Episode 47 Homes Under the Hammer

Hello and welcome to the show.

Now, the property market is on the up in certain parts of the country

and that means that bargains could be harder to find.

But you're going to have to track them down

if you want a decent return on your money.

But there is one place you could probably go...

You know what I'm going to say, don't you, Lucy?

-Yup. A property auction.

-Bingo.

People go to auction with a wide range of budgets

because they're looking to get a good deal.

Yes, but did they find one?

Here are the properties that we're featuring on today's show.

Demolition day on Homes Under The Hammer,

and, in Devon, it needs big work to avoid big disappointment.

You have got to be kidding!

Near Stoke, I've got a quick fix for some lay-out issues.

Just take it all out. Make it all open-plan. That's what people want.

Knock it all down.

And in East Kilbride, the walls already have holes.

One of them, I quite like.

Yay, a serving hatch. Everybody loves these. Morning!

All these properties were bought at auction and we'll find out

who got them and how much they paid

when these homes went under the hammer.

Yours, well done.

Devon. One of my favourite places. Even on a wild day like this one.

I'm visiting a hamlet called Hollacombe.

Well, it may be a very wet and blustery day here in Devon,

but I'm not going to let it rain on my parade

because the auction catalogue described the lot

that I'm here to see as "a rare and interesting opportunity."

The property's tucked away along this path,

which is a very pretty start indeed.

It's a long walk - hope it's worth it.

Music: I'm Gonna Be (500 Miles) By The Proclaimers.

# But I would walk 500 miles and I would walk 500 more

# Just to be the man who walked a thousand miles

# To fall down at your door. #

Ah.

You have got to be kidding!

Oh, no. Is it as bad inside? No!

Yes. It is as bad as it looks. What a disappointment!

After the build-up of the lovely, secluded location,

I was hoping for more than a beat-up bungalow.

As it turns out, there's much more.

But thankfully, it's not all bad news.

Because, for a guide price of £200-300,000, not only do you get

that property, you get over an acre of land and this property as well.

Fingers crossed.

I know, I know, you shouldn't judge a book by its cover.

But surely it's an improvement on that neighbouring property.

Thank goodness for that.

This lower property is actually a delight.

You walk through the door there,

which I guess is at the rear of the property,

straight into a really nicely-designed kitchen.

Fairly modern-looking. All the appliances seem to work.

And...the trek just might have been worth it.

So far, this bungalow is in much better condition.

At least on the face of it.

There is a smallish bedroom.

And then a double bedroom.

And then a very big bathroom with no bath.

And then, when is a bungalow not really a bungalow?

When it has a downstairs living room, of course.

So, all well and good,

but what makes this a rare and exciting opportunity?

Well, you could basically redevelop the two existing properties.

One's going to be quite difficult given its state. This one, less so.

But the real magic is the prospect of redevelopment.

It's hinted at in the auction catalogue

and why not think about that?

Why not maybe build one fantastic, dream house on this location?

Or possibly even - you've got the space for it, 1.3 acres -

build more houses. Four, five, six, who knows? All down to planning.

But the one thing you've got in your favour is the location.

And that view can't be beaten.

Music: I Can See Clearly Now by Jimmy Cliff

# I can see clearly now the rain is gone

-# It's gonna be a bright...

-Bright...

# Bright sunshiny day. #

I admit, the weather is not warm today.

In fact, it's blooming freezing.

But this location has certainly fired me up.

You could lose yourself in these spectacular views.

And something else to lose are the two bungalows.

I mean, a dream site needs a dream house, doesn't it?

But time to get a grip, because of course, there is a snag - access.

You can't get a car down here, far less building materials.

Whoever buys this will need to negotiate with the neighbours

to see if they can buy some of their land to make a wider drive.

No guarantee they will agree, and, of course,

there'll be the cost that needs factoring in.

At a guide price of £200-300,000,

this lot does represent a huge amount of potential.

We've asked along a local estate agent

to tell us their thoughts on this substantial auction lot.

A new owner will have the issue immediately to deal with the access.

Only pedestrian at the moment and, if you're looking to create dwellings,

you'll need vehicular access to get the cars off the road, etc.

So that will be a major issue, unless, of course,

you're one of the adjoining neighbours who happens to buy this

when you'll have plenty of opportunity

to get a new vehicular access into the properties.

The good news is that planning for vehicular access is in place,

but you still have to agree terms and price with the neighbours.

Let's put access issues to the side.

What if you renovated these bungalows?

The bungalows, once refurbished,

could fetch somewhere in the region of £300,000 each.

If the bungalows were flattened down and in its replacement

was a large, detached, palatial property, you could put it

on the market for somewhere in the region of £750,000 upwards.

Well, it is a really interesting opportunity

and you can see the appeal.

But it's not without its problems, the biggest one, of course,

being that access issue. Who wanted to take it on?

Let's find out when it went under the hammer.

Making the best of what's there or maybe going for new.

Who's going to say 225 to get us going? 225?

225? 225?

200? Who can offer 200? Nice and simply.

Well, where do you want me to start? I'll have one go, less than 175.

There we go, we're away. 175. 175.

