Episode 54 Homes Under the Hammer

Hello. Martin and I can hardly believe it -

over the many years we've been making Homes Under The Hammer,

we've seen thousands of people take the plunge and buy their property at auction.

Yes, but it can be a bit of a bumpy ride,

so strap yourself in as we head to the auctions.

This programme isn't just about bricks and mortar -

it's about real people and the stories they tell.

Yes, and we never know how things are going to turn out -

will it be a dream project or a nightmare?

Well, here are the properties that sold under the hammer.

Coming up...I am in Derbyshire to discover

how this huge semidetached property rose in value by almost £50,000.

Then, if you thought that was good, in London,

this three-bedroom property could resell for an extra 150,000.

And we revisit this detached bungalow in Kent

to see the final transformation which almost doubles its value.

All these properties have been sold at auction.

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

-when they went under the hammer.

-It's yours.

Today, I am in Ilkeston, one of the largest towns in Derbyshire.

A popular market town with a history rooted in mining,

Ilkeston is between Derby and Nottingham.

As it's only nine miles from both cities,

it's an obvious choice for commuters.

I am here to see a large semidetached house with a twist.

The twist is that part of it has already been converted

into a self-contained flat and that currently has a tenant

bringing in £300 a month, so that might be all right,

you might want to keep that. As a downside, it does mean

that if you wanted to start work on the whole building,

you'd have to wait until their short hold tenancy agreement finishes.

In the meantime, I can't get in around the front,

so it's round the back for me.

The self-contained flat is accessed from the front door,

and although we couldn't get in today,

I'm told there's a kitchen, sitting-room and bedroom with loo.

To access the part of the house we can see,

I will use the side entrance

to an area that could be used for off-street parking.

There's also a lovely expanse of mature garden.

Nice bit of outdoor space - although most of it is laid to concrete,

there's also a good-sized double garage,

but we finally find our way in and into the kitchen.

OK, it's light and airy, nice big window,

units, very dated,

and I think they were inexpensive when they were put in,

so you definitely want to do something there,

but in terms of the layout, I am liking what I am seeing.

Sort of like a little window thing there or hatch thing,

which opens out into this, which is a dining sort of area.

Very, very good for families, I would say.

You've the kitchen there, put a sofa in here, somewhere for kids to play.

It doesn't look to be in too bad condition, so...

now we've finally got in here, I like it.

So, not a bad start. Let us take a look upstairs.

Well, the hugeness of the house shows no signs of abating,

as we stride purposefully upstairs onto the first-floor here.

Bedroom at the front, you've got a shower and bathroom there,

loo here, smallish bedroom there, but it's got it's sink unit,

which is good news. Another bedroom there -

it all feels really nice and light

because of the colour of the paint work, which is great.

A box room there, and then through into a really nice upstairs lounge.

You've got an open fire, this lovely bay window

with views out across to the hills,

and, you know, what is there not to like?

This house has been sliced and diced a bit,

which rather takes away from the otherwise grand Edwardian spaces.

These two bedrooms on this level are separated by a stud wall,

so would be easy to turn them back into one larger room.

Upstairs on the third floor, there are two more good-sized bedrooms

as well as a handy bit of loft space.

Yes, there's some work to do here,

but it's large and all in pretty good nick.

# Great big ole house... #

We've asked someone from the auction house which sold it for his opinion.

It's a very, very nice house.

It's been converted in a very unusual manner

to provide a self-contained flat

and also a sort of five-bedroom property upstairs.

It's an unusual layout.

The main fabric of the property's very nice indeed.

Everything needs doing to this property, I'd say.

The roof looks like it's ready for an overhaul,

and once you start incorporating the flat into the house

and making the two back into one,

I think you'll pretty much do everything there is to do.

'The roof repairs are definitely a cost to be factored in

'when budgeting for the renovation.

'How much might need to be spent here?'

I would imagine you'd spend at least £40,000

bringing this house back into one property.

You could spend as much as you want on kitchens and bathrooms

and that kind of thing, but at least a minimum of £40,000.

'How much is it worth before and after renovation?'

The property in its present condition is worth somewhere in the region of £125,000 to £130,000.

Once renovated, it's difficult to be precise,

but I think if you do a really good job on it,

it's going to be worth the thick end of £200,000.

'So, there's room for a profit with this property.

'What about as a rental?'

At the present, I'd expect this property to achieve in the region

of probably £250 to £300 for the flat downstairs.

You'd would probably get an extra £350 to £400 for the...

for the accommodation, the main accommodation.

Well, a lot of house for the money and, for the most part,

in extremely good condition. One thing, though -

if ever you buy a property which has tenants in it already,

your solicitor must check out the tenancy agreement,

because that could be a big issue.

In the meantime, let's find out who bought it when it went under the hammer.

Lot number 19,

a very large Victorian three-floor house in Ilkeston.

Most of it is vacant, and that's five-bedroom accommodation.

There is a small one-bedroomed flat,

front part of the house, ground floor,

but the majority of the house is being sold with vacant possession.

Excellent investment potential to this one. What am I saying for it?

Start me on this, 125?

125? 120.

120.

115 then, on the guide price.

There's a lot of bricks and mortar for the money. 115,000?

110, to start?

110 here, thank you.

£110,000. At 110. 111 is bid at the back.

112. 113.

114. 115.

116. 117.

118. Keep doing that, you'll be all right. 119.

120, you've got a good feel about it?

