Episode 54 Homes Under the Hammer

Hello and welcome.

It's amazing how some people start off by dabbling in property

and then it ends up taking over their lives.

Not surprising, really.

It means that you can work your time around your family

and you can just make money for yourselves.

But the key is to buy the property at the right price in the first place.

One way you can do that is by visiting the auctions.

Well, we've said it before but we'll say it again -

the best way to avoid unforeseen problems at the auction

is to do your research.

Now, did today's buyers take our advice? Here's what they bought.

We are in Ramsgate to see this.

Well, at the least the bottom flat!

A smell of damp hits you.

You really feel like you're underground.

This buyer's feeling a little flat about his new apartment.

-Tell me why you wanted to buy this flat?

-Well, I didn't really.

And our tale of three flats ends with a desirable spot in the capital.

So, expectations are high.

All these properties have been sold at auction.

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

when they went under the hammer.

This is Ramsgate in east Kent.

Apart from its stunning waterfront, this large town can also

claim to be the only royal harbour in mainland England.

A mark of honour granted by King George IV

in 1820 after the hospitality he received here.

So, let's hope the property I'm here to see

will be giving me a warm welcome.

Now, the great news is the two-bedroom flat

I'm here to see is just a stone's throw from the waterfront.

The sea is literally just over there.

This place had a guide price of £55,000-65,000

and it is in this gorgeous, Grade II listed building.

I cannot wait to have a look around.

'The building dates from 1851 and look, it's full of character.'

However, it's right down there.

Let's hope the condition isn't too historic inside.

You certainly feel like you're underground.

A smell of damp hits you as soon as you walk in

and a sort of vaulted room there, a rather redundant area here.

It's like you're walking into a mysterious cave

and you really feel like you're underground.

Another room through there.

I suppose you could have a small bedroom, a bedroom.

A rather nice hallway. I do like this.

You've got a little bathroom through there.

There's bits of character around.

Not too many beautiful features

but you definitely feel that you're in somewhere old and cold.

Yeah, it is quite historical.

Well, you could say this lower ground floor

certainly shows its history and while the kitchen looks serviceable,

it won't be remembered in days to come.

Fortunately, the good size of the lounge does leave an impression

but I think you know what the worst thing about this flat is.

# Oh, that smell

# Can't you smell that smell... #

But while that dampness can be addressed,

there are two potential problems

that might be a little more troublesome.

The lease length for the flat is only 70 years, which is not ideal.

And remember, this is a Grade II listed property

meaning it's of special interest and that throws up a host of issues.

Well, it's lovely to own a little piece of history but that

Grade II listed title doesn't come without its restrictions.

Each building is different but broadly speaking,

you will need to get listed building consent before you alter

anything which could affect its character.

I would advise anyone taking on such a property to start-up

an early dialogue with the conservation officer

and get them onside before the renovation work commences.

So, a few complications that could put potential buyers off.

That is until they step out of the lounge French windows

and into the communal gardens.

Do you remember me mentioning how close the seafront was to this building?

Just have a look over here.

If ever there was a selling feature for a flat, it's the sea view!

Look at that! Absolutely gorgeous.

Even on a blustery, windy day like today,

I'd never tire of looking at that.

The view alone makes this an interesting item but with that

£55,000-65,000 guide price, it's time to find out what a local

estate agent thinks of this rather unique property.

The flat does need a programme of improvement works.

It's obvious there's some damp issues here that have to be

resolved, there's other things to be done with regards to the kitchen

and bathroom and the lease has to be extended.

The length is a problem.

Most lending sources would look at 70 years as being a cut-off point.

Anything less than that is considered a short lease

so it would be highly advisable to extend the lease.

But that would involve extra costs to the new owners,

possibly running into thousands of pounds.

But what could this little piece of history be worth

after some improvement work?

Once renovated and the lease extended, I would recommend,

because of historical sale values in the block,

an asking price in the region of £135,000-£145,000.

Once renovated, I would recommend a rental figure

in the region of £600-650 per calendar month.

Well, this flat does throw up a few issues but there is no

denying it's a unique and beautiful building in a fantastic setting.

With the £55,000-65,000 guide price,

I think it could be a great opportunity for someone.

Let's see who agreed when we went to auction.

Lot 28. Two-bedroomed flat located in iconic building.

Give me 55, then. £55,000.

I'm obliged. And 60 now, do I see?

At 60. I'm obliged. At 62. Is that a bid, sir?

At 62. 65. 65. 67.

And 70. At 70. And two. And five. And seven. And 80.

And two. 82?

At £80,000. 82, I've got.

84. 84. 86? No.

£84,000, I have. 86, I'm looking for.

Are we all done at £84,000? I will sell for the first time.

£84,000 unless I get another bid for the second?

Third and final time... 86, thank you. 86.

88? At 86,000 I've got, for the first time.

86,000 for the second time. All done at £86,000?

Third and final time. All done at 86?

£86,000, sold. And the number, please?

And those successful bidders getting the lot for £86,000

were south London based couple Michelle and James.

Michelle is a lawyer while James works as a furniture restorer.

