Episode 43 Homes Under the Hammer

Hello and welcome to the show. Whether you are a seasoned developer

or a first timer, buying property at auction can really pay off

as an investment.

But as Martin and I know, it is not easy money.

You've got to be prepared for anything to happen.

Yes, and you need to know what you're doing.

And learn from the professionals. That's where Lucy and I come in.

One thing I love is finding out exactly how people

-bought their homes under the hammer.

-I do too, Lucy.

Let's find out what properties people bought on today's show.

The buyer of this Cornwall farmhouse can enjoy surf and turf.

THAT is what somebody is going to buy this house for!

And in London, this two-bedroom flat

leaves you plenty of room to breathe.

Really, it just feels enormous!

But if it's even more space you're after,

this Georgian house in Kent has it.

This place is just vast. And echoey.

-ECHOING:

-Echoey!

All of these properties have been sold at auction

and we will find out who bought them and what they paid for them

when they went under the hammer.

Sold to the gentleman.

MUSIC: "Wipe Out" by The Surfaris

I've come to the absolutely beautiful north coast of Cornwall,

in the village of Porthtowan, where the beaches and ideal wave

conditions have long been a draw for surfers and holiday-makers alike.

Well, just a few miles from Porthtowan,

you find yourself in what feels like the middle of the countryside.

It's called Towan Cross. I'm here to see this. It is a farmhouse.

Three bedrooms. Has a guide price of 170,000 quid.

You don't get the farm with it,

but you are surrounded by beautiful, beautiful views, so who cares.

Let's take a look inside.

I guess we are hoping for big, old beams and a farmhouse kitchen.

Well, let's see what we find. Useful little porch area there.

Something to keep the cold and the noise from the road out.

Although it's not particularly busy. Little entrance hall here.

Could do with a coat of paint.

Living room area on that side.

No central heating by the look of things.

You've got that wood-burning stove.

'As you would expect from this sort of traditional house,

'on the other side of the hallway there is another front sitting room.

'But that's where things get more unusual.

'A corridor leads out of the second sitting room to the

'back of the house and the kitchen.

'And then it's through the kitchen to the downstairs loo.

'Quite a strange layout.'

# Ain't it strange

# Ain't it strange

# What some people will do

# Ain't it strange

# Ain't it strange

# What some people will do... #

Oh, well, not quite the huge farmhouse kitchen I was hoping for.

But it's not a bad sized space.

Certainly at this end,

the units look like they've been reasonably recently replaced.

So just give them a bit of tender loving care

and I think you could use these. All in all, not bad.

But by far the best thing about this kitchen is the view. Wow!

# And here we are... #

Looking the other way, the view of the consumer unit is less appealing.

It's a modern one

but some late additions to the wiring are decidedly dodgy.

There is certainly no flow to the layout,

so plenty to think about downstairs.

But what about upstairs?

Straight ahead is the smallest bedroom.

Then, along the hall, there is a good-sized second bedroom.

And finally, what I think is the master,

showing some worrying signs of damp and other oozing issues.

Ew!

So, upstairs, three good-sized bedrooms but no bathroom,

so that's not ideal.

I definitely want to play around with internal configuration up here

to try and get a bathroom.

Maybe even consider some kind of extension to sort out that problem.

While you are at it, sort out this problem too.

Up here, obviously some signs of damp.

My guess is it's penetrating damp.

We are in a very exposed position here so probably wind

and rain driving in through the walls.

One of the disadvantages,

I guess, about being out in the middle of nowhere.

Get that sorted out, get some kind of rendering on the outside sorted

and that would go away. All in all, a few things to do.

At the rear of the property, THAT is

what somebody is going to buy this house for.

Fantastic. You can actually even see down to the sea.

Feels a bit confusing at the moment which bit of this land you own.

Your solicitor would definitely have to check that out.

Something else they might want to look into is which

bits of the various hotchpotch extensions that the house has

obviously had over the years have actually had planning permission.

Again, your solicitor should check that out or you must read

the legal pack before you buy it.

Although the views are fantastic, the balcony

and staircase look a bit rickety to me.

The roof, at least, has been redone.

So the drips on the bedroom ceiling tiles should now be

a thing of the past.

But with things like these I always recommend a structural survey.

We asked a local agent who knows the property to come and have a look.

The farmhouse was essentially the homestead to a modest farming

enterprise hereabouts.

It dates back to around 1800s.

It doesn't have fields and stuff with it now.

But it has a small garden area that happily is getting

the views of the coast from the rear, which is the major hook.

The local beaches are really well thought of by the surfing community.

Especially those who don't really feel the need to have the

hubbub of Newquay around them when they are enjoying their sport.

So, ideal for a surfer,

but would it have to be a surfer with building skills?

There are signs of a bit of structural movement.

Particularly where the single-storey extension, where we stood,

is joined to the house.

There is a look of it perhaps not actually being joined to the house.

But, assuming that that was put right and the house was refurbished to

a high standard, what could the new owner expect in the rental market?

