Episode 69 Homes Under the Hammer

Hello. In today's challenging market,

could you hack it in the property world?

If you get it right, it can be an exciting way to earn money.

Yes, and it can be even more rewarding

buying your homes under the hammer.

There are tense moments in the auction room.

Who will make the right bid at the right time?

Yes, properties can change peoples' fortune for better or worse.

So, what inspired the buyers today?

I'm in lovely Somerset viewing a cottage

that has something special up its sleeve.

There really is a fantastic surprise in store.

In Kent, first time developer Tom takes on this terrace.

Could there be trouble ahead?

-What are you worried about with this project?

-Everything.

And in Carlisle, what is it about this one bedroom flat

that's giving me nightmares?

Ah!

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.

I just love Somerset.

Its lovely hamstone cottages give me a warm glow.

I'm visiting a hamlet on the edge of the small town of Martock.

It's called Bower Hinton and I'm excited.

The property I'm here to see is on the main road,

although I don't think you're going to have to worry too much

about rush hour traffic through here.

What was on offer, though?

It was a three bedroom cottage...and that's it.

Nice honey coloured stone on the outside.

Shame about the uPVC windows.

It ruins the character a bit, but you have got a garage.

The guide price was £200,000. Let's take a look.

That garage is pretty useful on small country roads like these,

where parking can be tricky.

So, what have we got?

-Well...

-HE LAUGHS

That's a bit of a disappointment. When you come into this porch area,

the first thing that strikes you is the surface-mounted copper pipes.

The good news is I guess you've got central heating,

but I'd like to see that installed in a slightly different way.

But interestingly enough,

this was originally two cottages which have at some stage

been knocked together to create one,

and you certainly get that impression

when you come into this living area,

because a door there leads to an open plan and quite large

living area over that side, which I imagine was the other cottage.

But let's stick with this side for now.

A really unnecessary dividing wall, which I think you'd want to take

out to almost mirror that side

and create a nice open plan living area here,

because it is giving the impression of being a lot

bigger on the inside than it looks on the outside, cos it carries

on quite a long way back, ending up with this kitchen area here.

Now, it's obviously in a right old state,

and my guess is it's an extension.

Much lower ceilings than the rest of the property.

It's shoddy, it needs complete refurbishment,

but the good news is nice big windows looking out onto

a patio area there, so stuff you can work with.

Hmm, but work to be done, there is.

There's definitely scope for a major transformation here.

You could create a lovely cottage.

These rooms are all surprisingly good sizes

and with a bit of jiggery-pokery, you could improve the layout,

and that's where some thinking needs to be done.

Obviously, one of the things you need to consider

before you do it up is whether or not you're going to

keep it as one big house or possibly split it back

into how it originally was, two properties.

Well, if you decide on the two properties route,

one thing you'll have to do, amongst other things,

is put in a staircase, cos there is only one at the moment.

That leads up to two big double bedrooms,

obviously, in this side of the cottage.

Big, thick wall here, which is obviously where the

dividing wall between the cottages was,

and then into an area which I think is both bad and good.

Bad because it's a really disastrous use of space as it stands,

but good because I think it shows potential.

At the moment, the whole building is only three bedrooms,

but one of them there is absolutely massive.

Then you come down these stairs here to a bathroom and loo,

and this little area with cupboards or whatever it is.

I wonder if this could potentially be a bedroom and that bedroom,

certainly, at the front is big enough to hold a bathroom,

and you turn this suddenly into a four bedroomed property,

which I think is much better suited to this location.

This could be a brilliant family home,

but does it have a family sized garden?

Well, at the rear of the property, there really is a fantastic surprise

in store, because you might think that this is the garden

and that would be perfectly acceptable, because it's big.

But no.

You've also got this area here.

Now, largely laid out to concrete, but it's reasonably flat with

these few little sheds, so lots of extra space.

There's more!

Through here, there's this large area laid predominantly

to grass, although it looks like there's been some

vegetable growing going on, and that would be a fantastic use for it.

Vegetable plot, an orchard, perhaps.

What a fantastic addition to the house.

You guessed it.

It really is almost unbelievable, but on the end of those three

bits of garden, there is a final extra bit of garden.

How extraordinary.

That in itself would be fantastic, but the extra bit of good news

you discover when you come here is that over there is an access road.

It's used to access the allotments at the back here

and also the rear of these properties.

So, suddenly, I'm thinking,

"Is there a potential for this to be a building plot?"

Possibly.

My concern would be that there are no similar houses all around...

in terms of this little area here,

so the planners might have an issue with that.

Also, you'd have to have a permanent access via that road,

which might be difficult to get.

But, whichever way you look at it, it's got to be worth a punt.

This is a garden of epic proportions

and it could attract lots of different buyers -

families looking for space,

developers who would, of course, have to do their homework,

or maybe just someone wanting a slice of the good life.

What does a local estate agent think of the property

that was guided at £200,000?

I think the layout of the property is fine as it is.

I think upstairs is really the only bit you need to play with,

in order to gain an extra bedroom.

And I also think that character is important for this property,

so I think that obviously needs to be put into it, as well,

when the work's done.

Get the character back in and this would be a wonderful home.

But whilst renovating, what sort of resale value could the house

achieve if kept as a three bed?

You'd be looking to market it at £295,000

and hope to achieve £280,000.

