Episode 8 Homes Under the Hammer

Whether you're a seasoned developer or a first-time buyer,

you will want to get value for money.

And that can be quite difficult in a fluctuating market

which is why more and more people are buying their homes under the hammer.

Sometimes you just know you've bought a bargain

and sometimes, well, you're not quite sure.

The only way to find out is to test the market.

So did the buyers on today's show bag themselves a bargain?

Here's what they bought.

They're difficult to find in London

but today I've got a proper property bargain for you

in Camberwell, South London.

This little earner has not let me down.

But letting down this art-deco house in Cumbria is a serious issue.

Some real problems

with penetrating damp.

However, this semi in Stoke is cracking.

Cracking in a good way downstairs

but in not such a good way upstairs.

Structural survey required.

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.

You bought it, sir, well done.

Welcome to Camberwell in South London.

Once a traditional farming village in the 1800s, Camberwell is now

a bustling multicultural area with great transport links to the city.

Cheaper than neighbouring Brixton and Dulwich,

and also undergoing a gentrification process.

Camberwell is ideal for commuters and investors alike.

Within a purpose-built block just a short walk

from Camberwell Green is the property I'm here to see.

This might not be the prettiest setting

but purpose-built blocks like these do provide a more affordable way

to live in an area which is only a few miles

from the centre of London.

So, what do you get for a guide price of £95,000?

Well, it's on the ground floor, it's a one-bedroomed flat

and it's right here. Let's go in.

The guide price means the flat

is even under the 1% stamp duty threshold.

Almost unheard of in London.

So I'm definitely willing to overlook

the rather utilitarian appearance of the building.

I reckon it's going to be what's inside that counts.

Well, it's great to have a little hallway here,

somewhere to hang your coat, which is always handy,

and what I do love is the storage space.

Always good to have that in a one-bedroomed flat.

The bathroom needs updating. You might even want to change the suite.

The kitchen, probably a new kitchen in there, but it looks like that's

a fairly new boiler, so that's a saving, straightaway.

You've got central heating, double glazing everywhere.

Not sure about this fire surround.

I don't think it really goes in this flat!

And the bedroom, a bit disappointing.

It's on the small side, although you could get a double bed in there.

So, overall, if you want to be in the heart of London, ten minutes

away from the West End, this could be a really good flat for somebody.

There's no doubt there could be a few upgrades to this place

to make it feel more inviting.

And there's an obvious repair needed to that plasterwork.

But basically, the inside of this flat does not disappoint.

# How do you like me now? #

For many, it won't be ideal that this is on the ground floor,

but, on the other hand, at least you won't have stairs to contend with.

Plus it's got 117 years left on its lease. Job's a good 'un!

One of the first thoughts that springs to mind with a flat

like that is, what rental potential does it have?

They tend to make great investments.

Well, if you buy for the guide of £95,000,

spend, let's say, ten grand on the renovations

and then you could rent it for up to £950 a month.

That would give you a healthy yield of nearly 11%.

This little earner has not let me down.

# And it's getting better

# Growing stronger

# Warm and wilder

# Getting better every day

# Better every day... #

What does a local estate agent think needs to be done

to this flat, with its very attractive 95 grand guide price?

The amount of money that needs to be spent on this flat in terms of

refurbishment really depends on what level that you want to take it to.

My view is somewhere between 10,000-15,000 would have it

kitted out fully. There's no point in going too overboard with it

because you're not going to get the return on that investment.

So, what could the flat be worth

once the refurbishment has been done?

Once the property's been renovated to a reasonable standard, you are

probably looking at somewhere in the region of 140-150,000.

The agent and I agree that this property could rent out for £900-950 per calendar month.

Yes, I do like this flat.

You really do get great value for money with a flat like this.

And you don't need to spend big to make a decent return here.

Seems like a straightforward little project for someone.

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

This lot came up towards the end of the day,

but there was still plenty of interest.

Purpose-built one-bedroomed ground floor flat. 100,000, anywhere?

Yes, thank you, 100 I've got. 101?

102, 103?

104, 105, 106, 107, 108.

109. 110. 111.

112. 113. 114.

115. 116. Anybody else?