The property would let out at approximately £650-£675

per calendar month.

If the house was refurbished and put up for resale,

how much could it fetch?

The resale value of the property,

making the very best of what's here already, would be £285,000.

And what would adding a large extension at the rear

of the property do to those values?

If extended to give a four-bedroom

lovely house, great views, blah-blah,

you could be looking towards £350,000 in value,

but I don't think quite.

On the rental front,

that great big house would probably achieve £750 per calendar month.

A few planning issues to clarify, but apart from that,

I think you have a fantastic opportunity here.

It's a great house in an absolutely gorgeous location.

Let's find out who fell in love it when it went under the hammer.

We move on to lot number two. Starting the bidding at £150,000.

150. 150. £5,000. 160 it is here.

£160,000. 165. I can go 170.

You're out. 175 at the table.

180 I have. Any advance on 180?

182, sir?

182. 182. 184. I need 186, sir.

I've got 186. £186,000 at the table.

188. Go 190, please, sir.

190. Still at the table at 190.

192. 192. I need 194, sir. 194. 194.

At £194,000. I'll take 195.

Need 196.

197. Go 198.

198. 199. Go 200. Got £200,000.

Seated at the back of the room, not in front of me.

£200,000. Any advance?

It's yours at the moment, at the back of the room, at £200,000.

Looking for 201.

It's got to be worth 201. Someone?

Finished at £200,000.

BANGS GAVEL

Sold to the gentleman right at the back of the room.

Congratulations to you, sir.

In actual fact, the gentleman at the back was bidding on behalf

of his son, Steve, who is now the owner of his dream house.

I met up with him back there.

Steve, lovely to meet you. Congratulations. Hi, thanks.

Tell me why you wanted to buy this place.

This place is actually in exactly the right spot for me.

All my life I've been really interested in surfing.

It's been a big passion of mine.

To be able to live up here and have a project for myself over

the next year or two is really quite exciting.

-What is it about surfing that you like so much?

-The challenge.

Sense of achievement.

Sometimes the ocean can be quite a force to be reckoned with

and it's the challenge of meeting that

and sometimes sneaking away with the odd crafty wave

that you thought was going to get you, but you actually avoid it

and you come out with a smile on your face.

OK. So why this house then?

I'm by the sea and that's where I want to be.

With the elements, the water and that wind.

Looking forward to a good buffeting.

So the idea is to do it up by yourself and live in it?

Yes. Yes.

Hopefully, fingers crossed, I'll be moving in almost straightaway.

# It's a genuine fact that the surfers rule... #

Steve has already purchased and renovated one property.

And the recent sale of that property has allowed him

to move on with this purchase.

Steve is very practical and works at a concrete production company.

# It's a genuine fact that the surfers rule... #

So, what are you going to do to sort this place out?

I've got some kind of penetrating damp issue upstairs.

First, I need to ascertain if I need to stop

and seal anything coming through or whether that's old damage

that's just not been treated internally.

I'd like to come through the bedrooms upstairs.

Generally coming through with a brighten up, freshen up,

new floorings, new timbers, that can have thing.

-What kind of timescale have you got?

-Probably about 12 months.

Possibly trickling over that. Because it is just me on my own.

I could come home from work and do five hours' work.

But I'd probably last until about Thursday on the first week

and I'd just be asleep. It would be too much.

What about the budget for the work that is going on?

That's going to be kind of an ongoing thing.

I've really not got a lot of funds sat now.

Now I've purchased this house,

it's pretty much all my eggs in one basket.

I don't know what it's going to cost in the end.

I'm estimating to spend probably a further 20,000,

maybe 25,000 on developing the house.

This is the second house you have owned.

Can you see yourself being here for a long?

I could see myself being here for a good, long time.

I've got no real need to be anywhere else.

No real want to be anywhere else.

It's really where my heart has been for quite a lot of years.

Listen, congratulations, well done. Good luck with it all.

-We look forward to seeing how you get on.

-Yeah, thank you.

Well, a house overlooking the sea. It's a dream for Steve.

And how fantastic that he has got this place.

However, I am a little bit concerned that the amount of effort

and time it's going to take to sort it out means

he might not have as much time for surfing as he might like.

You can find out how he gets on sorting this place out

later in the show.

If you're not looking for a remote seaside retreat,

maybe Chingford, right on the edge of East London, is more your style.

Only 30 minutes by train into the city,

Chingford also boasts a cast of famous characters.

The Kray twins are buried here.

TV personality Alan Davies grew up here.

Winston Churchill was a former MP.

And former England hero David Beckham also hails from Chingford.

It certainly has star quality.

Let's see what star property was up for auction today.

I know it's a two-bedroom ground floor flat,

with a garden and garage.

All for a guide price of £195,000-plus.

It's up this pretty planted flowery path. Oops.

The good news with this flat starts before you even step in the door,

with this beautiful garden.

The leasehold property has a ground rent of £250 per year,

but it comes with brand-new 143 year lease.

