Episode 52 Homes Under the Hammer

Well, chances are a property is going to be the most expensive thing

you ever buy. Unless you've got your eyes on a private jet.

Well, if you're depending on the security for your future,

there is no doubt about it, you have to tread carefully.

But if you get a good deal,

then there's more chance you're going to get a better profit.

And one way to do that is to go down to your local auction house.

Well, people have all sorts of plans for the properties

they buy at auction. Sometimes those plans go well, other times they...

well, shall we say...change?

So, what were the plans for the properties they bought at auction?

Let's take a look.

In the Welsh town of Caerphilly there's a house

that I'm almost too scared to look at.

I'm expecting it to be pretty bad.

Whereas in Rochester, Kent, I just want to see more.

Will it carry on in the same vein? I can't wait to find out!

But in Derbyshire, with this house, what you see is what you get.

This is a classic fantastic auction purchase

that you can add value to.

All these properties have been bought at auction.

We'll find out who bought them and what they paid for them

when they went under the hammer.

Yours, sir, madam. Well done.

Caerphilly is the birthplace of the late, great fez-wearing comedian,

Tommy Cooper.

It's also where you can find the largest castle in Wales.

Caerphilly Castle is a fantastic example of the 13th century

military architecture

and has recently been brought to the attention of the wider

public by featuring in the series Merlin and Doctor Who.

So from Wizards and Time Lords to little old me, just like that.

HE LAUGHS

Well, close to the centre of town

and about 15 minutes by train from Cardiff on this estate, in this

really lovely elevated position, is the property I'm here to see.

Now, a three-bedroom semi wouldn't necessarily normally fall

into the realm of first-time buyer territory.

However, the guide price might just drag it that way.

£48,000 plus was the price.

Ah. But judging by the outside, I can see why.

It's not looking good, is it?

It is at a great price, and it'll be popular with first-time buyers.

But boarded-up windows and an overgrown garden rarely indicate

a property that's in good shape. However, you know what they say.

# You can't judge a book by looking at the cover, whoa... #

Hmmm. Fingers crossed.

I'm expecting it to be pretty bad.

Well...

That's a pleasant surprise.

Houses that are shuttered up, boarded up, or whatever,

you never know quite what you're going to find.

But this is intriguing. Neat plasterwork. Relatively...

Well, in fact, brand-new-looking radiators.

Into the sort of hallway area there you've got a lounge

off to the left. Sorry if I'm not being that descriptive.

I'm just slightly...um, shocked, actually! That's the word.

Through there into this, which is

a real sort of open plan kitchen-living area.

New kitchen units.

This is all very strange. Through here, new door frames. New doors.

This...

no kidding, Sherlock,

looks like it's been subject to a major renovation already.

Ooh, that's a bit of a disappointment.

I expected to find a downstairs loo there, but there isn't one.

Well, that, I have to say, is a first for Homes Under The Hammer.

A house which actually...

..looks much worse on the outside than on the in. Wow.

OK, so for a three-bedroom family home it would be good

to have a downstairs loo. But perhaps one could be put in.

There's certainly space.

And if we're talking family appeal, then a corner plot

and a good-sized garden does no harm at all.

So far, so... well, brilliant, actually.

# It's just a nice surprise It's just a nice surprise... #

It's so funny how your perceptions can change so quickly, isn't it?

Downstairs, a real surprise. What have we got up here?

Well, more new radiators, a new boiler. That's good to see.

Bathroom suite. There's obviously been a major series of...um...

well, things done, to get it into this state.

We've got double-glazed windows, nice new ones of those.

Three bedrooms, a decent-sized one there.

A really decent-sized one here.

And then into this, which is your third bedroom.

I guess it's your master. It's a really good size.

Even got some storage space there. What can I say?

Fantastic. And don't forget that guide price. £48,000 plus. Whoa!

This place looks like the after in a Homes Under The Hammer renovation.

Almost every job you would expect to be done has been.

Mind you, I'm not sure about the way some of the work

has been finished off.

It seems like the electrical work...

Obviously there's been a rewire,

but they've put the cables in trunking.

And same for the pipes for the central heating.

Again, plastic trunking.

Look, it's over here as well. That looks rubbish, doesn't it?

I have to investigate further now.

It's like it in here too. It's funny, isn't it?

I didn't notice this at first,

but the moment you do notice it, it really starts to bug you.

# Why did you do it? Why did you do that thing to me? #

It's not causing any problems with the property,

but it's certainly an opportunity missed.

A nice finish can really make a difference.

But let's face it, it could have been a lot worse.

This is guided at £48,000 plus, remember.

Does a local agent think there's much more needed

in terms of spend on this?

Generally, it needs to be decorated, it needs to be having some sort of

small furnishings like curtains, things like that.

But not a lot at all. I think sort of £5,000 to £10,000,

and you could get the property up to a good scratch.

A small outlay could maximise profit. Let's talk figures.

This property in this location is very popular for rental.

You could look at up to £550 to £575 per calendar month.

I think this property, when it's done up to a good standard,

would be worth £100,000.

So a rare find on Homes Under The Hammer, a house that is

actually better on the inside than it looks from the outside.

Hmm, let's see who spotted it when it went under the hammer.

Semi-detached house, situated in a corner plot.

Starting us somewhere near £48,000. Can we see £45,000?