Man with a van, 175. 180? Not going to two, just 180. 85?

190. 195? 195? 195.

Oh, heavens.

At 195. At 195. At 195.

197 and a half, if you reverse? OK, 197 and a half. 197 and a half.

Two, do I? At 197 and a half.

198, good heavens. 198. 198. At 198. At 198.

You're sure and done, then.

At... Ooh, 199. 199. You fill it up.

A half I'd take, just to see if the gentleman would go to 200.

Are we ever going to find out? 199, first time, then.

Time to move on. At 199, second time.

199, three and done. Here we go, last chance. There it is. At 199.

You're missing it. You are missing it. At 199. Sir, yours.

The successful bidders getting this wonderful lot for £199,000

were husband and wife, Roy and Angela.

The couple know this area very well indeed, as they own

the pair of semi-detached properties at the top of the lane.

So, no worries about that access issue.

-Roy, Angela, great to meet you. How are you?

-Fine, actually.

-Wet but fine.

-Wet but fine. Happy, presumably.

-Yes.

It went for less than I thought it might.

That was more than we thought we were going to have to pay, but...

-Really?

-It was.

It's a massive amount, massive amount of land and what a view.

-But it was landlocked.

-Ah.

-That's the problem. They only had pedestrian access.

-Yes.

So it made the land, even though it's a fantastic site, restricted.

Let me get this right, you now own...

-Well, basically all the properties in this little...

-Yes.

-Everything in this patch, yes.

-Fantastic.

-It is.

We've just got to work out what to do with them now.

I was going to say, do you have a plan? Why did you buy it?

-We never had an end objective, did we?

-No.

-Really?

Other than to own them

and to control what might be developed here.

Now we've got them and we've had a look around for a few weeks,

and wonder what we might do, yes, we have preliminary plans.

Which change weekly.

But our preliminary thoughts are

that we will put in an access road down the side.

And we will replace these two cottages,

probably in a completely different configuration.

-Our early thoughts are Scandinavian log-cabin type places.

-Ooh.

Completely eco-friendly and self-sufficient in energy.

-Wow. And quite quick to build as well.

-Fairly quick to build.

They're the first thoughts.

And then one would be big enough for us to move into.

While we think about what we do with the two semis at the top.

But this project is ruled by the heart, not the head.

Roy and Angela have strong connections here.

The semi they live in was owned by Angela's parents from the 1950s

and they then used it as a holiday home before settling here

finally 18 months ago.

They want to create something

that sits well in this beautiful location, so phase one,

subject to planning permission of course,

is to demolish the bungalows, build the new houses

and move into one while redeveloping the two semis

at the top of the hill and creating access - all in 15 months.

-So, what's the budget?

-I was worried you were going to ask me that.

-We didn't actually buy these with a budget in mind.

-So...

As you've specifically asked, I reckon we will do the two cottages

and the roadway for between 250,000 and 300,000.

So, by that point, you will have getting on for half a million quid

-invested in this little venture.

-Down here, yeah.

And we'd have two cottages, garages, green houses...

-..fantastic views when it doesn't rain.

-Yeah.

-Worth half a million.

Could we sell for 250,000 each if we wanted to?

-Yes, no problem.

-Right. Well, listen. Congratulations.

-Thank you very much.

-It's a lovely story.

Can't wait to see how you get on.

Well, it was an obvious purchase for Roy and Angela, wasn't it?

In terms of what they're going to do to it, though,

it all seems a bit up in the air.

And I don't think they've got their heads round actually owning it yet.

Apart from the fact that they are certainly

going to develop the upper part for themselves.

Quite right too.

You can find out what happens to this amazing plot in Devon

later in the show.

Welcome to Smallthorne near Stoke.

You might find yourself rather puzzled by some street names here,

but that's because they were the pet project

of one of Stoke's Lord Mayors, Horace Barks,

who was a great fan of Esperanto and did a lot to promote it.

The pub was at one time called La Verda Stelo or The Green Star

to us non-Esperanto speakers.

Sanon!

What's particularly pleasing is the good quantity

of ex-local authority stock with its little pathways and lanes.

And that's what we're here to see.

So, up this little path to the front

of what was described in the auction catalogue

as a two-bedroomed, mid townhouse.

Guide price, 54,000 quid.

Useful little porch area there.

And into your lounge. One big space, but it is quite big.

I think, with redecoration, it would immediately give a nice impression

as you walk through the door.

Gas fire there and my suspicion is it's a back boiler

which you definitely need to have checked out

and possibly replaced with a combi.

But interesting design this, actually.

You've got this big area here, and then through this little corridor.

Stairs up to your bedrooms there.

Lots of storage-y areas. And through into your kitchen. As designs go...

..I've seen better.

Cos there's this huge great pillar thing in the middle.

What is that in there? Nothing, just a cupboard. I mean...

It sort of doesn't quite flow. Then you've got this bit of glass.

Admittedly, that throws lots of light into this kitchen

which is a good thing.

But it just seems a bit strange, doesn't it?

Would you get rid of that?

I think I probably would.

But then you'd lose this work surface and the kitchen's a bit...