And if it was renovated and turned into a four bedroom property,

we'd be looking at £335,000 and hope to achieve £325,000.

And how did the rental returns sound?

As a three bedroom property,

you'd be looking at £800-£850 per calendar month,

and as a four bedroom property,

you'd be looking at £900-£950 per calendar month.

Well, a lovely location

and a potentially delightful little cottage.

Yes, it needs a bit of work, but you can add value.

And then the added potential of that huge garden.

Definitely an interesting one to go for.

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

This was one of the last lots of the day.

Bower Hinton in Somerset.

A three bed hamstone mid terrace cottage.

If somebody would like to start me off at £200,000 on this?

195? Yep. 195.

At 200 now.

195, at 200 now.

200. 205?

202 and a half.

It's 202 and a half seated back left.

205? 207 and a half?

No? 205 seated here.

Against both of you, at £205,000.

Everyone else is done here? Quite sure?

I think they are. It's 205.

It's yours.

The successful buyer getting the lot for £205,000,

just £5,000 over the guide price, was Nick,

a Somerset local who saw the potential this place has to offer.

I met him at the cottage to find out his plans.

-Nick, congratulations.

-Thank you.

-Nice to meet you.

-And you.

-I hope you've got a big mower.

-Yeah, and a strimmer and a herd of sheep.

-Can you believe the size of this garden?

-No, it's huge.

So tell me why you wanted to buy this place.

I've been looking for a while and it struck me that there was

an opportunity to get in and turn it around reasonably quickly

and get it back on the market and hopefully make a turn on the thing.

-Is this something you do?

-Yeah.

I haven't for a while.

I've been out of the game for a few years, sort of through the recession,

but certainly it is what I've been involved in for the last 20-odd years.

So what have you been doing in the interim period?

-Erm, I've been working in the racing industry.

-Racing?

Yeah, a friend and I completely stumbled into it,

but we made a piece of equipment that replicated paddling in the sea,

so horses would essentially...

I don't know if you're familiar with a regular horse walker,

but they went down a ramp and they walked round

-and round in very cold saltwater.

-Oh!

It is a known thing in the industry. If you've got access to the sea

or the beach, you'd use it. If you haven't, you could buy one of our...

-Use that thing.

-..toys, yeah.

And what, it sort of makes it harder for them?

Yeah, there is a bit of resistance training.

The cold was good for recovery after fast work and that sort of thing.

So, from paddling pools for horses back to property,

and what a place to restart with.

Nick plans to take it all back to bare walls and renovate

the place from top to bottom.

And, in the process, add a fourth bedroom.

He has thought about restoring it to two two-bedroom cottages

but reckons the cost of putting in the extra kitchen, bathroom

and staircase would make any profit margin quite tight.

So, Nick is sticking with what he's got here. So, the garden.

What are your thoughts about that?

Er, yes, we've got to do rather a lot of clearing, I think, first,

so we can see what's there.

There's a lot of outbuildings and concrete pads and one thing

or another, so if we can clear it all back, see exactly what we've got,

there's an opportunity to bring access in for vehicles at the back.

-Now, when you say that, is there?

-There is, yeah.

There is a track that runs round the back that is privately owned

but rented to the parish.

And, for an annual fee, you can get a licence to bring vehicles in,

which most other properties in the street have done.

So, we shall do that.

Is there a guarantee that would continue, though?

No, there's not a guarantee,

but then the 40 allotment users and every other property in the street

might be up in arms, I think, if there was a move to remove that.

And I don't know the ins and outs.

-I need to speak further to the parish clerk about that.

-OK.

But I have been led to believe that it is, you know, fairly safe.

Because that then opens up the whole possibility of developing

-out the back, doesn't it?

-It does.

It does, and that is something I will have to explore.

I haven't really pursued that line yet.

Nick's first step is going to be a meeting with the planning authority,

but he's pretty sure it will be a flat no.

Best to check it out anyway.

Whether he gets that permission or not,

he'll press on with the cottage, giving himself six months

doing most of the work himself apart from the electrics and plumbing.

So, what is he hoping to spend?

In terms of the actual build cost, I am hoping to come in inside 60.

-60?!

-Yeah.

-What are you going to spend...? What...?

-I know. Well...

-What are you going to do?!

-Yeah!

I look forward to seeing the sunken bath and the Roman amphitheatre

and the cinema room and the helicopter landing pad!

-I felt, on the basis...

-60?!

..on the basis that everybody gets it wrong

and they always go over budget, I'd start high and then when you

come back I can say, "Well, actually, we managed to do it for 43!"

-Yes, exactly. Or 20. Wow!

-Yeah.

-Well, congratulations.

-Thank you.

-Good luck with it.

-Thank you.

-And we look forward to seeing how you get on.

-All right, brilliant.

Well, wow, a £60,000 budget.

Nick really must be the most expensive workman in Somerset.

Still, it's going to be interesting to see what he does to this place,

and he must, must, must investigate

the possibility of building at the end of the garden there.

If he can get the planning permission, wow -

does this turn into an interesting opportunity?!

You can find out what happens later in the show.

Now, from the idyllic countryside to a former industrial town

on the Kent coast.

Chatham is well-known for its maritime connections

and it was the business and industry that grew from its busy docks

that once upon a time made this place affluent.