Make it £40,000, then, if you like. Thank you.

£40,000, I've got you there. £41,000 seated? £41,000. 42? 43? 44? 45? 46?

47? 47? 48? 49? 49, and 50.

-51...

-With a fast and furious start,

we leave the bidding and rejoin at £68,000.

..69 no. At £68,000, then, with you.

At £68,000, then, for the first time,

£68,000 for the second time, £69,000. 69, round up to 70.

71 now. 71. 72, 73, 74, 74...

75, no. At £74,000 here.

At £74,000, then, for the first time, second time...

Third and last time at £74,000...

-BANGS HAMMER

-Yours...well done...to number 40. Thank you very much.

And so, for £74,000 - £26,000 over the guide price -

the successful bidder is Andy.

Andy already has a small portfolio of properties in the area,

but this purchase was much closer to home

as he and his mother-in-law, Sue, explain.

-Andy, Susan, great to meet you both.

-Nice to meet you.

-Nice to meet you.

-Congratulations.

Tell me why you wanted to buy the house.

Well, I'd obviously seen the house has been empty for a while.

What do you mean, "obviously" seen it?

-Well, Mother-in-law lives next door.

-Sorry, you live next door?

-Yeah.

-HE LAUGHS

-How amazing.

So why did you want to buy it,

other than the fact it's next door to your mum-in-law?

We noticed the property has been empty for a long time.

It's been empty for about 12 years now.

And because it's been empty and derelict,

there have been numerous problems next door

with damp, and I think various other problems as well over the years.

-Yes, yes. We had children coming in...

-Vandalism and stuff?

..windows smashed. Then we had squatters.

And then we had a fire where we had to get out, we were evacuated.

And a lot of trouble.

So there came a time that I was afraid to go out the door,

because my husband's disabled.

I was afraid to leave my house empty for a certain length of time,

cos you just didn't know what was going to happen in this house.

-Oh, that's horrendous.

-You know? It was.

-Knight in shining armour here, then?

-Exactly, yeah.

Did you do it just for that reason? To help out Mum-in-law?

Well, this obviously had a particular interest

because of the issues it's causing next door.

We'd already been to see the owner

and made an offer on the property which was refused at the time.

So over the last few years, it is

an ideal property that we'd want to buy anyway.

In fact, this house was the subject of a compulsory purchase order

by the council in the end.

It's them who have restored the property to this stage.

Andy, who runs a financial services company, has not just bought

a sound house for his portfolio of 10 properties,

he's bought his mother and father-in-law peace of mind.

And you can't put a price on that.

So, tell me what you're going to do to finish it off?

-Well, as little as possible on the inside.

-Right.

We're just going to add a few units in the kitchen

and just bring it round, obviously flooring, decor.

A couple of issues we've got, the chimney on the roof

really needs to come down.

There's a few tiles missing and a couple of leaks.

So the first thing is to get the roof put right.

And of course, the largest part really is going to be on the outside.

-We'll have insulation on the outside of the walls.

-OK.

And it's the garden.

We don't know really what surprises that holds for us.

Slightly concerned around the back that there may be roots

under the property. When that's cleared,

we've really got to assess it then.

But of course it's really going to be, clear the gardens,

get some decking in, get new paths, get the fencing done.

That's probably going to take most of the budget.

So what's the budget for sorting it out then?

-Well, I've given it an initial cost of £10,000.

-And timescale?

-Timescale, eight weeks.

-And then what's the plan for it?

I think now we've got an opportunity to get in some neighbours,

we just want to make sure they're the right neighbours.

-And we've got the ideal person to keep an eye on things.

-Well, exactly.

-And are you going to check out the potential renters?

-I might do.

I think you absolutely should. Well, fantastic. Great.

I'm delighted for both of you. Good luck with it.

And we look forward to seeing how you get on.

-Thank you very much.

-Thank you.

Well, it couldn't be a more perfect purchase, could it?

Finally buying the house next door for your mum-in-law.

And also making I think a good investment decision

at the same time. How will Andy get on sorting this out?

And how will Susan get on vetting the new neighbours?

You can find out later in the show.

Well, from one castle town to another, this time

Rochester in Kent, a favourite with Charles Dickens, no less.

But will the story be one of Great Expectations or Bleak House

when it comes to today's auction lot in this pretty Victorian terrace?

With its close proximity to the station and location just off

the high street, this two-bedroom terrace I'm here to see is certainly

in a convenient spot.

And look at this wonderful, charming old church here. It is lovely.

Now, this place had a guide price of £95,000 to £100,000.

Time to head inside.

So, just when you think you've seen it all, another terraced house?

Oh, no. Look at this. It's incredible.

You've got stunning period features there,

and whoosh, a furry lion right here. Rrrr.

That is not what I was expecting to see in this terrace house.

You've got to come in here. You got to follow me in.

This is a first for me on Homes Under The Hammer. Ta-da!

Isn't this incredible?

Postcards, Christmas cards, birthday cards, posters.

It's all going on in this room. Blues, purples. But look at this.

Then you have this absolutely stunning fireplace.

I mean, look at the detail here. Wow.

This house is not what I was expecting.

Will it carry on in the same vein? I can't wait to find out.

Ditching the distinctive decor may be a top priority,

but I think the original sash windows may need a bit of TLC too.