Just take it all out. Make it all open-plan. That's what people want.

Knock it all down. A few beams. Be done with it.

Music: Tear Down These Walls by Billy Ocean

# Tear down these walls It's got to be all or nothing

# Tear it down Tear it down. #

Oh, boy. The first thing to factor in is the plastering bill.

There's a lot of textured walls and ceilings here.

But plenty of storage space and a good lay-out.

Time to say a big YELLOW to upstairs.

For a relatively small house,

it does actually feel quite expansive once you get inside.

Certainly lots of storage.

Up here, good news, you've got a bathroom - separate loo,

age-old question, do you knock them together?

Lots of storage all over the place. And that's good.

That really is a bonus.

A bedroom to that side

and then an almost identical-sized one over here.

Again, two good double-sized bedrooms.

And actually, this could be pretty much up and running

without too much effort.

Ignoring the variety of plastering needed up the stairs,

let's go downstairs and have a look in the back garden.

So technically, I suppose, this is the back of the property.

You've got a rear entrance with a double gate there

leading into this little carport area. So that's good.

But I can imagine this becoming your main route in and out

of the house because you've got access to a road there, little gate,

you've also got this carport, so, if you've got a car,

you're going to be parking your car in here, unloading your shopping

or whatever and then going back into the house that way.

It's a decent-sized space.

Obviously needs a bit of tender loving care

and, as for this carport, it might have seen better days

but at least it will keep the rain off your pride and joy.

The carport's certainly a handy little addition, but I suspect,

in the condition it's in, you would be better just to knock it down.

Time for a local estate agent to give us

an MOT on this property, guided at £54,000.

The positive to the property is it's very spacious.

Two good-sized double bedrooms and a good-sized living room

and a good-sized kitchen.

People will want to modernise this property.

It does require a new bathroom and a new kitchen.

If the property was renovated to a good standard,

I would be looking to put the property back on the open market

for an asking price of £74,950.

The rental market in Smallthorne is very buoyant.

I'd look to put this property on the open market

for £450 per calendar month.

Well, a bit of cosmetic work needed to sort this one out.

But once you've done that, it's pretty much ready to roll

as a rental investment or a pretty good place to live.

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

Two-bedroom mid townhouse.

Gas central heating, a carport, double glazing

and there is a front garden.

50 to start?

Mid townhouse. Two bedrooms. 50, can I say?

50 bid, thank you. 50 there. £50,000. At £50,000.

52 can I see now? At £50,000. Looking for 52 now.

At 50,000. 52. In front of the door at 52,000. 54? 54.

56. At 56,000. 58?

One, he's saying. 57.

58, 59, 60?

No, at £59,000. Looking for 60 now.

At £59,000, new bidder on the left?

Got you at 60. In the room at 60. 61?

No. Bid's at 60. Standing left at 60,000. Got him at £60,000.

61, it'll cost you on the net.

If not, £60,000 to my left, then. For the first time.

£60,000 for the second time. Third and final time at £60,000.

You bought it. Well done.

Clearly chuffed at getting the property for 60,000

was former trainee accountant, Lee.

I went along to meet him to find out if he thinks the numbers stack up.

-Lee, great to meet you.

-Yeah, nice to meet you too, Martin.

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this place.

Well, as you see for yourself,

there's a bit of work that needs to be done. It's a project.

It's going to turn into a buy-to-let.

Get a tenant in it and see where it goes.

-Right. Is this something you do?

-I've done a few in the past.

But more to the point, I've learned my lessons from buying it,

renting it and hoping to sell it.

More at the point of now buying it and just letting it.

Doing a little bit of work and letting them out.

So how long have you been doing it for?

-Probably bought my first house about five years ago.

-OK.

But seriously over the last two years,

I've been going a bit more into the rental market.

Right. So what do you think the biggest lessons you've learned are?

Erm... Well, five years ago after buying my first house,

I woke up in hospital maybe two months later.

-What do you mean?

-Helicopter rescue.

-What?!

-Yeah. So, anyway, I've overcome all that now.

-Stop, stop, stop.

So you bought your first house. You ended up...

-I bought my first house at auction.

-Right.

-You ended up having a helicopter rescue.

-I had a sporting accident.

-Oh.

-So I've perhaps learned my lesson there,

not to go kitesurfing again.

Kitesurfing. Oh, no. What happened?

I woke up in hospital six weeks later. I don't know.

Anyway, I've forgotten about that now. Concentrating on property.

Right.

# And it's time I moved on... #

Lee has moved on, with no small thanks to his family.

When Lee awoke from his coma,

he discovered his grandfather had paid the remaining amount

for the property, saving his deposit,

and that set Lee on the road to development.

So far, he's renovated nine properties,

so has a good team of tradespeople to call on.

So talk me through exactly what the plans are for this house, then.

So, if I'm honest with you, when I bought the property,

I had a really small budget and I thought,

"I don't need to do anything. A lick of paint here, a lick of paint there, new combi boiler."

But now I'm in the property - plastering, doing away with.

I'll have a new kitchen. I'll replace the toilet, bath, sink.

And full decoration. Obviously, new carpets.

