Episode 13 Homes Under the Hammer

Property can have its highs and lows.

It's not as easy as it appears,

especially if you get stuck in a chain.

But you can eliminate that chain by going to the auctions.

Well, there are all sorts of properties

being sold at the auctions these days.

Their buyers have a huge variety of plans and budgets for them.

So here are the three properties that we're featuring

on today's Homes Under The Hammer.

It's time to get my creative hat on with this

property in Crewe in Cheshire.

You could so transform it with some basic interior decoration!

While I see a lot in Surrey that's even got the local estate agent excited!

It is very unusual to find a building plot.

I've worked here for 20 years

and I think this is the second one I've come across.

And in County Durham, this house might not be such a unique lot,

but there are quite a few plus points.

All in all, then, yes, I think the property gets a tick.

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.

Your lot, sir. Well done.

Whatever you think you know about Crewe in Cheshire, think again.

Because the famous railway station and not-so-famous town centre

have been undergoing a major regeneration in recent years.

And people want to live here. Lots of people.

The advent of High Speed II might mean Crewe will be even more

important as a key interchange.

Couple these factors along with a healthy student population,

this is definitely a first-class place to invest.

So, I'm hoping to find a property with a bit of a buzz about it.

Well, the street certainly bodes well. Nice, handsome properties.

And this is the one I'm here to see. It's a three-bedroomed,

spacious - according to the auction catalogue - mid-terrace.

Guide price was £55,000 plus. In we go.

This is a pretty handsome-looking Victorian street

and the exterior detail is quite elegant.

So, through the front door and, first thing that greets you,

this lovely Minton floor. Looks like it's seen better days.

But it gives you an idea of the kind of house this was.

Because that would have been put in, basically, in its day,

a more upmarket property.

So I'm hoping that that follows through with the rest of the house.

And sure enough, a few lovely features up there, and there is

just that sense the moment you walk through the door.

So, what have we got? Hallway there,

very large front sort of bay window fronted living area there.

Another lovely sort of dining room at the back.

And through to the kitchen.

I really like this sunny front room.

Those bay windows just let in so much light.

It's a typical Victorian house where elegance

and space were the order of the day.

But beyond the back reception room, in a less elegant extension,

is the kitchen.

Well, you'd hope it would be a kitchen in keeping with

the character of the house. Sadly not.

But the good news is, a room you could definitely make massive

changes to and therefore add value to the property.

Back there, additional space, a utility and a downstairs loo.

So, a bit of a disappointment, but who cares? It's good.

I love this house.

# Could it be I'm falling in love?

# Could it be I'm falling in love

# With you? #

Yes, I know, beauty is in the eye of the beholder.

But this house isn't about what it looks like now, it's the potential

of what it could look like in the future that I find so attractive.

So, upstairs, pretty traditional layout.

Three nice-sized bedrooms and a bathroom there as well.

There is everything you could want.

I mean, it's one of those houses that you sort of come into

and you just start uncovering little bits of history.

Even those tiles there, where a fireplace would have been,

where the radiator is now. And the floorboards.

You know, just strip these back and it would be really nice.

A really exciting project, this one.

Because there's not too much to do,

but you could so transform it with some basic interior decoration!

# When there is always something left to remind me!

# Always something left to remind me! #

And while some of the period features might be a bit

too far gone, I'd be looking to save as much as possible.

Don't let the wear and tear put you off. You could uncover a gem.

And that doesn't just apply to the inside of the house.

There's more worth saving outside.

Well, at the back of the property, some absolutely lovely features.

Look at this window. Probably original.

I think it's in a bit of a state, but if there is any way

of putting something similar back, you should so do it!

Retain that character.

But walking back here, you've got a decent-sized back yard.

It's laid largely to weeds! No, largely to slabs!

With a little decking area there, needs tidying up.

But you have got rear access as well.

So all in all, it just adds to what is already a really top house.

This really is a lovely little house and the garden isn't bad at all.

I'd be inclined to get some greenery, though. Perhaps weed-free!

The back of the house doesn't really live up to the front

and the upstairs, but there's nothing here that really worries me.

Does a local estate agent share my enthusiasm for this house,

guided at £55,000?

First impressions of this property is, lovely big property.

Nice features which they've retained. Nice Minton floor when you come in.

Nice big rooms. There is work to be done on it.

Obviously we're looking at new kitchens, new bathrooms

and probably decor throughout.

I think the main challenges for this property could be the electrics.

Possibly damp and timber.

Certainly anything could come up subject to survey.

Yes, old houses especially can throw up the unexpected.

So having some money as a contingency in a budget

is always advisable.

To help you do your sums, it's always sensible to find out

what the property could be worth on the resale market.

If this property was fully renovated,

we'd be looking for a resale value of about £95,000.

And how about a figure for the rental market?

If this property went to the rental market,

we'd be looking to get somewhere around £575 per calendar month.

So, what do you think?

I think you certainly get a lot of house for your money in Crewe.

£55,000 plus guide price, it would have set the auction room alight!

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

Well, it was towards the end of the day when this lot came up.

So was I right about it capturing attention?

It's a bay-fronted Victorian terraced house. Three spacious bedrooms.

Two reception rooms. First-floor bathroom. Guiding in at 55.

