Episode 31 Homes Under the Hammer

Hello and welcome. Now, those properties you see

in glamorous magazines look very tempting, don't they?

Don't you find they are usually way out of your budget?

Well, one way you could possibly lay your hands on something a bit

more affordable or possibly unusual

is by going to the property auctions.

Well, there are literally thousands of properties

available at the auctions every month, from building plots to flats

to, oh, anything that is ripe for development.

Yep, there is lots on offer,

and you can usually find something that fits the bill.

So let's see what got our buyers'

arms waving around in the auction room on today's show.

In Carlisle, is this pretty farmhouse tumbling down?

It is so dangerous, I'm not even going to go in there.

While in London, the prices are spiralling up.

150. 1,150,000.

160.

170.

And we return to the Cornish cottage that I fell for.

You cannot criticise the location. This is a fantastic place.

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.

Well done, sir.

I'm in the village of Great Orton, five miles from Carlisle.

It is a beautiful spot laid out primarily along this one road.

And interestingly enough, they used to chain the village

up at night to stop the cattle escaping.

It has got everything you could want - a school,

the pub and this church, which is over 1,000 years old,

built in 1098.

Well, the property I am here to see is a young

whippersnapper by comparison.

It is a Grade 2 listed farmhouse, 200 years old,

at a guide price of 100,000 quid.

And you know what? It's very pretty. Look at that.

Fantastic!

Ah, a charming and spacious three-bedroom farmhouse

sitting amidst the beautiful Cumbrian countryside.

What could possibly spoil this idyllic scene?

That's not good.

Come and have a look.

I mean, straightaway, even before I've got into the house,

I'm noticing something really quite serious.

Look at this crack - it runs literally all

the way down from the ground right up to the top.

And even at that edges of the window frames, there is a big gap.

Now, that is quite serious.

Oh, dear.

# Crack me up

# Do you really...? #

Don't panic, I don't think it is quite ready to tumble down.

But the house has been lying empty for 11 years

and has deteriorated badly.

# Break me up! #

I would definitely get a structural engineer to have a look toot sweet.

Let's hope there's nothing quite as dramatic inside.

But through the front door, and straightaway, big,

solid flagstone floor.

It looks absolutely beautiful cleaned up,

but you can bet your bottom dollar, there is no damp proofing,

so it will be cold and slightly damp.

But very traditional layout, very symmetrical,

a bit like the exterior.

On each side, a kind of reception room, living room area.

Your stairs are going in front of you there.

A rear reception there.

And then through into, well, a rear reception on this side.

There you go, surprise, surprise.

As you can see, it is definitely a project.

You couldn't live in it as it is.

But nice size, nice sort of feel to the place

in terms of the layout and also the proportions.

Out the back here, though, whereas this bit is just, well,

a bit of a mess, out here, a room that is so dangerous,

I'm not even going to go in there.

Let's be honest, this house is a money pit.

A lot of cash will have to be spent rebuilding this dangerous part

of the house.

On the plus side, it feels big.

And once restored, it could be beautiful.

Upstairs, there are three very good-sized bedrooms and a bathroom.

There isn't a small room anywhere.

Outside, there is space at the front and side,

although it will take some digging to find it.

But before you even begin, there is

one more important thing to take into account.

So, the building is Grade 2 listed, but what does that mean?

It basically means you can't do any alterations,

extensions or any demolition work without getting

approval of the listed building authorities. Um...

As long as you are doing stuff sympathetically

and in character, then those approvals will come.

But it takes time and it costs money.

In this instance, and straightaway,

I'm noticing something which clearly is not in keeping with the original.

These are plastic.

They've probably been put in by somebody in the past without

getting the approvals.

The thing is, as the new owner,

you are liable for any changes that might have happened in the past.

So you could be ending up spending money to replace those.

And if you don't, you could be liable for criminal prosecution.

# Breaking the law Breaking the law. #

That means that the local council can force you to make changes

to the building that you had nothing to do with in the first place.

It may sound unfair,

but it is all part of owning a significant building like this one.

But even with the restrictions on it and the repairs that are needed,

I still think this building is one to root for.

So, we asked a local property expert to take a look and give us

her opinion.

It has got a very prominent position within the village

and does stand very nicely.

It is in need of lot of modernization,

a thorough renovation.

Basically, a lovely style property with good-sized rooms.

The budget to renovate a property like this could be never-ending,

but I think £80,000 is realistic.

Will it be worth it?

Renovated to a good standard throughout,

the property could achieve up to £300,000.

There is definitely room for profit here if the new owners wanted

to sell it on, but would it be as successful as a rental property?

It would probably be a very limited rental market out here, but you

could achieve somewhere between £750 and £800 per calendar month.

Well, not a project for the faint-hearted

or those on a tight budget.

The fact that it is listed throws in a few added complications too.

But you know what?

This is one of those projects that is definitely worth the effort.

Can you imagine this place when it's done up? Wow.

Let's see who fancied taking on the challenge

when it went under the hammer.

OK. Lot number 36.

This is a detached farmhouse in a derelict condition.

However, offers fabulous potential.

Three bedrooms, three reception rooms and two bathrooms.

