Episode 78 Homes Under the Hammer

Hello, and welcome to the show.

Now, the property market is really fast-moving.

And it's not always easy to know when to jump in.

So if you ARE looking to take that leap, well,

where is a good place to start?

The one place could be your local property auction.

What is not always easy to see,

is if a property is a potential moneymaker.

No, the only way to really know is to do your research

and test the market.

Let's see what our bidders on today's programme bought.

In Shropshire,

there's a whole lot of work to be done at this former village shop.

But! WHAT an opportunity!

Opportunity knocks at this pub in Margate, too. I'll drink to that!

Or maybe not.

Somebody's even left an old pint of beer.

But getting plastered, ha-ha,

is exactly what's needed at this Welsh maisonette.

Right. That's not good. Ahem! I didn't expect it to do that.

All of 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.

Yours, Madam, well done.

This is the historic village of Hodnet,

surrounded by the beautiful Shropshire countryside.

It's literally not much more than two streets,

but you've got the shops and conveniences of Shrewsbury

half an hour away, and Market Drayton 15 minutes away.

The property I'm here to see was guided at £155,000-plus,

and there's more to it than meets the eye.

Well, up for auction was one of the local village shops,

and I have to say, this auction lot is a real doozy,

because not only do you get the old shop,

you get the cash registers and some coach houses, as well.

This is the main shop front. It, in itself, is huge.

What else is in store? Ha-ha(!)

-Heh. Wow.

-HE CHUCKLES

That's pretty impressive.

But, before I show you that, look at this.

This is obviously some kind of doorway through to

the residential bit that's attached to the property.

We'll explore that in a minute. But look at the size of this room.

This is the original shop.

It must've been absolutely huge in its day

and what an amazing space you've got to play with here.

A few things you'll need to deal with,

my guess is that this is a structural support,

so that can't necessarily go, but make a bit of a feature of that.

But the amount of space you've got to play with here,

you've got more rooms at the back, a door out to a little court yard.

Look at the height of the ceilings. Um...

Look at the floor.

Look at the amount of work you're going to need to do.

But! WHAT an opportunity!

To the back of the shop lie an office,

a toilet and underneath that, there's even a cellar.

However, there's still plenty more to discover.

What about the attached residence?

So, from the shop through this little opening here,

into this, which is your sort of residential part of the whole thing.

You've got the living room at the front there,

this little corridor and then towards the back here,

a little storage area there. Stairs up to your bedrooms,

living room and a kitchen.

I mean, in its own right this is worthy of attention.

It needs a lot of work doing to it,

but it's just part of this whole amazing property.

Spacious as it is, everything's a bit run down.

And, as much as I love these old fireplaces,

well, things have to change.

The accommodation upstairs is equally generous.

There are four double bedrooms together with a family bathroom.

Directly above the shop, there are some interesting

reminders that this property used to be a flour mill.

And above that, it's the attic

look at this attic room! Oh! What a find.

It stretches all the way that way, through there

it's a bit dark and dingy.

But all the way over this way, basically,

it's the full width of this part of the property.

And look at the height.

These incredible roof beams and everything. What a wonderful space.

I have to say, it looks like somebody's living here already.

Evidence of some kind of beetle in there, woodworm.

That needs to be treated, for sure.

You get an impression, again,

of the amount of work this needs to sort this place out.

But one bit of good news,

if you look at here underneath the roof, this is breathable membrane.

It's like underfelt, if you like, but a breathable variety.

That is fairly modern. So the good news is,

it looks like at least the roof has been replaced relatively recently.

And in terms of a space, just...

What a fantastic capping, if you like, literally, to this property.

MUSIC: Better Days are Coming by Jimmy Cliff

Behind the main building, there is plenty of garden space

and a former coach house. Where would you begin?

Well, as you might expect, the property is in a conservation area,

which means being very careful about what you decide to do here.

But the good news is that the £155,000-plus guide price

doesn't just include all these buildings.

It also includes planning permission to build three residential units.

Actually, this is really interesting. Take a look.

These are the plans that have been drawn up and passed

for creating three individual dwellings on this site.

Here's the existing.

You've got the residences to one side, you've got the shop unit here.

And then, to the right-hand side here, the coach house.

Now, these are the plans in terms of what it will become.

That pretty much stays the same.

You've then got the shop converted into another property here, and on

the right-hand side, the coach house converted into a third property.

All really sizeable properties and really making good use of the space.

Now, it's not going to be a simple, conversion, but it's one

that I think can generate quite a lot of cash in the end.

That's what I think.

Does a local property expert share my optimism for this project?

MUSIC CONTINUES

It's a decent-sized property, with plenty of potential,

both to convert into multiple units or one single dwelling.

And if the plans for three dwellings came to fruition,

how much would these properties sell for?

As a combined total for the three individual dwellings,

you'd be looking at in the region of £475,000.

Well, what an incredible opportunity for someone this is.

A huge building, it's true.

But, by converting it into those three dwellings,

potential profit to be made. But not after quite a lot of work.

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

Lot number six. Picturesque village location. We'll say it's 140.

135, then. 135 miss? Thank you.

135, opening bid. £135,000.

140 can I say now. Yes, 140. That's 145. OK, in ones if it helps.

141, 140... 142. 143, 144, 145, 146.

Back in, 147, 148, 149.

At £149,000, then.

Are we all done?

You bid at 150, at 150. Another one?

The bid's seated, no mistakes, at £150,000.