Hello, sorry, I'm ignoring you over there. 116, new place. 117. 118.

119. 120. 121. 122. No?

With you, sir, £121,000.

If not, 122, back in. Nearly, 123.

OK.

£122,000. Anybody else?

If not, 122 for the first.

122 for the second.

123, back in.

124.

124. 125?

126?

No? It's with you again, Sir. A bid of £125,000.

It's against the gentleman here on my left at the front.

£125,000 for lot 89. Anybody else?

If not, 125 for the first.

125 for the second.

125 for the third and final time, are we all done?

Sold, 125.

The rather relaxed-looking bidder

emerging from that hard-fought contest is Stephen.

With his bid of 125,000, he's managed to buy this Camberwell flat.

Stephen is a trained opera singer

and he also serves in the Territorial Army.

So it was "quick, march" back to the flat to find out his plans.

-Stephen, congratulations.

-Thank you very much.

This is really good news for you.

-Did you expect to get this on auction day?

-I didn't, actually.

Not for the ceiling I'd set, so I was pleasantly surprised, actually.

And what was your ceiling?

-It was 125.

-Fantastic.

Now, I know you have an operatic background.

But tell me more about the Army, the TA.

Yes, so, I realised when I was younger I wanted to do

lots of different things.

And I loved the arts and theatre and music,

but I also wanted to be a soldier.

As it happened I went off to university and the arts won out and I got into opera.

But then, a couple of years ago, I thought, actually, I can do both.

So I joined the TA and, after a couple of years was mobilised

and went to Afghanistan for a tour of duty.

So, what do the soldiers think when you start singing along?

Well, before I went out, I was told, maybe don't mention it because

it's this macho world, I'm not sure how opera is going to go down.

And actually, everybody was really supportive. They loved it.

The only thing they said was, "Why are you here?

What are you doing? Why did you volunteer to do this? You're mad!"

And why were you there?

I just think it's something I've always wanted to do.

And I'm really glad I did it.

It's one of the best things I've done in my life.

Although I've just asked my girlfriend to marry me, she said yes.

-So that's the best thing.

-She said yes?

-She said yes.

-And when are you getting married?

-Probably in a year or so,

but the plan is to renovate a French property to get married into.

So I've got to do that as well.

You really do have a full life, which I absolutely love.

If I had to ask you, Territorial Army or singing,

what would you choose full-time?

That's a difficult choice.

-You love them both?

-Yeah, and I love property as well.

But there's a real privilege about making money singing opera.

It's an absolute honour to be able to do it, so probably that, I think.

An honour indeed.

And I do like the sound of running off to France

to get married and do up a property. Oh, tres romantique!

But, before Stephen and his fiancee

can even think about vin rouge and Camembert,

back to Camberwell and Stephen's liaison with this "appartement".

So, tell me the story. Why have you decided to buy this?

Well, I started buying at auction a couple of years ago.

I was mobilised to Afghanistan.

I had some money in the bank.

And I thought, I'm going to be away for a year.

The money's going to be worth less than if I just leave it in the bank.

-So, bricks and mortar, inspired by Homes Under The Hammer, of course.

-Yes!

And yes, I bought my first one and it's just carried on from there.

So, how long have you been singing for?

I started probably about ten years ago.

Can you just give me a few notes to perhaps crack the light bulb?

Yes, well, I think you've got to, you know, breathe in

and get the right breathing control. I apologise to my neighbours.

# Ma n'atu sole

# 'Cchiu bello oi ne

# O sole mio

# Sta nfronte a te

# O sole

# O sole mio

# Sta nfronte a te

# Sta nfronte a te! #

Thank you!

Oh, my hairs have all stood up on end! That was amazing!

-Oh, thank you.

-That was fantastic.

-Thank you.

There's always a first on Homes Under The Hammer, and that was it!

Wow!

So, you opera-sing, you're also with the Territorial Army and now you're

property developing on the side, so you've got fingers in many pies.

This is exactly it.

And the thing with opera singing is, it can be feast or famine.

And I haven't really got a pension organised,

so I look at the property as a kind of pension pot, I suppose.

So, Stephen, what are your plans for this property?

I will see if I can recycle the kitchen and maybe change the doors.

