Episode 50 Homes Under the Hammer

Hello and welcome to the show.

We all know the value of our home can go down as well as up.

So it's really important to buy at the right price in the first place.

And one way to do that is to buy your home under the hammer.

Well, if you are sitting at home thinking you would like to

have a go at buying at auction, now could be the perfect time.

The market is always changing and you have to judge

when is the best time to buy.

But today's bidders have already put their money on the line.

Here's what they bought.

In Devon, this partially renovated fisherman's cottage

just needs a few tweaks.

It's a bit of a half-finished job.

This London flat claims to have three bedrooms, but I'm not so sure.

You've got a little room there which is good for... Nothing.

And this mid-terrace in Little Eaton, Derbyshire, has

loads of potential, loads of room, especially in the family bathroom.

Lots of towel-drying space.

All of these properties have sold at auction.

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

when they went under the hammer.

At the back, thank you.

This is Brixham on the south Devon coast.

In its heyday there were hundreds of fishing boats going in

and out of the harbour here.

Today, there are fewer trawlers but there is still a bustling

fish market and oodles of maritime charm in the town.

So, we've already established this is a really beautiful location

and the good news is the property is literally a short walk

from the harbour. However, I am noticing a few downsides.

Because this is the only entry.

There's no parking so both counts not good.

However, the guide price for a one-bedroom house, 70,000 quid.

So let's hope inside makes up for the shortcomings.

Now this is a bit of a funny one

because it's not the green house that we are here to see.

It's the white one next door.

To get to it you have to walk through the neighbour's garden.

That's not ideal,

but you do have a pleasant little garden of your own, at least.

So with great hopes and much anticipation, what's it like inside?

Well, interesting stable door there.

Actually, that is quite nice because you can open that top bit

and look out and make the most of where you are.

The moment you walk through the door, straightaway,

you see it is a bit of a half-finished job.

We have wires coming out of the walls, plaster here and there.

This is the kitchen area and it's not a bad-sized space.

It is literally front to back and side to side,

the entire size of the property. But some interesting features.

A cooker, stove, wood-burning stove.

Some nice sort-of-ish home-made cupboards and things.

It has that air of project which is halfway through.

A sort of DIY do-up job.

It's not bad but the thing that really doesn't work

and I think ruins the whole flavour down here is this. This island unit.

Now I love kitchen island units,

I think they are brilliant use of space.

You actually want to be able to sit at them,

so you need an overhang to make it a breakfast bar, for one, but

this right in the middle here really shrinks the size of this kitchen.

I want to see a big farmhouse kitchen table.

I want to be able to move things around, have chairs

and this doesn't work. That has got to go.

Apart from that, everything's fine!

Whoever started this had some great ideas

and there's bucket loads of character.

It just needs some fine tuning, finishing touches

and it will be there.

Up on the first floor there is an attractive sitting room

which will be lovely once it's finished.

Up another set of stairs to the second floor and, yes,

you've guessed it, more unfinished idiosyncrasies.

Well, up here on the top floor, the quirkiness continues.

In fact, in some ways, it gets amplified.

What we've got here is this little,

I'm not sure how to describe it, mezzanine area.

You've got a bedroom here, the only bedroom in the property

so one bedroom, not brilliant. A little cupboard there.

Quite a nice sized bathroom with a shower in it which is good.

But where it gets really quirky is up these stairs

and I think this could be the key to the property's financial success.

Now my guess is that this has been converted from the attic space

at some point to be, ahem, this little sort of...

I'd best describe it as a den, I suppose.

You have these roof lights in which let lots of light in

and a view out over Brixham which is absolutely lovely.

But this space clearly could not be a bedroom or an office space.

I don't suppose it meets building regulations.

However, with a bit of playing around, I think

this could become really useful extra space, especially

if you are looking to rent this space out for holiday lets.

If you have got young kids

and you made it kid-friendly which is basically put some

kind of a stair gate on there and lots of fluffy things round,

kids would absolutely love this.

They could potentially have this as a play area.

Maybe or maybe not somewhere to sleep,

it depends on regulations.

But it does give that all-important flexibility.

So whether it is as a holiday let or as a home, if you can see past the

eccentricities of the layout, this could be a lovely little retreat.

What does a local estate agent make of the property

and its £70,000 guide price?

It's a very quirky little cottage.

Traditionally known as a fisherman's cottage in Brixham.

Something over three storeys, such as this one is seen quite often

in these properties.

Lots of exposed stonework

and everything else really gives it a lot of character.

How much might the completed property sell on for?

When it's done up, dependent on the work that's been carried out,

it could fetch towards the 100,000 mark.

What about the rental market?

Putting the property on the rental market at the moment

could probably get in the region of about £500 per calendar month.

If we looked at going down the holiday let route,

then off-peak it could get £525 a week.

If it could sleep at three to four,

then maybe peak season could fetch around 600 to 625,

sleeping three to four.

Well, there's obviously work to be done

but I think all the intrinsic things you would want are here.

Great location, oodles of charm and it can actually be a really

lovely place to live or a potentially lucrative holiday let.

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

We go straight to Lot 1, a one-bedroom cottage in Brixham.

The guide price is £70,000,

if someone would like to start at £70,000.

Anybody to go at £70,000?