They also enjoy dabbling in a bit of property developing

and own several rental investments.

I met them back at their latest purchase to find out their plans.

-Guys, it's lovely meeting you today. Congratulations.

-Thank you.

Whose idea was it to bid at auction?

Well, I think it was a joint effort, in fact.

We both agreed that's what we wanted to do

because we've kind of like...

We're used to buying properties so it's something we wanted to do for ourselves.

And what was it about this property in particular that made you

really want to sort of go for it and bid for it at auction?

The location. I mean, by the sea here. Top of the cliff.

It's just absolutely spectacular.

As a boy I remember I used to come along the cliff here

and I remember right next door there used to be a model village

so it's a bit of history as well.

-Evoked all those childhood memories!

-Kind of.

So, why have you bought this property?

For a holiday home for ourselves, this time.

It's nice to do it for ourselves instead of, you know, buy to let for someone else.

We've got some family here as well.

So, the whole point of you buying this property

is for yourselves to have fun, a holiday home to just really enjoy.

Absolutely.

# Enjoy yourself

# It's later than you think

# Enjoy yourself

# While you're still in the pink... #

They should enjoy themselves,

especially when you remember the lease is only 70 years.

As James and Michelle don't intend to sell the flat on,

this isn't an issue, though they do plan to extend it in the future.

But what are their plans right now?

As you walk through the front door, you've got that rather strange little room to the left.

What are you going to do with that?

The vault, as we call it, is going to become the family bathroom

and the small room next to that, which has a supporting wall,

that's going to become a wet room.

And then tell me, as we come further into the flat, how it's going to be laid out?

We were hoping to move the wall in the hallway

so we make a bigger bedroom and a narrower hallway

because there's a bit of wasted space there.

And then knock through the bathroom and bedroom into one,

to make one really big bedroom.

So we'll turn it, effectively, from a two-bedroom into a one-bedroom flat.

By losing the second bedroom, James and Michelle know they might be

devaluing the flat but this project isn't about making money,

it's about creating a dream holiday home for themselves.

Buying into a listed building does mean that certain

hoops may have to be jumped through before those changes can start.

We'll have to get some plans drawn up,

take them to the listed building officer

and discuss what we're going to do on the inside and we're hoping that

we'll get help from them, rather than hindrance from them.

Because we really want to bring the property back to life,

rather than damage anything that needs to remain.

Can you foresee any problems with the conservation officer

as far as, you know, changing and developing this property?

Just the one, and that could possibly be in the hallway.

One of the walls that we'd really like to move.

We'll have to wait and see.

I think if we don't get the permission for the wall,

we'll just have to be imaginative in how we use that space.

It's a great space and we'll have to think of something to do with it.

One thing that doesn't need leaving to the imagination is the smell.

To what extent is the property damp? Do you know?

Have you had any reports back?

Yes, we've had it investigated as far as you can with the walls

that are already up and the partitions and that sort of thing.

So they can't give you a complete picture but they can give you a general idea.

Clearly, the back of the sub basement, as I like to call it, that is the worst part.

-That really does smell. When you walk in, it hits you.

-Yeah.

James and Michelle have dealt with damp problems before

so they know the ropes and with an ambitious budget of £20,000

for the work, the couple are hoping to get

listed building consent and the work completed in just seven months.

Now, I suppose for you, James, your job as a furniture restorer

is all about bringing things back to life.

-Are you coming to apply that to this property?

-Definitely. Certainly.

I'm going to be very hands on in here as well,

managing the property along with Michelle.

So I'm going to be here working and I will be taking time

out of the restoration business to spend it here.

-And you're going to be very busy everyday working, aren't you?

-Yeah.

But I get to do all the paperwork and pay all the bills

so, you know, it's a good partnership.

And what's the look and feel of the property going to be like?

Very modern. We're going to go for the modern look here.

It will be stripped floors, carpets in the bedrooms, that kind of thing.

Modern kitchen. So, yeah, it will look very good.

-Everything beautifully upholstered?

-I hope so.

Guys, I'm so excited and I can't wait to find out what this is like,

especially in the summer months. It's going to be beautiful.

-Congratulations. Well done.

-Thank you.

-Lovely to meet you. Thanks.

James and Michelle have big plans to make this flat

their perfect holiday retreat

but will that listed building consent complicate matters for them?

You can join me later in the programme to find out

whether the sea is still blue, the sun is shining brightly

and if their summer holiday dreams really do come true.

Located between Belfast and Lisburn, Dunmurry became known

as one of the linen villages in Ulster.

Linen has declined in the face of man-made fibres, which are cheaper.

But there is still an industry focusing on the high-end market.

Remnants of the long history of the fabric

can be seen all around this area, dating back to the heyday

when the flax that it was made from was grown here.

# Ball of confusion

# When nothing is new and

# There's nothing doin'

# Step back in time... #

Well, actually back to the present day

and the property that was up for auction.

And it's very modern.

A two-bedroom flat on this lovely estate,

really close to the centre of Belfast and yet you wouldn't know.

It's really quiet and surrounded by hills.