I need to get some more white goods to go in there.

And I'm going to have a go at doing up the bathroom.

I think probably a new bath suite at least.

OK, and what's your budget?

I think I can do it for probably under two grand.

-Under £2,000?

-I think so, yeah.

-Are you going to do a lot of the work yourself?

-I am.

The good thing about the singing work is, because I'm a freelancer,

I get time in the week to actually come and do this kind of stuff,

so it does have a natural fit.

So, things like replastering the ceiling, can you do that job?

We're going to find out,

because I have done some plastering before, but not the finishing.

-You're talented, but not that talented!

-No, there are limits!

Obviously. But I'm going to give it a go.

Well, there may not be much work to be done here,

but that is still a very tight budget.

# Money's too tight to mention... #

The good news is, though,

Stephen already has a friend lined up willing to rent the property.

And the bad news is...

The only problem is, it's at the end of the month,

so I've only got about two weeks to get this place sorted out.

-So you have got to crack on?

-Absolutely.

So, do you think two weeks is long enough for you

to get in here and crack on and get out?

It would be if I wasn't rehearsing for an opera, but I'm doing

that at the same time, so it's going to be long nights, I think.

So you rehearse during the day and then you'll be here in the evenings?

I'll be here in the evenings.

-Are you worried?

-A little bit, because there's always something

when you're at auction, and you go, "this will be a quick turnaround",

and when you actually get in here, and you realise, just,

everything takes longer than you think.

The painting, all that kind of stuff.

But I've got no choice.

Just look after that beautiful voice.

-It has been a pleasure meeting you today.

-Likewise.

And I'm so excited about everything you're about to do.

And we'll be excited to see what it looks like when you've finished.

-Great, thank you very much.

-Lovely to meet you, thank you.

Two weeks and less than two grand to complete the work?

That does sound quite ambitious to me.

TUNE in later to find out whether Stephen SCORES

and moves his tenant in on time,

or whether he falls FLAT off that target date!

I'm in the Lake District market town of Cockermouth,

and very nice it is, too. Famous for, amongst other things,

being the birthplace of William Wordsworth.

I feel a quote coming on.

I wandered lonely as a cloud

That floats on high o'er dales and hills

And all at once, I saw a crowd,

A host of golden daffodils.

# Poetry in motion

# See her gentle sway... #

Cockermouth does have plenty for Wordsworth devotees

but there is a shortage of daffs at this time of the year.

Meanwhile, back in the world of property, not botany,

this is the house I'm here to see.

It went up for auction with a guide price of £85,000 plus.

It's got three bedrooms, two reception rooms. Let's take a look.

Quite a nice entrance, that, with the steps up

and this chequered tiling.

It certainly creates a good impression. First impressions mean everything, as we know.

And when you come to the front door, mm, not as impressive.

But not a bad size. Stairs up to your bedrooms there.

You've got a reception room or living room on either side.

They seem to be a good size. Good to note you've got double glazing.

Not so good to note - storage radiators,

which means central heating is something you'll have to factor into your renovation costs.

Something else which doesn't quite work is here, into the kitchen, at the rear of the property.

It doesn't really befit a house of this size.

Obviously, the units.

Well, they're original!

But in this case, original features that are probably going to be removed.

-HE LAUGHS

-As is this serving hatch.

Don't you love that? Um, I think one thing you might consider doing here

is taking this whole thing out, creating a nice big open plan kitchen/living area -

that would be very much 2013.

Oh, dear!

I didn't notice this on the way in.

A slight issue with damp. Oh, look!

We are in the kitchen, so, eh, mushrooms on toast, anybody?

As you know, I'm normally quite a FUN GUY,

but one thing that always gets me worried are the signs of damp.

So that's going to need investigating.

Right, back to my plans for the layout changes.

So, big plan then, downstairs at least, take out this wall.

But, um... Oh, dear!

Looks like I missed something rather significant at first glance,

because standing in the way of the big open-plan kitchen/living area

is this chimney breast!

Now, I was going to say one thing you're going to have to do before

you take out this wall is check whether or not it's supporting.

But not only is it supporting, it's got this in the way.