48 to start. 48 bid. Thank you. At £48,000. I'll go in ones on this.

49 can we say now?

Bid's at 48. 49. At 49. 50?

£50,000. 51? 51. 52. 53.

54. 55. 56 anywhere else?

New bidder. 56.

57. 58?

No? At... Yes? 58.

59. 60? No. At 59, then.

Your bid, sir, still at £59,000. Standing.

At £59,000 for the first time.

At £59,000 for the second time.

Third and final time at 59,000.

Your lot, sir, well done.

That successful bid came from Steve.

Well, I reckon Steve bagged a bargain getting this great house for 59,000.

I met him back at the property to find out more about his plans.

-Steve, great to meet you.

-And you.

-Congratulations.

-Thank you very much.

-Well done. I love this house!

-It's all right, actually. Quite pleased with it.

-Good.

Tell me why you wanted to buy it.

-Well, it felt like quite a lot of house for the money, really.

-Mmm.

A lot of potential. It's a very good rental area round here.

And apparently there's going to be a lot of development in Crewe

over the next few years.

So I'm hoping that I'll rent it for as long as I can and then,

hopefully when it comes time to sell, then I'll get a decent return on it.

So tell me a bit about you. Is this what you do?

No, this is my first one.

I have worked in sales all my career,

-but I've been made redundant twice within two years.

-Oh, no!

And when it happened the first time, I started watching your programme

and thought, "Oh, that's a good idea! I'll get into that."

But then got another job fairly quickly.

So I put it on hold, then when I was made redundant the second time,

I thought, "Right, let's, you know, get back into it."

# Every path has led me back to you

# Every path has led me back to you. #

Steve has clearly found a new path, and good luck to him.

And he's lucky to be starting off with this lovely house,

as it's just brimming with potential.

But what are his plans?

Well, obviously it needs a lot of redecoration.

But I think there's a few tiles on the roof that have slipped,

so I need to check there's nothing too serious with the roof.

There's a bit of damp that needs sorting out.

The kitchen's a mess,

so I think that needs taking out and starting from scratch.

I think the upstairs bathroom is very narrow,

so I'm trying to find a way of making that a little bit wider,

without detracting from the bedroom too much.

Possibly do something with this window at the back.

Maybe convert that into French windows and put some decking outside.

Now, whether or not I do that for rental of whether or not

I save that for when I sell on, you know, I'm looking for advice, really.

It was a feature I particularly loved.

But I can see why you'd want to put French doors in there.

-It's just such an unusual shape, shape, isn't it?

-Yeah, yeah. It is.

-Right. So what's the budget?

-About 10,000.

I would hope to get everything done for less than ten,

-with a bit of luck.

-And what about timescales?

It all depends on whether or not I get a job, really, to be honest.

And the other thing is, I'm getting married in about ten weeks.

So that will take up quite a bit of time in terms of preparations.

Yes!

-Well, congratulations on getting married, anyway.

-Yes, thank you!

-Yeah. Actually, I'm going to have two best men.

-Right.

-And one of them's called Martin Roberts!

-Really?!

Which is quite bizarre.

Did you check I was available on that particular date?!

Yeah! Why, have you not written your speech?!

THEY LAUGH

Sounds like I'd better get my best suit cleaned!

Seriously, though, Steve is certainly in the middle

of life-changing events.

He's hoping to do the property up in ten weeks.

But that's along with planning a wedding

and possibly starting a new job!

You talk about going back to work,

but what happens if, you know, this turns out to be a roaring success?

I'd like to do more of this, to be honest.

My daughter, she's just graduated,

she wants to get into interior design.

So maybe we set up some sort of family business

and make a thing of it.

But I think I've just got to play it one step at a time

and see what happens. Keep my options open and take it from there.

-Well, congratulations!

-Thank you.

-With everything, including the wedding.

-Thank you.

-I'll be there!

Right, excellent!

So, lots of things for Steve to decide,

particularly when it comes to timings.

And I need to check my diary to make sure I can make his wedding!

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

Oh, I do like a wedding! But there's no time for that!

I've got property to see in Surrey,

in the well-connected town of Morden.

Not only are there great rail and road links,

but it's also on the end of the Northern line,

so you can be in the capital's centre in 30 minutes.

But there's MORDEN that to this place,

with shops aplenty and the lovely Morden Hall Park.

And just 100 yards from there, I'm starting my search for today's

auction lot, with an unexpected country walk.

Today I've taken a turn off the main drag and, well,

everything suddenly feels a lot more rural -

or should I say overgrown?! -

as I try and track down our property.

Now, it's a detached two-storey house.

It had a guide price of £145,000.

Look! There it is.

Now, usually, I would head inside, I'd have a look around,

but I know all the windows and doors have been blocked up.

So I can't get in.

It's such a shame the house is bricked up.

While getting into the house is impossible, getting onto the plot

isn't exactly easy either, with a barrier and that overgrown pathway.

The good news is, the council is planning to create access

at the other end of the property, where joggers

and dog walkers use the playing fields.

There's also a tennis court, but it's not exactly in ace condition!

And whilst the big plus in Morden is the transport links,

having the train track run right along your boundary line

may not be for everyone,

although I'm assured the trains are restricted on the weekends

and mostly run during the day throughout the week.