Be quick if you're coming back in, if not, I'm selling it at 150.

At £150,000 for the first time...

At £150,000 for the second time...

Third and final time at £150,000...

BANGS HAMMER You bought it, sir, well done.

MUSIC: Go West by The Village People

That final bid of £150,000 was made by Sean and Colleen,

a retired couple from Reading who have decided to head to the

West Midlands in order to fulfil a lifelong ambition.

MUSIC CONTINUES

-Colleen, Sean, lovely to meet you both.

-And you.

-Hi.

-Er, phew.

-Small house then, really?

-Just a tad.

-MARTIN LAUGHS

-Tell me what you wanted to buy it?

-We've always wanted a big house, haven't we? Always.

-Yeah.

We wanted a blank canvas to put our own stamp on it. And here we are.

-Yeah.

-How did you come about it?

Oh, just looking through the auction.

Colleen found it on the internet.

OK, so from the little square box on the internet and the details,

what was it that made you think, "Yeah, this sounds like our...

"One for us?"

It didn't hit me at first, didn't think anything of it.

But, I must admit, it was Sean.

What did you spot?

Er...its potential. It's currently got planning permission for three properties,

but as soon as I walked in and looked at the shop area, I thought,

"Open-plan living, this is what I want."

-We'd like to make it as one property.

-One property!

-Yeah.

-How many people will be living here?

-Just us two rattling around!

ALL LAUGH

-Right.

-And my two cats.

-Oh, of course.

Well, that's all right, then. They need a lot of room.

Colleen, you may love your cats dearly,

but giving them this much space to play...?

MUSIC: Lovecats by The Cure

Having taken the grand tour already,

my mind is reeling with the possibilities of turning this

into one huge residence.

Although there will be plenty of room, ha-ha,

to swing a cat.

So, how are you going to divide it up in terms of living space?

Ground floor, we're looking at putting...

Open-plan, with large lounge, dining room, open-plan kitchen,

and then a formal snug, or study downstairs, possibly.

And then, upstairs, knock a few of the rooms together...

-To make large bedrooms.

-Yeah.

Couple of en suites, master bedroom with en suite, walk-in wardrobe.

-And we haven't got to the attic yet.

-No!

-Well, the attic blew me away. I mean...

-It's beautiful, isn't it?

I love it! So what are you going to do with the attic?

I want it very old-fashioned, lots of nooks and crannies.

Colleen and Sean's next step

is to work with an architect to draw up plans.

They are hoping to get the work done in nine months to a year,

but that will depend on whether those plans are approved.

What if the planners say, "No, that's not suitable for the village,

"to have one massive great property?"

SEAN SIGHS

-We will be...

-We'll be very upset, obviously.

-We will be.

Maybe we would build two,

keep one, sell one.

-We've got options available.

-Lots of options.

-So who's going to be doing the work?

-Er...mainly me.

I've got some experience, I've renovated a couple of properties,

I've dabbled with plastering, brick laying, I'm a qualified electrician.

-Oh, that'll be helpful, then.

-Yeah.

So, the big question, of course,

is how much have you set aside to do the work?

My initial budget was between 50 to 80,

with a £20,000 contingency on top of that.

But...at the moment it's very difficult to try and judge

how much we're going to need to spend,

-because we don't have the plans.

-Right.

-I was going to say, it sounds a bit tight to me, that.

-I hope it isn't!

THEY LAUGH

Well, listen, I can't wait to see how you get on. I do wish you all the best.

-Few hurdles to go through, but...

-Certainly.

-I hope you achieve your dream, here.

-Thank you.

-Can't wait to see how you get on.

-Thank you.

-Well done to you both.

-Thank you.

Well, what a turn up for the books.

I so hope that Colleen and Sean

can realise their dreams with this property.

-What do you reckon?

-HE LAUGHS

Budget? I don't think that's high enough.

Will the planners really go for one property, here?

50-50, in my eyes.

You just hope it's a success for them.

There's only one way you can find out if it turns out all right.

That's by tuning in, later in the show.

From Shropshire, we're hopping over the border now,

to a historic little village in the Rhondda Valley.

I'm in the former mining community of Ferndale, in South Wales.

This was one of the first villages

to be heavily industrialised in the 1890s

but nowadays, it's better known for its beautiful surroundings,

which is popular with mountain bikers,

and also as the location for the popular television series Stella,

along with nearby Wattstown.

Well, on the north side of Ferndale is the property I'm here to see.

Three-bedroomed maisonette, has a guide price of £18,000+.

Sounds like a lot of property for the money to me.

There's also quite a lot of stairs

down to the entrance of the maisonette,

but the village does cling to the side of the valley somewhat.

So, lower ground floor, then.

So, one of the first things we are going to be looking out for is...

-HE COUGHS

-damp.

-HE LAUGHS

-You don't have to go very far.

All that plasterwork there is blown.

PLASTER CRACKS CLATTERS TO FLOOR

Right, that's not good.

But, erm, entrance area... I didn't expect it to do that!

..entrance area here, stairs up to your bedrooms, it's a maisonette.

We'll explore down there in a minute.

But through into a fairly light...

surprisingly, given the location of the flat,

..front room area.

But wow!

HE LAUGHS

The damp in the hallway was subtle.

PLASTER RUSTLES

The damp in the lounge, here...

..is like a textbook, isn't it? Gosh!

And it worries me a bit that is a very, very big wall.

It's going to take a professional company to sort that out.