The purple on the hall walls, mmmm, it does make it feel small,

and the dining room in the middle could also do with brightening up.

And that fireplace, should it stay, should it go?

There is a kitchen at the back. Ooh, look at this.

Now, that is incredible.

Down there, come and have a look, you've got a huge cellar.

And it looks dry, so that is a real plus point for storage space.

I was about to say it all calms down at the back here in the kitchen,

but no, still got red walls!

It's disappointingly small, I think, for a family house.

I mean, you've still got these really nice little features.

If you look beyond the paint you've got lovely doors.

There's so much beauty in this place.

But I would find this too small.

I'd also like to think about knocking through this wall.

But it is load-bearing, it's about that thick. I'm just wondering

if there's any way we could extend this kitchen that way, or that way.

Let's go and explore the garden.

Well, I'm happy to say there's lots of space out here.

And I have noticed that other people in the road have extended this way.

So you could easily go out here with the kitchen,

get rid of this outside loo, which is just being used for storage,

and that would really improve the space.

But I think the nicest thing about coming out here,

it's got a sense of history, this garden. It really is beautiful.

It's like a walled garden.

You've got this beautiful aged brickwork going on along here.

I don't know if you can see this,

but there's this little castle turret over there.

You are hemmed in by the wonderful church, which is

just outside the front. It really is quite special.

After all, I suppose this is historical Rochester.

Back inside and upstairs,

things are looking a bit dated in the decor department.

But the two bedrooms are a decent size, and more fireplaces.

Hurrah, lovely ones.

Even the bathroom has a fireplace,

but that's because it probably used to be a bedroom,

so that poses a quandary.

Do you move the bathroom back downstairs where it used to be,

and create a three-bedder?

We asked along a local estate agent to get his thoughts on this place.

I would go towards moving the bathroom, if you could, downstairs,

and maybe a small extension at the back of the kitchen,

and thereby creating three separate bedrooms upstairs,

which would then move you up a bracket in terms of the property,

and increase its appeal if you were selling or renting.

OK, and bearing in mind the £95,000 to £100,000 guide price,

what might the re-jigged mid-terrace fetch on the resale market?

If you were to create a three-bedroom property here, I think

you could achieve a price in excess of £135,000.

And on the rental market?

If this property were renovated as a three-bedroom property, I think

you could achieve a figure of around £850 per calendar month.

This property is not quite picture-perfect,

but it's unique, there don't seem to be any structural issues,

and it really is lovely to find period features such as those

old fireplaces still left intact. And look, what an amazing location!

Let's see what happened when it went under the hammer.

Lot two is a house for improvement.

It's part gas heating,

two bedrooms and bathroom on the first floor.

Can I start at £90,000 somewhere? £90,000 bid I've got.

And two, at 92, 92. 95, 95, 95, 97.

At £97,000, and 100.

And two. 102.

104, 106, 108, 110, and 12.

At 12, at 12. And 14 and 16.

At 16, at 16, at 18, and 20.

At 20, at 20, and two, 24.

24, 26, 28. £128,000.

And 30. 127, you've been with it a long time.

No? £128,000 I've got. £130,000 I'm looking for. 130, do I see it?

Are you out of it?

Yep. At £128,000 at the back of the room, £130,000 I'm bid.

130 on my left-hand side. £132,000, it's against you, madam.

At 130 on my left, £132,000 I'm looking for. £132,000 I'm bid.

£134,000, now it's against you. £134,000, can I say?

At £132,000 in the back row, been there a long time.

For the first time, then, at £132,000...

Second time at £132,000... Third and final time, all done at £132,000.

-All done?

-BANGS HAMMER

Back row, and the number is G481.

And that successful bid of £132,000, well over the guide price,

was placed by Sasha,

who attended the auction with her husband, Marino.

Now, Sasha and Marino both have Italian roots,

and they met when Sasha was working in an Italian ristorante.

I met the couple back at la casa to see what was on the menu.

-Sasha and Marino, lovely to meet you both.

-Thank you.

So what happened on auction day? How much did you intend to spend?

Well, my budget line was about £125,000,

but unfortunately it went past that before we even started bidding.

So I said, "We have got to have the house.

"Let's go a little bit more, it doesn't matter.

"£10,000 here or there doesn't matter.

-"We've got to get it," you know?

-He got more excited than you.

Well, he was. I was surprised because I knew the limit.

I was really nervous. It was the first time. He said, "No, continue."

And when the lady came when we got the house,

the lady came and said, "You are the one who is buying?"

And I said, "I am, but he's paying." She was a bit surprised!

-What was it that attracted you, Marino?

-The original features.

The fireplaces, the house being untouched for many years.

It's amazing, I mean this building has got so much going for it.

-The character, I mean it's oozing out.

-Yes.

But practically, it doesn't work terribly well.

So what are you going to do to turn that around,

-and to make it everyday living?

-Everyday living, I think we are

going to convert the room we're in at the moment into a kitchen,

possibly move the bathroom upstairs, down to the back room here.

And to turn it into a three-bedroom.

And basically do all the necessary plasterwork,

and get it all tidied up.

So three beds is the plan? Well, that certainly is an option.

But Marino and Sasha did pay well over the guide price

at the auction, so they'll have to watch the purse strings.