You get this big garage space.

And round the back, there's even more garden.

Perfect to stop and smell the roses.

# Oh, wow

# Look at you now

# Flowers in the window

# Such a lovely day

# And I'm glad you feel the same... #

Corridor! Very long indeed. Love it!

What these properties, in character, usually lack,

they definitely make up for in space. Look at it.

A bit peachy, but we can remedy that.

We've got a nice sized room behind me.

Along the corridor, storage heaters,

so there is obviously no gas central heating in here.

A huge storage space there. Really big.

You've got a nice bedroom. Bit dated. You need to change that.

Fantastic bathroom. Even the tiles I would keep in there.

And the sitting room. Look at this. It's enormous.

Beautiful square room.

Again, you'd need to sort some of the colours out.

The carpets could do with a change. There's a few bugs in the corner.

I think there might be a bit of an infestation underneath that

carpet there. I'd certainly have a look and see what's causing that.

But, you know, there is a little fireplace here.

You could change it, you could keep it, you could paint it.

Doors leading out to a very pretty garden.

What's not to like?

It's all rather good, isn't it? That's all I can say.

This flat could be really something.

But it does need freshening up and redecorating.

Whoever buys this will need to strip out these old units

and fitted wardrobes.

But once you've done that, this is a really great space.

You know, this is the kind of flat that you could have

all your mates over and you wouldn't know they were here.

Really, it just feels enormous.

And I'm going to say something that I've very rarely

say on Homes Under The Hammer, I wouldn't knock this wall down.

Oh, no! I think I would keep this kitchen contained as it is.

There is quite a lot of wasted space as well.

Get rid of the old tank here. You could have a combi boiler up there.

That would free up all this back wall.

You could put some nice kitchen units in its place.

It's all looking a little tired as it is, but with a little bit of a

modern update, bit of money spent in here,

it could be a really great kitchen.

Lots of space inside and lots of space outside.

Let's see what local property expert thinks of this blooming

marvellous property.

First impressions of the property, generally pretty good.

It doesn't need too much work to bring it up to a good

standard for either resale or lettings.

It's a good location. It's a ground floor

so it's going to appeal to quite a large clientele database.

Either the investor market for rental or first-time buyer market,

looking to get onto the ladder.

With regards to work that needs to be carried out,

generally there's not too much. It's just redecorate throughout.

The only issue that someone possibly might want to change would be

putting in gas central heating, if there is gas plumbed into it.

It has electric heating and generally people would sooner have gas

central heating rather than electric.

I think, with regards to refurbishing it,

it doesn't need an awful lot of money.

I'd say no more than 5,000 as a maximum price.

Maybe not even that amount. Once refurbished,

the property will be worth a value between £270-£275,000.

For the rental market,

the property would be valued in the region of £1,100 per calendar month.

This is a great site.

Straightforward make over by the looks of things.

And I think it's good for a first-time renovator or

someone looking to get this property just turned around quickly.

But buyer beware - the properties that don't need a lot done, they

are sometimes the ones that tend not to have too much profit margin.

Budgets have to be kept tight.

Let's see who wanted to give this property make over

when it went under the hammer.

Two bed ground-floor unit. Sole use of a rear garden.

Plus you have a garage. 250 on this.

250. 250.

Not going to go below 180. 180.

180 with you. 185 behind.

190. 195.

200 with the denim.

205. 206.

207. Lost you. 206. New spot.

207. Well done.

208.

208?

208 on my right? 207 with you. 207.

First-time. 208 on the front. 209.

210.

211.

212.

213.

214. 215.

215. 216.

You haven't bought anything yet.

Blimey. You're not going to get anything this way. 216.

You've got to go a bit more! 217.

218.

218.

217 at the back.

218 elsewhere?

218 you spot. Well done. 219.

In the front. 220?

Round it off? 220?

221 anywhere?

If not, 220. Have you all done?

Sold. 220. Well done.

The successful bidders, at £220,000, were Zeki and Hassan.

# It's a family affair... #

This father and daughter duo are part of a family company.

I went along to meet them, to find out their plans.

Zeki and Hassan, lovely to meet you both. Congratulations.

You have only just seen the property today, now, haven't you?

-Yes.

-Yes, that's right.

So you bought this, without even viewing it, on auction day?

We viewed the outside but we weren't able to view the inside,

unfortunately, before the auction. It was a bit of a risk.

What is it like? Now you've seen inside, what do you think?

Are you happy?

Yes, I'm quite happy. Only the kitchen needs a lot done.

-And the sitting-room.

-We have been lucky.

On the day of the auction, we had a list of properties that we did

go and see but we weren't able to get any of those.

This was the one that was meant for us.

Why have you bought this? Is this a development for you?

Are you bought property developers? What's the story behind this?

Basically, about two years ago we had a bit of a family meeting

and decided that for the future, my dad is obviously getting older

and he wants to leave something for his children.

So my brother, sister and I decided to all get on board

and invest our money into buying and selling property.

