Episode 9 Homes Under the Hammer

Hello. With the property market in a state of flux,

you have to make your own decisions. You need to do your research,

-and trust your instincts.

-Yes, and you need to find out

how the property market is performing.

So, see for yourself. And one way you can do that

is by visiting your local property auction.

There's all sorts of property up for auction,

thousands of lots available, every month.

Yes, so why don't you go along to your local auction house and see what's for sale.

Here's the properties we found for you on today's show.

In Hertfordshire, this former police house brings on a fit of nostalgia.

This serving hatch is so 1950s, isn't it?!

In Ebbw Vale, Gwent, I uncover a new purpose for an old favourite.

If you love bubblewrap like I do, you're going to love this lean-to.

And in Derbyshire, the upstairs layout of this two bed house is, well, inconvenient.

Basically the loo at that end and the bathroom at the front there.

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.

-Sold at the back!

My property search brings me to Hertford,

an affluent county town around 50 minutes by train from London.

Its proximity to the capital makes it popular with commuters.

And the average house price in this area is over £400,000.

Is it really possible to find a bargain here?

Well, the property I'm here to see was built in 1957

when slinky springs and hula hoops were the toys of the day.

When Elvis Presley was in the charts with All Shook Up.

And Benny Hill hit our TV screens for the first time. This is it.

The guide price was £250,000 for a three bed detached. Let's take a look.

MUSIC: "Benny Hill Theme Tune"

Well, it certainly seems pretty large from the outside.

So what's the internal layout? Well, through the front door

and a really nice large open sort of entrance area here,

which is good news. A living room there.

The stairs up to your bedrooms. Another living room/dining room to that side there.

Down the corridor a bit further, a downstairs loo.

I'm hoping there is one upstairs. So, a cloakroom area.

Lots of places to hang your coats and everything.

Immediately I'm getting the feeling this is a house with a lot of space.

But also, I'm getting a feeling it's a house that hasn't really been touched very much since it was built.

And nowhere more so than in the kitchen here.

It definitely needs some new units. And whether or not you keep a few original features...

This serving hatch is so 1950s, isn't it?!

# Come on, pretty baby, let's a-move it and a-groove it... #

There are definitely a few things to move along in this former police house.

I wouldn't close up the hatch. I'd hammer down the whole wall.

That might turn a small kitchen into a pleasant kitchen diner.

And there's certainly plenty of space inside and outside,

as it's built on a huge corner plot.

The late 1950s may not have been a particular architectural highlight in the whole history of the world.

Certainly you get that impression when you come out the back here.

But what you have got is a really nice-sized garden.

And I think ... creativity, that's what you need!

Why not stick a conservatory on the back, a really big one?

Open up those doors there from the living room, maybe into some great bifold doors.

Really bring the garden into the house, the house into the garden.

And suddenly, ponds, wildlife, trees in bloom, yeah, you're talking!

# Oh, life could be a dream

# If I could take you up in paradise up above... #

This could be a fantastic home, but could also be a brilliant development opportunity,

because it's on such a big chunk of land.

To the side, this large slice of garden has been fenced off.

And remember, this is a desirable area.

The house is opposite a school, which might deter some,

but it's set back from the road, so I don't think it's a dealbreaker by any means.

Upstairs in this house that went to auction guided at 250,000,

there's a large family bathroom and three good-sized bedrooms.

Oh, look at that, lovely! More throwbacks to the 1950s.

An old fireplace. No, actually, I don't think we'll turn it on,

otherwise I think I might disappear into a big blue flash as it explodes.

But you know what, here's a random idea - why not put like a picture frame around it and spray it?

It just keeps an element of where the house originally came from.

Oh, all right, don't then. But anyway, look, here is a bedroom.

And it's like the other bedrooms up here, a really good size.

Big enough, I think, to put some kind of an ensuite.

You've got lots of space to play with. And that is good news.

Right, I'm off to revisit my Elvis Presley collection.

# I'm just a hunk, a hunk of burning love... #

There's a lot to get hot under the collar about here.

A big plot, big house and big potential.

But with the guide price of 250,000, will a local estate agent

think this '50s throwback is a viable proposition?

I think it's got potential. It's a very good size.

Nice good-sized rooms. You can extend on the back of it.

You can extend on the side, going over the garage.

So, yeah, it's a good blank canvas to work with, definitely.

Well, this place is big enough for a 1950s big band.

But once refurbished, in its current layout,

will a resale be music to someone's ears?

I think selling it as a three bed detached refurb, it's about £375,000.

And if an extension were added, with one or two bedrooms,

what effect might that have on the value?

The ceiling price at the moment for this property is about £500,000 as a four or five bedroom detached.

Would extra bedrooms mean a higher rent?

As a three bedroom property, I would expect it to rent for about £1,200 a month.

To rent it out as a four to five bed,

it's got a maximum return of about £1,400-£1,500 a month.

Well, it's a big house in a good area with lots of possibilities.

Opposite the school, which might put some people off,

but I don't think it's really a negative factor.

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

Lot 78 is attractive,

well located, three bedroom detached house.

I think we've got a telephone bid. 260 anywhere?

If not, you tell me. 250, thank you very much. 255, anywhere?