Sasha has a degree in fine arts and works as a decorative artist,

and Marino is a full-time property developer.

But this is the first project the couple have taken on together.

-So you're already a property landlord, Marino?

-I am, yes.

So you've managed to talk Sasha into coming on board?

Yeah, I'm trying to take her on board and show her what I know

in my experience through the years of what I've done, you know?

-So hopefully this is the first of many.

-And it's quite interesting

-because you want to put your fine art degree to good use.

-Yes, I do.

So how will you do that in this property?

Well, what I really love in this house are the fireplaces.

So we're probably going to bring back the original colour

and shine back a little bit more, and maybe the doors.

I'm not quite sure yet because I don't want to overdo it too much.

So how will you put that art degree to good use?

Are we going to see a beautiful painting on the wall?

Probably a little bit. Not too big, but, yes, probably something.

-Something there.

-Yes.

It took Michelangelo over four years to paint

the ceiling of the Sistine Chapel,

but Sasha and Marino plan to turn the mid-terrace round

in three months, and on a budget of just £10,000.

-Honestly, do you think you can stick to that budget?

-I'm hoping I can.

We're going to do a lot of work ourselves,

to save a bit of money.

But we've got to get professionals in to do the kitchen and bathroom.

But, yeah, I think we can manage it.

-So this is your first project together?

-Yes.

How do you think it's going to go?

Cos obviously you fell in love over meatballs and spaghetti.

Yes, we did!

How do you think this is going to be, you two working together?

-I think it's going to be fantastic.

-Brilliant.

-It's fun. I'm excited.

-And was it meatballs and spaghetti?

-It was!

-Was it?

-Yes!

-So yeah, I'm happy.

-And do you both agree on the same thing?

-Most of the time, yes.

-Otherwise, I win. He gives in!

But no, I'm sure it will be fine.

Guys, it's been such a pleasure meeting you both today.

I really hope you manage to squeeze some profit out of this

somewhere along the line. Don't overspend. Good luck. Thank you.

-Marino, nice to meet you.

-Thank you.

-Sasha, thank you.

-Thank you.

Wow, we are certainly going to see some creative flair in this

property, and I cannot wait to see Sasha's painting.

However, it's not all about the design and decor.

The couple need to keep a close eye on that budget as well.

Will they earn enough for Sasha to continue onto her next

property venture?

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

Coming up: This Derbyshire house isn't exactly oozing curb appeal.

So entering with slight trepidation...

Back in Kent, we see what Sasha and Marino make of property developing.

A bit stressful! But we're pleased with the result.

-Oh, yeah, I'm pleased with the results, yeah.

-Happy.

But first, we return to the Welsh town of Caerphilly.

And it was here that we met property developer Andy

and his mother-in-law, Sue.

Andy bought this three-bed semi for £74,000.

But this was no ordinary property deal.

Andy was being a knight in shining armour for his parents-in-law,

who live next door to the house, which had been

a source of real worry for them.

It's been empty for about 12 years now.

And because it's been empty and derelict,

there have been numerous problems next door, with damp,

-and I think various other problems as well over the years.

-Yes, yes.

-We had children coming in.

-Vandalism and stuff?

-Windows smashed.

Then we had squatters, and then we had a fire, and a lot of trouble.

So there came a time when I was afraid to go out the door.

My husband's disabled.

I was afraid to leave my house empty for a certain length of time,

cos you just didn't know what was going to happen in this house.

Oh, that's horrendous.

The house was in a good state internally

because the council had renovated it.

Now Andy had bought it, things were on the up.

Indeed, there was really just cosmetic work to do.

So, three months later we are back to see if Sue and Andy

have got new neighbours.

Finally the house looks as good on the outside

as it does on the inside.

The whole house looks clean and fresh

and ready for a new neighbour to move straight into.

Andy was fortunate in that a lot of the basic work had been done.

So what did he see as his priorities?

The kitchen and bathroom was already there.

We needed to tile the bathroom, put a screen in and do the floors.

The kitchen we extended,

but apart from that, the essential elements are still there.

We've just really done the cosmetics and put in the finishing touches.

The house came with key features like a new boiler,

bathroom suite and new radiators. But there were some negatives.

The rewiring and plumbing had rather inelegantly been put in trunking,

and there was no downstairs toilet.

And all of this still remain the same. So why's that?

We decided not to pull that out,

purely because economically it wasn't worth it.

Andy then has changed the interior with his investor's hat on

and concentrated on doing the jobs that had to be done.

And top of that list was the jungle of a garden.

And Andy's team have transformed this space.

Andy also took advantage of a government scheme to add

a layer of concrete insulation around the property,

which has improved the rendering dramatically.

This was an unusual house in that the outside was worse

than the inside, so it isn't surprising that this is where Andy

faced the biggest challenges.

Well, there's been enormous changes out here.

This was the biggest issue that we've had, was the garden,

because it's been overgrown for 10, 12 years now.

We've had tree roots over here, grown on to the paving,

which had ripped it all up.

We had tree roots in the corner which was causing problems there.

So we just had it ripped out.

We've had it all topsoiled there, a fence put in. Re-turfed.

And then around here we've had all decking put in.

It's been really nice to come back and see the outside,

and what it was then and how it is three months later there.

And there's been an awful lot of people just coming up

to have a look, because they've just been used to this bomb site

for the last 10 years.