70 I'm in, straightway at the back, £70,000. One more if I can? 70 here.

71 anywhere else? 70. That's on the guide at £70,000. 71 now, 71. 72?

71 here, 72? 72. 73?

No? £72,000 here, 73 now. Or anywhere else?

£72,000, 73 anywhere else?

Any advance on £72,000?

Sure we are all done at £72,000, very, very close.

I can't actually sell that at £72,000, it's very close.

The lot failed to meet its reserve under the hammer

but post-auction, business partners Liz on the left,

and Gervase on the right,

secured the Brixham property with their offer of £74,000.

I met them at the cottage to find out their plans.

Liz, Gervase, great to meet you both. Congratulations.

Tell me why you wanted to buy this place.

Actually, it was one of our private investors that sourced this,

-they found it, they sniffed it out.

-One of your private investors?

Yes, because we invite people to invest with us.

We bought this house with some of our own money

-but also with investors' money.

-Oh, right. How does that work then?

We have little meetings and we say to people,

this is what we do, we refurbish properties,

we sell them on, would you like to have your money make more money?

-More money than by keeping it in the banks right now.

-Right.

She was one of those people

and the idea actually was that she would have this to live in.

It became a bit too complicated so we reverted to our other

exit strategy which was to do it up and sell it on.

-OK, and this is something you both work on?

-We do.

How did this collaboration come about?

We are both property investors in our own right with our own

portfolios, but last year we decided we could work better together,

we could generate more momentum through our investments

so we came together and set up these talks and set up a company

-and we are now working together.

-An interesting time to choose to do it.

What were you both doing before that or what do you do when

-you are not sort of investing in properties.

-I teach flute and piano.

-I have been doing that for 27-odd years.

-Teach flute and piano?

-I do.

But I don't have any pension provision.

I have reached a certain age where it feels like it would be

-a very good idea to be making some provision for that.

-Right.

-And what about you?

-I was a psychotherapist.

-Right!

Piano teacher, flute teacher, psychotherapist,

that sounds the perfect experiences to go into property developing!

Psychotherapist, OK?

How did you make the leap from that into property developing?

I did that for about 15 years and it has kind of got a bit of a life span.

You get tired after a bit. Lovely work.

Always loved houses, always loved architecture.

My husband is trained as an architect,

so it seemed like natural evolution.

Fantastic. Why this particular house then?

Good value. Very good value.

We feel as if we could do wonders with it

and we could add a lot of value to it and sell it on very readily.

-That's the idea, is it, to do it up and sell it on?

-That's the idea.

-It's an ideal holiday let.

-It is.

-Are you going to sell it to somebody who thinks it is an ideal holiday let?

-We might do.

-Why don't you do it?

-You never know!

It is part of our exit strategy actually,

so we know rental values and it could also be a holiday let.

I think we would prefer to sell it on, create a chunk of money,

move on to something perhaps a bit bigger as our next investment.

Sounds like these two have got it all mapped out.

They'll get help along the way from their families, but it will be

a team of builders doing most of the work over a three-week period.

What exactly is on their to-do list?

Lots of things like skirtings, edgings, there are lots of gaps

everywhere, so pulling stuff together with edgings, decorating.

Underfloor heating.

That will be very nice.

We'll probably paint this big stone wall behind us which is

mopping up a lot of light.

And obviously, the kitchen, it just needs re-jigging a little bit.

Clearly, the location is charming but practicalities of building

materials and skips and all of that kind of stuff, not brilliant.

Have you factored that into the whole timescale?

I don't think there's much to kind of get out. Some bits to get in.

Material wise,

we figured there's probably about £1,000 of materials to bring in.

-What is the budget for the works?

-We've got eight, 8,000.

Who actually does the work? Do you get hands-on at all?

We are hoping to this coming weekend. We know how to have a good Easter!

THEY ALL LAUGH

We are going to be prepping as much as we can, really,

and take as much out, for the team that come in,

get as much done as we can, so that just reduces, hopefully,

-our spend a bit and the four of us will have fun, won't we?

-We will.

-We will!

-And how is that working, the idea of working together?

-Is that working OK?

-It is, really well.

And actually, it's quite nice, we delegate roles.

We sort of shuffle down.

We realise who is good at what and, yes, it is working very nicely.

-It is.

-Well, I look forward to seeing how you get on.

It will be interesting to see if it's three weeks!

-He doesn't believe it!

-Prove me wrong.

-Congratulations.

-Thank you. Nice to have met you.

-Thank you.

Well, I certainly think Liz and Gervase got this at a good price

but I think they are underestimating

the amount of effort it is going to take to get it looking sparkling.

Oh, yes, charming turns into a bit of a curse when it

comes to building works and of course, there is that access issue.

How do you think they will get on? To find out,

join us later in the show.

Today, pop pickers, I'm in Brockley, south-east London,

where the vibe is definitely upbeat.

Over the years, the area has had its fair share of artistic

-and musical residents - Gabrielle...

-# They can come true... #

-Kate Bush...

-# Running up that hill... #

And Velvet Underground's John Cale lived around here

when he attended nearby Goldsmiths College of Art.

But the big question is,

whether today's auction lot will put the rock into Brockley.

So the vital statistics.

Three minutes' walk to the shops,

four minutes to the train station, 12 minutes to Canary Wharf,

two-bedroom flat, guide price, 100 grand.