Injection damp proofing, perhaps, tanking...

The worry is always has it gone down into the floorboards,

and caused all sorts of problems that would be very expensive to fix.

But, continuing through the flat, you know,

I can see through that,

to just the overall feeling of this property,

which is really, really pleasant, and massive!

You've got that room there, then through into this kitchen.

I mean, it's not brilliant, but it's not bad.

And more damp there, surprise, surprise. A little toilet, there.

Lots of space,

and that's only this floor!

And, given it's a maisonette,

there's another one!

Upstairs, at street level,

you've got the bathroom, and three bedrooms.

The first is a pretty good size.

The second is a handy box room.

And the third has a cracking view.

And that's not all.

Well, at the back of the property, you really get a sense

of just how tall it is. Look at that!

I mean, obviously, our property doesn't go up all the way,

but still, look at the building.

The bonus, of course, for this particular maisonette,

is that you get this garden, and also a bit of storage.

And, best of all for me...

..a fantastic view.

Ah, the view!

Does it for me every time.

Sort out the damp issues here, and zhoosh it up a bit,

and I reckon this maisonette's potentially a great little earner.

And, with a guide price of 18,000 quid, ha! What's not to like?

Let's see if a local estate agent

is in agreement.

Most of the building work has been done,

there's issues to the front with the damp,

and, walking into the property, it's not that attractive,

but once you're in here, it's large.

It sure is large, but once done up,

could the purchaser see a large return on the resale market?

If I was going to sell this property on the open market,

I'd probably put it up for £35,000.

Tempting. But what about the rental market?

On the rental market,

I'm sure you could get easily £350 per calendar month, possibly 400.

So, a few issues with damp to sort out,

but overall, I think this place is a real find.

A lot of accommodation for that guide price.

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

So, then. Lot number six.

Large three-bedroomed maisonette,

good... well, in fact,

a very good investment property.

Who will start me at 18?

18. Make it 15 if you like, then.

Thank you, thank you very much, at 15. 15 there.

And 16 now, can I see?

At 15 here. 16, I'm looking for.

16 behind, thank you. 16. 17. 18. 19.

And 20? 20. 21. 22? 22. 23? 23. 24?

24, no. 23, I've got. Are you sure?

At 23 it is, then, seated. Against you now, standing.

At 23,000, seated here, then, for the first time.

At 23,000, and the second time...

Third and last time, at £23,000...

BANG Yours, madam, well done.

And, raising her card to buy this one, for £23,000, was Sharon.

Sharon is a health and safety manager,

who dabbles in property development in her spare time.

And she also has another string to her bow...

But more of that later.

-Sharon, great to meet you.

-Hi.

-Congratulations.

Great flat, well...maisonette. I mean, it's amazing, isn't it?

-Yes, I think so. Well, I hadn't seen it before I bought it.

-What?!

-I did read a legal pack.

-Oh.

Why didn't you see it?

Because I wasn't going there to buy this property,

I was going to buy a different one.

But I didn't buy that one, I bought this one instead.

-Right, so what happened with the other one?

-Erm...

It was a dream, not a reality.

It was a tower on a beach.

A tower on a beach?!

Yeah. A watchtower... MARTIN GASPS

..which was... I really, really wanted it.

-But I didn't...

-Oh.

What, it went over your budget, did it?

No, the reality kicked in, and there was nothing you could do with it.

It would be a beautiful beach house / hut,

but you could never live in it, or do anything with it, so...

-So, you didn't get the beach tower.

-No.

-You ended up with a really nice flat though.

-Yeah.

I plan to... At the moment, I work full-time,

and part-time, I train mothers baby first aid.

-Baby first aid?

-Yes, yeah.

So the plan is that I continue growing the baby first aid,

-and go into property development and management.

-Right.

Just to concentrate on the two.

-The baby first aid, what's that all about?

-Yeah.

Parents, they leave the hospital with this little bundle of joy,

and it's terrifying.

You know, if they cough, or they choke,

and they really don't know what to do...

But, just by having the first aid training,

it gives you the confidence and the knowledge

that if something does go wrong,

you're not going to be panicking, and you'll know what to do.

Sharon's going to be pretty busy,

juggling two jobs and the property development.

And, although she did break the Homes Under The Hammer Golden Rule

by not viewing the property before the auction,

it looks as if she's done well, here.

So, having not seen it before you bought it,

what did you think when you came in the door?

Well, I was surprised. Pleasantly surprised.

I thought it was going to be in a lot worse condition,

-considering the price...

-Yeah.

..that I paid for it, so yes, it was.

There's lots of damp, and it needs a little bit of work,

but at least it's got walls and ceilings, which is always a bonus.

THEY LAUGH

You had set your expectations fairly low!

-So, this is your first property venture, is it?

-Second.

-OK.

-Yeah.

-I've done four or five, for other people.

-Oh!

What's the plan for it, then? Is it to do it up and sell it on, or...

-Rent it out?

-Rent it out, yeah.

Yeah, and then, just do the maintenance myself, then,

when it's rented, yeah.

So, initially, it needs the central heating needs changing,

cos it's got the old back boiler in.

Damp course needs doing, and the rendering outside is not right,

-so it needs to be hacked off.

-OK.

And then the kitchen and bathroom, plans for that?

Probably change those as well, yeah.

Yeah, I mean, if you start off with a clean slate,

you know what's wrong and what's not wrong.

If you just patch it up, that's when you have problems, I think.

