Episode 1 Homes Under the Hammer

Hello and welcome to the show. Now, we're both fascinated by property -

its location, its value for money,

oh, and its potential to make money.

Absolutely. Get it right and you could reap financial rewards.

Get it wrong, whoa, that could be a costly mistake.

Well, a good place to try

and find a good bargain is to head to the auctions.

Burnley in Lancashire, home of the Clarets and Sir Ian McKellen

and, recently, given the title of Britain's Most Enterprising Town.

Well, the property I'm here to see is just under a mile

from Burnley town centre.

Now, with that kind of close proximity

you would have thought the price, well, it's going to be pretty high.

Oh, boy, would you be wrong.

Two-bedroomed mid-terrace, guide price, what?

£15,000 plus.

Yeah, you heard me right. £15,000 plus.

So, for that amount of money, not expecting a lot.

What have we actually got, though? Oh!

HE LAUGHS

That's very low.

Hopefully not a supporting wall or,

if it is, then a proper RSJ beam has gone in across there.

But this is the front sitting room and it's not a bad size.

A few signs of damp on that front wall.

That could be just the house not being lived in, perhaps,

or something a bit more serious. But through to the rear of the property.

Stairs up to your bedrooms there.

And then a nice surprise, the rear sitting room a good, good size.

With a sort of breakfast bar area and the kitchen integrated.

HE CLEARS HIS THROAT

However, as you can see...

..not good. Obviously, some major problems going on here.

Lots and lots and lots of damp

and so much that the ceiling here has collapsed.

That is not good and I want to know what's causing it.

# Everybody's got a hole that they need filled

# Come on!

# Fill it up, Geoffrey! #

Despite the unwanted hole in the ceiling, this house does

still have some nice original features,

even after the alterations.

This shower room may require updating, but it's not a bad size

and there should be room to squeeze a bath in if, well,

the mood takes you.

And one bedroom is bright and a good size

but there's some more damp here.

At the back, bedroom two has some pretty serious damp issues

and it's directly above the kitchen.

So, maybe the cause of those problems in the kitchen

will be revealed when we come to the rear of our property

which is accessed via this little alleyway here.

That's our property there and, yeah, sure,

the roof of the kitchen doesn't look in too brilliant a condition.

Next door is this.

I can't say for certain that this house has anything to do

with the damp in the lot I'm viewing, but further investigation

is a must and it might involve tracking down the owner.

That issue aside, it would be worth getting the opinion of

a local agent on this rather damp terrace guided at £15,000.

The attraction to a buyer in this area would be that you're going

to get over a 10% return on your investment per annum.

You would need to spend some money on the damp.

Once it's done right, you'll get a tenant in and you'll make a good return on it.

A no-lose investment. That sounds like a no-brainer.

So what kind of figures are we talking about?

Once the work's been completed to the damp, to the windows

and to the kitchen ceiling, I would estimate that you could be

looking to achieve somewhere between £30,000 and £35,000.

Well, with a guide price of £15,000,

that leaves some room to make a profit,

but what about the rental values?

I would estimate that the tenant would probably pay somewhere around £350 per calendar month for it.

Well, he can't get away from the fact that it's a very appealing guide price.

However, closer investigation reveals...hmm...

maybe not a bargain. Who knows?

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

On to Lot 258, it's Burnley, freehold, mid-terrace house.

Start me at ten.

10,000. Back right.

11. 10 I am, make it 11.

11 on my left. 12.

It took a little time for the bidding to get going,

but then things picked up.

We rejoined the bidding at £23,000.

23, sir. 24?

No, OK.

23. With you, second row. 24, anywhere else?

First row, 23.

Second time at 23. 24. 25.

OK, your bid. 24,000. 25, anywhere else?

First row, 24.

Second time with 24, for the third and final time, £24,000. Your bid.

Are we all done...at 24,000!

The successful bid of 24,000 was made by Dean.

It was his second property purchase at auction

and I met him and his business partner, Paul, back at the house.

-Dean, Paul, great to meet you both.

-And you.

-Pleased to meet you.

Congratulations!