255. 260? 265.

265, thank you. 270.

275. 280.

285, yeah? Thank you. 290.

295.

It's with a lady here on my right. The bid's at £290,000.

Thank you, 300.

With interest from a phone bidder continuing, we rejoin the auction a little later.

It's with a lady, the bid's at £335,000.

336. 337. 338.

338? No? With the lady, been there all along, the bid's £337,000.

337 for the first...

337 for the second...

337 for the third and final time.

Are we all done? Sold! Well bought, 337.

That final bid of £337,000 was made by Carolyn,

who was at the auction with her partner, Alan.

The couple live in Hertford and are both accountants.

Carolyn recently took redundancy,

so she'll be concentrating a lot of her efforts here.

# There's a house on the corner... #

I went to the property to meet her and find out what she had planned for this house on the corner.

-Carolyn, good to meet you.

-Thank you.

-Congratulations.

-Thank you.

So tell me why you wanted to buy this place?

My partner heard that somebody he works with

had bought a place by auction, and he was very impressed.

And so he started looking. And we went down to the auction.

It's the first time we'd been to one. Having looked and viewed the property,

we knew - we live in Hertford, so we know it's a nice town.

And, you know, we know the area. So, um, we thought we'd give it a go.

So have you ever done anything like this before?

We've got a couple of properties that, um, we've refurbished,

you know, sort of decorating and perhaps, new bathroom, kitchen,

but nothing as big as this project, we're hoping this project will be.

-In fact, he's even remortgaged our house to pay for it.

-Wow!

-So, why this particular house then?

-The land, really.

We're hoping to be able to split one big property into two three bedroom semis.

-Wow! So what made you think of that?

-Just land.

I mean, there's a garage with nothing on top of it.

We're bound to be able to put something on top of that.

And there's semi-detached in the road and things.

So we thought it might be worthwhile trying for that.

Apart from those two other properties,

Carolyn recently refurbished a flat, which she now lets out.

Her son Adam is going to lend a hand on this.

But there were some issues that threatened to arrest her ambitious plans for this development.

When we looked at the legal pack, it did say the police had put something on there,

cos it was an ex-police house, saying it could only be a one building residence.

But we still bought it on that basis, but they were happy

to drop that before we did the final transfer of monies.

So at what point did you do negotiate that, after you'd agreed to buy it, like an exchange?

Yes. Sort of between the auction and the final exchange.

-Were you surprised they said yes?

-We thought originally if it's got to go through planning,

it doesn't really matter. But the solicitor says,

"Look, ask them before we do that, and they might just remove it."

And they were quite happy to do so.

Result! So, a lesson there. If you don't ask, you don't get.

And providing planning is granted,

this house won't have to go through a trial separation.

# Everything is twice as nice

# Between me and you. #

Carolyn's already had an architect draw up some draft plans

to divide the house right down the middle,

extending to the right for a kitchen and first floor bedroom.

On the other side, an extension above the garage will provide bedroom accommodation.

And the garage, more ground floor space.

Having taken advice from some local estate agents,

Carolyn's discovered that two houses could be more than twice as nice.

They were saying that there's a cap of 500,000, more or less,

on one house, one big house.

With two three-bedroomed semi, you'd probably get about 300.

-Each?

-Each.

-So there's an extra hundred grand in it, perhaps?

-Fingers crossed.

-And what kind of extra building costs, do you think, in terms of splitting it into two?

Cos there's two lots of electricity, two lots of gas, two lots of whatever else you're going to need.

That's a little bit of an unknown at the minute,

so that's where we're going to need to get the builders in

and get some tenders.

In the meantime, Carolyn's set an initial budget

with a small contingency of £80-£90,000.

But that could change when she speaks to some builders.

-And what's the timescale for this?

-Six or seven months, we're thinking,

by the time it goes through planning and then tendering.

-Well, listen, congratulations.

-Thank you!

-Good luck with it.

-Thank you.

-Yeah, I hope it turns out all right.

# Everything is twice as nice

# Between me and you. #

So, two for the price of one, if Carolyn gets her way.

Thankfully, her solicitor was able to remove that restrictive clause.

Will her luck continue? You can find out later in the show.

This is the town of Ebbw Vale in Gwent.

It has good transport links and has seen a fair amount of regeneration.

I'm here to take a look at a property in a nearby village called Rassau.

Now it's only ten minutes from the centre of town.

And this area is popular with families.

Properties around here, they get snapped up like that,

particularly if they happen to be in a quiet cul-de-sac like this one.

So, we've got a semi-detached house, it's got double glazing.

And a nice big space here at the front. So far, so good.

You could even do what some of the neighbours have done,

dip down and put in some off-street parking,

because parking is a little tight around here.

I'm going to check the house out.

One word of caution here. Before you put in off-street parking,

you'll need the local council's permission to drop the curb and cross over the pavement.

There are also rules about the materials you can use.

So, park with care.

These stairs are a bit of a climb, but bearing in mind

that auction guide price of 59,000 for a three bedroom house,

it might just be worth it.

What a really nice surprise. This is in good condition.

Now, I wouldn't get put off by the artex ceiling and flowery carpet.