So, if you go in, so you know it's all done right, you know,

you're not going to have problems six months down the road, so...

Is the plan to expand the portfolio?

-I've got three grandchildren, so I need three houses.

-Right.

And they're going to have them as a sort of investment, or...?

I'm going to keep them for them, and then, when they go to university,

or wherever, and they need the money then,

then they can be sold to fund towards their education.

-Oh, great. Do they know about this yet?

-No.

THEY LAUGH

-Well, they will now. How old are they?

-3, 14, and 13.

-Right.

What a nice thing to do for them. And what about you?

-Do you enjoy doing this?

-I love it. I love it.

I do all of the work myself, except electrics and gas.

-I do the kitchens, the bathrooms, the...

-What, fitting those?

-Yeah.

And, much experience in that field, I mean, where does that come from?

I've always done it.

I've always done it since the day I got married,

I've always done the tiling and the decorating so...

-And you still manage to have nice nails!?

-Yes!

THEY LAUGH

That's a good trick, if you can do it!

So when some of the other tradesmen turn up,

are they surprised to find you sort of smashing furniture and taking kitchens out?

Yes. Yeah. I'll tell you a story.

When I moved into the house I'm in now,

I built a shed, out in the garden,

and I was out putting the roof on it, and a lady come down the road,

and she tapped my ladder, and I looked down.

She said, "You are causing us real problems up here."

And I said, "I don't even know you. How can I do that?"

She said, "Our husbands want to know why we don't do what you do."

THEY LAUGH

..which was quite amusing.

THEY LAUGH

Sounds like Sharon has what it takes to make something of this place.

And, more or less, single-handedly, to boot.

-So what's the budget?

-Between 10 and 15.

-OK.

-And the timescale?

-No longer than six months.

I'd like to get it done within three, but you don't know,

it's getting tradesmen in, isn't it,

to do the central heating and things, but...

But you'll be beavering away, evenings and weekends?

-Beavering, yes.

-Wow.

-Yes.

-Well, listen, congratulations. Lovely to meet you.

-Thank you.

-Good luck with it, and I look forward to seeing how you get on.

-Thank you.

Well, Sharon might not match the profile

of your average property developer,

but she's got all the enthusiasm and skills she's going to need

to sort this place out.

How will she get on? I can't wait to see.

You can find out later in the show.

Coming up, this former pub in Margate

is desperate for a new lease of life.

It feels incredibly sad

to see an old pub and restaurant left like this.

Back in Wales, Sharon discovers the perils

of being a little too hands-on.

I did fall off a windowsill, resulting in three broken ribs.

Welcome back to the tiny village of Hodnet in Shropshire,

and this massive property.

At an auction guide price of £155,000 was this shop space...

..this residential space...

..this attic, complete with these beautiful wooden beams...

..and even these coach houses.

This former flour mill needed a lot of work,

but with planning permission approved to develop it

into three residential houses,

any developer brave enough could really dream big.

MUSIC: Big Dreams In A Small Town by Restless Heart

And the couple brave enough to do just that

were husband and wife Sean and Colleen,

who bought the property for 150,000.

But working to the approved plans weren't for them. Oh, no!

These rebels wanted more.

-Are you just going to stick to the original plans, and three properties?

-No.

-No?

-We'd like to make it as one property.

-One property?!

-Yeah.

-How many people will be living here?

-Just us two rattling around.

HE LAUGHS

MUSIC: Rebel Yell by Billy Idol

One house! Ha!

They had a budget of £50-£80,000,

and trained electrician Sean was willing to take on most of the work,

but this was a MAMMOTH task.

Well, three years later, and we've returned.

And there's certainly big changes on the outside.

Has it become their dream home on the inside?

Oh-ho-ho...

Oh, yes.

We've got six bedrooms, five bathrooms,

-a utility room, study...

-"Gym".

-..gym!

THEY LAUGH

Yes, they've still to develop the coach houses,

but Colleen and Sean somehow managed to find money

to sneak in a sauna into the... Ahem. .."gym."

And good for them.

They've turned this into the dream property they'd always hoped for.

But getting the correct planning permission wasn't without its problems.

The first year was spent primarily doing...

Making it look worse, stripping it back.

Yes. Destroying the property! And preliminaries.

Planning permission, speaking to conservation.

And finding out this couldn't happen but this could, so...

That was the first year, really.

We didn't know whether we would get consent to keep it as one dwelling

or whether we would have to follow the original plans, which would make it into multiple properties.

So at that stage we decided we would just do the structural

work in the loft and then work our way down.

'By working closely with the council's conservation officer,

'their plans were granted, however, and work could begin.

'And Sean got stuck in as promised.'

I did as much of the physical work as I possibly could

and brought in various contractors as and when we needed them.

We were very fortunate. We found a local builder that was very good.

Some of the contractors are now friends, which is very nice.

Actually, the guy that had been Mr odd job

and chippy, he's with my daughter now.

-So we did a bit of matchmaking as well.

-Yes.

'Well, it appears this house comes with all mod cons.

'Extra insulation, multimedia ports, LED light bulbs

'and erm... Matchmaking services!'

# Stupid Cupid, stop picking on me. #

'But it's not just Sean that has been working.

'Colleen has been hard at work too.'

Most of the soft furnishings throughout the house,

I have done myself.

Like my four-poster bed, I did all the drapes.

The swags and tails in the rooms.

I have done some chair covering.

The brick work, I scrubbed down and cleaned and varnished.

