0:00:02 > 0:00:03Hello and welcome.
0:00:03 > 0:00:06It's amazing how some people start off by dabbling in property
0:00:06 > 0:00:08and then it ends up taking over their lives.
0:00:08 > 0:00:10Not surprising, really.
0:00:10 > 0:00:12It means that you can work your time around your family
0:00:12 > 0:00:14and you can just make money for yourselves.
0:00:14 > 0:00:18But the key is to buy the property at the right price in the first place.
0:00:18 > 0:00:22One way you can do that is by visiting the auctions.
0:00:47 > 0:00:50Well, we've said it before but we'll say it again -
0:00:50 > 0:00:53the best way to avoid unforeseen problems at the auction
0:00:53 > 0:00:56is to do your research.
0:00:56 > 0:01:01Now, did today's buyers take our advice? Here's what they bought.
0:01:02 > 0:01:04We are in Ramsgate to see this.
0:01:04 > 0:01:06Well, at the least the bottom flat!
0:01:06 > 0:01:08A smell of damp hits you.
0:01:08 > 0:01:11You really feel like you're underground.
0:01:12 > 0:01:16This buyer's feeling a little flat about his new apartment.
0:01:16 > 0:01:20- Tell me why you wanted to buy this flat?- Well, I didn't really.
0:01:22 > 0:01:26And our tale of three flats ends with a desirable spot in the capital.
0:01:28 > 0:01:30So, expectations are high.
0:01:34 > 0:01:36All these properties have been sold at auction.
0:01:36 > 0:01:39We'll find out who bought them and what they paid for them
0:01:39 > 0:01:41when they went under the hammer.
0:01:47 > 0:01:49This is Ramsgate in east Kent.
0:01:49 > 0:01:53Apart from its stunning waterfront, this large town can also
0:01:53 > 0:01:57claim to be the only royal harbour in mainland England.
0:01:57 > 0:02:00A mark of honour granted by King George IV
0:02:00 > 0:02:04in 1820 after the hospitality he received here.
0:02:04 > 0:02:07So, let's hope the property I'm here to see
0:02:07 > 0:02:09will be giving me a warm welcome.
0:02:10 > 0:02:13Now, the great news is the two-bedroom flat
0:02:13 > 0:02:17I'm here to see is just a stone's throw from the waterfront.
0:02:17 > 0:02:20The sea is literally just over there.
0:02:20 > 0:02:23This place had a guide price of £55,000-65,000
0:02:23 > 0:02:28and it is in this gorgeous, Grade II listed building.
0:02:28 > 0:02:30I cannot wait to have a look around.
0:02:30 > 0:02:36'The building dates from 1851 and look, it's full of character.'
0:02:36 > 0:02:38However, it's right down there.
0:02:38 > 0:02:43Let's hope the condition isn't too historic inside.
0:02:48 > 0:02:51You certainly feel like you're underground.
0:02:51 > 0:02:54A smell of damp hits you as soon as you walk in
0:02:54 > 0:03:00and a sort of vaulted room there, a rather redundant area here.
0:03:00 > 0:03:03It's like you're walking into a mysterious cave
0:03:03 > 0:03:06and you really feel like you're underground.
0:03:06 > 0:03:08Another room through there.
0:03:08 > 0:03:12I suppose you could have a small bedroom, a bedroom.
0:03:12 > 0:03:15A rather nice hallway. I do like this.
0:03:15 > 0:03:18You've got a little bathroom through there.
0:03:18 > 0:03:20There's bits of character around.
0:03:20 > 0:03:22Not too many beautiful features
0:03:22 > 0:03:26but you definitely feel that you're in somewhere old and cold.
0:03:28 > 0:03:30Yeah, it is quite historical.
0:03:33 > 0:03:35Well, you could say this lower ground floor
0:03:35 > 0:03:39certainly shows its history and while the kitchen looks serviceable,
0:03:39 > 0:03:42it won't be remembered in days to come.
0:03:42 > 0:03:46Fortunately, the good size of the lounge does leave an impression
0:03:46 > 0:03:50but I think you know what the worst thing about this flat is.
0:03:50 > 0:03:54# Oh, that smell
0:03:54 > 0:03:57# Can't you smell that smell... #
0:03:57 > 0:04:00But while that dampness can be addressed,
0:04:00 > 0:04:02there are two potential problems
0:04:02 > 0:04:04that might be a little more troublesome.
0:04:04 > 0:04:08The lease length for the flat is only 70 years, which is not ideal.
0:04:08 > 0:04:11And remember, this is a Grade II listed property
0:04:11 > 0:04:17meaning it's of special interest and that throws up a host of issues.
0:04:17 > 0:04:21Well, it's lovely to own a little piece of history but that
0:04:21 > 0:04:25Grade II listed title doesn't come without its restrictions.
0:04:25 > 0:04:28Each building is different but broadly speaking,
0:04:28 > 0:04:32you will need to get listed building consent before you alter
0:04:32 > 0:04:35anything which could affect its character.
0:04:35 > 0:04:38I would advise anyone taking on such a property to start-up
0:04:38 > 0:04:40an early dialogue with the conservation officer
0:04:40 > 0:04:44and get them onside before the renovation work commences.
0:04:44 > 0:04:49So, a few complications that could put potential buyers off.
0:04:49 > 0:04:51That is until they step out of the lounge French windows
0:04:51 > 0:04:54and into the communal gardens.
0:04:54 > 0:04:58Do you remember me mentioning how close the seafront was to this building?
0:04:58 > 0:05:01Just have a look over here.
0:05:01 > 0:05:05If ever there was a selling feature for a flat, it's the sea view!
0:05:05 > 0:05:08Look at that! Absolutely gorgeous.
0:05:08 > 0:05:11Even on a blustery, windy day like today,
0:05:11 > 0:05:14I'd never tire of looking at that.
0:05:16 > 0:05:21The view alone makes this an interesting item but with that
0:05:21 > 0:05:24£55,000-65,000 guide price, it's time to find out what a local
0:05:24 > 0:05:28estate agent thinks of this rather unique property.
0:05:28 > 0:05:32The flat does need a programme of improvement works.
0:05:32 > 0:05:34It's obvious there's some damp issues here that have to be
0:05:34 > 0:05:39resolved, there's other things to be done with regards to the kitchen
0:05:39 > 0:05:43and bathroom and the lease has to be extended.
0:05:43 > 0:05:45The length is a problem.
0:05:45 > 0:05:49Most lending sources would look at 70 years as being a cut-off point.
0:05:49 > 0:05:52Anything less than that is considered a short lease
0:05:52 > 0:05:56so it would be highly advisable to extend the lease.
0:05:56 > 0:05:59But that would involve extra costs to the new owners,
0:05:59 > 0:06:02possibly running into thousands of pounds.
0:06:02 > 0:06:04But what could this little piece of history be worth
0:06:04 > 0:06:06after some improvement work?
0:06:06 > 0:06:10Once renovated and the lease extended, I would recommend,
0:06:10 > 0:06:13because of historical sale values in the block,
0:06:13 > 0:06:18an asking price in the region of £135,000-£145,000.
0:06:21 > 0:06:23Once renovated, I would recommend a rental figure
0:06:23 > 0:06:27in the region of £600-650 per calendar month.
0:06:29 > 0:06:32Well, this flat does throw up a few issues but there is no
0:06:32 > 0:06:37denying it's a unique and beautiful building in a fantastic setting.
0:06:37 > 0:06:41With the £55,000-65,000 guide price,
0:06:41 > 0:06:45I think it could be a great opportunity for someone.
0:06:45 > 0:06:48Let's see who agreed when we went to auction.
0:06:51 > 0:06:55Lot 28. Two-bedroomed flat located in iconic building.
0:06:55 > 0:06:58Give me 55, then. £55,000.
0:06:58 > 0:07:01I'm obliged. And 60 now, do I see?
0:07:01 > 0:07:04At 60. I'm obliged. At 62. Is that a bid, sir?
0:07:04 > 0:07:08At 62. 65. 65. 67.
0:07:08 > 0:07:13And 70. At 70. And two. And five. And seven. And 80.
0:07:13 > 0:07:16And two. 82?
0:07:16 > 0:07:18At £80,000. 82, I've got.
0:07:18 > 0:07:2284. 84. 86? No.
0:07:22 > 0:07:26£84,000, I have. 86, I'm looking for.
0:07:26 > 0:07:29Are we all done at £84,000? I will sell for the first time.
0:07:29 > 0:07:32£84,000 unless I get another bid for the second?
0:07:32 > 0:07:36Third and final time... 86, thank you. 86.
0:07:36 > 0:07:4088? At 86,000 I've got, for the first time.
0:07:40 > 0:07:4486,000 for the second time. All done at £86,000?
0:07:44 > 0:07:46Third and final time. All done at 86?
0:07:46 > 0:07:50£86,000, sold. And the number, please?
0:07:50 > 0:07:54And those successful bidders getting the lot for £86,000
0:07:54 > 0:07:58were south London based couple Michelle and James.
