Episode 71 Homes Under the Hammer

-Hello, and welcome to the show.

-For many, buying and doing up property

is just a dream, but for others it's a wonderful reality.

So are you a doer or a dreamer when it comes to homes under the hammer?

Well, buying at auction is exciting but it can be stressful.

The hammer goes down and, in a second, you've bought a house.

So if you are planning to buy at auction, make sure you're prepared.

So let's take a look at the auction properties

that were up for sale on today's show.

In Stoke-on-Trent, are things looking up for this two-bed house?

Just check the roof, cos I can't see what kind of state it's in.

And talking of roofs...you've got this, a London roof terrace.

It's just fantastic. I love it.

Want to take your first tentative steps on the property ladder?

Well, in Hampshire, I've found the perfect place.

Bizarre.

All of 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.

Your lot, sir. Well done.

Vauxhall in south-west London has changed massively

over the past 15 years.

It used to be an area dominated by offices and factories.

Now it's a popular, sought-after destination

with lots of new housing developments, cafes, bars

and incredible transport links.

100 yards from the hustle and bustle

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

tucked away on this beautiful little square.

You know, it feels a world away from busy, bustling Vauxhall.

It really is quite a little haven.

Now, this is the pleasure garden. Just look in there.

It's a communal space set up by the residents who live here

and there's also a gorgeous little cafe just over there.

It's got a real bohemian vibe to it on this square and, you know,

I'm loving it here.

Yes, it really is a sanctuary from fast-paced London life.

I hope the property is as good as its surroundings.

And here it is.

Now, it's detached but I'm afraid it's not the entire building.

I'm here to see the two top flats.

Now, the average one-bed flat in this area can command

as much as 350 grand,

so I was very excited to hear the guide price on this, just £310,000.

I'm going to get inside.

Now, I know £310,000 is a lot of money but for two flats in London,

there has to be a catch. Can't see what it is on the outside.

Lovely original sash windows and attractive brickwork bode well.

One of the first things I'd want to think about is seeking permission

to scale down this tree. That might not be so straightforward

as this property sits in a conservation area,

which might well mean there's a preservation order on the trees.

Now, this is interesting because the flats are described in the auction

catalogue as being non-self-contained.

That means they've not legally been converted.

So what you're really buying here is one property across two levels.

What you've got to decide is whether you want to keep it as one

or take the time and trouble to get planning permission

to turn it officially into two flats.

On this floor, you have a lounge and a bedroom with a bathroom leading

off it, and the kitchen is on the floor below,

along with another toilet.

It's all looking a little drab and dingy.

Let's see if the second flat fares any better.

The second flat has a kitchen but it's just as tatty as the other one.

But fear not, when all seems doom and gloom,

there is one glimmer of hope.

Permission for conversion for two flats was granted eight years ago

but that has now lapsed.

This nugget of information, well, it may give you some sway with

the planners but, as we know,

planning restrictions can change from year to year.

The thing that made them happy eight years ago may not prove popular now.

So you can't assume you'll get planning permission to turn

it into two flats but the great thing is, whether it's one or two,

it's a fantastic space in a great location.

On the top floor alongside the kitchen, there are two more

good-sized bedrooms, a very dirty bathroom and a separate loo.

And if you still aren't quite convinced,

there's one more set of stairs I haven't tackled yet.

I wonder where they could possibly lead.

Well, if you're wowed by all the greenery

and pretty little spaces outside,

look, you've got this, a London roof terrace.

It's just fantastic. I love it.

Over here, look, you've got Vauxhall Park, a wonderful, big,

open green space, here, a cracking view of the MI5 building.

And over here - look, can you see it? Got to go really close.

The London Eye. Brilliant!

# Let's go up on the roof... #

So it's nice to end on a positive.

The roof garden is this property's crowning glory.

So with a guide price of 310,000,

it seems like a lot of property for the money

but is it worth all the hard work?

I asked along a local property expert to give his views.

This property is very versatile.

You could either use it as one sole property,

one large flat with the roof terrace,

or probably would convert quite nicely into two flats,

maybe a two-bedroom and a one-bedroom

or possibly even two two-bedroom flats.

Well, with one-bedroom flats achieving £1,300 per calendar month

rental in this area, and two-bedroom properties £1,700 per calendar

month, it seems like a great investment for buy to let.

But what if they were converted and then sold on?

It would probably turn out to be a spacious one-bedroom flat

so you could possibly get up to the ranges of £325,000 to £350,000.

A two-bedroom flat in this building with a roof terrace,

you probably would achieve around about, let's say £400,000.

If it was stripped out and converted to just one large flat,

how much would it be worth then?

You could expect to get up to around about £600,000, possibly.

There is an awful lot of work to do in this confused house.

But if planning goes your way and you manage to separate these flats,

the rewards will be high.

Let's see who wanted this property

and its beautiful setting as we go to auction.

Three floors. You've got two non-self-contained flats.

Start low 300. Not going to go below three.

300? In the ar... Yeah, 300.

305. 305.

310. 315.

320. 325.

330?

-330.

-330.

-331? 332.

-335.

-335.

336. 337.

340. 341?

341.

-3...

-345.

-345.

346. 3... 350.

351.

351. Another spot on the right. 351.

-352.

-355.

-355.

3...

360. 365?

360. Standing up. Anyone else? 360.

First time, second time,

third and last time. Have you all done?

HE BANGS GAVEL Sold 360.

That one and only bid made by Bill

secured the two flats for 360,000.

