Episode 45 Homes Under the Hammer

Investing in property can be a scary thing if you've never

-done it before.

-But it doesn't need to be.

The trick is finding the exact property that fits your needs.

And one way you could do that is by visiting your local auction house.

All kinds of properties go up for auction every day, but as Martin

and I know, well, it is all about making the right choice.

So, what was the choice of the buyers on today's programme?

In South Wales, will this two-bed mid-terrace have me hooked?

Right.

It's all pretty straightforward in Kent.

The house will be over here

and the bungalow will be over here.

So far, so practical.

But in Dumfries, things are a bit more up and down.

Well, upstairs number...

I don't know, I lost count. Is it four?

All of 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.

# Help me, Rhonda, yeah Get her out of my heart. #

I'm in the Rhondda Valley, South Wales, where the

stunning landscape has ribbons of closely packed houses

in separate villages,

shaped by different collieries the residents once worked for.

Just a short walk from the town of Treorchy

is the village of Ton Pentre,

where the Mining Communities of the Rhondda statue now stands

as a monument to the district's mining past.

The area fell into decline with the loss of the pits,

but the good news is that the M4 corridor is helping

regeneration here, and there is a train service that can get

you to Cardiff in half an hour.

Well, just about a quarter of a mile from the train station,

on this fairly busy road, is the property I am here to see.

£20,000 plus was the guy price for a two-bed mid-terrace.

In we go.

OK, so, what have we got?

Right.

I wasn't expecting that. Two-up, two-down terraces.

You normally pretty much know what you are going to find.

This has more of a feel of an old shop about it.

This kind of strange stuff coming down from the ceiling

with these hooks and stuff like that.

It is a big space, though, and it shows what you get when you turn

one of these kind of properties into more of an open plan

kind of affair.

It is one huge great room.

Stairs up to the bedrooms there.

And then originally, of course,

this is where the property would've ended,

so this is where the kitchen would have been,

but now it has been extended.

Single-storey extension on the back here,

leading through to the kitchen.

HE LAUGHS

I'm not sure you would want to cook in here right now.

But it is good that you have got it and, you know,

you do get that feeling of space.

And...

A kind of what-is-going-on-here kind of feeling as well. Hm.

The Treasury have taken control of this property, as the previous

owner passed away in 2011

with no traceable heirs to his estate.

It will be the Treasury that will benefit from the property's sale.

So, up here,

a few signs of damp on the wall there.

But good news with that - a good-sized bathroom.

That is really nice to see. Bathroom, loo.

Obviously, you need to replace the suite.

And actually, in general, the floor feels a bit strange.

I found it a bit strange downstairs. So I'd want to check that out.

By your two bedrooms. Nice, good-sized landing area.

Bedrooms themselves... Um, well, they are not bad.

Looks like you got some form of central heating.

But I don't know what is going on with that radiator there.

So in general, it is one of those houses that you have just got to

try and look past what it currently is to what it might become.

And actually, I think, it is a good-sized house.

And just remember that guide price.

£20,000 plus is the figure, if you'd forgotten.

And, yes, a lot does need doing to this house, but it is a

solid stone-built terrace and the room sizes are generous.

Like this good-sized second bedroom.

Although all the radiators seem to be a bit lacking

in the height department.

So, out the back here. Let's see if we can investigate a bit further.

Um... Not surprisingly, it is a little bit chaotic.

A little extension here, single-storey.

It has got a half-decent roof.

But...

Hm... I have concerns about it.

I mean, the whole building is just, like, being a terrace,

scrunched in between the two adjoining properties.

And it just has some nasty cracks.

But out the back here, you have got a yard area and then...

Some kind of garage at some point.

Pretty much like the rest of the house. It... You're going

to have to start with a skip and then see what you are left with.

# And everything must go. #

Quite.

We called in a local estate agent

to get his view on this estate

left to the Treasury.

First impression, the property is in need of a total renovation. It's

original mortar, walls and electrics need attending to.

A full gut, basically - windows, doors, the lot.

So, given a full gut and a bit of TLC,

what does he think it could be worth?

The kitchen extension does need to be demolished.

And whether you replace it with a single-storey or a double-storey

extension, it would range somewhere between £75,000 and £85,000.

But with such a comparatively low guide price, there still seems

to be plenty of room for renovation and a possible profit.

What about the rental market?

It depends on whether it is a two,

three or four bedroom property once renovated.

But it could range between £400 and £550 per calendar month.

Hm. It's difficult to know what is best to do

with so many alternatives.

I would put a full-width double extension to the back.

Put an extra bedroom, a bathroom upstairs.

And turn it into a three-four bedroom property.

Make a large kitchen-diner downstairs.

Possibly off-road parking to the rear.

And fully renovated throughout.

Well, it is certainly an intriguing property,

but it is well located and structurally sound.

So, yes, there is a lot of work to be done.

And, yes, you do have to see through things to what it might become.

But still, potentially a good one to go for.

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

Onto lot 259.

It is South Wales.

Freehold, mid-terraced house.

By order of the Treasury solicitor.

Telephone bids as well.

Mid-terraced house. Start me at 10,000.

On the aisle, straightaway at 10,000. Make it 11.

Thank you. Hello. 11. 12. 13.

14. 15.

15. 16. 17.

18. 19.

20. 21.

Gentlemen's bid, on the aisle, 20,000. 21 anywhere else?

Fresh place, back right, 21.

22, sir. 23.

24. 25.

26. 27.

28. 29.

No. 28,000, gentleman's bid, on the aisle.

First for 28.

Second time for 28.

