outside.

I think it's got some character to it.

But mainly, I think, because I love it

when a place is so bad that anything you do to it is going to improve it.

-It will be done to as high a standard as we can afford.

-OK.

So, then, what happens now? What's the plan for it?

-Do you want me to?

-Yes, you'd better.

You're going to be starting on it.

-That wall will go.

-Right.

This will be a lounge diner.

It has a downstairs bathroom at present, which I don't like.

That will be gone and that made into a new kitchen

with an outside rough area made into an utility room.

Upstairs will be a new bathroom,

but with a shower rather than a bath tub.

And so what we'll end up with, I hope,

is a decent-sized kitchen,

a decent-sized living dining room,

um...and two double bedrooms and a bathroom upstairs.

Sounds like what this couple are planning

is just what this cottage needs.

Good on John for wanting to roll up his sleeves and get stuck in.

-So quite a lot of effort, then.

-Oh, a lot.

But I love knocking down things.

Are you a background builder, or what?

No, just an enthusiastic amateur.

Um...I was, or still am, I suppose, a paediatric nurse specialist.

-Oh, wow!

-But I've been a policeman and a customs officer

-and a hotelier and...

-Wow!

A man of many varied careers.

Not much talent, but a lot of experience.

How about you, Julie? What's your involvement going to be?

I'm going to be dealing with the decorating

and pulling down wallpaper,

helping out with the design of the place,

especially in the kitchen area and the bathroom.

But I'm not going to be pulling walls down.

I'm going to leave that to John. It'll keep him out of mischief.

-But actively involved.

-Oh, yes, yes, yes.

And why take on a project like this?

Why not get something that's already been done?

Oh, that's boring.

I don't want something that's been done.

Because we're retired now, so we want things to keep us busy.

-Yeah. We don't like retirement.

-Right.

-Well, we do, but...

-I don't.

-Right.

-You need something to keep you going, don't you?

-Mm-hm.

-Projects.

-It'll keep me off the street.

-Right.

Well, I don't think there's much chance of John being idle here.

Just clearing the whole place out is a big enough job in itself.

In fact, these two aren't going to waste any time at all

as they're keen to get cracking on the renovation pronto.

-What's the timescale?

-Three to four months at the most.

We're thinking.

Maybe a bit longer. We'll see.

-Will you work on it pretty full-time?

-Oh, yeah.

-We have nothing else to do.

-Nothing else to do. Wow.

Except sailing.

What kind of sailing do you do?

-Well, I've crossed the Atlantic under sail three times.

-Wow!

-And we have a boat in the Southampton area at the moment.

-Right. Your boat?

-Yes.

-Wow.

And we lived on our boat for nearly four years in the Med.

-Right. How was that?

-It was fun. It was fun.

Then our son outgrew his cabin, so we had to sell the boat.

Oh, dear! How were your Atlantic crossings, then?

Scary, the first one. I wouldn't do it again.

I did it subsequently twice, so I just love it.

I just love sailing.

-Right.

-Yes.

-You're not too far away from the water here.

No. But it's too cold in these parts.

-You're not a salty seadog?

-Oh, salty enough, but not cold.

MARTIN LAUGHS

So, what's the budget for the work?

-We think we're being pretty generous, 20-25.

-Mm.

-Yeah, if you do a lot of work for yourself, yeah.

-Yes.

And are you going to go for hand-built kitchens

and posh bathrooms and stuff?

Probably not. We're just going to put gold leaf on old ones.

But as far as making it as nice as we can, yes, we're going to do that.

Great. Well, congratulations to both of you.

-Thank you.

-Thank you.

-Good luck with it.

I'm really looking forward to seeing how you convert your home.

Thank you.

So, are there choppy waters ahead for sailors John and Julie

when it comes to restoring this place?

I have to be honest, I have got a bit of a sinking feeling

about some of the problems they will encounter.

It's never going to be easy with a house like this

with so many nooks and crannies and thick walls

and no damp and blah-blah-blah. It goes on.

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

I'm in West London today in a place called Shepherd's Bush.

Now, it may not be the glitziest part of the capital,

but it rubs shoulders with some pretty swanky neighbours.

Chiswick and Notting Hill are both so close by.

But if your funds won't stretch

and you can't afford to live in the more desirable spots,

then maybe it's time to start considering this part of the city.

With a multimillion-pound shopping complex on the doorstep,

your swanky neighbours may well head in this direction

to spend their time and money.

It also has fantastic transport links and a popular music venue

that attracts people to this part of West London.