You know what? I'm sure we had that carpet in our house when I was about ten.

You've got the lounge here, nice big bay window.

There's central heating, which is something you can't always expect when you buy at auction.

Now, here is the kitchen.

I know I always go on about this,

but it really is the hub of the house, isn't it?

This will be ideal for families and entertaining,

because it's open plan. Lots of light coming in.

I think you could get away with keeping these units even,

if you're thinking about letting the property.

I think it's just cosmetic, general work that you need to do here.

You've got a lovely view looking out to the garden, with these nice windows.

Oh, what's this? This is a bit of a funny one. Come with me.

A wobbly lean-to, that smells really, really musty.

It's useless as it is. I would like to add a permanent structure here.

You could have an extension. And then it would be a utility room,

a space to hide that washer and tumble dryer.

You could even put your boots and your coats out here.

I think that would really work well.

And what would also work really well is changing the rather,

well, original approach to building materials.

If you love bubblewrap like I do, you're going to love this lean-to

because it's covered in it!

# Pop, pop, pop, pop goes my mind

# My mind... #

I don't want to burst anyone's bubble,

but that's just not going to do.

However, a good extension, either a simple utility

or a larger kitchen extension,

could add value to this property.

Upstairs, there are two decent-sized double bedrooms

and at the front, there's a much smaller third single bedroom.

The bathroom is in good condition too,

although the shower might need changing

as it's been adapted for somebody with a disability.

The decor and carpets could do with a modern touch,

but inside, this place is in pretty good condition.

So on the face of it,

this place seems a good buy without any catches

until you go outside

and there are definitely no fairies at the bottom of this garden.

Outside, you've got some really lovely garden space here

which is very pretty. Lovely roses.

However, some people may be put off by this main road behind

because it could certainly get noisy at times.

Now, it services all the valleys.

But don't let it put you off

because this is about to be rerouted two miles that way.

It's part of a big ten-year plan

and that noisy road will not be there in the next few years.

Martin and I are always nagging you about doing your research

and this is the sort of thing we mean.

This long-term plan will undoubtedly not only enhance the garden,

but also the value of the house.

However, you'd have to put up with the noise in the short term.

But for the guide price of £59,000, I think it has a lot going for it.

What does a local estate agent think?

I like the location of the property.

I like the bay windows, I like the nice high ceilings.

Good-sized rooms.

It obviously needs a bit of TLC and just general upgrading

and some modernisation.

The only major drawback is the parking issue,

so I would suggest to any potential buyer

to look into the possibility of putting off-road parking in

as that would improve saleability and value on the property.

So, what could the property sell for?

Once all the work has been completed, in its current layout,

I would suggest an asking price of around £90-£95,000.

What about the rental market?

I think this property would rent for £400-£450 per calendar month.

This place has a lot of appeal.

It's in a good location,

it does need modernising, but nothing too drastic

and there's even the option to make changes here.

And you can extend the kitchen.

You can always make money on property when you can add value.

I'd say it's a pretty good one to go for.

Let's see who snapped this up when it went to auction.

Onto Lot 24, freehold semi-detached three-bedroom house.

I'm going to come straight in with my proxy bid of £50,000.

Looking for two to get things on.

Two is standing at the back. Thank you. My proxy bid is 54.

54. 56, thank you. 56 standing.

56 is bid, my proxy is out. 58, looking for 60.

58. I'll take ones if it helps.

59. Thank you. 59,000 is bid.

Very close to being in the market, but I can't quite do it at 59.

Who's going to give me an advance to 60? Thank you. 60,000.

60,000 is bid. Any advance on 60,000?

Any advance on 60,000? I'm going to sell it.

Last chance. No?

OK, I'm going to sell it to you, madam. 60,000. Thank you.

The successful buyer who made only one bid

and a quick exit was Shannon.

She's self-employed and runs her own business

which helps social enterprises and not-for-profit organisations.

She's never refurbished a property before,

but hopes this purchase could be the start of a new career for her.

I met up with Shannon at the semi to discuss her plans for it.

# I'm back in business

# I don't want to run again. #

-Shannon, it's great to meet you. Congratulations.

-Thank you.

So, what's the story behind you wanting to buy this?

I've been looking at properties with my son, who's a great enthusiast

and we went to an auction, then saw this property at a second auction.

But then last minute thought, no, I'm not going to bother.

But literally did.

Half an hour before the auction, jumped in the car, went down.

Was the last one to sign in.

Just got in by the skin of my teeth.

But just really to see how much it was going to go for.

But it stopped at 59 and I thought, it can't go for that.

So I bid 60.

And almost fell off my chair when they said, sold.

I really didn't expect to buy it.

-So you were just being nosey, really, weren't you?

-I was, yes.

That's the top and bottom of it. I was being nosey.

I wanted to see who was buying it and for how much.

When you viewed this property for the first time, what did you think?

Why did you think, "Ooo, it's quite interesting?"

Well, I think it's in pretty good condition. It needs updating.

It's a bit old fashioned. But it's basically sound.

I also know the area really well.

My daughter lives just a mile or so away. My friends live down the road.

So it was local knowledge, I suppose,

because the one thing that would have put me off is the road.