The auction was actually in London, wasn't it? Is that where you're from?

Yeah, yeah. I'm from east London.

Yeah, both from east London.

So what attracted you towards Burnley?

Mainly the profit margin.

In London, you're not getting nowhere near what you're getting up in the north.

So is this what both of you do, sort of, full-time?

-No. We both work for a major advertising company...

-Right.

-..in London.

I'm a manager, a training asset manager

-and Dean's a multimedia technician.

-Great.

-What does that mean you actually do?

-Stick posters on the wall!

THEY LAUGH

Fantastic!

-Whereabouts do you stick the posters?

-On the Underground.

-Really?

All the ones you see when you're on the Underground,

when you're standing on the platform, the ones you see, across the track.

Wow.

-So, why this particular house, then?

-It's cheap!

THEY LAUGH

We didn't even look at it, to tell you the truth.

-You didn't look at it?

-No, no. I know, we made the cardinal sin.

'Too true, it is a cardinal sin on Hammer.

'Dean and Paul saw this for the first time TODAY - not good.'

So what did you think when you walked in?

All right. A bit of damp...

You're saying all right and you're sighing very heavily!

No, it's not as bad as what we thought, erm...

Yeah, the end of the day, it's not that we have to do a lot of clearing,

it's just a lot of it is cosmetic, erm...

as you will see.

Walls are not too bad.

Some of the walls are not too bad, should I say,

-but, yeah, it shouldn't take too much. It's nothing that we can't do. There's nothing shocking.

-Right.

-It's just that at the back, next door, that worries me, that being derelict.

-Yeah, yeah.

We're making some enquiries and see if we can

maybe purchase that one as well...

-Right.

-..before we do anything here.

-So if you could buy it, that would be ideal, wouldn't it?

-Yeah.

-Yeah.

Dean is a trained painter and decorator.

and they will both pitch in with the work,

but at the same time, there's a lot going on here,

so do they have a plan for this place?

Erm, just a full renovation, really.

Erm...

strip back all the walls,

all the flooring and just a general upgrade.

-You've got the...

-Rip that kitchen out as well. That's got to come straight out.

Everything will come down.

The fireplaces, I'm not too sure whether to keep them and just change the fires,

cos we're just renting, we're not doing it to sell.

so, at this stage,

it'll just be a general makeover.

'Dean and Paul will get professionals in to do the jobs that they can't,

'like gas and electrics

'and they have a budget set at between five and £15,000,

'depending on what happens with the property next door.

'But my worry is that the budget could soon become a distant memory,

'especially when you remember they don't live nearby.

'London is a bit of a commute to Burnley.'

-Well, listen, congratulations.

-Thank you very much.

-Good luck with it.

-Cheers.

-Cheers, thank you.

-Looking forward to seeing how you get on.

-Yes.

Well, yes, it's not a lot of money to pay for a house,

but Dean and Paul,

recognising they might have got themselves more of a problem than they'd bargained for

and it all comes down to that house next door.

Can they find out who owns it?

Can they buy it?

If not, will they be able to restore this property?

You can find out later in the show.

The Kent town of Paddock Wood was once at the centre of hop farming.

Up to 8,000 seasonal workers would arrive in the town

to help harvest the crop.

Today's lot is within walking distance of the town,

less than half a mile from the station.

So, this is it.

A two-bedroom detached bungalow

and it sits on a substantial corner plot like this.

But, first issue I can see straight away,

well it appears to be non-standard construction.

Now, the exterior is made from weatherboard cladding

and getting a mortgage on a non-standard house?

Well, it can sometimes be difficult.

Any unconventional style of house or flat can raise

issues about mortgageability, but if you look hard enough,

you will very probably find a lender.

If you were unlucky enough not to get a mortgage,

then it would mean cold, hard cash.

The guide price on this property is 195 to 205,000,

and it is on a decent plot. There is off-street parking and a garage.

So far, so good.

I love the symmetry with this property.

It feels like a little house on the prairie, all wood,

nothing very solid or substantial.

Now, the layout, internally.

You've got a single bedroom to the left here.