# There's a thousand things I want to say to you... #

A short walk from all that Shepherd's Bush has to offer

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

Well, it's a purpose-built, one-bedroom flat

in this rather attractive, in fact,

gorgeous 1930s block with a guide price set at £180,000.

And luckily for me, it's on the ground floor.

This is a step into an area of elegance and good design.

Fortunately, this property's good looks have been protected

as the building is listed.

And not just on the outside.

The communal inside areas show plenty of character

with their Art Deco style.

I wonder if this one-bedroom flat

will live up to my rather raised expectations?

You certainly don't expect to walk into all this space.

When you think this is just somewhere to hang coats and put shoes, it's just wasted.

You've got the bathroom through there. Really tired, really old.

It all needs a complete makeover.

Very, very drab indeed.

You could think about knocking through here,

but these walls are pretty thick

and I'm not sure you'd even get permission.

But a lovely bright, sunny sitting area.

Look at these old original Crittall windows.

Now, I know this building's listed so you'll have to keep these,

but I will say you can hear a lot of the noise outside

and they're not fabulous at keeping the cold out.

Maybe you could think about some secondary glazing,

although that's not too attractive.

You've got some outside space here, a little balcony.

But what I absolutely love, and it gets me really excited, is this.

And this runs right the way through the flat. You ready?

Come and have a look at this. Look.

Original, beautiful parquet flooring.

How stunning is that?

And it's really, really in good nick.

That, to me, just stands out.

And that's probably why I'd want to buy this flat.

It's a great find and once this is sanded back and oiled,

it'll be even more impressive.

The bijou balcony may be a little snug for some,

but having outside space, however small,

is a fantastic asset in London.

Back inside and the bedroom's a good size.

And once that pink carpet is removed,

that parquet flooring will really set the room off.

They say all the best parties are in the kitchen.

I don't think you'd catch me in here drinking my cocktail.

It's a little bit on the down side.

It needs to be ripped out and you need to start again.

New worktops, new cabinets, new flooring.

But the bit I love, it's the disco dance floor on the ceiling.

# Oh, what a feeling

# When you're dancing on the ceiling... #

There is news about the flat that brings us right back down to earth.

This is a leasehold flat.

Now, the good news, the lease is nice and long

with 150 years left to run.

The bad news - there is a service charge.

Are you sitting down?

The service charge is a whopping £4,248.46 a year!

Now, that works out at just over £354 a month.

Wow! That's a lot of money to find

on top of your mortgage and council tax.

On the plus side, that mind-blowing amount does cover water,

heating and 24-hour porter service.

On the minus side, it could put off a lot of buyers.

Who knows? It could be one possible reason why it went to auction.

I wonder what a local estate agent thinks of this Art Deco style

ground floor flat guided at £180,000.

This property's got great potential.

It's quite small, but you can do lots of things with it.

It's quite a nice property.

Light and bright, which is nice.

I like the fact that you've got your own private balcony.

So a bit of outside space, which is obviously at a premium in London.

Let's talk figures. Once renovated, how much could someone make here?

First, the resale valuations.

I would imagine you're going to put it on the market

for anything from £250,000, maybe as much as £275,000.

But it would have to be an excellent standard of finish

and high specification to command that price.

How do the rental returns look?

I would expect to rent this out for around about £1,200 a month.

A well-proportioned flat moments away from the fabulous transport links,

all the restaurants and the buzz of London

that's literally outside your door.

The only real issue I can see is that astronomical service charge.

It's scary. I think that'll definitely put some people off.

Who wanted this flat? Let's find out when it went to auction.

Shepherd's Bush W6. Purpose-built one-bed flat requires modernisation.

I don't know, start low. 150. Not going to go below 150.

150 in the aisle. 155.

155. 160.

165. 170.

175.

180. 185.

190.

195.

190 with you, sir. 195?

Anywhere else? 195.

200. 205?

201. 202, sir.

203. 204.

205.

206.

207.

Yep. 208. 209.

208, back to you. 209 elsewhere?

208 first time, second time, third and last time, if we're all done.

Where? You've got to scream and shout, madam.

209.

210.

211.

212.

213.

212 with you, sir. 213 anywhere else?

If not, 212 first time, second time,

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

Sold. 212. Well done.

The successful bidders for that very popular and first lot of the day

were married couple Fran and Paul.

This was their first auction purchase.

I met them at the flat to find out what they were planning for it.

-Fran and Paul, congratulations.