But I know that's being moved, so it sort of all fell into place, really.

On the face of it,

this is just a cosmetic upgrade with the possibility of adding value.

So, is first-time property developer Shannon

going to play it safe in her 12-week schedule?

I think, obviously, the bathroom needs updating

because that's been adapted.

Um...it's the, I'm not sure what it is, it's the lean-to,

the bubblewrap room.

That's the major expenditure, I think,

to turn that into a proper sort of, um...extension on the building.

Those are the main areas, really.

Just decorating afterwards and...

maybe smartening up the staircase, that type of thing.

So that it's a more attractive entrance.

What kind of budget has she got for all this?

At the moment, I've got a budget of about £7,000 which I've put aside.

But it really depends on value for money.

If it's a bit more, if it goes up to ten,

but it adds value to the house, then I'm quite happy to do that.

I'm fortunate that I have a nephew who's an electrician

and my niece's partner is a bricklayer,

so they've promised me good rates.

So we'll...But I'm shopping around.

Keeping it in the family first. I like it.

Is anything worrying you about having bought this at auction?

Um...I think it's probably not the best time to sell,

so I'm obviously going to have to rent it or sit on it for a while.

Shannon does have another option.

If selling or renting doesn't work out,

she might move in here herself and sell her current home.

However, that's not Plan A,

which is really to add property to her other business interests,

or maybe even change careers.

Do you think there's a chance that you may go full on into property?

It's certainly something I'm interested in

and my eldest son is certainly encouraging me that way

because he's got an interest.

But he's still in university at the moment,

so it's encouraging me to spend my money, really,

rather than his, you know.

Shannon has started off in property with a good sound house

and has secured mates' rates to do the work.

So, given she's new to developing, how much is she going to do?

Well, the decorating is something I'll do myself.

The garden, my sister's a very enthusiastic gardener,

so I think it needs a bit of taming, although it's a really nice space.

So she can come down and give me a hand and some tips on that.

But most of the building work will obviously be done by contractors.

So it's just the decorating, really.

Do you really think this was meant to be?

Because there you were one day, just being a bit nosey,

checking out the auctions, you bought it,

you paid £1,000 over the guide price.

You think you've got a bargain.

Yeah. I think it was meant to be.

I'm a great believer in fate and I so nearly didn't go to that auction

and I so nearly didn't get in.

So it was, yeah, I think it was meant to be.

It's been so lovely meeting you today. Good luck with this project.

-I can't wait to see what it turns out like.

-Thanks very much.

This project started out well for Shannon,

considering she only paid £1,000 over the guide price

and she wasn't even going to buy a house on auction day, anyway.

I really hope those property gods continue to look kindly on her.

But will this be the new career she's looking for?

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

Still to come - in Derbyshire, a nice open staircase

doesn't seem too much to ask for.

Just a normal staircase with spindles and a rail.

In Gwent, Shannon finds the lot of a newbie property developer

is not an easy one.

The condition of the house was not as good as we thought it was.

But first, in Hertford,

did Carolyn keep her accounting eye on the budget?

And the rest. I think you can double that.

We return now to Hertford, where earlier in the programme,

accountant Carolyn and her partner Alan

bought this house on a large corner plot for £337,000.

In the past, they've renovated a couple of other properties

and they rent out a flat,

but as I discovered, this place had another attraction.

So, why this particular house, then?

The land, really.

We're hoping to be able to split the one big property

into two three-bedroom semis.

I mean, there's a garage with nothing on top of it.

Bound to be able to put something on top of that.

And there's semi-detached in the road,

so we thought it might be worthwhile trying for that.

They set a budget of £80-90,000, but were waiting on building tenders

as they weren't sure how much it was going to cost.

They thought the work would take six to seven months

and a lot depended on planning permission, too.

It's now almost eleven months later

and the detached property has been split down the middle

and an extension been added to each side.

Creating two three-bed semis.

Inside both houses, the kitchens...

bathrooms and en suites

have been fitted to a very high standard.

Carolyn is delighted with the curb appeal of the two houses.

The original house was quite square with a door in the middle.

We built the two-storey side extension where the garage was

and that gave us the new front door, two bedrooms

and the new kitchen for one of the houses.

And then there was a second extension at the rear

to give us a bedroom and a kitchen for the other house.

The original hallway shows where the division took place.

The original living room remains in the corner house,

but no longer looks out onto the garden.

Because behind it, in the new rear extension is this super kitchen.

Tasteful cream units look great and there's also a downstairs cloakroom.

In the left-hand semi, removing that hatch

and the wall to the original kitchen created its living space.

The new extension is home to the kitchen,

black and white in this house.

With great views out onto the garden.

Very pleased with how it looks from the outside.

We had to provide parking for two vehicles for each property.

And the gravel works quite well for the parking for two vehicles.

I'm really pleased with them.

In fact, it's going to be hard parting with them, really.

The house on the corner kept the original staircase.

There are now three bedrooms and a family bathroom.

They're all well proportioned

and the large master has an en suite.

Both houses have been completely rewired and replumbed.

In the left-hand semi, a staircase has been built.

Opposite the top of those stairs is this very smart family bathroom.