-The bulk of the work is going to be putting a gas combi boiler in.

-Right.

Just depends whether the plumber

can get away with the original plumbing fittings that are in,

or he might have to re-pipe it,

so that could be a budget that goes from £500 to a grand,

but we'll have to see what he says.

Lee seems to know what he's doing with this house.

He's confident of having this place ready in four weeks.

But he keeps mentioning the budget

and I'm wondering how much he really has to spend.

-What is the budget?

-Ha, so the budget for all this work is £4,000.

-OK.

-And I've got a short timescale as well because, obviously,

the longer it goes on, the more it's costing you.

And then more properties on the horizon, I guess?

Erm, when you're knee-deep in dirt here,

I say I'm never doing this again,

but as soon as somebody moves in, get me another property.

-You speak a lot of sense.

-A lot of people wouldn't say that!

-You do.

Really, you do.

Good luck with it all, and look forward to see how you get on.

-Thank you, Martin.

-Nice to meet you.

Well, Lee really does speak a lot of sense.

I think he's got exactly the right plans for this property.

Will he get it sorted out in four weeks though

and on that very tight budget?

You can find out later in the show.

Coming up, in East Kilbride,

it's more than profit being wrought from this property.

So you're the wrought iron man.

You're going to bring that balcony to life.

And in Smallthrone, can Lee wring any profit,

-or has he blown the budget?

-Quick total on the numbers.

Unfortunately, I've come over that budget.

Welcome back to the dramatic coastline of Devon

and the hamlet of Hollacombe, where earlier I found two bungalows -

one tired, the other dilapidated -

on a perfectly placed plot with some spectacular views.

They were bought for £199,000 by husband and wife, Roy and Angela,

who not only owned these properties, but also the pair of semis

at the top of the path leading to their new acquisition.

They were delighted with their purchase

but hadn't really decided what they were going to do next.

Do you have a plan? Why did you buy it?

-We never had an end objective, did we?

-Really?

Other than to own them

and to control what might be developed here.

Now we've got them and we've had a look around for a few weeks

and wonder what we might do, yes, we have preliminary plans.

Which change weekly.

They had so many options, but whatever they chose to do,

it was definitely going to be big.

Getting an access road sorted was a priority,

but after that, the eventual outcome was anyone's guess.

Two years later, and I can't wait to see what they decided to do.

Wow! I'm impressed.

Where once stood a dated bungalow

is now a stunning three-bedroom, split-level home.

Time to step inside, I think.

Drag yourself away from this beautiful kitchen

and upstairs will take your breath away just as much.

On the level down are the three double bedrooms...

..with this master bedroom featuring a stylish en-suite.

The main bathroom is contemporary and beautifully finished.

And there's a very smart utility room on this level too.

Go upstairs into the loft room, underneath the unpacked boxes

could eventually be another bedroom.

From top to bottom,

this newly-built property oozes charm and desirability,

with the kitchen looking out onto those stunning views

a particular highlight.

I think this is our favourite room, the kitchen/dining room.

Works brilliantly well, and as you can see, the view is just stunning.

Along with the three-bed house,

Roy has also completed two double garages

and a shed, which houses a biomass boiler,

heating the completed house and any potential future houses.

The all-important vehicular access road is nearing completion

and whilst there is still work to be done here, including a fair bit

of landscaping, what has been done is of a very high standard indeed.

But it has been a long and winding road to get to this point.

When we finally acquired all the site and put the drive in,

the real problem for us was to decide what to do.

We changed our minds at least ten times,

but eventually, came up with the scheme we're now going forward with.

We were delayed initially because of bats in the derelict property,

so that was a problem to provide a garage and had to build that

entirely separately first before we could really get going.

So we call that our phase one.

Demolition was a problem because we had asbestos and...

Which had to be disposed of

properly and professionally. And then the actual building.

But we had a good foreman that I came across right at the beginning

who was able to put us in touch with tradesmen

who have worked out really well for us.

So overall, it's gone pretty smoothly.

It's great that Roy is so positive,

considering the challenges he's faced, particularly that bat issue.

Bats are a protected species in Britain,

so Roy had to provide new lodgings for his guests

which are now in the roof of the double garage.

It's taken two years to get to this point, but they're not done yet.

They still plan to demolish the properties at the top of the drive

and build two new four-bedroom detached properties there,

with a view to moving into one of them once complete.

For now though, Roy and Angela are living in the completed property

along with their daughter and her husband.

But with the project ongoing, what's been Roy's role up to now?

Well, I sort of project managed.

Bought all the materials, hired in the labour.

Did I physically put my elbow grease in and do work? No.

-HE LAUGHS

-No, not my scene, I'm afraid.

The initial budget of £250-300,000 was always a bit of a guess,

as Roy and Angela hadn't decided exactly what they wanted to do.

So how close a guess was it?

That's totally gone out of the window.

And our total spend to date has been 375,000,

but that includes the garage we built for the bats,

that includes the biomass boiler...

The house - the house and garage - we have spent 253,000 to date.

And we have, I'm guessing, probably around another 15,000 to spend.

Roy and Angela bought the site for £199,000.

