Episode 59 Homes Under the Hammer

Hello. Now, people buy property for all sorts of different reasons.

Sometimes it's to live in.

Other times, it's to do up and then either let out or sell on.

But whatever the reason, the main concern is getting value for money

so at the end of the day you can make a profit.

But how do you do that?

One way could be to buy your home under the hammer.

You have to do your homework before you buy at auction

so that you are prepared for any potential problems.

So if it all checks out fine, you could bag yourself a real bargain.

Let's take a look at the money-spinners or potential money pits

that inspired people on today's show.

This property in Stockton-on-Tees has worked its magic on me.

Hey, presto! Look what we've got here. Exactly that. Fantastic!

While in Bexleyheath, Kent, it may just take three magic words

to make potential buyers of this house disappear.

Non-traditional construction.

And in Dartmouth, Devon,

this ground floor commercial unit used to be a cocktail bar.

Will its £45,000 to £65,000 guide price appeal?

All these properties are being sold at auction

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

Sold!

I'm in Norton on Teesside.

It's a village that dates back to Anglo-Saxon times and it really

is charming with a village green, a duck pond and some lovely houses.

# We are the village green

# Preservation Society

# God save Donald Duck

# Vaudeville and variety

# God save the village green. #

It really is a lovely place and it looks as though we're not

the first to be indulging in a spot of refurbishment around here.

Well, just behind the green in Norton is the property I'm here to see.

It's this. A two-bedroom cottage.

The guide price was £99,950,

but on auction day it was reduced to 70,000.

So what's it like inside? Well, through the front door.

Stairs facing you, leading up to the bedrooms.

A living room over that side.

It has already got a bit of a quaint olde-worlde feel to it,

although very high ceilings which give a nice sense of space.

Another living area over this side. Again, a good size.

I imagine at that point in the past,

that's where the cottage would have finished.

There's a little room there that at some stage possibly even contained the kitchen.

That's all lovely. Then you come here.

This is a kitchen that has been built into this kind of extension right at the back.

It's got this strange sloping roof

which is just too low at that far end there.

And it's just totally out of character with the rest of the place.

So you definitely need to spend some money in this bit

but in terms of the rest, yes, I still love it.

Upstairs, the bathroom needs something of an overhaul.

Then there are two bedrooms.

They are not huge but are well proportioned doubles.

None of this detracts from my initial good feeling about this place.

# Loving you is easy

# Cos you're beautiful

# Do-do-do-do

# Ah-ah-ah. #

At the back of the property there is this little courtyard here

and you get to see that extension which houses the kitchen.

Yes, it is not ideal at all.

But to make this place perfect,

what you would want really is a bit more garden space.

A little bit of a cottagey garden perhaps.

And hey presto!

Look what we've got here. Exactly that. Fantastic!

The garden needs a bit of a tidy up,

but for me it's the icing on a pretty scrummy cake.

So, it's all great and then... Whoopsie!

A potential fly in the ointment.

Because come out of the rear of the property out of this side gate

and you have the access, or the rear access, to the house.

It's through this garage door here

and I believe you've got shared access of this bit of driveway.

You've also got that garage which is attached to that garage.

This is the kind of thing that on the face of it is OK

but when it comes to rights of access, it is potentially

a legal nightmare and your solicitor needs to check exactly what

rights you have to drive your car to get access to your garage

and also to get access via foot to the side of your house.

It's just one of those messy complicated things that nobody

really likes and it will definitely affect the value of this place.

# Tell me why do you have to go and make things so complicated

# No, no, no. #

Shared access may not be ideal but as long as you get

a solicitor to check it out, it needn't be a deal-breaker.

We asked a local estate agent for his thoughts on this place.

First impressions are, it's a decent size for two bedrooms

but it does need a bit of modernisation.

Fair enough, but bearing in mind the auction guide price of 70,000,

what might it sell on for once done up?

I would think it would achieve £110,000 to £115,000.

And on the rental market?

I would expect to achieve a rent of £550 per calendar month.

Well, apart from the possible issues with the shared access here,

I think this is a really good property to go for.

Lovely location, charming little house.

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

We are going to move now to lot number 36.

It is a charming two bed property. Do I dare ask for 75,000 anywhere?

We will take 70 if it helps to start. I need 70,000.

Front row at £70,000. Do I have 71 anywhere else? 71, I can see.

71,000. 72. 73. 74. 75.

74,000 in the front row. I want to sell. I'll take 500.

500 bid. 74 and a half. 75. 75 and a half? 76. 76 and a half?

76 and a half bid. 77. 77 and a half? No.

I'm at 77,000 in the front row. Do I have five anywhere else?

This is your last chance. Going once at 77.

I'm going for the second time. That's £77,000.

Sold to the gentleman in the front row at £77,000.

That successful bid of £77,000 was made by Ken who attended

the auction with his wife, Kath.

The couple both work for the family haulage business.

# Away, haul away

# We'll haul away together

# Away, haul away

# We'll haul away. #

And they live locally. Very locally.

Kath, Ken, great to meet you both. Congratulations.

-Tell me why you wanted to buy the place.

-Go on, Kath.

-It backs on to the property we've just bought out there.

-Right.

-So your house is on the other side of the garden?

-That's right.

What about the garages?

The single garage belongs to this property

which is another reason why we bought it, so we can take that back.

It was all a bit of a shared access, which we wanted to get rid of.