There are three neutrally-decorated bedrooms.

With an en suite for the master bedroom.

As Carolyn explains,

the actual building process has been relatively quick.

Since you were last here, we put in planning permission,

we managed to get planning permission to split it into two

and then about six, seven months after we bought it,

we started building

and it's taken five months to get to a more-or-less finished product.

Carolyn and Alan's builders have achieved a really good finish

and with help from her son Adam,

Carolyn's been busy painting the fences.

The council were keen the character and look of the area be maintained,

so new fences and landscaping have been added to the plans.

Carolyn reckons this has added £10,000

to their original budget of 80-90,000.

So, have two houses cost twice as much?

And the rest. I think you can double that.

I mean, the two together,

we're probably about between 560 and 570 all told.

Based on the £570,000 figure,

having paid £337,000 at the auction,

that means a further £233,000 was required.

It has been much more expensive, but we have got two good-quality houses.

And if we were selling, I think we would've made some money,

but we plan to rent them out.

What do two local estate agents think of these two new semis?

Each house is laid out slightly differently,

so I think that's a nice thing.

I think the fact that the kitchens are a good size

and the living space is also really quite generous,

that will go down really well with buyers and tenants.

I think the houses have been done very, very well.

Because it didn't look like it had the scope to make it into semis,

but they've done that with two very good extensions.

The fact that both properties have en suites

really is going to go down very well with both tenants and buyers.

The standard of work is high enough at this kind of level.

The garden's a reasonable size, as well, for new builds,

and there's generous parking, so it's got a lot of plusses.

With the total investment standing at 570,000,

how much could these two houses achieve on the resale market?

If I had to put these up for sale,

I think they'd both achieve around the same level.

And my thoughts on price are around the £275,000 mark.

I would expect the houses to achieve £275-285,000.

Based on those valuations of £275-285,000,

if both houses were sold,

Carolyn's facing a loss of £20,000 or breaking even at best.

That's a bit less than what we've been advised.

We know there tends to be a bit of a ceiling on the area,

but we were advised about 300.

So we'd be hoping for 300 if we did sell.

Initially, the plan is to let the properties.

How much rental income could each house achieve?

I think the rental values are around £1,100 per calendar month.

I think if we put these on the rental market,

we'd probably look to achieve around £1,300 a month.

We've rented one of them at £1,350.

That's on a first viewing.

So hopefully, the other one will get something similar.

If both houses are let at that income,

it would produce a yield of 5.5%.

But what about the future?

Could they be tempted to move in themselves?

In the long term, I think we'd certainly

look to moving into one of the properties.

I feel like we have put some creative work into it,

so we're very pleased with what resulted.

It has helped with the neighbours saying, "Oh, it looks really nice."

They seem quite pleased

that something's happened to the old house on the corner.

This is the small market town of Belper

in the beautiful hills of Derbyshire.

I'm hoping to find, if not a beautiful property,

then at least an attractive investment.

Well, the property I'm here to see is in this nice little cul-de-sac.

But straightaway, I'm seeing one improvement

you could make to the property.

Um...it's by creating off-street parking

like other houses in the cul-de-sac have done.

Because this is the house behind here.

It's a two-bedroom semi-detached

at a guide price of £56,000.

Let's take a look.

Off-street parking does add value,

so, with your developer's head on, it's an option to consider.

Of course, if you were going to live here, you might make

the more environmentally-friendly choice

and keep a nice garden to look out on.

But if you are thinking of installing off-street parking,

there are regulations about which materials you can use

and you need to get permission for it from the council.

The house was built in the 1950s

and while it may not appear beautiful from the outside, it has potential.

Nice double-glazed door. That's always a good start.

Um...however, that's not good.

You've got stairs up to the bedrooms there

and then this little corridor with this wall.

Now, to my mind, it would be so much better

if that was open plan in some way.

Just a normal staircase with spindles and a rail.

You know what I mean? Oh!

Anyway, you have got understair storage, which is one advantage,

but you wouldn't lose that if you had a nice open-plan staircase

and it would dramatically affect the feeling

as you walked through the door into the property.

But carrying on, you've got your front sitting room there

and then basically through into the rear room, which is your kitchen.

Obviously, you've got an open boiler kind of thing going on there

which is very interesting, so you're going to have to factor in

some kind of central heating for sure.

And then again, it's just not working quite right.

Because out the back there, you've got a couple of little storage areas.

I think they're coal sheds kind of thing.

But why not think about extending this into those

to create a really big open-plan

kitchen sort of family area

with double doors on there out into the garden?

Now you're talking!

# Talk about it, talk about it

# Talk about it, talk about it. #

As this house has quite a small footprint,

it's important to maximise every bit of it.

And, well, at present, that's not the case.

With pantries, corridors,

cupboards all eating into what could be a decent-sized kitchen.

There's not much wrong with the proportions of the front lounge,

but the decor and fireplace need to be brought up to date.

Well, upstairs, a slightly better layout.

But still some improvements to be made here, too.

Because you've got basically a loo at that end

and the bathroom at the front there and then two bedrooms.

So, um...it's odd, as you can see.

Two good-sized double bedrooms, though, which is interesting.