Good opportunity, this.

Not for the faint-hearted, but there is money in it.

Anybody going to start me at 100?

Let's get under way.

95 for this.

It has got to be worth 95.

90, then?

Any hands at 90?

90 I've got. At £90,000, we're away.

I'll take in one's, nice and easy. At 90, I've got. Is that a bid?

91, I have. 92. 93.

Four. Five. Six. Seven.

Eight. Nine. Ten.

100. 100 bid.

101, shall we say?

102.

103. 104.

105. 106, thinking about it.

It's with you at the back at £105,000.

106, 107. Eight.

Eight I've got. Nine.

110. Shake of the head.

It's with you at the back at £109,000.

109,500. 110, sir?

And a half? Shake of the head. Was it worth it?

With you there now, £110,000.

Back of the room. Selling this.

First time. You're out. Second time. 110. Third and final time.

All done, all out. Well done, sir.

Tom and Dave, who are friends

and business partners made that successful bid of 110,000.

Dave is a local farmer.

# Me and the farmer Like brother, like sister

# Getting on like hand and blister

# Me and the farmer. #

The pair met through farming and have been friends for 25 years.

However, this is their first renovation for profit.

I met up with Dave back at the house to discover their plans.

-Congratulations.

-Thank you.

I'm sure there are a lot of very envious people watching,

cos it is a great house, although it needs a bit of work.

-Yeah, that's right.

-Tell me why you wanted to buy it.

Well, I mean, the problem was we haven't looked at any.

And this was the first one we looked at.

And we set a price on it and went to auction and bought it.

-Right.

-Yep.

So talk me through exactly what you are going to do to it.

Well, most of the work is going to be inside.

Re-wire, re-plumb, a lot of plastering to do.

We'll put at least one en-suite in upstairs. A new bathroom down and up.

A new kitchen. There is a double garage to build at the back.

-And a general tidy up outside as well.

-What about the floor?

Because it's a solid floor at the moment, isn't it?

-Some of it is solid.

-Yeah.

-Yeah.

Well, we may have to dig that up, put insulation and

a damp course in as well.

He makes it all sound so straightforward,

but this project is far from that.

However, partner Tom has quite a few renovations under his belt.

And farmer Dave has just built himself a new family house,

tackling most of the work himself.

# Hard-working man

# If you are a hard-working man

# You're a hard-working... #

I don't doubt that for a second,

but what does Dave see as his biggest challenge?

Well, it's listed. You know, there is a few obstacles there.

We're going to have to work within the constraints of the listed

building regulations.

All the windows need a change. Windows and doors.

-They'll need to go back to an original type...

-Wood.

-Wood, yep.

-Which of course is going to be expensive, but lovely.

-Yeah.

Apart from that, I don't think there's too many big challenges.

Right. Other than the room out the back, which is completely derelict.

Yeah, there's a bit of work to do there.

A bit of rebuilding.

And outside, there is obviously this pretty scary crack on the front.

-Is that of concern to you?

-You've noticed(!)

-(LAUGHING)

-Yeah.

I don't think it's too much of a concern.

It has obviously been there quite a while.

I think we'll be able to get around that

with some stainless steel ties in.

Well, both Dave and Tom have got their work cut out for them,

inside and out.

But are their pockets deep enough to finance this job?

This can obviously chomp through a budget.

What kind of money have you got set aside for it?

Well, we think 60,

-60,000 to 80,000.

-Right. So a fairly healthy budget, then.

-Yeah.

-So what is the timescale for doing the work?

Well, we think probably about 15 to 18 months.

So there is no set dates or anything, we will just

fit in with each other as in when, you know, farm work permits.

-Are you excited about this?

-Oh, yes, yes.

-What are you most excited about?

-Selling it.

-Listen, congratulations, good luck.

-Thank you very much.

-Look forward to seeing how you get on.

-Thank you.

Well, lots of work on the horizon for Dave and his partner,

but at least they've set themselves a realistic budget

and they taken the time pressures off.

Still, what problems will they encounter as they start

the renovation? You can find out later in the show.

Well, if an idyllic country cottage isn't your thing,

how about this bustling part of South London?

This is Wimbledon,

a thriving area just seven miles from Central London.

Wimbledon is divided into two sections - the village and the town.

The town is the slightly more modern section,

as it developed after the railway station was built in 1838.

And of course, there is one part of Wimbledon

that doesn't need an introduction.

# Anyone for tennis

# Wouldn't that be nice? #

Wimbledon is, of course, home to the world-famous tennis championships.

It also has its own theatre.

It has a buzzing high street with loads of shops, bars and restaurants

and it is just a 20-minute train ride into Central London.

No wonder this is a very popular place for people to live.

The property I am here to see is right in the heart of the busy

commercial centre of Wimbledon.

And it's this, a three-storey building.

It has a ground floor resale unit with two more floors above,

and the guide price at auction was £700,000.

I'm going to go inside and explore.

This commercial unit used to be a beauty salon.

Now, you can see the front desk area here

and there are loads of treatment rooms further back.

In all its 1,500 square feet, well,

it currently has A1 business usage, so that means a

different retailer can move in here without applying for change of use.