So, what have I discovered so far?

Well, the house has certainly seen better days.

And it looks extremely derelict from the outside.

I can only imagine what work it requires on the inside! Lots!

Now, it does however sit on a really nice large rectangular plot of land.

Now, it's overgrown at the moment,

but I think this land could actually be the real selling feature here.

Let's face it, the property's not exactly appealing right now.

Even with its 0.18 acres of land, it would take a lot of heart

to get some soul back into this property!

# Awake my soul!

# Awake my soul! #

So what are your options? Well, I think you actually have a couple.

You could renovate the existing house and think about extending it,

or you could demolish and rebuild.

Personally, I think demolition is the way to go,

as the existing house needs so much repair work! What could you build?

Well, I know this is a popular family spot, so I think

a lovely new three-bedroom house would work really well here.

But hang on a minute, I'm not just talking about one house.

The size of this plot, it's making me think big!

I think you could fit two, three or even four properties on this site.

Not bad for £145,000.

But let's not get too excited just yet.

There are plenty of hoops to jump through before you can build

your lovely new houses here. There's no guarantee

that the local council will grant you planning permission.

This process can take plenty of time and money.

The planners will consider aspects such as parking provision,

how well the proposed properties will fit into their surroundings,

and also, the privacy from the neighbouring houses.

Unfortunately, there's still a long way to go

until this really can be used as a building plot.

First up, I'd recommend employing an architect,

ideally one who knows the local area and the local planners who would be

best placed to advise you on how to maximise the potential of the site,

and help you create something in keeping with the surroundings.

We invited an estate agent to take a look around and tell us

what he thinks are the positives of this place.

It is very unusual to find a building plot.

I've worked here for 20 years and I think this is the second one

I've come across, so it's very unique.

It is off the beaten track, although I think that would be a positive

for it. But also, it's close to the Tube station.

So it's got the ideal setting for someone to look in the Morden area.

This lot was guided at £145,000.

If the buyer opted to renovate what's here,

what money could they stand to make?

If the existing house was refurbished and sold, it would sell for £350,000.

If the existing house was renovated and then put out for rental,

you're looking at £1,500 per calendar month.

But how about if the buyer opted to demolish and rebuild?

It's hard to value what isn't there yet,

but let's go on the basis of two two-bedroom semidetached houses.

What would each be worth sales and rent-wise?

The resale value on two-bedroom properties would be £300,000.

A two-bedroom semidetached house would rent for £1,200 per calendar month.

A little scout around this site has thrown up a whole lot of exciting options,

but it's not without its challenges.

I think you could really make the most of the land

by building new houses here.

But there is no planning permission in place yet,

and that could be challenging.

Let's see who felt this lot was worth fighting for when we went to the auction.

Who'd like to kick off and how much?

OK, 150. 150. 155.

160. 165. 170.

Yeah? 175 at the back.

180. 185.

Bidding was as quick to escalate as it had been to get started.

We rejoined as it reached 270,000.

270. Yeah? 271.

272. 273. 274.

275. 276.

277. 278.

279. 280. 281. 282.

282. Have a think. I've got 281.

If you haven't seen it, you should have done, cos I like it.

281, first time. Second time.

Third and last time. Have you all done?

Sold, 281! Well bought.

Yes, 281,000, you heard right. For nearly twice that guide price,

this dilapidated house was bought by Jagen.

He was at the auction with friend and fellow property developer, Andrew.

They offer each other support on projects

and they both came along to tell us what they planned.

Guys, congratulations. What was it about the site that you liked so much?

It was because it's quite a big site,

where we have had preliminary drawings done on it.

And I can see that they can have four dwellings that can go on it.

And that was a goer for me, more than anything else.

Wow, so this one house is going to become four,

in the shape of two sets of semis.

So it may be two heads are better than one.

So why have you decided to put both of your heads together

on a project like this?

We actually came together five years ago

with a mutual interest in a property in Stoke.

And while certain aspects of our personalities

have prevented us formulising a formal partnership,

we work as a partner...

I do a project and Jagen will help and support me,

while his last project is sort of bedding in and proving its worth.

But he gets something and just as mine is finished

and I'm looking at just letting mine settle down,

-I sort of have a little bit of input into his.

-OK.

-So you do work brilliantly as a team?

-Yes.

This pair have an unusual set-up,

but one I can completely understand works well.

And it will be great for Jagen

to have support for this project as he's got big plans.

He wants to demolish the existing building

and replace it with two pairs of semidetached houses.

If you could talk me through how it's going to work inside.

Yes. As you see there very clearly,

I've got a kitchen in the front of it, as you're heading in.

-And that's going to be to the front, here?

-To the front of it.

OK, and then you go up the first flight of stairs and you've got...?

I've got two bedrooms on there.

Two lovely bedrooms with a family bathroom, there.

And then right upstairs, in the top,

you've got a little study, bedroom three and an en suite.

Well, what I love is the way they look.

I mean, look, that looks amazing.

That looks beautiful.

-So there's one parking space for each property?

-No.

As you see here, you've got two car parking spaces for each property

and then there's a lawn to break the parking spaces.

And then we've got cycle storage for the back, as well.

So if people want to use their bikes,

they can still be putting them at the back.