Now this block of flats might not rock the world of architectural

loveliness, but there is parking round the back and

the communal areas look tidy enough, but what about the flat itself?

This ground floor flat has a good solid feel to it

and surprisingly, quite spacious.

You've got a double bedroom here with some storage there.

Another bedroom, can just about squeeze a double bed in there,

but I think it would work.

This bit really excites me

because you've got a separate loo and a bathroom.

You could put a door here and have a really nice big space

to luxuriate in your lovely bubble bath of an evening.

Certainly add a bit of value to this property here.

And also, this kitchen.

A really good size because the flat isn't huge.

You have got quite a spacious kitchen which is a real bonus.

And look at that.

Get rid of these tanks, and this says fridge-freezer space.

You could easily get rid of those and put a combi boiler over there.

Yes, so far, so good, ticks all the right boxes.

# Just when it was going so good... #

Now, this is where it gets a little bit weird

because you've got a little room there which is good for... Nothing.

And a lot of wasted space here.

Somebody has created like a little second hallway

and you don't need it because this is the lounge currently.

Wall's been partitioned. It just wasn't work, does it?

This space is too small, that space is too small.

You've got two rooms which aren't working.

Even if you did bring your sofa in here, your knees would be touching

the wall, it's just not a good thing to have carved this room in half.

I would get rid of that, reinstate this as one big lovely lounge area.

Then, whoever lives here will have a jolly nice time.

Now, a word of caution.

The auction catalogue refers to this as a three-bedroom flat. Really?

One-bedroom, two bedrooms, sitting room, third bedroom?

I don't think so.

That's why you really shouldn't just go by the description

in the catalogue and why we always strongly recommend

viewing a property before you buy at auction.

We asked a local estate agent for his take on this place

and its £100,000 guide price.

Not much work needed in the property. Just a simple decoration, that's all.

And a new kitchen, maybe.

Once done up, what might the property be worth?

After the decoration, the worth is going to be 190,000-195,000.

195? Well, that could mean a pretty impressive profit for someone.

But renting it out may be the best option here.

So what might it fetch if let out?

After renovated,

this could definitely achieve £1,000 per calendar month.

This is a straightforward classic rental in a decent area,

ever improving. Let's see who went for it at the auction.

Lot 195, three-bedroom flat in need of modernisation. 125?

125 with the gentleman sitting down. Well bid, sir. 126 anywhere?

126. 127?

130. 131.

Bidding climbed quickly.

We rejoin the action at 153,000.

New competition at the back. 153, 154 sitting down. 154.

155 at the back of the room. 155,

156, 157. 157, 158?

158. 159? 159.

160? 160.

161? 160, sitting down, with you, been there all along.

160 for the first, 160 for the second.

That is 161. 162.

Against you, nearest me. 162, 163 in the white.

163. 164? 164. 165?

164 with the lady in the aisle. We'll go through this again.

164 for the first, 164 for the second, 164 for the third

and final time.

Sold for 164.

That successful bid of £164,000 was placed by Marilyn, on behalf

of her business partner Fitz who attended the auction with her.

Marilyn and her husband Robert here on the left,

are property developers, and Fitz is their builder of choice.

The three of them are viewing this project as a chance for Fitz

to start building a property portfolio.

I had a chat with Marilyn and Fitz to find out more.

Guys, congratulations, this is great news.

You've got the auction property you wanted. Marilyn, lovely to meet you.

Fitz. Now, I know you work for Robert and Marilyn, don't you?

Yes, I do a lot of work for Marilyn and Robert,

working on a few projects for them.

At the moment, I am working on their son's property.

Yes, doing various carpentry, building stuff.

And how long have you known Fitz?

Oh, quite a while now and we've been talking for quite a while

about, you know, forming a partnership, getting

properties together, because Fitz wants to get his foot on the ladder.

So, we've been going to a few auctions, thinking about the area

and that's basically how we got involved in this property.

So, who owns this flat?

I own this property at the moment but Marilyn and Robert

are giving me a hand to sort this out, but the next project

we'll do, Marilyn's going to own it and I'll return the favour.

Basically what happened is we thought for quite a while

about having a partnership, buying a flat together

and we saw this property and we all went to auction together

and that's what we're going to do, but obviously

when you're in an auction scenario you've got 28 days

and Fitz was going to get a mortgage and we were cash buyers.

-So, Fitz, you managed to get the mortgage in 28 days?

-Just about.

-Just about.

-In fact, it was really touch and go, wasn't it?

-Two days...

-Two days.

-..ran over.

So, had you not been able to get the mortgage, would you

-have been able to have stumped up with the cash?

-Yeah.

-So you have this place covered, you wanted it.

-Oh, yes.

We were going to buy it.

But we hoped that Fitz could get it, it was a bit of a seesaw. Wasn't it?

But you've got it. It's yours and breathe.

So, the mortgage came through just in time

and Fitz can take his first steps towards property development.

With Marilyn and Robert on hand for advice

and help with the decorating, things are looking

good for Fitz's move from carpenter/builder to developer.

But why this particular flat?

I think the location is excellent, near Brockley Station, I mean,

that's really good, very quick into London.

Goldsmiths and the students are great tenants and it's flexible

because quite often students at the moment are finding it quite

difficult so it could be either a two, for two students or for three

students and you can give them the property at a reasonable rent.