120. 21. 22.

Don't put it down yet. 23. 124.

It's getting a bit iffy. 124. 125?

124,000 on the front row. 125?

It's in the market, make no mistake.

We're going to sell it, the bid is £124,000.

For first time, 125. 126.

126. Is that it? A one-bid wonder?

£126,000, and you've put him into stamp duty.

£126,000. 127, somewhere?

You can't retract it now. 126,000. Once,

twice, third time...

It's yours, 126. Thank you.

Was it a bit nerve-racking?

'That winning bid of 126,000 was made by school teacher Neil,

'who, along with his partner, Kirsty,

'and their three children, will make this their family home.

'It will certainly make a change from the end of terrace where they currently live.

'I met Neil and the property to hear what they had planned.'

-Neil, good to meet you.

-You too.

-Congratulations.

-Thank you very much.

A lot of house for the money, I thought.

Huge, isn't it? Um, yes, we wanted somewhere bigger, but,

we really didn't think it would be this big, so this is fantastic.

What was it you liked about it?

-Looking out the window, the garage, in my case...

-Why?

-I'm building aeroplanes, so...

-What?

-I want to build an aeroplane.

I started building it on the kitchen table in our end terrace,

but it's too small to actually assemble anything.

-Like a model aeroplane?

-No, full-scale.

It's a single-seater light aircraft.

It's a wooden Spitfire, at the end of the day.

-Right. So, have you got a licence?

-Yes, just under two years ago.

-Oh, well done.

-It was, sort of, one of my targets after I survived...

-Survived?

-Cancer.

-Cancer?

-Right, tell me more.

-They basically said that

they didn't reckon I'd see my son's first birthday.

-And how many years ago is that now?

-In October, it will be four years ago.

Four years ago. Have you had a clean bill of health now?

Since March, 2008, yes.

-Oh, well. Wow.

-They're were really surprised, so...

-All I can say my oncology team are fantastic, and they fixed me.

-Really?

-Plus the fact I don't give up for a fight.

-Well done. Congratulations.

And has that changed your attitude towards anything?

It does change the way you look at life. You know,

days seem to...before used to blur, but every day is a different day. It's...

Just take it as it comes, make the best of it and...

just keep going.

MUSIC: "Don't Worry, Be Happy" by Bobby McFerrin

# Don't worry

# Ooh...

# Be happy

# Ooh... #

So, we've got ourselves a garage, for our plane.

Not exactly what I would have thought, but there you go.

What about the rest of the house? What was it you liked about that?

The building generally, even though it's over 120 years old, seems to be in relatively good condition.

There is a bit of damp, the roof needs a bit of work,

quite a bit of work on it, probably.

We've not look any further than that,

but it's just the fact that it's quite a solid house.

It's in an area where Kirsty's got family.

We'll start with the kitchen... is going to be changed,

it won't stay like this, We're not sure about the floor yet. It's undecided about that.

Basically, we like the idea... it's a kitchen-diner.

Whether or not we knock this part through here, through a bit more, so it's more open...

-What are you going to do about the self-contained flat? It's currently got tenants, hasn't it?

-It has, yes.

Well, at one point, we did actually think, if we had to sell,

if we couldn't sell the house, and we had to use the full mortgage just to pay for this place,

we would have kept it on, but as we looked around it, we didn't think

ourselves it was actually fit to be inhabited, we weren't happy with it.

So, for that alone, we did say that, in the end,

we would actually keep this self-contained flat. And, um...

I think it's a short let for six months anyway, coming to the end,

so, they basically have been found somewhere

-to move on to by their agent they were with, from what I can tell.

-Right.

Hopefully, they'll be happy and get somewhere nicer than what they're in at the moment.

Hopefully, when we finish it, it will look better as well in there.

'I'm really delighted Neil plans to turn this back into one house.

'As well as sorting out the roof and checking the electrics and heating system,

'they also plan to play around with those stud walls on the first floor.

'That could create one larger bedroom instead of two small ones.

'Neil plans to do a lot of the work himself, with the help of friends and family,

'which will certainly help on the budget front.

'Unfortunately, Neil and Kirsty

'have been unable to sell their current home,

'so, money's pretty tight, to put it mildly.'

MUSIC: "Money's Too Tight To Mention" by Simply Red

So, how have you financed this?

We've remortgaged the first house, for some of the mortgage,

and the rest of the mortgage has been made against my...

-my salary for this one as well.

-Right, OK.

And does that leave any budget for the renovation works?

Yes. Sticky situation, that.

We've got between 8,000 and just under 10,000 left

by my reckoning, at the moment, which is not exactly where I'd like to be.

-No.

-I was hoping to have 20,000, 25,000 left,

because I want to put a solar panel on the top for hot water as well.

Um, so, at the moment, we're looking,

if we don't sell a house in the next month or two,

once we start the renovations, then we'll to have to rent our house out till the market picks up.

At which time, if that happens, then we'll sell that one and then

finish the renovations to the standard we want,

the solar panels and the extra luxuries

-that we maybe won't to be able to put in first time round.

-Right. OK.

At least you've got the place...

That was the main thing. There was no way we were letting this go.

-Well, what an amazing story. Congratulations.

-Thank you.

Good luck with it.

And we look forward to seeing how you get on.

-Thank you.

-Congratulations.

-MARTIN LAUGHS

Well, it may look like a double garage to you and me,

but for Neil, it's an aircraft hangar for his project.

