Episode 51 Homes Under the Hammer

Hello. Now, everyone has their dream home -

be it a cool urban pad or a country cottage.

Or perhaps you're a little unusual

and prefer a converted fire station or a church perhaps.

The thing is, you never know quite what is going to come up at the auctions.

Maybe your dream home is just there waiting for you.

Going to an auction and bidding can be such a daunting prospect,

but getting a property at the right price -

well, it certainly makes up for it.

Yes, so what inspired the buyers on today's show? Let's take a look.

This two-bed flat in Leytonstone, London is jammed between two shops.

Hello, any service?

In Devon, the water's fine

but some planning laws could mean sailing into trouble.

And, in that case, your plans have to change a bit.

And we go back to 2007 to Ramsgate, where these former police cells

were more like a swimming pool. It's damp, really badly damp.

We're talking water on the floor here.

All these properties have been sold at auction.

We'll find out who bought them

and how much they paid when these homes went under the hammer.

Sold.

Leytonstone in London has seen a lot of regeneration

thanks to the Olympic Park.

Famous faces from this area include Damon Albarn

and Sir Alfred Hitchcock.

The tube station has many mosaics depicting some of his films,

like The 39 Steps and Rear Window.

Will the property be stuff of nightmares?

Well, it's a two-bedroom flat, it's in here

and it had a guide price of £85,000. I'm going to have a look around.

So, straight into the flat and in here it smells freshly painted.

Long, thin, white corridor which leads straight into a lounge area.

A little bit disappointing actually.

It really feels like it's just been thrown at the back

of the property and it actually smells a little bit damp in here.

This is the kitchen area. Hello, any service?

This is quite a good idea

because there's nothing much going on in this room,

so why not have a little cut through to the kitchen?

Although there's no view.

That window is completely covered up so, again,

I feel like we're missing out on looking out onto something.

It's just got that sort of crammed in feeling.

And again, a bit botched everywhere.

Skirting boards just thrown together,

odd radiators, all a little bit off balance.

A couple of steps towards the back of the property.

Now, we do have a bathroom. It's white, which is fabulous.

A little bit on the small side.

Through into the bedroom. Now...it's a single.

It's got a really unusual window - too small for the room.

In fact, the room is very small.

And through into the second bedroom, again, very disappointing.

There you go. You could easily open that up,

this is just a partition wall, to create one big bedroom.

Now, standing here, I would like to see one big window at the back

because it's just not working as it is. Very disappointing.

Look, a window to the side. Why is the window there?

It's not working at all.

And you've got a view out onto a concrete wall and it's so close.

But the good news is, there's a door,

so hopefully there's a pretty little garden out here.

No, it's not a pretty little garden.

Come on then, let's have a look around. There you go.

The loo, a bit of corrugated plastic, some paint pots.

Somebody else's window. That's it. That's your outside space.

Disappointed? I am.

Goodness only knows what Mr Hitchcock would

make from the view from this rear window,

and it's the windows and lack of natural light throughout this

place that are my main bugbears.

The flat is squeezed between two shops, hence the odd layout,

but an architect or builder could best advise how to use the space.

About the fresh paint, is it masking any hidden problems?

And on the subject of professionals,

we called in a local estate agent to get her opinion.

I guess she won't be expecting too much as the guide price of 85,000

is tiny for a London flat of any description.

We need to change the central heating.

Completely refurbish the bathroom and the kitchen.

And, also, the hallway with the bedrooms.

And the garden at the back needs a lot of attention.

Well, it does need a lot of work

but, as the place is pretty tiny, it shouldn't take too long to do.

What kind of values would you be looking at

with a guide price of £85,000?

After refurbishment,

this property could resale at the market conditions,

the price range in between £170,000 to £190,000.

And, on the lettings market conditions,

it could re-let at a price

in between £1,050 to £1,150 per calendar month.

Well, this property is squashed. It's round the back of two shops.

I find it dark, there is no view, and it needs a total refurbishment.

Even though it's on the ground floor, well,

it just has the feeling of a dark basement flat.

That said, for London, it's got a low guide price

and it is so close to the Olympic Village.

So, was it a sprint to the auction or a long jump away?

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

OK. First lot I'll offer you is lot 61, which is in Leytonstone, E11.

It's a ground floor flat, this one.

Two bedrooms. Where do you want to start on this? Shall we say 70?

Start it nice and low. Thank you, standing, I have straightaway.

You're trying to come in. Can I say 71 on this side?

At you coming in here, seated? 71, yes. 71.

72. 72.

73. 73.

74.

The bidding quickly overtakes the £85,000 guide price

and continues apace to where we rejoin at £111,000.

111, you're back in. Not giving up.

112. 113.

114.

Give him a nudge? 114?

Otherwise, standing at £113,000.

Against you now. 114? 114. 115?

No? At the front, then, at 114,000.

115 anywhere else?

Feel free to come back in. Otherwise, 114 for the first.

114,000 for the second.

Third and final time.

Are we all done at £114,000?

Sold.

The successful bidders were Jana, who's originally from Latvia,

with her husband Bola, and business partner uncle, Chief.

Jana and her family previously ran a business in Spain

recycling vegetable oils,

but the family have now moved over to London

and are keen to start up a new property developing business.