Now that is going to cost a lot and costing a lot of effort

to strip out, because you can't just take this bit out,

you have to take everything that's above it out as well.

It's not impossible. But it might not be within your budget.

Something you might consider, which I have seen, which I think works really, is to strip this out,

put a big hole in the middle and put a nice big stove or something,

like an open fire, in the middle accessed and seen from both sides.

Do take professional advice when knocking down walls.

But while I've still got my metaphorical hard hat on,

what about knocking through from the second reception room to the pantry?

Time to demolish upstairs? Let's see.

Now, as I've told you a few times before,

houses and figuring out what's happening with them

is not rocket science.

So, class,

what do you think's going on here, then?

Real bad problems in the upstairs landing area there,

and it continues in the bedrooms.

At least stripping the wallpaper is not going to be difficult.

So, what do we reckon? Yeah. The roof is shot, isn't it?

Some real problems with penetrating damp.

And it's coming down.

# Down, down, deeper and down

# Get down... #

The damp extends through the whole of the upper floor.

The bathroom doesn't escape.

And I think it's probably at its worst in this

bedroom at the back of the house.

I think there may be more fauna growing in here than outside.

Oh, dear. A bit of a disappointment when you come out the back.

Because you've got very, very little rear space. Certainly no garden.

This ramshackle sort of outbuilding. That way, you've got a garage

and a little plot of land to the side of that.

But either way, not ideal at all.

But while I am out here,

the mystery of all that damp upstairs is possibly solved.

Not ideal.

The source of the damp has something to do with

the unusual design of this house.

It's a classic Art Deco design, which I rather like, but the house

does have one Art Deco feature that can be troublesome - a flat roof.

And the rainy UK is not the flat roof's friend.

I'd be getting that roof checked out for sure.

What can the auctioneer who sold it tell me about this house,

guided at £85,000 plus?

What would he recommend?

Get your roof on, hack everything off back to the brickwork,

new kitchen, new bathroom, new windows, although you'd have

to check out the status whether it was a conservation area or not.

And refurb everything.

And, fully refurbished, how much does he think it could achieve?

I think if this property was fully renovated, reroofed, it would

be in the region of £245,000.

What about the rental income? How much could that be?

I think you would achieve in the region of £750 per calendar month.

Well, it's a big house. It just needs a new roof.

Still, are my WORDS WORTH anything?

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

A substantial three-bedroom detached property having two reception

rooms, first-floor bathroom.

Modernisation's required. £85,000.

85 here. At £85,000 I'm bid now.

At £85,000.

86 at the back. 87, 88. 89.

90, 91,

92, 93.

A shake of the head. With you at 92.

At 92. 93?

94, 95, 96. 97.

98, 99, 100.

The bidding continued, and we rejoin the auction at £150,000.

At 150, I'm bid.

One, two. 53.

A shake of the head at 153.

With you, sir, against you, madam, against you. Back in?

153, 154, 155?

A shake of the head. With you at 154.

At £154,000, first time on the aisle. 155, back in. Six.

Shake of the head. With you at 155. At 155, then.

At £155,000, first time.

£155,000, second time.

Third and final time,

are you done? Well done, madam.

That successful bid of 155,000, 70,000 over the guide price,

was made by Susan, who was at the auction with her son, Ben,

and nephew Oliver.

Susan and her husband, Ian, live locally,

and it was Ian, a quantity surveyor, that I met back at the property.

-Ian, good to meet you.

-Nice to meet you, Martin.

-Congratulations.

Why did you want to buy the place, then?

Well, we've been looking for some time for an opportunity,

a development opportunity.

I've been looking at plots of land, and at various houses to do up.

Right. Talking of development, are you open to anything from building

somewhere to actually renovating? Is this something you've done before?

Yeah, I've built my own house before.

But I've never done anything like this, to be fair.

It's normally the other way around.

People start with something like this

-and progress to building a house.

-Yes, they do.

But to be honest, there aren't that many plots available these days.

Most of them seem to have been taken up,

and any that are available seem to be very, very expensive.

So we saw this as the next logical step.

Ian lives conveniently close to the property,

and will project-manage the refurbishment.