So, here it is. Pretty smart-looking.

Guide price of 62,000. Let's have a look.

So, a pretty tidy little entrance hall, which is always a good sign.

Into the flat and...wow!

Looking pretty hopeful.

A nice, big sort of entrance corridor.

It's almost like the central part of the flat, like an artery,

off which the different rooms go. That's good.

Bathroom. Looks to be in pretty nice condition.

As does bedroom number one, which is double glazed.

Bedroom number two is a bit on the tight side. Hey-ho.

Looks like it's got central heating from the fact there are radiators.

Ha! Yeah, you know, I know my stuff!

Then through into this room here,

which is a sort of open-plan kitchen/living area/dining room.

It's in nice condition and the units are very, very trendy looking.

And I like the way it's designed with lots of light

coming in from the windows.

It's great.

# No change... #

So, first impressions are good. Very good, in fact.

There seems to be absolutely nothing that needs doing to this apartment.

So, we've established there's probably not that much to do

to sort this place out.

We have to then switch to a different way of thinking.

Guide price at auction was 62,000.

Do your research and this estate has got lots of similar properties

and five minutes on the internet, you discover that similar properties,

similar flats with two bedrooms are going for round about £75,000

in good condition,

like this one.

£62,000 at auction, £75,000 on the open market.

No guarantees you're going to get 75. But you know what?

As gambles go, it might be worth having a bit of a punt.

# Take a chance on me

# That's all I ask of you, honey

# Take a chance on me... #

That's what I love about this show -

you never know what you're going to get.

Some days it's run down and derelict and other days, well, it's perfect.

Let's check outside to see how that's looking.

One thing's for sure,

the exterior of the building is in as good a condition

as the interior, as is the grounds.

That's good news, isn't it?

Well, yes. But on a block of flats like this,

basically, somebody has got to pay for this.

Individual owners club together often as a management company

and it's really important to know what the management company

charge to keep it looking this good.

That should be in the legal pack. Make sure you read it before you buy.

Even though everything looks perfect,

it's always important to do your research

in case of any hidden problems or charges before you head to the auction house.

With seemingly very little to physically do here,

that guide price of £62,000 is looking rather good.

We asked along a local property expert for his opinion.

Well, this apartment is ready for the market.

There's nothing needing done.

For sale, provided this property is priced correctly

and priced sensibly, there will be great demand.

The rental market,

this property will rent within one week, two weeks.

The demand is that high

for something in this location and in this condition.

Great news!

A buoyant rental market is always positive

and a possible rental of around £500 per calendar month here is healthy.

What about a valuation? How will it compare to the guide price of 62,000?

This apartment is worth at least £75,000, possibly £80,000.

Hm, well, if you can find something negative to say about this property,

as far as I'm concerned it's only that it doesn't

really give you a lot of scope to add value.

It's pretty much great as it is.

So, for anything like that guide price, probably a good buy.

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

Guide price, 62,000. Somebody like to give us a bid at 62,000?

This is for 62,000. We've a...

62,000, we have. 62,000.

Any advance on 62,000? We have.

All sure? Last call at 62,000.

Going once. Selling at 62,000. Going twice. Sold at 62,000.

Wow! Blink and you'll miss it.

Sold on the first bid and bang on the guide price of £62,000

to a rather startled looking Kieran.

# I didn't mean it I didn't mean it

# I didn't mean to say what I said when I said I didn't mean it... #

local man Kieran is a chartered accountant by trade

but has a fair sized portfolio of properties as well,

although his latest acquisition came as something of a surprise.

-Kieran, great to meet you.

-Hello, Martin.

-Congratulations.

-Thank you very much indeed.

-Tell me why you wanted to buy this flat.

Well, I didn't really. I went to the auction to buy something else,

the previous lot, and unfortunately didn't get it.

But this had been mentioned to me by an old friend.

It was the next lot and I opened the bidding and nobody else bid.

10 seconds later, it was mine.

-You must have been a little bit shocked.

-Very shocked, yes.

Very shocked.

Did you have money burning a hole in your pocket?

-You had to buy something that day?

-No.

That's not normally the way I do things.

I'm an accountant by background

but I do things very methodically normally

and on the lot I went to buy I had my calculations done,

I knew what it was going to cost and the cost of renovations,

what the sale price would be.

And when I was outbid I stopped bidding at the price I had expected.

But I then had a moment of weakness. 30 seconds later I had bought this.

I've been doing this 15 or 20 years and I'm normally the other way.

OTT the other way.

View the property three or four times, get my builder in.

I do it the other way.

So, a 90 minute journey back home

and I wasn't exactly very happy with myself.

So, at that moment when you put your hand in the air

and probably didn't expect to get it on the first bid,

what went through your mind?

Not a lot. It's a lesson to everybody, really.

Auctions are not... You should be prepared.

And I was really on the rebound.

I was very keen on the previous lot and upset I hadn't got it.

The auctioneer's eyes seemed to fall upon me on the next lot

and he said, "Can anyone open the bidding?"

I put my hand up and no-one else bid.