Third and final... 29. 30.

OK, gentlemen's bid, back of the room, standing up, 29,000.

First time. Second time.

Third and final time. £29,000.

Your bid. Against you. All done?

Sold at 29.

Back at the property, I met up with successful bidder Yasser,

who's a business management consultant

and researcher, to see what he thought about his £29,000 purchase.

-Yasser, good to meet you.

-Good to meet you.

-Congratulations.

-Thank you.

-Thank you very much.

-Tell me why you wanted to buy this house.

Well, you know, when I was at the auction,

I had shortlisted three properties I really wanted to buy,

but they just went beyond my capacity.

So, this came up.

And I have a house three miles down the road,

so I figured I know the builders,

I know the letting agents in this area.

It is a nice place, the communities are nice.

-So I did my homework sitting in the auction on the legal pad work.

-Ah!

And I figured it couldn't go wrong with this property.

-Right. You hadn't visited it, then?

-I hadn't.

-Oh.

Really?

So, what did you think when you walked through the front door?

I was...shocked.

To say the least.

I still am actually rather shocked.

I wasn't sure if it was a shop or if it was a pub or...

It didn't look like a residence.

I wish we could transform it from whatever it is right now

into some liveable space for a family that would really enjoy living here.

But it needs a lot of work. I mean, new kitchen.

Obviously, it needs a new bathroom.

We need to take all this rubble out,

all these weird things in the home out.

Clear it up. And it really needs a major renovation.

Right. Is that something you are able to do yourself

or are you going to get people in?

I have got a builder working on my other property,

which I bought also at auction three months ago.

And incidentally,

I hadn't even looked at that property beforehand when I bought it.

-You are a serial not-looker.

-Well, yeah, I guess...

Well, you know, my take on this is that you can't go wrong.

-But you CAN go wrong at auction.

-Really?

-Yes, of course!

You could get into terrible trouble.

If the thing isn't up to expectations, I could just go out,

go back at the next auction, to another auction and probably pay

you know, incur the transaction fees

and maybe lose a couple of thousand pounds.

That is probably the worst that can happen.

-Well, it is not a strategy I recommend.

-Hm.

But, hey, some people do do it.

So, how long do you think it is going to take to get this

place sorted out?

Well, you know, the last property was my first house, three months ago,

and the builder has been working on it for about a month and a half.

But that didn't need anywhere...

nowhere close to the work that this thing needs.

So I imagine it will probably be five times as long as it took that

to bring it to market.

So, has this put you off at all or are you going to be back

-at the auctions buying more?

-No, it's not going to put me off.

I think auctions are a great thing.

You know, not just houses, I've bought cars,

I've bought computers, I've bought antique furniture.

And in the 15 years that I've been going to auctions,

I've never really gone wrong.

-Oh.

-So I hope I'll have that same experience here.

This auction purchase, however, has another incentive.

To tackle the problem of 23,000 empty houses in Wales,

in 2012, the Welsh government launched a scheme to provide

loans to bring empty homes back into use.

Yasser is hoping to benefit from the scheme,

which will loan a maximum of £25,000 interest-free

over two to three years,

depending on if the property is sold or, as Yasser hopes, let out.

Yasser thinks he can do the total refurbishment for less than

the maximum £25,000 allowed in the scheme.

And according to his reckoning,

that should take about seven to eight months.

Tell me exactly what you are going to do to the inside, then.

It is a two-bedroom right now.

It looks like a fairly large house, so given the open space,

the large capacity to maybe accommodate a third bedroom,

you know, restructure this whole place into something

that somebody would want to buy.

Will you be doing this all yourself?

I mean, apart from the help of a builder.

-Have you got family involved?

-I've got my wife, she is pretty hands-on.

You know, she takes a keen interest.

-Actually, half of the money investment is hers.

-Oh, right, OK.

Well, listen, congratulations anyway...I think. Good luck with it.

-I hope that congratulations are due as well.

-Nice to meet you.

Great, thank you. Appreciate it.

Well, I think Yasser admits that he has taken on slightly more

than he was expecting with this place.

What a property not to have seen beforehand.

How will he get on sorting it out? You can find out later in the show.

Tenterden is on the edge of the Weald of Kent.

It is a gorgeous town with tonnes of shops

and boutiques on its historic high street.

It is hardly surprising that it is a desirable place to live.

William Caxton, who pioneered printing in England, is

believed to have been born here.

And some of it probably has not changed since his day.

I'm just up the road, in the nearby village of St Michaels.

So, you are probably hoping I'm here to see a gorgeous country

character cottage, with roses around the door. Well, no. I am not.

But in a way, it is better. Why? Because it's this!

OK, so at the moment, it is an overgrown garden, but it has

got planning permission for two properties -

a bungalow and a house.

And the guide price - £190,000 to £200,000.

Let's explore.

Not surprisingly, St Michaels is in a conservation area.

And when dealing with sites like this,

permission has to be granted before any development work commences.

And on virgin land like this, unusual factors may come into play.

For instance, if a family of great crested newts were discovered,

it would delay building by many months.

So, I would always recommend a full site survey before buying.

However, within the terms of the granted planning permission,

trees have been removed from here.

So, you are looking at a nice, level plot.

The vehicular access point at the moment doesn't exist,

but that too has been agreed with the Council,

and we'll come down here to both properties.

And they will share a sort of carport pergola arrangement.

The house will be over here and the bungalow will be over here.

So far, so practical.

I love gardening, but these days, I think

it must be impractical to have one this size.

And the key to selling on for development

lies in sympathetic planning.