-Jana, lovely to meet you.

-Nice to meet you, too.

So, I want to know the story about this property

-because you didn't view this, did you?

-No.

-You just, literally, bought it on auction day.

-Yes, we just er...

We view another property. We want to bid for it

but, unfortunately, it was withdrawn from auction.

And we want to really buy something to start our new business,

and we bid for what we think is good value and is a good location.

So you're starting a new business buying and selling property?

-Yes, we do.

-So, the first property you've got is this?

-Yes.

But you didn't do much research. You didn't come and look at it.

You didn't read the legal pack. You just got excited on the day...

-Oh, no!

-..and bought this property.

-Yes.

We do research about area,

but we didn't see legal pack and we didn't see property, but we was looking.

Tell me how you felt when you walked through that door for the first time.

Actually, I felt really good.

There's no major construction problems and I feel lucky.

But, when you walk in here for the first time,

it's not quite what you expect.

It's sort of tucked in between a few shops, at the back,

not many windows, it's quite dull.

Yes. You could see, but for money I paid, I think is all right.

I think is...still in Central London,

is five minutes from Olympic Village.

And it's kind of... I like this area, as well.

But hope it's going to go well.

Well, Jana's picked well, in terms of location.

But how will she add value to a property like this?

I'm going to... We're going to do full renovation.

We're going to make property look nicer and modern.

We're going to put new kitchen, new bathroom

and we're going on knock this wall down

to have little, like, you know, like a kitchen bar.

And put lights in the ceilings as well,

and new floor as well going to be,

and do everything we can do to make it nicer.

Everything Jana's outlined will add value,

but there are limits with a property like this

and I think the lack of light and rooms without a view

are the most important and difficult things to deal with here.

But what are her plans in that respect?

Oooph...! I don't know yet.

I honestly... We need to bring, maybe, somebody who,

like architect or surveyor,

to just help us with decide what we're going to do.

Maybe make another window.

Maybe.

Again, we was thinking we may do a little bedroom extension as well,

but it depends.

We're going to bring surveyor Monday

and we decide what we're going to do, really.

-I mean, it's quite interesting. You do have outside space here.

-Yes.

-Even though it currently has a WC outside in the garden.

-Yes.

-And it's good. You have barbecue and toilet straightaway.

-Exactly!

A convenience out there! But you do have outside space.

And, I think, for the money you paid,

you can't expect too much more.

No. No. Is...

I really like this. I really like property

and I really like little garden,

and I think we're going to do very well.

To help Jana do well, she's bringing in a builder

to have a look at the property and fix issues like the electrics.

With a budget of ten grand and a six-week timescale,

there's only one problem for me.

Do you think there might be any damp here?

No, I don't think, really.

It didn't feel like damp. It didn't smell like damp.

I know what is damp because once I live in damp apartment -

It was horrible. But it feels kind of fresh. Is no damp.

I don't think... I hope so. No.

Jana, good luck and I hope this property works out for you

-and it is the start of something very exciting.

-Thank you so much.

-Thank you.

-Good luck.

-I need it. Thank you.

Jana took a huge risk buying this without seeing it.

She really needs to think outside the box with this property.

It just needs light, it needs windows moving,

and it feels so hemmed in.

I want to know how she is going to give it

that modern, contemporary feel.

And, the big question...

Will she add enough value to this property

to really make it a worthwhile purchase?

Join me later in the programme and you can see how she gets on.

From that cramped London flat

to the wide-open spaces of the English Riviera now.

Brixham, in Devon, once a thriving harbour town,

now relies on summer tourists, rather than fish, for its fortune.

Although, there are still working vessels

making the most of the beautiful coastline.

The property I'm here to see is set into the cliffs above Brixham.

And phew...! Fantastic views!

Wonderful.

But, what I'm also very excited about, bizarrely, is this.

It's a bit of tarmac.

Yeah... But, it's parking spaces.

And, in these old-fashioned fishing villages,

parking is at an absolute premium.

So, the fact you've got all this, is superb.

The house itself, well, it's quite interesting.

One three-bedroomed property, with a one-bedroomed annexe attached.

Guide price, 275 to 325,000 quid. Let's take a look.

And, so, first of all, into the annexe.

So the door into a really nice-sized space.

And this is sort of like a kitchen-living area

and it works extremely well. Some nice units here.

Your cooker, your sink.

But you're drawn straightaway to that view over the harbour.

You can certainly imagine spending some time here. Absolutely gorgeous.

This was built about ten years ago.

And, you know, the beams thing...

You either like it or you don't. I think it adds nice character.

Stairs up to your bedroom and your bathroom there.

And, then, this is where the old house starts, if you like.

So, here we are. And it is, yeah, equally nice.

The whole thing has a really,

well, almost you-could-move-into-it feel about it.

There's a few places where you'd want to investigate.

That looks to me like a bit of damp

coming through the chimney breast there.

But, hopefully, nothing too serious.

Living area over there.

Stairs up to your bedrooms.

And, then, over this way to an absolute delight.

The main kitchen in the property.

Well, looks speak for themselves.

Really nice built-in units, some appliances. Really nice.