So, a decade worth of disuse has been swept away in just 10 weeks,

well within Andy's timescale.

The budget was £10,000. What did he spend?

£11,000 is what we've ended up on. And that was...

Well, we always suspected there'd be a few extra bits to add on there.

And people say it's an extra 10%

and that's exactly what it is come in at.

A slight overspend,

but you can't put a price on getting peace of mind.

So, is mother-in-law Sue happier now?

It was just nice hearing voices and seeing a light on in here.

And he had the radio on while he was working.

It was lovely to know that somebody was here. You feel safer.

Andy has already secured a tenant,

and I suspect that is because Sue is the perfect local letting agent.

I know a lot of people around here, and they knew this house was going.

So they inboxed me on the tablet, and I knew nearly all of them

that asked, and that's how we decided.

Well, from one local lettings whizz to two local property experts,

what will they make of this three-bed end terrace?

It's been modernised and renovated to a good standard.

It offers good space throughout,

-and a very nice property in general, really.

-I like the property.

It's of good size and proportion. It's been decorated to a standard

of white emulsion throughout,

laminate flooring and standard carpeting.

Andy bought it at auction for £74,000

and spent £11,000 on renovation, giving a total spend of £85,000.

Could Andy recoup that if he sold on?

I would expect to achieve between £95,000 and £100,000.

I would expect it to achieve in the region of £100,000 to £110,000.

A top valuation of £110,000 would give Andy a £25,000 pre-tax profit.

What does he make of those valuations?

It's slightly more than I expected. I did expect the mid-90s to late 90s.

£100,000 to £110,000? That's quite impressive.

-It's better than I thought it would be.

-Here come the crucial numbers.

Andy has always planned to rent,

so what could he make on the lettings market?

I would expect this property to achieve in the region of £500

per calendar month.

On the rental market, I would expect to achieve between £500

per calendar month to £550 per calendar month.

An average of £500 per calendar month would give Andy a 7% yield.

Is that in line with what he got from the new tenant?

Again, very good. Expectations exactly what I expected them to be.

We have rented it out for £500 a month. So that's bang on the money.

After a decade of dingy dereliction next door,

the son-in-law must be top of Sue's Christmas card list.

He's my only son-in-law. But my favourite one, yes. Lovely.

Smashing.

Well, after a tale of the house next door,

we move from Wales to neighbouring England.

Nestling at the southern edge of Derbyshire is the beautiful

county town of Matlock.

Discovery of thermal springs in around 1698 brought about

the creation of a spa, and Matlock Bath to the south of the town.

A picturesque and historical part of the country, Matlock

brings in the tourists and is a sought-after area in which to live.

Well, a mile from the centre of Matlock

and three miles from Matlock Bath is the property I'm here to see.

It is in this fantastic elevated position,

so you've got wonderful views over the surrounding countryside.

The house itself though? Well, from the outside it's a little bit tired.

Two bedrooms, semi-detached, had a guide price of £65,000 plus.

Let's venture inward.

Hmm. Yes, the outside doesn't bode well.

You can already see there's a fair amount of window work

needing to be done.

It's like this place hasn't been touched since it was built.

So entering with slight trepidation,

given that it does look like it's in a bit of a state from the outside.

What have we got? Quite an interesting design, actually,

into this little sort of entrance area here.

Your kitchen facing you there,

stairs up to the bedrooms, and then over this way into the lounge.

Nice big windows.

And not dual aspect, as in there's no window at that end.

But it's a good size. Central focal point there, the fireplace.

An open fire. I think with a modern sort of fire surround on there,

that would be a really lovely feature in this room.

And then this is one of those houses that I really like,

where you can actually walk round the whole of the downstairs

in one kind of circular movement, if you like,

as you come through off the lounge there into the kitchen.

And yes, it is in a state.

I think if I pushed too hard on that window frame it would fall out.

So yeah, new windows required, new doors required.

Flooring, new kitchen. It's one of those total refurb jobs.

But in terms of what you've actually got in terms of a layout,

straightaway it just works.

# In this lonesome old house

# In this lonesome old house... #

It's almost like a museum piece from the 1950s

with its Bakelite switches, old wiring and electrics,

and even an original Belfast sink in the kitchen.

A door in the kitchen leads down into the old coal cellar,

but it's upstairs I'm headed in this house that time forgot.

So up here, and yes,

it continues to be in need of a bit of tender loving care.

But again, everything is where you'd hope it would be.

Bathroom up here, it's not huge. Obviously in need of a new suite.

But at least it's upstairs, which is good.

And it's not a bad size in proportion to the house.

The bedrooms, there are only two of them.

One there at the back, and this one at the front.

But again, really nice sizes.

And I'd rather have these two decent-sized bedrooms than maybe

three smaller ones. In-built storage.

It's an ex-local authority house, the sort of thing you expect.

It's solid, it does what it's supposed to, and I really like it.

# I like it, I like it... #

Yes, it's stuck in the 1950s and needs totally updating.

But it seems structurally sound and has great proportions.

What's not to like?

Although I haven't seen the back garden yet...

So at the back, what have we got?

Well, at the moment, it's a bit of a jungle! As you can see.

But a good-sized garden.

It goes all the way back there, probably another...

I don't know, 20, 30 feet from where I am. So that's nice.