A lot of the woodwork like the four-poster, renovating it.

The staircase.

That was weeks.

-But, yes, I have...

-You have helped out.

Helped out. Thank you, Sean!

-I've helped out.

-Yes, you did your bit.

'Careful, Sean, or you will be sleeping in the bathroom tonight.

'So much love has clearly gone into this

'but do they have a favourite room?'

I love my pink room for my granddaughters.

My husband doesn't like the pink room. But I love it.

Mine is the lounge and kitchen.

I love being in here in the evening and having the fire on.

It's a very friendly, sociable area, which is what we wanted.

'Sean and Colleen have really made this old place their own,

'but how has it gone sticking to their £80,000 budget?

'Well, in a word...'

Terribly!

I think we have come in around about 136 or 138.

More like 150,000.

'That is £150,000 to buy the property

'and a further 150,000 and three years hard work for the development.

'Cat is an optional extra.

'It's obvious though that Sean and Colleen could not be happier.

'But we have asked along two local property experts

to see what they make of it.

Very, very impressed. A wonderful property.

Far, far larger than what I expected. They've done a lovely job.

What people are looking for more and more nowadays

is open plan living space.

I think they have got it right.

It's absolutely faultless throughout. A beautiful home.

If we were to place this property on the market in today's climate,

we would look at a figure of around about £375,000.

I believe in the current market this property would sell

anywhere between £375,000 and £400,000.

'Having spent a total of £300,000, that higher value would give

'Sean and Colleen a profit of £100,000,

'minus the usual taxes and expenses.'

It's nice to know we have made a profit

but we definitely didn't do it for that. Definitely not.

Before we got married,

I used to draw pictures of buildings that we may one day live in.

-That is partly why you took early retirement, wasn't it?

-Yes.

-To be able to fulfil your dream.

-Yes.

'Well, if you thought Sean and Colleen took on a huge project,

'wait until you see this one in Margate that I came to see back in 2010

'when the town was going through a process of regeneration.

'The property went to auction guided at £100,000 to £110,000.

'And it had the potential to give the purchaser a few sleepless nights.'

The property I am here to see is at the end of Margate High Street

and very close to the harbour and also, once built, the new Turner Gallery.

Now, it was a former pub this

and as you can see it is pretty derelict, it is run down.

But it is one of the oldest buildings in the area

and not so surprisingly, it is Grade Two Listed.

I'm going to go inside and have a look.

Wow! Do you know what?

When you walk into a place like this that is closed up,

got no life in it, it feels incredibly sad

to see an old derelict pub and restaurant just left like this.

You can see the restaurant was obviously over here.

Along here, the bar area.

But it really feels dead.

There are bits and pieces left over from fun times.

I think somebody has even left an old pint of beer.

It looks pretty disgusting.

This place is going to take an awful lot of money

and an awful lot of work to get it up and running again.

But the day those boards come off the windows

and the light floods in, this place will be alive again.

And I for one would love to be here on that day.

'Yep, the bar has seen better days but the space is enormous.

'And as if that wasn't enough, through the back of the bar

'there's a large kitchen which needs new appliances and a bit of a scrub.

'And under the bar there's a real surprise.

'A huge cellar that runs the whole length of the ground floor

'and with all the kit you need to pour your first pint in here.

'Upstairs, there is a long function suite,

'complete with bar and two sets of toilets

'and you might have to spend a penny or two bringing them up to standard!

'But that doesn't compare to the cost of issues at the end of the corridor.

'This room will have to be made safe and a new ceiling put in.'

'And it keeps going.

'I am off exploring on the top floor, where there is a flat

'perfect for a pub manager, which sits across the building next door.'

'There is plenty of space, a small bathroom, but sadly there's

'lots of plastering and structural work needed up here also.

'I am going to head back downstairs

'before I get completely lost in here!'

'On the landing, there is a small office too.'

'All this for a guide price of 100 to 110,000 is pretty amazing.

'But there is a problem.

'The Grade Two listing affects inside and out so you can't put up

'a burglar alarm or a satellite dish without permission,

'never mind swinging a sledgehammer in here.

'So it might be appealing to convert this into flats, but even if you

'do get around the problem of the listing, there is another issue.'

Well, this property is located pretty much in a business, not residential area.

The local planning office may have issues with

the lack of allocated parking for residents of any flats built here.

Added to that, this old pub is right next to the Old Cottage car park,

which is due to become one of the main car parking areas

of the visitors of the new Turner Gallery.

So everyone who parks here will be walking right past here.

That sort of passing trade is heaven for a commercial business,

so I think keeping this pub or restaurant, which will serve

the needs of visiting tourists, is definitely the way to go.

'Clearly, there is a lot of potential for a new business venture.

'But just how tricky can this Grade Two listing prove to be?

A local estate agent can explain.

You do have to get quite serious permissions

but the other benefit of it being Grade Two listed

is there will be grants available to bring it back

to its original condition.

Many years ago, this was quite a thriving restaurant and pub.

I have actually had a few nights here myself, which has been quite good fun.

Also, it was always very good for Sunday lunch.

I think this would make an ideal art gallery,

perhaps blended with an upmarket coffee shop or restaurant.

'All good ideas, but what value does it have as a commercial premises?

'And bear in mind, the agent thinks your development budget

'might be in the region of £60,000.'

If it was brought back to its original condition

and refurbished, I think you could achieve in the region of £160,000.