So this really is a family venture?

That's right. Yes, it is.

What's your involvement going to be?

Or are you just going to be there for advice?

Some advice and a lot of work doing. I'm going to do all the work.

Some you are quite a handyman, Hassan?

-I am, yes. I am.

-What is the plan with this property?

Are you looking to rent it out or do it up and sell it on?

The initial plan is to do it up to a good standard and sell it on.

Depending on what the valuation will be and the market,

we either sell it or if that's not an option, we will put some tenants in.

How much are you going to spend on the renovations here?

What do you think, Dad?

I would say we're going to need about 8,000 to spend in here.

There's no central heating. Some of the wiring will need changing.

And the flooring.

I think we need 8,000 for that.

I'm thinking you might spend a little bit more than you

-guys are thinking at this stage.

-Oh, no.

-We are not going...

-I mean, I'm in charge of the money.

-She's in charge of the money.

-Even if I go beyond eight...

-He will have to pay.

Yeah, she's not going to pay.

So I'd rather go under eight than over eight.

Originally, we didn't really want to spend more than 5,000.

Even the fact we've gone up to eight is an increase.

So that is it, you will not be spending more than £8,000?

-No.

-No.

-Less but not more.

-So how long is it going to take you?

-I'm hoping...

-Three months.

-..Two weeks.

What?!

Two months, two weeks!

Look, two months, I'm not going to be out of work for two months.

-I know, but...

-No, no, no. Two weeks.

He is optimistic, I am realistic. We will go with two months.

-Optimistic, realistic, pessimistic?

-No, no, no.

I'm an optimist but he is a bit OTT with that.

Realistically, dad...

-Realistically, two weeks.

-Two months.

I love it! Two weeks, two months. Oh, what's it going to be?

-I will get two weeks off from my work.

-And you won't stop?

And I won't stop. I'll come here.

Obviously I will get some help as well.

I'll finish it in two weeks.

# Potato, potahto

# Tomato, tomahto

# Let's call the whole thing off... #

Two weeks or two months, well, I'm sure they'll work it out.

But there is still one thing that's bugging me.

You've got a few little bugs in the lounge area, on the floor

and all around the carpets. What do you think that is?

I think it's from the carpets. There is some stain on the carpet.

I don't know exactly what it is but that stain

has got all the moths coming in. But nothing to worry about.

It's nothing to worry about. That carpet. The carpets are going to go.

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

-BOTH: Thank you.

-So lovely to see you.

-And thank you.

This property may have been a bit of a last-ditch effort to buy

a property that day, but Zeki and the family company, well, they may

have just got away with it and found themselves a nice, easy renovation.

The question is, will it be two weeks or will it be two months?

You can join me later in the programme to find out what happens.

Still to come...

In London, how to be right and wrong at the same time.

It was nice to both be wrong by the same degree.

And in Faversham, the buyer takes a relaxed view to renovation.

The thing about a house like this is, it's never really finished.

# Catch a wave and you're sitting on top of the world... #

Back now to the North Cornwall coast and the hamlet of Towan Cross,

close to one of Cornwall's top surfing beaches.

Earlier, this three-bedroom detached farmhouse was bought by surfer

Steve, as his perfectly located dream home, for £200,000.

His plan, to move in and restore it bit by bit.

All my life I've been really interested in surfing.

It's been a big passion of mine.

So to be able to live up here and have a project for myself over

the next year or two is really quite exciting.

-What is it about surfing that you like so much?

-The challenge.

A sense of achievement.

But due to unforeseen legal issues,

the property was unexpectedly withdrawn from sale.

Three years later, we are back to pick up the story.

The house was actually put back onto the open market,

this is post-auction, the hammer had gone down and I'd signed my deposit.

And I was very excited about the prospect of having my project

and my new home, getting in there and getting stuck in.

Eventually Steve did manage to purchase the property,

but at a higher price. £210,000.

£10,000 more than his original bid.

But, in doing so, Stevie used up all his restoration funds

and his problems were only just beginning.

I was told, when I purchased the property, that a surveyor had taken

a look at the place and actually told them it was worth £1.

There were subsidence issues with the house.

The gable end wall and chimney were parting company

with the rest of the house.

With the property un-mortgageable and without a budget,

Steve was in a very difficult position.

I was pretty shocked and frightened by the surveyor's report.

But I really believed in myself and what I could see.

I believed I could fix the problem without too much grief.

Steve erected scaffolding and decided to backfill the wall's cavity,

from foundation to roof. No small undertaking.

I really had to open up the wall, possibly a 3 feet wide cavity,

and backfill everything.

Dropping a new chimney flue down at the same time.

That's to stabilise the end of the house, basically.

There was a risk that the house could fall down.

I was fully aware of that.

That, thankfully, seems to be holding nicely.

Everything feels safe.

Having stopped the house from falling down,

next Steve decided to deal with the damp.

But with no money for specialist trades,

and having to buy materials piecemeal, there were no quick fixes.