So hang on, how are you going to get three students in here?

Well, at the moment, there's

two spaces being divided at the end of the property.

Bedroom here and a bedroom there so you could potentially have

three bedrooms, a kitchen and then a smaller room where you've got a TV.

Now, you see, I have got to chip in here. I think that room is so small.

I mean, to sit and watch TV in there, well,

you could only watch TV one at a time in there for a start.

I really see this as a good two-bedroom flat.

I just think that little room is too little to do anything with.

Yeah, I agree sort of but I think you've got to be able to be flexible

so whether you... If you need to, you can also take

down the partition wall and just make it back into one big room.

-But see how the market goes really.

-What about that kitchen?

Because at the moment there is this massive void with this huge big old

water tank there that you can just get rid of and open the space up.

Oh, yeah. That's what we plan to do. I mean, we're looking to get rid of that

and then just take the kitchen through as an L-shaped kitchen.

It may be possible to have a breakfast bar on the other side.

It's big enough to do, so...

Breakfast bar sounds fine but keeping it as a three-bed flat,

well, I think I've given my tuppence worth on that, although maybe

that's what this is all about.

Hard cash and getting the best possible return on their investment.

So, on that note, what's it all going to cost?

Maximum, well, I don't want to spend any more than, say, maybe 10,000,

because a lot of the work is going to do be done myself anyway

so, I think probably it'll be a lot less than that

but just on the safe side, say £10,000.

-Somewhere between five and ten.

-Yeah.

-Oh, it's come down considerably!

-Now I'm panicking!

-It might be ten, it could be.

-Ten is the worst-case scenario.

-Depends what it is, doesn't it?

-Five, ten, oh, dear.

-It depends on how that tank...things like that.

Taking, you know big things like that out.

Like I say, I've got all my guys that work for me anyway.

I've got plumbers, electricians, all sorts of guys.

And who's going to be checking up on the project?

Well, I'll be here most of the time anyway because like I said,

a lot of the work's going to be done by myself and Robert.

Just call people in as and when we need them.

And putting the kids in here. Putting your son in here.

Oh, yes, yes, my son, he's off uni at the moment

so hopefully I'm going to get him

and a few of his friends down to give us a hand.

So, how long have you got to do it? How long to complete the works?

Well, I've given myself three months to get everything all tidy

but I think it should be done a lot sooner than that.

Shouldn't be a problem.

I know you're going to do a grand job.

-It's been lovely meeting you both. Thank you.

-Thanks.

-Good luck.

So, Team Fitz are going to get this place done for 5,000 to 10,000.

I think it's going to be nearer the upper end of that, don't you?

And this wall? Well, it's got to go.

You can find out if it does later on in the show.

Coming up, there's a big surprise in store at this Derby mid-terrace.

The house is nice but the garden...is spectacular.

In south-east London, Fitz has been getting pointers from seasoned

developers Marilyn and Robert.

They look after me, I look after them, so...

we work as quite a good team.

But first, the fisherman's cottage in south Devon is now shipshape.

We've found out how to work together and it's been very successful.

Back now to the pretty fishing town of Brixham on the south Devon coast

and this quirky one-bedroom fisherman's cottage which had

already been partially refurbished.

Property developing business partners Gervase, on the left here

and Liz on the right, bought it at auction for £74,000.

The duo have an intriguing model for funding their developments.

They put up some of the money

and then look for investors to join them on their renovations.

We have little meetings and we say to people this is what we do,

we refurbish properties, we sell them on.

-Would you like to have your money make more money?

-Oh, right.

Rather than by keeping it in the banks right now.

With an investor on board, Gervase, Liz, and their other halves,

Lee and Bob, were going to oversee a team of builders.

They were hoping it would take three weeks

and £8,000 to get the cottage ready for the resale market.

Well, eight weeks after our first visit, we're back to see

if they've created the perfect seaside bolt hole.

# Let's go Got to get away somehow right now

# Got to find a way out of town

# Going to run away there's no better time gotta get away now

# Anywhere you want, don't care Just as long as you are there

# All I know is that we can't stay another day, got to get away now. #

Well, I think this is a strong contender for catch of the day.

The fisherman's cottage is now shining like a new lobster pot.

They've brought it all together beautifully.

And while I thought the island in the kitchen should go,

I really like what they've done here.

The island in the kitchen originally was the other way round, basically.

So, there was a very, very narrow walkway going from the front door

over to the stairway up to the first floor

so, we realised actually it could just swivel around so we did that.

The other thing we've done in the kitchen was a lot of tiling

so we tiled around the stove and around the kitchen sink.

Sanded and painted the floor which really lifted it

and has made it very light.

Throughout the house you get the feeling that they've

thought long and hard about every little detail and I just love it.

Keeping the character of the property has been a juggling act

because we didn't want it to be too much exposed stone

but equally we also want it to be a functional modern-day living property.

So, we've tried to mix the exposed stone

and the wooden beams with actually modern tiling and modern facilities

so we have the under carpet heating and the under floor heating in the bathroom.

As well as a nice open fire and the solid fuel range in the kitchen

so we tried to mix all of that together.

We think we been very successful in doing that.

At the top of the house,

Liz and Gervase have been very clever in the way they've thought

outside of the box that was the bedroom and mezzanine above.