So, if somebody else had bid,

I think I would have calmed down, but at that stage, it was done.

Going, going, gone.

Well, I've heard about people going into relationships

that aren't ideal on the rebound but not buying a house on the rebound.

On the rebound through frustration and being stubborn.

So, as you were driving here first time

to see the house which you'd not visited, not seen,

not had a clue about, what was going through your mind and what happened?

Talk me through that day or that morning.

My sat nav couldn't find the house

so I drove about and passed many houses.

I eventually found it and came in expecting the worst.

And prepared to put it down to experience and learn the hard way.

I've two sons, 20 and 22, who I'm grooming.

I was telling them, "This is not how to do things."

But I have come into the house and I've been fortunate.

It seems to be in very good condition.

So, having walked in... Yes, as you said, I think you're really lucky.

Tell me what you think of it and what you're going to do to it.

Not a lot. Maybe nothing. Maybe very, very little.

It seems just to be touched up here and there

but it needs very, very little to be honest.

So, I'm going to give it back.

The guy who told me about the property, erm...

This may not necessarily be his area,

but I'm giving him the keys and he can sell it

since he's the guy that got me in this mess in the first place,

-he's the guy who can get me out.

-So you're going to sell it?

I will sell it.

-Right. Not rent it?

-No.

No, I have a portfolio, but it doesn't really...

It's not consistent with the type of property I have.

It's not in an area that I know.

Apartments I don't really like, so...

I'm just going to sell ASAP.

MARTIN LAUGHS

I'm laughing, but this may well be a sound investment with a quick

profit for Kieran, since this place is so well maintained.

Is there a budget? Are you going to do anything?

I said to my son maybe £500, but I think I'll struggle to spend £500.

I'll just touch up...

I think maybe the bathroom, change the bathroom seat.

MARTIN LAUGHS

Aye, I know. I can't find much more to do, really.

So 15 quid, then.

15 quid. That's the budget.

-And what about timescale?

-Timescale...

The guy who got me into the mess better get me out of it pretty soon.

But for the work, about 20 minutes, presumably?

20 minutes for the work.

Well, congratulations, sort of.

But well done, and I look forward to seeing how it pans out.

Thank you, Martin. Thank you.

Well, Kieran breaking all his own rules, never mind mine,

buying a house without seeing it, without reading the legal pack.

He didn't even know where it was!

Well, hopefully he can sell it on, but what a risky venture.

Don't do it! You can find out how it all turns out later in the show.

Still to come, we've got some big spenders...

If not £500,000...

Sold, 500. Good buy, well done.

And some, well, not quite so big...

The toilet seat was listed at £20, I insisted he was only getting 15.

We return to the harbour town of Ramsgate in Kent to see our

two-bedroom garden flat, situated in this beautiful historic building.

It was just a shame we had to climb downstairs to see it.

Well, you certainly feel like you're underground.

A smell of damp hits you as soon as you walk in.

And a rather nice hallway, I do like this,

but you definitely feel that you're in somewhere old and cold.

# Play it cool, baby

# Play it cool

# Come on, play it cool. #

Old I can live with, but cold?

No!

And being a Grade II listed building, permissions will be

needed from the conservation authority to make any changes.

So, with an upper guide of only £65,000,

this property was not without its perks. Oh, yeah,

and did I mention the view?

Look at that!

Absolutely gorgeous, and even on a blustery, windy day like today.

I'd never tire of looking at that.

Well, that breathtaking view was one of the features that

convinced James and Michelle to pay £86,000 at auction for the property.

Now living in London, James spent time in the area as a boy and

the couple were looking to turn the flat into

their own seaside holiday home.

As a boy, I remember I used to come along the cliff here.

-Oh, it evoked all those old childhood memories!

-Kind of. Yeah.

So the whole point of you buying this property

is for yourselves, to have fun, a holiday home, to just really enjoy.

-Absolutely.

-Yep.

Nine months later, we return to Ramsgate

to see how James and Michelle have got on.

Wow! I think this is amazing!

I can barely recognise the place.

Oh, a huge change. We've basically

ripped everything out and started from scratch.

We've re-jigged the layout, opened up the kitchen-living room,

dug out in the vault area

and put in a really quite spectacular bathroom and wet room.

Apparently this isn't even the spectacular bit.

They'd best show us this bathroom, then.

We started off by digging out the floor in here

and we removed six tonnes of chalk.

The walls were lined with a special membrane.

Under-floor heating, tiling right the way through.

Fantastic lighting, we've got speakers in the ceilings in here,

and we're absolutely delighted with the finish. Fantastic.

James is absolutely right, the finish is fantastic.

With an equally gorgeous shower room next door,

this really is a little touch of luxury.

But let's not forget this was a Grade II listed building

and trying to get approval for structural changes, well,

it can be problematic. Was it?

It wasn't really an issue at all, other than timing.

They took us right to the eighth week to give us a decision,

but they approved everything that we wanted to do, so no problems at all.

I think the key was that we employed an architect, who produced

some really good plans.

Those plans have used the space brilliantly.

Some things haven't been moved.