And I'm just wondering what you could do out there

to maybe make a good-sized bathroom,

but also possibly create if not another bedroom,

maybe a little study or a computer room.

Turning this into a three-bedroom house

would not only make the house work better,

but would increase its value.

And it's not only the inside

that perhaps isn't maximising its potential.

At the back of the property, you've got a decent-sized garden.

It's overgrown, but there's space for a greenhouse, which you've got,

and space for some kind of a shed, which you haven't got yet,

but that wouldn't be too much trouble to put that in.

But while I'm out here, if you notice in the road behind the property,

there's some new builds being put up.

That is always a good sign.

If you see new-build activity in an area,

you know it's on the up

or a popular place to buy a property.

# I see opportunities

# Brand-new possibilities

# Looking out for something new

# All my dreams are coming true. #

So with ways to build more value into the house

and with the area potentially on the up,

this two-bed semi really appears to have a lot going for it.

To find out more, we asked along the auctioneer who sold it.

Belper is quite a popular location

in terms of a commute to Derby and other centres.

It's quite popular with first-time buyers.

So this really has got good prospects. It's as simple as that.

There's a good mix of housing and it would have good demand.

Well, there may be a ready market for the house,

but with what was a £56,000 guide price,

is it a wise investment on the resale and rental markets?

If you were to retain it as it is with two bedrooms and renovate it,

maybe enlarge the kitchen areas,

I think you'd put this value up to probably

somewhere in the region of about £105,000.

If you made three bedrooms out of it,

I think you'd push it beyond that by another 10 or 15,000.

So you're looking at £115-120,000.

As a two-bedroomed house, the rental value here once renovated,

I would say would be in the order of £425 a calendar month.

If it was three bedrooms,

that would increase to about £475 a calendar month.

So encouraging figures

whether it's rented out or sold on.

Certainly making this a tempting investment opportunity.

Well, it's a good solid house in a very popular area.

Yes, there are some internal modifications you might want to do,

but nothing too daunting.

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

Lot 16. 60,000 for it?

60. 60 I've got on the telephone.

Thank you. At 60,000 opening bid.

At 60,000. 61.

62. 63, 64, 65, 66, 67.

68. 68. 69.

70 on the telephone.

71? 71. 72? 72.

73.

At 73,000, 74.

There was a lot of interest in this lot.

We rejoin the auction when the bidding reaches 79,000.

79? 79.

500, seated bid.

79. 80? 80,000.

80,500.

81.

81,500? 81,500.

82 for you, sir?

£81,500, then.

Once. Twice. Third time.

Sold second row, 81,500. Thank you.

Sold for over £25,000 above the guide price at £81,500.

The successful bidder was Roland.

He lives in Derbyshire and is a builder by trade,

but hasn't worked for a number of years following health problems.

I met him at the two-bed Belper semi to hear more.

Roland, good to meet you. Tell me why you wanted to buy this place.

Um...I was looking for somewhere

after a stroke about two years ago

to do up and this fitted the criteria.

You had a stroke two years ago?

It was one of those things.

What were you doing work-wise prior to your stroke?

Mainly extensions, refurbs.

-You were a builder?

-A builder, yes.

-Oh, right.

So, is this the first big physical project you've done

-since you had your stroke?

-It is, yes.

It has been a tough time for Roland.

He now feels that he's about 80% back to his former self.

He hopes this property will not only help him on his road to recovery,

but also benefit both him and his family.

So, why this house?

My daughter is renting at the moment with her boyfriend

and I got the tug on the shirt strings saying,

it's a nice area, can we rent your house

with a view to possibly buying it?

-Are you going to charge her rent?

-Yes.

-Market rent?

-Er...just below.

-Just below the market rent.

-Yeah.

Time pressure must be on you.

I guess she wants to be in here soon, does she?

Er...yeah. I mean, I've got a kitchen to fit next week.

After that, it'll be like, er...three, four months.

Roland's married and has two daughters.

This house will be for his eldest daughter Katie

who just graduated as a teacher and is now working in the area.

So this really does seem like the ideal location,

although at present, it's far from being the perfect property.

Tell me what you're going to do.

Off-street parking is a necessity.

A lot of the houses in the cul-de-sac

that have been modernised,

the back door is blocked up, bricked up.

And there's French doors going to outside instead of the window.

And take out all the old pantries and sheds

and the coalhouses as such

and rewire, replumb the central heating

and move the bathroom, toilet,

which is split now, plumb them together

and make a third bedroom come office.

So, what's the budget?

I'm looking at 15, but if I pull it in for less, the better.

But being a family member, it might be increased to 20.

And what work are you going to do?

Well, hopefully about 95%.

Roland's health problems have been the catalyst

for him investing in property.

Mainly because he's found it hard to find employment while recovering from the stroke.

But he's found a positive here

as circumstances actually made him realise an ambition.

What I've always wanted to do was be self-employed.

I suppose it was a kick up the backside to do it.

So hopefully...

Well, not exactly the ideal circumstances.

It's not, but it's a case of que sera. What will be.

-Congratulations. Good luck with it.

-Thank you.

-I look forward to seeing how you get on.

-Thank you very much.