His wife Kumi seemed rather excited,

and I think she has every right to be.

Kumi is a classical pianist while Bill works in IT.

Property developing is a new sideline for the couple

with Bill hoping to make this his full-time job in the near future.

I met them back at the property to find out their plans.

Congratulations. This really is a gem of a property

and you got it on auction day.

So how much had you, in your minds, intended to spend on the day?

-Well, it was your money.

-400. 400,000 was our budget.

When the hammer went down, my immediate thought is,

"Have I missed something on the legals? Have I missed something

"on the potential value in the end?

"Or have I missed something on the structure?"

I'd read the legals about 10 times myself,

once we decided we would bid, thought I hadn't missed anything.

But when we got home, the first thing I did

was papers off to the solicitor

and then the solicitor phoned me the next day with

the result of his look at the documents and there isn't a problem.

A bit of rooting around afterwards revealed there is a reason it didn't

attract a higher price.

The house was sold previously at auction only a month ago

and flipped, so no mortgage was available,

as most mortgage lenders demand that property has been owned

for six months before it's sold on.

Also, the short sale time meant the paperwork hadn't been filed with

the Land Registry, and that would put some developers off,

so with just cash buyers able to bid, Kumi and Bill weren't up

against the stiff competition that this property would usually attract.

Not only that, this flat was exactly in the area they were looking for.

I happen to know the area. In fact, a year ago we actually viewed

one property very close to here to actually buy.

And it wasn't actually big enough for both of us

but we looked at the area, we liked it, it's very arty,

and I happened to remember then that I visited this place,

this square, 20 years before,

and I just immediately thought, when we saw the address,

I thought we should see this place.

It's a fantastic building but it's just a bit confused on the inside.

So what are you two going to do to get the most out of it?

Well, um, the possibility is one property,

two floors with a roof garden,

or two flats, so one floor each.

We haven't decided on that yet.

We've got to start immediately now with getting electricity

and water into the place.

And then we'll do a strip-out, first phase demolition,

and start obviously building up, plastering, services,

without still knowing whether it's going to be permission

for two properties or one property.

We'll get the result of that within three months, hopefully.

Kumi wants me to finish it in three months after that.

I'm telling her six.

-So nine months in total.

-So, come on, roughly how much have you got

-to spend on this?

-150.

-£150,000 to really bring it up to scratch.

-Yeah.

So not only is this property sitting in a beautiful area

but Kumi and Bill plan a real luxury finish which could entice no

end of interested renters.

But once all the hard work is done, I really wouldn't be surprised

if we return and find these two have fallen under the property's spell.

Guys, I'm so excited to see the outcome of this property.

And I've got a cheeky suspicion that I think you might be moving in here.

-Bill, I can see the twinkle in your eye.

-I don't know what to say.

-Just wait and see.

-Wait and see. Good luck with it.

-So nice to meet you, Kumi. Thank you.

-Thank you.

Something tells me Bill and Kumi are going to end up moving into

one of these flats. I just know it.

They are so taken with this square. I can see why.

But, as ever, everything is subject to planning.

Will they get the go-ahead for the two flats?

You can find out what happens later on in the program.

I'm in the dynamic, sprawling, urban conurbation that is Stoke-on-Trent,

and yet, look at this, there are some lovely green spaces around.

This is Birches Head,

a delightful residential area with great transport links.

You've got Manchester to the north, you've got Birmingham to the south,

Derby to the east.

Oh! Yeah, there's lots going on.

MUSIC: "A Little Bit of Green" by Elvis Presley

There's also green space and plenty of activities

in Stoke-on-Trent's Forest Park, which is right on your doorstep,

as well as the shops in Hanley town centre, all within easy reach

from the area known as Birches Head.

So what else is going on here?

Well, I'm here to see a very traditional mid terrace

in this row of similar properties.

Good, solid housing stock. Make great homes or investment properties.

This is it. The guide price was £45,000.

Plus a little porch on the outside. Let's take a look inside.

I like these Victorian terraces.

All things considered, they should provide an investment opportunity

that is as safe as, well, houses.

Well, you're certainly protected from the elements by a variety of doors.

You've got this porch thing going on then through to the main door,

but it doesn't half make getting in a bit of a struggle.

And squeaks like you wouldn't believe.

And I just know if this is going to be a running theme of this house,

because you come into this little corridor

and there's this stud partition.

I would've expected to walk straight in from there into the front room.

And certainly with the addition of that porch, you don't need

to have this wall here, but it is only a bit of wood and plasterboard,

so get rid of that, open this up.

Because at the moment, what could potentially be

a nice little front room is actually horribly claustrophobic.

Not only is it light on space, the decor isn't what

you would expect either - black and white tiles and that parquet floor.

It's got a bit of a '30s theme going on

and there's definitely a door theme going on too - here's yet another.

I've never seen anything like that before. How very strange.

It's like a semi-cellar. It's not really, is it? How odd.

Strange things, properties, but through to the rear sitting room.

Actually, this room at last feels a little bit more open.

Chance to breathe. Another very interesting fireplace.

Stairs up to your bedrooms and then, very traditional layout, through

to the rear of the property where you've got the kitchen.

Um, well, you know, it could be nice. At the moment, er...

Why on earth would you do that - paint the ceiling gloss brown?

Anyway, kitchen, yes, it could be nice, and then through to the loo

and the bathroom. Just all needs a bit of work.