Range cooker, probably more for effect than practicalities,

but you've also got a gas cooker here as well.

Stone floors.

I mean, this is lovely.

The annexe feels modern and light

and the downstairs kitchen-living room

lead to one bedroom and a bathroom - all very nice.

On the outside, well, that cliff face might put some people off.

And the view at the front has been rather spoilt,

but it might also explain

that relatively modest guide price of £325,000

for a property with sea views, which always get a premium.

The original house is, undoubtedly, charming.

The kitchen and living room are a nice size

and, on a winter's day, this place would feel warm and inviting.

# Could it be I'm falling in love?

# With you, baby

# Could it be I'm falling in love with you? #

I have fallen hook, line and sinker.

I can absolutely picture being cosied up in here

when the colder months kick in.

I can't wait to see what awaits upstairs,

so I ain't going to!

Well, in some ways, this house is definitely playing it by the rules,

because the two rooms which really give a wow factor

are the kitchen and how about this for a bathroom?

I mean, it's not actually that spectacular,

but that roll-top bath just gives it that edge. So, brilliant news.

What else have we got up here? Well, three bedrooms.

A small one round the corner there.

A good-sized double there.

And the third bedroom here. Again, not too bad.

A bit of shame about that big block of flats there

blocking the view from this particular room.

But, all in all, a property that has so much potential, you would think.

How about living in this part of the house

and renting out the annexe as a holiday let?

Absolutely ace.

Live here, have that bringing in a bit of rental income.

Unfortunately, you can't do it,

because a stipulation in the planning

is that that can only be ancillary to this part of the house.

That cannot be separate and, in that case,

your plans have to change a bit.

There is potential here, for sure.

And, maybe, it could be turned into a lovely, big family house.

However, the holiday tour is not quite done.

Well, so far, so interesting.

But come round to the side of the property

and it goes from just interesting to absolutely phenomenal.

For a start, look at those views.

Amazing.

The house, as it stands, though, does not make good use of them.

There's no windows on this part. What a shame, what a waste.

Ha-ha! Maybe not.

Because, also, at the side here,

you've got a half-decent sized bit of land. It's flat.

This is a building plot any day of the week.

Can you imagine going to town

and building a separate house to that one there?

A few hurdles, like getting planning permission to do it,

but what an opportunity.

So, what would you do? A detached house with lots of glass?

Or add to the original? A huge conservatory, perhaps?

The only limits are your imagination and, well, planning, of course.

What would you be likely to get permission for

and would it be worth it?

Well, the auctioneer who sold it came along to tell us.

It's about the most versatile house I've seen.

It's the simplest subdivision into two houses.

Or it really works, simply, as an annexe for granny

or a, you know, a noisy youth or whatever.

So, from that perspective, it's two homes

or one great, big really versatile one.

Separating them might seem like a good move,

but there is that planning covenant to consider.

Would it be worth a lengthy,

and possibly expensive, dialogue with the planners?

I think the really nice one-bedroomed house

would have a value in the region of £185,000.

I think the mother house, as it were,

would have a value in the region of £285,000.

If the annexe was incorporated into the house,

I wouldn't see the value in excess of £400,000.

OK, that could mean £70,000 more if you separated the two houses,

minus the building costs, of course.

And, then, the plot thickens...

If the new owners were canny enough

to get a new three-bedroomed house on the end,

which would just have the view all the day,

that could be worth in the region of £350,000.

Well, it's an interesting lot in a pretty and improving seaside town.

And, if you could sort out the planning issues,

then it could open up options galore for a developer.

Still, it's a gamble.

Let's see who decided to take it on when it went under the hammer...

We joined this particular auction late in the day.

133. Just a stunningly located four-bedroom house.

So, who's going to say to us, nice and simply...?

What's the guide? 325.

300?

275. Won't start at 275. 85.

285.

At 290.

At 290 once.

At 290 twice.

295. 295.

At 295. Don't look so shocked.

At 295.

Yes. I'm talking to you at 295. First time.

Strange number to stop at. 295 a second time.

At 295.

If it's worth this to him, it's worth it to you.

At 295 on the day.

Sir, well done at 295.

Well, it didn't take long for the hammer to fall

for Lee, on the left, and business partner Joff,

with their bid of £295,000.

They have a property company together

and, individually, own commercial and residential properties

stretching from London to this part of the coast.

I met them after lunch to find out what their plans were.

# Yeah

# In the morning

# Not seeing her crying #

-Joff, Lee, great to meet you.

-Great to meet you.

-You, too.

-Congratulations.

-Thank you very much.

-I am jealous.

What an amazing place. Tell me why you wanted to buy it.

We came along, we loved the views. We loved the area.

It's an up-and-coming area, in particular,

-and we just thought that it had great potential.

-Right.

Tell me what the options are. What are you going to do to it?

We've got a couple of options, really.

One of them is to...

Basically, you've got scope here to actually have two properties.

There is a covenant as the minute,

which, sort of, only allows one property,

even though it's got a granny annexe to this property as well.

But, potentially, we could be looking at sort of moving the covenant

and then, potentially, if we can put in for planning,

maybe, to sort of split it into two and perhaps even, you know,

put an extension on the side with some nice glass

-and, you know, a viewing platform et cetera.