Modern times have proven tougher, and despite being

in the Southeast, property prices here are still resolutely low.

Roads like this are a clear reminder of Chatham's industrial past.

The terraces just seem to go on for miles and would have

housed dockyard workers when Chatham was buzzing with industry.

Today, the houses are at the lower end of the scale

but they still make very decent homes.

The one I am here to see is this.

It's got three bedrooms and it had a guide price of 75,000-85,000,

and it sits at the top of a very steep hill.

I just hope whoever buys this has a reliable handbrake

and head for heights.

Still, I love these Victorian terraces

and this one looks in shipshape condition from the outside.

There are some quite steep steps leading up to the property,

so, you know, you have to take care in the winter months.

Well, they could become a little bit slippery.

Could be potentially dangerous.

But exactly as I expected on the inside,

you've got a great space here. I don't think this is damp.

It was probably a bit of condensation,

because this is an external wall.

So, nothing to worry about there. Could have a look and see

if you have got a nice little fireplace under there.

But a really good room.

And then you've got the stairs leading to three bedrooms

and a second reception room.

Now, I can see straightaway, sofa here,

sofa there, or great big table.

You can have all the kids having dinner.

It's really big enough to do anything you want in this room, which is good.

You've got a door which leads out to the garden. And the kitchen,

now, the good news is it's not in bad nick.

You could actually leave it as it is.

Sadly, though, the boiler has gone,

so you would have to factor that into it.

The boiler was, in fact, stolen from the property,

and replacing it means extra expense for any potential buyer.

However, the extra reception room and the well-maintained kitchen

might just even it out.

You've got the bathroom right at the back and there is enough

space in-between to sort of differentiate between the two areas.

So it's a great property, I really like it,

but I'd like to check out the rooms upstairs.

What have we got?

Well, the bedroom at the front is a good size, as is the second.

But the bad news is that to get to the third bedroom, well,

you have to go through this one.

And that third room is an extension, which means it has a lower ceiling.

You know me, my mission is always to get a bathroom upstairs,

but, depending on your reason for buying this place,

the cost may well outweigh the benefits.

Ups and downs seem to be a theme of this house.

So there are gardens and then there are gardens.

Now, I was expecting to see a yard out here.

But, actually, it's not quite that.

But, you know, could you make use of it?

You've got a little terrace area here where you could sit outside,

have a little barbecue. More steps.

Little grass areas here. More steps. Maybe you could do something there.

You certainly won't be playing cricket and rounders out the back, that's for sure!

And you've got to climb up here

and you've got a little grassed area here.

You've got fantastic news over Chatham, but this is

the type of garden that has been taken to a whole other level.

SHE EXHALES SHARPLY

-BREATHLESSLY:

-So - ugh! - a tiered garden.

Steep stairs up to the front door, a downstairs bathroom

and it is on a steep hill.

So I think it would be tricky to tempt young families or

people with mobility issues to this house.

So what does the local estate agent think of this property?

Guided at 75,000-85,000, I hope he's feeling energetic.

Its needs some TLC.

It's not great deals, it's not structural, it's all cosmetic.

But it needs addressing before anything happens with it.

And sold on or rented as quickly as possible, and turn it around.

Once the changes are made, what sort of sale prices are realistic?

I'd expect you'd get around 100, possibly slightly more, but then that

would be competing against probably better properties in the area.

The maximum you'd achieve per calendar month on a rental

property here would be £600.

However, I think it would go a little bit less to get the right

person in at the right time and have it rented out all the time.

It would be easy to rent out. They're not hard properties to rent.

A solid, standard terrace that would rent as soon as it is renovated.

Just what plenty of people are after.

So, let's see who bid at the auction.

Three-bedroom terraced house for improvement.

It's got gas heating, double glazing and vacant possession.

£80,000, can I say? Give me 75 then. 75.

75 bid, I have. 80 I am looking for. At 80, do I see? At 80 I am bid.

85 is against you, 85 do I say?

At £80,000, then, I've got.

Two anywhere else? 82, I'm obliged.

84 now, do I say?

84, back to you, sir.

86, it's against you.

86 if you wish.

Are we all...? 86 bid.

88 now if you like.

At 86,000... 88. No?

At £86,000 standing at the back, 88 I want,

are we all done at £86,000?

I will sell for the first time...

£86,000 standing at the back for the second time.

Third and final time at £86,000, are you sure you are all done?

86,000 and the number, please.

That final bid of £86,000 was made by Tom, who's a builder

and has already got his hands, well, rather full.

This is his first investment project and he's hoping to turn this

property around rather quickly and get it back on the open market.

-So this is your first investment opportunity ever?

-Yeah, yeah.

And why did you decide to go down the auction route?

-Erm, well, I'm a fan of the show, you know.

-Yay!

Obviously seemed just a good way to use a bit of money, you know.

We've done it on loan, so obviously it's a case of get moving

and turn it around as quickly as possible.

-What would you like to sell this on for?

-Erm...

In an ideal world, maybe 110,

but I think realistically I would do well to get 105 for this.

-OK.

-But we'll see.

So, with the purchase price of 86,000

and a budget of nine to ten grand, there's only one thing on my mind.

-Where's your profit?

-I-I...

I've got no expectations of making a huge amount on my first go.

I do want to make, hopefully, at least 10,000, maybe.