-Thank you.

-Was this always the plan?

-Is this the one you wanted to buy on auction day?

-Yeah.

We only live around the corner. We pass this building almost every day.

We always have a glance over and think, that's really nice.

So when we saw there was a flat in this block coming up at auction,

we thought, "We have to go for that."

And so we was looking for something that wasn't going to be

too structurally difficult to do.

Something that we could just come in and really just tidy up.

Maybe a new kitchen, new bathroom. This ticked all the boxes, really.

You're both Londoners, so you know the area very well.

What is it that appeals to you about this part of Shepherd's Bush, Fran?

I've lived in the area all my life.

-I've never been out of the area.

-Really?

-Yeah.

So I know it tremendously well.

There was four properties we looked at. This was the main one we wanted,

but we didn't think we'd get it on budget.

So when we did, it was lot one of the day, it was fantastic.

-And you got it for £212,000.

-Correct.

So, what was your upper limit?

We were going to go to about 218.

So we were quite pleased to get it underneath that.

This auction went like a dream for them.

Not only because they got their property for less than they were prepared to pay,

but also because by getting the first lot to come up,

they didn't have to spend the whole day wondering

if they'd get any of the ones they wanted.

Job done.

Well, at least that's one job done.

There are plenty of others to get on with.

-So, you're quite excited?

-Yeah.

-Are you a busy guy?

-Do you have another job?

-Yeah. I'm an accountant.

I work for the English Tourist Board in their finance department,

which is a full-time job.

So, yeah, this will mostly be weekends and evenings for me.

-Are you going to be helping out?

-Absolutely.

Wherever I can, I will, yeah.

-So you're both happy to get your teeth stuck into this.

-Yeah.

-Yeah.

What are you planning on doing with this property?

One of the plans we're thinking of doing

is moving the kitchen from where it is at the moment into the hallway,

because we've got quite a large hallway

and a few flats in this block have actually done that.

So it makes it a small kitchen,

but that's sort of expected in this block.

And that will give us an extra bedroom.

So we'll make a one-bedroom flat into a two bedroom.

Do you think the kitchen will be too small?

I mean, have you actually seen some of these flats

with the kitchens in the hallway? Have you had a look?

No. I've seen photos, but I haven't actually physically seen them.

And that is a worry. Is it going to be too small?

So we're not 100% decided that is what we're going to do.

Have you done any research?

Have you worked out how much you could sell it for as a one-bedder,

how much you could sell it for as a two-bedder?

Yeah. It isn't really that much difference.

We're going to get a few quotes in

and see how much it would cost us to move the kitchen into the hallway

before we make that final decision,

whether we're going to do that or not.

# So move it on over

# Move it on over

# Move it on over

# Move it on over

# Move over, little dog cos the big dog's moving in. #

As Paul and Fran plan to sell the flat on,

they're doing the right thing by researching

how a layout change could affect their profit margin.

They want to make the property look as good as possible,

but also know that nothing can make that hefty service charge

of £4,000 attractive.

Do you think it'll put somebody off when they come to buy this property?

Yeah. I think it is a bit of a gamble.

But I think for the area we're in and being in a listed building

that does look as nice as this one does,

I think you have to pay the price for that.

It will undoubtedly become a drawback when it comes to selling.

But it is a beautiful building and hopefully,

someone will be prepared to pay that hefty £4,000 service charge

on top of the mortgage and rent payments.

Paul and Fran have a £10,000 budget

and a schedule of four months for this job.

Fran and Paul, good luck with this project.

I wonder if we will come back to a kitchen in the hallway.

-Thank you very much.

-Congratulations. Thank you.

-Thank you.

Buying on home turf is always something I recommend

and Fran and Paul know this part of London like the back of their hand.

But how will they get on moving that kitchen

and will they be able to turn this

into a two-bedroom flat to see the real return?

The big question is, will that service charge

become a sticking point when it comes to sell?

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

Coming up - in Manchester,

polishing this former jeweller's will be back-breaking work.

Well, an interesting opportunity here for somebody.

In Shepherd's Bush, Paul and Fran went flat out to finish.

We spent most of our time going out, getting materials

and making sure the builders had everything they needed.

But first, we return to Cornwall.

Has this refurbishment been plain sailing?

It's been fun. It has been.

For the most part.

Back now to Callington, Cornwall,

and this two-bed cottage which was... Hmm, how shall I put this?

A bit worse for wear.