He wasn't necessarily looking for a huge redevelopment project,

but that's what he's ended up with. Is he daunted by the damp?

It needs a new roof.

We're in discussion with the planners

regarding what we need to do to put a pitched roof on there.

The house is in a conservation area, as well,

so the planners are in discussion with the conservation

-department as to exactly what they're looking for.

-Right.

So you've ditched the idea of putting a renovated flat roof on?

-You try to move away from that?

-Absolutely. Yes.

It's far better to put a pitched roof on.

The idea of trying to sell it on with a renovated flat roof,

personally, I think a pitched roof is a better option.

Being in a conservation area, Ian suspects that he'll be

required to use slate on the roof, and he anticipates

the cost of adding the pitched roof to be around £12,000.

The house will then be waterproof, but what else is he planning to do?

Well, it needs an overhaul from top to bottom,

rewired completely right through, new kitchen, new bathroom.

There are various areas of plaster that have dropped off,

so there will be various amounts of plaster patching to do.

Are you concerned that the damp has gone into any of the joists

or anything like that?

We haven't checked that out to any great degree yet, but once we lift the carpets up,

then if it needs to be done, we will have to do it right.

There is no point doing it any other way. We will do it right first time.

And when the place is watertight, Ian does plan

to knock down that wall with the chimney to open up the kitchen.

Yeah, we have a chimney breast there.

That is just going to mean a rather large RSJ or a few RSJs.

-And a shed load of work.

-Yes, that is a bit of work in it.

But it's the right thing to do.

At the moment, the kitchen is not really very functional.

People generally don't want two reception rooms.

If you can get a kitchen/diner out of it, there is work to do,

but that's the plan.

Ian's yet to get a quote for removing the chimney breast, but

he's set a budget of around £50,000 for all the work,

including the roof.

And once the planners have agreed his changes,

he thinks that construction work will take about three months.

And will you be actively involved?

Yes, I'll be managing the project.

We are fortunate that we've got people in our family

who are tradespeople, who are much better qualified than me,

so I will go to work and let them get on with it.

-Congratulations.

-Thank you.

-Look forward to seeing how you get on.

-Thank you.

Well, Ian has big plans and a big budget to sort this place out.

Will we see big changes when we come back? Probably.

You can find out later in the show.

Coming up -

this Stoke semi is cracking inside, but lacking outside.

If you wandered round, you might be put off by what you see.

It really is a bit of a mess.

And in Cockermouth, Ian's budget is overgrown, too.

We have exceeded our budget.

I'd like to think there's a small profit in it.

Back now to Camberwell in south London,

where opera-singer-cum-property- developer-

cum-Territorial Army reserve Stephen bought this

one-bed flat for 125,000.

And with a tenant already waiting in the wings,

he planned a super-fast turnaround of two weeks.

And the time frame wasn't the only thing that was tight.

I'm going to see if I can recycle the kitchen,

and maybe change the doors, and I'm going to have a go at doing

that with the bathroom, but I think probably a new bath suite at least.

And what's your budget here?

I think I can do it for probably under two grand.

Stephen was fitting the project in between his rehearsals

for an opera, and he was in fine voice.

# Ma n'atu sole

# Cchiu bello, oi ne'... #

One translation of the word "opera" means work,

and Stephen certainly had his cut out with this flat.

So, two weeks later, was it a case of "boo"s or "bravissimo"?

It all looks contemporary and smart and that very out-of-place

fire surround has gone, making the room feel so much more spacious.

Having agreed with his tenant to refurbish the flat,

Stephen has created a bedroom that looks inviting and attractive.

The once dilapidated kitchen has, as Stephen promised,

been recycled, or maybe this is up-cycling.

He hasn't replaced the bathroom suite though, but that was

always going to be tight on his budget.

In the lounge, we've managed to keep the wooden floors that were

already here.

Also managed to fix the plaster on the ceiling and taken away

this horrible fireplace which I was really pleased we had got rid of.

By doing that, we've created a nice living area

and a working or dining area here.

Actually, I'm really pleased with the way this room has turned out.

This was never going to be a big renovation project,

but by dressing the property and putting in new

floors in the kitchen and in the bathroom,

as well as painting the whole flat in under two weeks,

Stephen has been able to revitalise and refresh this place.