So, you know, if I can keep things relatively cheap,

I do think there's a potential to make, hopefully, around ten.

Tom has done a bit of research about the sale prices in the area

and while he admits to being a novice at costing the work,

he's optimistic about making a small profit.

With his own building skills and the help of his plasterer brother,

he's hoping to save money and get this project done in two months.

This timescale could be crucial.

When you borrow money, as Tom has had to to buy this property,

you have got to factor in things like loan interest and then there is

rates, agent, selling and legal fees, all adding to your costs.

I hope he isn't planning anything too ambitious.

What are you going to do to really turn this place around?

You've got a bathroom downstairs, two bedrooms, with one leading off.

Can you change that, have you thought about the layout in here?

Yeah, I mean, I looked into this road and I know that some houses do turn

the staircases around, but I think the cost would be too much for that.

So, really, I think

it's just to make a bit of a selling point of this area.

Remove this wall, make a nice sort of kitchen/diner.

You know, the rest of the house will be a case of neatening it up.

Magnolia walls, you know,

a nice blank canvas for someone to put their stamp on it, really.

So the only thing is, I'm just thinking,

you will be probably selling this on to an investor who will be

renting it out and reaping all the benefits.

-Because it does really stack up in terms of a rental property.

-Yeah.

For me, rental, you know, is not out of the question.

But it is a worst-case scenario.

I do want to sort of, you know, sell it on, get the money and go again.

I mean, my goal for the future is to carry on doing that and maybe

get a few buy-to-lets as I go and when it's affordable.

But, for the first one, I know it is a good rental area, but I do want to move on.

-What are you worried about with this project?

-Everything!

-Are you?

-Are you nervous?

-No, no, no! Excited and nervous.

I think a lot of it is going to be new to me, but it's nice to

get your hands dirty and then have a look at the end result.

So I think I'm really looking forward to just sitting back at the end

of it and, you know, just being happy with what I might achieve.

Now, I know you are going to be busy because I have met little

Charlie today and I know your fiancee has gone back part-time to work.

How are you going to fit it all in and what do you think Charlie is going to make of all this?

Well, he's going to have to see a little bit less of me.

Maybe on Sundays especially.

But, no, I'm going to be doing a lot and I've also

got my cricket on a Saturday to think about, so it's going to definitely be

a seven-day week, well, for the next couple of months at least, anyway.

So you are very dedicated dad, I can see that,

but a very dedicated sportsman.

-What's all that about and how do you find the time?

-I just...

I enjoy it, you know.

This will be fun, my cricket is always fun and, obviously,

the little one is even more fun. So...

-Let's hope the house will be as fun as well.

-Yeah, let's hope so.

-Tom, lovely meeting you today. Good luck, and I can't wait to see what you do here.

-Thanks, Lucy.

-Well done.

-Cheers.

Tom has a great property here but it's a classic rental.

And I'm worried, well, instant profit might be hard to find.

See what he decides later on in the programme.

Still to come - an unassuming one-bed in Carlisle proves

a puzzling proposition.

Well, it is a bit difficult to see how you can reconfigure this space.

And we'll go back to Kent

and find out how Tom's little changes became big ones.

It was about what I could have hoped for with the major work that we did.

But first, we are back in Bower Hinton in Somerset.

It was here that Nick paid £205,000 for this three-bedroom cottage

which came with a serious amount of space and potential outside.

And a serious amount of work to be done inside.

This was going to be Nick's first property project in ten years.

He had left property development behind to work on other

business ideas in the horse training industry.

But with lower property prices attracting him back, I felt

certain he wasn't holding the reins tight when it came to the finances.

In terms of the actual build cost, I'm hoping to come in inside 60.

-60?!

-Yeah.

-What are you going to spend...? What...?

-I know.

-What are you going to do?!

-Yeah!

I look forward to seeing the sunken bath and the Roman amphitheatre

and the cinema room and the helicopter landing pad!

-I thought, on the basis...

-60?!

..on the basis that everybody gets it wrong

and they always go over budget, I'd start high and then when

you come back I can say, "Well, actually, we managed to do it for 43!"

-Yes, exactly. Or 20.

-Yeah.

-Wow!

I know, I know, I did go on a bit about the budget, but I'm

so used to people underestimating the work and what it will cost.

So, did Nick's technique of bumping up his budget work?

Did he manage to get anywhere with developing that humongous space

and did he manage to give the cottage the wow factor?

# All I can say is wow

# It's like wow

# Wow!

# Deeper than I've ever been

# Take it down

# Down!

# Right down to the sugar stream

# If it's hot, if it's cold

# It's got soul

# Wow... #

Downstairs sure is wow.

And it's much more open and welcoming than it was.

Er, well, this was originally two rooms in here.

There was a glazed partition across here which we've taken out.

And the kitchen was through in that room.

So we got rid of the partition, made that room a utility,

and knocked through the back of that room

and have created a sort of downstairs WC and back door.

Nick has certainly transformed the downstairs.

Will upstairs have as much wow?

# It's like wow

# Wow!

# Deeper than I've ever been

# Take it down

# Down!

# Right down to the sugar stream

# If it's hot, if it's cold

# It's got soul

# Wow... #

I had hoped to see a fourth bedroom appear

and thanks to some reconfiguration, this is now a four-bedroom house.