-But the other part of that garage building is yours.

-Yes.

The shared access issue, which I thought could have been a potential problem.

That was the main reason we bought the house, really,

because if anybody moved in or if somebody bought it

and rented it, it could have been an issue with other people.

So we thought we'd have a go at it and we went to the auction

and stuck our hands up and were successful.

-You must have been really keen to get it.

-Yes.

I mean, almost, not at any price, but what would you have gone to?

-We would have gone a bit more than what we paid, I think.

-How much?

-We decided that we would go to 110,000.

-He's being very coy!

We got our surveyor to come and see it before we went to the auction.

Good. What did he point out?

He did say that because of where it was in relation to our own property,

there was a 10% or 20% value for that for us

-that obviously other people wouldn't have.

-OK.

So it was worth more to us than it would be to any other

-prospective buyer because of its position.

-Right.

That's an interesting way of looking at it.

You have the property as well and we're going to rent it out

and it's an investment for us as well at the same time.

Wow. Gosh, you must be absolutely delighted.

We were on the night, yes.

# We're going to have a good time tonight

# Let's celebrate

# It's all right. #

Prior to the auction, the cottage was on the market for £140,000,

double the adjusted guide price.

So they've done very well indeed.

They want to raise the roof of the existing kitchen extension

and that's not all they want to do here.

What exactly are we going to do? We're not 100% sure at the moment.

It depends what the architect comes back with.

He's talking to the council currently.

It's not listed but it's in a conservation area

so it's a question of what we need to do to get planning permission

for the kitchen bit at the back.

We probably want to replace the windows at the front. We haven't quite decided yet.

We're going to replace the bathroom and kitchen,

replace the heating and decoration, really. That's about it.

What do you know about the history of the house in terms of your relationship with it?

We know that about 20-odd years ago there was a deal done with

the people that owned our house

and they gave this house a little bit of garden in exchange

for a bit of land so they could get vehicle access on to their site.

-That explains...

-The garages, yes.

-Right.

We are going to take the garden back for the other property

and I'm going to make that into a vegetable plot.

We are also going to take the garage and move the gate a bit

further forward so this will just have a lovely yard to it.

Then, like Ken says, do the kitchen up, do the bathroom up,

decorate it, give it a good spruce up and then rent it out.

So what is the budget for the work?

We have not really thought about budget, have we? I don't know.

-I have.

-Kath has. Dear me, I hadn't thought about budget but Kath has. Go on, then, Kath.

-I would say, hopefully, no more than about £5,000.

-Right.

-For the kitchen and bathroom?

-I think she's a bit, you know...

-Ambitious?

-Yes. A bit.

-All right, 10.

-I've told you that.

-Right. Did you? Sorry. It depends what we've got to do with the kitchen.

No, you have your squabbles. That's fine. Nobody's looking!

-It depends what we've got to do with the kitchen, really.

-Right.

Kath and Ken are currently having their own house done up

and will be using the same builders to renovate this place.

They may chip in on the decorating inside themselves

and hope to have it ready in six months.

What's next on the horizon for you two after you've done this?

-After we've done this?

-We'll have a rest after this.

Yes. I think we'll put our feet up.

We'll be sick of the sight of builders and picking paint

-and things like that.

-Definitely a feet up job.

We'll make the most of what we've done and enjoy what we've done.

-Listen, congratulations.

-Thanks very much.

-Good luck with it.

-Thank you.

-We'll look forward to seeing how you get on.

-Cheers. Thank you.

Well, Kath and Ken were the obvious people to buy this place and as

they say, it's worth a lot more to them than any other potential buyer.

In terms of their plans for it,

I think it's possibly a shame they are losing some of the garden

but the rest of it, yes, it makes perfect sense on so many levels.

You can see how they get on sorting it out later in the show.

This is Bexleyheath in Kent.

In its time, this town on the outskirts of London has been

home to former James Bond, Roger Moore.

So will I be shaken or stirred by the property I am about to see?

The train station is over a mile away.

Once you've actually made your way there, you can be in central London in around 40 minutes.

So that is a selling point for today's auction property.

I thought it was best for me to start with a positive

because...it is not great, is it?

But then, look at that.

Fantastic open parkland to the side.

That really does put a smile on my face.

The guide price was set at just £85,000

and for this area, that represents really good value.

Right. Do not be put off by the decor in this property.

Polystyrene tiles everywhere.

You've even got ceiling rows made out of the stuff up there.

But a great space.

Very dated indeed but there is so much you can do about that.

What I love is this wonderful flow.

You've got a nice sitting room, a lovely dining space,

you walk straight into the kitchen.

A good size as well. Obviously, all the units need updating

but what I would like to see would be a nice big picture window there to take in the most of those views.

Of course, you would have to apply for planning permission.

Failing that, you could think about putting on a little

conservatory because to look out there at that lovely big,

green, wide open parkland is what this property needs.

# I'm in a wide open space

# It's freezing

# You'll never get to heaven

# With a smile on your face from me. #

Or you could even do both.

There is plenty of space at the back here to accommodate

a conservatory and have a lovely garden once you've got

rid of the concrete slabs and weeds.

Also in need of some serious TLC is the upstairs.

Each of the three bedrooms is slumbering in decades-old decor.

A '70s avocado bathroom suite is likely to be a shade too

dated for even the keenest retro aficionado.