Jagen has thought everything through thoroughly

and he wants to make the properties energy efficient as well.

His budget is £100,000 to £125,000 per property.

And he's hoping to do the work in six months.

But he'll have a few hoops to jump through

before he can get cracking.

So what have the council said? Have you spoken to them?

-No.

-No, we haven't. No.

That sums it up - no!

You're very relaxed about this.

So you haven't even had a chat with the local council

about the site and whether or not it would be a goer?

No, we haven't.

But we've sort of formed an opinion with the housing market

and apparent housing shortage in this area

that there would not be too many problems

and we have everything crossed there won't.

A relaxed attitude is all well and good

but I would always recommend speaking to the planners

before drawing up plans as meeting with them early means

that you can get an idea of what will be allowed

and it should save you time and money along the way.

One thing's for sure,

I can't wait to see what becomes of this.

Well, Andrew and Jagen obviously saw the potential of this site,

judging by their very big spend in the auction room.

Will planning permission be a smooth ride

so they can stick to that six-month timescale?

You can join me later on in the programme

and find out how it goes for them.

Coming up, in County Durham

we discover the best way to advertise your buy-to-let property.

Does your board say anything special or just...?

BOTH: Rent me!

And back in Morden, Surrey,

we catch up with Andrew and Jagen's trials and tribulations.

It was more challenging than expected

and the outcome was very different.

But first, we return to the Cheshire town of Crewe

where we saw a three-bed Victorian terraced house

with some great original features.

But it was really showing its age

and needed someone to take a chance on uncovering its hidden potential.

Enter Steve, who bought it for £59,000

and was looking for a bit of a second chance himself.

So tell me a bit about you. Is this what you do?

No, this is my first one.

I have worked in sales for, like, all my career

-but I've been made redundant twice within two years.

-Oh, no.

And when it happened the first time I started watching your programme

and thought, "Oh, that's a good idea. I'll get into that,"

but then got another job fairly quickly.

So I put it on hold.

Then when I was made redundant the second time I thought,

"Right, let's get back into it."

-And what about timescales?

-It all depends

on whether or not I get a job, really, to be honest.

And the other thing is, I'm getting married in about ten weeks so...

That will take up quite a bit of time in terms of preparation.

So Steve was suddenly going to be a very busy man.

And armed with a £10,000 budget,

he had a slightly optimistic ten-week timescale,

hoping he could sort it out

before the ringing of those wedding bells.

And now, eight months later,

we're back with Steve to find out how all the changes have gone.

The exterior is looking crisper, with new windows and paintwork.

So what's been happening inside?

Ah, that's more like it!

An open fireplace, wood panelling.

Suddenly the place is showing its age,

but in a good way.

And the dreary kitchen and utility area?

# Everything has changed. #

It certainly has, and it's all the better for it.

First thing was to sort out the damp,

cos there was quite a bit of damp,

more than we actually appreciated.

It turned out that most of it

was actually coming up through the tiled floor.

So as well as injecting the walls with cream

to stop the damp coming up,

we had to excavate this whole area and then relay this floor.

And damp wasn't the only major issue either.

Steve had to replace all the lead pipe work

and put in a new water main.

He also had to take down an unsupported chimney.

And upstairs, not only has he fully refurbished the three bedrooms,

he's slightly rejigged the layout.

The original bathroom was very narrow,

so it had the bath running down the side

and it felt very claustrophobic.

So what we decided to do was...

The wall between the bathroom and the bedroom

was in a bad state anyway.

So we took that down, just a partition wall,

moved that into the bedroom slightly

and moved the other wall of the bathroom

to make a better-proportioned room,

so that we could get a bath under the window

and a shower into that.

And quite pleased with how it's turned out, really.

And in addition to the main bathroom,

he's removed a cupboard on the landing

and has built a new shower room.

And though outside at the back needs some work,

he's nearly made all the major changes inside,

so he's certainly been busy.

Wait a minute...

Wasn't he supposed to be getting married as well?

I did get married in between all of this, yes!

I think one of the reasons for the time it took

is that the preparations for the wedding

took a lot longer than anticipated.

And whilst I was enjoying doing this,

I don't think my wife would have appreciated

me leaving her to do everything else.

So, yes, that took some time.

I thoroughly enjoyed it.

Went away and had a fantastic honeymoon

and then came back to reality

and carried on stripping wood chip off the walls.

Sounds like the honeymoon period didn't last long!

But Steve wasn't alone doing the work.

After slow progress over the first few months,

he hired a builder

and together they got the bulk of the work done in four months,

bringing in professional tradesmen where necessary.

But I suspect, with all the extra work here,

Steve's proposed £10,000 budget also suffered.

I think we're going to be about 15,000 in total.

So the extra bits have been

the windows that we weren't anticipating,

the work on the chimney at the back

and the mains water pipe.

£15,000 on top of his £59,000 purchase price

takes Steve's total spend to £74,000

without taxes or fees.

So has his first property venture been worth the wait?

What do two local estate agents think?

They've made a really nice job. It's really refreshed.

They've done quite a few changes to the property.

I like the idea that they've taken out the wall here in the kitchen.

We have a nice breakfast kitchen, dining kitchen.

And in addition they've made the shower room upstairs

with an additional WC,

which I think will appeal to most buyers.