Yes, so in the bedroom, there was

a massive cupboard in this corner here, so, got rid of that

and we've created, I think it's created a really nice big space here.

The mezzanine which the previous people had used for storage,

we thought let's take the mattress up and see what it looks like there.

So, we've created a sense of, well, you could use that as a sleeping platform.

Which then really frees this space up to be whatever you want.

A dressing room or study, office space.

Put lots of sockets in so you can use it for a whole load

of different things, so, a little space but I think we've really created

a sense of it looks quite grand now for a little cottage.

Gervase and Liz both have their own property portfolios

but working together alongside private investors

has been a new departure for them, so how has that gone?

We've worked very well together.

I've been working with my partner Bob and Gervase has been working

with her husband Lee, so it's been the four of us working together.

And, um, a very good property to do.

Um, we've find out how to work together

and it's been very successful.

Jolly good. So let's talk facts and figures.

Did they manage to complete the work within their three-week timescale?

The project did take three weeks.

Well, the builders were here for two weeks.

Then we did decorating for about a week

and then we probably did an extra couple of weekends of finishing.

What about their £8,000 budget?

Our total spend on this is £10,400.

Is the plan still to sell the property on in the hope of making

a return for themselves and their investor?

It went on the market two weeks ago. So the plan is to sell.

We have had 14 viewings in those two weeks.

We've got three people measuring furniture and looking

at putting offers in so we might actually get an offer today.

Goodness, no messing around here then.

Liz and Gervase's renovation costs of £10,400 added to their purchase

price of £74,000 brings their total outlay to £84,400.

We asked two local property experts for their thoughts

on the finished product.

It's been excellently refurbished.

It's a really, really good standard.

Proper country,

fisherman's cottage style that you really would hope to see in Brixham.

The kitchen is presented to an exceptional standard and

it's nice to see bespoke units

rather than off-the-shelf components.

I think that really adds a touch of character to the property

and presents it in its best possible light.

There are options here.

The experts think it might let for between £500 and £550 per month.

Which would give Liz and Gervase a yield of between seven

and eight percent.

Or they might get up to £700 per week in high

season as a holiday let.

But the ladies and their investor are selling on.

So what resale value would the experts put on the cottage?

If I were to put on the market, I would probably put it on at 125,000.

I would hope to achieve towards £120,000 for the property.

We would expect it to achieve approximately £125,000.

Those resale valuations would mean a profit before tax

and expenses in the region of £35-40,000.

Which is very healthy indeed.

So are Liz and Gervase fired up by what they have achieved here?

We're really pleased with this.

I didn't imagine we could lift it quite as much as we have.

It's fantastic. It's turned out brilliantly so really thrilled.

We all want to stay here now.

But dropping anchor here was not an option.

Shortly after filming, they accepted

an offer of £125,000 on the property.

They are now on the lookout for another project in the Brixham area.

Today I'm in the village of Little Eaton,

just four miles north of Derby.

Little Eaton may not be full of sushi and tapas bars,

but it does have a history of pulling in the crowds.

As lovely as Little Eaton is, it doesn't necessarily strike as

somewhere that was a holiday resort, but it was in the 1900s.

People would flock here on trains or by canal boat to enjoy

the rural setting, peace and tranquillity and the local tea rooms. Marvellous!

Nowadays, it may be more popular with commuters rather than

day-trippers, but it is all very pleasant.

Well, just about half a mile from the village centre is

the property I'm here to see. It is on this fairly busy road.

Other neighbouring properties have created an off-street parking

area which is a good idea.

However, it's not as simple as that.

This is the property I'm here to see.

As you can see, it has got the most spectacular garden, so you

are going to have to lose that to create somewhere to park your car.

Still, 98 grand was the guide price, two bedrooms. Let's take a look.

# How many kinds of sweet flowers grow in an English country garden? #

I think I will leave the plant naming to Monty Don.

Nice though it would be to gad about the greenery, it is

time to see what is inside.

So, is it from Kew Gardens to Buckingham Palace?

Well, let's find out. Through the door, stairs up to the bedrooms there.

A bit strange to be faced by that pillar, I have to say

but through into the front living room. Nice floorboards.

They are bit grubby at the moment but love to see those stripped back.

Not a bad size space. Lots of light coming in through the window.

Obviously at some stage somebody has put this archway into the kitchen.

Before that, I notice storage radiators.

So maybe no central heating, which is worth consideration.

You have a nice open fire, which is good to have.

Through to the rear of the property, we have this kitchen.

It is a really nice-sized space,

spanning the whole width of the house. It is just very usable.

Again, really nice floorboards you could strip back

but you have to be careful it would not be slippy.

Spend a bit of money in here and you would have a lovely family kitchen.

It leads straight out onto the patio area at the back.

It is a great start.

You'd probably want to replace the kitchen units

and work tops but that needn't break the bank.

As far as the layout is concerned, it works fine,

so onwards and upwards.

So, upstairs, two bedrooms,

one at the back there and one at the front.

But quite interesting from my point of view, there is

a bit of a temporary ladder here

but it does lead up to a loft space which has been boarded out.

I think in the future it could provide maybe an extra bedroom.

I say that because the bathroom is certainly big enough to take it.

It is huge compared to the size of the rest of the upstairs here.

But, you know, big bathroom space is great for families.