But it doesn't cover financial services or hot food outlets

and restaurants.

So all in all, it is a versatile and large commercial space,

but it is right in the heart of a busy, thriving shopping centre.

So, it is looking good so far. Now where are those beauty rooms?

# Lipstick Powder and paint

# Lipstick Powder and paint. #

Unfortunately, there is no chance of a spray tan or pedicure here

these days, as all the rooms have been stripped out

and everything is looking a bit tired, tatty and a little bit shaky.

# Is you is or is you ain't? #

And if there is anything that needs a make-over in here,

it's that flooring.

Well, I'm sure by now, you've all noticed this rather unusual

sort of outdoor floor indoors.

And if you'd like to look closely, it's like a pebbly resin.

It's not what you'd expect to find on the inside of a property.

It looks a little bit like somebody has laid their driveway

throughout the whole building.

But this is what I find really, really interesting and exciting.

Come down here.

Because this beautiful, original, solid wood,

parquet floor runs the whole way through this building.

So somebody is going to have a field day getting all this up.

This building is huge!

You might have thought the ground floor was big,

and it is, but the entire lot in total is 3,300 square feet

spread over three floors, with lots of rooms, big and small.

So, on the upper floors, there are loads of further treatment rooms.

It is a real warren up here,

but I'm thinking this is ripe for residential conversion.

You could easily fit in loads of flats up here.

Now, you would have to sort out separate access,

as you currently have to go through the shop downstairs.

And of course, you would need to apply for planning permission.

But we are right slap bang in the centre of town here

and property values are just so high and flats are in demand.

This place could be a gold mine.

So there could be a bright future for this premises,

but was does the local property expert think? Let's find out.

# The gold dust at my feet

# On the sunny side of the street. #

With the grant of planning permission, considering retail

and residential on either side of the property, they'd have

no problem at all with applying for commercial and residential

use of this building.

With the residential use on the first and second floor,

I'd keep it as one-bedroom flats.

They'd work well for the market at the moment,

for the demand of one-bedrooms.

Which would really, really suit first-time buyers.

I would potentially look at extending to create a couple of

two bedrooms at the back of the property.

What is her recommendation for the shop premises on the ground floor?

In terms of business use, I think it would best suit a restaurant,

cos the size of the unit is very large.

That being said, the usage of the ground floor would affect

the desirability of the flats above if they are residential use.

Right now it is hard to say how many flats you could get in this

rabbit warren of a space. But how much could you get per flat?

With refurbishment,

a two-bedroom flat with a good square footage in this location

could achieve anywhere from £350,000 up to around about £400,000.

And would you get a good return if you opted to let instead?

If planning permission was granted for two-bedroom flats,

I'd expect the rent to be achieved somewhere between £1,400

and £1,450 per calendar month.

Well, there is plenty of potential here with a ground-floor shop

in a busy and prosperous shopping area.

And there's also the possibility of creating flats above.

But of course, it all depends on getting that planning permission to

convert those upper floors.

So who dared to take a punt on this Wimbledon wonder?

Let's find out what happened when it went to auction.

Good-sized mid-terrace building,

sort of around 3,500 square feet.

700 anywhere?

I'm not going to go below seven.

700.

Down here, 710. 710.

720.

Brace yourselves, this auction was just about to get very interesting.

A million. A million and ten.

10,000.

20,000.

30,000.

40,000.

50,000.

60,000.

70,000.

80,000.

90,000.

100,000. 1,100,000.

110.

120.

130.

150. 1,150,000.

160.

170.

180.

190.

200. 1,200,000.

210.

220.

210 with you. 1,210,000.

220. Elsewhere?

1,210,000.

First time.

Second time.

Third and last time. Have you all done?

Sold, 1,210,000.

Well bought. It's a good buy. Freehold.

That huge bid of just over 1.2 million was made

by Panos and his three cousins.

There are six family members involved in all.

I met Steve back of the property to find out what his clan had planned.

-Steve, congratulations.

-Thank you.

-Now, did you enjoy the auction?

It was amazing. The feeling...

Finally get a property with my cousins and my brother.

How many of you were there on the day bidding for this?

There's actually six partners, but there was four of us there.

Four. What happened after the hammer went down?

-What did you do?

-Group hug.

It was like the scrum of a rugby match,

we just all got together, we celebrated.

The feeling was unbelievable.

-1.2 million.

-A lot of money. But...

Yes, it is all yours!

The plan is to turn the upper floor into four two-bedroom flats.

The cousins all have varied business interests of their own.

For example, Steve owns a bar and he also owns a wedding dress shop

with his brother, Dus, who is a partner in this property.

I'm expecting the ground floor is going to offer an exciting

opportunity for all of them.

We've had a look and there is no sort of fish-bar restaurants here.

And we've all got background from restaurants, cos that's how

we were brought up, in our fathers' and our families'... You know.

We, you know...we started from washing plates to running

-the restaurants for our family.

-Really?

-Yes.

And we all are sort of saying like,

"Why don't we have a little dabble in that?"

So, as a little boy, you grew up in restaurants, washing up out back.

Never a Saturday off, never a Sunday off.