All of this is cosmetic, however,

and could be really good fun to change, especially when compared

to some of the more troublesome tasks you need to tackle here.

Unfortunately, this house is hiding a murky secret.

It was built in the 1960s and it was made out of concrete.

Now, it's not the concrete that causes the real issues.

It's the metal rods that are inside the concrete holding the structure together.

Over time they can rust,

they can break down and the concrete can start to crack.

That is when the real issues start.

It's known as non-traditional construction

and that label can put off some lenders.

Luckily, there is something you can do to rectify the problem.

One way of treating houses of non-traditional construction

would be to remove or treat the offending concrete and put a brick skin on.

In some instances, the entire concrete structure might have

to be removed and replaced with traditional brick and block.

Now, the outcome is a repaired mortgageable property of traditional construction.

However, this isn't a cheap exercise

and could easily end up costing £30,000 to £40,000.

So be warned.

Doing the work to make it a traditional construction

could add around 50 grand to the end value but the mortgage itself,

if you can secure one, legal fees and the all-important

surveyor's fees, will most likely cost more than average.

So for this place, you really need to plan every penny and pound.

# When you are broke go and get a loan

# Take out another mortgage on your home

# Consolidate so you can afford

# To go and spend some more when you get bored

# Ka-ching. #

Ka-ching indeed!

But the guide price for this house was £85,000

and in a sought after area that is not bad value for money.

If the survey deemed it safe for habitation,

you could always think about a light renovation.

The fact it's non-traditional construction will have zero impact on rental figures.

We invited a local estate agent along

to ask him about the potential returns.

The rental market currently is extremely buoyant.

Something like this would be fetching a 6% to 8% yield.

I would rent this out for £900 to £950 per calendar month.

And if a refurbishment was done throughout the inside,

how much could it sell on for?

As a non-traditional construction,

I would put the property on the market for £170,000.

But if the buyer went the whole hog

and as well as doing an internal refurbishment, made this into

a traditional construction, what would that do to its sales value?

As a traditional construction,

I would put the property on the market for £200,000 to £210,000.

A non-traditional construction will not be for everyone.

Securing the structure and turning this into a traditional house

will prove costly and time-consuming.

But once you've done all that, this could be sold on for a profit.

Alternatively, it could be a great rental machine.

Let's find out who fancied this one when it went under the hammer.

Lot 134. Who wants to start me? 100,000 on this.

What about 80? 80, I've got. 85. 90. 95. 100,000.

105 at the back. 105.

110. Are you bidding? How much? 106? OK, 106.

107. 108. 109 at the back.

110. 111. 111, back in.

112. 113. 114. 115.

116. 117.

118.

118. One more? Yes? No.

It is with you, sir, sitting down with the glasses.

The bid is £117,000. It is against you standing up. Anybody else?

If not, 117 for the first, 117 for the second,

117 for the third and final time.

Are we all done? Sold. 117.

With his £117,000, the successful bidder was Kevin.

He's a dentist who doesn't live around here but is hoping

his new home and location will give him something to smile about.

-Kevin, lovely to meet you today.

-Hello.

-Well done.

-Thanks very much.

-Are you originally from Bexleyheath?

-No.

I have never lived in Bexleyheath.

It's just that Bexleyheath... I'd been drinking with my friend

about 10 years ago in Bexleyheath and I knew it was quite nice and green.

It is all I could afford as well. So that's the reason I bought it.

I saw where it was and I went to the auction.

I didn't think I could really afford the house but I put my hand up anyway.

What was your budget initially?

I really didn't want to spend more than about 100,000

but because I like the plot, where it is, next to the big park,

I kept putting my hand up and I couldn't stop myself.

You paid £117,000 which meant that you had to find £17,000

-because obviously you have just told me you only had 100.

-That's right.

How did you manage to come up with the money?

I took out £15,000 on credit cards.

I went to the hole in the wall about 100 times and then I sold a few things.

So I spent about three or four weeks panicking, selling things.

I managed to get it all together just for that two days to spare.

Did you sell anything you didn't really want to sell?

-Yes.

-Like?

-I sold the kit car I started working on

because I wanted to finish that.

But I had to sell bits and pieces of that like the headlights and the carcass.

I had to sell this bit of dental equipment which

I bought for 60,000 about six years ago.

I had to sell that for 15 so that was a big loss.

I would never recommend raising finance on credit cards

to purchase property as that is a very expensive way of borrowing.

The bottom line is, don't borrow more than you can afford.

But for someone who's had to say goodbye to some of his worldly possessions,

Kevin sure is philosophical about it.

He must have felt this place was worth that and going 32 grand over the guide price for.

Getting auction fever, it can be a risky business,

but not as risky as buying sight unseen. Kevin!

I didn't actually go inside. I walked around the area and I looked at the outside,

-but I didn't come to any viewings because I thought it might put me off.

-What?!

No, wait a minute. Hold on, most people like to look inside

and hopefully that is what spurs them on.

But you didn't want to be put off?

It wasn't the house I was interested in, it is where the land is.

I like the fact it is at the end of this cul-de-sac and right next to this huge piece of green.

-And that was enough for you?

-The location was good enough for me.

-So you didn't want the interior to put you off?

-No.

I didn't want to go in and find out it was so awful I couldn't possibly live there.

What about the fact it is non-traditional construction? Surely, that must have put you off.

That was a bit of a worry.

I did a bit of research on the internet to see how much it would cost to fix and it's quite pricey.