The master bedroom has an en suite

where the old, tatty family bathroom was.

And the main bathroom has been created between the two front bedrooms. I love it!

# But I like it, I love it

# I want some more of it... #

And the wow factor continues out the back with some landscaping and tidying throughout,

as well as access created at the back of the property.

Something I was really keen for Nick to explore was planning permission

to build another property as the land that came with

this lot was immense and there was certainly room for it.

But, take note - having the space doesn't necessarily mean

getting an OK from the council.

I wasn't that hopeful, but we had to do our due diligence

and investigate the possibility.

And it was a fairly firm no on the grounds that the

area of the garden we could have developed was outside

the village development boundary

and the whole area of the village is a conservation area anyway.

So it was going to be extremely difficult to get the planning.

However, there was another clever solution to the lay of the land where everyone won.

What we have done is sold a small section of it to next door.

There's a new fence gone up outside, so that helped.

It's all looking tickety-boo.

Nick had joked he would call his budget 60,000

and hoped to come in at 43 and look clever.

However, although he spent the upper budget of 60,000,

he did do something clever.

Nick has taken a salary for the work he's done -

seven days a week, as it turned out!

If you're not earning while doing up a property,

that is a cost that has to be factored in

if you are to be realistic

about what profit you're really going to make.

So, do always remember it's not just your materials,

it's your time and labour.

Talking of time,

Nick had set himself a timescale of four to six months.

I think, essentially, we've done six months work in four and a half,

and it's been quite full-on... But it's been fine.

And, for my money, it's been worth it, too.

With the purchase price at auction of £205,000,

and £60,000 spent on the work,

Nick's total spend has been £265,000.

Will two local estate agents be as impressed as I am with his work?

I think the person who's renovated the property

has done an exceptional job.

I think they've done it to a very good standard.

He's done some great touches with the open fire

and the wood burner in the downstairs spaces.

Wood burners are very popular at the moment,

and are proving to be quite a cheap source of heat,

and I think the utility and kitchen area are superb,

and I think they'll have no problem selling it.

I think the property presents very nicely indeed.

I think they've maximised the potential,

so it's going to be very appealing to families,

escaping, perhaps, from more of a dense area in a town,

they can have a good-sized plot

and have vegetables, et cetera.

The country living.

Ah, the good life.

But will Nick be seeing a good profit?

Remember, his total spend on this place was £265,000.

We would market the property at an asking price of £325,000.

I would value this property £350,000-375,000.

That's, er...very interesting,

and the advice we've had is between those two figures,

and we're currently marketing it at 350,

so I don't think they're too wide of the mark - one high, one low.

If Nick achieves his current asking price,

he'll be looking at a pre-tax and expenses profit of £85,000,

so I'm sure he'd agree that this lot was worth a gamble at the auction.

But what about the future? Does it hold horses or houses?

Oh, a bit of both. Can't say goodbye to horses completely.

But for the time being, houses.

From Nick's cosy cottage

to a property of slightly grander proportions...

..Carlisle Castle.

This imposing medieval building

is set in the border town of Carlisle,

and has seen much strife among the peoples of either side.

Personally, I don't think there'll ever be a war

between England and Scotland again...

Mind you, you never know.

And if things did kick off, they'd probably start here in Carlisle -

a Roman garrison town built to defend Hadrian's Wall,

until this castle was built by King Henry I around 900 years ago.

Well, before battle commences, I'm going to go and seek shelter.

There are also striking remnants of the city's industrial past,

as well as handsome period properties.

Today's auction lot is a little smaller than a castle,

but from tiny acorns... or is that "bijou" acorns?

I don't know about you, but I've always quite liked the word "bijou".

Unless, that is, it's forming part of the description of a property,

when generally it's just another word for small.

Well, in this instance,

small but perfectly formed is what I'm here to see.

A one-bedroom flat at a guide price of £35,000 -

plus, it shouldn't take us too long to look around.

Ooh!

Looks all right. Living room over that way,

but facing you when you come through the front door is the kitchen.

It's quite a nice size - just units down one side of the room,

which I think works quite well,

it gives you a chance to have a kitchen table over there.

Yeah, it's nice - for the size of the flat, it's brilliant.

Through this way, um, a bit sort of...

Pfft! ..jiggery-pokery going on here.

We've got the bathroom -

actually it's a toilet with a shower in it back there,

a bit of storage there, and then through to the one bedroom.

Yeah, it's good!

# Mm, c'est si bon

# Lovers say that in France

# When they thrill to romance

# It means that it's so good... #

C'est bon, indeed.

And the bedroom isn't too petit either.

There are rather a lot of doors in this back area,

and maybe there could be some streamlining.

But overall the rooms are all a good size,

if not particularly fashionable.

There are signs of damp here and there,

but I don't think they're too bothersome.

Outside, the brickwork looks in good order,

and actually rather nice, in some rare British sunshine.

The front has some good, functional double-glazed windows,

which are, today, de rigueur.

How about the back?

Well, it's already shaping up to be a pretty good flat for the money,

so you're not necessarily expecting much outside space,

but the good news is you have actually got some.

This little courtyard area here, some plants,

some hanging baskets, that'd really make this rather pleasant,

and on top of that, you've also got access - or shared access -

to this little bit of - well, scrubland, at the moment.

But that could be a decent garden as well.