A nice toothpaste, mint green bathroom. Lovely.

At the back of the house, a small kitchen and a big lounge

and another bedroom. But there's some damage up there.

I think there must have been a leak from a bath. Uh-oh!

# Uh, oh, we're in trouble

# Something's come along and it's burst our bubble... #

And it was all going, er, reasonably well.

That ceiling investigation is first on the to-do list.

I'm thinking the next thing would be sorting out

insulation in the walls and the floors to meet modern regulations.

So the bungalow, as it stands, is quite small, but it sits on a

really nice large plot, so there is definitely potential to extend here.

Alternatively, there is the option of demolishing what is here

and building something new.

However, this property has a rather chequered planning past.

Ready for this?

In 2011, and again in early 2012,

permission was sought to

knock this down and replace it with a pair of semidetached houses.

Both times the planners refused permission.

Then an application was made to substantially extend

the existing dwelling, and again

THAT was refused permission.

And as if that was not enough, there's

also a restrictive covenant in place,

so you can't build anything above 0.9 of a metre forward of the

existing building, so this will definitely be a tricky development.

What would a local estate agent advise?

I think it needs substantial redevelopment.

So much so, it is... I would see it as a plot rather than a property

to develop.

And what does the agent think the bungalow could be worth,

renovated as is or as a new build?

If it were renovated in its current configuration,

you should get in the region of £240,000.

If you were to flatten it and build a new property of maybe three

bedrooms, you should get in the region of £350,000.

And what about rental?

Rental, on a two-bedroom bungalow,

would probably rent for about £900 per calendar month.

A new build, three or four bedroom house, could be

in the region of £1,500 per calendar month.

There are a lot of potential pitfalls with this one.

Let's find out who bid for it at the auction.

A detached bungalow on a good-sized corner plot,

close to the centre of Paddock Wood and the railway station, with

good access up to London, so 190 I'm looking for to start me. 190.

I'm obliged, £190,000, I'm on the way. 190. Now two.

192. 192. And four.

194. And six.

And eight. And 200. And two. 202.

It's with you, sir, at 200. 202 I want.

It's worth more than this. £200,000 I've got.

For the first time, then, at £200,000, sitting there on my

right-hand side. You're coming back one more time, it's your chance?

For the second time at £200,000...

If not, for the third and final time,

sitting over on my right-hand side, at £200,000,

done.

Sold, it is yours, sir, for £200,000.

And that delighted buyer paying £200,000 was David,

who was at the auction with his wife Marie and their daughter.

David, a chartered surveyor, and his wife Marie,

a retired headmistress, currently live locally in Paddock Wood,

and they bought the bungalow as a new home for them and their kids

Niamh and Doug.

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

Congratulations. I want to know why you wanted to buy this at auction.

We had originally thought we might retire to the West Country,

but all of our friends and our family are round here.

And we thought that in our twilight years we wanted to be close to them.

It makes sense.

We're probably going to knock it down and start again.

Dun, dun, dun!

I was waiting for those three words, "Knock it down."

-You're going to knock it down?

-Yes.

-You're going to knock it down.

The couple are looking to downsize from their current property,

and ideally build a new home that will tick all the boxes that

Marie, a keen artist, has drawn up.

I want lots of light, a really big kitchen.

Look at Marie's face light up here. Go for it.

And also, because of the way the building will be configured,

I'll be able to have a room that

I can do my artwork in, as well. Separate to the house.

Do you feel, with the property as it is, you just couldn't achieve that?

I would rather build something that was striking, innovative,

-great design...

-21st-century.

-21st-century.

I mean, to convert this, it's just an uphill task.

I hear what David is saying,

but sometimes planning can be an uphill task too, and this

property does have a chequered past as far as that's concerned.

Undaunted, David has his ideas already on paper.

Can I show you firstly, that is

what we don't need planning permission for.

-Wow, so you've got a complete separate structure along the side.

-Yeah.

Is that the art room? Hold on a minute, Marie, I mean, that is

-almost as big as the house itself.

-I know, I know. I need space.

Well, also, it will be my office as well. Because I work from home.