# Take me outside

# Sit in a green garden

# Nobody out there

# But it's OK now

# Bathe in the sunlight

# Don't mind if rain falls

# Take me outside

# Sit in a green garden... #

It is a question of balance between the need for new housing

and its impact. The key to this is a good set of plans.

So, here they are. And I think they're really rather nice.

Now, the exterior of the house will be clad in vertical clay tiles,

hanging over local-stock brick on the ground floor.

And the bungalow will just be brick.

So, all really nice and in keeping.

Now, the bungalow is very straightforward

and extremely spacious.

Living room, leading into dining room.

Kitchen in the middle at the back.

And two bedrooms.

Now, the house is also very generous.

You have got a living room, massive study with a dining room,

a lovely kitchen.

And then upstairs, four doubles,

bathroom and two en-suites.

Now, these are impressive plans and would make lovely homes.

The plans are fairly sympathetic as the design is Kentish in style.

The stock bricks are handmade in traditional brickworks,

mainly in Kent and Sussex.

They are of a distinctive colour

and softer look that lends itself to sensitive sites like these.

The plot looks spacious, but when you think about putting two

houses on here, well, it suddenly feels a tiny bit snug.

Certainly, I don't think there is any way to get more out of it.

In fact, there were at least two planning applications

submitted before this one was passed.

One had three houses on this site. It was withdrawn.

Clearly, a nonstarter.

And the other was refused due to the size of the detached house

and the bungalow's positioning next to the neighbour's garden.

In this case, I think less is more.

And I'd be careful not to look a gift horse in the mouth.

Time to find out if a local

professional agrees with my theory.

# Everybody's talking all over town

# They say that you're going to turn me down

# If it happens I got a new field to plough... #

And remember, this field

has a guide price of £190,000 to £200,000.

Will the two planned properties realise its full potential?

It is a very tight site.

It is very... As you can see, it is surrounded by other houses.

However, that gives it a tucked-away feel,

which will make it very private.

I think that it will be well sought-after.

It does allow for a choice of accommodation,

so you do have a bungalow and a house,

which will appeal to two different sets of buyers.

The more popular one would be the bungalow.

There is always high demand for bungalows.

Not many of them get built.

So we feel that there'll be quite a few downsizes looking to

buy on this site.

We think the bungalow,

which we understand from the plans is about 1,133 square feet,

would fetch a value in the region of £295,000.

Rental value for that property would be approximately

850 to 875 per calendar month.

The detached house, we feel, would fetch around £415,000 with a

possible rental value in the region of £1,250 per calendar month.

An exciting plot in a desirable area,

where these opportunities are few and far between.

Let's see who snapped it up at the auction.

Lot 73, we are going to now.

St Michael's, Tenterden.

Lovely double plot there.

I'd take 180 to start me.

180 if you wish to start me.

180? 180, I'm on the way.

185? 185.

And 90. And five? 195?

192?

192. 195.

197? 197?

At £195,000, I've got seven I'm looking for.

Are we all done at £195,000? Must be worth more than that.

At 195 in the trellis door there.

197 I'm looking for.

If you are out of it, I'm going to be selling it for the first time.

At £195,000 for the first time.

195 for the second time.

Third and final time.

Are you all done at £195,000?

Yours, sir, at 195.

And that is F701.

Successful bidder Ken and his wife, Laura, are chicken farmers.

When he is not looking after 12,000 hens,

Ken does a bit of building on the side.

His £195,000 bid fell smack in the middle of the guide price range.

We met up at the site to discuss his plans about the plans.

# And all the plans we made. #

-Ken, congratulations.

-Thank you.

-Well done.

-So, you got it for just under £200,000 at auction.

-Yeah.

What was it like for you on auction day

and what were you prepared to pay?

-Um, it was OK. I was prepared to go up to 220.

-Really?

-Yeah.

We'd sort of looked at this because it is a close site

to where we are and it is a follow-on site to what we do, so...

-It was nice and handy.

-So tell me about what you do.

-Do you build houses?

-Yep, we build new builds mainly.

-And how long have you been doing that for?

-15 years.

Ken, so many builders and developers I talk to

buy the site and then say to me,

"No, we're not having those plans, we're going to put our own in.

"We want to go bigger, better. Tweak this, change that."

Are you happy with the lot you bought on the day

or do you want to tweak?

No, we are going to build it as is.

We are happy with the plans. Going back to planning loses time, money,

so we are going to build it out as is.

# And all the plans we made. #

There are two existing parking spaces belonging to the neighbouring

properties that currently block the entrance to what will be

the private drive, providing access to the site.

The plan is for these to move onto the site.

They'll be located along this fence.

That means the owners of the new properties

and the neighbours will both be using the narrow, three-metre,

private drive, with properties on either side.

I can see that that might put some people off.

Put it like this,

I wouldn't want to meet one of my neighbours coming the opposite way.

Do you think that might be a downside to this site?

Yeah, it might do. Um, but then,

that reflects in the price.

So... I mean, I feel if the access was good,

then the price would be dearer in this area, because it is a good area.

I'm not too worried cos obviously the price is set by it.

Absolutely. It is a beautiful area.

And to have two new builds

-is very rare for somewhere like this.

-Yeah.

So, let's talk about the bungalow.

How much do you hope to sort of sell that on for?

Um, I think we've had it valued at...295.

And then you are also going to be building a four-bed house

-for a family.

-Yeah.

Do you think that might be a little bit harder to sell on?

Um, no, because, again, it will be price.

If it is priced right in this area, then...

People want to live in this area, so it is all down to price, really.