About 40,000 plus.

But I was hoping that the structure will stay up for two or three years more

and I can save up the money towards fixing that.

I have a structural engineer coming in tomorrow to just make sure it is safe to live in for a bit

but I'm going to do up the interior to a standard where I can actually live here.

Put a different bathroom suite in, do the kitchen, that kind of thing.

Then I'll save up the money and rebuild the walls in traditional construction later.

I'm not going to extend it because for me, it's plenty big enough.

Do you not think it's worth biting the bullet now while you are doing all the other work?

You know, the kitchen, replacing the bathroom.

I just want to do a few minimal things just to make it liveable.

I am not going to put a flash kitchen in. Just a basic one.

A few different cabinets and a different bathroom suite. It's not going to cost a lot of money.

I'll probably only spend 2,000 on the whole thing.

And do a lick of paint and make it liveable, that's all.

It is quite expensive to do this kind of work

and it will definitely take me two or three years to save it up, I think.

# You didn't look round

# When I knew it was you. #

Despite never setting foot in his new home before buying it,

Kevin seems happy with his purchase, its perfect location

and the prospect of getting his teeth into some cosmetic work.

Providing the surveyor declares the property habitable,

let's hope there are no nasties, structurally speaking.

For a budget of just 3,000, he plans to make this his home

while saving up to tackle the structural issue.

I'd like to do a little bit of remodelling

and part of that will be putting a couple of extra windows on that side of the house

so I can enjoy the view more.

It would be nice to put a garage on the side

and make the top of the garage a little terrace, so you can sit out there

and have a cup of tea looking out over the green.

That would be the kind of remodelling I would like to do.

-Do you go with your heart a lot?

-Yes. Much to my financial detriment.

But that's OK, it's not the end of the world. I'd rather be happy than rich.

But obviously, both at the same time would be nice!

Listen, it's been lovely meeting you today. I'm so excited to see what you do.

-Good luck with this.

-Thanks very much.

I thought I'd heard it all before and then I met Kevin.

Not viewing a property before the auction

because you don't want to be put off the purchase?!

I know it was all about this location for him

but really, do not follow his lead, viewers.

Try before you buy. That is my motto and I'm sticking to it.

I just hope the survey says you can go ahead

and live here for now and it doesn't need immediate attention.

Join us later in the programme and you can find out what happens.

Coming up, a ground floor commercial unit in Dartmouth, Devon.

It may look ready for business

but perhaps its future could be more residential.

And at this house in Kent,

did dentist Kevin get his teeth into the work

and put his money where his mouth is with his £3,000 renovation budget?

But first, did Stockton-on-Tees couple Kath and Ken bicker their way

through the renovation or was it a case of happy families all the way?

Back now to Teesside and the lovely village of Norton,

where this charming two-bedroom cottage was bought at auction

for £77,000 by Kath and Ken, who live next door.

The couple planned to spend six months totally refurbishing

the cottage for the rental market.

But agreeing on a budget was proving difficult.

-We haven't really thought about budget, have we?

-I have.

-Have you?

Kath has. Dear me, I hadn't thought about the budget but Kath has. Go on then, Kath.

-I would say, hopefully, no more than about £5,000.

-Right.

-For the kitchen and bathroom?

-I think she's a bit, you know...

-Ambitious?

-Yes.

-All right, 10.

-I've told you that.

-Did you? Sorry. It depends on what we've got to do with the kitchen.

No, you have your squabble. That's fine. Nobody's looking!

-It depends what we've got to do with the kitchen, really.

-Right.

But Kath and Ken could agree on the need to sort out the shared access issues.

They also wanted to reclaim some of the garden for their own property.

10 months after our first visit, we are back and the good news is,

they are still talking to each other!

# A compromise will surely help the situation

# Agree to disagree but disagree to part

# When after all it's just a compromise

# Of the things we do for love

# The things we do for love

# Like walking in the rain and the snow

# When there's nowhere to go

# When you're feeling like a part of you is dying

# And you're looking for the answer in her eyes

# You think you're going to break up

# Then she says she wants to make up. #

Congratulations to them. The cottage is looking fabulous.

So has it all come together smoothly and without too many squabbles?

It was really damp, dark. We didn't realise the extent of the damp.

Therefore, it needed a complete new damp proof course.

Replaced all the glass.

The window frames were solid but we replaced the glass.

Complete new central heating system.

Also, we had to have the walls all lined for insulation.

-And insulated plasterboard.

-Insulated plasterboard.

That all came through when we got the planning permission eventually.

After we'd spent two weeks taking all the wallpaper off,

then we decided to cover the walls anyway with insulated plasterboard.

-But never mind.

-No, we didn't. That was... See, we are arguing now.

That was the instruction from the council.

We wouldn't have spent all that money on that plasterboard.

-We would have just had the walls skimmed, wouldn't we?

-No, they needed insulating.

-I know but we didn't just decide to do that, did we?

-It's on camera this, Kath!

Sorry.

Despite the extra work and the bickering,

the transformation here is top notch, especially in the kitchen.

This is the kitchen.

When we bought the house, the roof was collapsing

so we had to put a new roof on.

Raised it up a little bit. Put a window in for some light.

Put some French doors in to make a nice outlook into the patio.

We made some nice new kitchen furniture and put some nice

stone tiles down just to hopefully make it a nice kitchen.