-Wow.

To utilise it, really.

We've had an architect look at it - he's given us a few options.

Mainly, it's going to be the extension,

which will virtually be the size of a house, going on the side.

Wow.

-Hopefully.

-Yeah. Subject to planning, yeah.

Subject to planning, yes.

How do you imagine that's going to look? You talk about glass.

-Is it going to be something fairly funky and...

-Fairly modern.

Fairly funky, yes. It's going to have the wow factor, definitely.

Wow. And, then, this side, if you split it into two?

This side, hopefully, we're going to do a similar sort of thing.

Have another balcony there, taking in the views from the other side.

Lee and Joff have had success

in having covenants removed, through their solicitor, in the past,

so they're fairly confident.

But this one was only put on ten years ago,

so I wouldn't count on it.

Since so much is subject to planning,

they have yet to set a timescale or budget for the work.

These guys are very savvy

and they've already given thought to that plot out the back.

We just felt that it'd be too small, really.

We'd rather, sort of, get a slightly bigger house

than get, you know, multiple units, type of thing.

And it, potentially, wouldn't have that wow factor.

Yeah. Well, congratulations.

-Thank you.

-I can't wait to see how it all turns out.

-Thank you.

-Nice to meet you.

-Thank you.

-You, too.

Well, Joff and Lee obviously having big ideas for this place.

But are they the right ones?

Will they get the planning permission

for converting it into two properties?

Would they be better off doing what I thought

and building something here instead

and making that one, amazing house?

Who knows? Well, actually, you will, later on in the programme.

Coming up, that planning covenant causes problems in Devon.

It does take quite a long time to get all these, like, covenants removed.

You guys think you have delays?

Try a project that takes seven years

due to dry rot and damp in Ramsgate.

It's a nightmare!

Back now to Damon Albarn's old stomping ground,

Leytonstone, East London,

where, earlier, I looked around

a two-bedroom ground-floor flat between two shops.

A little bit disappointing

and it actually smells a little bit damp in here.

Despite being on the ground floor,

the peculiar window arrangements afforded little light.

There's no view. That window is completely covered up.

The theme continued in the little bedroom,

creating a really boxed-in feeling to the flat.

It's got a really unusual window - too small for the room.

But, with the garden as it was,

that may have been no bad thing.

I wish you could say the view from the main bedroom made up for things.

But, sadly...

Why is the window there? It's not working at all!

The flat was bought for 114,000 by Latvian artist Jana,

who planned to do it up with her husband and then sell.

-So the first property you've got is this.

-Yes.

But you didn't do much research, you didn't come and look at it,

you didn't read the legal pack.

Er, we do research about area, but we didn't see legal pack

and we didn't see property. I really like this.

I really like property and I really like little garden,

and I think we are going to do very well.

Jana was hoping that the popular area

and the London market would get her a good profit, but I had my fears.

-Do you think there might be any damp here?

-No, I don't think, really.

It didn't feel like damp. It didn't smell like damp.

I know what is damp, because once I live in damp apartment -

it was horrible. But this feels kind of fresh.

There's no damp, I don't think. I hope so, no.

One of the first jobs Jana's team tackled was the dark floor

coverings throughout the flat.

Seven weeks on, they're gone and we're back.

The old kitchen was enclosed and claustrophobic.

Now the dividing wall has been opened up

and more light is in the lounge.

New wall and floor tiles harmonise with the neutral colour scheme.

And the addition of a feature breakfast bar gives finishing

touches that were lacking before.

Remember how the bathroom was?

Well, now there's a new suite and I know

I keep going on about the floor, but new tiles there too,

which look great.

The layout of the bedrooms remain the same

but the neutral colour scheme helps with the lack of light.

# I will turn this place into a playground once again

# Say you'll come with me

# And I will try to make it all feel safe. #

And finally the garden.

Well, it was a bit of a dumping ground - old paint cans, corrugated

sheeting, broken slabs and who could forget the closet water feature?

A big improvement but there again, not THAT difficult.

What was the most difficult part of the refurbishment?

The main problem was pipe leaking all day, because obviously,

apartment was not looked after and we find pipe was leaking.

We change this pipe as well, we clear water,

and put new floors as well.

That was the biggest challenge of this apartment,

these floorings, yeah.

So once that was sorted, what else was needed?

We...

changed completely everything, apart from walls and ceilings.

We change windows, we put double glazing, we change kitchen,

everything brand-new, and new doors as well.

The doors are certainly a big improvement.

What was Jana's role in the refurbishment?

Supervising my builders, choosing colours - that's it,

really - and just...paying them.

Yes, that's property development for you.

Just keep on signing those cheques. So what about the budget?

We spent in the renovation of this apartment, 11,000.

Yes, we planned 10,000, but because of floorings

and problems with pipe, we spend 1,000 more.

Time to compare the market valuations

from two local estate agents.

Has all the work here translated into a profit?

What are the agents' first impressions?

I think that the layout is very compact and I think I would

have sacrificed one of the bedrooms and made a larger bedroom.

The flat has obviously recently been refurbished

and decorated to a reasonable standard.

I feel the flat is fairly light and airy,

and it does have the benefit of a small outside space.