Basically, this house looks pretty sound and pretty standard,

despite the fact that the decor seems to have come from the era that style

forgot, when brown ceilings were all the rage.

When was that exactly? Will upstairs be pretty standard too?

Yep. Two bedrooms.

# And that's typical... #

Just as you would expect - two decent-sized bedrooms, no bathroom

and some tired decor.

No surprises here, then.

And talking of typical terraces...

Well, out the back of the property and what would have originally been

a yard area of a two-up two-down terrace

has been filled with probably the most popular and typical

extension in the country - single storey

which houses the kitchen and the bathroom.

Um, yes, it makes perfect sense. This out here, not in bad nick.

Nice that you've got the alleyway at the back there.

While you're up there, by the way, just check the roof,

cos I can't see what kind of state it's in.

# And that's typical... #

And an initial look at the roof shows it might need some work,

so best get someone to look at it.

# And that's typical... #

The backyard, like the inside, also needs a bit of sprucing up,

but I think it's all pretty straightforward.

If you were to buy this to let, you might keep the layout as is

and just renovate it.

If you wanted to make it your home,

you might think about some layout changes.

# And that's typical... #

But what does a local estate agent thing about this two-up two-down?

The main challenge of this property is to bring it to an up-to-date

standard which would certainly require new kitchen, new bathroom,

decor throughout.

There does seem to be some signs of damp as well,

so it possibly needs a damp-proof course and possibly a rewire.

And after all that had been carried out, what could this house,

that was guided at £40,000, be worth?

I would anticipate a resale value in the region of £75,000.

That sounds encouraging. What about rental?

I would anticipate a rental income in the region

of £450 per calendar month.

So not too many surprises with this one.

A fairly standard terraced house just in need of some sorting out.

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

Mid terraced house, two bed, popular spot, double glazing,

two reception rooms. So can we start the bid at 32?

32 right at the back of the room. £32,000.

Right at the back of the room. Have we got 34? 34 bid now.

34. 36? £36,000.

38? £38,000. I'll go in ones if it helps.

Can we say 39? At...

39, new bidder. 39,000.

40? £40,000. 41?

£41,000. 42?

Somebody in the aisle. 42? 42 at the back. 43?

44. 45. 46.

47. 48.

No? 48 still seated. Somebody at the back?

No. 48 still with you seated. At £48,000.

Another one anywhere else? If not, selling it at £48,000.

For the first time at £48,000.

For the second time. Third and final time.

Bid seated. No mistake at 48,000...

You bought it, sir. Well done.

£48,000 secured the Birches Head terrace,

which was bought by Nick and Cloge.

This one has a bit of an international flavour.

Cloge - that's short for Calogero - is from Sicilian parentage,

and Nick hails from the American state of Minnesota.

# All the way from America... #

I met them at the house to find out

what drew them to a property in Stoke.

-Nick, Cloge, great to meet you both.

-Nice to meet you.

-Nice to meet you.

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

As an investment. We just want to try, you know.

Nick's always wanted to do something like this.

I wanted to do it. So we went ahead and bought it.

-Are you mates or what?

-Son-in-law.

-Oh, right.

-Son-in-law.

-Got it.

And did that come about over a Sunday family gathering or something?

-Yeah, it did. Yeah.

-Yeah, pretty much.

-Oh, great.

-It was kind of more or less me that wanted to do it.

-He didn't really want to.

-Right, but you've drafted him in.

-Yep, drafted him in. Yep.

-Kicking and screaming.

-Yeah.

Cloge has started to build a portfolio

for some income and for a retirement fund.

He used to work in a car body repair shop but is now focusing on property.

With one already in this street under his belt,

he must know what to expect with these houses.

-What do you think about it?

-It's quite bad.

HE LAUGHS

-OK.

-It needs the work.

-It needs work, yeah. Yeah.

New kitchen, new bathroom. Central heating will need doing.

Uh, maybe some knocking down of walls.

Yeah, because it feels a bit claustrophobic in places, doesn't it?

-Yeah, definitely.

-It just needs opening up a little bit.

So who does the work, then?

It'll be him. I'm more or less just kind of the apprentice.

-So have you got a builder's type DIY background?

-No.

DIY background but obviously for the major stuff -

electrics, damp course, anything like that - I'll get a tradesman in.

The central heating I'll get people in.

Checking the electrics I'll get people in to do that.

With the rest, I'll be knocking down, the painting,

the decorating and bits and pieces, you know, I can do that myself.

-Do you both have jobs when you're not doing this?

-I do. I do.

-He's semi-retired.

-Right. What do you do?

-I work for a local bookmaker.

So are you betting on this being a success, are you?

-It should be, yeah.

-Give me some odds on it being successful.

Oh, it'll be, you know, one to 50 for sure. It'll be successful.

MUSIC: "You Better You Bet" by the Who

Well, with that kind of confidence, I'll wager they must be raring to go.

And when's the start date for Cloge and Nick?

-Tomorrow.

-Tomorrow?

-Yeah, yeah. Tomorrow.

-Wow.

-What's the first thing you're going to do?

-Get these nice carpets up.

Right. What's the budget for the work?

-10,000 to 12,000.

-Right. And timescale?

-Three to four months. Probably the four months.

-Right.

-Well, all interesting stuff. Congratulations.

-Thank you.

-Good luck to you both.

-Thanks very much.

-Look forward to seeing how you get on.

-Thank you very much. Thank you.

So what odds would you give Nick and Cloge

on making a success of this place?

Oh, I think fairly good ones.

Find out how they get on later in the show.