They've demolished the two bungalows,

built two garages, created an amazing house

and built a really good access road which is still to be completed.

And their final projected spend on the project is £589,000.

What do two local estate agents think?

Starting with the agent who saw it originally.

The transformation is absolutely wonderful.

This property certainly has that wow factor that you don't use very often

when you come to inspect properties, but this certainly has got it.

And that gable end,

contemporary-style, glass-fronted window, just does it for you.

The build quality inside is far superior

to a lot of modern-build houses you would get on the open market.

No doubt it's a fabulous house.

The agents believe it could fetch between £1,800 and £2,000

per calendar month, if it was rented,

offering just over a 4% yield.

But that won't be of any interest to Roy and Angela - or will it?

Well, if our son ends up renting this home in the future,

that's really useful to know.

-That may pay our nursing home fees.

-Yes.

-THEY LAUGH

Well, on that cheery note, let's move to the valuations

with that £589,000 projected end spend invested.

If the property was to go onto the market today,

I would be recommending an asking price of £695,000

and I would expect to achieve a figure very close to that.

If the property was to be placed on the market,

you'd be likely to receive somewhere in the region of £750,000.

I think the valuations, really, to be honest, are a little on the low side.

I would be expecting more money for the house

because I think it's unique.

A lot of effort has gone into it, so I think they're on the low side.

Even with Angela's reservations, that top valuation of £750,000

would bring in a pre-tax profit of £171,000.

And the project is only half finished,

with the two properties they originally

owned at the top of the drive being demolished in the next two weeks.

But with a chance to reflect, how are they feeling about the project?

It's great. It's not really stressful.

Only trying to describe to my wife what was actually going to happen.

Time and time again.

Time and time again, as you correctly say.

But you've done very well.

Thank you, dear. Thank you.

The post-war solution to the housing crisis

was the building of new towns.

East Kilbride was one of the first in Scotland.

The town was subdivided into residential precincts

and Westwood is one of those.

It has its own shops, schools and community amenities.

And it's a great place for commuters

as it's only 20 minutes away from Glasgow.

It's just a 10 to 15 minute walk from the town centre

and a few minutes away from the local shops.

Well, here I am, it's a two-bedroom, top-floor flat in this building.

The guide price - £44,500 plus. Looks a bit grey from the outside.

It might be in better condition on the inside. I'm going up.

Music: Get Up! (Before The Night Is Over) By Technotronic

# Get up, get up, get busy, do it Get up and move that body

-# Get up, people, now get down to it

-Before the night is over

# Get up, get up, get busy do it

# I wanna see you party

-# Get up, people, now get down to it

-Before the night is over

# Get down! Get up! # SHE PANTS

Call me unfit.

That is quite a lot of stairs to climb,

so people that aren't fit need not apply for this one.

Phew! OK. Let's have a good look around. So what have we got?

Nice wide hallway. Storage space in here.

A rather unusual tiled bathroom through there.

We've got a bedroom - again, nice and spacious.

Airing cupboard, always love to have one of those.

Bedroom number two through here.

Lovely big windows, lots of greenery on the outside.

Quite a lot of this textured plaster going on, though.

And the kitchen...

Yay, a serving hatch. Everybody loves these. Morning!

So the kitchen, let's have a good old look around.

How can we improve this? Well, for starters, ahem...

Polystyrene tiles, fire hazard. They've got to do.

Just get every polystyrene tile off every single ceiling

because they are everywhere.

Boiler, little bit cumbersome.

We could probably reduce that, have a combi.

You've got all the exterior pipe work showing.

You may even be able to relocate that somewhere else.

And it just needs a general tidy up. The units look really old-fashioned.

You could do with something a lot more modern here.

But these properties, they were made to last.

And with a nice overhaul on this place,

you could have a cracking property.

And believe me, overhaul isn't too strong a word.

But the lounge has access to a balcony

and some unusual fitted furniture.

The wiring looks like it's been overloaded rather than overhauled.

And as for that bathroom,

I'd rather take a rain check than a shower in there, thanks.

That said, I'm sure after a good refurbishment,

this property would easily rent out.

Because East Kilbride has been so successful as a new town,

it's still very popular as a place to live and work.

So these flats are very much in demand.

Now, the council have re-rendered many similar properties

around this area already

and it really is just a matter of time before this one is done too

and that will make the whole area so much more aesthetically pleasing.

The roof has already been done, so that's good news.

Of course, you have to factor in any share of the costs

of any future work.

But I think this is looking good.

What can an expert from the auction house who sold it

tell us about this area?

These properties are great starter flats.

They're also fantastic buy-to-lets.

And the buy-to-let market in East Kilbride is very, very strong.

So that's why you'll normally see,

if you drive down a street in East Kilbride,

there's predominantly quite a lot of boards up,

but they will go to sold just as quickly as they come on the market.

The average home report valuation at the moment would probably

be around about 65 in its current condition.

If it's done up, it could be slightly more.

It would depend on the finish but it would be around about,

I would say, £65,000.

This being a popular commuter area to Glasgow,

what sort of rental could you expect?

Dependant on the condition, they normally would go for somewhere

in the region of £425 per calendar month to £450 per calendar month.