I think if you stuck a third bedroom up there, put a dormer in,

this would meet perfect sense to keep it as big as it is.

Lots of towel drying space.

# Splish-splash I was taking a bath

# On about a Saturday night... #

And that's it for indoors, let's see what's out the back.

So, out through the kitchen,

and onto a really nice-sized patio.

But then, you thought the front garden was good, just come with me.

Come with me.

Take a look at this. This is straight out of a gardening manual.

There are all sorts of shrubs and bushes and washing

and drying things and this beautiful cherry tree here.

You could almost lose yourself in this garden.

There is a pond with frogs.

A garden like this takes years,

not to mention thousands of pounds to establish. It is joyous.

Then, to cap it all, at the end you have open fields.

For me, the house is nice,

but the garden is spectacular.

# I went to a garden party

# To reminisce with my old friend... #

We invited the auctioneer who sold the property to

give his take on this

mid-terrace with an auction guide price of £98,000.

I think the house itself is in good order.

I think there are two things that are important.

One is that that roof is ready for renewing, fairly major expenditure.

And the other issue is to do with parking.

We are on a busy main road so perhaps the first thing you have to do

is create a parking space in the front garden.

What does he think of the potential to rent this place out?

It is a very good rental area,

so I would say it would have a rental value of about £500 a month.

How much could it sell on for once done up?

Once it is renovated, it would have a value probably of about £150,000.

Sometimes you need real imagination to see what auction properties

could become, but not in this case.

The house itself, yes, it needs a bit of money spent on it,

but it could be gorgeous.

And the garden - that speaks for itself.

I'm sure it was a very popular lot when it went under the hammer.

Lot 68.

It's a two-bedroomed town house, it needs a bit of upgrading

and improvement.

95 to start me.

95. 90 to get on. 90,000.

Thank you. 90,000 I have.

91 at the back.

91, 92, 93.

94, 95, 96.

97. 98.

99. 100.

101, 102.

103. 104.

105.

It was a two horse race until bidding reached £116,000.

116. 117. 118.

118, 119. 119.

120.

120. 121?

£120,000. Nope?

120,000 - once somewhere else.

At 120. Going once.

Going twice. Third time.

It's yours, 120, well done.

It was Selina and Chris who secured this mid-terrace

with their final bid of £120,000.

Selina is a team leader for student records at Derby College

and Chris works in security at Derby University.

I met the couple at the property to find out their plans.

-Selina, Chris, lovely to meet you both. Congratulations.

-Thank you.

Tell me why you wanted to buy this place and I hope you're both gardeners!

I'm not really a gardener. Erm...

we were looking for a home cos Chris sold his apartment

and went to a mortgage place to see how much we could borrow.

-And Christopher asked if we could get one on an auction at all.

-Oh!

-Yeah.

I'd not actually shown Selina the property, but speaking to

the mortgage adviser, I dropped it in the conversation.

I knew we'd need a surveyor's report.

He said as far as his bank was concerned, as long as it's got

a sink and a toilet, they'd be happy,

depending on what the surveyor said.

Got the surveyor's report straight the next day.

A week later, we're in the auction room bidding on a house.

If buying their first home together wasn't enough to cope with,

Chris and Selina have another important and very imminent

legally binding contract on the cards.

-We're getting married as well in the next four weeks.

-Four weeks.

-Four weeks from now?

-Yeah, doing everything at the same time.

The idea was to buy a property after we were married.

-But this opportunity...

-You drove past and saw this one.

I'd seen it on the internet and I'd driven past it. I know the area.

I've done a property up before with my father, so I kind of know

roughly what I'm looking for and what to steer clear of.

-Yes, it was all...

-Go, go, go.

-Go, go, go, yeah.

So, tell me a bit more about your wedding.

Well, we've been together for ten years now.

Finally got around to getting married.

And we're getting married in four weeks' time at Derby Cathedral.

But luckily, I'm very organised. I have a folder which is about that big!

-I'm collecting my dress on Saturday, so I'm really excited.

-Oh, are you? Wow!

-Yes, can't wait.

# Hey, baby

# I think I want to marry you. #

Well, these two certainly don't do things by halves,

but once they come down from cloud nine after their wedding,

what are the plans for their new marital home?

From the top first, aren't we? Doing the roof first.

Yeah, definitely needs the roof.

Make it liveable, if anything.

We're going to get quotes to do the windows and the kitchens and everything sort of else.

Get the bedroom sorted, the bathroom,

just general sort of TLC, really.

Sand the floorboards in the living room.

And the timescale for doing all the work is what?

We're going to take our time with it, do it properly.

-What do you reckon, six months to a year?

-Six months to a year, yeah.

But you're going to live in it during that time?

Yes, definitely, yeah.

And what kind of budget have you got set aside?

-About 10,000.

-10,000 for now. Yeah. That's just to get it liveable.

So that will pay for the rewire, the plumbing, the roof.

The roof's going to be the major cost.

And just get it liveable, really, then we can assess it from there.

Great. What are you most excited about?

Well, first home for myself, really.

It's our first home, so I'm really, really excited about working on a project together.

-It's like another project after the wedding.

-That's it, yeah.

Yeah, yeah. I'm looking forward to stripping the walls,

getting a hammer on a few walls, maybe, I don't know.

And a vegetable plot for me. That's what I want to the very end.