It was bought at auction for £55,000

by enthusiastic amateur property developers John and Julie,

who were unfazed by the state of the place.

I love it when a place is so bad

that anything you do to it is going to improve it.

It will be done to as high a standard as we can afford.

The couple were planning to roll up their sleeves

and spend three to four months and £20,000-£25,000

turning the cottage into their new home.

Five months after our first visit,

we're back to see if they've brought some sunshine

to this little bit of the West Country.

# I can see clearly now the rain has gone

# I can see all obstacles in my way

# Gone are the dark clouds that had me blind

# It's going to be a bright Bright sunshiny day

# Look around there's nothing but blue skies

# Look straight ahead nothing but blue

# Skies. #

Well done, John and Julie.

The cottage has been transformed from dark and dingy

to bright and airy. It's almost unrecognisable.

What we've done is everything.

Everything you see, virtually, is brand new.

Brand-new plumbing throughout,

electricity supply throughout.

Every square inch of outside and inside has been painted,

varnished, lacquered.

We've taken out the old bathroom, relocated it upstairs

and put a kitchen where the bathroom was.

And we've created a utility room out of the lean-to.

John and Julie really have been busy.

They still need to do something with the backyard,

but once they'd cleared the cottage out,

they were able to sort out any potential damp issues

and start putting things back together.

They were particularly keen to get the bathroom in upstairs

and are chuffed with the way that has come together.

We were worried that it wouldn't work out,

because it is a small bathroom

without a bath, but it has a shower.

But it really did work well.

Moving the bathroom has allowed them

to create a lovely open-plan living dining room downstairs

and a good-sized kitchen.

This was the old bathroom.

We just tore the whole place apart

and then put in the kitchen.

We used decent materials and I think it looks good.

We're pleased with it, anyway.

And so they should be.

Despite all their experience in renovating property,

was there ever a moment when this project just seemed overwhelming?

It was daunting because we had never taken on a property like this

with so much to do. But we knew that we could do it.

In the end, it was just...hard graft.

Thanks to all that hard graft,

the couple have managed to stick more or less to their timescale.

But what about their £20,000-£25,000 budget?

Blew it.

-Yes. It was over.

-Went zooming past it. Um...

37.

That is quite an overspend,

but John and Julie think it's all been worthwhile

and are enjoying their new home.

Their total spend, including the purchase price, is £92,000.

So, what do two local property experts make of the transformation?

First up, the auctioneer who sold the place.

When I knocked on the front door to come to the property today,

I thought I was at the wrong place in comparison to what it was before.

What they have done is a massive uplift to the property and the area.

First impression is just a country cottage feel.

The character of the beam ceilings

and just the quaint cosiness of the property.

What do they reckon the property could fetch if it was let out?

Rental, I would suggest between £550 and £575 per calendar month.

On the rental market, you could achieve somewhere in the region of £550 to £600 per calendar month.

-If we were doing it, that seems OK.

-Yeah.

Those rental valuations could bring in a healthy yield

of between seven and eight percent.

What about selling the cottage on?

If I was to put the property on the market today, I would put

it on the market for somewhere in the region of £120,000 to £125,000.

I would certainly put it between £120,000 and £125,000.

That sounds fine but I think once we've done

the landscaping in the garden, it will be worth a bit more.

Those resale valuations could mean a profit before tax and expenses

of between £28,000 and £33,000, which is really pretty impressive.

Now John and Julie bought this property to be near to their son

but he has decided to move to Portugal,

so will they be sailing off into the sunset to join him?

We can always base ourselves here and do something somewhere else.

We will just see.

This has been a major renovation by any standards

and the results are gratifying. How would they sum it up?

-We are glad to have it finished.

-Yes.

-I think...

-But it's been tough.

It has been fun, it has been, for the most part.

But I'm glad it is over with now.

Manchester is a major centre for the arts, media and commerce.

And on the edge of the city, there are many characterful suburbs

and villages which are well worth a look.

Today, I'm in the residential suburb of Denton.

A popular place to live with good transport links and amenities

but it also has some other really interesting claims to fame.

It was famous for the hat making industry and in its heyday,

in the 1840s, over 24,000 felt hats were made here every week.

# Wherever I lay my hat

# That's my home. #

In the busy heart of Denton, there are still a few clues to the area's distinctive past.

Let's hope that wherever I lay my hat could become someone's home.

Actually, maybe not. Because up for auction was this.

It's a former shop with some rooms above and a guide price of £30,000.

Let's take a look inside.

OK. Little entrance area here and then into the main part of the shop.