0:07:58 > 0:08:01Michelle is a lawyer while James works as a furniture restorer.
0:08:01 > 0:08:04They also enjoy dabbling in a bit of property developing
0:08:04 > 0:08:07and own several rental investments.
0:08:07 > 0:08:10I met them back at their latest purchase to find out their plans.
0:08:10 > 0:08:14- Guys, it's lovely meeting you today. Congratulations.- Thank you.
0:08:14 > 0:08:16Whose idea was it to bid at auction?
0:08:16 > 0:08:19Well, I think it was a joint effort, in fact.
0:08:19 > 0:08:21We both agreed that's what we wanted to do
0:08:21 > 0:08:23because we've kind of like...
0:08:23 > 0:08:27We're used to buying properties so it's something we wanted to do for ourselves.
0:08:27 > 0:08:30And what was it about this property in particular that made you
0:08:30 > 0:08:33really want to sort of go for it and bid for it at auction?
0:08:33 > 0:08:37The location. I mean, by the sea here. Top of the cliff.
0:08:37 > 0:08:39It's just absolutely spectacular.
0:08:39 > 0:08:42As a boy I remember I used to come along the cliff here
0:08:42 > 0:08:45and I remember right next door there used to be a model village
0:08:45 > 0:08:47so it's a bit of history as well.
0:08:47 > 0:08:51- Evoked all those childhood memories! - Kind of.
0:08:51 > 0:08:53So, why have you bought this property?
0:08:53 > 0:08:57For a holiday home for ourselves, this time.
0:08:57 > 0:09:01It's nice to do it for ourselves instead of, you know, buy to let for someone else.
0:09:01 > 0:09:03We've got some family here as well.
0:09:03 > 0:09:05So, the whole point of you buying this property
0:09:05 > 0:09:09is for yourselves to have fun, a holiday home to just really enjoy.
0:09:09 > 0:09:11Absolutely.
0:09:11 > 0:09:14# Enjoy yourself
0:09:16 > 0:09:19# It's later than you think
0:09:19 > 0:09:22# Enjoy yourself
0:09:22 > 0:09:25# While you're still in the pink... #
0:09:25 > 0:09:27They should enjoy themselves,
0:09:27 > 0:09:31especially when you remember the lease is only 70 years.
0:09:31 > 0:09:35As James and Michelle don't intend to sell the flat on,
0:09:35 > 0:09:40this isn't an issue, though they do plan to extend it in the future.
0:09:40 > 0:09:42But what are their plans right now?
0:09:44 > 0:09:48As you walk through the front door, you've got that rather strange little room to the left.
0:09:48 > 0:09:50What are you going to do with that?
0:09:50 > 0:09:54The vault, as we call it, is going to become the family bathroom
0:09:54 > 0:09:57and the small room next to that, which has a supporting wall,
0:09:57 > 0:10:00that's going to become a wet room.
0:10:00 > 0:10:04And then tell me, as we come further into the flat, how it's going to be laid out?
0:10:04 > 0:10:07We were hoping to move the wall in the hallway
0:10:07 > 0:10:09so we make a bigger bedroom and a narrower hallway
0:10:09 > 0:10:11because there's a bit of wasted space there.
0:10:11 > 0:10:14And then knock through the bathroom and bedroom into one,
0:10:14 > 0:10:16to make one really big bedroom.
0:10:16 > 0:10:21So we'll turn it, effectively, from a two-bedroom into a one-bedroom flat.
0:10:21 > 0:10:23By losing the second bedroom, James and Michelle know they might be
0:10:23 > 0:10:27devaluing the flat but this project isn't about making money,
0:10:27 > 0:10:31it's about creating a dream holiday home for themselves.
0:10:31 > 0:10:35Buying into a listed building does mean that certain
0:10:35 > 0:10:38hoops may have to be jumped through before those changes can start.
0:10:38 > 0:10:42We'll have to get some plans drawn up,
0:10:42 > 0:10:44take them to the listed building officer
0:10:44 > 0:10:49and discuss what we're going to do on the inside and we're hoping that
0:10:49 > 0:10:51we'll get help from them, rather than hindrance from them.
0:10:51 > 0:10:54Because we really want to bring the property back to life,
0:10:54 > 0:10:57rather than damage anything that needs to remain.
0:10:57 > 0:11:01Can you foresee any problems with the conservation officer
0:11:01 > 0:11:04as far as, you know, changing and developing this property?
0:11:04 > 0:11:07Just the one, and that could possibly be in the hallway.
0:11:07 > 0:11:09One of the walls that we'd really like to move.
0:11:09 > 0:11:11We'll have to wait and see.
0:11:11 > 0:11:13I think if we don't get the permission for the wall,
0:11:13 > 0:11:16we'll just have to be imaginative in how we use that space.
0:11:16 > 0:11:19It's a great space and we'll have to think of something to do with it.
0:11:19 > 0:11:23One thing that doesn't need leaving to the imagination is the smell.
0:11:23 > 0:11:27To what extent is the property damp? Do you know?
0:11:27 > 0:11:28Have you had any reports back?
0:11:28 > 0:11:32Yes, we've had it investigated as far as you can with the walls
0:11:32 > 0:11:35that are already up and the partitions and that sort of thing.
0:11:35 > 0:11:39So they can't give you a complete picture but they can give you a general idea.
0:11:39 > 0:11:44Clearly, the back of the sub basement, as I like to call it, that is the worst part.
0:11:44 > 0:11:48- That really does smell. When you walk in, it hits you.- Yeah.
0:11:48 > 0:11:51James and Michelle have dealt with damp problems before
0:11:51 > 0:11:54so they know the ropes and with an ambitious budget of £20,000
0:11:54 > 0:11:57for the work, the couple are hoping to get
0:11:57 > 0:12:02listed building consent and the work completed in just seven months.
0:12:02 > 0:12:05Now, I suppose for you, James, your job as a furniture restorer
0:12:05 > 0:12:07is all about bringing things back to life.
0:12:07 > 0:12:11- Are you coming to apply that to this property?- Definitely. Certainly.
0:12:11 > 0:12:13I'm going to be very hands on in here as well,
0:12:13 > 0:12:18managing the property along with Michelle.
0:12:18 > 0:12:22So I'm going to be here working and I will be taking time
0:12:22 > 0:12:25out of the restoration business to spend it here.
0:12:25 > 0:12:29- And you're going to be very busy everyday working, aren't you?- Yeah.
0:12:29 > 0:12:31But I get to do all the paperwork and pay all the bills
0:12:31 > 0:12:33so, you know, it's a good partnership.
0:12:33 > 0:12:36And what's the look and feel of the property going to be like?
0:12:36 > 0:12:39Very modern. We're going to go for the modern look here.
0:12:39 > 0:12:44It will be stripped floors, carpets in the bedrooms, that kind of thing.
0:12:44 > 0:12:47Modern kitchen. So, yeah, it will look very good.
0:12:47 > 0:12:50- Everything beautifully upholstered? - I hope so.
0:12:50 > 0:12:53Guys, I'm so excited and I can't wait to find out what this is like,
0:12:53 > 0:12:56especially in the summer months. It's going to be beautiful.
0:12:56 > 0:13:00- Congratulations. Well done.- Thank you.- Lovely to meet you. Thanks.
0:13:00 > 0:13:03James and Michelle have big plans to make this flat
0:13:03 > 0:13:05their perfect holiday retreat
0:13:05 > 0:13:09but will that listed building consent complicate matters for them?
0:13:09 > 0:13:13You can join me later in the programme to find out
0:13:13 > 0:13:16whether the sea is still blue, the sun is shining brightly
0:13:16 > 0:13:20and if their summer holiday dreams really do come true.
0:13:24 > 0:13:28Located between Belfast and Lisburn, Dunmurry became known
0:13:28 > 0:13:30as one of the linen villages in Ulster.
0:13:30 > 0:13:34Linen has declined in the face of man-made fibres, which are cheaper.
0:13:34 > 0:13:38But there is still an industry focusing on the high-end market.
0:13:38 > 0:13:40Remnants of the long history of the fabric
0:13:40 > 0:13:44can be seen all around this area, dating back to the heyday
0:13:44 > 0:13:46when the flax that it was made from was grown here.
0:13:46 > 0:13:48# Ball of confusion
0:13:48 > 0:13:50# When nothing is new and
0:13:50 > 0:13:53# There's nothing doin'
0:13:53 > 0:13:56# Step back in time... #
0:13:56 > 0:13:59Well, actually back to the present day
0:13:59 > 0:14:01and the property that was up for auction.
0:14:01 > 0:14:03And it's very modern.
0:14:03 > 0:14:06A two-bedroom flat on this lovely estate,
0:14:06 > 0:14:10really close to the centre of Belfast and yet you wouldn't know.
0:14:10 > 0:14:13It's really quiet and surrounded by hills.
0:14:15 > 0:14:18So, here it is. Pretty smart-looking.
0:14:18 > 0:14:21Guide price of 62,000. Let's have a look.