Jana and her husband and his uncle have

so far invested £114,000 at auction plus 11 grand refurbishing.

What would it be able to achieve on the rental market?

This flat could rent for £950 per calendar month.

I would put the property on for between 1,000

and £1,100 per calendar month.

Taking the top valuation, that gives the family members

-a yield of just over 10.5%.

-Oh, I'm really happy.

It's so nice to know I can, if for any reason I don't sell my property,

I can rent it for decent money. It's lovely.

With a total spend of £125,000, what's it worth now?

In today's market, this flat could sell for between 175 and £180,000.

I would put the property on for £190,000 to achieve £180,000.

We're hoping it's going to be around 180, 190,

and I hope we will sell it tomorrow.

Yes, she said tomorrow!

In fact, the intention was to put it up for auction again,

but they had to withdraw it because they didn't have all the paperwork ready in time.

However, all being well, if she achieves that £180,000,

that will glean a profit of 55,000 before the usual taxes

and expenses, which has to be a good result in anybody's book.

In 2007, I was in Ramsgate in Kent,

a harbour town that inspired the likes of Karl Marx

and Vincent van Gogh and I was here to see an arresting property.

Well, just a hop, skip and jump from the harbour area is this nice

little area of restored properties, kind of like courtyard.

That's good news

because that is where the property that I'm here to see is situated.

It's this, the former cells of the police station.

It's had a variety of uses in the past,

including a restaurant in recent times, so lots of potential.

Let's take a look inside.

# Whoop! Whoop! That's the sound of the police. #

Guided at £90,000, this two-storey was actually

in the conservation area,

so whoever was interested in this lot

would have to factor that into time and costs.

So through the front door and actually, a bit of a disappointment.

Stairs going up to whatever and then through into what was obviously

the kitchen of the restaurant that was here before. But wow!

What is that? Oh!

Look at this fungus! Unbelievable.

I feel a David Bellamy moment going on.

-IMPERSONATES DAVID BELLAMY:

-Here in this prided location,

we find this most awesomely beautiful bit of natural history.

This is actually dry rot. Cancer of the building, they call it.

But when you look at it like this, it's natural historical art.

I love it!

-SPEAKS IN OWN VOICE:

-However, if you're a property developer, it's a nightmare.

This was one of the most obvious cases of dry rot

and all joking aside, it is a very serious issue.

I was beginning to think this might be a rubbish buy.

Well, here at the rear of the property,

more indications of the previous incarnation of this building.

Obviously, they've tried to create some kind of a themed restaurant,

using the kind of jail aspects, painted murals on the wall,

but what really concerns me is it's damp - really badly damp.

We're talking about water on the floor here and if you look

at the walls, even more varieties of mould and just general detritus -

not good at all.

Not quite as serious as the dry rot, but you know, something which is

definitely going to take a lot of sorting out.

But in terms of space, not too bad.

We have got natural light coming through and a couple of rooms,

one here, something leading off there, more space over there.

-So you could use this space quite effectively.

-It's not a bad area.

It's just in a right old state

and it's going to take quite a lot to sort it out.

The restaurant customers have gone

and so have the original Victorian non-paying occupants of the cells.

So what to do with this space now?

There's obviously some good commercial or storage space

for the business.

The more important question was that source of the considerable damp.

Upstairs perhaps?

-# We're in the jailhouse now

-We're in the jailhouse now

# We're in the jailhouse now... #

Aha, voila! Troublesville, Arizona.

That is the reason why there is so much water downstairs.

Look at the state of that roof.

Clearly, that has all got to come off and that is going to be expensive.

But what you have got up here is a kind of extra bit of space

that you didn't necessarily, I don't know, didn't expect. It's not huge.

Basically, one large room here.

This, which I presume could be a loo with a bit of storage space there,

and then another small room here, which I suppose could be a kitchen.

So what we're looking at here is a studio flat.

It needs a lot of sorting out.

It's got the high ceilings and you know what, around here,

somewhere like this done up, about 90 grand you'd get for it,

so a nice added-value thing to have to the property.

-# There may be trouble ahead...

-#

You do not need to look far for trouble with this place

but it did have potential.

A flat with commercial space below is a distinctive proposition

and that was appealing.

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

The combination is arranged over the two floors. It's got huge potential.

£100,000 to start me.

£95,000 to start.

£90,000, then. We shan't start for less.

90. 90 I have at the back of the room.

90 and I should think so as well.

At £90,000...

Bidding began quite slowly but then sprang into life.

We rejoined the bidding at 125,000.

125. 125. 128. Are you sure?

Add £125,000 I am bid, it's being sold in the room at 125,000.

I'll take six, if it helps.

At £125,000 I have the gentleman in the tie. 126 and a fresh place.

128. 128 is bid and 130. 130 I have. 132.

132. 135. You're out at the back of the room.

132 I have, fourth row back. 132,000. 135 anywhere?

You're out at the back. You're not now. 135 and you're in.

140 for you, sir? 149 I am bid and 145.

£140,000 I am bid, fourth row back on the right-hand side.

For the first time, then, at 140,000.

Fourth row back, gentleman with the tie on,

at 140 for the second time,

140 for the third and final time, at 140, are you all done?