We had the hardest education ever with our fathers,

they were really strict.

And customer service was very, very important to our families.

I mean, they came over from Cyprus

in the '60s, that is how they started - washing up plates.

And through help, of family again, they ended up with a restaurant.

'Once again, I should go and get the fishmonger to prepare the fish.'

Of course, the fish restaurant is an exciting idea,

but I think the really exciting part is the potential upstairs.

With this property as it is at the moment, are you looking to extend

-and create extra square footage?

-Oh, yes. Of course.

There is a yard at the back and also there is a flat roof,

which we are hoping to build right up to the top.

Also, we are hoping to get another floor within this building.

So, you know, four by two bedroom is the minimum that I am after.

-It could get even bigger, Steve?

-Well, I'm being reserved.

-Wait until we come back. Watch this space.

-Absolutely.

What is the budget that you plan on spending here?

Have you all got that magic figure in your head?

We think the flat is half a million and we think the shop, 200,000.

Steve is hoping they can utilise every square inch of this building.

Neighbouring properties have set a precedent, which he hopes will

make planning permission possible.

So this is a huge investment, but their early dishwashing

apprenticeships mean they are definitely a driven bunch.

At the end of the day, we will be employing top people here -

top builders, top architects, top designers for the fish shop.

These are all people who are hungry for success, it's not just us.

So... But we will be hard bosses, we will be hard to please.

-So we will be on top of things.

-Steve, good luck with this project.

You've got a long way to go,

but it really is going to be an exciting one.

-Amazing, yes.

-Congratulations.

-Thank you very much. Thank you.

Well, Steve and his family have ambitious plans for this

million-pound property.

Not only are they hoping to start a restaurant business here,

but they are also hoping to get planning permission to extend

and create quite a few flats upstairs.

So, will they be on track to make big bucks or find

themselves in big trouble?

You can find out how they get on later in the programme.

Still to come, it's another family committee, this time in Cornwall.

Justine, my youngest daughter, and Sarah.

But at the end of the day, I have the casting vote.

And in Wimbledon, the fish restaurant braves choppy waters.

The planning process we had to go through with the restaurant

was quite difficult.

Northwest England boasts scenic splendour as well as ancient

monuments. This old farm house in the village of Great Orton had

a list of defects as long as Hadrian's Wall.

It was bought for £110,000 by Dave, on the right,

and business partner Tom.

With three bedrooms and plenty of space downstairs,

I felt it had great potential as an investment,

provided there were no major structural issues.

However, when I first visited 2.5 years ago,

something worryingly immediately caught my eye.

Now, that is quite serious.

MUSIC: "Don't Worry Be Happy"

Dave, on the other hand, seemed unperturbed.

-There is, obviously, this pretty scary crack.

-You've noticed(!)

I don't think it's too much of a concern.

Definitely not worried. The inside was in pretty poor condition too.

There aren't too many places I fear to tread,

but I found one at the back of this house.

It's so dangerous, I'm not even going to go in there.

Collapsed ceilings and dodgy cracks are one thing,

but Dave and Tom also had to contend with renovating

a listed building, potentially expensive and difficult.

Original features like windows and doors would have to be reinstated.

-They will need to go back to an original type...

-Right, wood.

-Wood, yep.

-Which of course is going to be expensive.

-Yep.

Apart from that, I don't think there is too many big challenges.

Unflappable, that is how I describe Dave.

Let's hope the budget of £60,000 to £80,000 didn't grow wings.

With a timescale of up to 18 months and an admirable lack of

concern for any problems that might arise, let's see how they got on.

I think you'll agree, this is an amazing transformation.

That cold and damp entrance has been transformed into a bright

and welcoming hallway.

The original flagstones have been polished and relayed.

Just beautiful.

The front rooms on either side have been completely refurbished.

And just look at those gorgeous new windows.

The UPVC double glazing has been removed with sash encasements

taking their place.

The new windows seem to draw light into every corner.

In keeping with listed building guidelines,

fixtures and fittings are traditional.

And Dave and Tom have exposed

and restored the wooden beams on the ceilings and doorways.

At the back of the ground floor, a wall has been knocked through,

creating an enormous kitchen dining area.

I really can't get over the amount of space.

The kitchen has been finished to a very high standard.

I think the blend of modern and traditional works really well here.

And as for the room at the back that had fallen down, well,

here is an understatement.

The back bit of the house was in quite a state.

In fact, it was difficult to see what was what.

The wall had totally fell in, the beam had fell down.

We had to jack it all back up and rebuild from the bottom

and join the upper story.

Wow, that is certainly more than a paint job.

The rear of the house looks fantastic.

As well as this downstairs room, an extra bedroom has been created,

which is separate from the rest of the house.

The existing three bedrooms have been completely revamped

and the lads have added three en-suites.

The main bathroom is simple yet stylish.

Decoration throughout has been kept neutral.

The doors have been lovingly restored, right down

to details like the handles and locks. Fantastic!

And there's a mix of carpeting, stone and tiled flooring.

Outside the house, the rubble has been cleared,

the garden has been tidied and re-turfed.

And look at this - a new double garage.