The timetable was quite tight.

I think I had about two weeks and actually it's been done in 11 days,

so I'm really pleased with that.

There have been some very long nights and some very early mornings,

but it's all been worth it and my tenant moves in tonight.

I was really pleased that I managed to salvage quite

a lot of the kitchen.

All the units are still the same

and I've gone over them with kitchen cupboard paint

and then in the bathroom, I've kept all the bathroom suite but added

a new shower and tiled around that just to make it look a bit fresher.

With help from family and friends and fiancee,

Stephen was able to bring it in under the original time frame.

But what about that other tight number? The two grand budget he set?

When I discovered I could recycle the kitchen,

I then thought it's worth investing in a new boiler,

so I've got a top-of-the-range new boiler installed with a long

guarantee, which is really worthwhile.

Actually, I should come in under the 2,000, probably by

a couple of hundred quid.

All in all, about £1,800 for the new boiler

and the materials to finish the job.

I've learnt, doing this project, that you really can achieve

a lot in a short space of time.

It's difficult and I don't think I'd want to set myself up for such

a tight timetable again.

Actually, it proves what you can achieve in 11 days.

I'm really pleased.

Stephen has every right to be pleased.

In just 11 days, he's been able to turn this place around with

a spend of just £1,800, meaning a total outlay of just under 127,000.

We asked along two local property experts to give us their opinion.

I think the property has been finished fantastic,

leaving it plain and simple ready for somebody to come in

and put their stamp on it.

I think the standard of finish is absolutely

bang on for the market that it will appeal to.

It's not over the top but hits the button right on.

I think this flat would resell for anywhere between 150 and £155,000.

This flat could sell for anything between £180-£200,000 mark.

I think the midway point between those two valuations is

probably what I was expecting. 170, 175.

I think the 155 is a bit too low

but I also think 200 is probably a little bit excessive, actually.

Taking the middle figure of 175,000 would mean a potential

profit of around £48,000, minus the usual taxes and fees.

For 11 days' work, I would have to say "bravo".

But having already let the property out, he'll be keen to hear

the rental values.

This flat would rent for anywhere between

£850-£900 per calendar month.

In pounds per calendar month, I think

this flat would rent for somewhere between 875 and £925.

Taking the high valuation of 925,

that would mean a rental yield of around 8%.

I'm pleased with the rental valuations and they chime with

what I'll be charging my tenant, so, that's all in line.

Stephen is happy to rent this one out for now,

but what about the future?

Will it be the highs and the lows of opera singing?

Or more property development for him?

The thing with opera singing is it can be quite precarious,

so I think I'll be putting my faith in bricks and mortar

for my pension plans.

And if, like Stephen, you fancy putting your faith in bricks

and mortar, then how about here in Tunstall,

one of the six towns of Stoke-on-Trent.

Property in Tunstall is a mix of Victorian terraces

and also more modern housing estates.

Not far from the town is one of those very estates

and good solid properties they tend to be too.

Hopefully that's the case with the property that was up for auction.

Three bedrooms, guide price 45,000, plus it's semi-detached.

Nice elevated position.

Let's take a look.

# It's not one that falls apart

# After once around the block

# Our love is solid as a rock... #

So, fairly substantial on the outside. What's it like inside?

Very interesting design.

Corridor there leading to the stairs and onto the bedrooms

and into the living room. It's a good size.

I like the bay window. Lots of light coming in.

Not so sure about the fireplace but at least you've got a focal point.

Open that up and put a real fire in there, maybe a wood-burning stove,

a new gas fire or a smart electric fire, perhaps.

Very sensible design through here into the kitchen.

Again, really good size, really nice proportions.

Big enough to have a kitchen table there.

Obviously you're going to need some new units

and I think double glazing, for sure.

Again, this really sensible design gives us

lots of places to put things, this area under the stairs.

There's this utility area here.

That corridor that I saw when I came in, is actually here,

so you've got this circular feel so you can walk round

and round and round which I quite like.

Downstairs loo.

It's just intrinsically liveable and sensible as a design.

These ex-council properties were designed by people who

thought what people need from a house.