Clearly, it is a bit dark and dingy,

partly because the rollers on the front there.

In terms of space, it's not too bad.

Needs a bit of work but when you look at a commercial premises,

it is square-footage that matters, so not a bad start.

This premises has had other incarnations.

It was a terraced house and a butcher's.

Latterly, it was a jeweller's, so presumably had more sparkle than it does now.

# Gold and diamonds Gold and diamonds

# Diamonds... #

It is hard to imagine it now, though.

In the years since this was a thriving business,

the shine has definitely come off this little gem.

The previous use of this shop explains the heavy security window,

which unfortunately, we couldn't budge on the day I visited.

# Don't shut me out

# Shut me out Out of your life. #

I'm sure once it's opened, it will seem much brighter.

Through here into the back shop and again,

there's quite a sizeable space to work with,

as well as a really useful utility room.

That creates all sorts of possibilities

for any new business you might want to run here.

An added bonus is that there's that all-important heavy safe.

If upstairs turns out to be as good as this,

then for that £30,000 guide price, it might be a steal.

The upper floor is accessed by a staircase

between the office and shop.

Upstairs and there is a bathroom and two rooms.

Definitely a useful space.

That brings me on to say what could you use this building for?

You could keep it like it is, run downstairs as a shop

and this as accommodation for whoever ran the shop or possibly storage space.

It is quite easy to get planning permission for a conversion from a shop premises to residential,

slightly easier than the other way round,

unless the authorities deem the shop to provide an important local amenity.

In which case you could convert this space

possibly into one house or, I think a better way to go, two flats.

A set of access stairs at the back

and you've got the entrance at the front for the other flat.

That, I think, would be the way to go.

What you have got here, which I really do like, is flexibility and options.

That said, there is a lot of work required on this former jeweller's shop.

# All that glitters

# It ain't gold... #

No matter which option you choose,

it's going to involve a lot of effort to bring it up to scratch.

At the rear of the property, some fairly heavy security measures.

You've got razor wire, bars on the windows

and, of course, the shutters.

This could have something to do with the shop's previous use as a jeweller's.

You have got shared access so although it's not ideal,

at least it does provide that all-important second route in and out of the property.

With a guide price of £30,000, this auction lot

offered plenty of property and potential on auction day.

We invited the auctioneer who sold it to come

and have a look around and size up the various opportunities here.

What would he advise?

Personally I think the main option

would be to continue as it is, as a commercial property on both floors.

The other option is perhaps putting a single commercial unit downstairs

and turning the upstairs into a lettable flat.

Or a third option,

there is a possibility to turn this back into a residential property as a two bedroom terrace.

Of course, those alternative options would be dependant on getting appropriate planning permission.

If the property was renovated on much the same lines

as it is now, that's the whole building as one commercial unit,

the auctioneer thinks it could produce £5,500 to £6,000 per year.

And it could be worth £60,000 to £65,000 if sold.

But what if you were to go for the mixed commercial and residential option?

What income could be produced then?

We would anticipate a rental value on the shop

probably around £4,500-£5,500 per annum

and the one bedroom flat, we would anticipate you would get

between £250 and £350 per calendar month for it.

If you were successful in getting planning permission to convert the whole place back into one house,

how much could it then be let for and what could it sell for?

If the property were renovated and reinstated as a two bedroom mid-terrace,

we would expect a resale value of between £75,000 and £85,000

and if the property were to be rented out,

we would anticipate a rental value in the region of £450-£475 per calendar month.

Well, an interesting opportunity here for somebody.

Bit of work to be done, not least sorting out the access issues

but let's see who fancied it when it went under the hammer.

This is a shop on a busy main road, this one.

A lot of interest in this one.

Who is going to give me £30,000?

30,000? 25? 25 in the back. 25, I have. 26?

26,000? 27?

27,000. 28?

At 28. 29. £29,000 at the back.

Do you want to come in at 30? 30. 31?

There are two of you in it. 31.

32? 32. 33? At £33,000. 34?

34,000. 35?

At £35,000.

36, I'm looking for now. 36.

37? 37. 37? At 37. 38?

What about half?

38,500. 39?

39. At £39,000.

39,500. 40. At £40,000.

40,500. 40,500. 41?

No. At £40,500 on my right.

At 40,500 for the first time.

Second time.

Third and final time at £40,500.

It's your property on the right.

The successful bidder who paid £40,500 for the former jeweller's shop in Denton was Mark.