-A vegetable plot. Being self-sufficient.

-That's it, yeah.

-That's the plan for the bottom of the garden.

-Definitely.

Maybe a little shed or greenhouse so we can grow veg.

You're planning on putting in a driveway!

-Not all the way back.

-Not all the way, no!

Obviously, we don't want to get rid of too much of the garden.

It's a lovely garden. Whoever previously lived here

spent a lot of time getting it to that standard.

It's just a bit overgrown at the moment.

So maybe if we can just get a car plot

on the front there, I think that would be enough, really.

What about plans for a honeymoon?

-It's... Well, you're standing in it, really!

-Oh, really?

-Yeah.

The honeymoon's gone out the window now.

It's going to be spent on, well, a roof.

-Right.

-So, we'll be here.

Because we work full-time, it's hard to work on this place

and that's the time we've got free to get as much done as possible.

You literally will spend the two weeks you would have been on honeymoon sanding and stripping?

Yes, it doesn't get more romantic than that.

Well, in a way I think it's very romantic. It's great.

Listen, congratulations to you both on lots of levels.

Well done, and we look forward to seeing how you both get on.

-Thank you.

-Will do.

Well, how wonderful that Chris and Selina have got this as their first home together.

They are embarking on two of the most stressful things you can do in your life,

moving house and getting married at the same time.

Still, with a garden like this,

maybe a honeymoon here won't be such a bad thing.

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

Well, they say time can be a great healer

but it can also be an enemy if you're up against a deadline.

What has happened to those properties since we last saw them?

It's the moment of truth, let's go back and find out.

Back now to Brockley in southeast London,

an area of musical note with enough pop star connections to form its own supergroup.

Was this ground-floor flat

set to top the Homes Under The Hammer charts?

It was bought at auction for £164,000 by builder Fitz,

with help from experienced property developers, Marilyn and Robert.

The flat had two good-sized bedrooms and a strange partition

in the sitting room which Fitz and Marilyn were intent on keeping.

We could potentially have three bedrooms,

a kitchen and then a small room where you have a TV.

Now, I have got to chip in here.

I really see this as a good two-bedroom flat.

I just think that little room is too little to do anything with.

On a budget of £5,000 to £10,000 and a three-month timescale,

builder Fitz was going to take on most of the work himself

with Robert and Marilyn helping out where necessary.

Three months after our first visit, we're back.

Fitz and Robert are on hand to show us round.

So, will the Brockley flat be a hit or a miss?

MUSIC: "Rocking All Over The World" by Status Quo

It's a hit, Fitz!

The two bedrooms now look bigger and brighter.

The loo and bathroom have been freshened up and keeping them separate

actually makes sense for the rental market.

The new kitchen looks smart

and taking out those water tanks was definitely a good move.

Saving the best till last, the sitting room is just so much better

with that partitioned wall removed.

In the lounge, we decided, after about a month or two,

to take it down because after seeing the neighbour's property upstairs

and saw how big the lounge was once the wall was down,

it just made sense to take it down and it looks a lot better as well.

Nice open-plan, it looks good.

I hate to say I told you so, but...

# I told you so

# Don't wanna brag, but you already know... #

Now, Robert and Marilyn are seasoned property developers

and they've taken Fitz under their wing to help him start building a property portfolio.

But just how hands-on have they been on this renovation?

We just try and chip in where we can and be of some assistance

and I think he's found that useful.

You don't want to be a hindrance but you have to recognise that

really, this is his baby now and he's got on and done it.

With just a couple of little odds and ends to finish off,

Fitz has pretty much kept to his three-month timescale,

but what about the £5,000 to £10,000 budget?

I think it's come in at about £7,500 or £8,000.

Probably because a lot of the work was done by myself and a few friends helping me out.

It worked out quite well.

If we call Fitz's renovation costs £7,500,

then add it to his purchase price of £164,000,

that brings his total outlay here to £171,500.

We asked two local estate agents

for their opinions on this refurbished flat.

It's done to a very good standard.

It's in neutral colours and I think it's well presented.

I think it's done to a very good standard.

I think the size of the property is very impressive as well.

And if it were to sell, what do they think the flat could fetch?

I think this flat could resell for about £210,000 to £215,000.

This flat could resell for anywhere in the region of £210,000 to £220,000.

Those resell valuations would give Fitz a profit before tax

and expenses of between £38,500 and £48,500.

That is pretty darn good, but his plan is to find tenants,

so what kind of rental income would the experts predict?

This flat could rent in the region of £1,100 to £1,200 per calendar month.

This flat could rent for between £1,100 to £1,200 per calendar month.

Those rental valuations would give Fitz a yield of around the 8% mark,

which is very healthy.

So, is this going to be the start of a glittering career in property development for Fitz

and will he be going solo?

I'd like to do a project on my own, yeah, but I would also like to work with Marilyn and Robert again

because they look after me.

I look after them, so we work as quite a good team, so it would be good to do a project with them

as well as do one on my own.

Back now to Little Eaton, Derby, and this two-bed mid-terrace

which Selina and Chris bought at auction for £120,000.

There was plenty to do to turn this into their first home together,

but renovating the property was not the only thing that was going to keep them busy.

-We're getting married as well in the next four weeks.

-Four weeks?

Yes, doing everything at the same time.