-So it will be the art room, the office, you know...

-And a bar.

-And a bar, of course.

-MARIE LAUGHS

So I can see that's just with an extension used within

-permitted development.

-That is the worst case scenario.

Marie said it looks like a factory, and I think it probably does a bit.

OK. So, well, that's plan B.

What does plan A look like?

It's quite contemporary, it's striking and much bigger windows.

Lots of space. But again, it makes your second area,

you know, your office/art room/bar. Tell me,

-what sort of budget have you got for this?

-I would say about 150,000.

Yes, if it ends up at 200... so what?

And how long is it going to take you to complete the build, what would you say?

Three or four months to get planning permission, six to nine months to build it.

If it takes three years, it doesn't really matter.

The important thing is we do it right.

Congratulations, I'm really excited for you.

And I think this is the right thing for you to do at this time in your lives.

-Thank you.

-Thanks ever so much. Nice to meet you.

Ideally, David and Marie want to knock this old bungalow down

and build a new home.

They've never built their own home before, and the property, well,

it already has a bit of history in terms of planning refusals.

Will David and Marie and the kids be able to build what they want here?

Or will they have to compromise their plans?

You can find out how it goes for them later in the programme.

Welcome back to Burnley, in the north-west of England,

where we were looking at this two-bed mid-terraced house.

Situated just a mile from the town centre,

it had a very low guide price of just £15,000 plus.

Not even dated decor could explain that,

so I wonder what could explain it.

Lots and lots and lots of damp,

and so much that the ceiling here has collapsed.

Ah, that will be the reason, then.

Six months later and we return to Burnley to see

if our London lads had a good effect on this damp dwelling.

It's all looking fresh,

clean and there's definitely a decor statement or two.

More importantly, it all looks dry.

Not a whiff of damp.

So how have they resolved those horrendous damp issues?

We've had the roof stripped back completely and re-laid.

All the rendering on the property to make it watertight.

Everything stripped back, really, to the brickwork.

A new bathroom, new kitchen.

Complete top to bottom, really.

Well done, lads.

It can sometimes mean extra cost, and it definitely means extra work,

but I think stripping it back was exactly what this place needed.

But I'm only seeing one property renovation project here.

What happened to the plan of trying to buy next door?

Yeah, we were thinking of buying next-door's property

because it would enhance the value of this property, having that

property done up as well.

But we couldn't get hold of the landlord at all.

Of course, part of the reason Paul and Dean hadn't seen

either property was because they actually lived in London.

How was it developing a property 250 miles away from home?

The biggest problem I suppose we had was the travelling,

because Dean doesn't drive, so it was always on me.

So we'd drive home from here, five or six-hour drive,

and then straight to work that night. So we thought it would take

between three and four months.

-I think it has taken just under six...

-Just under six.

That sounds like some gruelling shifts Paul and Dean have put in,

but it's always worth remembering that's what has to be done

if you are going to combine development with a full-time job.

Will all that hard work have helped them

keep to their maximum budget of 15,000?

We've come in within budget.

-I think we've...

-About 10,500.

-Yes, about 10,500.

Give or take 1,000 here.

And we've got the outside to do,

so we haven't actually done the final figure, but it is around that.

It won't go over 11.

£11,000 on top of their purchase price of 24,000

brings Paul and Dean's total spend to £35,000.

We've asked along two local property experts to see if these figures

add up to some profit for Paul and Dean's blind buying experiment.

This is the first time I've seen the property.

It's been done to a great finish, perfect for first-time buyers

and very soon could make an ideal family home.

The layout works really well.

In particular, I like the kitchen/diner downstairs,

I think it's a lovely room for a family environment.

So, yes, absolutely worked really well.

If Dean and Paul were to put this on the market,

could they expect any profit on their £35,000 spend?

In my opinion,

I would expect this property to sell for offers over £45,000.

If the property was to be placed on the market by the owner,

in the current environment, I think a sale price could be

achieved from anything from £40,000 upwards to £44,000.

This would give Paul and Dean a profit of between five

and £10,000, minus the usual taxes and expenses.

But they're looking to rent the property.