0:14:25 > 0:14:30So, a pretty tidy little entrance hall, which is always a good sign.
0:14:30 > 0:14:33Into the flat and...wow!
0:14:33 > 0:14:35Looking pretty hopeful.
0:14:35 > 0:14:38A nice, big sort of entrance corridor.
0:14:38 > 0:14:43It's almost like the central part of the flat, like an artery,
0:14:43 > 0:14:47off which the different rooms go. That's good.
0:14:47 > 0:14:50Bathroom. Looks to be in pretty nice condition.
0:14:50 > 0:14:53As does bedroom number one, which is double glazed.
0:14:53 > 0:14:57Bedroom number two is a bit on the tight side. Hey-ho.
0:14:57 > 0:15:01Looks like it's got central heating from the fact there are radiators.
0:15:01 > 0:15:04Ha! Yeah, you know, I know my stuff!
0:15:04 > 0:15:06Then through into this room here,
0:15:06 > 0:15:14which is a sort of open-plan kitchen/living area/dining room.
0:15:15 > 0:15:20It's in nice condition and the units are very, very trendy looking.
0:15:20 > 0:15:24And I like the way it's designed with lots of light
0:15:24 > 0:15:26coming in from the windows.
0:15:29 > 0:15:31It's great.
0:15:31 > 0:15:35# No change... #
0:15:39 > 0:15:42So, first impressions are good. Very good, in fact.
0:15:42 > 0:15:47There seems to be absolutely nothing that needs doing to this apartment.
0:15:47 > 0:15:50So, we've established there's probably not that much to do
0:15:50 > 0:15:52to sort this place out.
0:15:52 > 0:15:56We have to then switch to a different way of thinking.
0:15:56 > 0:15:59Guide price at auction was 62,000.
0:15:59 > 0:16:04Do your research and this estate has got lots of similar properties
0:16:04 > 0:16:07and five minutes on the internet, you discover that similar properties,
0:16:07 > 0:16:12similar flats with two bedrooms are going for round about £75,000
0:16:12 > 0:16:15in good condition,
0:16:15 > 0:16:17like this one.
0:16:19 > 0:16:22£62,000 at auction, £75,000 on the open market.
0:16:22 > 0:16:25No guarantees you're going to get 75. But you know what?
0:16:25 > 0:16:30As gambles go, it might be worth having a bit of a punt.
0:16:30 > 0:16:32# Take a chance on me
0:16:32 > 0:16:35# That's all I ask of you, honey
0:16:35 > 0:16:38# Take a chance on me... #
0:16:38 > 0:16:40That's what I love about this show -
0:16:40 > 0:16:43you never know what you're going to get.
0:16:43 > 0:16:48Some days it's run down and derelict and other days, well, it's perfect.
0:16:49 > 0:16:51Let's check outside to see how that's looking.
0:16:51 > 0:16:53One thing's for sure,
0:16:53 > 0:16:57the exterior of the building is in as good a condition
0:16:57 > 0:17:00as the interior, as is the grounds.
0:17:00 > 0:17:03That's good news, isn't it?
0:17:03 > 0:17:06Well, yes. But on a block of flats like this,
0:17:06 > 0:17:09basically, somebody has got to pay for this.
0:17:09 > 0:17:12Individual owners club together often as a management company
0:17:12 > 0:17:15and it's really important to know what the management company
0:17:15 > 0:17:18charge to keep it looking this good.
0:17:18 > 0:17:22That should be in the legal pack. Make sure you read it before you buy.
0:17:23 > 0:17:26Even though everything looks perfect,
0:17:26 > 0:17:28it's always important to do your research
0:17:28 > 0:17:32in case of any hidden problems or charges before you head to the auction house.
0:17:33 > 0:17:37With seemingly very little to physically do here,
0:17:37 > 0:17:41that guide price of £62,000 is looking rather good.
0:17:43 > 0:17:46We asked along a local property expert for his opinion.
0:17:49 > 0:17:52Well, this apartment is ready for the market.
0:17:52 > 0:17:55There's nothing needing done.
0:17:55 > 0:17:58For sale, provided this property is priced correctly
0:17:58 > 0:18:02and priced sensibly, there will be great demand.
0:18:02 > 0:18:04The rental market,
0:18:04 > 0:18:08this property will rent within one week, two weeks.
0:18:08 > 0:18:11The demand is that high
0:18:11 > 0:18:14for something in this location and in this condition.
0:18:14 > 0:18:16Great news!
0:18:16 > 0:18:18A buoyant rental market is always positive
0:18:18 > 0:18:23and a possible rental of around £500 per calendar month here is healthy.
0:18:24 > 0:18:29What about a valuation? How will it compare to the guide price of 62,000?
0:18:32 > 0:18:37This apartment is worth at least £75,000, possibly £80,000.
0:18:39 > 0:18:43Hm, well, if you can find something negative to say about this property,
0:18:43 > 0:18:47as far as I'm concerned it's only that it doesn't
0:18:47 > 0:18:51really give you a lot of scope to add value.
0:18:51 > 0:18:53It's pretty much great as it is.
0:18:53 > 0:18:57So, for anything like that guide price, probably a good buy.
0:18:57 > 0:18:59Let's see who agreed when it went under the hammer.
0:19:04 > 0:19:08Guide price, 62,000. Somebody like to give us a bid at 62,000?
0:19:08 > 0:19:10This is for 62,000. We've a...
0:19:10 > 0:19:1362,000, we have. 62,000.
0:19:13 > 0:19:15Any advance on 62,000? We have.
0:19:15 > 0:19:19All sure? Last call at 62,000.
0:19:19 > 0:19:23Going once. Selling at 62,000. Going twice. Sold at 62,000.
0:19:23 > 0:19:26Wow! Blink and you'll miss it.
0:19:26 > 0:19:30Sold on the first bid and bang on the guide price of £62,000
0:19:30 > 0:19:33to a rather startled looking Kieran.
0:19:33 > 0:19:36# I didn't mean it I didn't mean it
0:19:36 > 0:19:40# I didn't mean to say what I said when I said I didn't mean it... #
0:19:40 > 0:19:43local man Kieran is a chartered accountant by trade
0:19:43 > 0:19:46but has a fair sized portfolio of properties as well,
0:19:46 > 0:19:50although his latest acquisition came as something of a surprise.
0:19:50 > 0:19:53- Kieran, great to meet you. - Hello, Martin.- Congratulations.
0:19:53 > 0:19:57- Thank you very much indeed.- Tell me why you wanted to buy this flat.
0:19:57 > 0:20:01Well, I didn't really. I went to the auction to buy something else,
0:20:01 > 0:20:05the previous lot, and unfortunately didn't get it.
0:20:05 > 0:20:08But this had been mentioned to me by an old friend.
0:20:08 > 0:20:14It was the next lot and I opened the bidding and nobody else bid.
0:20:14 > 0:20:1610 seconds later, it was mine.
0:20:16 > 0:20:19- You must have been a little bit shocked.- Very shocked, yes.
0:20:19 > 0:20:21Very shocked.
0:20:21 > 0:20:23Did you have money burning a hole in your pocket?
0:20:23 > 0:20:25- You had to buy something that day? - No.
0:20:25 > 0:20:28That's not normally the way I do things.
0:20:28 > 0:20:30I'm an accountant by background
0:20:30 > 0:20:32but I do things very methodically normally
0:20:32 > 0:20:35and on the lot I went to buy I had my calculations done,
0:20:35 > 0:20:39I knew what it was going to cost and the cost of renovations,
0:20:39 > 0:20:41what the sale price would be.
0:20:41 > 0:20:45And when I was outbid I stopped bidding at the price I had expected.
0:20:45 > 0:20:51But I then had a moment of weakness. 30 seconds later I had bought this.
0:20:51 > 0:20:54I've been doing this 15 or 20 years and I'm normally the other way.
0:20:54 > 0:20:56OTT the other way.
0:20:56 > 0:20:59View the property three or four times, get my builder in.
0:20:59 > 0:21:01I do it the other way.
0:21:01 > 0:21:04So, a 90 minute journey back home
0:21:04 > 0:21:07and I wasn't exactly very happy with myself.
0:21:07 > 0:21:11So, at that moment when you put your hand in the air
0:21:11 > 0:21:14and probably didn't expect to get it on the first bid,
0:21:14 > 0:21:16what went through your mind?
0:21:16 > 0:21:20Not a lot. It's a lesson to everybody, really.
0:21:20 > 0:21:23Auctions are not... You should be prepared.
0:21:23 > 0:21:25And I was really on the rebound.
0:21:25 > 0:21:31I was very keen on the previous lot and upset I hadn't got it.
0:21:31 > 0:21:35The auctioneer's eyes seemed to fall upon me on the next lot
0:21:35 > 0:21:38and he said, "Can anyone open the bidding?"
0:21:38 > 0:21:41I put my hand up and no-one else bid.
0:21:41 > 0:21:43So, if somebody else had bid,
0:21:43 > 0:21:47I think I would have calmed down, but at that stage, it was done.