He is a self-employed gas fitter who attended the auction

with his eldest daughter, Rebecca.

Mark and his wife Nicky live in Denton.

Nicky runs an internet retail business,

as well as working part-time as a DJ in local pubs and clubs.

She is also currently training to be a nutritional coach.

I met with both of them at the property to find out their plans for this former jeweller's shop.

-Nicky, Mark, great to meet you both. Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

-We drove past one day.

-We only live local and...

-Saw the sign.

Saw the price.

The price attracted us so we come for a viewing and decided to go for it.

I can imagine you just deciding to go for a terraced house

but this is like a really interesting property

with a shop downstairs and a flat upstairs.

Why was it the sort of thing you drove past and thought, yeah?

We was looking or thinking of a place anyway, weren't we?

-For Nicky's business.

-OK.

-So see what happens.

Tell me about your business.

I work in the sort of health industry so it's nutrition, sports, energy levels, things like that.

-And where do you work from at the moment?

-From home.

I go to people's houses. I'll have a clinic and do it from there.

Oh, gosh. So this whole building would be it?

Upstairs will do beauty and clinic downstairs.

-And what treatments will you have? Will it all be you?

-No, no.

It will be obviously beauticians upstairs.

Obviously I will be downstairs in the clinic.

So Mark and Nicky spotted the enterprise opportunity here.

Being local to where they live, it's ideal.

They plan to turn the whole place into a health and beauty clinic.

# You are so beautiful to me. #

Luckily, since Mark's a gas fitter by trade,

that should help save money as that is usually one of the services

people have to call in when renovating a property.

Obviously, the place needs a full and thorough rewiring,

so that will require a qualified electrician

but apart from that, the couple plan to do most of the work themselves.

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

-THEY LAUGH

-A full refurb.

-Everything.

Looking at it, I think we need to go back to brickwork,

new electrics, new heating

and possibly a few new walls here and there and take it from there.

So what is the budget for the work?

-We are hoping to do it for around about 10,000.

-Wow.

-Yeah.

Obviously, that's a lot of our own labour.

And downstairs, lots of shop fitting which can be expensive.

-For the moment, we can't even get the shutters up.

-Shutters up, yeah.

-So that will be the first point.

-Yeah.

-And what kind of timescale?

-Hopefully about four to five months.

-But doing a lot of stuff yourselves?

BOTH: Yeah.

-Good luck. Nice to meet you both.

-Thank you.

-Cheers.

-Thank you.

There's a lot of work for Mark and Nicky to do

before this place is open for business.

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

Well, it's time to go back to those properties

and see how the new owners have got on.

Did they stick to their timescales and their budgets? Let's find out.

Shepherd's Bush, West London.

A massive high-end shopping centre, great transport links

and a popular music venue have made this an increasingly attractive area to live,

and in this beautiful 1930s apartment block,

we came to see this one bed flat which unfortunately

looked like it hadn't been decorated since then.

But that didn't deter first-time developers Paul, an accountant,

and his wife Fran.

They paid £212,000 for it because,

despite the shabby, run-down appearance, they could see there was loads of potential here.

One of the plans that we're thinking of doing is moving the kitchen

from where it is at the moment into the hallway, because we've got quite a large hallway.

That will give us an extra bedroom so will make a one bedroom flat into a two bedroom.

Do you think the kitchen will be too small?

-Have you actually seen some of these flats with the kitchens in the hallway?

-No.

I've seen photos of them but I haven't been in and seen them. That is a worry.

Is it going to be too small?

We're not 100% decided that is what we are going to do.

Paul and Fran's intention was to refurbish and sell it on.

However, I was really worried that a major factor,

which might put buyers off, was the enormous service charge

for this leasehold flat - over £4,000 a year.

But undaunted, they steamed ahead with their ten grand budget and four month schedule.

Five months on, we've returned to see if Fran and Paul

have managed to jazz up this property.

Wow!

That lounge has been brought back to its former '30s glory.

The parquet floor has been restored and oiled.

The bedroom's had the same treatment and the result is just amazing.

The new bathroom is very much in keeping with the style and tone of the flat.

I was a little dubious about that rather tentative plan

to move the kitchen into the hall and create a second bedroom,

so have they gone for it?

No, I'm glad to say they haven't!

The kitchen stayed where it was,

But look at it now!

So why did they leave the layout as it was before?

We took some advice on this and we was told that

because it's a listed building, we would have to go through quite

a rigorous planning application to get that done.