And after all he's been through, we wish him all the best with that.

In terms of the house, well, lots of work to be done,

and I'm a bit concerned about that fairly small budget.

Find out how he and the family get on

turning this place into the new family home later in the show.

MUSIC: "Love Cats" by The Cure

Who can say they live in an area

with a giant fibreglass cat sculpture?

The people that live in Catford can.

Created in 1974 by a British architect,

it's considered a local icon in this part of south-east London.

Question is, will today's property be purr-fection,

or will it make me paws for thought?

Let's find out.

MUSIC: "Hey Kitty" by S Club

'Feline theme aside,

'Catford is also known for affordable period properties

'and some pretty good travel links.

'It takes just 30 minutes from Catford to London Bridge,

'and you can be at London St Pancras station in just 32 minutes.'

I'm here to see a terraced property that had a guide price of £160,000.

Considering the average three-bedroom property in this area

costs 270,000 to buy, that guide price represents really good value.

But here is the catch...

the catalogue description

tells me it's presented in poor decorative order.

If the auction catalogue is flagging that up,

it certainly doesn't bode well.

# You don't have to worry. #

From the outside, things look OK.

The roof seems to be in decent order, and there are lovely sash windows

and the original brickwork to get excited about.

Well, the exterior of this house certainly lacks kerb appeal

with all those sofas dumped out there.

Actually, it's not too much of a disappointment on the inside.

Yes, it is dated, it is tired,

it could do with all this woodchip coming off,

and the carpets need to be updated, but it feels very substantial,

the bones are there, it's quite a nice solid house.

So, this is the lounge, and what a fantastic space,

and it comes with a bar.

Now, I know there will be a few funky couples out there

that think, "Yeah!" But actually, if you are looking to make

money from your property, it is best to get rid of it.

But there is so much you can do in here to really upgrade this space.

You know, one good thing you could do,

and I have seen it on many properties, is to think,

potentially, about knocking this through

and having a lovely door so you've got access to the outside.

You need to get rid of these polystyrene tiles,

but you have got beautiful windows to the front.

We've got central heating in here, but again, it is just dated

and tired, so it needs a complete overhaul.

Time, ladies and gentlemen, please.

I am afraid whoever takes on this house will have to call time

on the bar and the hatch.

The place really need updating

and to be given a more contemporary style.

# Everybody says you are looking pretty good

# You have got no style

# Yeah, you have got no style. #

Nowadays, it is the kitchen rather than the living room

that is often the heart of the home,

but this one is too small for that and needs new units.

However, the boiler looks fairly new.

Get it checked by a professional, though -

don't just assume it's all OK.

My guess is that the fire might fail modern safety standards,

so do get it checked by the Gas Safe register.

Also, it has a downstairs bathroom, and yes, I prefer it upstairs.

It needs a total refit anyway,

as it is not exactly in the pink.

# You've got no style. #

Into the third bedroom that is reached from this half landing.

There are two further bedrooms

up the second flight of stairs at the top of the house.

There is one at the front, and one's overlooking the back.

Outside, there is a carbuncle of a lean-to that just has to go.

Beyond that, it's a fantastic 35-foot garden.

So it is just begging for a bigger kitchen with bifold doors

to the outside space that would make this a fantastic home

for modern living and be more profitable.

Another way to add value here would be to create off-road parking

right here.

You only need to walk along this road

and you can see people have done just that,

so a precedent has already been set, which is great news,

but it doesn't necessarily mean you will be given the green light.

You will need to contact your local council

and highways authority to see if it is possible.

Now, fees for dropping the kerb can vary.

You are looking at around approximately £600-£1,000,

relatively inexpensive, but it is a job, I think, well worth doing.

Perhaps it is not exactly desirable to have your car parked

right up under your window,

but this is a permit parking zone, so you'd have to weigh up whether

you wanted to pay for the permit or spend on creating a parking space.

You would have to pay your money and make your choice.

If you do create a parking space, bear in mind that an area

of more than five square metres will require planning permission

if you are not using a permeable material.

This is to prevent flooding, so do seek advice.

Well, lots of possibilities,

so what does a local property agent reckon will be the best approach

for this rather dated terrace, guided at 160,000?

Accommodation, for me, fantastic-size house.

Brilliant for any family, you've got a great sized lounge,

the kitchen has got a lot of potential,

we can make a big kitchen/diner.

Downstairs bathroom is sometimes an issue due to the fact

you've got to walk through a kitchen to get to it.

It's a bit of a stumbling block when it comes to selling.

I always recommend try and move it upstairs.

And if the bathroom was moved upstairs, hopefully keeping

a smaller third bedroom, how much could the house be worth?

This house, if it was done up to a very good standard,

would achieve around £275,000.

What about the letting potential?

We could rent the property out for £1,200 per calendar month.

OK, so it may be in need of some serious TLC and updating,

but there is scope to add real value here,

and that is the name of the game, people.

Let's see who fancied this opportunity

when it went under the hammer.

Right, lot 53, a three-bed house, Catford.

I am not going to go below 170.

170 down here.

175.

175 here.

180.

185.

181.

182, new spot.

183.

184.

185.

186.

187.

188.

189.

190.

191.

192.

193.

194.

195.

196.

197.

198.

199.

200.

200 with you, you were first, 200.

201.

202.

202, with you.

203. Looking for 203.

If not, 202.