The big thing you also see

when you come out of here is more of those beautiful views.

Look out that way there.

So I wonder how you could best utilise this space,

to make the most of that.

How about building some kind of decking here,

or just a really nice flat lawn, and then some steps down this way?

And at the same time, why don't you open up that living room?

That's actually the back of the living room there,

where those two little outbuildings are.

Knock that through, put in a set of French doors, dig this out,

some steps up to the decking.

That would, I think, totally transform both the lounge -

cos you'd have more light in there - and also the garden.

Because suddenly it would be a really nice space to be.

Well, I'm feeling inspired.

Yes, it's dated and has a jungle for a garden.

But at a guide price of just £65,000,

I think this could be a cracking little property.

Let's see what the auctioneer who sold it makes of it.

I think the property is structurally sound.

It's just a question of wholesale refitting and updating.

So it's the whole range really

of a refurbishment schedule that's required here.

There's certainly a demand for this sort of property.

I mean, just because of its condition, it will appeal to people

who want to sort it out and either resell it or rent it.

From a rental point of view,

it would rent out very, very easily indeed.

Music to every investor's years. Let's talk figures.

I would say once renovated this has got a market value

of probably between £105,000 and £110,000.

Rental value of this property, once refurbished,

would be in the order of £500 a calendar month.

Well, you will be in one of two camps on this one.

The A camp, who say, "I wouldn't touch that with a barge pole.

"You couldn't possibly live there, it's a mess."

Or, the B camp, which is the, "You know what, this is a classic

"fantastic auction purchase that you can add value to,

"and actually, intrinsically it's a great house."

I hope you are in camp B, cos that's where I am.

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

Two-bedroom semi-detached house that needs a full scheme of renovation.

£58,000 to start me? 58? 58, thank you in the centre. At £58,000.

59, somewhere else? 58 is my starting bid, 59 I've got.

59, at 60.

At 60, 61, 62 is bid.

62, 63, 64, 65, 66...

With the lot generating plenty of interest,

we rejoin it when the bidding reaches £79,000.

..79, at 79...

Against you on the telephone at £79,000.

500, that's definite, is it?

Well, sort of. I think you'll bid me again.

OK, £79,750.

£80,000.

At £80,000... Once...

250. £80,250.

500?

£80,250, that's the way you buy them, right in at the death.

At £80,250, once, twice, third time...

-BANGS HAMMER

-Sold at 80 and a quarter. Thank you.

# I've got the key I've got the secret

# I've got the key to another way... #

Nipping in at the death meant the winning bid has gone

to Gary for £80,250.

Gary runs a kitchen and bathroom fitting company

with his brother, John.

I met him to find out more.

-Gary, good to meet you.

-Good to meet you.

-Congratulations.

-Thank you.

-You did one bid just then.

-The last bid, yeah.

-Wham. Is that a strategy?

It is, yeah. I wait till the end,

till everybody has exhausted themselves, and then I bid.

-Tell me why you wanted to buy it.

-I like the area. I like the property.

I thought, it's only cosmetic I need to do to it.

There is no structural work. So I'm quite happy to buy it.

It's a nice design and layout, isn't it?

Yeah, it's not bad at all, yeah. The rooms are quite spacious.

The bathroom's not a bad size. It's all right for a rental.

-Yeah, is that the plan then?

-That's the plan, yeah, rent it out.

-Is this something you do then?

-I've done it before.

We've worked on other people's properties.

I've actually bought at auctions a couple of times,

I've bought land before.

So yeah, I just wanted a property in Derbyshire to add to the portfolio.

-On your own?

-No, with my brother. We work together.

And he's not here today?

He's not here today, no, because his wife has given birth,

about a week early. So he's actually at home with the baby at the moment.

-Oh, wow!

-So he would have been here, yeah. He would have been here today.

-We're pulling my father in to help out as well.

-Oh, wow.

-He's a joiner.

And although he's retired, we'll get him in here working with us.

So yeah, it'll be a bit of a family job.

Gary sounds like he'll be keeping the family on their toes,

so what is the plan?

Total refurbishment, pretty much everything you see here will be gone.

New doors, new bathroom, new kitchen. New fireplace.

Just refurbish the place, yeah.

And a bit of a good weekend with a strimmer and an axe in the garden?

Yeah, I think the garden is one of the things I'm not

too worried about, really.

We'll get cracked on with that, get some strimmers down here

-and we'll get cleared.

-Right.

So what's the budget for what you're going to do?

We're looking to spend £10,000 to £12,000 on it. Hopefully £10,000.

We've done our sums on it and we're looking to about £10,000,

but obviously we're always looking to pay 20% over.

-You just don't know what you're going to find.

-For sure.

But nothing, from your initial scout about, to worry about?

No. Nothing major. I've had a good measure up.

I'll put in central heating myself. My brother does electrics.

So we've only got to probably have somebody in

for the plastering work. I don't do plastering,

-so that's all we have got to pay for.

-So do you enjoy doing this then?

-I do. I really enjoy my job.

-Is it a full-time job?

It is now, yeah. Yeah.

I work for other people during the week, but this,

for the next 10 to 12 weeks, will be the main job, working on this.

-Well, congratulations. Good luck with it.

-Thank you very much.

-We look forward to seeing how you get on.

-Thank you.