With this property, you've got to see through the dirt

and the dust and envisage a lovely, new rendered exterior

and you've got yourself a great flat.

Handy for the town centre and it's an easy commute to Glasgow too.

Let's see who thought this flat has potential

when it went under the hammer.

Great buy-to-let, close to the town centre.

44 and a half. Let's start at 40.

At £40,000. 35, then? At 35, I'm bid. In once. At £35,000.

Bit early for halves, man. I can't count. 35 and a half. 36. Half.

No? With you at 36. Half here. Seven.

The auctioneer does continue in £500 bids

until we rejoin the bidding at £40,000.

At £40,000. Are we all done?

At £40,000, then. First time. Half. 41.

You're not sure now. With you, sir, at £40,500.

Are we all done, then? At £40,500... 41. You're back in. Half?

Two. Half. Three. Half.

43 and a half.

Not sure. With you at 43,500. 44. Half?

Nearly. Might be worth it.

At £44,000, then.

At £44,000. For the first time.

With you. 44 and a half. 45.

The bidding doesn't let up

as we pass the guide price of £44,500.

We rejoin at £45,750.

45,750. 46.

250. You're out. You're in at 46.

At £46,000, then. Are we done? Here to sell, in the room at £46,000.

First time.

Second time.

Third and final time, then, £46,000. Selling away.

Well done, sir.

Good bidding. 291.

The successful bidder,

finally getting the property for £46,000, was Neil.

He braved the stairs along with his wife, Sally,

to tell me what his plans for the flat were.

-Neil and Sally, congratulations.

-Thank you.

Why did you want to buy this flat?

We've got several buy-to-let properties now

and we just wanted to add to our portfolio.

It's a good area. Good price.

You didn't have to creep too much over the guide price,

which is a good thing.

Yeah, the guide price was 44,500 and we paid 46.

46 was my very last bid.

I was at the auction with my brother and he's an accountant, so...

He had my figures screwed right down.

So you were happy with what you paid on the day?

-Yeah, it was a good price, we felt.

-So what are you going to do?

-Is this a buy-to-let project for you?

-Yes.

This will be a buy-to-let project, yes.

We're going to replace bathroom, kitchen,

and we'll re-plaster the property throughout.

-The ceiling, all the walls.

-New windows, new doors.

Oh, I'm glad you've said that, cos everything was on my tick-box list.

Shall we start with the kitchen?

What are you going to do to change that?

Well, we're hoping to move the boiler

and try and put that into the cupboard in the hall.

Just to give a bit more room in there.

-And we're going to replace the entire kitchen.

-Laminate floors.

At the end of the day,

we've got to realise that it is a rental property,

-so it will be a good standard but it won't be done up like a palace.

-No.

-Because we're working to a budget.

-Yeah. Just clean and tidy.

-Yes.

We're agreed on what needs doing on the inside,

but this block is certainly not as appealing as the blocks around,

which have had a face-lift with new rendering.

I'm wondering if they've thought about the possible benefits

and the cost of the work.

With these buildings, you normally need all the neighbours' consent

and then the local council will re-render the property.

And the bill is split amongst all the owners of the property.

So that's something we could look at with the other neighbours

to see if that could be done in the future.

Guys, I have noticed something in here.

Damp or some awful leak that's happened from the roof,

but it does look like you've got a new roof,

so was that previous to the roof going on?

Yes, I read the home report before bidding for the property

and it is a historical damage with a leak.

So it shouldn't be an issue now that the new roof is on.

So when you get your paint, it's going to look fantastic.

What are you going to do about all the textured plaster everywhere?

It's everywhere and that is quite difficult to sort out.

Erm, I've got an excellent plasterer that I've used

in all my previous properties and he will work his magic

and we'll have nice, smooth walls.

That's quite a costly job, though.

Every single wall's going to need that.

We always do it throughout the property. All the rooms.

Ceilings, walls...

Because we feel for years into the future,

it makes it more maintenance-free.

It's easier for touch ups in the future with rental properties.

But he does a good job.

So your ethos is, get it sorted in the beginning, do it well,

-and then you just need to re-touch up over the years.

-Yeah.

-It's a good way of thinking.

-Yeah.

Neil, I've noticed the windows are in a bit of a bad state.

You can hear the road, you can hear the lawnmower out there.

Are you going to replace them?

Yes, we're going to replace the windows throughout the property.

We're also going to replace the patio door onto the balcony

and I actually make wrought-iron gates and railings

so I'm going to replace the balcony with something decorative.

So you're the wrought iron man.

-You're going to bring that balcony to life.

-Yes, I am.

So how long have you been in that business?

Er, I've been doing that a few years now with my friend, so...

-We enjoy it, it's good fun.

-So how involved do you get with this?

Erm... Obviously, I can't do the trades,

but I try and do as much as I can

and help with the arranging and try and keep to a timescale.

Is this something that you've always enjoyed doing,

dabbling in the property market,

or is this something that you're really taking more seriously now?

I'd say more recently we have.

-We started our first rental probably about...

-Seven years ago.

This will be our fifth property now.

Right, going to ask you the question now. Budget.