The bedroom is still where it was and the kitchen wall was removed,

creating a large lounge.

And when they saw how big it was, they decided not to move

the hall wall, but instead, put the kitchen in there.

Michelle said they would think creatively about this space

and I think they really have.

Yeah, so this was the area where there was the biggest

change in the plans.

When we ripped everything out we saw how big this space was

and when we looked at it, we thought, instead of putting the kitchen in the

living room, this was a great space for a good-sized galley kitchen.

I think it was worth the expense,

because we've ended up with a really fantastic kitchen with loads of

storage space and under-floor heating. We're really pleased with it.

Ah, yes, expense! Those beautiful rooms don't come cheap.

James and Michelle's original budget was 20,000.

How did they get on?

Including fees, about 34,000.

To put the kitchen in the hallway we had to move the power supply,

not just to our flat but to the flats above,

so that was pretty costly, that was unexpected.

The damp problem actually wasn't as bad as we anticipated.

There was a leak from upstairs, which was historical,

and that created a lot of the bad smell here.

Because we ripped everything out rather than making do,

amending, we've spent the money up front

and probably saved ourselves money in the longer term.

Because it was for us, we went the extra mile.

They've overspent by a margin of 70%, but who cares? Wow!

It's fabulous.

They've turned a dark, dingy, damp dungeon into an amazing space.

Wow, what a holiday home. But at what cost?

James and Michelle have spent 86,000 buying it

and that £34,000 on the renovations, bringing the total to 120,000.

As James says, though,

they've done this development for themselves, not to make a profit.

Still, when has that ever stopped us at Homes Under The Hammer

getting a valuation? Oh, never!

So we asked two local

property experts along to give us their opinion.

My thought on this property is that it's been refurbished to

a very high standard, which is really fitting for the area.

I think originally it was two bedrooms.

They have reduced the size down to one bedroom to give that

really fabulous bathroom and I think it was the right thing

to do in this instance, in this lovely prime location.

First impression as you come through the front door,

you immediately see the kitchen. Fantastic kitchen.

And then going through,

it doesn't disappoint as you go through to the lounge.

Fantastic sea views from there, so first impression is fabulous property.

I think this type of property will really appeal to people.

It's a blend of the modern, with things like LED lighting

and a lovely modern kitchen and bathroom, combined with the

traditional features, such as nice wood-burning stoves and radiators.

I would expect the rental on this property to be

in the region of about £625 per calendar month.

I think this property would achieve

around about £625 per calendar month.

Were they to sell, could James and Michelle

make any profit after their £120,000 total spend?

Remember, the first time we came here, the highest estimate

was 145,000.

The value I would put on this property would be in the region of

about £145,000 to about £150,000.

I think we could almost go up to around about

£165,000 for this property.

-Wow, that is quite impressive.

-That's amazing, that's a lot more than we thought.

A real surprise, yeah.

Well, that would be a profit of anything between £25,000

and £45,000, minus the usual taxes and expenses.

But do you know what?

I don't think they care.

For James and Michelle,

making money was not what this property was all about.

We love coming down now at weekends.

It's something we just want to sit back and enjoy now.

Yeah, we've really enjoyed the whole process.

Restoring an old building and bringing it back to life,

we've really enjoyed it. We've got something really special now.

-Definitely.

-Happy with that.

Today, I'm in Earl's Court in the Royal Borough of Kensington

and Chelsea, and if you want to know what kind of an area it is,

just listen to the list of famous local residents, past and present.

# When will I, will I be famous? #

Diana, Princess of Wales, Freddie Mercury, Stewart Granger,

Syd Barrett, Benjamin Britten, Gary Barlow...

This star-studded area is facing changes.

Earl's Court Arena is being pulled out to make way for flats and there's

a 20-year scheme to regenerate the area, so prices are set to rise.

Well, just two minutes' walk from Earl's Court Exhibition Centre

is the property I'm here to see.

Right on a very busy junction, but it sounds appealing,

described in the catalogue as a good-sized one-bedroom flat.

Now, in London...

"good size" means all sorts of things.

The guide price, though, was £450,000 plus, so let's take a look.

# A foggy day...

# In London town... #

A classy interior and, given it's a six-storey building,

I'm pretty glad there's a lift.

Already, I like what I'm seeing.

So, expectations are high.

Hopefully they won't be dashed.

Nice little entrance area there, you don't often see that in a flat.

Very useful for storing things - coats and all that kind of stuff.

Some original doors, they'd be quite nice if they were stripped.

And then straight into a really good-size lounge.

We like that a lot.

Loads of light coming in from the windows there.

Yeah, you sometimes go into a flat and it feels a bit poky,

that's definitely not the case here.

Kitchen, erm, well, it could do with a bit of a refurb -

something you could definitely work on.

Little corridor here and then into the one bedroom.

It has only got one bedroom, but it's a really good-sized one,

and...yes, you could think about making this a two-bedroom flat -

it's big, it's spacious, but overall, the impression...

is really good.

# A room with a view...

# A room with a view. #

It just feels right, and it's oozing with charm from a bygone era.