Are they going to look typically Kentish in style?

We will do as best we can. We like to use natural materials.

We don't like to use fake materials,

like the weatherboard will be natural wood.

There will be a local-looking brick, tile.

We do try to keep it looking as nice as possible.

On the plans, aesthetically, I thought they looked really,

-really nice.

-Yeah. I think we'll make it look better than what it is

on the plans, to be honest.

Now, with new builds, you don't always get a lot of land,

a lot of garden. Tell me about the family house.

Is there going to be enough garden, do you think?

Yeah, I think the garden will be adequate.

Again, some people like big gardens, some people like small gardens.

So you're going to be... It is

difficult to get it right, but I think it is big enough for a family.

So, what is worrying you about having bought this? Anything at all?

Or are they just going to go up?

No, I've got no worries about this site whatsoever.

How long do you think it's going to take your team to build?

Hopefully, about four months.

So, four months to get on site, build the houses, up they go.

-Yep, finished.

-How are you going to get your team on site?

Because I am standing here, going... "OK, it's a little bit tight here."

How is it going to work?

Do you think the neighbours are going to be happy?

Yeah, logistics are going to be quite difficult, it is a bit tight.

We are going to have to work with the neighbours with that.

Try and keep out of the way as best we can.

Try and get the deliveries down to a minimum on certain days.

But we will work it, we will get there.

So, are you going to be the man in charge, the project manager?

Yeah, I'm here with the whip.

You seem quite tough, like nothing is going to bother you.

-Um, well, yeah, things do bother me. I do get stressed.

-Do you?

The boys know I get stressed.

So, tell me, how much is it going to cost to build both these houses?

-I've costed it up at 300,000.

-300,000 to build both.

-Yeah.

Start with the bungalow, then the house?

Or will they both go up at the same time?

We are going to do groundwork at the same time. We build timber frame.

So we will have a bit of a gap between the frame

coming from the bungalow to the house.

But they go up quite quick when we start.

Can you tell me this - what sort of profit are you hoping to walk

away with at the end of the day?

I think, after all expenses are taken out, sales fees, all the bits

and pieces, I would probably hope to be walking away with 100,000.

Ken, it has been lovely meeting you. Good luck with this project.

-And I hope it all goes to plan.

-Thank you.

-Thanks a lot.

-Cheers.

Ken has the right idea here - get the plans, build the houses,

sell them on for a reasonable price. Bosh, done.

You can find out if works like that later on in the show.

Still to come, there is bad brick in Dumfries,

but will this fireplace get my seal of approval?

What do you think I'm going to say?

The best laid plans turn out unexpected results,

when you see what Ken did in Kent.

That is probably one of the biggest bathrooms I've seen.

Back now to Ton Pentre, South Wales, where earlier,

Yasser paid £29,000 for this two-bedroom mid-terrace.

It looks like the previous owner needed a lot of hanging space.

# Oh, young hearts, run free

# Never be hung up

# Hung up like my man and me

# My man and me. #

-You hadn't visited it, then?

-I hadn't.

-Oh.

Really?

So, what did you think when you walked through the front door?

I was...shocked.

To say the least.

I still am, actually, rather shocked.

I wasn't sure if it was a shop or if it was a pub or...

It didn't look like a residence.

And Yasser had an unusual, and dangerous, approach to buying blind.

My take on this is that you can't go wrong at an auction.

-But you CAN go wrong at auction.

-Really?

-Yes, of course!

You can get into terrible trouble.

If this thing isn't up to expectations, I can just go out,

go back at the next auction, maybe lose a couple of thousand pounds.

That is probably the worst that can happen.

After the initial shock at the state of the house,

Yasser thought this project would take up to eight months.

And he was going to extend as well as refurbish.

But there has been a change of plan, so we are back just four months

later to find out from Yasser what he has been doing.

So, I've basically asked my builder to, first of all,

clean up the property.

There were some structures inside the house,

basically because the previous person used it as a dark room.

And so, like, to hang the rolls of film.

So there were different structures in the lounge - hooks

and nails across in different places.

So that was all cleaned up

and cleared out just to make the property

look in sort of its original form, rather than anything having

been added on which wasn't supposed to be in place.

Of course, I mean, when I first visited the property,

it was very obvious that it needs pretty much an overall...overhaul.

So, it needed a new lounge, you know,

new walls, like, plastering, paint all over.

New woodwork, new kitchen, new bathroom.

Which is fine. You know, that was something that I was expecting,

and that is really where you add value to the property.

But Yasser wasn't expecting the amount of damp that he found

in the property.

It needed significant damp proofing and re-plastering -

a much bigger expense and undertaking than he had planned for.

So I decided not to carry on the works that I had planned or,

you know, the original vision I had for the property because

I probably wouldn't see the sort of return that I was hoping I would see.

But Yasser doesn't regret buying unseen. He's got a plan.

We have just basically decided to clean up the house

and put it up on the market. Put it up on the retail market.

I think it is a good house. It is a very large size.

And I think there's a lot of potential for somebody who

just simply wants to make it their home.

Yasser spent £2,000 doing the clear out and tidy up,

and it has made all the difference.

# Such a little thing

# Such a little thing

# But the difference it made was

# Grave

# There you go

# How I love

# All of the very simple things of life

# Oh

# Such a little thing

# A fumbling politeness

# Oh

# Oh, the difference saved me. #

So, what difference does Yasser think he has made to the price with

the tidying up and unblocking of this former dark room's windows?

I think this property could really go out in a retail

market for at least, I would say, 37, may be no less than 35.

That is what I'm hoping.