So the first project for Roland since he's had his stroke,

but he certainly seems well set up to get this one sorted out.

My only concern is

will he do it quick enough for his daughter's liking?

You can find out later in the show.

Well, time waits for no man and the weeks and months have passed.

Have the properties been subject to a real DIY effort?

Or have they remained exactly the same? It's the moment of truth.

Let's find out.

We now head back to South Wales

and the village of Rassau on the outskirts of Ebbw Vale.

Here we saw this three-bed house

which had an auction guide price of £59,000.

It was bought by Shannon, who'd gone along on an impulse

and with her first and only bid got it for 60,000.

She runs her own business helping non-profit organisations,

but has plans to make this property generate some profit for herself

and help her make a step in a new direction.

So, do you think there's a chance

that you may go full on into property?

It's certainly something I'm interested in and my eldest son

is certainly encouraging me that way because he's got an interest.

But he's still in university at the moment,

so it's encouraging me to spend my money rather than his.

Well, Shannon couldn't have found a better first property than this

to cut her renovating teeth on.

It only needed a spruce up with maybe a new bathroom

and possibly an extension.

She reckoned a £7,000 budget

and a 12-week turnaround should do the trick.

We're back and not after 12 weeks as Shannon had hoped.

It's been 19 months since we were here.

The hills of South Wales have had their own winter makeover

with a fresh fall of snow.

So down in the valleys,

has Shannon's makeover gone according to plan?

The house still looks the same, but there's a new driveway

for some handy off-road parking, which is a real value-adder here.

The living room has been refurbished

and Shannon already seems to be getting some money back

as the place is already let.

At the rear, the kitchen has been freshened up

with smart new units, new flooring

and French windows opening out to that lovely big garden.

It all looks, well, fantastic!

So, has it all gone swimmingly?

A lot of work went into the kitchen.

When we bought the property,

there was a lean-to where the back door is.

We demolished that and put in a new back door.

Refitted the kitchen, which was quite dated.

Replaced the kitchen window with patio doors.

Both to bring in light and to give access to the outside garden.

The carpenter replaced what was an ugly area, really.

There was a meter with all wires and the boiler.

So we used the kitchen units to block those in

and make it all look the same.

So we were really pleased with the way it turned out.

I like the kitchen. This is one of my favourite rooms.

I think it's come out exactly as I hoped it would.

I think it's a light and airy finish

and it makes it a really pleasant area to be in.

Upstairs, all the rooms have been replastered and rewired.

The two main bedrooms have already been put to good use

with the smallest bedroom currently serving as an office.

But the real treat here is the totally-refurbished

and beautifully finished-off bathroom.

All round, it's a great-looking transformation.

But it all seems as if a lot more was done than originally planned.

The condition of the house

was probably not as good as we thought it was.

There was damp in the back where the kitchen and the dining area is.

When we stripped the walls,

the render fell off and we had to replaster.

And when you start to replaster,

it's about replacing the doorframes and the skirtings.

So there was a lot more work than we anticipated.

In fact, the whole house has been replastered and rewired.

Definitely an unplanned expense.

It just goes to show that a property that appears problem free

can turn up all sorts of unexpected horrors.

Unfortunately for Shannon, the extra cost didn't stop there.

The development of the off-parking area was an absolute disaster.

It happened at a time when the weather just changed.

We had torrential rain.

The contractors worked through some awful weather to dig it out.

And they built the retaining wall,

left it a couple of weeks to go off so that they could backfill it.

Unfortunately, because the weather was so wet,

it hadn't completely gone off and when they backfilled it,

it collapsed and all of the cement was running down the road.

Sadly, it also meant that Shannon had a runaway budget.

The total budget was probably about £25,000,

which is considerably more than we estimated originally.

But when we made the decision to do it to that level,

we realised that would probably be the case.

That spend meant there was no money to replace the bubble wrap lean-to.

But that road out back is currently being downgraded,

so the garden will be quieter to sit in.

And when a carpenter working on the renovation

wanted to be Shannon's first tenant,

it was a vote of confidence in her purchase.

So, has she now the confidence to become a full-time developer?

Given my lack of construction skills,

I don't see it as a full-time career,

but it's certainly something I would like to do alongside my own work.

Add Shannon's spend of 25,000

to her purchase price of 60,000

and her total outlay is £85,000.

Time to find out from two local estate agents

if all her troubles have been worth the effort.

The property is really well renovated.

The renovation is a high-quality renovation.

I'm really impressed with the improvements carried out.

I think the owners haven't cut any corners.

I think the kitchen is finished well.

It's modern, it's contemporary,

it's what people are looking for.

What Shannon needs is a solid return on her investment.

So, with tenants already in,

is she getting the best rental income possible?

I would expect this property to rent out

for approximately £450 per calendar month.

If I had to rent this property at the moment,

I would ask for £575 per calendar month.

They're quite a bit higher than I expected

and higher than I'm currently getting.

One is significantly higher. So it's all good.

It may need to be looked at again.

These rental valuations would give a yield

of between six and eight percent.

And the estimates from the estate agents suggest

the house could sell for 100-105,000.

That would give Shannon a profit of £15-20,000

minus tax and expenses.