Sorry, 203.

I am trying to catch all 101 bidders.

204.

205.

204, down here, first time,

second time,

third and last time,

if you are all done.

Sold, 204, well done.

That successful bid of 204,000 was made by Jose and his wife, Carolina.

They are originally from Colombia and moved to London four years ago.

They both work for a company that assists Colombian students,

helping them settle in the UK and find accommodation.

I went back to their new accommodation to find out more.

Jose and Carolina, really lovely to meet you, congratulations.

So is this property for you two to live in?

We're not sure about that.

At the beginning, we were thinking to move in and to live here

for a while, but later on, maybe, we can find something else.

So it could be for you for now, but potentially,

-an investment for the future.

-Yes.

Carolina, what was it about this property that you liked

when you saw it?

I liked it because it was a big house,

and we have different things to do.

How did you feel when the hammer went down and you knew it was yours?

I couldn't believe it!

I asked Jose whether we won the house,

I wasn't sure if it was for us or not.

After, of course, I was so happy.

So for £204,000, were you happy with the price?

Yes. Really happy.

-Do you feel you've got a bargain here?

-Yes.

I definitely think so because of the size.

This is a freehold property, so I think we've done a really good job.

The couple have the money arranged in principle,

so thought they were all set for auction day,

but unfortunately, things didn't run smoothly.

Once we went to the auction,

we went to the bank, and the bank

turned over their decision and said the application was refused.

So we had to apply to another bank, which was a fast track,

but hopefully...

I mean, everything was done perfectly,

it was really, really fast, but it was really scary.

Oh, Carolina, how frightened were you?

I was getting crazy,

because when you buy in an auction you have a specific time

to do the whole process, so it was,

"Oh, maybe we're not going to be on time."

And you get penalised for that, obviously.

Yes, we were ten days late, so we have to pay a fine for the ten days.

So despite having an agreement in place, the couple came unstuck

and got landed with an extra bill, a horrible experience.

However, they did finally manage to secure some finance,

so now that they have the property, what will they do with it?

The key point that we need to work in is the kitchen.

We need to make it a little bit brighter

and a little bit bigger, because it's too small.

The bathroom as well, because it's on the ground floor,

so I think we have to place it upstairs.

# Moving on up

# Move it on

# Moving on up. #

What room are you going to put the bathroom in,

because obviously you've got three really nice big rooms up there?

We have this idea to put the bathroom in the lowest bedroom,

the one at the back.

Are you talking about losing a bedroom completely?

-No, definitely not.

-Phew!

We are going to leave a small bedroom, just a single one.

It's going to be small but next to the bedroom.

Moving the bathroom upstairs won't be cheap.

They've already had to find extra funds to cover the penalty payment

for being ten days late completing.

So how much have they allocated for the work?

Ideally, we've got £20,000. For the whole job.

What is the breakdown of that?

For the kitchen it is going to be around £8,000 to £10,000.

I think, for the bathroom, it is going to be around £5,000,

and the rest is for decoration.

OK, have you had any costings for that?

No, we have not right now.

We have got some appointments with some people,

and they are going to come and take a look at the house.

The kitchen and the bathroom are the two main jobs, I think -

you've got to tackle them. I think you're right in doing that.

As far as decoration goes,

you might find yourselves at weekends with a big, old steamer.

-Exactly.

-You might have to do a lot yourselves.

-Are you prepared for that?

-Yes, of course, definitely.

We have decided to be in the project together and we have to do it

so that is going to be our plan.

Guys, I am so excited to find out what you do here.

-Good luck with this project. Thank you.

-Thank you very much.

-Carolina, lovely to meet you.

-Thank you.

A £20,000 budget sounds realistic for all the work

Jose and Carolina have planned, but I do worry

about their financial breakdown, or lack of it. Not having a clear

structure when it comes to costing can lead to an overspend

so easily, I know. How will they get on renovating this?

You can find out later on in the programme.

Still to come, we see the amazing finished result at this bungalow

in Kent, almost three years after it was first purchased at auction.

Then it's back to London to see how Jose

and Carolina got on with their first auction purchase.

Have they made a good return on their investment?

But first, there's no arguing about the budget in Derbyshire.

We've probably got about another 20...

-Max.

-..to spend.

I'm not letting you spend any more.

We are back in Ilkeston in Derbyshire.

Earlier, we saw this large semidetached house

sell for 126,000.

Schoolteacher Neil bought it as a family home for him,

his wife Kirsty and their three children.

It appealed due to its large size, but also

because the garage was perfect for Neil's hobby.

What was it you like about it?

Looking out the window, the garage.

-Why?

-I like building aeroplanes.

-What?

-I want to build an aeroplane.

I've started building it on the kitchen table in our own terrace,

but it's too small to actually assemble anything.

Like a model aeroplane?

No, full-scale. A single-seater light aircraft. It's a wooden Spitfire, at the end of day.

But it wasn't just planes he planned to work on.

The house has been split up,

and there was a self-contained ground-floor flat.

The plan was to turn the whole property into one family home,

so we went back almost 21 months later to see how they have got on.

Let's start in the kitchen, which has been opened up and modernised.

Removing that wall has really made a difference.

There's a brand-new bathroom on the first floor,

and there's been some real blue-sky thinking up here.

The two bedrooms and the toilet were knocked through to create

a great-sized kid's bedroom.

The back bedroom is now Kirsty's craft room.