Coming up, we find out

why Amanda is so excited about her property purchase.

This is the thing that got me.

-This?!

-This.

In Stoke-on-Trent,

we see how a little encouragement turned this house into a winner.

I had to come down and just crack the whip

when he wasn't doing what he was meant to be doing.

-LUCY:

-But first we're off to

the south-west London area of Vauxhall

where we first saw a rather intriguing auction lot.

Described as two non-self-contained flats,

it was a number of higgledy-piggledy rooms

spread over the first, second and third floors

of a lovely old brick-fronted building.

It did have two kitchens, a bathroom and several toilets

and the top flat even had a roof terrace.

But it was completely dilapidated throughout.

And in terms of layout flow, well, forget it, there wasn't any.

And it was bought at auction for 360,000 by Bill and his wife Kumi

as part of their property development sideline.

It's a fantastic building but it's just a bit confused on the inside.

So what are you two going to do to get the most out of it?

Well, the possibility is

one property, two floors, with the roof garden,

or two flats, so one floor each.

We haven't decided on that yet.

Despite having no definite plans,

they hope to complete the full renovation in nine months

and on a budget of £150,000.

Now, over two years and three months later,

we're back with Bill and Kumi to see what they ended up with.

Wow. Wow! They've certainly upped the whole building's kerb appeal.

So let's go through the communal entrance

and see what they've done upstairs.

Well, we got planning permission to make it official - two flats,

which is really what we wanted to do,

which obviously gives a better return on the project.

So now on the first floor there's a one-bedroom self-contained flat.

Well, that is impressive,

with fantastic period features and high-quality flooring.

But in the corner of the room, there are steps. Where are they going to?

Now, that's an amazing kitchen space.

This is the first-floor kitchen,

coming from the first-floor lounge area.

And this is quite a big kitchen for a one-bedroom flat.

Because I love cooking, I really like space here.

There's a small cloakroom off Kumi's spacious kitchen

and then onto a fab bedroom.

There's an impressive ensuite bathroom.

And it's up a flight of stairs to what is now

the two-bedroom flat on the upper floor.

Remember that rather sorry rundown living area?

Well, just take a look at it now.

Well, this is the living area for the top flat.

And I think the most obvious thing we've done here

is we've taken the ceiling out and we've got a vaulted ceiling now.

And with the kitchen over here, we've got granite work surface

and we've actually managed to build in a little breakfast bar as well.

To go with that fabulous kitchen-diner,

there's the two bedrooms and both are ensuite.

There's even a storage room in the loft space.

Kumi and Bill have really eked out every inch of this building,

and I just love it.

But why has it taken over a year and a half longer than planned?

I think the main problem is that

it took us a year and three-quarters

to actually get power into the building.

And I have to say, that wasn't the fault of the utility companies,

as one might imagine.

There were other reasons for that.

But it's been seven, eight months ago now we got the power

and we've been steaming on since then.

It wasn't just the power that caused some problems.

They were also delayed by planning issues

and whether the roof terrace was a terrace or just a roof.

Having finally resolved all the issues,

they've ended up with two great properties.

So what's the plan now?

Originally the idea was about investment.

But since we started doing this project,

we really started falling in love with the square, the house.

So we would like to move in into one of the flats.

But we have so much stuff. I have a grand piano.

So one of the flats would not be big enough for us for long-term.

So what we would like to do is, having moved here,

we look for another property in the square

and when there is a nice house, we move in there.

Yes, I always thought they just might be tempted.

While Kumi might not feel there's enough space for a grand piano,

I would guess this conversion has cost a grand or two.

So does Bill know what the total bill is?

I know exactly how much we spent, down to the penny,

because I keep a log of it.

And it's, uh, by the time we've paid the bills, it'll be 300,000.

£300,000 is a doubling of their original £150,000 budget.

And with the £360,000 purchase price,

their total investment without taxes and fees is now 660,000.

Has it been worth going for that high-end finish?

What do two local estate agents think?

First impressions are of one of high-quality finish,

great design and just the ideal property for a first-time buyer.

Beautiful. The finish is absolutely fantastic.

Floors are great.

The kitchen quality, bathroom quality, absolutely superb.

This top-floor flat, which is split-level,

offers two good double bedrooms.

It has a great finish, great design and I can see it's ideal.

With that roof terrace, it's just going to be what everybody really wants.

With the upstairs flat, the vaulted ceilings

and the open-plan kitchen reception just give it such a lot of depth.

Just from a volume point of view

I think it makes the flat incredibly interesting.

Well, the two flats have certainly wowed the agents.

But will that be reflected in the resale value of the properties

Bill and Kumi have invested that £660,000 into?

Well, for this flat, from a value point of view,

I'd be suggesting putting it onto the market at about £450,000.

I'd say you would push it to go onto the market at £450,000.

And what about the upper two-bed flat?

You'd probably have to put that property on the market for £650,000.

The two-bed flat upstairs with that roof terrace is exceptional

and I'd sort of stick my neck out

and suggest £650,000-£660,000 in the asking price on that one.

Well, those figures could potentially see

a combined value for the two flats of over a million pounds!

That's a pre-tax profit of up to £450,000. Wow!

I think the flats are gorgeous and I'm so impressed.

What do they think about that?

-That's great, if we can make it. Yes.

-That's good.

-Good news.

Yeah, I think we'll sleep well tonight.

Yes, no wonder. I think I'd sleep well with those potential returns.