It would take quite a long time, it would take a few months

and it would actually be very likely to be turned down due to fire restrictions.

So we quickly came to the decision that that wasn't for us,

we would keep the hallway as it is.

As first-time developers,

I reckon Paul and Fran have done the right thing by not

taking on a long and possibly doomed attempt to change the layout.

Keeping it simple is usually the safest course of action,

which they've done here and restored some character.

Paul's actually restored the original Bakelite handles,

as he used to be an antique restorer.

And, also, the hinges on the cupboards,

he's tried to get them to the original effect as possible

by sourcing stuff on the Internet.

He's done a very good job on both parts, actually.

I'm really pleased with how the floor's come out.

It was quite a task to get the right blocks in place

and to get it sanded down and to get it vanished.

It looks fantastic and it's one of the first things that people notice

when they walk in here. They say how nice the floor's looking.

I'm pleased with how it's come out.

The couple had planned to do quite a bit of refurbishment together

after work and at weekends.

We originally intended to do a lot of the work ourselves

but this block actually has restrictions on the timings of when you can do noisy work.

So we employed someone to come in and actually do the work for us,

while me and Fran took on more of a project manager's role.

We spent most of our time going out and getting materials

and making sure that the builders had everything that they needed.

So the renovation didn't go as smoothly as the couple would have liked

but they do view it as essential experience for future projects.

I would say to anybody in property developing, you really don't know what to expect.

It's a rollercoaster and what I would say is,

chuck yourself in and deal with each situation as it occurs.

As newbie developers, I reckon Paul and Fran have done a good job on this flat.

It's got freshness, warmth and style.

Having to use contractors meant they did finish just

within their four-month schedule but, of course,

getting tradesmen in must have affected their budget.

Well, originally we was going to spend 10,000 on the budget. We only had a £5,000 contingency.

Luckily we did have that because as we had to get other people in to do that work,

we had to eat into the contingency.

We ended up spending 14,000 on the job.

That £14,000 spend on the renovation would take their total outlay

to 226,000.

Time to find out from two local estate agents, including

the one who saw it before, if they think it's money well spent.

Obviously, coming back for the second time to see the property

renovated, complete transformation.

It doesn't look anything like it used to.

It's a nice surprise.

My first impressions of the flat are that it's a good refurbishment,

good attention to detail

and would make an ideal pied-a-terre for somebody.

So far, so good, but are there any negatives?

The service charge is high.

There are other properties in the area with lower service charges

that have more facilities.

It's good that the heating and hot water is included

and there's a porter, as well, but it is at the very upper end of the service charges

that would be expected in this area.

Paul and Fran's total outlay is 226,000,

so would they make any profit by selling the flat?

I would put the flat on the market at £255,000,

with a view to achieving just below the stamp duty threshold at £250,000.

I would market it at £259,000.

Those valuations could give them a profit

of between £24,000 and £33,000, minus tax and expenses.

-Yeah, that's about what we thought, isn't it?

-Yeah.

We've had a couple of estate agents in that have given us valuations of 265, 275

with looking at a resale of around about the 250 mark.

It's exactly what we thought, to be honest with you, yeah.

It's a good start for the first-timers and Paul and Fran plan to sell,

but the estate agents reckon the flat could rent for £1,300 per calendar month,

which could earn them an annual yield of just under 7%.

How does that sound?

-That's more than what we thought, actually.

-Yeah.

We was looking between 11, 1,150, so 1,300, yeah, very pleased with that.

The couple should be pleased with how this flat has finally turned out.

They were also hoping that the sale of this place will fund

their next renovation development, which hopefully will be soon.

-We would do it again, yeah.

-Yeah.

We've learnt a hell of a lot from doing this and it would just be a shame

-not to put that knowledge into another project.

-Yeah.

Yeah, I've enjoyed it.

Ups and downs, but overall, I want to crack on with the next one now.

Back now to the Manchester suburb of Denton,

an area once famous for hat making.

# You can leave your hat on... #

And it was hats off to Mark and his wife, Nicky,

who paid £40,500 for this former jeweller's shop.

# ..You can leave your hat on. #

Mark's a self-employed gas fitter

and Nicky's training to be a nutritional coach.

They plan to ring the changes on the former jeweller's

and convert it into a health and beauty business

so Nicky wouldn't have to spend so much time travelling.

Tell me about your business.

I work in the health industry, nutrition, sports...

-Oh.

-..energy levels, things like that.

Where do you work from at the moment?

-From home, I go to people's houses.

-Right.