A touch of Earl's Court glamour just under the surface

and some DIY that's more infamous than famous.

One of these days, I really must compile my top ten DIY bodge jobs,

and when I do, this little sweetie will definitely be on it.

Expanding foam, we love it.

# Hey!

# DIY

# DIY. #

There are a few botched jobs to unpick,

but one thing you won't have to sort out is the lease.

There's 132 years left on it.

Well, the bathroom isn't huge,

but I think it's pretty much in proportion with

the rest of the flat and you'd be well served to spend a little

bit of money putting a really nice bathroom suite in here.

I think the flat deserves it. Another thing you might want to consider...

In fact, not might, DEFINITELY want to consider is the windows.

They are metal, they're both very noisy,

they're also not very insulating, so audio and also heat.

So replace those. But of course, before you do that, you'll

have to talk to the management company of the building to

check what you can put in, to make sure it fits in

with the other windows that are situated in the property.

Just one of the jobs in a programme of refurbishment,

but the flat is definitely

worth the effort.

# You're my mirror in the bathroom

# Mirror, mirror, mirror, mirror. #

It's going to take a lot of work to get this flat to mirror

the excellent welcome of that communal area.

But it really does look like it's just cosmetic.

Time to ask a local agent what he thinks of the flat,

guided at £450,000.

But first, what about the area?

Now people are thinking of coming to Earl's Court a lot more.

They see it on par with areas that

are a little bit more central as well,

and that's actually an image that I think the council is trying

to change. They're trying to make Earl's Court more and more upmarket.

I think, once renovated, the property could achieve £600,000.

If it was done to a very good standard,

I reckon it could rent out for about £1,750 per calendar month.

Well, you have to pay top dollar to buy into the London property market

these days, and in other parts of the country,

nearly half a million quid for a one-bedroom flat...

might sound like quite a lot.

But here in Earl's Court, what you're getting,

I think...strangely enough, is good value for money.

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

Earl's Court, it's a red-hot area.

Loads going to go on there over the next couple of years,

so we'll start at 450.

450 on my left. 450,

455...

455.

460. 465.

470. 470, yes?

475, 480.

485, 490.

495. 500. 505.

505 elsewhere.

If not, £500,000, first time...

Second time.

Third and last time. If you're all done...

Sold, 500. Good buy, well done.

The successful bid of £500,000 was made by Tana, who's an oil trader.

He came along with his wife Stella, who is a voluntary worker, to tell us

what their plans were for this Earl's Court flat.

Tana, Stella, great to meet you both. Congratulations.

-Thank you.

-Tell me why you wanted to buy it.

I always wanted a flat, for some reason,

you know, to have a flat in the Earl's Court area.

So I thought this was within our budget, so I just went for it.

-So you have you bought it for you?

-As an investment for us.

So is this something you do - are you property investors?

Yes, we have a few properties in Ealing area,

so this would be the furthest out for us.

So what was it about the flat that you particularly liked?

The location attracted me first and then,

once I walked into the flat, I thought it was a great flat

because of the proportions of the rooms and the high ceilings.

-So it was good.

-Stella, what do you think of it?

I love it. I walked in and I think it's lovely and bright and airy,

and I quite fancy living here myself, actually.

When did you see it?

-Just...10-15 minutes ago.

-Oh! 10-15 minutes ago?

-Yes.

-So you didn't see it before the auction?

-No, I didn't, no.

Tana did tell me about it

and it sounded like the sort of place we were looking for, so...

What was it that appealed to you?

We did think we wanted to try and buy somewhere more central,

so that fits the bill, and also we liked the proportions.

It's nice and spacious, there are no poky bits in the flat, really.

How was the auction?

I mean, it went...it went well.

I'm very pleased to actually get this place for 500,

also I saved on the stamp duty as well.

I calculated the other person was going to get to 500 because we

were going up in fives, so I think from 490 I jumped to 500 just to...

Very tactical!

Because of course they would have had to pay not just

an extra 10,000 or 5,000, but the extra stamp duty as well.

Yes, so I tried to put them off.

-It doesn't always work, but it did this time, yes.

-Ah!

-Ruthless at the auctions, you are!

-Thank you.

So is the idea then to do it up and rent it out?

Or sell it?

Erm, I think we will try to keep it.

Unless we...maybe someone comes with a very tempting offer.

Tell me what you're going to do to it, then.

I think we need to do it quite high standard,

if we were to keep it as one bed.

Obviously we have to change all the...

You know, completely new bathroom, new kitchen.

New flooring, you know, we have to do everything.

And keep it as one bedroom or try and get two out of it?

Erm, I need a few more opinions on that, you know.

But I think we'll try to keep it as one bed.

I think it would be a shame to turn a lovely-proportioned

flat like this into what could be a cramped two-bedroom.

I've got my fingers crossed that they leave it as one.

Tana and Stella have a budget of £25,000 to renovate the flat

and they'd like to get the work done in a maximum of 10-12 weeks.

They've certainly got a lot of work to do.

Well, the windows was one thing that struck me.

They're obviously the old metal ones. Are you looking at replacing those?