Sold at 140.

Absolute joy from the buyers Rosie and Ken.

They paid well over that guide price at £90-£100,000.

I met Ken, a financial adviser and Rosie, a drama teacher,

back at the former police station to find out why they'd

risk £140,000 on a building that presented such a challenge.

-Rosie, Ken, lovely to meet you both.

-Hi.

-Hi.

-This is an interesting building, isn't it?

-It's got a history, yeah.

Why did you want to buy it?

I think we just had a good feeling about it, to be honest, so...

I think it's the area as well.

We knew that it was up-and-coming and, crucially,

that's the important thing. And then on we saw it, we thought, "Oh, how sweet!

"It's all cobbledey and traditional and period." Obviously, that's

got its problems, but for Ken's vision, specifically, it was ideal.

-Vision?

-You're a man with vision, are you?

-Oh, well, I like to think so, I suppose.

-So what is your vision for this place?

Oh, I'm not sure... I'm still working through it at the moment

but I'd quite like it to work as a retail space.

-I think that would be quite...

-A shop?

-Yeah, basically, yeah.

I mean, I think that would be in keeping

with what others in the area want to do with neighbouring properties

so, yeah, I think, actually, this part of Ramsgate could be something quite different, quite special.

So what you going to do?

I'd really like to combine something that's a bit drama-ish with

bringing people in and having like events that would make this

really exciting. Possibly linking it to the police station.

But Ken is very style-conscious,

so we have to be measured in our approach

and maybe bring out the best of our talents.

Ken's plan is to have an interior design shop

and they certainly have some creative ideas.

Do you have an idea of how much it's all going to cost at this stage?

Probably about sort of 30 to 60,000,

I think, on the actual fabric of the place.

So what about a timescale for everything you're planning?

So the timescale is a little bit elastic, let's put it that way.

Probably six months to a year, realistically,

to get any kind of empty, cohesive shell.

What do you think the biggest challenge is?

The biggest challenges are actually just, you know, resource,

basically, to be honest. You know, time,

yes but I think, you know, a project like this can actually run away with

you if you don't keep it under tight control.

So in that respect, as I say,

I've got to try and make it work with what I've got available.

So I think that's - in the short term - going to be the biggest challenge.

They had set themselves the challenge, for sure,

and I don't think they even knew just how much of one.

14 months later, when we returned,

that elastic timeframe Rosie talked about looked like being stretched

even further because the former police cells

were still a building site.

So what was the hold-up?

The broad timescale was hopefully to try and get the retail

space sorted within about a two, three, four-month timescale.

But having then shifted and trying to put some living,

some accommodation space, some overnight management stopover-type

space in the property has pushed out the timescale.

So, yeah, it's expanded but I'm comfortable with that.

Ken's vision had indeed expanded, along with the timescale,

and that's because he'd embarked upon creating a flat with

a mezzanine floor above the retail space.

Yeah, so, over here we're going to have the open-plan living area,

open fire with gas insert, lovely sort of open-plan kitchen,

range cooker, cloakroom, so, yeah, all the mod cons on this level.

I think the really nice bit's going to be the spiral staircase,

which will go upstairs to the master suite, with the sort of spa bathroom.

So, yeah, I'm really pleased. I think it's coming along.

I think we've managed to turn what was a pretty small, pokey property

into something which is really quite modern and exciting.

And the flat sounded like it was going to be amazing,

but what about Ken's original vision of that shop?

So, yeah, what I ultimately want is a different sort of areas to be

the different sort of themes in terms of what we're selling,

and the ultimate vision is going to be, you know, it's going to be,

hopefully, a very uplifting, exciting destination

for people to actually come.

I want people to share, to a certain extent,

my vision of how I like to live.

So, yeah, I'm really looking forward to it. I'm really looking for to it.

Of course, while our plans for Ken's emporium came to life,

he had the practical issues to deal with, like the dry rot

and making the place watertight, so there was a new roof with an atrium.

It was quite a vision. What role was Rosie playing?

My role? Purely, I think, has been the wind beneath Ken's wings.

I've turned up and bought lunches for the guys and asked him about how

the projects going, and really tried to keep him on task when he just...

You know, there are times when he's really felt incredibly challenged.

Ken's determination was admirable, but time was money,

and he had originally thought £30-£60,000 would do the work,

so where was he with that now?

End budget, at the end of the day,

will probably have to be 80K, to be honest.

I don't think I can possibly exceed that for lots of reasons.

There was no shortage of optimism on this project, which is a good thing

because it would be a further six years

before the project reached a conclusion.

Yes, you heard right, six years.

Well, we've seen how one property turned out. How about the others?

Did they spend more time and money than they anticipated

or did they come in bang on budget?

Let's find out!

It was in the lovely seaside town of Brixham in Devon, where we first saw

an impressive auction lot described as two self-contained linked houses.

On the face of it, it looks like they could be turned

into two separate dwellings, but a covenant prevented that.

However, the house's prominent position and superb views

across the bay were glorious.

With land around it, there was

also the possibility of developing the property further,

so this was a mouthwatering prospect for any developer.

Perhaps, not surprisingly, it was snapped up

by property developing team Joff, seen here on the left, and Lee.