Kath and Ken have also managed to increase the size of their own garden,

which their dog, Mack, is clearly delighted about.

And the cottage still retains a decent outside space.

The reason we bought the property in the first place

was so we could get the garden back and sort the shared access out.

But what we've done here is, we've made a lovely little private area,

lovely little sun trap, still kept some of the greenery

and it's just really nice and private.

Applying for planning permission to alter the kitchen roof took longer than expected.

So what with the damp proofing, insulation and installing a new central heating system,

this has been a bigger job than anticipated.

What effect has that had on their budget?

Now, was it 10 or was it 5,000?

We spent about 20,000, which before we started we thought,

it's going to be, by the time we added things up, that's what we thought.

We have finished it to quite a high spec as well

because that was important to us to do that.

But I think that's fair, the amount. We have come in on just about £20,000.

The renovation spend of 20,000 added to their purchase price of 77,000

brings Kath and Ken's total outlay here to £97,000.

We asked two local estate agents for their thoughts

on the refurbished property.

First up, the estate agent who saw the cottage before work began.

Now, it is absolutely superb. The finish is excellent throughout.

Re-skimmed, redecorated, good carpets,

I like the kitchen and the bathroom.

And of course, this little courtyard in the back

with its stone paving and flower border is lovely.

I think the property has been done to an exceptional standard.

The deep skirting boards, the original doors, the kitchen,

all make this a very sellable or rentable property.

Kath and Ken plan to hold on to this one and let it,

but if they were to sell, what might the cottage fetch on the resale market?

If I were placing the property on the market today, I would put

the property on the market for between £150,000 and £160,000.

I would suggest an asking price of around £160,000.

Those resale valuations would give the couple a profit before tax

and expenses of between £53,000 and £63,000.

Not to be sniffed at.

What about rental valuations?

A property of this quality would be very popular indeed.

I would expect to achieve a rent of around £550 per calendar month.

Because the property has been done to such an exceptional standard,

I would rent this property out at £575 per calendar month.

Those rental valuations would give them

a yield of around 7%, which is pretty healthy.

But more importantly for them, they have sorted out the access issues

for their own home and can now have control over who rents the cottage.

So what with all the bickering and squabbling,

call it what you will, will they be doing this again?

-No, thanks.

-No.

-We want to stay together, don't we?

-We do, yes.

# You know we made a vow

# To leave one another never. #

I'm in Dartmouth in Devon and what can I say?

It doesn't get much more picturesque than this.

Situated at the mouth of the River Dart,

steeped in naval history, it really is absolutely charming.

What a fantastic place to own a property.

Dartmouth is in the most beautiful setting

and for the past thousand years has made its mark on history

as the base from which explorers and merchants

sailed for destinations around the globe.

Many of the narrow streets and historic buildings in the town remain,

transporting the many tourists who come here back in time.

And for all boating enthusiasts,

the annual Dartmouth Regatta every August is a popular event.

Well, just a short seagull's flap from the front on one of the main roads in Dartmouth

is the property I am here to see.

The guide price, £45,000 to £65,000.

In Dartmouth, that really doesn't get you a lot. So what was on offer?

Well, it's this former bar and the freehold of the building.

Let's take a look inside.

Well, a good starting point if you are thinking about operating this

as some kind of commercial business, because what you want to do is

maximise the amount of frontage, and that is exactly what this does.

This big set of double glazed windows right along the front.

Then into the basically small bar area. The front area here.

The floor looks like it's been recently redone.

That is actually quite nice to have that slate effect.

Then here is the bar.

I mean, pretty much, apart from a few bits and pieces,

it could just have been operated last night.

-HORN SOUNDS

-Time, ladies and gentlemen, please.

Bottles of water, old equipment, stuff like that.

It is always a bit strange to wander into these kinds of places when they

are actually not operating but when it comes to actually using it again,

well, it looks like it would not take much to get it going.

It does seem as though all that's needed here to raise the bar

on this bar is a basic refurbishment.

Everything seems generally in good condition.

The toilet and basin fittings are reasonably modern, so wouldn't need replacing.

And with that wide glass frontage,

the place would certainly have kerb appeal.

So, hopefully, it is more a Tequila Sunrise than a sundowner.

# It's another tequila sunrise

# Staring slowly across the sky

# Said goodbye. #

But remember, the guide price of £45,000 to £65,000

offers the freehold of the entire building

and as the other three floors are a long-term lease,

this ground floor area is all you have to play with.

At the rear of the bar, you have got this little area here.

Now, it has currently got the loos in it and this roof.

My guess is that at some point this was a courtyard.

It has actually been covered and it's got this glass roof

and it is a useful space.

In terms of a bar, it is pretty much what you need.

But maybe there are other options for this building.

Properties in Dartmouth are, as I've said, quite expensive.

Even a flat here would be worth a lot more than that guide price.

So could you consider converting this to residential use?

It would all be about getting the right planning application in

and that change of use from a commercial premises to residential

and then doing the conversion and just working out the numbers.

But as an option, I think it is definitely worth considering.

Something else to bear in mind is that

given we are in delightful Dartmouth,

the possibilities of converting it to residential use

and turning this place into a high spec ground floor flat

could also open it up to the lucrative holiday let market.

So for this property guided at £45,000 to £65,000,

there are quite a few options to consider.

Time to get a second opinion from a local property expert.

The property was a bar and of course it could be a bar again.