What could they hope for then?

The rental market is really strong at the moment. I would expect

this property to achieve in the region of £350 per calendar month.

If the property went on the rental market currently, it should achieve

anything from £365 per calendar month

to £375 per calendar month.

It is good, really.

Yeah. It is what we thought, it is what we budgeted for.

I've got a tenant moving in when you leave and we're going to...

-It is more than that.

-385.

-It is more than that.

So it's £10 more than what...

With a tenant already in place, paying £385 per calendar month,

Paul and Dean can look forward to a yield of over 13%,

a good result.

So how have they found the whole experience?

-Tiring.

-Yeah, it's been tiring.

-It's been a bit knackering but...

-It's well worth...

-Well worthwhile.

Two and a half miles east of Derby city centre lies the large

suburb of Chaddesden.

Once a village in its own right, it is

now a highly popular residential suburb of Derby with good

local amenities and transport links into the city centre,

so it's a good bet for buying a property at the auction.

So, what am I here to see?

Well, it's a really well-located property in this popular

residential area.

Three-bedroomed semidetached, had a guide price

of £70,000 plus.

Looks like it's seen better days, but let's take a look inside.

Interestingly enough, the entrance...

front door, it's actually on the side!

MUSIC: Side Effects by Mariah Carey

Now, that whole entrance door on the side thing does give

a slightly unusual layout when you come through the door.

Facing you, little hallway. Stairs up to the bedrooms.

And on the right-hand side here, you've got this little front sitting room.

Love this. Fantastic.

Um, yeah.

A bit old-fashioned, but I bet that really pumps out the heat.

You would probably want to replace it, though, wouldn't you? It's a nice room, though.

Through this way, though, across that little hallway,

into your rear living room.

Again, a really nice-sized space.

That's a bit strange, it's sort of a half cellar.

Doesn't go down very far, but there's a few steps into something.

I don't know what you'd use that for.

And I imagine this is where the house originally ended.

What you've got now is this, a single-storey extension.

I say single-storey, it's got a sloping roof, which is really nice.

Stick a couple of roof lights in there,

throw a bit more light in here.

As a kitchen, it's good, I like the location,

views out onto the back garden.

You've also got a loo there, which is really great.

So all the sort of sewerage stuff and pipework is all there for you.

A bit of a storage cupboard.

Straight away a house with lots of potential.

Up the staircase that faces the entrance of the aforementioned

three bedrooms.

A double at the front, a smaller room to the side.

And a third to the rear.

And, phew, an upstairs bathroom,

but with no WC.

Someone will have to spend a penny or two in here to remedy that.

But the rear of the property, ha-ha, a fantastic surprise.

Cos down these steps and you are into...

HE CHUCKLES

..a bit of a garden wonderland.

Look at this! Fantastic. Let's explore.

I don't know how far it is to the back, but we've got some lovely shrubs here.

I mean, it's a case of chopping some of this back

so you can see what you've got. But you've got apple trees.

Um. I don't know what else.

A bit of a wildlife ha-a-aven, too, at the moment.

This is good! But, er,

yes, definitely a good few hours with a strimmer,

but actually joy of joys, uh, lies at the back.

HE GROANS

Oh!

Every gardener's dream.

A garden shed.

Dig further and in the undergrowth there's a garage too,

all for the guide price of £70,000.

The garden alone has got me smitten, but big, deep breath

and sensible head on, there is a lot of work to be done.

We asked the auctioneer who sold it what he thought of the property

and its prospects.

The unusual thing about this house is it seems to be sort of narrow,

one room wide, but quite deep.

And yet you've still got three bedrooms and a bathroom upstairs.

I think the first thing you'd address with a house like this is

the kitchen arrangement. Once renovated,

this would have a value on today's market of about £105,000.

In terms of rental,

the rental value would be in the order of £525 a calendar month.

Well, what is there not to like about this house?

It's solidly built, it's in a good location, great garden.

Yeah, an easy one to go for.

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

A three-bedroom, semidetached house,

behind Chaddesden shopping area.

There is a proxy bid in on this, and I will start

the bidding at £75,000.