Almost three years of living in a house with an ingress of water.

Water actually coming down the walls during storms.

I actually ended up with pneumonia,

which put me in a bit of a mess for a while.

But when I thought I was going to fail, somehow I kept going

and it's made me more confident as a person.

I'm less concerned about the opinions of others.

And judging by the results,

Steve has every right to have a new-found confidence.

# Cos I know that I can

# I know that I can

# I might wait a lifetime

# To make my lifetime plan

# It's better late than never

# I'll do all I can

# And I know that I can

# I know that I can

# Cos I know that I can

# I know that I can... #

Steve stripped some of the walls of plaster and repointed the

underlying stonework, to make feature walls throughout the property.

But inevitably, the lack of funds has curtailed his plans to expand

and move the bathroom upstairs.

But a quick paint job can make a lot of difference.

It may have taken almost twice as long as anticipated, but the work

and care that Steve has invested in this property is clear to see.

And it's something that even the passersby have noticed.

One lady in particular stop and said, "Could I just comment on how

"nice it is to see this house getting some love."

That was enough for me.

Steve certainly did pour love, as well as his heart and soul,

into this property.

Let's see what two local estate agents make of all his hard work,

and if the £210,000 purchase price, plus the £8,000 that Steve

estimates he spent on renovations, will bring him a well-earned return.

He still has to complete the lounge

but what sort of rental figure could he expect once that's done?

Roughly £700-£750 per calendar month

would be your short, medium to long term rental.

In the rental market,

I'd be looking at achieving £950 per calendar month.

Taking the average, that would give Steve a 4.6% yield on his investment.

I think that's probably where I'll end up heading,

putting the house into rental and taking a holiday.

Out of interest, if Steve was to resell?

You're looking at around £300,000 as being the cake.

There is a bit of a thing that you could generate

by doing a few odds jobs.

For resale, I would be looking at a value between 280 and £290,000.

Again, taking the average, that would give Steve a potential

profit of £74,500, before the usual fees and taxes.

That's much better than I would have expected. Very happy with that.

Very happy with that.

Although I still don't think it would sway me to sell the place.

As I explained, it really does feel like home.

I would really like to maybe raise a family

and enjoy the space where I'm at.

And maybe give my children the life that I've had.

Just have a happy time.

With a renovation story like that, Steve, that sounds like a great plan.

I'm in Faversham in Kent, one of England's most charming

and historic market towns. A great commuter town for a London.

Faversham is a lively place with an active community life,

plenty of clubs, societies and events,

and the town centre boasts many independent shops.

In the late 19th century, Faversham was the main centre

of the explosives industry of the UK.

The first gunpowder plant was established here

in the 16th century.

Let's hope this property gives us some bang for our buck today.

Now, the properties along here are mostly terraces, as you can see.

But oh, no, not the one I'm here to see.

It's this rather substantial Grade 2 listed building.

It had a guide price of £220-£225,000.

Intrigued? Follow me inside and I will tell you more.

# More, more, more

# How do you like it? How do you like it?

# More, more, more

# How do you like it... #

I do like it, although the outside does look a bit tired,

with a few cracks in the plasterwork.

A quick peek around the back

and you can see that there is a new extension.

Yep, there's more to this place than you think.

OK, this is what you call a hallway.

Wow! Look at that beautiful arch!

Although it does feel very clinical, it's got that commercial feel

to it, there's lots of strip lighting everywhere.

That's because it was previously used as a youth centre.

This place is just a vast and echoey. Echoey.

-SOUND ECHOES:

-Echo!

Brilliant.

It looks as though somebody has already started the work here.

Look at these beautiful original sash windows.

They are just my favourite style of window.

And the further through the house you go,

it's just feels more commercial.

I mean, you've got more strip lighting under this office style

area at the top here.

Kitchen, it's a bit weird. You've got yellow woodchip wallpaper.

This is where, it's just feels to me

as though I've been transported back to my old secondary school.

It has a corridor feel to it.

This is where the original part of the house and the new part meet.

We've got a couple of loos over here. Some other redundant spaces.

What do you think this room is going to be?

Ta-da! A sports hall, of course. It's massive!

If you thought that room was echoey, listen to this!

SOUND ECHOES

But I'm sorry. I need to just quickly do something. Bear with me.

Oh!

# Slam dunk the funk Put it up

# If you got that feeling

# Slam dunk the funk... #

Oh, all right. I don't think I'm going to be signing with the

Harlem Globetrotters any time soon.

But this place scores in every sense.

It is huge, and with D1 business classing,

it has plenty of commercial options.

On the rest of the ground floor, you even get a lift too.

Two bathrooms and three more good-sized rooms, all of them

screaming potential.

But they do require such a lot of work

so any buyer had better be handy.

Now that is what you call an arch window.

Look at that, it's magnificent!

Sadly, you have to look out onto that sports hall with the asbestos

roof, but you can't have everything.

Up these steps and you've got an amazing landing space.