The bedroom on the top floor has had a spot of redecoration too,

and it doesn't stop here.

Let's head back to the ground floor.

There is a staircase here,

leading down to what used to be the self-contained flat.

That's now been transformed into a spacious and bright living room.

From top to toe, it has been an amazing transformation

but not without its problems.

There was a lot of work that needed doing, because it was very damp,

because they had no heating in this part of the building at all.

The main work I had to do on this was whoever put the double glazing in

has just smashed the bricks, so I ended up

having to learn on the internet how to repair the brickwork

so that the window would stay there and the bay window didn't fall away,

because it was actually starting to go away from the building.

There was a crack appearing on the outside.

So we have repaired the crack on the outside

and tied the bay window in good and proper,

so it's not going to move for the next 100 years at least.

They also had to address another problem in the house.

The roof collapsed just after we filmed last time, so that needed

a quick temporary fix but will need to be replaced in the future.

Then a plumber friend spotted some problems with the pipework.

He came in and advised us

not to switch the gas on, because it looked not too good,

and when he actually went to dismantle it, he said he didn't

have to hit it with anything, it just fell apart, the pipes did.

So if we had turned it on,

we probably would have blown the place down.

-And next door as well.

-Yes, so...

# Boom, shake shake shake the room

# Boom, shake shake shake the room

# Boom! #

Joking aside, always ensure that you get your gas appliances

properly checked when you take over a new property.

Unfortunately, the problems didn't stop there.

This was two rooms, the kitchen and dining room separate.

The back door was actually just there. There was a big window.

The window is now a patio door.

I wasn't very sure about turning this into one big room,

I quite liked the two separate rooms,

but it turned out that it was lucky that we did knock the wall down,

because there was an archway with lintels above that weren't supported,

so they were ready to fall down anyway.

So it wouldn't have been long before they had come down.

There has been a long list of issues to resolve,

so how did that affect their budget?

They were hoping to spend £25,000 on all the work.

We spent about 30,000, I think, so far,

which was a lot more than we were hoping to spend.

And do bear in mind that they still have got a lot of work to do.

What do they expect that to cost?

We've probably got around another 20...

-Max.

-..to spend.

I am not letting you spend any more.

Well, I do not want to spend any more, but it's probably...

By the time we have fixed the windows and the roof...

We asked two local property experts for their thoughts

on the prospects for this place now.

First impressions are that it's a lovely old house,

just still needs quite a bit of work doing to it.

Very well presented property. From the outside, it looks very large

and a really good size.

So they seem to think the renovations have really improved it.

The layout is a really great layout.

It has got two big reception rooms downstairs,

a large breakfast kitchen, which is what people look for these days,

and loads of space upstairs.

Very impressed by the quality of the kitchen

and the quality of the front lounge as well.

What sort of interest might the property attract?

I think it will appeal to someone who likes older properties,

but probably most importantly a large family.

We've got loads of space, loads of bedrooms

and I think that is who it is most suited to.

How much could the house earn as a rental?

If the property came onto the rental market,

I would put it on at £725 per calendar month.

If I was to put this house up for rent,

I would expect it to achieve in the region of £700 per calendar month.

Taking those top figures and Neil and Kirsty's total spend

of £156,000 into account, that would mean a yield of around 5.5%.

So, on to the resale values.

If everything is finished to the same standard as the kitchen,

I would expected to achieve within the region of £175,000 to £180,000.

If it was to be finished like the kitchen is, to that quality,

I would put this property on the market at £180,000 to get £175,000.

That figure of 175,000 gives the couple

a profit of £19,000 minus fees and tax.

It's not bad, is it?

Yeah, it kind of doesn't matter

because we wanted a family home, we got a family home.

It wasn't about making a profit. We wanted a bigger house

to move into but we hadn't planned on quite this big

so the fact that it is worth more than when we bought it

is neither here nor there, but nice to know.

Nice to know!

Back in 2011,

I visited Littlestone-on-Sea on the Kent coast.

It's a small and desirable village close to New Romney

where the locals are, not surprisingly,

making the most of this beautiful sunshine.

Well, just half a mile from the seafront in this lovely

residential area is the property I am here to see. It bodes well.

Nice properties. Nicely tended gardens.

The properties themselves look to be in reasonable condition.

So the guide price for the one I'm here to see is £120,000 to £125,000

which, for a two-bedroomed dormer bungalow, seems quite cheap.

Hmm, well, I can see why.

They always say you should buy the worst house on the best street.

This is a classic case of that. Let's hope it's better inside.

With a guide price of £120,000 to £125,000, you might

look at the auction catalogue and think you're getting a bargain,

but when something sounds too good to be true, it usually is.

# It's about to get worse

# It's about to get worse before it gets better. #

I really have very low expectations.

Crikey, look at that ceiling.

Well, you know, not normally an optional extra

when you buy a house, but in this one it is.

And it doesn't look like it's very tidy. Yuck!

OK, well not that sparkling an introduction to the place.

In fact, do you know what, given the state of that,

I'm not even going to go upstairs.

Let's just make do with exploring the...downstairs.

# I hope it gets better. #

So, a living room at the front and a second reception room at the rear.

Good to see there is a fireplace there.

The current condition is sadly still the same but as for the room sizes

and overall potential, I'd say it is looking pretty hopeful.

Through to the kitchen

and it doesn't really get much better, as you might expect.