76 I've got. 77 with me.

77. 78 for you, sir. 78.

79. 79. 80.

80,000. 81.

82. I'll take 500 if it will help you.

81,500.

81,500, that's stymied me.

82,000, I'm in. 82,000.

82,500, I'm out. £82,500.

83 somewhere else.

At 82,500, once,

twice, third time...

sold at 82,500. Thank you.

Beating the auctioneer's proxy bid with an £82,500 bid of his own

was Dave.

Dave and his wife Elaine bought the house

and its amazing garden for their two daughters, Jade and Abby.

Dave works as a domestic energy assessor,

and Elaine works in HR for a local car manufacturing company.

And they live just a mile down the road.

-Elaine, Dave, great to meet you both.

-Pleased to meet you.

Congratulations. So, why did you want to buy this place?

We thought it was a good potential for the children.

And we thought it would be nice to sort of set them

-on the property ladder.

-Great!

They've both been to university, they are both just graduating.

You know, we'll renovate it for them.

And then they take over,

but obviously Jade and Abby are going to sort of say what they want.

I mean, obviously we are going to do sort of the plastering,

we know that sort of thing that needs doing, but everything else,

you know, they might decide what they want doing, the type of kitchen, etc.

There's going to be lots of children watching, going,

"I wish my parents were like that!"

THEY LAUGH

-Well, it's a start, isn't it?

-It's brilliant.

-Yes.

They've been good girls.

You know, they've done well in what they've done and graduated.

-So it is just a way of showing our appreciation, really.

-Good on you.

So what do your daughters think about all of this?

Well, they're over the moon.

The oldest one is with us at the moment,

but the youngest one is touring round Europe.

They are really excited about it and they are going to both have a

big input in, like my wife says, what goes into the property,

decor and design.

-So what about internal layout, is it going to stay the same?

-Yes.

The only difference that we are going to do is

the kitchen out the back. It has been split.

There is a toilet in there, which we're going to move upstairs,

and a store cupboard. And hopefully we can knock the walls out

and make that bigger.

-But keep the wall in between here and there?

-Yes. Maybe...

-Because this funny little window is a bit weird, isn't it?

-It is, yes.

And we think it doesn't shed a lot of light in because there's not many windows in the kitchen,

so hopefully we are going to put a couple of Veluxes in the roof

-and then make this double doors into here.

-Nice.

And then that will shed a lot more light into here

because there's only one..one large window there.

Great ideas to get more light down here and improve that kitchen.

They also plan to do a simple renovation upstairs,

whilst removing old water tanks hiding behind those

cupboards, in order to fit a WC up here.

The couple have a budget of £10,000 and hope to get the girls

settled in here in six months' time.

And it just keeps getting better for those lucky sisters.

And then actually doing the work, who is going to do the work?

I will do the majority of the work.

Are you experienced in that sort of thing?

I've done a couple of properties up, mainly for her mum.

-Mmm.

-We bought, or her mum bought, a bungalow that was

sort of virtually derelict, and we have done that up.

Yes, so we have done it once and we are going to try it again.

And are you going to get involved helping out?

Yes, yes, I am hands-on, definitely,

yes. Wherever I can use a screwdriver or hammer, I'll be there.

THEY LAUGH

Do you have any sort of things you particularly enjoy doing?

The garden is my forte.

I can't wait to get started on that garden.

Any idea what you will do to the garden?

Well, I think, basically, we are going to sort of chop

a lot of the trees down and make them more sort of...

at a reasonable height.

But I do want to keep some of the bushes and trees,

to give it a bit of character.

I am already doing all of my cuttings off my own garden at home ready.

SHE LAUGHS So we can pop them in.

And then decking out from the back door.

And then steps down to a lawn.

-Like she says. And then trees amongst the lawn and everything.

-That sounds lovely.

There is an apple tree down there somewhere.

Um... And, yes, hopefully we'll keep that in.

-But certainly it is a really exciting project.

-Listen, congratulations.

Well done for being such a good mum and dad,

and we look forward to seeing how you get on.

Yeah, great.