Again, exactly what you would expect in a house like this.

All the rooms leading off have just got amazing proportions,

lovely ceiling height.

They've all got the original sash windows.

Then through here, into the room at the front of the building,

and there is just so much light coming in.

Quite interesting because you can see somebody has started to

rip down the fake walls.

Look. These walls have been put on but they've taken off.

And over here, you can see the original cornicing.

And my, that is absolutely stunning.

Can you imagine what this place would look like once all these fake

walls have been ripped off and the original features put back in?

The longer I'm walking around this house,

I'm falling in love with it even more.

I'm thinking, to do it real justice,

I think this should be a family home again.

I would love to see it as a family home.

# You spin me right round, baby

# Right round

# Like a record, baby

# Right round, round, round... #

For the record, this is a first for me -

a defunct sound recording studio on the first floor!

Wow!

And three other rooms.

I know you might be surprised about me

thinking this should be a home rather than a commercial property,

but these rooms are all just so fabulous in their proportions.

There is a basement as well. This space just goes on and on.

But there are some problems with this property.

This little alley is the only outdoor area.

And to build a garden, you'd have to lose the gym and all

that asbestos roof.

My head is spinning with possibilities.

Time to ask a local property expert for his thoughts.

It's possible this property could be used for alternate commercial use.

Dental surgery, doctor's surgery, physiotherapy.

But, for the sort of capital costs, I think

it's most likely to go back to residential.

At the back is the large gymnasium which has a variety of uses.

Could be ancillary to this -

as a studio or commercial use for work from home.

If this was renovated into offices and still had a commercial use,

it would have a rental value of, say, £10,000 per annum.

If this were converted back into a residential dwelling,

I think its value then would be £550-£600,000.

As a four-bedroom house, once renovated,

the rental value here would be in the region of £1,500 per calendar month.

Well, there is a lot of work to do.

And this could be a challenging project.

But I've no doubt this could be a handsome, gorgeous property

when all its character is fully exposed.

Let's see who agreed when we went to the auction.

Loads of accommodation. Arranged mainly in two buildings.

Lots of possibilities for future uses,

subject to planning on this one. Would do you want to start me?

Guide price is 220.

£220,000. Where do you want to start me?

Start me at 200 then, don't really mind. £200,000. Straight in at 200.

At 200. And 10. 210. 210.

At £200,000. 210 I have. 210.

I saw 210. 215 if you like. 215.

220. 225. And 30. 230.

And five. 235. And 40.

'This was the last lot of the day, but after a slow start,

'things began to hot up.

'We rejoin the bidding at £300,000.'

Is that 300?

Yes, 300. And 10. And 20. 320.

And 30. And 40.

And 50. 350 sitting down. 360.

£360,000.

'The bidding became a battle between some very determined parties.

'And that guide price of £220,000 became a distant memory.'

370.

370. You're sitting in the middle.

'We rejoin the bidding when it reached 400,000.'

400,000. Keep with it. 400, it's with you.

405 now. With you at 405 now.

405. 410.

At £410,000, it's back with you.

For the first time...

At £410,000 for the second time...

This is your last chance. 410. It's with you. Third and final time.

If you are sure you're all done...

-At £410,000...

-BANGS GAVEL

Well done, sir. It's yours at 410. Well done.

'The successful bidder, at £410,000 - more than £185,000 more than

'the upper guide price - was film-maker Paul.

'I'm hoping, like me,

'Paul will want to restore this place to its former glory.

'I met him there to find out what his plans

'for this unique property were.'

Paul, I've gone weak at the knees with this house.

I absolutely love it. Why did you buy this? How did you find this?

And what have you bought it for?

Weak at the knees is a very good reaction.

Ladies don't go weak at the knees very often with me nowadays.

I bought it from the catalogue. I obviously viewed it before I bid.

But I thought, this can be a home. This is a Georgian house.

I'm so glad you said that because straightaway, walking around here,

I would love to see this as a home because it's just so handsome.

It's got wonderful windows.

The configuration of the rooms is pretty much as it

was 200 to 250 years ago. The rooms are the Georgian proportion.

All you need to do is strip it out, go back to the basics.

Are you going to be replacing things like the sash windows?

This is Grade 2 listed, which means that all the exterior is

subject to council approval and control.

I wouldn't want to replace the sash windows.

I'd like to intimate them with the double glazing behind.

But judiciously

so that it doesn't interfere with the look from the outside.

'I am really excited that someone with artistic sensibilities has

'bought this house.

'And he seems to have found a use for that gym.'

I don't see it as a gym, I see it as a studio.

The gymnasium is going to become your studio?

I do three things.

I'm a photographer, a film-maker, and an artist.

And that studio will be used for all those functions.

1,500 square feet of wonderful space. Where do you get that?

Do you know what that would cost in London?

Paul seems undaunted by the size of this house.

And that's because he's overseen some demanding developments,

such as converting a warehouse.

He has a budget of £150,000 and a timescale of nine months.

But is he worried about planning permission?