But this project consumed them for nearly two and a half years

and clearly financially they've benefited,

but are they still pleased they did it?

-We're both very happy with it, at the moment.

-Yeah.

Yes, I just want to make sure that

one of the flats can take a grand piano in.

SHE LAUGHS

MARTIN: Today in my hunt for property,

I'm casting my net into Hampshire and the market town of Fareham,

situated between the cities of Southampton and Portsmouth.

Well, the property I'm here to see is one of the types I really love -

it's mixed use.

Commercial unit downstairs, flat above with some storage at the back.

Guide price was £100,000-£120,000.

Apparently it was formerly a fishmonger's.

So let's take a look inside, just for the 'halibut'.

MUSIC: "Fisherman's Blues" by the Waterboys

So, what's the place like? Wow.

HE SNIFFS

Thank your lucky stars it's not smelly-vision

because it smells like a fish shop.

Eugh. Wow.

But that's exactly what we've got.

Um, one main sort of commercial area here. All the old units.

So you could imagine the ice and all the fish displayed nicely here.

It looks to me like it hasn't had a lot of renovation worked on it.

Shall I open the fridge? Should I open the fridge?

No, definitely not!

But talking about fridges,

one thing you have got here

is this massive industrial fridge or freezer perhaps.

Now, if you were to buy that,

it'd probably cost you quite a lot of money.

So if someone taking this on and running it as some kind of

food preparation type place, that's a real bonus.

Because you've got the front area there,

into the back here which I imagine is where all the fish was prepared.

You've got a toilet at the back there

and then through out into the rear yard,

which is where I think I'll go pretty quickly.

HE LAUGHS

HE COUGHS

MUSIC: "Take My Breath Away" by Berlin

Now, I know that this lot included a flat above the shop,

but I've seen everything there is in the shop...

..and I've checked out the back now

and I can't see any way of getting up there.

Other than that.

That can't be it, can it?

I think it is, you know.

HE CHUCKLES

I've been up some rickety staircases in my time,

but I think no staircase at all is a first.

Bizarre!

HE LAUGHS

Obviously, that's something to be addressed.

Ooh!

I haven't got a clue what we're going to find up here. But, whoa!

How amazing!

It's actually a really nice flat

and it looks like it hasn't been lived in for a very long time.

But look at the floorboards. Imagine those stripped back.

Nice sort of space there.

Through to this little middle area there

with some kind of swirly stairs going up to another floor there.

Then through to, well, I guess, the front of the property.

I'm actually above the main shop unit here.

A really nice-sized space.

It's got double glazing,

so it's obviously had some kind of renovation work done

in the not-too-distant past.

And I can't see any indication of where a staircase or anything was.

So a bit of a mystery, but what a lovely space!

MUSIC: "It's A Mystery" by Toyah

It's no wonder that the flat hasn't been used for a while -

no-one could get to it.

But what a potential bonus.

Building regs will have something to say about the stairs

and the two bedrooms will need a fair amount of work

before they meet current fire regulations

and can be deemed living space,

but it wouldn't be too tricky to put in exterior stairs

at the back up to the flat.

There's also a side entrance to this courtyard area from the adjoining road,

so this could make a pretty decent self-contained flat.

And, if that wasn't enough...

Well, out the back, you've got this little courtyard area

and then something which is described in the auction catalogue

as a storeroom,

which could be anything from a little shed to, you know, a whatever.

But, no, it's this place!

Absolutely fantastic space.

So straightaway I'm thinking this is a little project in its own right.

It could well be a development, a house, perhaps.

It's all going to come down to access.

There's a little passageway from the courtyard.

You might be able to use that.

You'd definitely have to have that checked out on the plans first, though.

Maybe there's some way you could put your car at that end or whatever.

It needs a bit of investigation.

But if you could get that planning permission

and get a building plot here - wow!

MUSIC: "Think About It" by Otis Redding

Mmm, really something to think about.

It might not be much more than an old garage or a shed,

but the fact that it's here

may mean planning might get past

to put some kind of dwelling in its place.

And with the flat and shop unit,

well, this lot is looking fantastic.

But what does the auctioneer who sold it think about what's on offer here?

The property's been in use as a fishmonger's.

Very well known, locally.

Obviously it's ideal for that sort of purpose,

but it would need some improvements, I think, for other uses.

On the upstairs, we've got the former living accommodation

which previous owners and tenants have used

but that hasn't been in use, I gather, for around 30 years,

since the internal staircase was removed.

Hmm. Well, let's talk numbers.

Could a mixed development bring in a decent return

on a lot that was guided at 100,000-120,000?

The resale value for the whole package is to a large degree,

I think, going to depend on

what happens downstairs in terms of the tenant.

Vacant commercial is very, very difficult to sell at the moment.

So with a new tenant in paying somewhere in the region of £1000 to £1200 per calendar month,

and a tenant in upstairs as well,

then hopefully once all the refurbishment's been done,

I would expect the property to have a resale value

somewhere in the region of £180,000-£200,000.

The flat and shop unit alone could be a viable investment.

But of course, there's also the storage area out back.

If this could be developed, what could that be worth?

As far as resale value's concerned,

if someone were able to squeeze a small two-bedroom new style unit

into the back of the plot,

realistically you could be looking at resale value

somewhere in the region of £140,000-£150,000.

So get planning for a development here

and this really could be catch of the day.

Well, it's always sad

when a well-established family business like this was closes

but that has happened now and it's time to look to the future.