I would just be slightly nervous that the main concentration of footfall

is a couple of hundred metres away

and doesn't drift up this particular road.

It's a potential problem that could affect the income generated by the bar.

But once updated, what could it sell for?

Commercial property can be slightly trickier to sell than everyday

residential but nevertheless I would expect the unit

when it is fully refurbished as a jazzy and boutique sort of bar

to be on the market at around £115,000 to £220,000.

Graham also reckons the rental returns could add up to £10,000 per year.

But would turning this place into a residential unit be a more profitable option?

As a one-bedroom flat, refurbished and lovely,

I would expect it to be on the market for around £110,000 or £115,000.

Renting out a one-bed flat could bring in an income of £500 per

calendar month but as a holiday let could generate up to £375 per week.

So there is plenty of food for thought for the new owner.

So, do you keep it as a bar? Do you convert it into a flat?

Either way, it's an opportunity to get into the Dartmouth property market for not much money

and I guess it is down to whoever bought it.

Let's find out who that was when it went under the hammer.

Down to sunny Dartmouth. We've had plenty of interest.

We've seen the cars turn up. We know you are here to bid on this one so what shall we say? 40.

Straight down the aisle at the very back. 40. At 40.

At 42. 42. 43.

At 43. 44. 45 against you.

46. 47. 47,000. At 47.

48. A fresh bid.

It is against you, sir. 48. Back right has it at 48. At 48,000. 49.

49. 50, I'll take. At 50. At 51.

At 51 she goes. 51.

There was some confusion towards the end of the auction as someone who appeared to be bidding wasn't.

At 52, you are in.

For the first time. Second time. And selling at £52,000 to you.

Congratulations.

However, at the end of the auction, what was clear

was that the final successful bid of £52,000 was made by Lorna.

She was born and bred in Dartmouth and used to run an art gallery.

So what drew her to buying this property?

I met up with her to find out more.

-Lorna, lovely to meet you.

-Good to meet you too.

-Congratulations.

-Thank you.

-So, why did you want to buy this place?

Not lots of thought before.

It came up at auction and it was the first time I had ever been to an auction.

So I went down to see how it all operated and I decided to buy it.

Now, maybe a two-up two-down terrace or a little bungalow

or something you would buy possibly a bit randomly,

but not a business and stuff like this.

You don't just randomly buy a business!

There was a little bit of prior thought to it, obviously.

But not lots.

It all sort of happened quite quickly. But I'm pleased with it.

-Is this something you have hankered to do for a while?

-No.

It is a new venture and it's kind of off-the-cuff.

I used to know it as a bar and it used to be quite popular back in the day.

So hopefully we can get things going and have a nice social environment.

So what was it that appealed about running a bar?

There is history to it, really. A good friend of mine used to run it.

So I have been this side of the bar quite a lot, really.

It is just a nice opportunity to be the other side of the bar.

It's going to be just a really nice, chilled out, start to your evening kind of bar.

You can have some cocktails, come and have some champagne or a beer

or whatever you fancy and then carry on from there.

-There are a lot of bars in Dartmouth.

-There are.

How are you going to make yourself stand out?

I think just by trying to provide a really nice atmosphere and keeping it local.

Lots of promotions and fun evenings.

Then, hopefully, it'll get people in.

Lorna seems quite relaxed about a business that is totally new to her.

But there are still legal issues to deal with

before she can open the doors to her first customers.

I have to do a licensing course.

You have to pass an exam and then you have to have a police check.

Once you've got that, you can have a personal licence

and once you have a personal licence you can have a premise licence.

-And it is not a given that you will get that?

-No.

It is up to the town council.

And would they potentially look and say, there are a lot of bars

already, we don't need another one? Could they say that or not?

I think because it has previously been a bar and it exists as a bar,

then hopefully it should go through fine.

In terms of staff, are you going to take the staff on?

There aren't any existing staff. So I will be on the lookout for new staff.

But I've put some feelers out

and hopefully we will get a good team together.

Lorna has a good friend who also runs a bar

and will be showing her how to kit out her new venture from installing

items such as fridges, an ice-maker, dishwasher and bar furniture.

Lorna does have a budget of around 10 grand

but knows it will take whatever it takes to get this bar buzzing again,

and, hopefully, in the space of a couple of months.

As a moneymaking venture, she is aware this could be risky.

Initially, my first thought was to make it into a little flat.

But then having come in and seen how ready it is to go as a bar,

it feels like we should have a go at running a bar.

If it doesn't work, turn it into a flat after that.

Are you like this in all your life in terms of your spontaneity?

I am quite spontaneous, yes, and fairly erratic.

I kind of like to go with things that come up.

If you'd have asked me a couple of months ago,

I would have had no clue any of this was going to be in my life.

-Good on you.

-Kind of think on your feet and keep going.

-And open-minded to new opportunities.

-Absolutely, yes.

Listen, genuinely, good luck with this.

-We will be back to see how you get on.

-Thank you.

Well, you've certainly got to admire Lorna, but there are a few

challenges ahead before she is serving her first cocktail.

Sorting the place out, training staff, getting her licence. Wow!

How is she going to get on? Find out later in the show.

It's been a while since we last saw those properties.

Do they look any different? Has the money and time been well spent?

Let's go back and find out.

Now, back to Kent where earlier we saw Kevin, a dentist,

buy this three-bedroom semi for 117,000.