I can see no reason to object to it going back to what it was,

which is a residential family home.

It's preserved under Grade 2 listing with an exterior like that.

At the moment, it's like a cake with a beautiful outside

and a deteriorating interior.

What I'm going to do is match the inside to the outside.

Paul's creative vision is certainly shining through.

And so, I have to ask...

Paul, I'm really intrigued to find out about your film-making.

Yes, yes, yes. I've worked with Paul Scofield, Dirk Bogarde,

lots of quite well known actors.

I directed Tom Baker's exit from Doctor Who.

I've done about 35 to 40 arts documentaries.

Paul, I could stand here and talk to you all day.

I'm going to be keeping a very close eye on this building.

I'm so happy for you.

It has certainly fallen into the right hands.

Good luck with this project. Cannot wait to see the outcome. Well done.

-Come back soon.

-Thank you.

-Thank you.

You can join me later on in the show to see

if Paul does create his picture-perfect home here.

It's really fascinating, Martin,

just seeing the way people renovate their properties.

Yes, well, we've seen one, let's see how the other two buyers got on.

Earlier on in the show, I was in Chingford.

We were with Zeki and Hassan,

who bought this two-bedroom ground floor flat for 220,000.

They agreed the budget was £8,000 but there was one thing

they couldn't agree on.

So, come on, how long is it going to take you?

-I'm hoping...

-Three months...

-Two weeks.

What?!

Two months, two weeks.

Realistically, Dad...

-Realistically, two weeks.

-Two months.

I love it! Two weeks. Two months.

Well, I think since we are back four weeks later, optimistic dad,

Hassan, might have been closer to the mark than daughter, Zeki.

Outside looks promising. A much tidier garden overall.

But the real changes are inside.

# There could never be a father loved his daughter

# More than I love you... #

And it's in the all-important kitchen

that Hassan's hard work really shows.

Before we started the kitchen,

we decided to knock the walls down to make more space.

We got the old system out

so we might as well just change the whole kitchen.

It looks nice and brand-new. We changed the hob and the oven.

We changed the cabinets and everything.

So, all in all, you know, it's a brand-new kitchen.

# Take a seat in this dream kitchen

# You can wipe your feet and dry your hair. #

But it's not just the kitchen that's looking good.

The living room is now a heavenly white,

matching the radiators which is another big change in this flat.

Part of updating the property, we would need to change

the entire electric heating system that was here in place.

That involved having a brand-new combi boiler put in

and changing everything over to gas,

where previously it had been electric.

So, yeah, we're really pleased we did that

because the new radiators are white, they're slim,

they are a lot more modern.

It's kind of made a big difference in each room

and also in the hallway there was a big brown,

beige electric heater on the side and it was an eyesore.

So these are a lot more aesthetically pleasing

and you actually forget they're even in the room.

The heating change is a smart investment.

And another smart investment has been to renovate the two bedrooms

making them both light and airy.

I liked the tiles in the bathroom

so I'm glad those and the white suite have stayed.

Now, let's talk about timescale.

It took four weeks which basically was half the time that I said

-and double the time...

-That I said.

Yeah, so it was nice to both be wrong by the same degree.

So dad and daughter are both wrong.

But they finish this place to a very high standard.

I'm just hoping they were right on the budget of £8,000.

You said £8,000, didn't you? And we came in at £6,000, so just under.

I really wanted it to be lower than that but we had to spend

the extra money on the kitchen, and that we don't regret.

A great renovation. Under budget and in just four weeks.

Now let's see what two local property experts think of the job.

First impression of the property is that it's been done

to a good standard. Good refurbishment.

You can see that it's been whitewashed all throughout

and given it a nice bright and airy feel.

The main benefits of this property

is that it comes with a good-sized garden, two good double-sized rooms,

and it comes with a garage as well.

The land is an excellent size.

The kitchen, fitted kitchen is really, really good.

Got double glazed windows, gas central heating...

It's an excellent property.

If I were to put this property on the market,

it would achieve anywhere between £230-250,000.

This property for sale could achieve between £240-250,000.

Yeah, that's a little bit disappointing because, um...

..it's the same valuation as what we had before

we had anything done to the property.

So obviously we have spent money

and so we would have hoped that we could have maybe got a bit more,

but it makes sense because obviously the stamp duty barrier is 250.

Having spent a total of £226,000,

that top valuation of £250,000 gives Zeki and Hassan's family business

a profit of £24,000, minus the usual taxes and expenses.

Maybe they'll fare better in the rental market.

If I was to put it on the rental market, I suppose it would achieve

anywhere between £1,000-1,100 per calendar month.

For rental purposes, this property could

achieve between £1,000-1,100 per calendar month.

At £1,100 per calendar month,

that would give them a yield of nearly 6%. So what's the verdict?

Can the optimist and the realistic agree on this one?

-We are going to be looking at renting it probably for a year.

-Yeah.

And then re-valuing it and see if it makes a difference.