Well, let's see if the professionals agree.

We asked two local estate agents to give us valuations.

Will Yasser have had a narrow escape or even make a small profit

on his £31,000 spend so far?

I don't think any value has been added to the property.

Whoever comes here is going to have to gut the place.

So they're not going to worry about bits and pieces going from it.

It would be fine to sell it as a starter home - two bedrooms,

bathroom.

And obviously do something with this kitchen.

It is great that there is a garage here.

Because obviously, even though it needs to be rebuilt,

you're not going to have to go to the local authority

to get planning permission.

And with this being a main-road property, it is

just great to have the off-road parking.

So, how do the agents feel about putting

the property on the market after just a quick spruce up?

If this was my property, I probably would have gutted it completely

and spent the money and renovated it.

That is the only way you would've made any money on it.

My personal opinion with this property is

I'd like to see the work done.

There are plenty of buyers out there that will be looking to buy

this sort of property.

However, there is so much potential, money to be made,

in my opinion,

I would like to see the current owner actually do

the work and sell it on and make the money for himself.

But that is his decision.

Yasser's total spend here to date is 31,000.

Given the house had a guide price at auction of £20,000 plus,

will he be able to break even?

In its current state, the property,

you'd be looking round about £25,000 to £30,000.

If I was going to put this property on the market for sale today,

I would be looking to market it at somewhere between £35,000

and £40,000.

However, we have got to consider offers.

I would expect it to go for 35,000.

Definitely.

Of course, I would agree with the second one.

But that is how much I thought it would be worth.

I think if I put it up for 37,

I should be able to sell it for 35 and, you know,

minus any of the estate agent fees,

I'd have no losses whatsoever with this property.

Buying a property blind is always a risk.

And, as I am sure you know, I really don't recommend it.

In this case, if Yasser sells it for what he hopes, it will have

washed its face.

So is he ready to plunge headlong into the auctions again?

Absolutely.

As soon as this is going to sell off,

and the money comes back into my bank account,

you'll see me at the next property auction.

Today, I'm in Dumfries, on the bank of the River Nith.

Now, the river is considered one of the town's greatest assets.

And the area around here, White Sands,

potentially has a major regeneration project planned.

That has got to be interesting.

And the town is interesting for other reasons, too.

Two great Scots have connections with Dumfries -

Robert the Bruce and Robert Burns.

Robert the Bruce slew his rival, the Red Comyn,

here at Greyfriars Kirk

and went on to become King of Scotland.

BAGPIPES PLAY

When Robert Burns was at the height of his poetry powers,

he came to live here.

Sadly, he died aged only 37.

And his mausoleum attracts Burns aficionados from all over the world,

a reflection of the longevity of works like Auld Lang Syne.

BAGPIPES PLAY

Well, just a stone's throw from the river is the property

I'm here to see.

£40,000 plus was the guide price for a three-bedroom flat.

It sounds almost too good to be true.

Ha, this could be one of the reasons.

Part of the flat is actually situated above the restaurant

and lounge of the neighbouring pub.

Now, that could give issues with noise,

but more importantly, perhaps, issues getting a mortgage.

However, it is a good, solid-looking building.

So let's take a look inside.

The building has lots of character, built circa 1880.

Through the front door,

I'm straight up a flight of stairs to a landing on the left.

It is quirky. Wow, what is going on there?

It is like a little bridge that you have to go up here

to go across to the other side of the property.

We'll explore that in a minute. First of all, into the lounge.

Well, the first thing that strikes you

when you come in here is this -

feature fireplace. Wow!

Now, feature fireplaces like this tread a fine line in between

being pretty good or something you want to rip out,

eh, straightaway.

In this instance,

would do you think I'm going to say?

Actually, I like it.

No, I think it works.

I think the brick thing... It's warm. I like bricks.

It's just... I do, I like it.

The fact that there's more over there, not too sure.

Probably cover that one up. But this bit definitely stays.

In terms of a little living space, yep, it's good.

Stairs over there.

But I've seen stairs over there as well.

What is going on with this place?

I'll come back and investigate where the lounge set of steps go to later.

First, the kitchen,

via these steps from the lounge or these from upstairs.

Worth the journey, though, because it is a really nice space.

Slightly unusual layout. This feels a bit strange.

This work surface here and then this little area

towards the back there with your sink.

But there is enough space for a kitchen table.

It's in pretty decent condition.

The boiler looks like it has seen better days.

If you are looking to rent this place out,

I don't think there's that much you need to do, just tidy it up a bit.

In fact, the whole flat is like that.

It's great.

OK, so, it is a little bit dark.

But a coat of brighter paint and a few updated units

and it would be fine.

Out of the kitchen, and the unusual layout continues.

Well, upstairs number...

I don't know, I've lost count. Is it four?

I don't know... Yes, lots of...

Anyway, up staircase number whatever-it-is,

to two of the bedrooms.

Before I actually get there, though, woodchip.

Before you go devoting a significant portion of your life to

actually getting it off - it is a nightmare job -

for a rental property, there are people who definitely sing

the praises of woodchip, because...

It is easy to repair.

Somebody damages it,

you just feather in another bit of woodchip, and Bob's your uncle.

But anyway, up here, this little landing area,

bedroom on one side, bedroom on the other.

In the middle, ah, a little bathroom. That's cute.

I like the fact you've got these stripped doors,

that adds a nice feature. Oh, look at that.

Now, I know it's a small thing,

but...just look at that.

What a beautiful door handle.

Gorgeous. It is little things that make a difference.

Like the fact that that floor in there is stripped as well.