So it is time to start putting on our rose-tinted spectacles,

our developer glasses,

and say, OK, at the moment it is in a right old state.

That will probably put a lot of people who come to see it off.

So if we can see through what it is now to what it might become,

that turns us from being an average person to a proper property person.

Potential is the operative word here.

Even though I didn't go upstairs, our camera did.

The dormer extension upstairs isn't spacious enough

and the bathroom is pretty tiny but rip it all out,

get a structural engineer to check the place is sound

and you could create a light and pleasant space up here.

# I've got to admit it's getting better

# It's getting better all the time. #

You know what?

I'm more attracted to the exterior of this property than the interior.

No surprises there, I suppose.

You've got a garage there at the side of the property and then,

look at this, lo and behold at the back

you got this absolutely massive garden.

It doesn't just end where the bushes are, it goes all the way back,

it goes all the way to the tree in the distance and even a bit further.

What is that?

At least 30 to 40m, over 100 feet, and it is reasonably wide as well

so great news on lots of levels.

One, an amenity space, somewhere for the kids to play,

vegetable plot or whatever.

But also it gives you space to potentially expand, extend -

fantastic.

# It's getting better all the time. #

You'd want to get an architect on the case

and submit your plans to the local authority but, if you got

the permission, this place could turn into something special.

Well, more than a weekend's work to sort this place out

and probably not for the inexperienced but, with the right

amount of effort and money, I think this could be a fabulous place.

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

Now we move to lot 55, a detached bungalow,

total refurbishment required.

We've got a guide of £120,000 to £125,000.

Start me at 120,000. 110 to start me, then.

I don't mind where we start. 110 I have. Thank you, at 110 I'm bid.

110, 115, I have.

120. 120 is bid.

125. 125 is bid and 130. 130 I have.

135. 135 is bid, and 140. Yes?

137, I don't mind. 140, sir. 138.

I thought you might. 138, 139, and 140. 140 I'm bid and 141.

141 I'm bid on the right-hand side at 141. 142 do I see?

At 141,000, being sold for the first time at 141,000.

For the second time at 141,000. Third and final time at 141,000.

Out on my left, are you done?

Sold at 141,000. And your bidder's number is?

Letting out a sigh of relief was new owner Steve

who bought the property for £141,000.

He and his wife Bernadette plan to make this their new home.

They've recently moved back to the UK from Australia

where they lived for the past eight years.

Bernadette teaches adult literacy and numeracy

while Steve's background is in the building trade.

Something tells me he's going to need

all the know-how he's got for this property.

I met them at the bungalow to find out more.

-Steve, Bernadette, lovely to meet you both.

-Nice to meet you.

-Congratulations. I think congratulations.

-That's right.

Yeah, I think so.

Are you up for a challenge?

-Yeah, there's nothing wrong with a challenge.

-Tell me about you two.

Well, we've been in the UK for five months. We came back from Australia.

We've been living there for eight years.

Steve has been building houses.

Built a couple of beautiful houses over there

and we came back to be close to family.

We only went for a few years and stayed eight years

so we came back to be near everybody.

I see, so you're a builder?

Yes, I sort of transferred my skills that way in Australia

and ran my own business building

and will now bring those skills back here and plough away.

Those skills will be a vital bonus for this property

where there is a lot of work to do.

So why did you want to buy this place?

It ticked lots of the boxes we needed.

We needed a nice-sized garden for our two golden retrievers.

I wanted the garage so I could work on cars

and things later on down the line when the house is finished.

We only needed a small house for the pair of us, really,

and we think we can make it into a very nice home for the pair of us.

Had you been to see it before you bought it?

Yes, we had to squeeze our way through

the hedge across the front which was fully overgrown then

and I sort of said, "Yeah, this is the place," as soon as I walked in

the front door really, you know.

-Most people would go, "This is not the place."

-Exactly that.

People walking out saying, "This is too much for me.

"I can't stand the sound of rats running around," and that sort of thing.

-What?

-Down here and just through there.

The house was full of rubbish, it was absolutely full of rubbish.

-There was rats running around.

-You saw rats?

Yes, we actually saw rats, yes.

# There's a rat in the kitchen what am I going to do? #

Oh, dear, this really is a house of horrors! And even once

everything has been ripped out, there's still lots to be done here.

Tell me exactly what you're going to do, then, to sort it out.

-Well, we were hoping you would come up with a few ideas.

-Bulldozer?

That's it. That's one of the options.

We're going to leave the front lounge

as a separate room at the moment and use that as an office

because we both need that space

and we're going to knock the kitchen into the other room

and make it into a bigger lounge and then put a single-storey

extension on the back for a kitchen and dining room.

-We've got quite a tight schedule, really, for ten weeks.

-Ten weeks?

Ten weeks we want to be in, because that suits us

with the rental property we are in at the moment.

They had a budget of £120,000 for the house

and £15,000 for the extension, but that ten-week schedule?

When we returned to see how they got on 14 weeks later, well,

the house had certainly been transformed,

but there was no extension to be seen at the back of the bungalow.

Inside, they had put all their efforts into creating

a lovely family home.

The couple really have done an amazing job here.

They replastered, rewired and replumbed throughout.

It's as if they'd waved a magic wand.

The bathroom was really contemporary and stylish but they still

needed to do the finishing touches to the decor throughout.

So what about the bedrooms?

As you can see, the bedrooms were not quite finished

but were well on their way.