0:21:47 > 0:21:50Going, going, gone.
0:21:50 > 0:21:52Well, I've heard about people going into relationships
0:21:52 > 0:21:57that aren't ideal on the rebound but not buying a house on the rebound.
0:21:57 > 0:22:00On the rebound through frustration and being stubborn.
0:22:00 > 0:22:03So, as you were driving here first time
0:22:03 > 0:22:06to see the house which you'd not visited, not seen,
0:22:06 > 0:22:09not had a clue about, what was going through your mind and what happened?
0:22:09 > 0:22:12Talk me through that day or that morning.
0:22:12 > 0:22:15My sat nav couldn't find the house
0:22:15 > 0:22:19so I drove about and passed many houses.
0:22:19 > 0:22:24I eventually found it and came in expecting the worst.
0:22:24 > 0:22:29And prepared to put it down to experience and learn the hard way.
0:22:29 > 0:22:32I've two sons, 20 and 22, who I'm grooming.
0:22:34 > 0:22:37I was telling them, "This is not how to do things."
0:22:37 > 0:22:40But I have come into the house and I've been fortunate.
0:22:40 > 0:22:42It seems to be in very good condition.
0:22:42 > 0:22:46So, having walked in... Yes, as you said, I think you're really lucky.
0:22:46 > 0:22:49Tell me what you think of it and what you're going to do to it.
0:22:49 > 0:22:53Not a lot. Maybe nothing. Maybe very, very little.
0:22:54 > 0:22:58It seems just to be touched up here and there
0:22:58 > 0:23:00but it needs very, very little to be honest.
0:23:00 > 0:23:02So, I'm going to give it back.
0:23:02 > 0:23:06The guy who told me about the property, erm...
0:23:06 > 0:23:08This may not necessarily be his area,
0:23:08 > 0:23:10but I'm giving him the keys and he can sell it
0:23:10 > 0:23:13since he's the guy that got me in this mess in the first place,
0:23:13 > 0:23:16- he's the guy who can get me out. - So you're going to sell it?
0:23:16 > 0:23:18I will sell it.
0:23:18 > 0:23:20- Right. Not rent it?- No.
0:23:20 > 0:23:23No, I have a portfolio, but it doesn't really...
0:23:25 > 0:23:27It's not consistent with the type of property I have.
0:23:27 > 0:23:29It's not in an area that I know.
0:23:31 > 0:23:35Apartments I don't really like, so...
0:23:35 > 0:23:38I'm just going to sell ASAP.
0:23:38 > 0:23:40MARTIN LAUGHS
0:23:40 > 0:23:44I'm laughing, but this may well be a sound investment with a quick
0:23:44 > 0:23:49profit for Kieran, since this place is so well maintained.
0:23:49 > 0:23:52Is there a budget? Are you going to do anything?
0:23:53 > 0:23:58I said to my son maybe £500, but I think I'll struggle to spend £500.
0:23:58 > 0:24:00I'll just touch up...
0:24:01 > 0:24:04I think maybe the bathroom, change the bathroom seat.
0:24:04 > 0:24:05MARTIN LAUGHS
0:24:05 > 0:24:08Aye, I know. I can't find much more to do, really.
0:24:08 > 0:24:10So 15 quid, then.
0:24:10 > 0:24:1215 quid. That's the budget.
0:24:13 > 0:24:16- And what about timescale? - Timescale...
0:24:16 > 0:24:19The guy who got me into the mess better get me out of it pretty soon.
0:24:19 > 0:24:22But for the work, about 20 minutes, presumably?
0:24:22 > 0:24:2320 minutes for the work.
0:24:23 > 0:24:26Well, congratulations, sort of.
0:24:26 > 0:24:29But well done, and I look forward to seeing how it pans out.
0:24:29 > 0:24:31Thank you, Martin. Thank you.
0:24:32 > 0:24:36Well, Kieran breaking all his own rules, never mind mine,
0:24:36 > 0:24:39buying a house without seeing it, without reading the legal pack.
0:24:39 > 0:24:42He didn't even know where it was!
0:24:42 > 0:24:47Well, hopefully he can sell it on, but what a risky venture.
0:24:47 > 0:24:52Don't do it! You can find out how it all turns out later in the show.
0:24:54 > 0:24:57Still to come, we've got some big spenders...
0:24:57 > 0:25:01If not £500,000...
0:25:01 > 0:25:03Sold, 500. Good buy, well done.
0:25:05 > 0:25:09And some, well, not quite so big...
0:25:09 > 0:25:12The toilet seat was listed at £20, I insisted he was only getting 15.
0:25:18 > 0:25:22We return to the harbour town of Ramsgate in Kent to see our
0:25:22 > 0:25:27two-bedroom garden flat, situated in this beautiful historic building.
0:25:27 > 0:25:31It was just a shame we had to climb downstairs to see it.
0:25:33 > 0:25:36Well, you certainly feel like you're underground.
0:25:36 > 0:25:39A smell of damp hits you as soon as you walk in.
0:25:39 > 0:25:43And a rather nice hallway, I do like this,
0:25:43 > 0:25:48but you definitely feel that you're in somewhere old and cold.
0:25:48 > 0:25:51# Play it cool, baby
0:25:51 > 0:25:53# Play it cool
0:25:53 > 0:25:57# Come on, play it cool. #
0:25:57 > 0:26:00Old I can live with, but cold?
0:26:00 > 0:26:01No!
0:26:01 > 0:26:04And being a Grade II listed building, permissions will be
0:26:04 > 0:26:08needed from the conservation authority to make any changes.
0:26:08 > 0:26:11So, with an upper guide of only £65,000,
0:26:11 > 0:26:15this property was not without its perks. Oh, yeah,
0:26:15 > 0:26:16and did I mention the view?
0:26:16 > 0:26:19Look at that!
0:26:19 > 0:26:24Absolutely gorgeous, and even on a blustery, windy day like today.
0:26:24 > 0:26:26I'd never tire of looking at that.
0:26:28 > 0:26:31Well, that breathtaking view was one of the features that
0:26:31 > 0:26:36convinced James and Michelle to pay £86,000 at auction for the property.
0:26:36 > 0:26:40Now living in London, James spent time in the area as a boy and
0:26:40 > 0:26:43the couple were looking to turn the flat into
0:26:43 > 0:26:45their own seaside holiday home.
0:26:46 > 0:26:50As a boy, I remember I used to come along the cliff here.
0:26:50 > 0:26:53- Oh, it evoked all those old childhood memories!- Kind of. Yeah.
0:26:53 > 0:26:56So the whole point of you buying this property
0:26:56 > 0:27:01is for yourselves, to have fun, a holiday home, to just really enjoy.
0:27:01 > 0:27:03- Absolutely.- Yep.
0:27:03 > 0:27:06Nine months later, we return to Ramsgate
0:27:06 > 0:27:08to see how James and Michelle have got on.
0:27:23 > 0:27:27Wow! I think this is amazing!
0:27:27 > 0:27:29I can barely recognise the place.
0:27:29 > 0:27:31Oh, a huge change. We've basically
0:27:31 > 0:27:34ripped everything out and started from scratch.
0:27:34 > 0:27:40We've re-jigged the layout, opened up the kitchen-living room,
0:27:40 > 0:27:42dug out in the vault area
0:27:42 > 0:27:47and put in a really quite spectacular bathroom and wet room.
0:27:47 > 0:27:49Apparently this isn't even the spectacular bit.
0:27:49 > 0:27:52They'd best show us this bathroom, then.
0:27:52 > 0:27:57We started off by digging out the floor in here
0:27:57 > 0:28:01and we removed six tonnes of chalk.
0:28:02 > 0:28:06The walls were lined with a special membrane.
0:28:06 > 0:28:10Under-floor heating, tiling right the way through.
0:28:10 > 0:28:13Fantastic lighting, we've got speakers in the ceilings in here,
0:28:13 > 0:28:17and we're absolutely delighted with the finish. Fantastic.
0:28:17 > 0:28:21James is absolutely right, the finish is fantastic.
0:28:21 > 0:28:23With an equally gorgeous shower room next door,
0:28:23 > 0:28:26this really is a little touch of luxury.
0:28:26 > 0:28:29But let's not forget this was a Grade II listed building
0:28:29 > 0:28:32and trying to get approval for structural changes, well,
0:28:32 > 0:28:34it can be problematic. Was it?
0:28:36 > 0:28:39It wasn't really an issue at all, other than timing.
0:28:39 > 0:28:42They took us right to the eighth week to give us a decision,
0:28:42 > 0:28:46but they approved everything that we wanted to do, so no problems at all.
0:28:46 > 0:28:50I think the key was that we employed an architect, who produced
0:28:50 > 0:28:52some really good plans.
0:28:52 > 0:28:54Those plans have used the space brilliantly.
0:28:54 > 0:28:56Some things haven't been moved.
0:28:56 > 0:28:59The bedroom is still where it was and the kitchen wall was removed,
0:28:59 > 0:29:02creating a large lounge.