# I want a little sugar in my bowl. #

He bought the house to move in himself,

although he had a very peculiar approach to viewing it.

I didn't come to any of the viewings because I thought it might put me off.

What?! Wait a minute. Hold on.

Most people like to look inside and, hopefully, that is what spurs them on.

But you didn't want to be put off?

It wasn't the house I was interested in, it's where the land is.

I like the fact it's at the end of this cul-de-sac and is right next to this huge piece of green.

-And that was enough?

-The location was good enough for me.

-So you didn't want the interior to put you off?

-No.

I didn't want to go in and find out it was so awful that I couldn't possibly live there.

OK, it was certainly unconventional,

especially when the house in question

was of non-traditional construction.

Kevin planned to put off dealing with that particular problem for a couple of years.

He aimed to just update throughout with a budget of 2,000.

So 14 months later, we dropped in to see the progress.

# Can't you see

# What I am thinking

# Can't you see

# What's in the stars?

# No, it's not too late

# To change your way of living. #

OK, so it's not quite finished

but that doesn't mean Kevin's not been very busy.

I've completely re-plumbed the building from scratch.

There is no old plumbing at all.

I then put a new bathroom in at the same time and also replaced the boiler with a new boiler.

And replaced most of the heating system, the bits that needed replacing.

Then I replaced all the electrics because the wiring was very bad.

I thought hopefully I could replace a bit of it but it turned out I had to replace all the wiring

and that meant ripping out loads and loads and some of it was quite hard to get to.

But in the end, I managed it all right and I've got the certificates to prove it so it's safe.

So we're not going to get electrified during this interview!

# Ain't that good news

# Yeah, ain't that news? #

Glad to hear it!

I'm impressed by Kevin's enthusiasm for getting stuck into the work here.

He got professionals in to oversee all the electrical side

and the gas installation but he's done a fair bit of labouring work himself.

And as you would expect from a dentist, he's handy with a drill!

It's much easier drilling holes in walls

because they stay where they are and they don't move and complain.

It's really good. You just drill the hole and that's it. They don't scream or anything!

And Kevin's list of jobs just goes on and on.

The next stage was to replace the roof

because the old roof was like this sort of aluminium sheet type material

so I replaced that with a completely new roof.

After that I had to re-clad in this fibreglass material that needs no maintenance.

I also replaced all the windows with double glazing.

After that, I did the bedroom.

Completely redid that from scratch with a new ceiling.

But what about those structural concerns?

There were initial worries about its type of construction and he was

rather concerned he might even have to knock it down and start again.

Happily, however, the property is sound and requires no rebuilding.

The survey revealed the fabric of the building was in good condition.

Kevin bought this house without even viewing it. So it was a huge gamble.

It would appear that he's got away with it

but please don't try this at home.

Anyway, with a huge stack of work under his belt, what's next?

I have to do the room I'm sitting in which is the dining room

and then the living room.

Then I'm going to go upstairs and sort out the other two bedrooms.

After that, I'm going to sort out the garden,

back and front and actually put up a fence. That will be quite handy.

To stop dogs coming in!

All this work sounds like a budget buster.

Kevin was originally going to spend just two grand on making

the place habitable, but that plan is now out of date?

I've probably spent about 40,000 so far

and I think another 10 should finish it.

So I think about 50,000 to complete everything.

Which is less than I thought.

Not bad then, especially considering that buying it blind could have

left him with serious problems he would need to throw money at.

He reckons he's got another nine months of work left to do

but he's in no great hurry.

I'm living in the house.

I haven't got a mortgage so there is no financial pressure

to do it up to rent or anything like that.

It is my main residence.

Also, I wanted to do it as and when I could afford it.

One of the most important stages was to get the kitchen finished

because Kevin lived here while the work was being done.

Well, it is really nice to have a kitchen.

I only finished it yesterday so it's a novelty for me.

I had to replace the whole thing. There was nothing worth saving in it.

I had to sort out all the walls and ceilings.

New ceiling, new walls and none of the walls were straight.

They were like rippling all over the place.

I sorted that out and decided to put a fairly neutral

and modern kitchen in, as you can see.

It's all creamy, gloss, slab type doors.

And I wanted everything integrated so the fridge and washer dryer

and washing machine are all integrated.

I kept all the colours more relaxing so it's like a Zen-like atmosphere,

so I might fall asleep while frying an egg!

Let's hope not!

But will two property experts find Kevin's work as relaxing

and tranquil, or will he end up with egg on his face?

Having had a look around the property, I think what he's done so far has been great.

I saw it in its original condition

and certainly the progression from that to now has been fantastic.

I think if the property is finished to the same sort of standard

as the kitchen and bathroom have been finished to,

the property should be easy to sell for a family or to rent.

The standard of the finish so far in the kitchen,

bathroom and bedroom show a great attention to detail and you can

see the finished product of the whole house is going to be phenomenal.

So what about values then?

What do they think it could sell on for once it's all finished?

Remember, Kevin thinks he'll spend 50 grand on the work

so added to the 117,000 he paid, that is a total outlay of £167,000.

This property, I think, could re-sale, once all finished,

in the region of £190,000.

A property like this would re-sale in the open market

for £180,000 to £190,000.

That sounds pretty good. I didn't expect to make a profit because I bought it to live in.

Obviously, it would be nice if I made a small one. That's pretty good news.

No wonder he's impressed because those figures could give him

a possible profit of 23,000, minus the usual tax and fees.