It just makes this not a plain, magnolia, boring flat,

it has already got loads of character.

Another beautiful door there. Lots of storage. Quirky ceilings.

A few signs of damp. That wants to be sorted out.

Apart from that,

it's a lovely flat. I really like it.

Across the landing, there is another bedroom,

which completes this side of the flat.

The other side is accessed by, you guessed it,

the staircase to the lounge.

And that way, there is another bedroom and bathroom.

The flat also has a roof terrace with its attendant seagulls,

not for the ornithophobics.

It is reminiscent from a scene from Alfred Hitchcock's The Birds.

SEAGULL SCREECHES

All things considered, it is a very imaginative use of space.

And it is so conveniently positioned for the town's centre.

At a guide price of £40,000 plus, it does seem like a bargain.

I wonder what the auctioneer who sold it would recommend,

rental or resale?

Let's find out.

Because of its proximity

to the river and the town centre,

very easy to let out.

Three bedrooms as well, which is

unusual for a tenanted property in town.

I think if this property was exposed to the rental market,

I think you'd see a rental income

of about £375 per calendar month.

Yeah, I think if it was exposed to the sales market,

you might do a little bit more work.

You might even consider a new kitchen or kitchen tops,

or just dress it up a little bit more.

You might see a sale price in the region of £70,000.

Well, I think this is a really good little flat.

And there is certainly lots going on that is very

positive in the White Sands area of Dumfries.

So, a good potential investment.

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

40 is your guide, who's here?

40 plus.

At 40,000, bid? 35 then, need a bid.

Can't sell without a bid,

ladies and gentlemen. 35 here, back row.

At £35,000. In ones.

36. 37.

37 now on bid. 38.

39. 39, now I've got 40.

41. 42. 43.

44. 45.

46. 47.

48.

You're out. With you at 47.

At £47,000 in the back row, first time.

At £47,000 for the second time. You've run away.

At £47,000, then...

For the third and final time.

I'm selling it. It's in the room.

All done, all out.

Well done, sir.

And brandishing paddle 32 with a successful

bid of £47,000 was Graham.

He retired from being a directional drilling engineer

in the oil industry earlier this year.

Graham, good to meet you.

Congratulations. Tell me why you wanted to buy this flat.

I was looking for a flat to rent.

To get some income for...look forward to a pension,

-that sort of thing, you know?

-Right.

And this came up for auction and the guide price was very good.

Why were you looking for a flat particularly?

I wasn't really looking for a flat,

but this is the one that came up at that time at the right sort of price.

I was looking for something two or three bedroom,

actually with the garden, that sort of thing, but this flat came up.

-And as I say, the price seemed to be correct.

-Right.

And what about the area? Particularly in Dumfries or...?

Well, yes, Dumfries. I live not too far away.

-So I want easy access to service the property, you know?

-Right.

It is actually a nice position, isn't it?

-Quite close to the river and the centre of town.

-Yep.

I think there is a certain amount of refurbishment going on here.

-Mm-hm.

-More landscaping by the river.

-And that should improve the property.

-Now, it's quirky, isn't it?

-Yeah.

-I like it. Now, I love the fact that it is like that.

-I only had a ten-minute preview before the auction.

-Right.

-Cos I couldn't make the open day.

-Ah.

-So, only ten minutes, a quick flash around, you know?

-OK.

And there is a bedroom up there, two bedrooms up here,

and there's a bathroom and a little terrace out the back.

-There's this and that fitted kitchen.

-Yeah.

-I couldn't believe it, yeah.

-But it is in good condition.

-Yeah.

The home report was quite good and the survey was fairly thorough.

Right.

And there are issues with the top two bedrooms,

with water ingression,

-which you don't see now because it has been redecorated.

-Ah.

But the first thing I'm going to do is get a company in,

a professional company, to check all that out.

-Cos that's the most important thing.

-Get the roof sorted.

-Exactly.

-So, is this your first venture into property investment?

-No.

-I bought a pub building north of Aberdeen.

-Oh.

-Which is a pub and a three-bedroom apartment above it.

-Right.

I bought the building

-and I have somebody who runs the pub.

-Right.

-And he lives in the apartment upstairs, you know?

-Oh, wow.

So that's how that works.

So tell me what you are going to do to it, then?

Well, as I say, the roof needs to be checked properly.

Before we start getting into winter.

And the terrace outside,

there is a certain amount to do to the little railing.

And this carpeting...

I'll probably have this cleaned,

but the rest of the carpeting I'll have replaced to match this.

-So it's all that sort of one colour.

-Mm-hm.

-Why? It's all right, isn't it?

-Well, it's...

I think I prefer plain colours.

Yeah, but that has been there for years,

-it is lasting well.

-You like it, do you?

-I mean...

-Yeah, actually.

-Roll it up, take it home.

-What's the point?

"Roll it up and take it home." All right then.

-Yes. But what is wrong with it?

-It's OK, it's just...

I'll give it a clean, see what it looks like. Save some money.

It has been there for years. Good old English carpet.

-That depends how much the...the roof may cost.

-Right.

To do some repairs up there.

-Cos I'm pretty sure there will be repairs to do.

-Yeah, yeah.

-But I've got a budget.

-Which is?

Well, I expected to pay 50,000 for it, so that leaves me about 3,000.

-Nice.

-I'd keep it at the same price

and that 3,000 will cover basically everything I need to do to it.

What kind of rental return do you think you might get?

Well, 450 to 500 a month.

So, if you got 500 a month, that is way over ten percent.

That's good, isn't it?

-Better than one percent at the bank.