And this 'cod' be a really good investment

and I'm sure someone bought it when it went under the hammer.

And our next lot this morning is Lot 28.

It's the town centre shop and upper parts in Fareham. Someone start me.

Middle of the guide. 110 to start me. 110, I should think so.

110 I have. And 12 I'm looking for. 110 I have. And 12, may I say...

12, thank you. And 14. 14 and 16, sir. 16. 18. Make it 20, sir.

20 and a fresh place from you, madam. Thank you. Two at the back?

120 I have and two I'm looking for. And two I've got. And four, madam?

Four. And six?

And six. And eight? And eight. And 130? 130. And two? And two.

And four? Split the difference with you. 133. 133. And four, madam?

And four. And five? And five?

134, I have, then. Lady stood at the back.

It's with you, madam, at 134,000.

If you're all done, then, ladies and gentlemen, at 134?

I'll be selling at 134, then, for the first time, if you're all out.

134 for the second time.

134, third and final time.

It's your bid, madam. Your number, please? K713.

So, for 134,000, the Fareham shop unit

with its flat and storage area were bought by Amanda.

Amanda is a professional singer

and is just starting to build up a property portfolio.

This is her second property purchase.

MUSIC: "I Love To Sing The Songs I Sing" by Barry White

# The songs

# The songs I sing... #

-Amanda, great to meet you.

-Hello.

-Congratulations.

-Thank you.

So why do you want to buy this place?

Well, if you look around, you see the potential, really,

of the whole building.

Um, there's obviously a commercial unit,

um, which I've already got a tenant for at the moment.

-You have?

-Yes, already.

-Oh, wow.

So that's sort of quite good to get the tenant,

um, and the flat upstairs obviously is going to be refurbed.

There's nothing in there at the moment cos it hasn't been

used for over 30 years, but this was the thing that got me.

-This?

-This.

-Why this?

-Because I could see the potential

in planning something for this place.

It's an empty store, but it's a very large empty store

and I'm hoping to get planning to actually build another property

-here as well, so...

-Oh, wow.

-Yeah.

Amanda's partner, Richard, is a builder and so it is with his help

and encouragement

that she can take on this fairly complex and multifaceted development.

Having already done one other refurbishment, she's no rookie,

but that was a three-bedroom house,

somewhat different from what she's got here.

-The residential flat...

-Yeah.

-What are you going to do about that?

Well, that's going to be converted into a two-bed apartment,

a two-bed flat.

There are two loft rooms which are fairly small

and restricted headroom.

Obviously with building regulations, you've got to have it fireproofed.

Really, it's, you know, it's going to be lovely up there.

There's nothing up there at the moment, no bathroom, no kitchen.

I've got to get the electric up there,

got to get the water up there, so that's the next step.

-Wow, quite a challenge.

-Yes.

-But a nice little flat when it's done.

-Yes.

And will the idea be to sell that or to rent it out?

-To rent it out, yeah.

-Let's move onto the back, then.

-Yeah.

-This area here.

-Yeah.

-Tell me what your ideal would be.

Ideal situation is if we can either have a two-bed or bring it up even

higher, because it's quite high as well, so...

-Single unit house?

-Just a two-bed house, yeah, yeah.

And will the idea be for you to actually build it or sell

it as a project for somebody with planning permission?

-No, no, we're going to build it.

-Right.

So, I'm selfish, I want to do everything.

SHE LAUGHS

So from the refurbishment of the shop to complete renovation of the flat

and then potentially a new build, Amanda will be involved in a complete

gamut of property developing, making this some learning experience.

-What about budget, then? Just do it sort of bit by bit.

-Yeah.

What are you going to do to the shop?

Well, because the tenant is interested in moving fairly quickly

because they don't want to lose the trade that the other person

obviously had before, it will be up to them,

but obviously we've got to do the building regulation sort of work,

you know, with the fireproofing the ceiling and the electrics, so...

So the budget for that little bit is what?

Well, we've looked at it as a whole, really,

-as a flat and the shop together combined.

-OK.

-And we were looking at 20,000.

-So the timescale for that bit?

Because the tenant is going to move in and renovate the shop how

he wants it, it's left us free to do the flat,

-so we're looking at three months...

-OK.

-..to do the flat, so...

Let's move on to the rear of the property here and this bit.

Obviously a bit...little bit more out there,

but what's the budget for the work here?

-We haven't calculated the budget for this yet.

-Oh.

I mean, we've looked around, but obviously, um, you know,

we haven't actually calculated an actual budget yet.

So what's the timescale for getting this sorted?

I'm looking, well, at least within a year,

-so, obviously to get it all done.

-OK, wow.

So then for you, once you've done this lot, is it on to more things?

-Yes. I have got a five-year plan.

-A five-year plan.

What's the goal at the end of the five years?

When, the market's right, obviously, sell everything.

-Well, congratulations.

-Thank you.

-It's all very exciting.

-It is.

-We look forward to seeing how you get on.

-Thank you.

-Lovely to meet you.

Well, I think Amanda's done really well with this place.

I like mixed use developments,

and with the option to potentially turn this place into a building plot

and then a house which she can rent out as well, yeah,

she's well set on her five-year plan.

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

Well, making the right design decisions when it comes to doing up

a property isn't just about choosing the paint colour.

It can actually seriously affect your profits.

Transforming your ideas into a reality can be a thrill,

but did our buyers get it right?

Let's go back and find out.

It was in Stoke-on-Trent in Staffordshire where

we first saw a two-bedroom mid-terrace house.