The materials we used was sandstone, which was all laid around,

which probably have come off the farm buildings that were once

attached to the house.

Nice recycling there, Dave, but I can't believe everything was

so straightforward.

What about that big crack at the front of the house?

We had it looked at and there was no problems there.

But it turned out that the guttering right around the whole house

was all leaking. A lot of water running down that wall,

which probably had caused the crack.

Well, that is a huge relief.

Dave and Tom seemed to have taken everything this property

could throw at them.

The boys have obviously spent much more than a penny on this

refurbishment.

The budget had allowed for £60,000 to £80,000,

the question is, did they stick to that or was it money down the drain?

I think we have come in at the bottom end of that, around 60,000 mark.

So we are happy with that.

I'm flabbergasted how well this has turned out,

more so that they managed to keep to budget.

Was that 18-month time frame realistic?

It was difficult to gauge because being an old house,

you come across all sorts of things that you maybe don't expect.

So the house has actually taken here longer than that.

It hasn't been full-time work.

Considering this was a part-time project,

I reckon getting finished in 2.5 years is pretty good going.

With Dave and Tom planning to sell the farm house, we asked two

local estate agents to come along and give us their expert opinion.

This is the first time I've seen the property

and the work has been carried out to a very high standard.

A great mix of old and new and a great finish throughout.

There is a very good demand for properties like this in the area.

I think we'll attract viewers

from both local and outside the area,

and I think demand should be very high.

The standard of the finish of this property is superb.

It is very high quality all the way through.

It is a listed building, so obviously,

you are kind of limited on things that you can do,

but overall, it is absolutely fantastic.

Oh, I do love the sound of happy estate agents.

This property was always destined for resale.

So, have Dave and Tom's 2.5 years

and a total investment of £170,000 been well spent?

I would expect to achieve £315,000

if this was placed on the open market.

If I was marketing this property, I would put it on the market

for offers in the region of £350,000.

That makes a potentially tasty profit, after the usual fees

and taxes, of between £145,000

and £180,000.

I was thinking sort of in the middle of those two values,

so, yeah, we are quite happy.

I take my hat off to Dave and Tom.

What advice do they have for anyone

taking on a project as scary as this?

You must do your sums correctly at the start and not...

not be overambitious.

We now return to a property we first visited in March 2013.

It is situated in the picture postcard village of Kingsand.

Well, on a day like today,

you are really not seeing Kingsand at its best because

when the sun is shining, this is an absolutely charming little spot.

17th century, traditional Cornish fishing village,

with meandering streets, charming houses and...

..you know, as much character as you could ever wish for.

And joy of joys,

the property I am here to see is actually a traditional home.

It is a two-bedroom cottage

at a guide price of £120,000 to £140,000,

which for Kingsand, I reckon could be extremely good value for money.

The only way to find out is to take a look inside.

Oh, there's a foghorn. It really is a ropey day.

Uf, glad to get out of that.

Well, here is a big bonus, especially on a day like today -

straight off the road into not a living room,

as you might have expected for this kind of cottage here,

but into a hallway, which means that at least, on a day like today, as I

said, you have somewhere to put your umbrella, your coat or whatever.

Your lounge is there.

It is looking a little bit in need of some tender loving care,

but some really nice original features -

that fireplace probably going back to the 1920s or whatever.

But a nice-sized front lounge. Down this very narrow corridor.

And then into your kitchen area.

I mean, it's a fairly traditional layout.

But the kitchen itself... A bit lacking in units.

But it is a nice size.

And again, given the facade of the property,

quite a surprisingly large space.

Something that won't be to everyone's liking, that is

the only bathroom and toilet in the property. Could you live with that?

I think you probably could. There might be space for it upstairs.

There is only one way to find out.

This Cornish cottage was ticking a whole lot of boxes for me.

I love this part of the world.

It would take a falling down wreck to put me off.

What have we got up here? Good-sized double bedroom at the front,

smaller-sized single bedroom at the back.

That whole bathroom question - is there space to move it up here?

I don't think so. I mean, possibly.

But for the sake of it, I would pretty much leave it where it is.

And again, really nice thing - some of the original windows.

And views, not of the sea,

but at least some interesting rooftops of Kingsand.

I was smitten.

Even on such a grotty day, the location had me.

But locations like this don't come without a catch.

The house is in a conservation area,

so what does that mean in terms of what you can do with it?

Well, it is not quite as restrictive, say,

as if it was a listed building.

What it is basically saying is that the area is of interest

in some way - historical, traditional, whatever it might be.

So in general, it is the exterior of the property that

the planners are going to be most concerned about.

And so things like changing the windows is going to be a big no-no.

Inside, you can do, hmm, pretty much what you want.

One thing you might want to do for sure inside is...

Change the heating system.

I love this.

This is an absolutely fantastically beautiful, original,

I think probably Georgian fireplace.

And in front of it, this charming

1970s, 1980s storage heater.

Brilliant. The fact that they put it in front of that...

# Why-y-y-y...? #

Why indeed. Some features like this fireplace are timeless.

The interior period features are part of the overall appeal

and need to be preserved.

Well, it obviously needs a bit of tender loving care,

but you cannot criticise the location.