But I'll have a clinic and do it from there.

The sparkle had definitely gone from the former jeweller's.

The couple reckoned four to five months would be necessary

for the work and a budget of £10,000.

It's now just over five months later.

The shutters have gone and the tarnished jeweller's shop

has polished up beautifully.

The only CARATS now are in health drinks.

Upstairs, the former front living room has been divided

into two treatment rooms - one for a tanning bed,

the other for spray tans.

There is another treatment room at the back of the first floor.

The property needed a lot of building work before it could

have any cosmetic treatment.

We really started with the major stuff,

the chimney's come down and then we realised this floor that we're on,

that had to come out, a new joist go in.

The same with the ceilings.

It took us an extra six weeks, I think, than what we first planned.

Originally, it was a living room. It was a flat up here.

I've got a sunbed room and a stand-up so, obviously,

it needs privacy and, obviously, a waiting area out here as well.

Turn left at the top of the stairs...

..and the former bathroom, at the back of the house,

is now a loo and shower room.

Down on the ground floor, behind the staircase, there's an office

and more storage.

Mark's a qualified gas fitter and has done a lot of the work himself,

bringing in tradespeople when required.

The windows have been replaced throughout

but the rear of the property still needs tidying up.

It's a safe bet that will be done very soon.

How has the budget fared? Did they stick to their predicted £10,000?

We have gone slightly over on the budget

but there was a fair bit more work than we had initially anticipated.

So, all in all, we have spent around about 13,700.

With the £40,500 they spent at auction,

that takes their total investment to £54,200.

# Now that you've gone

# All that's left is a band of gold... #

Now, be honest, guys, did you find any old rings or watches

-when you were doing the refurbishment?

-No, we didn't.

-Absolutely nothing.

-No, unfortunately.

-Not a thing.

No, we did look hard though!

Even under the floor.

Well, no gold or silver found but this property has been

turned around into a real sparkler.

Now it's finished, what benefits does Nicky see her new premises bringing her?

I think, obviously, it's a lot more professional working actually from a premises

rather than going to people's houses and creating a nice atmosphere to do it in,

which helps when, obviously, you're dealing with customers.

Time to get advice from two local property experts.

What will they think of Nicky and Mark's

re-energised property?

First impressions are good.

They've made a nice job of the refurbishment.

There are one or two small bits and bobs of finishing touches required.

I'm sure they're going to take care of them but I think they made a nice job of it.

The owners have made a really good job of the refurbishment.

It's clean, modern and suitable for a variety of uses

but particularly useful and attractive for anyone in the hairdressing or beauty industry.

How much could the place now be worth?

More than the £54,200 Nicky and Mark have invested?

If I was putting this property on the market for sale in its current condition,

I would expect to achieve in the region of £75,000.

I believe if the property was to be sold for someone for their own business use,

it would have a value in the region of £75,000.

So a profit of £20,800 before tax and expenses.

-Probably a little bit low.

-Than we thought, it's fine.

-I'm quite pleased with that.

-Yeah.

What rental income could it generate in its current commercial configuration?

As a commercial property for rental, I would expect to achieve

between £650 and £700 a month for the whole property.

That's a healthy rental yield of 14%

but these are tough times for everyone

so if Nicky finds the beauty business isn't booming,

could that upstairs area offer an alternative income to

supplement her nutritional business?

If the property was rented as a shop on the ground floor

and as an apartment on the first floor,

the rental income would be potentially higher.

It would be in the region of £800 per calendar month

and the value of the property would be as much as £90,000.

If the ground floor was commercial and the first floor was residential,

the income would probably increase to something in the region of £800-£850 per calendar month.

That combined commercial and residential income

would generate a yield of 17 to over 18.5%,

something for Nicky and Mark to consider?

-Yeah, it might be worth...

-At least we know what we are doing!

At least we know what we're doing if it doesn't work out.

-It'll probably be a small conversion to do that.

-Quite easy.

But we'll give the business a go first.

THEY LAUGH

There's less than a day to go until the premises

have their official opening, so how's Nicky feeling?

Tired, but excited.

Obviously, I've a lot to do business wise,

a lot of organising and advertising, things like that, to get my customers in.

-But yeah, full steam ahead.

-Mmm.

And what's next for Mark?

Go back to work! Full-time and start getting some money back in.

We'll have plenty more tales from the auction rooms for you next time.

Make sure you join us then for the stories, the highs and the lows.

-See you.

-Goodbye.

-Goodbye.

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