So, just two added bonuses - yeah, it's good news.

With a one-bedroom property,

any way to get that extra feeling of space

and somewhere to escape to is highly desirable.

And, yes, right now it's low-maintenance,

but could easily be a bit more spruced up

if that was what was wanted.

Otherwise, it's a good spot to place a table and chairs,

or even a sun lounger, if the weather stays like this.

Is there anything else that could be done to make this

more of a dream pad?

Well, it is a bit difficult to see how you could really

reconfigure the space in here.

I mean, maybe knock down some of these walls, that wall there,

make it a bigger kitchen that you just walk straight into

off the road - I mean, you could go completely over the top

and take this wall out,

to give a huge great living-kitchen-dining...

everything area, if you like.

I mean, so many options - yeah!

Alternatively, of course...

you could pretty much just leave it as it is.

I mean, right in the city centre of Carlisle,

like it is, there's always going to be a market for one-bedroom flats,

so maybe a lick of paint, quick vacuum around...

Yeah. Be fine.

Actually, it's quite cosy as it is.

Very cosy.

# Dream

# Dream, dream, dream... # MUSIC SLOWS AND FADES

-SPEECH ECHOES:

-Too many doors...

Ooh!

Too many doors. Too many doors!

Too many doors!

Oh...bit damp. Too many doors!

Got to find a way out... Too many doors...

Aah!

HE COUGHS

It was just a dream. Phew!

# So, wake me up when it's all over

# When I'm wiser and I'm older

# All this time I was finding myself

# And I didn't know I was lost... #

Well, I've certainly woken up to the great flat on offer here,

and I think that whether you like lots of doors or not,

and whether you want a bath in your bathroom or not,

this could be a great starter home or a rental goldmine.

We invited a local property expert

to cast his eye over this leasehold flat

guided at 35,000-plus.

First impressions on walking round, it's very nice -

one-bedroom ground floor flat.

It all seems to be in good order, it just could do with a new kitchen,

maybe a little bit of upgrading and decorating, really.

Apart from that, it's good to go.

Who did he think a flat like this would be best marketed to?

A property like this could appeal to an investor,

or even first-time buyer looking for a flat,

get his first foot on the property ladder,

because it's relatively cheap, it's not going to be too expensive,

and it suits a multitude of people, really.

And how much did he think it could be worth on the rental market?

A property like this, if it was on the rental market,

should achieve around £350 per calendar month.

And on the sale side?

Once fully renovated,

this property should achieve around £55,000 on the open market.

So, who fancied this bijou corner flat when it went to the auctions?

Well, I'm pretty sure it wouldn't have given anyone there nightmares.

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

£35,000 guide, who's here for this?

35.

Thought not. At £25,000.

25 here. At 25, I'm bid.

At 25 in once.

26, 27...

28, 29...

29, I've got. 30.

31.

32, 33....

34, 35, 36...

Thinking about it. With you, sir.

At £35,000.

We're in the market, we're here to sell.

£35,000, first time.

35, second time.

You're out. £35, 000, then...

Third and final time, all done, all out, selling away, then.

To you, sir, Congratulations.

The hammer fell on the guide price of 35,000.

A bid placed by Brian and his wife Joanne.

Brian owns a skip company, and Joanne owns a nursery.

It was she who I met back at the property

to find out more about their choice to purchase this pad.

# Her name was Joanne

# And she lived in a meadow by a pond... #

-Joanne, good to meet you.

-Yes. Nice to meet you, too, Martin.

-Congratulations!

-Thank you.

-Um, good little flat, actually.

-Yeah, lovely.

-It is, it's really nice.

-Tell me why you wanted to buy it.

The price was right, and we were looking to invest in property,

and we'd been to quite a few auctions,

and some of them were just too expensive,

so we chose to bid on this one, and we were fortunate to get it.

So is it an investment purchase, then, or for you, or what?

Yeah, it's an investment purchase for myself and my husband,

and we're looking at renting the property in the future.

Right, so what were you looking for, what were your criteria?

Something that was easy to maintain

and didn't need too much work done on it,

-and a quick turnover and get the tenant in.

-Right.

Well, you certainly ticked all the boxes here, I think.

-Bit of damp here and there you're going to sort out...

-Yeah.

..but apart from that, any major plans for it?

I think the main plan is the damp,

and I think the kitchen floor will actually need to be lifted,

and the plasterwork taken off in the kitchen and then re-laid

and replastered, and then decorated again.

And then some paint, presumably?

Yeah, decorate each of the rooms -

I think a lot of it's wallpaper that you can paint on top of,

so we'll be looking at touching that up, and freshening it up

in the bedroom and the living room and what have you.

OK. And what's the budget?

-Um, 2,000-2,500.

-Oh, wow!

-Leave the bathroom as it is, then, pretty much.

-Yes,

I don't think we'd get a bath in there,

we'll just stick with the shower that's currently there,

which looks to be in good condition, so, yeah.

That budget does sound small,

but there's not a great deal to do here beyond the cosmetic,

so long as those damp patches in the kitchen, especially,

aren't signs of anything too sinister.

Joanne and her husband will be bringing in experts

to do that part of the work, but are also planning on being very hands-on

themselves, and want to get the flat shipshape in four to six weeks,

for it then to go for rent as a furnished let.

Do you know what kind of money you might get, renting it out?