0:29:02 > 0:29:05And when they saw how big it was, they decided not to move
0:29:05 > 0:29:08the hall wall, but instead, put the kitchen in there.
0:29:08 > 0:29:11Michelle said they would think creatively about this space
0:29:11 > 0:29:14and I think they really have.
0:29:14 > 0:29:16Yeah, so this was the area where there was the biggest
0:29:16 > 0:29:18change in the plans.
0:29:18 > 0:29:22When we ripped everything out we saw how big this space was
0:29:22 > 0:29:25and when we looked at it, we thought, instead of putting the kitchen in the
0:29:25 > 0:29:29living room, this was a great space for a good-sized galley kitchen.
0:29:29 > 0:29:30I think it was worth the expense,
0:29:30 > 0:29:33because we've ended up with a really fantastic kitchen with loads of
0:29:33 > 0:29:36storage space and under-floor heating. We're really pleased with it.
0:29:39 > 0:29:43Ah, yes, expense! Those beautiful rooms don't come cheap.
0:29:43 > 0:29:47James and Michelle's original budget was 20,000.
0:29:47 > 0:29:49How did they get on?
0:29:49 > 0:29:51Including fees, about 34,000.
0:29:51 > 0:29:55To put the kitchen in the hallway we had to move the power supply,
0:29:55 > 0:29:58not just to our flat but to the flats above,
0:29:58 > 0:30:01so that was pretty costly, that was unexpected.
0:30:01 > 0:30:05The damp problem actually wasn't as bad as we anticipated.
0:30:05 > 0:30:09There was a leak from upstairs, which was historical,
0:30:09 > 0:30:12and that created a lot of the bad smell here.
0:30:12 > 0:30:15Because we ripped everything out rather than making do,
0:30:15 > 0:30:18amending, we've spent the money up front
0:30:18 > 0:30:20and probably saved ourselves money in the longer term.
0:30:20 > 0:30:25Because it was for us, we went the extra mile.
0:30:25 > 0:30:30They've overspent by a margin of 70%, but who cares? Wow!
0:30:30 > 0:30:31It's fabulous.
0:30:31 > 0:30:36They've turned a dark, dingy, damp dungeon into an amazing space.
0:30:36 > 0:30:39Wow, what a holiday home. But at what cost?
0:30:39 > 0:30:42James and Michelle have spent 86,000 buying it
0:30:42 > 0:30:48and that £34,000 on the renovations, bringing the total to 120,000.
0:30:48 > 0:30:49As James says, though,
0:30:49 > 0:30:54they've done this development for themselves, not to make a profit.
0:30:54 > 0:30:57Still, when has that ever stopped us at Homes Under The Hammer
0:30:57 > 0:30:59getting a valuation? Oh, never!
0:30:59 > 0:31:01So we asked two local
0:31:01 > 0:31:03property experts along to give us their opinion.
0:31:06 > 0:31:09My thought on this property is that it's been refurbished to
0:31:09 > 0:31:13a very high standard, which is really fitting for the area.
0:31:13 > 0:31:16I think originally it was two bedrooms.
0:31:16 > 0:31:20They have reduced the size down to one bedroom to give that
0:31:20 > 0:31:23really fabulous bathroom and I think it was the right thing
0:31:23 > 0:31:27to do in this instance, in this lovely prime location.
0:31:27 > 0:31:29First impression as you come through the front door,
0:31:29 > 0:31:32you immediately see the kitchen. Fantastic kitchen.
0:31:32 > 0:31:33And then going through,
0:31:33 > 0:31:36it doesn't disappoint as you go through to the lounge.
0:31:36 > 0:31:40Fantastic sea views from there, so first impression is fabulous property.
0:31:40 > 0:31:43I think this type of property will really appeal to people.
0:31:43 > 0:31:46It's a blend of the modern, with things like LED lighting
0:31:46 > 0:31:48and a lovely modern kitchen and bathroom, combined with the
0:31:48 > 0:31:54traditional features, such as nice wood-burning stoves and radiators.
0:31:54 > 0:31:57I would expect the rental on this property to be
0:31:57 > 0:32:00in the region of about £625 per calendar month.
0:32:00 > 0:32:04I think this property would achieve
0:32:04 > 0:32:07around about £625 per calendar month.
0:32:09 > 0:32:11Were they to sell, could James and Michelle
0:32:11 > 0:32:16make any profit after their £120,000 total spend?
0:32:16 > 0:32:20Remember, the first time we came here, the highest estimate
0:32:20 > 0:32:22was 145,000.
0:32:22 > 0:32:26The value I would put on this property would be in the region of
0:32:26 > 0:32:30about £145,000 to about £150,000.
0:32:30 > 0:32:33I think we could almost go up to around about
0:32:33 > 0:32:36£165,000 for this property.
0:32:36 > 0:32:40- Wow, that is quite impressive. - That's amazing, that's a lot more than we thought.
0:32:40 > 0:32:42A real surprise, yeah.
0:32:42 > 0:32:45Well, that would be a profit of anything between £25,000
0:32:45 > 0:32:50and £45,000, minus the usual taxes and expenses.
0:32:50 > 0:32:51But do you know what?
0:32:51 > 0:32:53I don't think they care.
0:32:53 > 0:32:55For James and Michelle,
0:32:55 > 0:32:59making money was not what this property was all about.
0:32:59 > 0:33:01We love coming down now at weekends.
0:33:01 > 0:33:04It's something we just want to sit back and enjoy now.
0:33:04 > 0:33:07Yeah, we've really enjoyed the whole process.
0:33:07 > 0:33:10Restoring an old building and bringing it back to life,
0:33:10 > 0:33:13we've really enjoyed it. We've got something really special now.
0:33:13 > 0:33:14- Definitely.- Happy with that.
0:33:18 > 0:33:21Today, I'm in Earl's Court in the Royal Borough of Kensington
0:33:21 > 0:33:25and Chelsea, and if you want to know what kind of an area it is,
0:33:25 > 0:33:30just listen to the list of famous local residents, past and present.
0:33:30 > 0:33:35# When will I, will I be famous? #
0:33:35 > 0:33:39Diana, Princess of Wales, Freddie Mercury, Stewart Granger,
0:33:39 > 0:33:42Syd Barrett, Benjamin Britten, Gary Barlow...
0:33:42 > 0:33:46This star-studded area is facing changes.
0:33:46 > 0:33:50Earl's Court Arena is being pulled out to make way for flats and there's
0:33:50 > 0:33:55a 20-year scheme to regenerate the area, so prices are set to rise.
0:33:55 > 0:33:59Well, just two minutes' walk from Earl's Court Exhibition Centre
0:33:59 > 0:34:01is the property I'm here to see.
0:34:01 > 0:34:05Right on a very busy junction, but it sounds appealing,
0:34:05 > 0:34:09described in the catalogue as a good-sized one-bedroom flat.
0:34:09 > 0:34:11Now, in London...
0:34:11 > 0:34:15"good size" means all sorts of things.
0:34:15 > 0:34:20The guide price, though, was £450,000 plus, so let's take a look.
0:34:24 > 0:34:25# A foggy day...
0:34:27 > 0:34:29# In London town... #
0:34:29 > 0:34:33A classy interior and, given it's a six-storey building,
0:34:33 > 0:34:35I'm pretty glad there's a lift.
0:34:35 > 0:34:37Already, I like what I'm seeing.
0:34:39 > 0:34:42So, expectations are high.
0:34:43 > 0:34:45Hopefully they won't be dashed.
0:34:45 > 0:34:49Nice little entrance area there, you don't often see that in a flat.
0:34:49 > 0:34:53Very useful for storing things - coats and all that kind of stuff.
0:34:53 > 0:34:56Some original doors, they'd be quite nice if they were stripped.
0:34:56 > 0:35:00And then straight into a really good-size lounge.
0:35:00 > 0:35:02We like that a lot.
0:35:02 > 0:35:05Loads of light coming in from the windows there.
0:35:05 > 0:35:08Yeah, you sometimes go into a flat and it feels a bit poky,
0:35:08 > 0:35:10that's definitely not the case here.
0:35:10 > 0:35:13Kitchen, erm, well, it could do with a bit of a refurb -
0:35:13 > 0:35:15something you could definitely work on.
0:35:15 > 0:35:19Little corridor here and then into the one bedroom.
0:35:19 > 0:35:22It has only got one bedroom, but it's a really good-sized one,
0:35:22 > 0:35:27and...yes, you could think about making this a two-bedroom flat -
0:35:27 > 0:35:31it's big, it's spacious, but overall, the impression...
0:35:31 > 0:35:33is really good.
0:35:33 > 0:35:39# A room with a view...
0:35:39 > 0:35:42# A room with a view. #
0:35:42 > 0:35:48It just feels right, and it's oozing with charm from a bygone era.
0:35:48 > 0:35:51A touch of Earl's Court glamour just under the surface
0:35:51 > 0:35:55and some DIY that's more infamous than famous.