-Well, yeah!

Plus you've got the capital gain as well.

Wow. Yeah. Result.

Now, you have got quite a few tenants already, haven't you?

Of the feathered variety.

So I see.

What are you going to do about them? Get a cat or something?

What would you suggest?

-A cat maybe. It's the cheapest solution.

-An air gun?

-An air... No!

-I don't know.

-I think that's just cities now, what can you do?

-Yeah.

-Have to live with them, I think.

-Well, listen, congratulations.

-Good luck with it.

-Thank you.

-Look forward to seeing how you get on.

-Thanks very much.

Well, I think Graham has done well with this little property

in Dumfries.

But joking apart, in terms of the carpet,

when you are doing up a property, especially if you are going to rent

it out, just look around and say, "Do I really need to replace that?"

Because in this case, I don't think you do.

Will he or won't he? With £3,000 to spend

on the refurbishment, I think you might be forced to keep it.

You can find out how it all turns out later in the show.

Planning permission, adverse weather, just finding the time.

So many things can affect the rate of renovation of a property.

Well, we've seen how one of our buyers has got on.

Let's check out the others.

Back now to the quiet village of St Michaels, near Tenterden,

in Kent, where we met Ken,

who owns a chicken farm in nearby Ashford with his wife, Laura.

They collect and sell the eggs from their 12,000 chickens.

But we met him

because he also finds the time to build new properties, which is

why he bought this plot of land with planning permission

for a two-bedroom detached bungalow and a four-bedroom detached house.

He secured the land with a successful bid of 195,000.

Are you happy with the lot you bought on the day or do you

-want to tweak?

-No, we're going to be building it as it is.

We are happy with the plans.

Going back to planning loses time, money,

so we are going to build it out as is.

# And all the plans we made... #

But I had concerns about the narrow access driveway.

Do you think that might be a downside to this site?

Yeah, it might do. But then, that reflects in the price.

We're back almost a year to the day that we first filmed,

and what a difference it has made to the secluded spot of overgrown

land I remember meandering through.

# I walked across

# An empty land

# I knew the pathway like the back of my hand. #

That pathway is now the shared driveway.

But work is not quite complete here, so it is too early to say

if the communal narrow entrance is working well or not.

The house would suit a family

and the bungalow is aimed at the retirement market.

# I'm getting older

# And I need something to rely on. #

Ken did use local brick and tile finishes,

truly Kentish in character.

He was right when he said the reality would be better

than the plans.

And inside the house...

# Is this the place we used to love

# Is this the place that I've been dreaming of? #

It is an impressive specification. First floor. Landing.

Bedroom one, with en-suite shower room.

Bedroom two, with en-suite shower room.

Two further bedrooms and family bathroom with loo.

And, wow, just look at the size of it!

The ground floor is just as spacious,

with entrance hall, cloak room,

toilet,

living room,

study,

dining room,

kitchen and utility.

Clearly, Ken missed his true vocation

when he went into chicken farming.

Ken's business model is to buy land

and build to the already granted plans.

But sometimes he must wish he could have done something different.

I would've made the bedrooms slightly bigger and the bathroom

slightly smaller, to be fair.

That is probably one of the biggest bathrooms I've seen.

Definitely for what I have done in the past.

That makes two of us.

Another thing that was bigger than anticipated was the timescale.

Ken originally estimated four to five months.

And here we are, almost a year on.

What went wrong?

The problem was the groundwork cos it was a very, very wet winter.

The foundations kept collapsing in.

So, every day we had three or four blokes in there digging it out

by hand in mud.

I think we lost nearly eight weeks.

And it is still not finished.

What's left to do?

We've still got left some of the fixed electrics to do.

We've still got a little bit of plumbing to finish, shower trays,

etc. Decorating.

Tarmac-ing off the drive.

I think that's pretty much it.

And has the overrun had much impact on the original budget?

I gave it a budget of 300,000

and I think I've come in about 260.

So I am a little bit under. I'm quite pleased with that.

Quite pleased? I am gob smacked!

Two nicely finished homes

for £260,000?

I think that is good going.

But what will two local estate agents make of the development?

Ken paid 195,000 at auction

and a further 260,000 developing

the site, making a total spend of 455,000.

Will it be money well spent?

There is certainly great demand for both types of these properties.

And I would be very confident in both of these properties

selling very quickly.

This is my second time on site.

I am very impressed with the development.

It fills the plot very well,

but at the same time, leaving plenty of space around it.

Ken has been clear from the outset -

he only billed for the resale market.

So, starting with the bungalow,

what do the agents feel would be a good valuation?

If the bungalow was to be put up for sale, we would recommend an asking

price of around £350,000, with a view to take an offer of about 345.

I would assume a price to achieve in the region of

£325,000.

How much is the house worth?

The four-bedroom detached house,

if that was to be put on the market for sale, I would expect to

achieve a sale price in the region of £450,000.

If they decide to put the detached house on the market, we would

predict achieving an asking price in the region of £450,000.

The top valuations for the two properties

give a total of 795,000.

If he were to achieve them, that would give him a potential

profit of £340,000, minus all taxes and fees, of course.

Not chicken feed in anyone's book.

Well, that there is actually what we are going to market them at.

So I will be very happy with that if I can achieve that price.

Ken reckons he will be completed and off the site in three weeks.

But he's not resting on his laurels.

I've just purchased another site,

just up the road,

for the conversion of a pub into a house.

So that is where we are going to go from here.

# I got a new field to plough. #

A sign of the times, I suppose.

A pub being converted into a house?!