And they did it. It's brilliant.

# When I need love

# I hold out my hand and I touch love

# I never knew there was so much love

# Keeping me warm night and day... #

Upstairs, my love affair with the layout continues with

the bedrooms and bathroom just where you need them.

But I am seeing something up here that doesn't look too clever.

Now, whenever you look round a house,

you're always looking for signs of potential movement.

In its worst case, subsidence.

Sometimes, you can see it on walls, sometimes you can see it

around door frames but here's a classic way to spot it.

Look at the windows. The thing about glass is it doesn't move.

It could be that the frame moves, you wouldn't notice it.

Even the brick work moves. You wouldn't notice it.

But the glass has shown that there has obviously been some

kind of movement there because it's cracked.

I know, for sure, that this

is an area where there is a history of mining.

Combine the two and my spider senses start tingling.

Pause that for a moment. Bedrooms, three of them, that is a good size.

Good size bathroom that looks like it's been recently refurbished,

which is good. You've got a boiler and two other bedrooms.

A box room there and through to your third bedroom at the front.

Oh, look. On its own, that wouldn't worry me,

maybe just plaster coming off in places.

But combined with that window, structural survey required.

# There is a crack

# A crack in everything

# That's how the light gets in... #

Assuming the survey checks out OK, I think you might be quids in here,

although there is still the back garden to consider.

Well, out the back, it could do with a bit of a tidy up.

It's one of those classic auction properties where,

if you wandered round, you might be put off by what you see.

It really is a bit of a mess. But you know what?

There's a lot of space. You got to see through that.

A lot of brick work has been done so, actually,

I don't reckon it'll cost too much or take too much time

to sort this out.

The nice thing is, nothing at the back.

So, strange as it may seem, quite a positive.

Yep, with its £45,000 guide price,

I've got a good feeling about this one.

We asked along an expert from the auction house that sold it

to get his thoughts on the semi.

First impressions - the property needs a bit of TLC.

I think the new purchasers,

possibly going to be putting a new kitchen in, new bathroom, rewiring,

double glazing, potentially, quite a bit of work required.

OK, but what might the property fetch on the resale market?

Once renovated to a decent standard,

I'd place this on the market somewhere between £65-70,000.

And on the rental market?

I'd suggest somewhere around £450-£500 per calendar month.

Well, it's a lot of house for not a lot of money.

Definitely want to have a structural survey

just to check about those cracks, but apart from that, yeah,

it could deliver a great return or be a good home to live in.

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

So, lot 70, three-bedroom semi-detached house,

gas, central heating and gardens.

Say 40,000 to start?

38, then?

38, can we say to start? 38 bid, thank you, at £38,000.

40, going to say now. At £38,000,

40, can we say? 40 bid, yeah, 40.

42? 42.

44. 46?

At £44,000, you want to go on?

You do. 45, one to you, sir, 46?

No? At £45,000, then,

lot number 70, 46 anywhere else?

At £45,000, then, for the first time...

Just in time. 46 in the aisle,

at 46. 47?

You're not looking at me. Are you out?

You are. Bid's at 46.

It's in the aisle. 47 anywhere else?

If not, I'm selling it at 46, then, for the first time,

£46,000 second time, third and final time, at £46,000.

You've bought it, sir. Well done.

And that successful bid of £46,000 was made by Toby,

who attended the auction with his grandfather.

Now, this was actually the second of two properties

that 23-year-old Toby bought at the auction, and

we'll be seeing what he did with his other purchase later in the series.

But I met Toby back at the Tunstall semi

to see what the budding poverty developer is planning here.

-Toby, good to meet you.

-You all right?

-Yeah, good.

-Congratulations.

-Thanks.

-Tell me why you wanted to buy this place.

This one, it was a complete...

I hadn't seen it before, hadn't been in it,

hadn't looked at the paperwork. It was just the right price.

You bought it purely on price?

-Mm-hmm.

-At the auction, spur of the moment?

-Yeah.

-Because of my age and...

-What do you mean, because of your age?

Not immature, but obviously not experienced or anything

-in this sort of thing.

-OK,

and if you make mistakes you can always recover from them - I guess.

-Hopefully.