How much are you spending here, including that lovely balcony?

-As little as possible!

-As little as possible.

No, we're hoping to stick to a budget of 10,000.

Which we think is realistic.

That will be a great budget for a project like this. Timescale?

-How long do you think it's going to take you, Sally?

-Hmm...

10, 12 weeks? We hope. Yeah.

Well, look, I'm really looking forward

to seeing how it all turns out for you.

It's been smashing meeting you both today

-and good luck with this project.

-Thank you.

-Thank you.

Sally and Neil are planning a huge face-lift here.

They're getting rid of the textured walls,

the polystyrene tiles are coming down,

and they're even going to get rid of my little serving hatch.

But I think they've bought at the right time

and there is clearly a demand for these type of flats.

I can't wait, though, to see Neil's wrought-iron masterpiece balcony.

You can join me later on in the programme

to find out how they both get on.

Well, Martin, we've waved one property renovation

off into the sunset. But we've got more to come.

Yes, did the others have a walk in the park or end up on a rocky road?

Let's find out.

Earlier on, we were going bilingual in Smallthorne near Stoke,

home to a variety of styles of properties

and Esperanto language enthusiasts.

We met Lee, who had managed to grab this two-up two-down

for £60,000 at auction, and he spoke the language of common sense.

Wanted something good value.

Prepared to get my hands dirty, do a bit of work.

I've come and look at this one and thought, yeah, maybe four,

-four or five weeks' work and then get a tenant.

-You speak a lot of sense.

-A lot of people wouldn't say that!

-You do. Really, you do.

So how did sensible Lee get on? Five weeks later, we're back.

Just what Lee was planning - a fresh and simple renovation.

The textured walls are still there, but then Lee knew

that probably couldn't be done on his four grand budget.

Top of his list was the plumbing and a general freshen up.

A decision had to be made

on the serving hatch-cum-kitchen window to the lounge.

Once the property was clear of all these materials,

it was clear that it had to go and it was better

just to identify the kitchen as one solid room and lounge as another.

Lee said he wanted to get his hands dirty on the project

and he certainly has.

In fact, he fitted this lovely kitchen on his own.

Upstairs now and, like elsewhere, the plastering remains.

But there was a question of knocking toilet and bathroom together.

Lee has decided to keep them separate.

New tiling and the suite has given it a lift.

I thought of turning the bathroom suite and toilet into one room.

Plumber said, "Keep it separate."

Family and friends said, "Make it one room."

I was undecided.

As a costing point of view, I decided to keep it as two separate rooms.

You know me, I like them separate anyway.

The two bedrooms are now much more modern and neutral.

Perfect for the rental market.

Let's take a look outside.

The rear yard originally had a carport

and a load of overgrown brambles.

The carport was dismantled and it was clear that the rear fence

needed a bit of restructuring to make it strong.

But it was quite easily done, only a couple of day's work.

And I'm still in the process

of making a new fence around the car area.

And I think it's worked out.

He had a four grand budget. How much did he spend?

Quick total of the numbers.

Unfortunately, I've come over that budget,

which I'm not too happy about.

It's come in at 5,900.

It was just a case of the tiling cost an extra £200,

the boiler cost an extra £200, the carpet cost an extra £200.

All in all, it's added to about £1,900 of underestimated cost.

The biggest problem I've had was the timescale I put myself under.

From the start, I know I'd told myself I'd do it in four weeks.

Potentially maximum six weeks.

Well, normally on projects, it's more of a relaxed attitude,

as in, "When it's done, it's done."

Whereas this one, I knew I'd got the cameras coming back

and I didn't want to let myself down.

I don't think you've let anyone down, Lee.

One week over time is just fine.

Two estate agents, including the one who came to see it before,

are here to give their verdict.

There's been considerable change in the property.

The property's been redecorated throughout.

It's had brand-new carpets.

The rear of the property has been cleared

and there's now access for a car to park at the rear of the property.

First impression of the property is that it's got a good layout.

It's got a nice-sized lounge

which can also be used as a dining area as well.

It's got a good-sized kitchen.

You've got two good-sized bedrooms

but you've also got plenty of extra storage space upstairs.

Lee does intend this house to be rented

and already rents properties out.

He bought the house for £60,000 and spent £5,900,

bringing his investment to a grand total of 65,900.

What could the house fetch on the open market?

In the current market,

we would recommend an asking prize of £75,000.

I would market the property at £74,950.

If the property was to make 75,000,

that would give Lee a pre-tax profit of just over £9,000.

As a valuation goes, I'm in profit, so I'm happy with that, yeah.

That's more or less what I was expecting.

Lee's plan was always to rent this property. So what would he get?

The property would achieve, in the current rental market,

£450 per calendar month.

In the current rental market,

we'd recommend an asking price of £475 per calendar month.

That top valuation of £475 per calendar month

would give Lee a yield of nearly 9%.

I reckon that's a pretty impressive return for five weeks' work.

Perhaps, if I start at 475 advertisement,

to agree a fee of 450, I'd be happy.

So, what's next for Lee?

I'm going to get the sun on my back, the sea on my feet,

somewhere sunny like Tenerife.