Tell me what the options are then. What are you going to do to it?

We've got a couple of options really.

One of them is that, basically,

you've got scope here to actually have two properties.

There is a covenant at the minute, which, sort of,

only allows one property, even though it's got a granny annexe

to this property as well, but, potentially,

we could be looking at removing the covenant

and perhaps even putting an extension on the side with the fantastic views.

-Hopefully.

-Yeah, subject to planning, of course.

-Subject to planning.

-Subject to planning, yes.

With the plot the house sat on appearing to offer the possibility

of an extension or even another house, there were a lot of options.

Well, now, over a year later, we've grabbed our bucket and spade

and it's back down to the seaside.

Yes, it's all pretty similar, but clearly someone is living here.

So, what's happened over the last year?

There was always the plan for us to actually put a tenant here,

because it does take quite a long time

to get all the covenants removed, get the planning in place.

We didn't really want to leave the property, sort of, empty,

so it was just ideal. It was in good condition, you know,

there was minimal work to do to get it up to a tenanted level.

And, you know, that was a natural thing to do

while we were looking at the plans, etc.

Joff and Lee have done the sensible thing.

There's no point in the place just gathering dust

when it could be earning its keep.

At last, they've sourced out that restrictive covenant,

and now have plans drawn up, ready for the next phase.

Yeah, so what we've got here is the existing building,

and you can see there's a really modern extension

to the actual side of it. Again, they're all linked together,

so it's one big house. It's completely glass at the front.

It's got a grey zinc roof on the top there,

and, on the very top there, is a sort of balcony and a sundeck

with a hot tub, which is going to be positioned on the top.

We've made use of the middle floor there with a large lounge.

Again, that's completely glass at the front with a balcony

and on the bottom floor, the kitchen and the dining area will be.

So, instead of going for splitting the property and making two houses,

Lee and Joff have decided the site is more suited to

one large, rather magnificent house.

Imagine sitting in the glass extension looking out to sea. Wow!

So, if they get the go-ahead from the planning committee,

when will they go ahead with the work?

At the moment, we've got very good tenants and we've actually

said to them we will not be doing anything. Why? It's their home,

and if they ever choose to move on,

then we'll look at doing the build then.

OK, so Brixham may have to wait before the House on the Hill

has its potentially iconic look

and, without planning granted or a definite start date,

Joff and Lee don't know how much the building work will cost,

but having bought the house for 295,000, and spent around £5,000

on remedial work and architect fees, their total cost to date is 300,000.

But if they eventually do realise their plans,

will it be worth the wait?

And, more importantly, are their plans right for the area?

What do two local property experts think?

The plans are really quite spectacular.

And, for this particular location,

it's all about making the most of the sort of bookend views,

which are as nice as you can possibly wish to get by the sea.

I think they are over developing the site by building

the extension on the side - I personally wouldn't do that.

I think the cost in doing so... I don't think they'll get the return.

Oh, interesting. Maybe bigger isn't better.

What kind of resale values might be expected for their planned mansion?

In the current market,

the ultimately created fantastic house, done to a good spec,

could fetch as much as £1 million.

-If they built the extension, I would estimate a figure of £450,000.

-Wow!

That's a massive difference in price. Why is that?

I think there is demand for that property in Brixham, but I...

Perhaps not this plot.

I think if it was on the Berry Head side of Brixham, definitely,

and he could probably achieve somewhere

in the region of 900 to 1.1 million,

-but not on this side of town.

-That's interesting.

What do Joff and Lee think about that?

We'd be hoping for a lot higher valuation than 450.

We're doing the extension because it would be an iconic building

and, perhaps, it's difficult to imagine until it's actually built,

but we will seek advice.

My guess is that somewhere between the two resale values

might lie the truth, but as Lee and Joff said,

until it's been built and finished, who can really say?

But, in the meantime, I don't somehow think these two

will worry too much.

With over 170 properties between them,

I'm sure they've got other fish to fry.

We've got a number of plans.

We've got a number of building plots

that we're going to start building on for individual houses.

A couple of big properties as well that we've got,

which we're sort of working on at the minute,

so, yeah, we've got quite a few bits going on.

We set sail now for the Devon coast along the English Channel,

and dock at Ramsgate, Kent, where, back in 2007,

we first met Rosie and Ken.

They paid £140,000 for this former police station in Ramsgate.

They had a maximum budget of £60,000,

and a liberal approach to timescale.

So, the timescale is a little bit elastic, let's put it that way.

Probably six months to a year realistically...

-I would have thought, yeah.

-..to get any kind of empty, cohesive shell.

They had a vision for a retail space downstairs,

but this building had dry rot, mould, damp,

and some prison cells out back.

What do you think the biggest challenge is?

The biggest challenges, I think, are actually just, you know, resource,

basically, to be honest.

You know, time, yes, but I think, you know, a project like this can

actually run away with you if you don't keep it under tight control.

Yes, time can run away when it comes to property developing.

So, 14 months later, when we returned,

things had moved on at a steady pace

and the timescale proved not to be the only thing that was elastic -

the original budget of £30-£60,000 was too.