Well, what a great thing Dave

and Elaine are doing for their daughters,

and a great house to boot. I can't wait to see what they do with it.

But what will their daughters decide to do with it once it's completed?

You can find out later in the show.

Well, we've already seen how one property has got on,

what about the other two?

Yes, were they straightforward, or were there a few surprises?

-Mmm.

-Let's find out.

We're back in Paddock Wood, in Kent, to catch up with this

detached bungalow, guided at

195 to 205,000.

It was a non-standard construction, which can prove

tricky for those needing a mortgage.

Then there were planning problems.

Two years on, we return to...

..no sign of a fabulous new family home.

Oh!

MUSIC: Ghost Town by The Specials

Time for David and Marie to fill us in.

It took us a year to get planning permission, in effect.

The architect started off with a really innovative scheme,

which was effectively two opposing cheeses.

It sounds really wild and wacky, and we loved the scheme.

But the planners weren't quite so enamoured.

Effectively they said, "Love the scheme, but not here,

"because it doesn't fit in."

MUSIC: A Change Would Do You Good by Sheryl Crow

Hmm. Two cheeses sounds crackers, but I like it.

However, even if you're not in a conservation area,

planners might be reluctant to let you build anything that

doesn't fit in with the streetscape.

It can end up being a bit of a compromise, but in the end,

the architects came up with a plan that worked for everybody.

It was very...very modern,

very light, very open, very adaptable,

which is exactly what we asked for.

And by the time we got to that stage, the planners were happy,

because it was very eco, we were happy, the architects were happy.

Brilliant. So, when does the work start?

In this year, we've been looking to sell our current house,

which is about a mile away from here.

And unfortunately, the market didn't really like our existing

house as much as the agents had told us.

-Yes.

-And the price kept on coming down and coming down.

And then towards the end of August, early September, we just

said, "We live in a beautiful house, we can in actual fact

"create the flexible accommodation we need by having two flats upstairs."

And the kids love the idea because they've lived there all their lives.

As soon as we told our neighbours that we were not moving to the

new site, they were delighted.

-And they came round straightaway with a bottle of champagne.

-Excellent.

And when you've got neighbours like that, who've lived next door

to you for so long and are so overjoyed you're not moving,

I mean, what can you do?

You know, you have to stay, don't you?

I'll drink to that.

So David and Marie might get a dream home at their current home,

but there is an added bonus.

They now have a big plot with planning permission.

Two local estate agents can explain why that is so valuable.

It allows the developer to just go straight into it

and get on with what they need to do.

Having the planning permission certainly adds value

because it takes a lot of the hassle element out

of the approach to the local council,

makes the project more definite.

Demolition cost, 9,000,

and all the fees associated with planning cost around £26,000.

Having paid £200,000 at auction,

their total spend is £235,000.

What is the plot, with planning permission, worth as it is?

This plot of land, with the planning permission it currently has,

I think it would be worth approximately £300,000.

The value of this plot of land is valued between

£280,000-£320,000.

-I think they are pretty good, actually.

-Very good, actually. Very pleased.

-Very pleased, yes.

At an average of 300,000, Marie and David could make a pre-tax

profit of 65 grand,

and they haven't even laid one brick.

So would it be worth going ahead with building and then selling?

If the property is built to plan, I believe we can sell it on for £450,000-£500,000.

I think the finished property could reach

in the region of £500,000,

done to a nice specification.

Taking the top value of £500,000,

and based on David's £200,000 construction budget,

Marie and David could make a profit of

£65,000 before taxes and expenses.

Same potential profit as just the plot, so why bother, I say?

I think that's probably a bit on the light side.

We are not looking at it as a single house, we are

-looking at it as two houses.

-It would have been great to live here,

-but actually, we're really happy where we are going to stay.

-Yeah.

Well, they didn't get their dream retirement home here

but, by converting their existing house,

they will get two flats, and Marie will get her art studio.

And they could still make a lot of profit on this plot.

Any regrets?

We're not in any hurry.

This was always our long-term retirement plan.

I've got a few years in the office yet.

I've got to keep her in the style to which she's become accustomed.