I think it's probably what I expected.

I mean, we were looking at 110 when we started,

but obviously, it's gone down since then.

So it's probably what I expected.

For now, she's going to stick with the rentals

until the resale market picks up

and then she'll cash in on her property.

So while Shannon may have felt

she was swimming against the tide with this renovation,

she isn't ready to throw in the towel.

I would like to do this again.

I think I'm crazy to do that, but I would like to do it again.

I've learned a lot of lessons doing it the first time

and it would be a waste not to put that experience into practise

and perhaps do the next one better, more cheaply

and get a better end result out of it.

In the Derbyshire market town of Belper,

a two-bed semi-detached house went up for auction.

This solidly-built property was a little tired and dated,

but had scope for off-street parking, a bigger kitchen,

making a third bedroom upstairs

and sorting out the eccentric toilet layout.

So this was a house where you could add value.

For local builder Roland, it also offered an opportunity

to continue his recovery from a serious health problem.

I was looking for somewhere after a stroke about two years ago

to do up and this fitted the criteria.

-You had a stroke two years ago?

-It was one of those things.

So, is this the first big physical project you've done since?

It is, yes.

Having paid £81,500 at auction for the house,

Roland was planning to do it up

ready for eldest daughter Katie to rent.

Armed with a £15-20,000 budget

and a three-to-four month timescale,

he took on the challenge not only to get the best from the house,

but to see how much he could do himself.

Now, five-and-a-half months later, we're back.

From the outside, wow!

It looks like Roland's been busy.

With new off-road parking for at least two cars.

The front area is now landscaped and fenced

and there's a new porch, guttering and facia.

While inside...

The lounge has been brought bang up to date with laminate flooring,

new decor and to go along with the central heating,

there's a modern coal-effect electric fire.

But what about that kitchen area with its pantry, coal shed and old units?

Well, they're now a thing of the past.

We've, er...taken the pantry out from that side

and also this side, there was a corridor

down to an external door that we've blocked up.

So in fact, the kitchen really stopped here.

So we've taken out the breast in the other corner,

so it gives us a nice big family dining kitchen.

And if that wasn't enough, there are now French doors

that lead out onto what will be a patio area

with steps up to the garden.

All of this is still work in progress,

but while there might be some jobs outside to finish off,

what about inside?

Well, upstairs, those two double bedrooms have been fully refurbished

and it looks like Roland has managed to get that third bedroom.

Right, we've, er...

changed the bathroom from in here

into the back and made a bedroom

with the local authority's say-so.

Escape windows and everything like that to incorporate this room.

It means, er...instead of a two-bedroom house,

it's a three-bedroom house.

By combining the toilet space and landing cupboard,

Roland's created enough space to put in a new fully-fitted bathroom suite.

That frees up the old bathroom area to become that third bedroom.

Boy, I always thought this house had potential,

but Roland's certainly managed to squeeze out every last drop of it.

How has he coped with the physical challenge

of such a demanding project?

I think because of the stroke, we sort of...

it's been getting tiring towards the end.

Er...if I...when I do another one,

I will take longer and have more rest time.

So he certainly worked hard

and he thinks it'll be another couple of weeks to finish it off.

Then his elder daughter can move in with her boyfriend

and start paying rent.

But how much input did she have to the changes Roland's made here?

85% is my own doing, er...

a little bit of input from her.

Nudge, wink and things like that.

# My girl, my girl... #

So his girl may have done a little bit of arm twisting here and there,

but the end result is certainly impressive.

However, an extra bedroom, new bathroom, kitchen,

off-road parking, central heating

and a comprehensive refurbishment don't come cheap.

Originally, I said 15-20.

Er...think I've spent about 25

or just over with legal fees.

Well, a spend of £25,000 on top of an £81,500 purchase price

takes Roland's outlay to a total of £106,500 without costs and fees.

So, has his return to the building trade paid dividends?

What do two local property experts think of his efforts here?

I go in loads and loads of houses and I see them as they were

and I see them when they've been renovated and improved.

I think this is one of those houses

where I've seen the biggest transformation

that I've seen for a long, long time.

It's totally changed, hasn't it?

The renovation programme has been done superb.

Very, very tasteful.

Typically neutral colours.

And the whole thing has got an air of quality about it.

The estate agents reckon it could sell for £125,000,

which would give Roland a possible pre-tax profit of £18,500.

But initially, this will be let to his daughter.

You'd probably get a rental value of £525-550 a calendar month.

I would value this property at around £550 a month.

I was expecting 550,

but my daughter will pay, like, 525.

Even a rental return of £525 per calendar month

would see an annual yield of above five percent, which isn't bad.

But although getting a return on his investment is important for Roland,

this refurbishment was about so much more.

So, does he feel that it's aided him in his recovery from his stroke?

Without a doubt. If you don't push yourself,

if you sit in that chair and watch that television,

apart from Homes Under the Hammer, then you won't get better.

You've got to push yourself

and get your full faculties back.

We'll have three more properties to show you next time on Homes Under the Hammer.

So join me and Lucy then to see what happens when the hammer falls.

-Goodbye.

-Goodbye.

Subtitles by Red Bee Media Ltd