Of course, he's living in the property already

and he always aimed to keep this as his new home.

But could those figures tempt him to consider selling?

I was intending to live here a long time

but I might possibly sell it next year.

I'll just have to see how things go. It depends on circumstances.

You can't predict those, can you? That's good news, though.

Back now to the beautiful south coast of Devon and the historic

town of Dartmouth where earlier we met local lady, Lorna.

She had gone to her first ever auction

and bought her first ever auction property for £52,000

and it wasn't just a normal two-up two-down terraced house.

Lorna now owns a commercial unit which had until recently been a bar.

Plus the freehold of this huge building with the upper three floor maisonette already rented out.

Despite having no previous experience,

Lorna had plans to make downstairs a bar again.

What was it that appealed about running a bar?

I think there is history to it, really.

A good friend of mine used to run it.

So I've been this side of the bar quite a lot, really.

It is just a nice opportunity to be the other side of the bar.

For an approximate renovation budget of £10,000, Lorna planned

to have the doors open for her first customers in two months.

But before she could serve those first drinks,

she would have to jump through the various hoops

involved in the legal applications to run a licensed business.

It was not for another 18 months that we finally caught up with Lorna

to find out just what has happened to her plans for this former bar.

Well, there is no rekindled bar here

but there are a few clues as to what Lorna has done with the place.

Yes. She has now gone into the eatery business,

with pizzas top of the bill.

There is a seating area at the front

while behind the counter there's a new kitchen.

The back has been re-tiled and is now the storage area

and it all looks clean, bright and modern.

Over to Lorna now to find out why the plans for a new bar

did not, in this case, deep pan out!

I am from Dartmouth originally and I've been here a long time and I had

got to a point where I just wanted to be somewhere else for a little while.

So I moved to Bristol.

So I wasn't going to be here, really, so it was more a case of having

to have a change of heart due to personal circumstances.

But with Lorna now living just under 90 miles away,

she decided the former bar needed a change of use

and that's where the new lease holder for the restaurant, Deano, came in.

I was approached by Deano and he was quite keen to put together

a food outlet so that is how it came about, really.

Ever since, we have been working together in order to get it off the ground.

Lorna's leased the place out to Deano on the basis that he would do the refit.

But it seems the takeaway business wasn't the first option to spring to mind.

We kind of thought we would get some food involved

and run a very restaurant based establishment with a bar.

Obviously, we had to go through licensing and re-establishing the licence on the place.

And then it evolved from there.

We wanted to do more food and combine it with takeaway as well,

up until what we've got today.

The layout here has been changed

but the counter is from the original bar.

Deano paid for and oversaw the fitting out.

Now the work is completed, the eatery

and takeaway is already open for business.

The change of plans from the bar to a restaurant

and then to a combined eat in and hot food takeaway has meant

having to resubmit the planning applications on each occasion.

This caused a delay of over a year.

The hardest part of the process, I think,

has been dealing with local authorities in order to get the right

planning applications in and the right licences

and all the Ts crossed and the Is dotted has been quite a long slog.

Applying for a licence cost Lorna in the region of £2,000, so added

to her purchase price of £52,000, her outlay is around £54,000.

Despite being leased to Deano, Lorna's paying for the upkeep,

repairs and insurance for the pizza parlour.

Quite favourable terms for him.

Lorna is happy with the outcome and reckons selling pizza will be a good way to make some dough!

She plans to stick with this setup through thick...crust, or thin!

I think this is definitely a long-term investment.

I have formed good working relationships

and I'm happy with how it's worked out and I hope

we can run a good viable business for the town for a long time to come.

Lorna has spent £54,000 on the business

so has it been a good investment of her time and money?

Time to find out what two local property experts think,

beginning with the one who saw the place first time round.

First impressions walking in today are that it is a nice-sized tidy unit

with the essentials in the right place,

working nicely and flowing well.

It has certainly been renovated to a very high standard.

It has been improved a great deal.

The property has been fitted out to include a kitchen area

and obviously a seating area at the front which offers

the best of both worlds, both takeaway and eat in.

Lorna sees this as a long-term investment

so what sort of rental returns can she expect?

I happen to know that this particular lease is quite tenant friendly.

Therefore, the rent is likely to be the better part of £1,000 per calendar month.

My rental valuation of the unit

would be approximately £850 per calendar month.

Obviously, subject to lease terms.

Yes, I think 875 to about 1,000 a month

is probably what I was expecting.

So that's good to hear.

The valuations mean there is a possible rental return

of between £10,000 and £212,000 per year,

giving her a stunning potential yield of 18% to 22%.

But remember, Lorna will be paying for the general maintenance of the shop.

What if she decided to sell the business on?

I think the capital worth would be in the region of about £100,000.

If the property were to be sold in today's market,

I would expect it to achieve somewhere in the region of £100,000.

I am happy to hear that.

It is nice to know that my investment is fairly safe.

So selling the business on could generate a healthy £46,000 pre-tax profit.

Although organising this restaurant and takeaway business may have been a long haul,

Lorna can already see the perks this venture might bring in.

My hopes for this project are in the short term, lots of free pizzas!

And in the long-term, a good viable business.

Well, we hope you've enjoyed watching Homes Under The Hammer

and learned a few lessons along the way.

We'll see you next time for some more hot properties

and maybe some that aren't quite so hot.

-Bye for now.

-Goodbye.