If this property was refurbished and made into, for example,

a bar or restaurant, you could achieve

a sort of rental of around about 12 to 15,000 per annum.

Whoever takes on this property is taking on a project and a half.

Not only is it a major renovation,

but you've got that Grade Two listing to consider.

That really could slow up restoration work.

But it's in a fantastic spot, it's close to the new Turner Gallery and it's on the high street.

So who fancied becoming the landlord of the Old Cottage pub?

Let's find out and head to auction.

It's close to the harbour, loads of accommodation over four floors,

stunning looking building, lots of potential there.

Where are you going to bid me?

Start where? 100-110?

Coming in at 100,000 anywhere?

£100,000 - you know it's worth it.

100,000 can I see?

Give me 90 then.

90 to get me on the way. 85 I'll take

and it's a lot of building for £85,000. Real good spec.

£85,000 bid I've got - on the right at the back.

85,000 I've got.

90 I'm looking for now.

£90,000 do I see?

At £85,000 only and 90 I want, worth every penny of it.

Are we all done at £85,000?

With you, sir, at 85.

90 I'm looking for.

£90,000 bid I've got.

92 may I say now? 92 may I say?

At 92?

I've got 90, it's in the room. 92 I'm looking for.

I've got £90,000 on my left and I will sell for the first time...

£90,000, you're going to miss it for the second time.

Third and final time at £90,000...

Bought yourself a pub, sir.

At our auction, romantics who grabbed four fantastic floors

for 90,000 - £10,000 less than the lower guide price -

are David and his partner, Stephanie.

David is retired, having been in the fire service,

while Stephanie is an artist.

So what persuaded them to purchase this pub?

David, how did you find this place?

Well, purely by chance, really.

I was looking to enter my portfolio and I was going through,

as you do, trawling through all the different lot numbers

available for all the different companies

very, very late one night- two or three o' clock in the morning -

and the computer kind of found it for me, really.

One minute it wouldn't turn off and the next minute it was on the page.

So I started to read it. It was quite fluky.

So you hadn't thought, "Oh, that looks good,

-I'll have a little look at that." It found you.

-Yeah, really.

I mean, I was looking for residential property

and ended up with a pub with...opportunities.

So you weren't looking for a pub?

-Both of you didn't think about starting a business?

-No.

No.

-Nothing like that.

-David...not long after we first met...

he...sort of...

We were both trying to figure out something we could do together.

And this kind of just happened, didn't it?

Yes, it was a gift, really, in several ways.

Is that how you feel?

That you've got it for an amazing price, it found you?

I still can't believe nobody else was interested.

Either I'm raving mad

or there's a lot of people made a serious mistake.

'Well, I don't think David's mad,

'but they've certainly taken on a very big project.

'And I'm intrigued by their plans.

'Like I said, Stephanie is an artist

'and I think their vision does have a creative twist.'

It's not going to be a pub,

it's not going to be a wine bar,

it's not going to be a bistro or a cafe.

It's kind of, the vision we've got for it, is a bit of all of that.

And particularly, from an artistic...theme,

you know, with what we've got planned for the cellar as it exists at the moment,

and upstairs, we'd like to think they'll all, sort of, combine

and it's just going to turn into, I hope,

a really nice meeting place

and a really unusual venue

for people to share their skills and experiences.

So you've brought some plans along with you today, haven't you?

-Yes, I did them.

-You did these?

-So you've experience of drawing plans up?

-Well, I now do!

-Um...

-Does being an artist mean you can put your hand to anything?

-Yes, I can!

-David, talk me through them.

Yeah, this is the ground floor.

As you see, the existing bar's right over here

and takes up a huge amount of space on the ground floor.

This is a nice free-form-shape bar here,

and the plan is to move the access and egress

from behind the bar at the moment to an accommodation staircase over here.

And then, as we go downstairs...

..we're going to have that opened up, just a few chairs,

maybe a couple of tables and chairs,

in order for people to go down with a glass of alcohol, a beverage,

and just enjoy what could actually lean much more

towards gallery space.

So...artists can display their works down there,

use the area down there for their own personal display.

And, of course, the artists -

and this is where we come to the first floor -

they will be producing their work, hopefully, up there

in one of seven different studios we're planning on developing.

'The first floor that is currently the function suite

'will become seven artist studios.

'So that's a basement art gallery, a ground-floor bar,

'the artist studios on the first floor AND

'they want to renovate the top-floor flat.

'So are this ambitious pair done yet?

'Not by a long shot!'

# Fame

# Fame and ambition... #

There's a...what was going to just be a manager's flat upstairs

and we've had an extraordinary twist of good fortune AGAIN

in that one of the council officers themselves

hinted quite strongly -

would I be prepared in the development

to put the roof back that should be there?

Which came as a bit of a shock, because we've got a flat roof

and I didn't think it was in keeping with the rest of the street.

What he's saying is would we be prepared to put the pitched roof back,

the barn-style roof that should be there,

if you look at the ones next door. It's going to be a flat.

-So you are planning on adding a flat above this...

-Yes.

Yes, it means we can have a flat on top of the flat that we've got

and they don't have to be necessarily connected to the rest of the building.

The flats can be entirely separate from the rest of the building,

doesn't have to be occupied by the manager,

they can be a totally different, separate two units.

And what's your budget then?

We haven't, to be honest, set a figure.

I know that sounds reckless...

It's reckless and I want to hear a figure!

'I did eventually get David to go on the record

'saying that the budget would be £100,000.