The seller's done a superb job modernising this property.

With the new kitchen and bathroom, it really stands out on the road.

I'd expect this property to sell really well

and certainly it's a very impressive finished product.

At present, Steve plans to let the property.

But how would a house he's invested £74,000 in

fare on the current resale market?

If this property went onto the market,

we would market it at £90,000.

In my opinion, we'd be looking to achieve a figure

in the region of £100,000.

I was thinking 85, 90

so if it could get as much as 100 then that's good.

Encouraging signs on resale,

with a potential £16,000 to £26,000 pre-tax profit.

But what about those all-important rental returns?

I think if this property went on to the rental market,

we'd be looking to achieve around about

£575 per calendar month.

In my opinion, this property will rent for a figure of

£550 per calendar month.

Yeah, I think that's, you know...

There's obviously a lot of houses rented around this area

and that seems to be the going rate for a three-bedroomed house.

Even the lower £550 per calendar month

would generate a yield just below 9%.

But is that enough for Steve to give it a go as a career?

Well, it depends on the job situation.

But because this has been so great,

I'm seriously considering doing this long term.

And in fact, he's already bought his next property

so it seems that his career path is now clearer.

So fantastic house but I know what you're thinking.

"Martin, what about this?"

-I'm going to have two best men.

-Right.

And one of them's called Martin Roberts,

-which is bizarre!

-Really?

Did you check I was available on that date?!

Yeah, well, have you not written your speech?!

So did the right Martin Roberts turn up?

Well, it depends on your point of view.

But he certainly had a better shirt on

than your Martin Roberts did that day. So, yes!

Hey! What's wrong with my shirt?

I'm in the north-east of England now,

in the former mining town of Stanley.

Well, there's no escaping the town's industrial past.

And why would you want to?

The property I'm here to see - probably built for local workers.

A two-bedroom terrace. It had a guide price of 30,000 quid.

Let's take a look.

So what have we got? Fairly standard layout, I think.

Stairs up to the bedrooms, there,

and then into a really nice-sized living room.

I love the fact that they've taken out under the stairs, here.

It really opens it up.

Admittedly there isn't any furniture in here at the moment

so a three-piece suite is going to shrink it a bit.

But it's good, I really like it. You know, you've got a gas fire.

You'd need to have that checked out, maybe even open it up.

So all in all, good start.

Kitchen could be better.

I think there's enough space in here to have a kitchen at that end,

sort of breakfast area here,

creating that much desired, sort of, kitchen/living area.

And so I will stick with, yeah, pretty good.

There really isn't much to this house.

It's basically two rooms downstairs.

There will be lots of work to get it up to standard

but its size makes it comfortably manageable.

And that £30,000 guide price

definitely makes it potentially an interesting investment.

Well, it really is a bit of a hodgepodge out the back, here.

You've got this little lean-to area off the kitchen, a little yard,

a garage, which is great news,

cos there aren't that many of the other houses in this street

which have got garages. So that's brill.

And then that, whatever that is.

So it makes this rear area, I suppose, reasonably practical

but just a little bit claustrophobic.

So maybe knock some of these things down a bit.

Hmm, yes, you definitely have

at least one too many lean-tos and outbuildings, here.

Storage is useful to have

but so is a little more outside room.

So some of these will need to go.

But the garage, well, that's a big plus.

As is the field area at the back,

which offers some much-needed outside space.

Talking of space, what's the upstairs area like?

So upstairs, no great surprises.

Apart from one good one which is the fact that the loo,

the bathroom and toilet, are up here,

which is fantastic,

in a kind of strange extension thing at the back.

Double-storey, though,

and that is really good to see, not what you would have expected.

Two bedrooms, though.

The one at the front, here, bigger than the one at the back.

And again, in sort of middling condition.

All in all, then, yes, I think the property gets a tick.

Yeah, I think there are lots of positives

in terms of layout, room size, cost

and not too many negatives.

And it strikes me as a place that, once done up,

could rent out all day long.

But what does a local estate agent

think of this two-bed mid-terraced house?

This house is typical of many in the area.

A traditional terraced house situated fairly close to a busy road.

It's the bypass through Stanley town centre.

Obviously there may be some negatives to that for the resale perspective,

for the road noise,

however I think, particularly from the rental side of things,

it's an advantage -

linking the property and the town centre to outlying areas,

to Consett on one side, to Chester-le-Street

and further to Newcastle and Durham,

obviously, which is great for commuting.

The main things that need to be addressed in the property

are the overall decorative condition,

the heating system needs to be replaced,

the electrics need to be looked at.

Obviously just the general condition of the house throughout,

it needs a complete renovation.

Yes, but how would this house, which was guided at £30,000,

fare as an investment?

Once improved and if put back on the market for resale,

I think the owners should look to achieve a sale

somewhere in the region of £60,000 for the house.

In my opinion, I think the best option for this property,

once refurbished, would be to let the house.

I think you should be looking to achieve

somewhere in the region of £400 per calendar month.

Assuming you got the house for the guide price

and spent a generous £10,000 refurbishing it,

that should give you a yield of 12%.

Well, it needs a bit of sorting out

but nothing too demanding.

And for a £30,000 guide price,

potentially good rental yield

and a solid little property.