The couple were pleased with their progress.

There's no comparison, is there, from what it was like before?

It's certainly different now.

It's become our home now, and we're really quite pleased with it.

The little features that we thought about on day one are starting to come

to fruition and it will all come together at the very end, we hope.

Hopefully. It's going on quite well.

That ten-week schedule proved to be a bit ambitious when it came

to getting the extension built on top of all the other renovations.

The idea was for it to be the kitchen and dining area.

That meant coping without a kitchen so takeaways were essential.

The good news was that the budget was on track so far.

We've actually only spent about £16,500 so far

and I think I'll probably get to that £17,500

and then I will spend a similar amount on the extension.

That would take their total budget up to his previous estimate

of £35,000 once the extension is built.

The couple have made an amazing transformation

of this dilapidated house, but there was still a long way to go.

When would the takeaway menus be binned?

Well, it was to be another two years before they finished.

Stay with us to see the fabulous result.

All our buyers will be hoping that their journeys have been successful

and they made the right turns along the way.

Decisions, decisions. Did they make the right ones?

Let's go back and find out.

My sat nav was adamant.

Catford in south-east London is nowhere near the Isle Of Dogs

or Battersea Dogs' Home. But Jose and his wife Carolina

bought this three-bed terrace for £204,000 as an investment.

The couple had moved to London from Columbia four years earlier

and now help Colombian students find universities

and accommodation in the UK. So is this property for you to live in?

We are not sure about that.

At the beginning, we were thinking about moving in to live here

for a while, but later on maybe we could find something else.

Carolina, what was it about this property that you liked

when you saw it?

I like because it is a big house and we have different things to do.

Yes, she was right about that.

Polystyrene tiles, rundown lean-to, dated decor and a bar

all needed to be removed, and the house to be rejigged.

The kitchen was pokey and the bathroom needed to be upstairs.

The list was long, and all to be done on a budget of 20 grand.

18 months later, this Catford house is looking purr-fect,

with a smart front garden and new windows.

The garden was always a good size and now Jose and Carolina

and Laurie can really enjoy it.

That tacked-on wooden lean-to has gone

and patio doors now bring the garden into what was the former bathroom.

Yes, it's been moved upstairs,

and this sumptuous kitchen has been created.

There is now a loo under the stairs

and this lovely bathroom upstairs.

I think this is a great result, so how did they achieve it?

Basically what we've done in order to create

the bathroom on the first floor, which was really important,

we have to use the back bedroom, which was big.

Basically, we created a partition to create the bathroom

and that room was without windows so we created a window as well.

We're really happy that we managed to move the bathroom to the first floor.

I think the space works really well.

Really impressive to have got the bathroom upstairs,

a downstairs loo, and still kept a third bedroom.

It was the very best way to increase the value of this property.

The other two double bedrooms are a good size

and are really light and airy.

The house has been rewired throughout

and there are new radiators as well.

Back downstairs, well,

if you were a fan of that bar or serving hatch, look away now.

They've gone, and now there is a really nice bright living space

with a lovely fireplace to finish things off.

It's a great transformation from the very dated house we first saw.

The project was delayed by about four months as the original builder

Jose hired left and he had to find a replacement to finish the work.

All very stressful, especially as the couple were living here

throughout the renovation.

It was very difficult,

-but after we got the right team we started enjoying the project.

-Yeah.

Well, it's time to celebrate,

and this kitchen is the perfect party room.

-# Kissing in the kitchen

-Kissing in the kitchen

-# Kissing in the kitchen

-In the kitchen, woo! #

OK, party over and back to business. What impact did

the change of builder have on their budget and the build time?

At the beginning we were expecting to spend just £20,000.

Our timescale was up to six months for the whole project

but, obviously, since we started the project,

the budget will have to stretch much more so we went up to £45,000

and the whole project took over a year

because...we never thought it was going to be that much work

and that difficult, because it is our first project.

With the 204,000 they paid at auction,

that takes their total outlay to 249,000.

It's been a team effort.

While Jose was project manager and helped the second builder,

Carolina has been looking after the design. So how tricky was that?

It was quite difficult

because we didn't have any experience about building

but we choose everything really careful

and we tried to have as much light as we can.

The couple were looking to sell

so it is time for some valuations

by two local estate agents.

The layout works really well.

The fact that the kitchen has been opened up gives you

the feeling of light and air and space.

It's very open, it's very welcoming.

The standard of finish here is brilliant.

The kitchen works really well. The garden is nicely landscaped.

The fact that the bathroom is now upstairs is much better.

How much could the property be worth now?

More than the £249,000 the couple invested?

This property could resell

for anything between £330,000 to £350,000.

This property would resell for £330,000 to £350,000.

We had something in mind around that figure

and we currently have an offer for £355,000.

If they do sell at £355,000,

there's a £106,000 profit to look forward to before tax and expenses.

Jose and Carolina's investment property has turned out just fine

with a decent profit, even after the overspend and delay.

And it sounds like they've already got their next project all lined up.

We bought already one property

not far from here which is going really well.

We are not going to live in that property, definitely.

We wouldn't do it again. But, yes, it's going really well.

Now back to Littlestone-on-Sea,

a desirable coastal village near Romney in Kent.

Back in 2011, we saw Steve

and his wife Bernadette buy this property at auction for £141,000.

They'd moved back from Australia to set up home after eight years away.