'Stephanie thinks that the project will take a year in total.

'But, with several commercial areas,

'have they worked out when they'll be in profit?'

It sounds a bit ridiculous,

but the fact is that because of what we paid for it

and the studio floor level when we create those

and let them out on a monthly basis,

that will pay for the entire building.

And the daft thing is that, really,

we only have to sell a sandwich in the commercial areas

and we're in profit.

So one sandwich a day and you're in profit?

Sounds flippant, but that's pretty much it, you know.

I'm really excited.

Can't wait to hear all the news. Good luck, both of you.

-It's been lovely to meet you, Steph,

-You, too.

-Well done.

-And you, David, thank you.

-Nice to meet you.

-Thank you.

I think David and Stephanie have got fantastic plans for this old pub.

I think I'm as excited as they are.

And with the Turner Gallery opening up,

well, they could really be on to a winner with their

art gallery-cum-restaurant-cum-bar concept.

And, if David gets permission for that extra flat on the roof,

this could be one profitable venture.

Find out what happens later on in the programme.

Well, one down, two to go. We've seen how one developer did.

What about the other two? How did they get on?

Hm-mm. Are they struggling or are they flushed with success?

Let's see how they got on.

Back now to Ferndale in South Wales

and this three-bed maisonette

that Sharon bought at auction for £23,000.

Sharon was undeterred by some pretty nasty damp

on the lower-ground-floor

and was all set to totally revamp the place -

more or less single-handedly.

I do all of the work myself except electrics and gas.

I do the kitchens, the bathrooms...

-What fitting those?

-Yes.

And much experience in that field? I mean, where does that come from?

I've always done it, I've always done it since the day I got married.

I've always done the tiling and the decorating, so...yes.

-And you still manage to have nice nails.

-Yes.

that's a good trick, if you can do it.

Sharon gave herself a budget of £10,000- £15,000

and a six-month timescale.

Almost nine months after our first visit, we are back

to see how Sharon and those nails got on.

MUSIC: Manicure by Lady Gaga

# I'm gonna be manicured

# You wanna be manicured

# Ma-ma-ma-manicure

# She wanna be MANICURED

# Salon's enough for her

# Not to feel so insecure

# Ma-ma-ma-manicure

# She wanna be take care'n of! #

It all looks highly polished

and not a nasty damp patch anywhere to be seen.

There's a new central heating system,

it's been rewired,

the damp has been sorted,

we took all the render off the outside to the house.

All the radiators were leaking

so all the wood on this floor had to be changed.

There's a new bathroom, new kitchen,

front door, the back door have been replaced,

any windows that weren't double-glazed have been replaced.

But has Sharon been true to her word

and done the lion's share of the work herself?

I took the render off the front of the house,

I painted the front of the house as well as right through both floors.

I tiled, done the tiling in the kitchen and the bathroom,

the laying of the laminate flooring, the kitchen...

most of the bathroom.

I don't do the plumbing,

I don't do the electrics, so we had an electrician in to do that.

I've built the gates and anything else in between.

And what has that done for her nails?

Nails suffered the last week, I'm afraid.

They've been fine up to now,

but not to worry, they soon grow back!

OK, but a little birdie tells me

that Sharon may have broken more than a couple of nails

doing the work.

I did fall off a windowsill,

resulting in three broken ribs,

a broken arm, a broken wrist and a dislocated shoulder.

It did hold the work up for eight weeks,

while I was in a plaster cast.

And that's why we were a little bit longer finishing

than I'd liked to have been.

Ouch!

Sharon's tumble has meant that it's taken the best part of nine months

to complete the work.

But what's become of her £10,000-£15,000 budget?

It came in at about 9,600.

I did manage to do all the jobs that I wanted to do.

And doing most of the work yourself,

you do find that you save 30% of your costs anyway.

And I am quite hands-on, so I did make a 30% saving on that budget.

So, yes, it turned out well for me.

That's very impressive.

And it's not as if Sharon has cut corners on this one, either.

The kitchen wasn't bad, but it wasn't good, either.

It was just OK.

When I'm doing properties I always think,

would I really want to cook in this kitchen?

And that's the basis that I do the kitchens and the bathrooms.

So we changed the bathrooms and the kitchens, as well.

Sharon's original plan was to keep the maisonette

and build up a portfolio for her grandchildren to enjoy

in later life.

Is that still the case?

I was thinking of renting it,

but I've enjoyed doing this one so much

that I think I may sell and be back in the auctions next month.

So...what do two local estate agents make of the work?

First up, the agent who the maisonette before work commenced.

Last time I was here at this property, I did notice quite a lot of damp.

It was pretty obvious, it was in nearly every room.

Most of the external walls were damp.

I've come back again and it's gone.

The property's been renovated to a very good standard.

Lovely bathroom upstairs, nice kitchen

and good-sized rooms.

And if Sharon decided to rent the property out,

what kind of return might she make?

If we were going to market this property to rent,

I would try and rent this property for £400 per calendar month.

I would ask for £375 per calendar month.

Those rental valuations could bring in a very healthy yield

of around the 14% mark.

But what about Sharon's preferred option, the resale market?

I think this property could easily achieve 45,000,

I'd probably try to put it on for £55,000

and try and take £50,000 if we could.

If I was to market this property with a view to selling it,

I would market it as £50,000.

A sale at 50,000 would give Sharon a very tidy profit

before tax and expenses of over £17,000.