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

Lot number 30, terraced property - does require full refurbishment.

Situated close to town...Stanley town centre.

26,000 anywhere?

26, gentleman standing, in the glasses.

26, 27?

27 bid. 28?

28 bid. 29?

29 bid. 30?

30,000 bid. 31?

32.

33.

34?

35.

Not yet. 35?

34,500. 35?

I'm on the third row at £34,500.

I'll take 500 elsewhere?

I'm selling it once at 34,500.

I'm selling for the second time at £34,500.

Sold, gentleman in the third row, at 34,500.

So for 34,500, the two-bed mid-terraced house in Stanley

was bought by husband and wife team Zarine and Gary.

They live locally

and it turns out they know the streets of Stanley very well indeed.

-Zarine, Gary, good to meet you both.

-Hello, there.

-Hi, there.

Congratulations! Tell me why you wanted to buy this place.

-We already owned another two in the street.

-Oh, right!

You obviously know the houses, then.

How have the other ones gone for you?

-Absolutely wonderful.

-Yeah.

We've recently done one up further up the street,

within the last six months, and it rented out straightaway.

Right, tell me about you two.

Is this something you do a lot of?

Yeah, well, we own 14 properties

and we've got some land that we were going to build on

but we're not so sure at the minute.

-We've got it up for sale!

-Oh, right, what's put you off?

-I think it's just cos it's on a hill!

-Oh, right!

So it's a bit difficult.

So I think it's easier just to buy them like this,

gut then, do them up, get a tenant straight in.

Right. Is this what you do full time, then?

No, I'm a firefighter.

-I work for Durham and Darlington Fire and Rescue.

-Oh, brilliant!

-You're a fireman. A firefighter!

-Firefighter, yes.

The politically correct way to call it. Brilliant.

-How long have you been doing that for?

-23 year.

-23 years.

Do you still have a pole that you slide down or not?

-Yes!

-You do! Oh, that's such good news!

-I thought they got rid of the poles.

-No.

-Well, they've still got it at our station.

-Have you?!

-And do you actually slide down it?

-No!

Is it an optional extra?

-You can slide down it if you want?

-You can if you want, yeah.

Well, that's good news.

Still a chance I might be able to have a go one day, then.

This two-bed house does need rescuing

but it sounds as if this property will be in experienced hands.

So tell me what you're going to do with it, then, to sort it out.

Gut it, basically.

New kitchen, new bathroom, rewire, new central-heating system,

-replaster it.

-Damp proof course.

-Damp proof course...

New garage door, brick the windows up in the garage,

new roof on the extension out the back.

-Everything!

-Basically everything.

They're not kidding. Everything.

And they have a budget of £10,000 to £12,000 for the work,

which seems good to me.

And because they have another project going on at the moment,

they're allowing three to four months.

What about finding good tenants? How do you go about doing that?

That's when I come into it.

I meet them all personally, ask a lot about their background,

visit their own property that they live in at the moment

-to see how they're keeping it.

-Oh, do you?

And I think nowadays it's a really good idea to have a guarantor!

Right, what do you mean by that?

Just if they're not going to pay the rent

then the guarantor has to.

So who would the guarantor be?

Normally the parents of whoever's moving in.

But they have to own their own home.

That way then if they don't pay it, you go to court

and obviously the house has this put against it

-and the money gets paid through the house.

-Right.

But it's a way of you safeguarding that you do get...

-The rent.

-That I do get the rent, yeah.

And that they'll look after the property.

Being a landlord doesn't stop at doing up a property.

Not only do you have to ensure your tenants are treated fairly,

you have to put safeguards in place to protect your income

and your property.

And if good tenants and good landlords come together

then everyone's a winner.

And how do you go about advertising the property for rent?

We've got our own board that we stick outside the house.

-We'll put one out front and back.

-Is that it?

-Yeah.

-And that's enough in general?

-Yeah.

-Oh, definitely.

We'll probably have 10, 15 people interested in renting it,

just from putting a board outside.

Does your board say anything special or just...

BOTH: Rent me!

-Rent me!

-Exactly.

Obviously you're big fans of this street.

Are you going to buy any more in it?

-Next door is empty at the moment so...

-Oh!

There's a possibility!

And then onwards and upwards and get the street bought out!

A game of Monopoly!

When do you stop? I mean, you've got 14 properties at the moment.

Have you got aspirations for 20, 30, 100 or what?

No, we said we were stopping about 12.

OK, so you've blown that one, then!

-I get bored very easily so...

-You get bored?

So just something for me to do over the winter.

Yeah, well, good news.

Well, congratulations and good luck with it.

And I look forward to seeing how you get on.

-Thank you very much.

-Thank you.

So Zarine and Gary buying up more and more houses on this street.

It's turning into a property board game, isn't it?!

But it actually does make a lot of sense

to stick within one very close proximity

when it comes to renting out and managing those properties.

So a good decision, I'm sure.

Will there be a hotel on the street when we come back?!

You can find out later in the show.

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

Have the owners been racing through the work?

Or have they ground to a complete halt?

Let's go back and find out.

Morden in Surrey is at the end of

the southern tip of the Northern line.

And it was here that we first saw a house which,

even with a railway line next to it,

was not only off the beaten track

but also looked like it had hit the buffers.