And though there was less than an ideal downstairs bathroom,

the two bedrooms really didn't lend themselves to any layout changes,

so in essence, the place just needed a full refurbishment -

new central heating, new bathroom, new kitchen, new carpets

and decoration throughout.

That suited Cloge and his American son-in-law, Nick.

Tell me why you wanted to buy this place?

Um, as an investment. We just want to try, you know.

Nick's always wanted to do something like this, I've wanted to do it,

so we're - we went ahead and bought it.

And did that come about over a Sunday family gathering or something?

-Yeah, it did.

-Yeah, yeah, pretty much.

# Well, I talk about it Talk about it

# Talk about it Talk about it... #

Well, they say talk is cheap,

but in this case, their little chat cost Cloge and Nick £48,000 to buy

the house at auction, and then there was going to be

an additional £10,000 to £12,000 to do the refurbishment.

The plan was to complete the work in three to four months,

with Cloge doing most of the work himself,

while rookie Nick helped out where he could.

And now, five and a half months later, we're back with Cloge, Nick

and Nick's young son, Phoenix, to check on progress.

Well, no real changes outside, but it was the inside that needed them

to roll up their sleeves and crack on.

Hey, and talk about changes.

Removing the hallway has really opened up the front room.

And the rear reception room's not bad either.

But what about that all-important kitchen?

And bathroom?

Great job, lads.

The two upstairs bedrooms have been spruced up and are ready to go.

So, how has it been? Come on, Nick and Cloge, talk to us.

What was first on the agenda?

We spent...we must have spent about a month just cleaning everything out.

We didn't order a skip straightaway, we just got some bags,

-some rubble bags, and we put all the rubbish in the rubble bags, didn't we?

-Yeah.

And we put them outside, so we got about 50, 60 rubble bags outside.

Then we ordered the skip and went to pick up the rubble bags

and didn't realise they were biodegradable and we couldn't lift

-nothing up, so it was like double the job, weren't it?

-That was, yeah.

That was a bit of a laugh, but apart from that,

everything else has gone pretty OK.

HE LAUGHS

Bit of a laugh? Yeah. That sounds like bags of fun.

But I think they've done a top job, particularly in the kitchen

and in the bathroom.

Well, the bathroom and the kitchen,

it was actually all designed by my wife.

What she did is she drew it down and says,

"I want you to do it this way," and I have to do exactly what

she tells me to do, because inevitably I'll get it wrong.

So, yeah, Frankie, that's my wife, yeah, she designed it all, you know,

the tiles, the kitchen, the layout, everything.

Well, in that case, it's been a very successful collaboration.

So where was Nick's role in all of this?

-Let's do it.

-Just tilt it, hey?

I tried to get him to paint, but he wouldn't do any top coat.

-All he would do is undercoat. He would not, would you?

-No.

Wouldn't do no finish. Just undercoating.

I mean it was more I would come down and just crack the whip

when he wasn't doing what he was meant to be doing, so, uh...

All right. Crikey.

Poor old Cloge sounds like he was having to take orders from all sides.

When he wasn't doing the work on the house, he was babysitting one of his

seven grandchildren and it seems THAT role might be getting even busier.

My wife's expecting our second child,

so six months and she'll have the baby.

We don't know what it is yet, so...but as soon as it's born,

we'll have it down to the next property and earning its keep.

BOTH LAUGH

Yep, that's it, start them young.

So has getting the whole family involved kept costs down?

-We have actually spent £12,000 on it.

-£12,000, yeah.

Got probably a bit more to spend, maybe another £500, £600,

maybe £1,000, but we...I'm pleased, really, with the budget, because, you know, we're very close to it.

Assuming a final budget of around £13,000,

with a £48,000 purchase price,

their total costs, without taxes and fees, would be £61,000.

Does that add up to a successful start for this family team?

What did two local estate agents think?

I think the property has been refurbished to a really good

standard.

It's ready to move into, it's clean and modern and fresh,

and it would appeal to all types of buyers.

Before the owners put this property on the market,

they should consider installing an electrical shower

and tidying up the outside as this will appeal to more buyers.

And appealing to buyers is what Nick and Cloge want to do,

as they're keen to sell this house on to generate some capital for another

project.

But if they couldn't sell, what kind of rental returns could they expect?

The likely rental income for the property would be in the region

of £425 per calendar month.

I'd put this property on the market for £395 per calendar month.

Well, yeah, that's what we expected, really, but we're not going to rent,

so, you know...

Even the lower £395 per calendar month would generate a rental

yield above 7%. Not bad.

Now, more important, how would the house Cloge

and Nick have invested £61,000 in fare on the resale market?

I would place this property on the open

market in the region of £75,000.

I would put this property on the market at £73,000.

Well, that's roughly what we expected, yeah.

That's about right, yeah. We're happy at that.

So, potential pre-tax profit between £12,000 and £14,000.

Not bad for starters.

So is that enough encouragement for them

to continue with property developing?

Definitely, yeah, we've enjoyed it. I've had some good fun. Nick's enjoyed it.

He's learned a few things, so I'd definitely do it again.

It was in the Hampshire town of Fareham where

we first saw a mixed development with bags of potential.

Not only was there a fishmonger's shop with a residential

apartment above, there was also a courtyard and storage block which

could, with planning permission, be turned into a small townhouse.

So lots of options and lots of possibilities, but also lots of work.

The flat alone hadn't been occupied for 30 years,

and had no stairs up to it.