-I'd like to become accustomed.

-You'd like to become accustomed. OK.

Time now to return to Chaddesden on the outskirts of Derby.

This three-bedroom semi had a guide price of £70,000 plus,

and once I'd worked out the front door was on, well,

on the side, I found it had some good size rooms,

an extension out the back and a garden that went on...

(ECHOING) ..for miles!

15 months later and we are back in Chaddesden to see if

Dave and Elaine have turned this into their daughters' dream home.

# It feels just like it should

# I wake up, this This is what it looks like

# So don't miss this

# This is what it looks like

# So call on me

# It feels just like it should

# So call on me... #

Good job, guys, and Dave and Elaine

haven't just made cosmetic changes.

There's new plumbing, new insulation, new electrics

and, most importantly, they have moved that WC to the

upstairs bathroom, freeing up the kitchen.

We've done a lot of work in here.

We've knocked a dividing wall down, that had the old toilet

and a store cupboard in, to make the kitchen a lot bigger.

We've put new doors in, which throws a lot more light into the kitchen

and makes it look very spacious. And, er...

Yeah, we're very pleased with it.

A bigger, brighter kitchen and a toilet upstairs - simple,

but good ideas.

But moving a toilet and knocking down a wall pales in

comparison to tackling that jungle of a back garden.

We got a mini digger in

and we spent a complete week

with a mini digger on the garden.

It's really nice now, you know,

to open the patio doors straight onto...the decking.

What we intend to do now, which we haven't done yet,

is to completely fence the garden,

which will make it really quite nice.

However, although all this might have gone to plan,

it would appear daughters Jade and Abbey

will not be moving in after all.

We're not sure whether they're going to move in or not.

They're still thinking about it, but if they don't move in,

we are going to move in.

Renovate our property and go from there,

so it will probably be another 18 months project, will it not?

Yeah, definitely. THEY LAUGH

# I guess I'll have to change my plan

# I overlooked that point completely

# Until the big affair began

# I guess I'll have to change my plan... #

Ah, well, best laid plans and all that.

Never mind, this house is looking great,

and it allows them to continue with their plans for more development.

So all's well that ends well.

Assuming they've not overspent.

Right, the budget we set for ourselves was £10,000.

That was mainly doing most of the jobs ourselves, which we have done.

And we've now met £9,750,

so we're well pleased that we're within the budget.

Dave and Elaine bought the property for £82,500

and have done well to keep just under that £10,000 budget,

but doing all the work themselves has meant the development has

taken 15 months rather than the intended six.

We've asked along two local property experts to check

out their hard work.

I love the layout, it's nice to have the hallway in the middle.

And then they've got the dining room, which is open-plan to the

kitchen, which is a great feature.

This is my first trip around the property.

Having seen the original photographs,

I was pleasantly surprised at the approach to the house.

You've got the lovely big private garden to the rear with mature

trees. And that lovely big deck area for eating out.

Ah, picnics on the patio, what a good idea.

Having spent £92,250, what could Dave

and Elaine expect, were they to sell or rent the property?

I would expect to achieve a sale price of up to £110,000.

And a rental value of up to £550 per calendar month.

To put this property up for sale,

I would expect £115,000.

To rent it out, maybe £550 per calendar month.

That rental figure of £550 per calendar month would give them

a pretty good yield of over 7%. Were they to sell,

they would make a profit of £22,750

minus the usual taxes and expenses.

I think the figure he has given us, we'll be happy with that

for the time being, we know we've got work to do.

But I think that is it.

When we've done it all, that figure will be what we were looking for.

-And the rental is exactly what we thought.

-Yes, definitely.

Dave and Elaine kept to budget

and now have a good potential profit to show for it.

Would they do it again?

We're not getting any younger and...

-Speak for yourself.

-THEY LAUGH

We would think about another one, just a little bit less work. We don't

mind some of it, but not quite the major transformation

we've done on this one.

So that's how today's three properties turned out.

But for more auction action, you know what to do.

-Join us next time for more Homes Under The Hammer.

-Goodbye.

-Goodbye.