0:35:55 > 0:36:02One of these days, I really must compile my top ten DIY bodge jobs,
0:36:02 > 0:36:07and when I do, this little sweetie will definitely be on it.
0:36:07 > 0:36:10Expanding foam, we love it.
0:36:11 > 0:36:12# Hey!
0:36:12 > 0:36:14# DIY
0:36:14 > 0:36:15# DIY. #
0:36:15 > 0:36:17There are a few botched jobs to unpick,
0:36:17 > 0:36:20but one thing you won't have to sort out is the lease.
0:36:20 > 0:36:23There's 132 years left on it.
0:36:23 > 0:36:24Well, the bathroom isn't huge,
0:36:24 > 0:36:27but I think it's pretty much in proportion with
0:36:27 > 0:36:30the rest of the flat and you'd be well served to spend a little
0:36:30 > 0:36:33bit of money putting a really nice bathroom suite in here.
0:36:33 > 0:36:36I think the flat deserves it. Another thing you might want to consider...
0:36:36 > 0:36:40In fact, not might, DEFINITELY want to consider is the windows.
0:36:40 > 0:36:43They are metal, they're both very noisy,
0:36:43 > 0:36:47they're also not very insulating, so audio and also heat.
0:36:47 > 0:36:50So replace those. But of course, before you do that, you'll
0:36:50 > 0:36:52have to talk to the management company of the building to
0:36:52 > 0:36:55check what you can put in, to make sure it fits in
0:36:55 > 0:36:58with the other windows that are situated in the property.
0:36:58 > 0:37:01Just one of the jobs in a programme of refurbishment,
0:37:01 > 0:37:04but the flat is definitely
0:37:04 > 0:37:06worth the effort.
0:37:06 > 0:37:08# You're my mirror in the bathroom
0:37:08 > 0:37:10# Mirror, mirror, mirror, mirror. #
0:37:10 > 0:37:13It's going to take a lot of work to get this flat to mirror
0:37:13 > 0:37:15the excellent welcome of that communal area.
0:37:15 > 0:37:18But it really does look like it's just cosmetic.
0:37:18 > 0:37:21Time to ask a local agent what he thinks of the flat,
0:37:21 > 0:37:24guided at £450,000.
0:37:24 > 0:37:26But first, what about the area?
0:37:28 > 0:37:31Now people are thinking of coming to Earl's Court a lot more.
0:37:31 > 0:37:33They see it on par with areas that
0:37:33 > 0:37:36are a little bit more central as well,
0:37:36 > 0:37:40and that's actually an image that I think the council is trying
0:37:40 > 0:37:44to change. They're trying to make Earl's Court more and more upmarket.
0:37:44 > 0:37:49I think, once renovated, the property could achieve £600,000.
0:37:49 > 0:37:52If it was done to a very good standard,
0:37:52 > 0:37:56I reckon it could rent out for about £1,750 per calendar month.
0:37:59 > 0:38:03Well, you have to pay top dollar to buy into the London property market
0:38:03 > 0:38:05these days, and in other parts of the country,
0:38:05 > 0:38:09nearly half a million quid for a one-bedroom flat...
0:38:09 > 0:38:11might sound like quite a lot.
0:38:11 > 0:38:13But here in Earl's Court, what you're getting,
0:38:13 > 0:38:16I think...strangely enough, is good value for money.
0:38:16 > 0:38:20Let's see who agreed when it went under the hammer.
0:38:20 > 0:38:22Earl's Court, it's a red-hot area.
0:38:22 > 0:38:24Loads going to go on there over the next couple of years,
0:38:24 > 0:38:27so we'll start at 450.
0:38:27 > 0:38:30450 on my left. 450,
0:38:30 > 0:38:33455...
0:38:34 > 0:38:36455.
0:38:36 > 0:38:38460. 465.
0:38:40 > 0:38:42470. 470, yes?
0:38:42 > 0:38:45475, 480.
0:38:45 > 0:38:47485, 490.
0:38:50 > 0:38:54495. 500. 505.
0:38:54 > 0:38:57505 elsewhere.
0:38:57 > 0:39:00If not, £500,000, first time...
0:39:01 > 0:39:03Second time.
0:39:03 > 0:39:06Third and last time. If you're all done...
0:39:06 > 0:39:09Sold, 500. Good buy, well done.
0:39:10 > 0:39:16The successful bid of £500,000 was made by Tana, who's an oil trader.
0:39:16 > 0:39:20He came along with his wife Stella, who is a voluntary worker, to tell us
0:39:20 > 0:39:24what their plans were for this Earl's Court flat.
0:39:24 > 0:39:28Tana, Stella, great to meet you both. Congratulations.
0:39:28 > 0:39:30- Thank you.- Tell me why you wanted to buy it.
0:39:31 > 0:39:33I always wanted a flat, for some reason,
0:39:33 > 0:39:37you know, to have a flat in the Earl's Court area.
0:39:37 > 0:39:40So I thought this was within our budget, so I just went for it.
0:39:40 > 0:39:44- So you have you bought it for you? - As an investment for us.
0:39:44 > 0:39:48So is this something you do - are you property investors?
0:39:48 > 0:39:52Yes, we have a few properties in Ealing area,
0:39:52 > 0:39:55so this would be the furthest out for us.
0:39:55 > 0:39:58So what was it about the flat that you particularly liked?
0:39:58 > 0:40:02The location attracted me first and then,
0:40:02 > 0:40:05once I walked into the flat, I thought it was a great flat
0:40:05 > 0:40:10because of the proportions of the rooms and the high ceilings.
0:40:10 > 0:40:14- So it was good.- Stella, what do you think of it?
0:40:14 > 0:40:17I love it. I walked in and I think it's lovely and bright and airy,
0:40:17 > 0:40:20and I quite fancy living here myself, actually.
0:40:20 > 0:40:21When did you see it?
0:40:21 > 0:40:26- Just...10-15 minutes ago. - Oh! 10-15 minutes ago?- Yes.
0:40:26 > 0:40:29- So you didn't see it before the auction?- No, I didn't, no.
0:40:29 > 0:40:30Tana did tell me about it
0:40:30 > 0:40:33and it sounded like the sort of place we were looking for, so...
0:40:33 > 0:40:35What was it that appealed to you?
0:40:35 > 0:40:39We did think we wanted to try and buy somewhere more central,
0:40:39 > 0:40:42so that fits the bill, and also we liked the proportions.
0:40:42 > 0:40:47It's nice and spacious, there are no poky bits in the flat, really.
0:40:47 > 0:40:49How was the auction?
0:40:49 > 0:40:52I mean, it went...it went well.
0:40:52 > 0:40:55I'm very pleased to actually get this place for 500,
0:40:55 > 0:40:59also I saved on the stamp duty as well.
0:40:59 > 0:41:03I calculated the other person was going to get to 500 because we
0:41:03 > 0:41:08were going up in fives, so I think from 490 I jumped to 500 just to...
0:41:08 > 0:41:11Very tactical!
0:41:11 > 0:41:13Because of course they would have had to pay not just
0:41:13 > 0:41:18an extra 10,000 or 5,000, but the extra stamp duty as well.
0:41:18 > 0:41:20Yes, so I tried to put them off.
0:41:22 > 0:41:25- It doesn't always work, but it did this time, yes.- Ah!
0:41:25 > 0:41:27- Ruthless at the auctions, you are!- Thank you.
0:41:29 > 0:41:33So is the idea then to do it up and rent it out?
0:41:33 > 0:41:34Or sell it?
0:41:34 > 0:41:38Erm, I think we will try to keep it.
0:41:38 > 0:41:44Unless we...maybe someone comes with a very tempting offer.
0:41:44 > 0:41:46Tell me what you're going to do to it, then.
0:41:46 > 0:41:48I think we need to do it quite high standard,
0:41:48 > 0:41:52if we were to keep it as one bed.
0:41:52 > 0:41:54Obviously we have to change all the...
0:41:54 > 0:41:58You know, completely new bathroom, new kitchen.
0:41:58 > 0:42:01New flooring, you know, we have to do everything.
0:42:01 > 0:42:05And keep it as one bedroom or try and get two out of it?
0:42:05 > 0:42:09Erm, I need a few more opinions on that, you know.
0:42:09 > 0:42:12But I think we'll try to keep it as one bed.
0:42:12 > 0:42:15I think it would be a shame to turn a lovely-proportioned
0:42:15 > 0:42:19flat like this into what could be a cramped two-bedroom.
0:42:19 > 0:42:22I've got my fingers crossed that they leave it as one.
0:42:22 > 0:42:26Tana and Stella have a budget of £25,000 to renovate the flat
0:42:26 > 0:42:31and they'd like to get the work done in a maximum of 10-12 weeks.
0:42:31 > 0:42:34They've certainly got a lot of work to do.
0:42:34 > 0:42:37Well, the windows was one thing that struck me.
0:42:37 > 0:42:41They're obviously the old metal ones. Are you looking at replacing those?