We checked the lease with my solicitor

and she said we could replace them, but it was the management company.

And will you actually be getting your hands dirty,

-or do you get a team of people in?

-Team of people, yes.

But Stella actually does come up with good ideas.

You mentioned making it quite upmarket, give me some ideas of how

you're going to create that upmarket feel.

I guess just updating what's here already

and I think there might be some very interesting flooring

underneath here, so we're looking forward to having a look at that.

-Perhaps some nice parquet.

-Yes.

-Listen, congratulations.

-Thank you very much.

-And good luck with it.

-Thank you.

Hope it turns out well.

Well, Tana and Stella are moving their property portfolio

a little more central and, as a result,

ending up with what I think is a really great flat.

How will they get on sorting it out? I can't wait to see.

You can find out later in the show.

Well, we've seen what happened to one of today's properties.

Let's find out what happened to the other two.

Let's see if that time and money has been well spent.

Time to head back over the Irish Sea to return to Dunmurry

and what looked like a modern, two-bedroom apartment.

But we all know looks can be deceptive,

so what awaited me behind the front door?

Erm...well...

it turns out a modern, two-bedroom apartment.

That's good, it's double-glazed, it looks like it's got central heating

from the fact there are radiators.

You know, I know my stuff.

It's in nice condition...erm, and...I like the way it's designed.

Lots of light flooding in from the windows.

HE SIGHS

It's great!

# Mmm, I couldn't love you

# Any better

# I love you just the way you are. #

I'm not often lost for words, but this time, I was.

With a guide price of £62,000, it seemed attractive

when other similar properties were selling for around 75,000.

So, I wasn't surprised that an investor like Kieran bought it

for the guide price.

Trouble was, Kieran was the one who was surprised.

I went to the auction to buy something else,

the previous lot, and unfortunately didn't get it.

I then had a moment of weakness and it was the next lot,

and I opened the bidding and nobody else bid.

Well, I've heard about people going into relationships that aren't

ideal, on the rebound, but not buying a house on the rebound.

On the rebound through frustration and being stubborn.

Well, I can see why he was surprised.

It is kind of rare that we have a property on Hammer that

goes on the first bid.

But now it was his, did Kieran have a grand plan to remodel the apartment?

Well, in a word, erm...

No.

I'll just touch up, I think maybe the bathroom. Change the bathroom seat. Aye, I know.

-I can't find much more to do, really.

-So 15 quid, then.

15 quid. That's the budget.

Well, one week later and we're back.

So, queue the music,

get the spangly graphics at the ready...

And wait for it...

Reveal!

CRICKETS CHIRP

Right... Hang on, let's try a different room.

Wait...and reveal!

OK... Let's try the bathroom...

Hm. Hang on. He said he was going to change the loo seat.

Thank you.

The toilet seat is now in place.

It came in within budget.

This is an interesting one, because I have a builder who does

all of my work and has done large jobs, small jobs, every job.

This is the first job I've done myself.

He did volunteer to come and do it, because he said I would make

a mess of it, but I have been able to do the toilet seat myself.

I stuck to the budget...just about.

The toilet seat was listed at £20,

but after a bit of negotiation - the guy thought I was a bit weird -

but I insisted he was only getting £15, so I came in within budget.

# I kneel

# At your throne

# I'm so

# All alone. #

All joking aside, although this appeared a good price, Kieran decided

to bid on this at the last minute, never having seen it,

let along having inspected it or looked at the legal pack.

The only thing he had was the auction catalogue description.

I think back to the moment the hammer dropped...erm,

and a lot of sweat appeared on my forehead.

The next 24 hours wasn't very pleasant

but I tried to research what I'd bought.

Since then, it's all been positive,

but that's through luck rather than anything else.

Kieran went against all his instincts

buying this property, not only did he not do his research,

he usually doesn't even like to buy flats because there are neighbours,

communal repairs and other external factors

he thinks are a hassle.

He's a very experienced property developer

and he knows his rebound buy has turned out well, against the odds.

Having spent £62,015, will he make any money out of this experience?

We asked along two local property experts to

get their opinion on its value.

This is my first time in the property.

My impression of this property is it's in very good order.

I would say it's been a very good buy.

It's in a very desirable location for rental and selling,

and there's very little that needs to be done to it.

This is my second visit to this property in very quick succession.

There hasn't been an awful lot of change. It's a two-bedroom apartment,

what else can you say?

They are fairly standard in their layout,

but the rooms are of generous dimensions

and the target market you'd be looking for, this suits very well.

I think Kieran will be glad to hear that.

He's looking to sell this place on as soon as possible,

but having spent £62,000 and £15,

what could he expect to sell it for?

If we got the instruction to market this property,

we would put it on at £85,000.

We would expect, with the condition of this property,

easily to achieve £86,500.

I would market this property on the market today

at somewhere between £75,000-£80,000.

That would give Kieran a profit

of between £13,000 and £24,500.

That's over £3,500 a day profit, minus the usual taxes and expenses.

Oh, and £15 for a toilet seat, obviously.

But Kieran already has a property portfolio.