And just relax, have a rethink and I'll be back,

no doubt, at the auction rooms.

We head back to Scotland now to East Kilbride,

which was one of the country's first post-war new towns.

Neil and Sally bought the two-bed flat at auction for 46,000

and it looked like an ideal buy-to-let.

While the outside appearance left a bit to be desired,

the inside seemed like a pretty straightforward renovation job

in the three-month timescale.

No reason to get overwrought then.

I make wrought-iron gates and railings

so I'm going to replace the balcony with something decorative.

So you're the wrought iron man.

You're going to bring that balcony to life.

So, has Wrought Iron Man come to the rescue?

Four months later, we've returned.

I think he has.

Neil has designed and built a balcony

that adds a touch of romance to what was a rather utilitarian design.

Music: Romeo and Juliet by Dire Straits

# A love-stuck Romeo

# Sings a streetsuss serenade. #

The kitchen has been given a full overhaul and is looking good.

Now what about the rest of the property?

Well, this is the kitchen and, as you can see,

it's been a good kitchen. We got a fantastic deal on it.

Really pleased with the outcome.

We've done the tiles, new worktops, the lot. Really happy with it.

Go on, how much of a bargain are we talking for this new kitchen?

I bought that off an internet site for a really good price of £500

and I'm really delighted at how it's turned out.

Impressive! 500 quid for a kitchen.

And they've managed to move that boiler into the hall cupboard,

giving more room.

Meanwhile, it sounds like Sally went on a bit of a spending spree.

And I bought another kitchen.

So we've got enough for about five flats now.

THEY LAUGH

The bathroom was a bit dated, with a shell-design suite,

but Sally and Neil have transformed it.

We have completely ripped it out, put in a new suite,

plastered the ceiling and had it tiled floor to ceiling.

Remember those bumpy walls?

Well, Neil promised his plasterer would work his magic,

and he's been a wizard throughout.

Throw in the full rewiring and the walls are smooth again.

Best seen in the living room,

although my favourite hatch has served its last meal and now gone.

There was polystyrene tiles on two of the ceilings, which I believe

are a fire hazard, so I removed them and it was then replastered.

The tiles are off and two safe and bright bedrooms are now ready.

New windows are in every room,

and they're often the key to a rentable property.

By and large, we've used tradesmen for most of the jobs,

but we have carried out a lot of the manual work ourselves.

Predominantly, Sally has done most of the hard physical work.

Under my supervision, but, yes.

We're quite pleased with the outcome.

And best of all, they stuck to their ten grand budget.

But how about the timescale?

The timescale was initially three months,

but that has risen to nearer four

and the reason for that has been that we went on holiday for two weeks.

And then we had a delay with the windows initially

of another two weeks.

-But four months has been pretty good. We're pretty happy.

-Yeah.

And we've also purchased another two properties in between times

that we've been dealing with, so we've had our hands quite full.

Well, those other flats might come in handy

for all those kitchens Sally bought!

Focusing on this property,

two local property experts,

one of whom visited before the renovation,

are here to give us their views.

It's been finished to a really high standard.

They haven't cut back on anything.

A good-sized kitchen, a nice style of kitchen as well,

brand-new double glazing.

They've even rewired the flat, which I think is important

because of the age of these properties.

A lot of them still have the old nylon wiring.

I think the standard of finish on this property is very good.

It fits in well with other properties on the market

in this area.

Sally and Neil bought the flat for 46,000

and they've spent 10,000 making a grand total of £56,000.

So what do the agents think it could sell for on the open market?

I believe that the property would probably home report

at somewhere in the region of about 65 to £70,000.

I would expect it to achieve £63,000.

A top valuation of 70,000 would mean a potential profit of 14 grand,

while the lower valuation would mean a profit of £7,000

minus taxes and expenses.

What do they make of that?

Yeah, we thought about 65,000 was roundabout the market rent.

Sorry, the market valuation.

We've done an identical property just a short distance from here

and that's a similar valuation.

Neil and Sally have always planned to rent the property

and have some ambitious figures in mind.

We always try to purchase property that we can renovate

to a high standard, and ideally,

we're looking for a rental income of between 10 and 12%

depending on the final figures,

I believe we're going to come in about 9.5% rental yield

on our costs and refurbishment.

So do Neil's calculations add up?

I'd expect to achieve £450 per calendar month.

In this area, the rental sort of income that you'll get is

somewhere in the region of about £450.

Spot on, Neil.

£450 per calendar month gives them a yield of 9.6%.

They're cooking with gas now.

Yeah, we feel that 450 is bang on the money.

We've got an identical property to this and we're getting £450.

So what advice can our iron-clad property developers give us?

Any advice that I'd give to anybody

that's thinking of entering the property market is,

always remember to work to a budget.

You've got to realise that you're not dealing with your own house.

It's a rental property.

However, people expect top-quality standards nowadays,

so I'd always say, do the best you can to a high standard.

Well, that's it for today's show.

We'll be back next time with more stories from the auction rooms.

Look forward to seeing you then for more Homes Under The Hammer.

-Goodbye for now.

-Goodbye.

-Bye.