0:42:41 > 0:42:43We checked the lease with my solicitor
0:42:43 > 0:42:50and she said we could replace them, but it was the management company.
0:42:50 > 0:42:52And will you actually be getting your hands dirty,
0:42:52 > 0:42:56- or do you get a team of people in? - Team of people, yes.
0:42:56 > 0:43:00But Stella actually does come up with good ideas.
0:43:00 > 0:43:03You mentioned making it quite upmarket, give me some ideas of how
0:43:03 > 0:43:05you're going to create that upmarket feel.
0:43:05 > 0:43:07I guess just updating what's here already
0:43:07 > 0:43:11and I think there might be some very interesting flooring
0:43:11 > 0:43:14underneath here, so we're looking forward to having a look at that.
0:43:14 > 0:43:18- Perhaps some nice parquet.- Yes. - Listen, congratulations.
0:43:18 > 0:43:20- Thank you very much.- And good luck with it.- Thank you.
0:43:20 > 0:43:22Hope it turns out well.
0:43:22 > 0:43:26Well, Tana and Stella are moving their property portfolio
0:43:26 > 0:43:28a little more central and, as a result,
0:43:28 > 0:43:31ending up with what I think is a really great flat.
0:43:31 > 0:43:35How will they get on sorting it out? I can't wait to see.
0:43:35 > 0:43:37You can find out later in the show.
0:43:41 > 0:43:44Well, we've seen what happened to one of today's properties.
0:43:44 > 0:43:46Let's find out what happened to the other two.
0:43:46 > 0:43:49Let's see if that time and money has been well spent.
0:43:51 > 0:43:54Time to head back over the Irish Sea to return to Dunmurry
0:43:54 > 0:43:58and what looked like a modern, two-bedroom apartment.
0:43:58 > 0:44:00But we all know looks can be deceptive,
0:44:00 > 0:44:02so what awaited me behind the front door?
0:44:05 > 0:44:07Erm...well...
0:44:07 > 0:44:11it turns out a modern, two-bedroom apartment.
0:44:13 > 0:44:16That's good, it's double-glazed, it looks like it's got central heating
0:44:16 > 0:44:20from the fact there are radiators.
0:44:20 > 0:44:22You know, I know my stuff.
0:44:22 > 0:44:27It's in nice condition...erm, and...I like the way it's designed.
0:44:27 > 0:44:31Lots of light flooding in from the windows.
0:44:31 > 0:44:32HE SIGHS
0:44:34 > 0:44:35It's great!
0:44:35 > 0:44:39# Mmm, I couldn't love you
0:44:39 > 0:44:42# Any better
0:44:42 > 0:44:48# I love you just the way you are. #
0:44:51 > 0:44:54I'm not often lost for words, but this time, I was.
0:44:54 > 0:44:58With a guide price of £62,000, it seemed attractive
0:44:58 > 0:45:02when other similar properties were selling for around 75,000.
0:45:02 > 0:45:06So, I wasn't surprised that an investor like Kieran bought it
0:45:06 > 0:45:07for the guide price.
0:45:09 > 0:45:14Trouble was, Kieran was the one who was surprised.
0:45:14 > 0:45:17I went to the auction to buy something else,
0:45:17 > 0:45:21the previous lot, and unfortunately didn't get it.
0:45:21 > 0:45:25I then had a moment of weakness and it was the next lot,
0:45:25 > 0:45:28and I opened the bidding and nobody else bid.
0:45:28 > 0:45:31Well, I've heard about people going into relationships that aren't
0:45:31 > 0:45:34ideal, on the rebound, but not buying a house on the rebound.
0:45:34 > 0:45:38On the rebound through frustration and being stubborn.
0:45:38 > 0:45:41Well, I can see why he was surprised.
0:45:41 > 0:45:43It is kind of rare that we have a property on Hammer that
0:45:43 > 0:45:45goes on the first bid.
0:45:45 > 0:45:50But now it was his, did Kieran have a grand plan to remodel the apartment?
0:45:50 > 0:45:52Well, in a word, erm...
0:45:52 > 0:45:54No.
0:45:55 > 0:46:02I'll just touch up, I think maybe the bathroom. Change the bathroom seat. Aye, I know.
0:46:02 > 0:46:05- I can't find much more to do, really.- So 15 quid, then.
0:46:05 > 0:46:0715 quid. That's the budget.
0:46:09 > 0:46:13Well, one week later and we're back.
0:46:13 > 0:46:16So, queue the music,
0:46:16 > 0:46:19get the spangly graphics at the ready...
0:46:19 > 0:46:21And wait for it...
0:46:21 > 0:46:23Reveal!
0:46:23 > 0:46:26CRICKETS CHIRP
0:46:26 > 0:46:29Right... Hang on, let's try a different room.
0:46:29 > 0:46:32Wait...and reveal!
0:46:35 > 0:46:38OK... Let's try the bathroom...
0:46:43 > 0:46:46Hm. Hang on. He said he was going to change the loo seat.
0:46:48 > 0:46:50Thank you.
0:46:50 > 0:46:54The toilet seat is now in place.
0:46:54 > 0:46:56It came in within budget.
0:46:56 > 0:46:59This is an interesting one, because I have a builder who does
0:46:59 > 0:47:03all of my work and has done large jobs, small jobs, every job.
0:47:03 > 0:47:06This is the first job I've done myself.
0:47:06 > 0:47:08He did volunteer to come and do it, because he said I would make
0:47:08 > 0:47:13a mess of it, but I have been able to do the toilet seat myself.
0:47:14 > 0:47:17I stuck to the budget...just about.
0:47:17 > 0:47:20The toilet seat was listed at £20,
0:47:20 > 0:47:25but after a bit of negotiation - the guy thought I was a bit weird -
0:47:25 > 0:47:31but I insisted he was only getting £15, so I came in within budget.
0:47:33 > 0:47:36# I kneel
0:47:36 > 0:47:38# At your throne
0:47:39 > 0:47:43# I'm so
0:47:43 > 0:47:46# All alone. #
0:47:46 > 0:47:50All joking aside, although this appeared a good price, Kieran decided
0:47:50 > 0:47:54to bid on this at the last minute, never having seen it,
0:47:54 > 0:47:58let along having inspected it or looked at the legal pack.
0:47:58 > 0:48:02The only thing he had was the auction catalogue description.
0:48:02 > 0:48:06I think back to the moment the hammer dropped...erm,
0:48:06 > 0:48:09and a lot of sweat appeared on my forehead.
0:48:09 > 0:48:11The next 24 hours wasn't very pleasant
0:48:11 > 0:48:15but I tried to research what I'd bought.
0:48:15 > 0:48:18Since then, it's all been positive,
0:48:18 > 0:48:21but that's through luck rather than anything else.
0:48:23 > 0:48:25Kieran went against all his instincts
0:48:25 > 0:48:28buying this property, not only did he not do his research,
0:48:28 > 0:48:32he usually doesn't even like to buy flats because there are neighbours,
0:48:32 > 0:48:35communal repairs and other external factors
0:48:35 > 0:48:36he thinks are a hassle.
0:48:36 > 0:48:39He's a very experienced property developer
0:48:39 > 0:48:44and he knows his rebound buy has turned out well, against the odds.
0:48:44 > 0:48:50Having spent £62,015, will he make any money out of this experience?
0:48:50 > 0:48:52We asked along two local property experts to
0:48:52 > 0:48:55get their opinion on its value.
0:48:55 > 0:48:57This is my first time in the property.
0:48:57 > 0:49:01My impression of this property is it's in very good order.
0:49:01 > 0:49:03I would say it's been a very good buy.
0:49:03 > 0:49:07It's in a very desirable location for rental and selling,
0:49:07 > 0:49:09and there's very little that needs to be done to it.
0:49:09 > 0:49:14This is my second visit to this property in very quick succession.
0:49:14 > 0:49:18There hasn't been an awful lot of change. It's a two-bedroom apartment,
0:49:18 > 0:49:20what else can you say?
0:49:20 > 0:49:22They are fairly standard in their layout,
0:49:22 > 0:49:25but the rooms are of generous dimensions
0:49:25 > 0:49:29and the target market you'd be looking for, this suits very well.
0:49:30 > 0:49:32I think Kieran will be glad to hear that.
0:49:32 > 0:49:35He's looking to sell this place on as soon as possible,
0:49:35 > 0:49:38but having spent £62,000 and £15,
0:49:38 > 0:49:41what could he expect to sell it for?
0:49:41 > 0:49:44If we got the instruction to market this property,
0:49:44 > 0:49:46we would put it on at £85,000.
0:49:46 > 0:49:48We would expect, with the condition of this property,
0:49:48 > 0:49:52easily to achieve £86,500.
0:49:52 > 0:49:54I would market this property on the market today
0:49:54 > 0:49:59at somewhere between £75,000-£80,000.
0:49:59 > 0:50:01That would give Kieran a profit
0:50:01 > 0:50:05of between £13,000 and £24,500.
0:50:05 > 0:50:11That's over £3,500 a day profit, minus the usual taxes and expenses.