An end budget, at the end of the day, will probably have to be 80K,

to be honest. I don't think I can possibly exceed that

for a number of reasons.

So, we met them in 2007, then 2008, and then, drum roll, please.

-DRUMROLL

-Seven years after, we're back...

and the old police cells have been transformed to house

Ken's eclectic emporium.

And, up the spiral staircase, is a beautiful studio flat.

I think when you start something and you've got a very clear idea

of what you want at the end of it,

and you're committed to trying to see it through,

I think that actually can be a bit of a prison sentence,

and it certainly has felt like that here.

The building had actually been empty for quite a few years

before we've actually taken possession. The new roof...

The building probably took about two years to dry out,

once it was actually the new roof and the shell was watertight.

During the actual building, we discovered

that there was quite extensive dry rot,

but most of the actual timbers within the building had to be replaced

anyway, in terms of redoing things, so most of the actual fabric

of the building has actually been replaced.

There's probably... What remains of the building is really only

the exterior shell. Most of the interior has been redone.

And, my, how those interiors have been redone!

The upstairs flat is a masterpiece of style.

I particularly like the design of the kitchenette and the toilet,

and, of course, that fabulous spiral staircase,

leading to the mezzanine floor and a spacious bathroom.

Well, we are in the studio space.

We stripped the space back to expose all the brickwork,

reinstated the floor, reinstated the fireplace,

and then it was a matter of just putting features back in,

so we tried to make it a usable space, a flexible space,

for the business, or for accommodation,

so we put back in the mini kitchenette,

installed the range cooker, installed features like the bookcase

and the staircase, and I think it works. It's really, really nice.

It's a great space to be in and I'm really pleased with it.

It may have all been Ken's vision,

but Rosie played a crucial role in supporting him.

Originally, when this whole project kicked off, I thought,

"How fabulous! Maybe I can turn up and do a bit of DIY!"

There was a time where I did a bit of hoovering

and I did wipe down one wall.

You've got the evolution of the building,

that's turned from this monster beast thing

into this beautiful, renovated period building,

and you've got the evolution of Ken, creatively, with all of his ideas.

Those ideas won't have been cheap.

Ken has been handcuffed to this property for seven years.

Has it come at a criminally large price?

The original budget, when we first bought the place, was 60,000 -

that had to be revised once certain issues were actually realised.

So, the revised budget was 80,000.

In retrospect, I suppose we probably spent

probably upwards of over 100, probably about 120.

Well, doing up the former workplace of the boys in blue might have

put Ken in the red. However, he has plenty of options here.

He could sell the flat upstairs, sell the shop,

or sell it all as one.

Let's hope two local property experts might be able

to give him some good news.

This is my second visit to the property and I'm absolutely amazed

at the quality of the finish that they've brought to the building.

It's been a very sympathetic renovation.

The layout of the flat is very, very good.

You've got the entrance from the main street if you need it.

If you want to separate it off from the commercial premises downstairs,

so the layout works and it would be a perfect little lock-up holiday home

for someone, or just a nice place to live in general.

This is the first time I've seen this property.

It's been renovated to a fabulous standard. The shop is excellent -

it's really appealing.

The flat has been renovated to a very high standard as well.

So, bought at auction for 140,000, and spending £120,000

on the whole building, Ken's total spend is 260,000.

So, what about selling just the flat?

If this flat were placed on the market at the moment, I would expect

the owner to achieve somewhere in the region of £115-£120,000.

I think we'd achieve around £145,000.

That top valuation is pretty healthy,

so what about the emporium downstairs?

What kind of value do the agents think that could sell for?

It's going to depend on the yields that you would obtain.

You're going to be looking at a rental income

of between £8-£10,000 per annum.

So, that would give a 10% yield,

would give a value of between £80,000 and £100,000.

I would estimate the shop, compared to similar properties

we've had in the area recently, to achieve in the region of £60,000.

A lot of variation in valuation once again,

but a top value of £100,000 would see Ken hit with a £160,000 loss,

but he would still keep the flat.

OK, Ken, this might be the most useful part.

What about selling the whole building?

If the owner were to put the flat and the shop on the market

at the moment, I would estimate that in the region of £175,000

is what we would expect to achieve.

If the unit was sold as a whole, I believe the value would be

at a top limit of £250,000, at the stamp duty cut-off point,

going down to a low level of, perhaps, £225,000,

depending on the market.

So, a top value of 250,000 sees Ken lose £10,000

before the usual taxes and expenses.

It's helpful to have a number in the back of your head,

but this was always going to be about the business,

so whilst it's helpful, and, you know,

that information is useful to know,

it doesn't really change things for us, so... But useful.

Valuations aside, I think Ken will be delighted

the project is finally finished.

He steered the ship over seven years

and now has a quirky shop and a fantastic flat.

What's he going to do next?

I would imagine it might be a lie down in a darkened room somewhere.

Oh, what's next?

Yes, well, a bit of a break would be nice, to be honest,

but there's always work to do.

We are thinking about another property at this minute,

so we just need to watch this space and see what happens.

So, fairytale projects or nightmare endings next time?

Only one way to find out.

Make sure you join us soon for more Homes Under the Hammer.

-We'll see you then.

-Goodbye.

-Goodbye.