Well, I think Gary has got himself a great project here.

Yes, I really do like this house and can't wait to see how it turns out.

Although how much help he's going to get from his brother with that

new baby, I'm not too sure.

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

We've seen what one of our buyers did after buying at auction.

Let's see what happened to the others.

We return now to historic Rochester in Kent where we were

looking at this classic two-bedroom Victorian terrace.

At least, that's how it looked from the outside.

So just when you think you've seen it all, another terraced house?

Oh, no! Look at this.

With posters, postcards, and even rugs on the wall,

I don't think I've ever seen such a poster-plastered pad before.

However, this house did have big pluses as far as I was concerned.

A lovely, private back garden, a basement for storage,

and my favourite features, those beautiful fireplaces.

And it was the original features of the property that had drawn

Sasha, who works as a decorative artist,

and her husband Marino, who is a property developer,

to see potential and pay £132,000 at auction.

So what happened on auction day? How much did you intend to spend?

Well, my budget line was about £125,000,

but unfortunately it went past that before we even started bidding.

So I said, ""We've got to have the house, let's go a little bit more.

"It doesn't matter. £10,000 here or there, it doesn't matter. We've got to get it."

The lady came and said, "So you're the one who is buying?"

And I said, "Yeah, I'm the one, but he's paying!"

Well, as well as thorough modernisation,

Sasha and Marino were thinking about moving the bathroom downstairs,

reclaiming the space upstairs for a third bedroom.

However, having spent £132,000 on a property

with a £95,000 guide price, the couple were going to have to keep

an eye on further spending,

else risk eating into any potential profits.

Sasha and Marino planned to turn the house round in three months,

and just over nine months on, we are back.

We didn't doubt you guys for a second.

When we took over the house we came in and removed all the carpets

and postcards and things on the wall, as you can see,

had it re-plastered,

rewired, replumbed, new bathroom, new kitchen,

and of course decorated throughout.

The new additions are really lovely,

and of course vital for modern-day living.

But I'm so glad to see that they kept those wonderful original

features, including those sash windows.

We had a bit of an argument about the windows

because he wanted to change them and I wanted to keep the original ones,

because we were all along trying to keep it as original as we could.

So I won.

Good work, Sasha. I know Marino has a point, they will never

be as energy-efficient as modern double glazing.

But I have to say they look beautiful,

and as they are original features, changing them may have needed

permission from the local authority

and this can never be taken for granted.

In this case, I think restoration was by far the better choice.

Speaking of choices, there is no extension.

And the bathroom remains upstairs.

So why did they decide against those changes?

We looked quickly at the cost of extending it.

Viably, it wouldn't be worth spending the money on the house

for what the market is actually doing in the area.

So we decided just to put a new kitchen where it was

and move the boiler into the outer house,

just so it gives us a bit more room to put a nice kitchen in,

which I think we've done.

Three bedrooms would have been ideal if I was keeping it

as a rental property, but as it's a house we're going to sell,

we thought any family coming in would not want to go downstairs

to the toilet in the middle of the night,

so we decided to keep the bathroom where it was, and just replace it.

Adding a bedroom and extending the kitchen would undoubtedly

have added value, but Marino has done his research.

The couple were on a tight budget of £10,000,

and as an experienced property developer,

he's made an informed decision, which is difficult to argue with.

And it seems Sasha used her artistic experience too.

We did add something just to make it a bit more special.

I decided to keep it very simple,

because it had the fireplaces which are already quite rich.

Not too much, otherwise it would have been a bit too heavy. A few details.

And very tasteful they are too.

But Sasha's artistic talent was never in doubt,

it was the budget that I was worried about.

Basically, the budget was £10,000, as you know,

but we've gone a little bit over the £10,000.

-It's £15,000.

-And it wasn't just their budget that they exceeded.

The three-month timescale proved hard to meet because of delays

in getting the tradesmen they wanted.

But Sasha thinks the delay isn't all bad.

It did work quite well for us as well.

Because the market price went a bit higher. So I think it did help a bit.

Yeah.

Let's hope Sasha was right about that,

because they did pay over the odds at auction, and have overspent.

If you add that £132,000 purchase price,

and their £15,000 renovation budget, that brings their total to £147,000.

We asked two local agents along to give us their thoughts.

I feel that the property has been modernised to a good standard,

although they have kept a lot of the original features, which is

a nice thing.

This is my second time inside the property.

The first time it was in a very poor state.

This time it has been done to an acceptable standard.

There's an excellent demand for this type of property in the area.

First-time buyers are still looking for property.

We're finding this type of property is selling quite quickly.

The couple decided against extending the property.

Has that been a mistake in terms of resale value?

Remember, they've spent £147,000 so far.

If the owner were going to market the property for sale,

I would suggest a figure in the region of £160,000.

I would expect this property to achieve

something in the region of £160,000.

A sale of £160,000 would give Sasha and Marino

a profit of £13,000, minus the usual taxes and expenses.

But what do they think of those valuations?

-No, we...

-Very low.

-Yes, very low.

Mmm, a disappointing figure for both of them.

Will the rental valuation prove more positive?

For rental,

the property should achieve in the region of £650 per calendar month.

I would expect this property to achieve something in the region

of £750 to £800 per calendar month.

I think £700 is more of a realistic price.