0:50:11 > 0:50:15Oh, and £15 for a toilet seat, obviously.
0:50:15 > 0:50:18But Kieran already has a property portfolio.
0:50:18 > 0:50:22What would he expect if he decided to keep and rent the property out?
0:50:23 > 0:50:27If this property came on to the open market for a rental valuation,
0:50:27 > 0:50:30we would put this at £500 per calendar month.
0:50:30 > 0:50:34I would see this property achieving between £500
0:50:34 > 0:50:37and £525 per calendar month.
0:50:37 > 0:50:42If I was going to rent I would expect £525 per calendar month,
0:50:42 > 0:50:45but it's never been my intention to rent.
0:50:45 > 0:50:50£525 per calendar month would mean over a 10% yield,
0:50:50 > 0:50:54but Kieran is not for shifting on this and still intends selling.
0:50:54 > 0:50:59However, if he gets anything like the resale price, he'll have done well.
0:50:59 > 0:51:02As the old saying goes, if he fell into the sea,
0:51:02 > 0:51:04he'd come out with fish in his pockets.
0:51:04 > 0:51:08I just hope Kieran has learned his lesson.
0:51:10 > 0:51:14I'll be at three more auctions in the next two or three weeks.
0:51:14 > 0:51:15I'll be a lot more methodical.
0:51:15 > 0:51:19Auctions are a great place for investors,
0:51:19 > 0:51:21as long as you've done your homework.
0:51:25 > 0:51:27Earl's Court was the star-studded
0:51:27 > 0:51:31location of one of the properties we saw earlier in the show.
0:51:31 > 0:51:32We meet Stella and Tana,
0:51:32 > 0:51:37who paid half a million pounds for this one-bed flat. Sounds a lot?
0:51:37 > 0:51:41Not to Tana, who felt his auction tactics grabbed him a bargain.
0:51:41 > 0:51:44Well, I calculated the other person was going to get to 500 because we
0:51:44 > 0:51:50were going up in fives, so I think from 490 I jumped to 500, just to...
0:51:50 > 0:51:56- Very tactical!- It doesn't always work, but it did this time.- Ah!
0:51:56 > 0:51:58- Ruthless at the auctions, you are.- Thank you.
0:52:00 > 0:52:03Six months later, we're back with Tana and Stella,
0:52:03 > 0:52:05who are joined by their daughter, Julia.
0:52:36 > 0:52:40It's very clean, bright, airy, contemporary.
0:52:40 > 0:52:44Since we bought the flat, we've basically changed the windows,
0:52:44 > 0:52:47the kitchen, the bathroom.
0:52:47 > 0:52:50It's just been a total refurbishment.
0:52:50 > 0:52:53In the kitchen we've added some extra units,
0:52:53 > 0:52:56we've replaced the boiler, we've changed the windows,
0:52:56 > 0:52:57as we have done in the rest of the flat,
0:52:57 > 0:53:03and we've put new work surfaces and tiles on the floor.
0:53:03 > 0:53:05The work surface we chose was a composite,
0:53:05 > 0:53:07because it's very hard-wearing.
0:53:07 > 0:53:12The original metal windows were not ideal, however, having spoken to the
0:53:12 > 0:53:15property management agency for the building, they found they had
0:53:15 > 0:53:20to fit like-for-like replacements, as stated in the property's lease.
0:53:20 > 0:53:23Still, it's a top refurbishment of a top-floor flat
0:53:23 > 0:53:28and I do love the bathroom in particular - completely modernised.
0:53:28 > 0:53:31But no huge layout changes to this flat...
0:53:31 > 0:53:32Or were there?
0:53:34 > 0:53:37The entrance had a doorway into the main sitting room
0:53:37 > 0:53:40and it was very dark in the entrance hall,
0:53:40 > 0:53:45so we just took away the door and widened that doorway.
0:53:45 > 0:53:48And we've added in some built-in cupboards,
0:53:48 > 0:53:52because cupboard space is always a premium in a small flat.
0:53:52 > 0:53:55That's a very clever use of the space, and I'm glad they've
0:53:55 > 0:53:59kept the nice proportions, a real bonus in central London.
0:53:59 > 0:54:04Talking of which, did that location cause any issues with the renovation?
0:54:04 > 0:54:08The biggest problem with the building is obviously
0:54:08 > 0:54:09being in central London.
0:54:09 > 0:54:14So, you know, getting rid of all the rubbish...
0:54:14 > 0:54:16and it was a challenge.
0:54:16 > 0:54:20Also, as part of our licence we had to work restricted hours,
0:54:20 > 0:54:25- which was also a challenge. - A challenge they overcame, clearly.
0:54:25 > 0:54:27Or, did it harm the timescale?
0:54:29 > 0:54:33Yes, we thought the work would take about 10-12 weeks...
0:54:33 > 0:54:38Actually, I think we were almost spot on, but we didn't realise that
0:54:38 > 0:54:42getting the licence to carry out these works was going to take
0:54:42 > 0:54:46a long time. Actually, it did take nearly as much time,
0:54:46 > 0:54:51so it's been nearly 8-10 weeks to actually get the licence.
0:54:51 > 0:54:54Things like parking for your workmen is something you have to
0:54:54 > 0:54:58take into account when planning a renovation project.
0:54:58 > 0:55:02As is the fact working hours may be restricted to give neighbours
0:55:02 > 0:55:04peace, especially in a block of flats.
0:55:04 > 0:55:08So, do factor it into your schedule and your budget.
0:55:09 > 0:55:15We initially thought we would be spending a maximum of 25,000,
0:55:15 > 0:55:18but we actually ended up spending 35,000.
0:55:20 > 0:55:24An over-spend here of £10,000 is a lot.
0:55:24 > 0:55:27But I sense that local property experts will be impressed.
0:55:29 > 0:55:32This is my first time in this property,
0:55:32 > 0:55:34so I haven't seen it in its previous condition.
0:55:34 > 0:55:38But I must say it looks fabulous now.
0:55:38 > 0:55:42Negativity-wise, I would say it's a little bit on the noisy side.
0:55:42 > 0:55:44In the evening it's pretty quiet around here,
0:55:44 > 0:55:46so it's just during the day.
0:55:46 > 0:55:49This is my first time inside this property and I think the work
0:55:49 > 0:55:50they've carried out is exceptional.
0:55:50 > 0:55:54They've done it to an extremely high standard, I'm very impressed indeed.
0:55:54 > 0:55:56Two very happy agents.
0:55:56 > 0:56:01Having bought the flat 500,000 and spent £35,000 on it,
0:56:01 > 0:56:05they have a total investment of 535,000.
0:56:05 > 0:56:07They originally thought they would hold on to the flat
0:56:07 > 0:56:10and rent it out, so how much could they rent it for?
0:56:11 > 0:56:16I would expect the property to achieve £2,225 per calendar month
0:56:16 > 0:56:18if we were renting it out.
0:56:18 > 0:56:22If the owner would put this property on the market for lettings,
0:56:22 > 0:56:26I would expect him to achieve a price of
0:56:26 > 0:56:28£2,000 per calendar month.
0:56:30 > 0:56:34Tana and Stella had planned to rent, but they would get just under
0:56:34 > 0:56:41a 5% yield from that higher value of £2,225 per calendar month.
0:56:41 > 0:56:43What do they reckon about those figures?
0:56:43 > 0:56:48I think they are OK, but they don't represent a very high yield.
0:56:48 > 0:56:52I think we would aim to sell.
0:56:52 > 0:56:54Ah, a change of plan.
0:56:54 > 0:56:59And with a buoyant London market, it could be a good choice.
0:56:59 > 0:57:01If the property were placed onto the market today,
0:57:01 > 0:57:05I would envisage easily achieving in excess of 700,000
0:57:05 > 0:57:09and suggest a marketing price £725,000.
0:57:09 > 0:57:14This property would achieve a sales price of around £700,000.
0:57:15 > 0:57:18At an average evaluation of 700,000,
0:57:18 > 0:57:24Tana and Stella could bag a £165,000 pre-tax profit.
0:57:24 > 0:57:26See what I mean about a good choice?
0:57:27 > 0:57:32For us, to consider renting the place for a while,
0:57:32 > 0:57:37I think the rent would need to be more than 2,500.
0:57:37 > 0:57:41So I think with this figure, we would definitely look to sell.
0:57:43 > 0:57:46I think that could be a good decision for fast profit.
0:57:46 > 0:57:49But there's one key person we've not heard from,
0:57:49 > 0:57:50and that's daughter Julia.
0:57:50 > 0:57:55Mum and dad and great at the property game. Will she join them one day?
0:57:58 > 0:58:01No. I want to be a fashion designer when I'm older.
0:58:05 > 0:58:06Well, we hope you enjoyed that
0:58:06 > 0:58:10and perhaps picked up some useful information along the way.
0:58:10 > 0:58:14- We look forward to seeing you next time on Homes Under The Hammer. - Goodbye for now.- Bye.