Blocked up windows and doors prevented access

and I could only guess that inside wasn't much better.

But this really didn't matter.

What mattered was that it was there

and therefore it could be considered potentially a building plot -

a rarity in this part of Surrey.

Not only that, it wasn't a bad size

and had an attractive guide price of 145,000.

So perhaps not surprisingly,

it was a hotly contested lot at the auction.

Second time,

third and last time. If you're all done... Sold. 281.

Well bought.

Paying £136,000 over the guide price was property developer Jagen, who,

along with fellow property developer and adviser Andrew,

had great plans for the derelict house and plot.

We have had preliminary drawings done on it

and I can see that they can have four dwellings that can go on it.

Well, what I love is the way they look. I mean, look.

That looks amazing. That looks beautiful.

-So what have the council said? Have you spoken to them?

-No.

No, we haven't. No. That sums it up! No.

Hmm, so Jagen and Andrew were really excited by this development.

But would the planners be so keen?

Now, 11 months later, we're back.

Hold on, that doesn't look like four houses!

We went in for planning for four houses,

which was two sets of semis, which are perfect for the area.

We had a lot of objections from the neighbours,

saying that it is an overdevelopment.

End of the day, they said four is too much

and the planners said, "Come back to us with two."

So, taking their reservations, we went in with two

and they said no to that as well.

So leaving us no choice except to renovate the existing house.

Finally, after eight months of planning wrangles,

they got permission to build

a four-bedroom detached house with a double garage.

And three months into the build, it's well underway.

It might not be what they'd wanted

but it's a bigger and better property

and they hope to push the boat out with the finish.

Well, this is going to be the kitchen area.

It's going to be made out of high-gloss cream units

with the sink unit looking over the window.

And mainly all storage units inside

and then a utility room through the back,

through that doorway, there.

Upstairs, there's a large family bathroom

and the four bedrooms...

..two of which are en suite.

Well, this room I'm hoping is going to be the master bedroom.

Obviously there is another one,

where my colleague thinks that is better laid for the master.

I think this one's got a really nice feel to it.

It's a good size, and full en suite.

So I think this lends itself perfectly.

And with the views over a bit of greenery as well.

It's quite a nice room.

This is basically a new build

with only the footprint of the old property being maintained,

and Jagen and his team of builders have worked tirelessly

to try and pull back some lost time.

They're hoping that they're only four weeks away

from completing the project.

So how do they feel about where they're at?

Are we unhappy?

Not with what we've got at the end of it, no.

You go back to the drawing board and just start again

and, you know, hopefully...

Well, there's no hopefully. Yeah, it will...

It will get us where we want to be.

It was just not where we wanted to be originally.

So the project has changed from getting quantity from the site

to getting quality.

But how much has that affected their proposed top budget of 500,000

for the four houses they'd hoped for?

At the moment I think I'm on 200 plus.

And I think by the time we'll be finished with everything

we'll be about 250 to 300.

Assuming the upper £300,000 budget

on top of their £281,000 purchase price,

that would make their total spend 581,000.

Is Jagen going to regret paying so much at auction for this project?

Or has it worked out for the best?

What do two local estate agents think?

I personally feel,

because of the style of the property and the location of it,

it suits much better to have a detached house here.

Plus the location is so convenient for the Tube and train station.

So I think it's a very positive thing.

My initial impressions are

that the house has been constructed to a good standard.

It's a nice specification thus far.

I could see wardrobes in all the bedrooms

and downstairs, the layout in general

is commensurate with, I think, modern-day family living.

Because of the level of value,

the finish is very important to the person or persons

that's going to purchase this property.

So that'll be hopefully solid-wood floors, chrome finishes,

the kitchen...I'd hope he's going to finish it

with a high-gloss, with a possible slate finish.

Plus the fact that he's got the detached garage

and all the frontage, so providing that's landscaped and finished,

that's going to stand you the best chance of selling the property.

This project has always been about resale, rather than rental.

And obviously they haven't completely finished it

so it's hard to judge what the end product will look like.

But if they do a high-end finish,

what could the project they've invested £581,000 in

be worth?

I would recommend to put this on the market

for 850,000

and look at offers over 825.

I think we should market the property

for between £775,000 and £825,000.

And the property will find its happy medium within that range.

Wow, that figure of 825,000

would give Jagen and his colleague Andrew

a profit of 244,000.

So how do they feel about that?

Well, I'm delighted with it, to be honest with you.

And for them to assess that figure in the property

at the level it's at...

..is heartening.

So for all its trials and tribulations,

it looks like this site might finally deliver

a rather healthy profit.

So are they glad they took the project on?

We're glad, you know.

When I bought it, I said to myself, "It's going to be a gamble."

Yeah, it was more challenging than expected

and the outcome was very different than what we originally planned

but no hesitation - yes, we'd do it again

and yeah, for us it was a good result.

Well, Jagen and Andrew may not have got what they originally wanted

but it certainly turned out OK in the end.

So is the same true for Zarine and Gary,

who bought a two-bed terraced house in Stanley in County Durham?

It needed the full schedule of works -

electrics, plumbing, possible new damp course

and a comprehensive refurbishment throughout.