I'm really pleased the way it turned out.

I don't do it for profit,

I do it for the challenge

and I've really enjoyed doing it

and I am really pleased with the outcome.

MUSIC: Money On My Mind by Sam Smith

# No money on my mind

# No, I have no money on my mind

# Just love. #

So how long till we see Sharon back at the auction?

I'm going to take a month off now and spend it with my family,

cos they haven't seen a lot of me.

I'm going to enjoy my grandchildren

and my children for the next month,

but the following month I'll probably be back at the auction house.

Back now to Margate and this former pub,

which sprawled over four floors.

The Grade II listed pub was bought at auction in 2010

for £90,000

by retired fireman-turned-property-developer

David who, with the help of his artist partner Stephanie,

had grand plans for the building.

With a bar and a kitchen on the ground floor,

gallery space in the basement

and seven artists studios on the first floor.

It's just going to turn into, I hope, you know,

a really nice meeting place and a really unusual venue

for people to share their skills and experiences.

If that's not enough,

they were also planning to overhaul the manager's flat

and then add a whole new floor above that,

with a second flat.

The flats can be entirely separate from the rest of the building,

doesn't have to be occupied by the manager,

they can be a totally different, separate two units.

Despite the building's Grade II listing,

David and Stephanie were planning on spending just one year

and £100,000 on all the work.

Almost five years after our first visit,

the Turner Contemporary Gallery is up and running.

But have David and Stephanie turned the old pub

into a Turner-esque masterpiece?

MUSIC: Turn! Turn! Turn! by The Byrds

# To every thing, turn, turn, turn

# There is a season, turn, turn, turn

# And a time to every purpose under heaven. #

So work has only just started!

Wranglings with the council over health and safety and access issues

have meant that they only started clearing the site four weeks ago!

But in the five years or so since we were first here,

David and Stephanie have actually changed their plans for the old pub.

We were going to have art studios on the upper floor,

but we'd like very much to incorporate

the new movement towards

very special artisan

real ales

and to use the bar as an outlet for that,

as well as having a microbrewery in the basement,

which could actually supply locally, as well,

all with locally sourced ingredients.

So, I think, we've had to use the space, really,

that we had planned to use for art studios,

in order to store the necessary bottles and casks for the brewery

in the basement.

'With the council on side, work can commence on the new project now,

'but stripping the building back has revealed some interesting finds.

'A railway timetable from 1902

'and a fireplace from much, much earlier.'

Well, this is the area of the back of the old kitchen

and in front of this here was the old gas cooker,

absolutely gorgeous.

According to the local authority, when they saw this they said

that the only one locally that they know of is in a pub

not very far from here - and that's why they can date it so accurately.

And they are convinced it is something in the order of 1650

and it's a wonderful, wonderful find.

Yes, a wonderful find indeed.

Not so wonderful is some of the woodwork exposed

in the stripping out.

Clearly, there's a good deal of restoration work to do here,

but on top of what was the old manager's one-bed flat,

David is still keen to create a whole new studio flat.

That flat on the very top,

we'd like to keep for our own private use

and the views from the very top flat

should be quite spectacular.

So, a microbrewery to come in the basement,

a bar on the ground-floor,

storage and two flats above that.

Now that they've started,

how long does David think it will take to get the whole thing

up and running?

We only started about four weeks ago,

but what we've achieved in four weeks is indicating very clearly

that we could have the brewery open and running in the basement

within six, worst case scenario, perhaps nine months

and we think that the entire building

could now be finished within a year.

And does he think they can stick to their £100,000 budget?

Thanks to the help we've been getting

both from the local authority and personal friends and family,

I think I can honestly say I'll be well within that original budget.

In order to strip the building to look at the problems

and what we really have to face,

I've probably only spent £2,000 or £3,000 so far,

which is an extraordinarily low sum

and given the amount of work we've done in such a short space of time.

With five years having passed since our last visit,

we asked along two local property experts to get their thoughts.

First up, the agent who saw the pub before work commenced.

Since we last came to look at the property,

there's been substantial changes.

Obviously, they're looking to completely refurbish the property

starting from scratch,

and you can really see that from the works that they've done so far.

I've looked at the plans for the overall building.

The design is good, they're making very good use of the space,

particularly I like what they are doing with the top floor,

which is going to have some fantastic views across the beach

and down to the Turner Centre and across the town.

So, overall, very interesting.

Clearly, the building is just a shell at the moment,

and at this stage it's impossible to put a value

on the businesses that David plans to start up here.

But, the estate agent reckons that from the plans,

the two flats could generate a combined rental income

of between £800 and £1,100 per calendar month.

Or they might sell for between £60,000 and £100,000 each.

So there's money to be made there.

Grateful for the information,

but no interest to me at all for the foreseeable future.

In fact, David has already been offered £250,000

for the building as it stands.

But he's in it for the long term and he's committed

to making a success of the microbrewery, bar and flats.

The most important thing of all of this

is that it's not something that you get the opportunity to do every day.

In fact, once in a lifetime, perhaps,

to be given the opportunity to turn a very old building -

crying out for help - into something magical again.

And from 1650, the days of Oliver Cromwell,

this building deserves to come back.

And fingers crossed a year or so from now,

we CAN come back and see the finished article.

Well, that's all we have time for today, but there are many more projects across the country.

Yes, and we'll have a few of those for you next time here

on Homes Under The Hammer.

-We'll see you, then.

-Goodbye.

-Goodbye.