They bought this dilapidated dormer bungalow to turn into

their new family home, but boy, oh, boy, it needed a lot of work.

Luckily, Steve's a builder.

But his skills were really going to be tested here.

-Had you been to see it before you bought it?

-Yes.

We had to squeeze our way through the hedge across the front,

which was fully overgrown then.

I sort of said, "Yeah, this is the place"

as soon as I walked in the front door, really.

When most people were going, "This is NOT the place!"

Exactly that.

People were walking out saying, "This is too much for me."

-The rats were running around and that sort of thing.

-What?

-Down here...

-The house was full of rubbish, wasn't it?

-You saw rats?

We could actually see rats, yes.

With Steve doing most of the work himself, they could think about

turning this into their dream home and already had their master plan.

We're going to leave the front lounge as it is,

as a separate room at the moment and use it as an office,

because we both need that space.

We're going to knock the kitchen into the other room

and make it into a bigger lounge and then put a single-storey extension

on the back for a kitchen and dining room.

-We've got quite a tight schedule really, for ten weeks.

-Ten weeks?

-We want to be in.

-Wow.

That suits us with the rental property that we're in at the moment.

Then we'll have started the extension, as well,

so we'll see how it goes.

Ten weeks did prove rather tight, because when we rejoined them,

initially 14 weeks later, although there had been a vast improvement,

they hadn't quite finished the decoration.

Also, there was no sign of that extension being started

and more worryingly, no kitchen, either.

They were living off microwave meals and takeaways

until that extension was built.

So we thought it was definitely worth another visit to see

if they were finally able to switch on the kettle,

put up their feet and enjoy their dream home.

Almost two years on from when they first bought it,

I'm pleased to say that yes, they can!

# I'll see you in my dreams

# And I'll hold you in my dreams... #

Since the last time you was here,

we've made lots of changes to the house.

The main one being the extension which has allowed us

to have a kitchen. A downstairs shower room has been completed now.

The porch on the front, we've completed the garden patio now.

That's a nice area to sit out on now.

And of course, they've had the time to get settled in

and fully furnish and decorate all the rooms.

It's a terrific and tasteful modern, chic look.

Their biggest change has been the completion of that extension

and a fabulous new kitchen.

-It's a wonderful space for family and friends to gather.

-It's great.

I love it.

It's a great kitchen and it's been designed really well,

so I think it works well and it's nice to be in there

just doing things with other people and a cup of tea or glass of wine.

-A great social space, isn't it?

-Good for me - I get lots of nice cakes!

I'm very happy!

We also had to make the roof nice and high for the light

-that we were given.

-That's right, yeah.

Yes, that's right - they actually raised the ceiling height

so they could fit in that chandelier -

a gift from Steve's son.

We went over to South Africa to Steve's son's wedding

and they bought a house over there and when we were in the house,

we saw the chandelier and I said I liked it.

They said they really wanted it to go because it was in the way,

in the wrong place and wasn't their style of light fitment, so we

brought it home with us, packed into our suitcases and it really looks...

Goes very well with the kitchen and is a great feature,

so we're really pleased it's there.

I'm not sure if I've ever heard of a room being

designed around a light fitting before!

You could say it's a case of the tail wagging the dog.

But oh, sweetie! It works.

It just adds to making this their dream family home.

So now it's finished and with all those extra little bits

of work done, how has their original budget fared?

My overall budget was going to be 35,000.

I think that I've spent a bit more than that. Including the extension...

I think it was probably nearer 10,000 on that...

-About 40.

-Yeah, 45.

We've done a lot more with that than actually we originally intended.

-Yeah.

-We didn't plan to do the patio and garden,

and that's been quite expensive.

If we take Steven's calculation of a £45,000 spend,

coupled with the purchase price of 141,000 they paid at auction,

that means a total outlay of £186,000.

Obviously, this is their family home,

so they have no immediate plans to move on for now.

But out of interest,

let's ask two local property experts for their thoughts on the work

and whether it has increased the value of this place.

Absolutely gorgeous. Fantastic.

Love it. I love what they've done.

Nice space, lots of airy windows.

Done an excellent job and a high level of fit out, which is

-really good.

-Fantastic property,

really well finished.

The extension is fantastic family space for somebody.

Location of the property is also very good.

You've also got a very nice sized garden too,

so a fantastic all-round property.

The new extension makes a huge difference to this property.

You've got a nice open-plan kitchen now, makes it nice and airy

and makes a big difference to the overall

size of the property as well.

The extension is a fantastic space, ideally,

because you can cook in it whilst talking to dinner guests

and visitors to the property, so it's a very good entertaining space.

Well, Steve and Bernadette are getting the thumbs-up

for all their hard work. Let's hear some actual valuations.

Remember, their total spend has been £186,000,

so what could this place sell for?

I think the property would sell for between £230,000 and £240,000.

We'd look at marketing this property for £235,000

and look to achieve around £230,000.

# I'll see you in my dreams. #

That top figure of £240,000 could see them

achieve a profit of £54,000, minus the usual fees and tax, of course.

-But they don't sound tempted to move just yet.

-We're pretty happy.

-Yes, we're very lucky.

-That's the word. Very lucky.

It's all gone well, you know.

Well, it's the end of the road for our buyers in today's programme,

but there's plenty more from where they came from.

Oh, yes, and to find out what happens to them,

join us next time on Homes under the Hammer.

-Goodbye.

-Goodbye!

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