What would he expect if he decided to keep and rent the property out?

If this property came on to the open market for a rental valuation,

we would put this at £500 per calendar month.

I would see this property achieving between £500

and £525 per calendar month.

If I was going to rent I would expect £525 per calendar month,

but it's never been my intention to rent.

£525 per calendar month would mean over a 10% yield,

but Kieran is not for shifting on this and still intends selling.

However, if he gets anything like the resale price, he'll have done well.

As the old saying goes, if he fell into the sea,

he'd come out with fish in his pockets.

I just hope Kieran has learned his lesson.

I'll be at three more auctions in the next two or three weeks.

I'll be a lot more methodical.

Auctions are a great place for investors,

as long as you've done your homework.

Earl's Court was the star-studded

location of one of the properties we saw earlier in the show.

We meet Stella and Tana,

who paid half a million pounds for this one-bed flat. Sounds a lot?

Not to Tana, who felt his auction tactics grabbed him a bargain.

Well, I calculated the other person was going to get to 500 because we

were going up in fives, so I think from 490 I jumped to 500, just to...

-Very tactical!

-It doesn't always work, but it did this time.

-Ah!

-Ruthless at the auctions, you are.

-Thank you.

Six months later, we're back with Tana and Stella,

who are joined by their daughter, Julia.

It's very clean, bright, airy, contemporary.

Since we bought the flat, we've basically changed the windows,

the kitchen, the bathroom.

It's just been a total refurbishment.

In the kitchen we've added some extra units,

we've replaced the boiler, we've changed the windows,

as we have done in the rest of the flat,

and we've put new work surfaces and tiles on the floor.

The work surface we chose was a composite,

because it's very hard-wearing.

The original metal windows were not ideal, however, having spoken to the

property management agency for the building, they found they had

to fit like-for-like replacements, as stated in the property's lease.

Still, it's a top refurbishment of a top-floor flat

and I do love the bathroom in particular - completely modernised.

But no huge layout changes to this flat...

Or were there?

The entrance had a doorway into the main sitting room

and it was very dark in the entrance hall,

so we just took away the door and widened that doorway.

And we've added in some built-in cupboards,

because cupboard space is always a premium in a small flat.

That's a very clever use of the space, and I'm glad they've

kept the nice proportions, a real bonus in central London.

Talking of which, did that location cause any issues with the renovation?

The biggest problem with the building is obviously

being in central London.

So, you know, getting rid of all the rubbish...

and it was a challenge.

Also, as part of our licence we had to work restricted hours,

-which was also a challenge.

-A challenge they overcame, clearly.

Or, did it harm the timescale?

Yes, we thought the work would take about 10-12 weeks...

Actually, I think we were almost spot on, but we didn't realise that

getting the licence to carry out these works was going to take

a long time. Actually, it did take nearly as much time,

so it's been nearly 8-10 weeks to actually get the licence.

Things like parking for your workmen is something you have to

take into account when planning a renovation project.

As is the fact working hours may be restricted to give neighbours

peace, especially in a block of flats.

So, do factor it into your schedule and your budget.

We initially thought we would be spending a maximum of 25,000,

but we actually ended up spending 35,000.

An over-spend here of £10,000 is a lot.

But I sense that local property experts will be impressed.

This is my first time in this property,

so I haven't seen it in its previous condition.

But I must say it looks fabulous now.

Negativity-wise, I would say it's a little bit on the noisy side.

In the evening it's pretty quiet around here,

so it's just during the day.

This is my first time inside this property and I think the work

they've carried out is exceptional.

They've done it to an extremely high standard, I'm very impressed indeed.

Two very happy agents.

Having bought the flat 500,000 and spent £35,000 on it,

they have a total investment of 535,000.

They originally thought they would hold on to the flat

and rent it out, so how much could they rent it for?

I would expect the property to achieve £2,225 per calendar month

if we were renting it out.

If the owner would put this property on the market for lettings,

I would expect him to achieve a price of

£2,000 per calendar month.

Tana and Stella had planned to rent, but they would get just under

a 5% yield from that higher value of £2,225 per calendar month.

What do they reckon about those figures?

I think they are OK, but they don't represent a very high yield.

I think we would aim to sell.

Ah, a change of plan.

And with a buoyant London market, it could be a good choice.

If the property were placed onto the market today,

I would envisage easily achieving in excess of 700,000

and suggest a marketing price £725,000.

This property would achieve a sales price of around £700,000.

At an average evaluation of 700,000,

Tana and Stella could bag a £165,000 pre-tax profit.

See what I mean about a good choice?

For us, to consider renting the place for a while,

I think the rent would need to be more than 2,500.

So I think with this figure, we would definitely look to sell.

I think that could be a good decision for fast profit.

But there's one key person we've not heard from,

and that's daughter Julia.

Mum and dad and great at the property game. Will she join them one day?

No. I want to be a fashion designer when I'm older.

Well, we hope you enjoyed that

and perhaps picked up some useful information along the way.

-We look forward to seeing you next time on Homes Under The Hammer.

-Goodbye for now.

-Bye.