Bizarre.

HE LAUGHS

But for professional singer Amanda,

this lot hit the right note for her burgeoning property developing

sideline, so she snapped it up for £134,000 at auction.

So why did you want to buy this place?

Well, if you look around, you see the potential, really,

of the whole building.

Um, there's obviously a commercial unit which I've already got

-a tenant for at the moment.

-You have?

-Yes, already.

-Oh, wow.

And the flat upstairs obviously is going to be refurbed.

There's nothing in there at the moment, and I'm hoping to get

planning to actually build another property here as well, so...

-Oh, wow.

-Yeah.

So, quite ambitious plans, but Amanda's partner, Richard,

is in the building trade, and this was to be a two-phase development.

The first phase was to renovate the flat

and do a few small changes in the shop for the new tenant,

and she hoped to complete this part of the work on a budget of £20,000

and a timescale of three months.

Now, just under four months later, we're back, and already the flat is

a step up from before, with an external staircase installed.

Less fun than the ladder, but more practical. And inside?

Wow, that's fantastic.

There's now a fully fitted kitchen, and there's even room for a table

and chairs.

The front lounge isn't bad either, and there are also definite

signs that the flat's 30-year wait for a tenant is over.

I advertised the flat.

The first person that came to view it had it straightaway

and that was it, so I'm very pleased with that.

Well, that's great, and not surprising

when you see what they're getting, with a modern shower room downstairs,

and there's the two bedrooms in the loft space.

# Ooh, I'm gonna shout to the top

# Shout

# Ooh, I'm gonna shout to the top

# Shout

# Yeah, shout to the top... #

Yes, this certainly was a development worth shouting about,

or maybe in Amanda's case, singing about. So how often was she on site?

Every day, seven days a week, I was there on my tummy,

on the floorboards, helping lay the cables for the electrician.

I was...had a pneumatic drill, I was breaking up concrete in the garden,

I was painting, stripping walls.

So I was definitely hands-on, I'd say.

With a new tenant lined up for the flat,

Amanda and partner Richard's hard work certainly has paid off.

And having another fishmonger waiting to take over where the old business

left off means less work there.

We haven't done a lot drastically to the shop.

We've done, obviously, the things that need to be done,

which are the electrics.

We've had the ceiling redone and plastered and fireproofed

and soundproofed.

The major refurbishment we've left to the tenants.

So with the shop and flat sorted and tenants in both,

that's phase one done.

Now, what about the 'egg-citing'

possibility of development at the back?

Um, well, this is going to be the next project.

We're planning to build a two-bed house here.

We've put in the full plans now and just crossing our fingers

and hoping that we will get what we want, really.

For that, Amanda and Richard have a provisional build cost of around

£60,000, but what's it cost Amanda to get the shop and flat refurbished?

We did have a budget for £20,000 and it did go over slightly,

so I think we ended up spending about £24,000,

so although it went over quite a bit, it was worth it.

Time to find out if she's right.

So far, she's invested that purchase price of £134,000,

plus a £24,000 refurbishment budget,

making a total spend of £158,000, without taxes and fees.

So do two property experts think it was worth it?

Well, the changes to the flat are dramatic,

from teetering up a stainless steel old loft ladder to get

up into the roof to be able to walk up a proper cast-iron staircase

and then behold what she's actually done.

I think she's done a grand job of it.

I like the flat, obviously it's very new, it's been refurbished.

It's not the largest flat in the world, but it's well-proportioned.

It's a good little sound investment.

Amanda already has tenants in both the flat and the shop,

but is she getting a competitive rent for them both?

She's done such a good job of the flat that

I would expect it to achieve a rent of between £600 and £700 a month.

I think for the flat in terms of rental figures,

you're going to get around £700 to £750 per calendar month.

Yeah, that's good, yeah, that's about what we've rented it out for,

so we're quite pleased with that.

Both agents thought the shop unit should also rent for around £600 per

calendar month,

which is also close to the figure Amanda is getting, so even at the

lowest total rental value of £1,200 per calendar month for the two units,

this would see an annual total yield of around 9%,

which makes this mixed development a very healthy nest egg,

but what could she get on the resale market if she sold the flat

and shop she so far has spent £158,000 on?

If you're looking to sell both the units together as a freehold

element, you're looking at figures around £160,000 to £170,000.

If we were to sell the whole, and assuming there wasn't any planning for the conversion

of the store at the back, I would expect this to achieve

somewhere around £170,000 to £180,000, perhaps even £190,000.

So there's a potential pre-tax profit of between £2,000

and £32,000 just for the flat and shop alone,

and then there's the possibility of the two-bed house.

If Amanda is successful in getting her planning and builds the mews

cottage, I would imagine that would have a resale

value in the region of £130,000 to perhaps £150,000.

For a two-bedroom house,

I think the restriction you're going to get is probably parking.

I think the value's probably going to be around £140,000.

That's good. Yeah, that's what we budgeted on anyway, so we were hoping it's going

to be about...round about that price, so, yeah.

Even with the build costs, that could see a very healthy profit,

making the whole development very worthwhile indeed.

So is Amanda tempted to switch from performance to property?

Performing is a passion, my music is my passion,

so I don't think I will ever give that up,

but property is a good thing to get into I think,

and it's enjoyable and it's been a great experience for me.

We hope you've enjoyed our insight into the world of auctions.

Yes, make sure you join us for more, next time on Homes Under the Hammer.

-See you then.

-Goodbye.

-Goodbye.