This is a fantastic place,

either as maybe a holiday home or holiday let or somewhere to live.

So, who is going to do the whole room a favour

and bid 130 to get it going?

130, thank you. 130, I've got.

At 130. At 130, looking for two.

Not surprisingly, there was a fair bit of interest in this property.

The guide price of 120,000 to 140,000 was left far behind,

and bidders were still keen at 175,000.

7.5 on my right now.

178.

At 178.

179. 179.

180, let's find out. 180.

At 180. At 180.

181. 181.

At 182. 183.

183. 184.

Looking for five. We'll take a half.

But at 184 first time.

184 second time.

At 184 and done.

Sir, yours. Thank you.

The successful bid of 184,000,

44,000 over the top guide price was made by Mike and daughter Justine,

who seemed rather pleased.

# Somewhere beyond the sea

# Somewhere waiting for me... #

I met Mike and his other daughter, Sarah,

at the property to find out the plan.

Sarah, Mike, great to meet you both.

-Hi.

-Hi.

-Congratulations.

Tell me why you wanted to buy it.

Well, Sarah lives in the village.

And this was really bought so that my wife and I can come down

and spend some time in the village with the grandson.

But also our youngest daughter, Justine, used to

work in the village, and she is keen to come back here at some stage.

-Right.

-It may well be that sometime in the future she will move in.

-So there is a strong family history with Kingsand.

-Yeah.

-Well, we've been here about 20 years.

-Wow.

-Yeah.

How will you decide what is going to happen?

It sounds like Justine is going to have the most powerful influence

-over what happens.

-We have a committee.

Ah, committees, sometimes they work and sometimes they don't.

I had a feeling, though, that Mike, who used to work in building

supplies before he retired, would be on top of this refurbishment.

And to prove it, he had a priority that often is overlooked.

The plan is the EPC certificate for this property is quite poor,

-it's an F.

-So that's the energy performance.

-That's right,

it's an F, which is just one step up above from the bottom.

So the plan is to obviously make it more energy efficient.

I'm looking to replace the windows as well.

Currently, they are single-glazed sash windows.

I'm looking to replace them with double-glazed sash windows.

How difficult are they to source these days?

Well, I did contact the local authorities to see what the

rules and regs were, whether I could replace the windows under

planning...under building regs or whether I would need full planning.

So it may well be, if it is going to be difficult,

-I'll actually use secondary glazing.

-Right.

-On the inside.

Which is normally used in conservation areas

and on listed buildings.

When the weather is like this,

a well-insulated home is obviously desirable.

But there was something else I was keen on.

What about floor coverings, then?

Cos I'd love to see what is under the carpet.

I bet they're beautiful floors.

I'm going to take the carpets off upstairs and down the stairs as well.

If they're in good condition, then obviously we may well buff them up.

Mike had a two to three-month timescale

and a budget of 20 to 25,000.

When we first returned in November, 2013,

things had definitely moved on.

But Mike hadn't quite managed to finish the renovations.

The structural work had been done,

but the public areas were still to be floored and decorated.

By-fold doors had replaced the kitchen sink

and a new kitchen had been created.

This was originally the bathroom.

We've extended it behind me about a metre and put this new

kitchen in, which will have integrated appliances shortly.

Then through here... This originally was the kitchen.

We've knocked a hole through between the kitchen

and the lounge to make it a lounge-diner,

so I think this now complements the property very well.

One of the issues with this cottage was the downstairs bathroom.

I didn't think there was anywhere else to put it.

But Mike managed to get two en-suites up here.

Amazing!

And while he managed to get all the mod cons you could ask for,

they maintain the cottage's old world charm.

From the outside, it is a pretty little cottage,

and it is just going to be really nice.

It is going to be lovely and warm and cosy.

It is just going to be a really nice house to live in.

And I was delighted Mike dealt with the cottage's poor insulation.

The building has been completely replastered. New ceilings.

The floors have been repaired, insulated.

And the external walls have also been insulated internally as well.

All very impressive,

though Mike's plan to replace the single-glazed sash windows

with double-glazed sash windows fell through,

as the conservation officer insisted on the original windows remaining.

So they were duly refurbished.

Mike's team of local builders did the majority of the work.

But at this point, Mike hadn't exactly been sitting back.

So with the work not quite complete,

I wondered how the committee idea was working out.

I think the committee worked quite well, which was comprised

of myself, my wife, Justine, my youngest daughter, and Sarah.

But at the end of the day, I had the casting vote.

Yeah, we said how we liked it and then he went ahead

and did what he wanted.

Join us later in the programme to see the Cornish cottage

in all its glory, thanks to the family committee.

Well, after the work has been done,

those properties should be worth a lot more money.

Did it take them a lot of time? Were there troublesome delays?

Let's go back and find out.

It is back to the centre of the tennis universe.

We are in Wimbledon, where earlier,

we saw Steve and his family bid a massive 1.2 million on this

property, sitting smack bang in the middle of the borough.

# It's a family affair It's a family aff... #

Spread over three floors, this former beauty salon

had many potential uses.

But Steve, his brother and four cousins

had a family tradition to uphold.