-Probably 350...

-Mm-hm.

-..a month, and we are looking at furnishing it,

so possibly a little bit more.

So, have you looked into the pros and cons

of furnished versus unfurnished?

I have, I've done my homework on the internet,

I've looked at what's already available in the city...

-What difference does it make?

-Maybe about £20 a month.

-Right.

-Um...

-Worth the bother, then, or not?

Yeah, I think so. Definitely, yeah.

Especially if you've got somebody coming from away,

that maybe doesn't want to start and buy furniture,

they're moving to the area with work, then I think it may rent

better for somebody maybe in a professional capacity.

-Right, having it furnished.

-Mm, having it furnished.

-Well, congratulations.

-Thank you.

-Good luck with it,

-and we look forward to seeing how you get on.

-Thank you, Martin.

Well, I think Joanne's got herself a good little property here,

but I am a little bit concerned about that budget. £2,000?

I hope that's going to be enough.

You can find out how she gets on sorting it out later in the show.

Now, if you want to profit from property, timing is crucial,

and it's not always easy to get it right.

Yes, don't let time pass you by.

Let's see how today's buyers got on.

We return now to Chatham in Kent,

to this three-bed terrace in the middle of a very steep street.

I say three bedroom, but the third was off the second, so never ideal.

This house had its ups and downs, with a downstairs loo

and an upwards garden.

I thought this could be a great rental,

but first-time developer and first-time dad Tom

bought it at auction for 86,000

and planned, after spending a ten-grand budget, to flip it.

He didn't plan to do anything radical in this two-month timescale,

but move the stairs and the bathroom.

But with houses around here going for around 100 grand,

well, I was worried.

Where's your profit?

Erm...I've got no expectations of making a huge amount on my first go.

-I do want to make, hopefully, at least ten.

-OK.

So, you know, if I can keep things relatively cheap,

I do think there's a potential to make hopefully around ten.

Three months later, it's time to find out

if Tom has kept to his plan

and if he's going to squeeze any profit out of this project.

Tom, on a friend's advice, decided to move the stairs

in order to create an open-plan living area downstairs,

which also means the newly-fitted kitchen

seems more spacious than before.

Moving the stairs also means

Tom has been able to create a hallway upstairs,

therefore making an entrance for the third bedroom.

The two larger bedrooms have been plastered,

painted and brightened up.

The back garden has been tidied.

The bathroom, through the kitchen, has also been polished up.

But it's the turning of the stairs

and the third bedroom entrance that makes the most difference here.

OK, so where I'm standing here was a cupboard,

which obviously the staircase ended at a different side.

So what we've done is knock away these two walls,

change the staircase around.

What that's allowed us to do now

is create separate access to the third bedroom.

We've put this partition wall in here,

which has made that bedroom slightly smaller.

But still a good size double,

and then obviously the corridor that meets the third bedroom,

making it a full three-bed house.

Originally, Tom had said he wouldn't move the stairs due to cost,

but having consulted an estate agent friend,

Tom's decision to move them and create

an open-plan living area downstairs,

and a third bedroom upstairs, is an inspired one.

So what other work has he undertaken here?

Kitchen, changed. Believe it or not, it's a second-hand kitchen.

Found a little online bargain.

Bathroom's still got work to do.

Unfortunately the house is 95% complete. A few little touch-ups.

Garden - a few touch-ups.

You know, couldn't really do too much with it,

but just a neaten-up out the back.

Yeah, generally that's the job complete.

Tom used professionals to move the stairs

and to fit the supporting joists,

but with a little help

from his partner Emma and his cute son Charlie,

he was able to do a lot of the work himself.

However, because he changed his plan, so has his two-month schedule.

It is a fraction over three months.

Yeah, three months and really only a few days' work left.

A few touch-ups here and there.

Bits of skirting, little bit of painting and making good.

But, yeah, three months is about what I could have hoped for

with the major work that we did.

Major work it is. He's done a lot more than he intended.

I'm even more worried that he won't make any profit.

So how much has he spent?

We've spent all the money we needed to. It's at 11,500.

So I'm quite pleased with that.

We probably spent about 6,000-7,000 with the whole staircase changing,

which has involved a gas fee, certifying the steels.

So there's a lot of costs gone into that.

Well, that's not too bad. Phew!

That means Tom's spent a total of £97,500.

Will these radical changes be enough to make this house rocket

through the £100,000 ceiling price the agent told us about earlier?

Two local property experts came along to give us their opinion.

I loved the staircase going through the middle.

I think it really adds to the value of the house and space.

He's turned the stairs around, he's opened it all up

so it does give it that more modern feel to it

in what is a very old property.

Was creating the third bedroom entrance a worthwhile exercise?

I definitely think it was worth moving the stairs

and creating that third bedroom.

It will add value to the house for sure.

I think it's a good idea to try to create that third bedroom.

You have to think about the cost to achieve that

and your end result to make the decision

as to whether you do that or not.

If the property was up for rental, what could Tom charge?

You could achieve a figure in the region of £750 per calendar month.

I expect to achieve around £600-625 per calendar month.

And if he was to sell on, what would be the valuation?

I would expect it to achieve within the region of 100,000 to £110,000.

I'd recommend the price from £115,000 to £125,000.

The work we've done and the advice I've been given,

I think the higher one... Realistic to start at about 120, 125.