I think going to £800 would be too much for the area.

But we're not thinking of renting anyway.

But I think £700, £750 is a very nice, reasonable price.

£750 per calendar month would mean a respectable yield of just

over 6%, but they're still not interested in renting.

Hang on, why ever not?

We've had a cash offer of just below £175,000,

and it's only been on the market three days.

So we are quite impressed. So, yeah.

If that deal does go through,

that would see a nice pre-tax profit of £28,000.

-So would they do it again?

-It was good fun. It was a good experience.

-It was fun!

-A bit stressful. But we are pleased with the result.

-I'm pleased with the results, yeah.

-We are happy.

Now, back in the Derbyshire town of Matlock,

will this two-bed semi fare as well?

It certainly was in need of some attention.

Rundown kitchen,

dilapidated bathroom,

no central heating,

and a garden that was a tangled mass of overgrowth.

This place wasn't just tired, it was worn out.

But buried beneath all this neglect looked a solid house.

It just needed someone to unearth its potential.

Cue Gary, who thought he had what it takes

to get this house back on track,

and so bought it as a joint purchase with his brother, John,

with a decisive bid of £80,250.

# I want you now

# I want you now... #

-You did one bid just then.

-The last bid, yes.

-Wham.

-Is that a strategy?

-It is, yeah.

I wait till the end, till everybody has exhausted themselves,

-then I bid.

-Tell me why you wanted to buy it.

-I like the area.

I like the property. I thought, it's only cosmetic I need to do to it.

-There's no structural work. It's all right for a rental.

-Yeah.

-Is that the plan then?

-That's the plan, yes, I'd rent it out.

Gary, along with his brother John,

run their own business fitting kitchens and bathrooms,

so hoped they could do the majority of the work on a budget

of £10,000 to £12,000 at a timescale of 12 weeks.

Well, now, three months later, we're back.

As I suspected, there was a decent house lurking in the undergrowth.

And with new windows and a low-maintenance front garden,

well, the curb appeal has gone up a notch or two.

And inside?

Bright, light and airy, and with new central heating fitted,

well, there was no need for that old fireplace.

And remember that very sorry kitchen? Just look at it now.

Well, you would expect kitchen fitters to come up with

a good solution. And they have.

Knocking down the door to the hallway,

they've made it bigger, with more units and work surfaces.

And upstairs?

Well, the two bedrooms have been replastered, redecorated,

and completely revamped.

The bathroom is well on its way.

It just needs a little bit of finishing off.

So inside the house has been rejuvenated.

But then there was that back garden...

The biggest challenge was the garden.

We had to cut it back, we had to have diggers on the site.

And we've replaced it all with decorative chippings.

Well, it might look a bit sparse and bare now,

but give it a few months and this will be a fantastic space.

And the views aren't bad either.

The majority of the work has been done by me and my brother.

I've had help from my father as well,

doing a lot of the work done here.

My wife has done a small amount of painting,

and I've even had my mother down cleaning the house.

It has, as Gary promised, been a family effort.

But wait a minute, hasn't his brother, John, just become a father?

So how did he cope with a new baby and doing the renovation work?

He's got on quite well with the property, although they've had

quite a few sleepless nights with their new arrival, Maggie.

While new arrival Maggie kept her parents awake,

Uncle Gary cracked on with the work.

And he hopes to finish it all in a couple of weeks.

But will it be done on budget?

The initial budget was £10,000 to £12,000.

We've come in at £12,000, so both me

and my brother are quite pleased with that.

£10,000 on top of their £80,250 purchase price would take

the brothers' spend to £90,250 without costs or fees.

So is it money well spent? What did two local estate agents think?

It's the first time inside the property.

I think the work that's been carried out looks very professional

and the layout works really well. There are good-sized bedrooms,

nice sized sitting room and a good, fitted kitchen.

The selling points of this property are most particularly the view.

And in terms of the work done,

it has been done to a good standard,

with a modern edge which is what is expected in today's market.

The plan is to let the house out.

But how would their £90,250 investment fare

on the current resale market?

If the owner was going to place the property on the open market,

I would expect it to achieve in the region of £115,000.

I would expect it to achieve a figure in the region of £110,000.

I'm very happy with those figures, yeah.

For what we've spent on it, and how long it has taken us to do,

I am very happy with those figures.

That's not bad. That's a potential profit

of between £20,000 and £25,000, minus the usual taxes and expenses.

But what about those all-important rental returns?

If the property were placed on the market for rental, I would

expect it to achieve in the region of £500 to £550 per calendar month.

For a rental figure, I would expect to achieve

a figure in the region of £500 per calendar month.

I'm very happy with the figures

they have both shown, but I've actually got a higher rental figure.

And I've got someone moving in in the next week or so.

Well, that's fantastic news.

And a figure above £550 per calendar month would see a healthy

rental yield in the region of 7%.

So what's next for Uncle Gary?

Previous to this auction we bought a plot of land close to where I live.

We plan to do a new build on there, a bungalow.

We are also looking at other properties to buy to rent out there.

We've had a good experience of this one and we want to carry it on.

Well, there are lots of lessons to be learnt in the world of property.

Stick with us and we'll give you some tips.

Join us next time as we meet more plucky buyers

buying their homes under the hammer.

-We'll see you then.

-Goodbye.

-Goodbye.