So, as a little boy, you grew up in restaurants,

-washing up out the back?

-Never a Saturday off, never a Sunday off.

We've had a look and there is no sort of fish-bar restaurants here.

Upstairs, the plan was to create at least four two-bedroom flats,

depending on planning approval.

And Steve was looking to expand out and up to create even more space.

We are hoping to get another floor within this building.

So, you know, four by two bedroom is the minimum.

A fish restaurant on this busy street could be a great

addition to the local menu and with two-bed flats in high demand

in this area, it could be an extremely profitable venture.

Eight months have past since we last spoke to Steve and we're

meeting up again to find out how this family affair is shaping up.

Now, I know what you are thinking -

"This place looks a lot worse now than it did then."

Despite appearances, work has actually progressed on this build.

But it looks to me like Steve's six-month schedule

has slipped slightly.

Yeah, the planning process we had to go through with the restaurant

was quite difficult. We had to have change of use.

Before it was a retail outlet and, obviously,

we needed A3 use for the restaurant,

and also take away.

And also, we had to apply for a premises licence,

which allowed us to sell wine and beer.

As far as upstairs goes,

a pre-planning application has been submitted.

Once the council have responded,

the architect will draw up an appropriate design.

In the meantime, they are renting the upstairs space as bedsits

through an agency for £25,000 a year,

which is bringing in some income.

So all focus for the moment is on the restaurant downstairs.

We did start off that it was going to be a fish and chips,

but now we've dropped the chips out of the name because

we actually want it to be a fish restaurant

doing fish and chips.

Fish with or without chips, either way, I can't wait to book a table.

Looking around, it is difficult to imagine what the restaurant

will eventually look like.

But thankfully, Steve has a clear plan in mind.

This is the space that we have got to work with,

and we're going to divide the whole restaurant, half of it being

the cooking and the other half of it being the seating area.

To the left of me, there will be all the fish ranges, the grills,

the chefs working.

And to the right-hand side will be all the booth seating.

And in the front area, it's going to be high-level seating.

Also, we are going to divide the shop front,

where part of it is going to be for the take away.

And there'll be a counter where they'll get served

to take their fish and chips home.

The plans are impressive and I love the idea of that open cooking area.

As you can imagine, finding a design that six partners can agree on,

well, that can be tricky, so how did they manage?

There was six of us involved, everyone had different ideas.

And of course, we are restaurant people, they are designer people.

So after discussing with the cousins,

we decided that we'll leave the food and the menu to us

and let the designers get on with designing the place.

It will be nice to see when it is finished.

All trace of the former beauty salon has been removed

during the strip-out.

But after all, beauty is only skin deep.

However, look a bit deeper underneath

and you never know what you might uncover.

It is such an old building.

We found a river going beneath the floor in here.

I've heard that there's not a lot we can do. We just cover it up

and it's a stream that goes along underneath the building here.

But it was a shock when we first saw it.

# Black river... #

Now that's what I call a water feature.

We know estate agents are an imaginative lot,

so we asked two property experts

to visit the premises,

gaze into their crystal balls

and tell us what the future could hold for Steve

and the family business.

This property was bought at auction for a cool 1.2 million.

Steve has a firm price of 220,000 to fully fit out the restaurant.

Add to that an estimated half a million pounds to convert upstairs

to flats, and the total price is not far off two million quid.

That buys you a lot of fish and chips.

But is it a wise investment?

We would suggest that a sensible figure

for the restaurant, once it is up and running,

in terms of a sale price, would be in the region

of £750,000.

And if the boys decided to lease it out?

The rental value of the property would probably be in the region

of £45,000 per annum.

That could give a capital value in the region of £750,000.

I think that is a lot less than what I had estimated.

If we were to let it out, I'm sure we would get in excess of £60,000

and we would be looking at sort of 850 to 900,000 for a sale.

Well, it's clear,

Steve doesn't think much of the estate agents' fortune-telling.

The partners have decided to concentrate on the restaurant

for now. But once that is established,

they will turn their attention upstairs.

The plan is still to develop four two-bedroom flats.

The estate agents estimated a rental income

of approximately £1,500 per calendar month for each of these.

That would mean a yearly income of 72,000.

But what could the flats sell for?

I believe a two-bedroom flat would probably fetch in the region

of £425,000.

We would anticipate a two-bedroom flat in this area selling

for in the region of £475,000.

That top valuation would mean a total sale price for the four

flats of 1.9 million,

which could match also exactly

the cost of the purchase and refurbishment.

I would imagine, when it is all set up and everything is up

and running, I'd expect the value to be around two million.

By then, I would have expected we would have paid about 1.8.

So hopefully,

we get some expenses back and we'll have the shop for free.

I reckon Steve and his brother

and cousins will be happy with that result.

# No fish today. #

Fish might be off the menu for now, but we'll be back to see

if this place is serving up a healthy profit.

# No fish today. #

We return now to see the end of our other family project here,

in Kingsand, in Cornwall.

Back in March 2013,

we met Mike and daughter Sarah.

Mike bought this cottage at auction for 184,000.

The house was in need of updating, but was full of period charm.

Tell me why you wanted to buy it.