-What about plans for a honeymoon?

-Well, you're standing in it, really.

-Really?

-Yes, the honeymoon has gone out the window now.

It will be spent on getting a roof.

You're spending the two weeks that you would have been on honeymoon sanding and stripping?

Yes, it doesn't get more romantic than that.

Well, in a way, I think it is very romantic.

Selina and Chris set themselves a budget of £10,000

and a timescale of between six months and a year to make the place their own.

Two years and one month after our first visit, we're back, and what do they say?

New house, new baby.

Meet Mum, Dad and 12-week-old baby Scarlett.

So, let's see what the new family are calling home now.

# Baby, baby, baby, oh

# Baby, baby, baby, no

# Baby, baby, baby, oh

# Thought you'd always be mine

# Baby, baby, baby, oh

# Baby, baby, baby, no

# Baby, baby, baby, oh

# Thought you'd always be mine. #

What a transformation from a shabby shell to show-home chic.

It's hard to believe that Selina and Chris have also got married

and started a family since we were last here.

Yeah, we couldn't squeeze any more in.

I think we've done everything that we were supposed to.

The only thing we haven't managed to squeeze in is a honeymoon.

-That's the only thing.

-That budget went on the...

-This and the house.

It's more important. It was, wasn't it? Yes.

As far as the renovation was concerned,

their top priority was to replace the roof.

Then they could set to work on the inside of the house.

Selina and Chris have cleverly re-jigged

the layout on the first floor.

This was the bathroom, and it's now turned into a second bedroom.

It was originally going to be an office, then Scarlett came along

and we decided to make it into a nursery,

so it's worked out perfectly.

But the process of this room meant

because the bathroom was here beforehand...

The original bath was leaking,

so it meant that the joist was saturated, so we had to replace

the timber on the joist and it also enabled us to put new oak floor down,

which Chris sourced and installed himself as well.

We're really pleased with the results and really pleased that we decided to

turn this into a second bedroom, so it worked out perfectly for us.

The master bedroom looks like it's just stepped off the pages

of a magazine.

Even though the family bathroom is smaller than it was,

they've still managed to fit in a rather swish four-piece suite.

Chris wanted a walk-in shower effect and I wanted a roll top bath.

So what we did to compromise, we had a walk-in shower as such,

but we've cheated by having a slimline tray

so it gives the appearance that you can walk straight in

rather than a step.

Also we put a roll top bath, which was here

and just looks lovely at night-time right next to the glass bricks.

Those glass bricks work really well, and they also give an extra

dimension to the staircase, which is now looking very smart indeed.

Downstairs the layout is the same as before,

but it's all been given a new lease of life.

Out front, they've created off-street parking

and are just waiting for the council to drop the kerb.

And out back, new French doors leading onto the garden

are a real bonus.

So basically out here what we've done is just gravelled it for now,

just to tidy it up.

In the future, we're looking to perhaps redesign it

and raise it so there's not such a step coming out of the French doors.

Basically, we've tided up the borders

and really didn't need a lot changing.

It's a really nice cottage garden.

It's nice to be able to enjoy it outside in the sunlight today

with a glass of wine, and when Scarlett's older she can play in the

garden and, yeah, we're really pleased with what we've achieved so far.

And so you should be, Chris.

The couple have done most of the work here themselves,

with Selina lending a hand throughout her pregnancy no less.

Their timescale did slip, as did their budget from 10,000 to £18,000.

But the finish here is top notch

and they have had rather a lot on their plates of late.

I thought it'd be ready in six months. It wasn't.

You know, two years later...

But I'm glad, because the reason why it's taken us as long as it has

is because we wanted to ensure that we saved up per month

so we weren't getting out loans or credit cards,

everything was we save up and we do the next job, do the next job.

But as a result of having that time,

our ideas were able to evolve over the two-year period.

I think that sort of helped.

Yeah, that's where the time has come into it

and that's the way you go on.

Yeah, so, we also wanted to do a decent job.

I think it's high standard.

Yeah, high standard and quality and that, you know, it has a cost to it.

When you add their purchase price of £120,000 to their renovation cost

of 18,000, Chris and Selina's total outlay on their new family home

comes to 138,000.

We asked two local property experts

for their thoughts

on all their hard work.

First impressions of the property are fabulous.

It's a lovely spot which is great,

and the style they've done it in has really lifted it. It looks fantastic.

This is a perfect home for a new family.

There's lots of outdoor space,

off-road parking to get the buggies in and out of the car.

Great spot, very close to the city centre

and there's lots of communal areas in the local proximity.

The experts agree that the mid-terrace could let

for around £600 per month, which would give the couple

a yield of around 5%.

So what might it fetch on the resell market?

I would suggest a resell value at the minute of around £150,000.

I think we could go for a slightly inflated figure

which I would put at £165,000.

Those resell valuations would give Chris and Selina a profit

before tax and expenses of between £12-27,000.

But I get the feeling they're here for the long haul.

Yeah, I think even if we were offered loads of money,

-I still wouldn't want to sell.

-No.

-Definitely not.

-Yes. Pleased. Very pleased.

-Yeah, really pleased.

Well, that's it for now. We'll be back with more action

from the auction rooms all over the country next time.

So make sure you watch Homes Under The Hammer.

-Goodbye.

-Goodbye.

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