But I'm sure it will be another profitable venture for Ken

and his team.

Back now to Scotland and the town of Dumfries,

where I met Graham, who has recently retired as a directional

drilling engineer in the oil industry.

He bought this spacious three-bedroom, first-floor flat

for £47,000 and plans to enhance his pension by renting out the property.

And it looked like he'd made a very shrewd move.

What kind of rental return do you think you might get?

Well, 450 to 500 a month.

So, if you got 500 month, that is way over ten percent.

Yeah, that's good, isn't it?

-Better than one percent at the bank.

-Well, yeah!

-Plus you get the capital gain as well.

-Wow. Yeah. Result.

There were things about this quirky flat I just loved.

The brick thing... It's warm. I like bricks.

It's just... I do, I like it.

The fact that there is more over there are,

probably would cover that one up.

And I was all for keeping another feature.

-That's been there for years.

-You like it, do you?

-Well, I mean, yeah, actually!

-Roll it up, take it home.

What's the point?

"Roll it up, take it home." All right then.

-Yes, but what's wrong with it?

-It's OK.

-I'll give it a clean, see what it looks like.

-Yeah.

For me, the flat worked on many levels, which was a good job,

because it appeared to have many levels.

In fact, there were so many staircases, at one point,

I lost count.

We are back just four weeks later to see how he is getting on.

The main problem with the building was the roof.

There was water ingression.

I can show you from here the repair work that has been done on the roof.

The two gullies either side of this pitch have been replaced with lead.

The skylight has been refitted and sealed.

And all the tiles have been checked and replaced with about 40 tiles.

And the pins checked and replaced.

And that should solve the water ingression problem.

So what about those other potential problems?

Would noise from the pub next door put off prospective tenants?

And talking of tenants, there have been additions to the

feathered ones in residence on the roof terrace -

a couple of seagull chicks.

# Like birds of a feather

# We got to stick together Like birds of a feather now. #

Um, I don't think there's a major issue with noise.

Maybe on the weekends.

But any time I've been here, apart from the seagulls...

HE LAUGHS

But that should be solved once the chicks fly away, you know.

I don't think there is a major problem with that here.

So, how much did Graham have to roll up his sleeves

and get stuck in when it came to the big jobs like the roof?

Well, I was on the roof for the two-day period.

But I didn't actually have any hands-on work to do, you know.

So I made tea and coffee.

I had new carpeting done.

I took Martin's advise, so we replaced this carpet in this room.

And then refitted the Wilshire carpet in the landing and the stairs.

And that total cost was...

I think it was £160.

It has been hard to spot the difference from four weeks ago.

One thing that does stand out is the banister fitted to the

staircase by the lounge.

And Graham did paint it himself.

Graham has completed some other essential jobs.

With rented residential accommodation, it is

the landlord's responsibility to ensure that the electrical

installation and appliances provided are safe when the tenancy

begins and are in proper working order throughout the tenancy,

which is why Graham has to replace the old fuse box.

So, let's get an idea if his fixes have made it more rentable.

We called in two local property experts to get their opinions.

Graham's original timescale was two months.

With just the consuming unit to fit next week,

he should have completed in just five weeks.

He reckons to have spent £1,800 of his £3,000 refurbishment

budget, plus the £47,000 he spent at auction.

Yeah, I think he has done what he needed to do

perhaps, maybe, to expose it to the rental market.

The biggest problem with the property, I think,

was the roof and the damp that was caused by the gutters, etc.

That has obviously all been done.

The fixes have been done for the gas.

Painted. Tidied up. New carpets.

Ready to go, really. Good job.

Well, it looks as though some work has been done,

but there is still quite a bit left to be done.

I think it is presentable enough,

but it is not top quality.

I think the kitchen could be doing with a bit more work on it,

for example.

The decor is fairly basic, not everyone loves magnolia.

What I like about this property is its location.

I think if you were to rent this property out,

you may have to change tenants from time to time,

but I don't think you'll experience any void periods.

And if there are, it won't be for long,

cos there are always in demand in this particular area of the town.

So its location is the best part about this particular property.

And what about the sitting and flying tenants?

Are they going to detract from the valuation?

The seagulls are a big problem in Dumfries, actually.

It has been a hot topic here for a long time.

I think the balcony itself has a lot of potential

and it is quite appealing.

It is a surprising thing to have in a flat like this.

Next, that all-important rental valuation.

Graham has already let the property

and the new tenant moves in imminently.

He was hoping for £500 per calendar month,

but he is getting £450 per calendar month,

less the 12% commission to the property management agency.

Let's see if it is a good deal.

I think if you are renting out the entire flat,

you could probably achieve somewhere in the region of about 400,

up to £450 per calendar month.

I think if this property was exposed to the rental market,

I think it would achieve between £425, £450 per calendar month.

450 is correct. Because that's what I'm getting, so that's fine. Yeah.

Less the 12% agency fee, leaving Graham £395

per calendar month, giving him a yield of just under ten percent.

In total, his spend has been £48,800.

I think if this property was exposed to the sales market, I think

you would probably achieve a figure in the region of £65,000.

Well, in its present condition, I would think somewhere

in the region of about £65,000 might be a fair figure.

That sounds reasonable, yes. Yep.

In just four weeks, that is £16,200 potential profit,

minus the usual taxes and expenses.

Is it tempting to sell?

At the minute, I'm going to just

collect the rent. HE LAUGHS

Now, did those stories inspire you or give you pause for thought?

Well, join us next time for more tales from the world

of the auction rooms here, on Homes Under The Hammer.

-Goodbye.

-Goodbye.