Well, Sarah lives in the village

and this was really bought so that my wife and I can come down

and spend some time in the village with the grandson.

But also, our youngest daughter, Justine, used to

work in the village, and she is keen to come back here at some stage.

-Right.

-So it may well be that some time in the future, she will move in.

-So there's a strong family history with Kingsand, then?

-Yeah.

-We've been here for about 20 years.

-Wow.

-Yeah.

Mike had a budget of 20 to 25,000

and a timescale of two to three months.

But when we returned eight months later, although the structural

work was done,

the cottage still wasn't finished.

Obviously, we were going to do

the renovation within two to three months, originally.

But because of the changes that we decided to make,

we needed to get plans drawn up.

We then needed to get building control approval.

And all that really wasn't finalised for about four months.

And the builders have only been on site just over two months.

So, the last two months we have done quite a lot of work.

It is now almost 15 months since we first met Mike and Sarah,

and we have returned to see the finished cottage.

# It's been a long time

# But now we've come home

# It's a fine thing to travel

# But now we've come home. #

The transformation is fantastic.

Mike and his family have done an amazing job of updating

the property without losing its cottage character.

Since you were last here,

the property has been completely repainted.

The patio area has been completed with patio slats put down.

I've painted the wall outside.

When I first came to this property, I was really keen to see

what the floors would look like once the carpets were jettisoned.

And the wait has not gone unrewarded.

The key thing, I think, which has really finished

the property off quite nicely is the floors.

The floors have now been sanded.

So it's wooden floors downstairs and carpets upstairs.

The finish really is lovely.

And how does Mike's daughter, Sarah, feel about it?

It has got a feeling of spaciousness

and it is very light, which is quite unusual

because they really are like old cottages squished in together.

I think especially knocking down this wall

and with the sliding doors, it has really made it look open.

When we last came to see Mike,

his original budget of 20,000 to 25,000

had become 34,000, merely only

because they had decided to make bigger changes, like the en-suites.

So what has been the final spender?

Well, I think, at the end of the day,

with the painting outside now in the patio area,

we spent around 36,000.

Well, they've spent time here and moved all their furniture in,

but now there are bigger plans afoot.

We've currently got a house in Somerset on the market and we are

offering that with no onward chain

to try and achieve a reasonably quick sale.

If we do sell it, we then move here for a period

to look for somewhere bigger in this area,

and then probably either sell this or rent it out.

With a potential sale or rental in the cards,

we invited two local property experts around to see what

they thought of the cottage.

The property in its current format looks absolutely amazing.

I really do like

and love, in fact, what they've done to it.

The kitchen works well, having obviously gone

into the extended outbuildings.

Going upstairs, you've got some hidden en-suites

which are really clever, so it utilises the space perfectly well.

It is a really nice home.

I think the standard of finish is really good.

I think it is finished to a very high standard.

I really like the decor. It is modern,

but it still retains the character.

This property is going to appeal to a wide marketplace -

people looking for a holiday boat home, people looking just for

a small lock-up-and-leave unit, travelling or commuting to the city.

It really works very well for everyone.

Mike bought this cottage for 184,000

and spent a further £36,000 on renovations.

What sort of return could he expect if he were to rent it out?

I think this property could rent for between £750

to £850 per calendar month.

In the current rental market, the property would achieve

somewhere between £775 and £850 per calendar month.

Your long-term rental figure, that's quite a good figure.

Possibly we will be interested if we decided to rent it,

but at the moment, we haven't decided.

Even the lowest figure would give Mike a yield of almost 4%.

He has spent a total of £220,000 on the property,

what do our experts think it is worth now?

The property would resell for somewhere in the region

of £300,000.

I think this property could resell for £300,000.

300,000 is in the ballpark figure.

Funny enough, we had it valued two weeks ago, and the figure was 325.

But obviously, at the end of the day, it is what someone will pay for it.

-But we are happy with 300.

-Yeah.

If he were to sell it for £300,000,

Mike would have made a profit of £80,000 before taxes and fees,

so has this helped him make up his mind about what to do?

I think in the future it's really just see what happens.

It really depends on whether we sell our property in Somerset

and at what figure it goes for.

And then it depends on what we buy locally.

It may well be that we have to sell this to fund another property

or it may well be that we'll then rent this.

But it's not decided at the moment.

And now for the big question,

how did the renovation by family committee actually work out?

The committee worked very well.

-I listened to everyone's views and did my own thing.

-Aw.

That's what he's saying.

I think, to be fair,

it was good because initially there were ideas of keeping the bathroom

downstairs... Because it is what it is, it is a two-up, two-down.

But then the more people that came...

And that was just neighbours and

nosy people as well, people who just turned up, everybody had opinions.

And actually it was quite good cos then the project started to evolve.

So it was quite good to listen to other people's opinions.

-But, yeah, still do what you want.

-That's right.

That's right, Mike, THAT'S how to run a committee.

Well, we will have plenty more property auction stories

for you next time - some with happy endings, others...

possibly not so.

And you wouldn't want to miss any of them,

so make sure you join us next time for Homes Under The Hammer.

-We'll see you then.

-BOTH: Goodbye.