But I think 115's the goal here.

If we can get 115, I'll be very happy.

It's good that Tom is being realistic.

It means he's much more likely to achieve that quick sale he wants.

115,000 would give him a profit of 17,500 grand,

minus taxes and fees.

So the gamble of spending more time and money has paid off.

Now, are Tom and baby Charlie game for another project?

Yeah, the goal is to sell this and get straight on to the next one.

Can't wait.

We're back in Carlisle and another first-time investment.

Joanne was also hoping to spend very little renovating

the one-bedroomed flat she'd bought with husband Brian for £35,000.

So did she manage to stick to her plan?

There wasn't much work to be done.

But to rent out furnished or not furnished, that was the question.

So have you looked into the pros and cons

of furnished versus unfurnished?

I have. I've done my homework on the internet,

I've looked at what's already available in the city.

What difference does it make?

-Maybe about £20 a month.

-Right.

-Worth the bother, then, or not?

-Yeah, I think so, definitely, yeah.

So with a plan in place, it was time to get to work.

We're now back three months after I first met Joanne

to see how it all looks now.

Much better.

Clean, fresh and simple is the order of the day.

My main concern here was the damp, which was primarily in the kitchen.

So in the kitchen,

we've knocked off the plaster to about a metre and a half height,

injected it with the damp-proof course.

Replastered, decorated throughout. New flooring and new appliances.

All sounds simple enough.

But fixing the damp wasn't entirely smooth sailing.

We'd had the decorators come in while we were away on holiday.

We thought, "Great, the job will be finished when we get back."

Then when we came back,

it looked as though somebody had thrown a bucket of water

at the bedroom and the living room walls, so the damp...

It had pushed the damp through into the other rooms.

So we had to start all over again

and knock off the plaster in the bedroom and the living room.

Nightmare.

And just goes to show that sometimes fixing one problem

can create another.

In this case, however, it did mean the living room got a bit

more of a make-over than was originally planned.

In the living room, we've knocked off the plaster

to a metre and a half high,

we've injected the damp-proof course right round -

replastered, redecorated.

We've put in a new flooring and also the new fire.

That used to be an old gas fire.

We've replaced it with an electric fire.

The room has also been furnished.

Although I wasn't convinced that furnishing the property

would be worth it,

there's no doubt Joanne has a lovely eye for interior decor.

She and her husband did a lot of the work themselves

and enlisted family to help out, including daughter Lucy,

who's just putting the finishing touches

on the newly painted back wall.

The problems with the damp-proofing meant the job

has taken three months, rather than the planned four to six weeks,

but how did the £2,500 budget fare?

We've come in at just over 3,000.

With the additional problem of the damp and the finished look

of the place being so good, I think a £3,000 spend is pretty impressive.

Added to the £35,000 purchase price at the auction,

the total spend here has been £38,000.

This is planned to be the first of many,

so has Joanne enjoyed the experience?

Yeah, definitely. I think it can become quite addictive, really.

We're already looking out for other properties that might kind of

take our fancy and would benefit from being renovated.

Putting the furniture into it - I love that bit the best.

When it's all given a bit of tender love and care.

So, yeah.

A success, then, in terms of job satisfaction for sure.

We invited two local property experts to cast their eyes

over Joanne's handiwork, including the one who viewed it with us

last time we were here.

Is there anything he particularly likes about this place?

The fact that it's finished off to a really nice standard.

It's got a good sized kitchen,

we've got room in there for a dining table as well.

It's a great location for rental for the hospital.

It's handy for the local shops and the town as well.

It's not over the top, but it's been done well.

The living space is separated from the bedroom and the bathroom,

which is great, by the little back lobby.

That works well.

The decoration is neutral. Bathroom's modern, kitchen's modern.

It's ready to go.

When the vendor bought the property, it was in relatively good order.

It looked... It was OK.

I know she's had done quite a lot of work to the place.

But most of that's hidden away that you can't see.

It's a good flat.

The total cost of the property including all the work

and the furnishings was £38,000.

The idea was to rent,

but could some notable sales figure suggestions change the plan?

What would these experts market it at sale wise?

I think the property will achieve in the range of £55,000 to £60,000.

If the property came on the market,

it should be advertised in the region of £59,995.

Well, they're both great valuations. Yeah, brilliant.

So a potential profit of £22,000 before tax and expenses.

I'd be tempted, but not Joanne.

She and her husband really want to rent this,

and that's the course they're sticking to.

So what rental prices could they demand?

For a one-bedroomed ground floor flat in this location,

I should imagine you would be looking between

350 and £400 per calendar month.

I think the rental market is probably the best way forward

for this property in the current climate.

It should be able to achieve in its condition £375 per calendar month.

Great. Well, we've pitched it at 380 per calendar month,

so that's kind of in the middle. I'm happy with that.

That £380 per calendar month would yield a massive 12%,

and I really think Joanne's done a top job

on her first property venture.

So does she have any advice

for people who want to follow in her footsteps?

Obviously do your homework, look at the legal pack.

Visit the property, which I know a lot of people don't actually do.

Just go for it.

She took the words right out of my mouth.

Well, that's it for now.

But we'll have lots more great stories for you next time

on Homes Under The Hammer.

So make sure you join us then.

-Goodbye.

-Goodbye.