And on top of this, there was the outside space,

chock-full with lean-tos and outbuildings

that really needed a rethink.

It did also have the added bonus of a good-sized garage

but it was the position of the house that made it right up their street.

Tell me why you wanted to buy this place.

We already owned another two in the street.

You obviously know the houses, then.

And how have the other ones gone for you?

Absolutely wonderful.

Yeah, we've recently done one up further up the street,

within the last six months, and rented it out straightaway.

And having bought the house for 34,500

and with a proposed £10,000-12,000 budget,

firefighter Gary and wife Zarine

hoped they could prepare the house for rental in three to four months.

And now, four months later, we're back with Gary and Zarine,

to see if the house is on the road to recovery.

Outside, not bad.

The roof has been repaired and there is new guttering and fascias.

But it was inside where the work was really needed and, in particular,

that rather sorry kitchen.

That's more like it! Contemporary, fresh and bright.

And in the front lounge, gone is the old gas fire

and in comes modern central heating.

There is a new damp course installed

and the house has been replastered and rewired throughout.

But it's the kitchen that is the revelation.

So, how did Zarine make the most of such little space?

Right, so, in here, it was a very dark kitchen.

It had wood panelling on the walls. It's not a very big kitchen,

so it did take a little time for designing it.

Space over here for a fridge-freezer. We've got the washing machine here

and incorporated a cooker and extractor fan in there, as well.

Yes, I think they have maximised the space

and produced a great kitchen area, but what about upstairs?

Well, again, this is now fully refurbished and the two bedrooms

are now complemented it with a much-improved bathroom.

So, the house itself is nearly ready to go.

But what about the outside space?

Remember that hotchpotch of outbuildings?

Out here, there was originally an offshoot in here,

with a see-through plastic roof. We have removed all that,

put coping stones on top of all the walls and rendered

all the interior yard walls.

New soffits around the garage and guttering.

New yard was put down along with drainage gullies.

And up on the roof, it was originally a flat roof on there.

We changed that to a sloping roof.

Well, what an improvement.

And the plan is for Zarine and Gary to use the garage for storage

and not rent it out with the house.

Overall, they must be really pleased with what they have achieved here.

The greatest sense of satisfaction is you see an old, run-down house

that just looked tired and dated,

and we've brought it back to life.

We've put a bit of life back into the house, just modernising it.

And it gives you a great deal of satisfaction seeing the end product.

It was very dark, very dark and dingy, when you came in.

And it just made you feel unhappy, as soon as you walked in.

But now it's just... It's full of life.

It's a happy-looking house to walk into now.

Gary is a firefighter and works shifts

and Zarine looks after their rental portfolio,

meaning work on the house has to be fitted around jobs.

So, how involved were they on this project?

Basically, my wife has done all the decorating.

I fitted the kitchen, the bathroom, the roof out back.

I've done a lot of the work myself, but we have had professionals in

doing the work that we needed a competent person to do.

Yeah, professionals for the professional jobs!

And that's reflected in a very professionally finished project

that, coupled with that "rent me" sign, has come up trumps again

and they already have a tenant -

a tenant, no less, who wants to pay for their own choice of carpets

to be fitted, which is good news for Gary and Zarine's budget.

We had a budget of somewhere between £10,000 to £12,000

and I think we have actually came in at about 10,750,

just under 11 grand.

A spend of 11,000, on top of their 34,500 purchase price,

takes their total costs

to £45,500, without taxes or fees.

So, the house is undoubtedly streaks better than it was,

but has it been a good investment?

What do two local estate agents think?

I think the property has been well refurbished.

Still a little bit of finishing off to be done, but the kitchen

and bathroom are very impressive.

They've both been refitted with new units.

Generally, a job well done.

I think the vendor has done a great job of the refurbishment.

The kitchen and bathroom are done to a really high standard.

Overall, the property is great.

Zarine and Gary view this as a long-term investment

and are not currently planning to sell the house,

but how would their 45,500

investment fare on the current resale market?

If the owners were looking to sell in the current market,

we would expect to achieve a price in the region of £60,000.

Once all the refurbishments have been done, I'd value it at £60,000.

60? Quite disappointed.

We would be looking, if we decided to sell, would be 70, 72,000,

-but I think we would be happy with 70,000, though.

-Yeah.

OK, so perhaps not as high as they had hoped for,

but even a resale price of £60,000 would see a pre-tax profit

just below 15,000. But what about its all-important rental value?

In the current rental market, the owners could expect to rent

the property out for something in the region of £400 to £425

per calendar month.

To rent the property out, once it has been fully refurbished,

I would value the property at £400 per calendar month.

We've actually managed to get 450.

£450 per calendar month off a £45,500 investment

gives a terrific annual rental yield in excess of 10%.

But with 14 properties in their portfolio, are they ready to stop?

I think, every year, we are happy with what we have,

but then, obviously, a good deal comes along and a good deal...

You just can't turn it down, so you just end up with another one!

# Can't help myself... #

And with their love of this street, property number 15 might not be

far away, both in time and distance.

# Can't help myself... #

Well, the world of property is never static or boring.

You need to know what you are doing, but we can help with that.

Yes, we will have more tales from the auction rooms next time,

-here, on Homes Under The Hammer.

-Goodbye.

-Goodbye.