For the moment, this property will be added to the family portfolio.

But what have they learned from this particular project?

If you're going to go for something,

maybe had this had a bit more scope for, like, an extension

or some sort of other structural conversions

we could've made more on it.

But obviously we would've had to spend more.

But when it's something like this, there's not much in it

so I would just say to anyone thinking about doing it

maybe this sort of property is more suited

to investment for rental purposes as opposed to selling on.

Earlier, I was in Faversham in Kent to see this wonderful

Grade II listed 15 room Georgian property

which had some original features and its own gymnasium.

It was bought for £410,000 by artist and film-maker, Paul.

I've worked with Paul Scofield, Bogarde, lots of, you know,

quite well-known actors. I directed Tom Baker's exit from Doctor Who.

And I've done about 35 to 40 arts documentaries.

Four months later, we've returned to see how he's getting on.

For Paul, one of the most important reasons for buying the house

was the gym, which he was planning to make into his work space.

So unsurprisingly, that's what he has tackled first.

Paul has kept the asbestos roof, but he's steam cleaned it

and covered it with three coats of sealant, now making it safe.

This gymnasium is now a studio for me as an artist/film-maker,

and it's perfect.

I couldn't really ask for anything better.

We've left just one hoop on the wall to show what it was.

I put it in a mezzanine floor to work and to bring

the level of my artistic endeavours up to where the light is best.

That's also good for storage, and desks, and computers,

and things like that.

It gives a fantastic view down into the studio space.

Artists tend to use the space that they've got

so the studio is a big thing.

It certainly is big. Paul has a huge canvas to play with here.

So now the studio is up and running,

what about that stunning Georgian family house it's attached to?

Here, in one of the reception rooms,

you can see that Paul is keeping to his promise

of restoring the house to its stately

and imposing original beauty.

What I want to do is to make sure that the changes I impose

upon the house are in the character of the original architecture.

I want to make sure it's got those touches that make it personal to me.

So, it'll never really be finished.

One wants to keep the best of the past.

We're going back to Georgian colours.

And the whole point about this project for me

is that it's a 1790 Georgian house.

And the rest of the house?

Well, it's still very much an unfinished masterpiece.

Paul is stripping everything back

to uncover the original Georgian features.

And I am really glad to hear that those old sash windows

are in good enough shape to be repaired.

And fireplaces and cornicing that were hidden behind panels

and old stud walls are gradually being unearthed.

Thankfully, the plumbing isn't going to be Georgian.

Paul is converting the former music studio to a wet room.

So singing in the shower might be mandatory here.

And how's of this size can soon eat up so much of your money,

so I'm wondering how the budget is bearing up.

When I said £150,000, I was hoping it would be less.

And I think it will be.

I'm probably spending about £10,000 a month

and I've spent something between £40-45,000 so far.

But I think if you look and see what's been achieved with that,

it's not bad.

We're into month four.

I reckoned it would be a nine-month at least.

Everybody who comes in now feels that we're doing quite well.

Now it's time for two more guests to give their opinion

about how Paul is doing.

What have they got to say about this unusual property

and the project in progress?

The combination of the gym

and the residential house is absolutely unique.

There are other properties, many in the town,

but this is genuinely unique, I think.

This would work very, very well as a family home.

The only thing I think,

especially if it's for a family market,

I perhaps would have changed the gym layout

so that you could create a garden

and possibly some garaging space there as well.

I think then you really would attract the family market.

I really like what's happening here.

All the renovations are coming on extremely well.

All the nice, original features are being preserved and enhanced,

and it's looking really good.

You've got that really useful building in the back which has got

a wide variety of uses, but obviously you do need to have

the appropriate planning consent for whatever use you're going to adopt.

This house could have taken shape in dozens of ways

but it's clear that everyone thinks it's fabulous.

Well, the agents think that as a family home it could rent

for between £1,800-2,500 per calendar month.

The top figure giving a yield of 5%.

But that is not part of the plan as far as Paul is concerned.

If Paul does spend £150,000 on this house

on top of his purchase price of £410,000,

that would mean an investment of £560,000.

Would he get his money back if he sold it on?

I think the value of the house when completed

is going to be in the order of £600,000.

I think the property renovated with the gym as it is,

you could look to resell the property for roundabout £650,000.

If you renovated it and took the gym away

creating a lovely garden for a family,

I believe it could go for £700,000.

This is undervalued.

I think that it's worth, in my opinion,

now £600,000 in its current state.

# That's a picture no artist could paint

# A picture so lovely, so real. #

I don't think Paul and his passion will be parted any time soon,

no matter what the price.

After all, this is, as the agent said earlier,

a unique and lovely house.

I won't give this up in a hurry at all.

I think they'll have to trundle me out in a box, frankly.

Probably one that I designed myself.

Well, we hope we've given you something to think about

if you're planning to visit an auction soon.

And even if you're not.

Join us next time

when we'll meet more people who did, here on Homes Under The Hammer.

-Goodbye.

-Goodbye.