-It's a terribly dicey strategy. You know that, don't you?

-Yeah. But it looks all right.

-What, from the picture in the catalogue?

-Yeah! That's it. Grandad said, "Go for it".

-Did he?

-Yeah.

-That's OK, isn't it? Granddad's

-advice is often good. Brilliant.

So tell me a bit more about you. You're quite young to be doing this.

-Yeah. 23.

-Right.

-Not got a job. I had an accident.

-An accident?

-Yeah, on a motorbike.

What kind of accident?

Some bloke pulled in front of me, so I went into him

-and I've got a nice claim out of it.

-What kind of speed was he...

-Not quick, only like 30mph.

-Were you badly injured?

Yeah, I was in a coma for a bit, brain haemorrhages.

-How long were you in a coma for?

-Nearly three weeks.

-Wow.

-So...

What brought you out of the coma?

-It was an induced coma.

-OK.

-Because of my swelling and stuff,

they had to put me into a coma to let everything settle down

and then bring me back out. That's what they do, apparently.

So without being too morbid about this, how close to, you know,

life and death was it?

It was pretty... I was on a life-support machine.

-Wow.

-So that close. That close.

You're quite young for that to happen.

-How does that make you feel about life?

-This is an opportunity.

I've looked at it as, something bad's happened for something good,

so let's hope that it is good.

I love Toby's positive outlook

and while I'm all for investing in property

and building up a portfolio,

I do have to take exception to buying blind at auction.

But providing the structural survey comes back OK,

Toby might just have got away with that here.

So tell me what you're going to do to sort it out.

New kitchen, just rip these out,

bathroom, keep the suite, just tile and just modernise it, basically.

-Just get it nice and clean and liveable.

-Right.

And is the idea to rent it out or to do it up and sell it on?

Erm...

As a start-off, it was to rent out,

but obviously, depends how much there is to be made on it.

If I do make any, then obviously

I might have to have a little think as to what to do on it.

If you can remortgage it, you could always start to build up a portfolio.

Yeah, there is that option as well.

By the time you're 30, you could have a portfolio of 20 properties.

-You could retire.

-Hopefully. That's where I'm hoping to go with it!

MUSIC: "You Can Get It If You Really Want" by Jimmy Cliff

Stepping onto the ladder at those dizzy heights,

Toby plans to spend three months doing up this property

and the other one he bought at the auction.

He's going to do as much of the work as he can himself,

with family and tradesmen stepping in where required.

-So what's the budget for sorting this out?

-Seven and a half.

Quite low, but you're doing a lot of the work yourself.

I'm doing it all myself,

-so for both it's 15, for both.

-Right.

So half-half. And then whatever I can save is a bonus.

One house isn't, the other one isn't going to need that sort of money,

so I have got left over to put into this one again.

And what about outside?

Going to have a look at off-road parking because next door's done it

and I don't know what I'm going to do with the back!

I haven't even thought about the back yet, but that's as and when.

-Great.

-Wait until the weather warms up.

So hopefully out of adversity and some fairly horrible circumstances

-and experiences will come some positive stuff.

-Hopefully.

-Hopefully.

-Well, listen, we wish you all the best. Good luck with it.

-Thank you very much.

-We'll be back to see how you get on.

-Cheers.

So, Toby breaking all the rules when it came to buying this place,

but thankfully, I actually think he's got away with it.

A great house, and in terms of his concept of investing

for his future through property, spot on. How will he get on?

You can find out later on the show.

Well, the plans and the dreams seemed good at the time.

But have those dreams turned into reality

-or has it become a bit of a nightmare?

-Let's find out.

Back, then, to Cockermouth in Cumbria,

and this three-bed Art Deco house

which Susan bought at auction for 155,000.

£155,000. Are you done?

Well done, madam.

The house was riddled with damp

and the culprit appeared to be water ingress from leaks in the flat roof.

Susan's husband Ian was on hand to talk me through their plans.

We're in discussions with the planners at the moment,

just regarding what we need to do to put a pitched roof on there.

The house is actually in a conservation area as well,

so the planners are in discussions with the conservation department

as to exactly what they're looking for.

Once the permissions were in place, the plan was to spend three months

replacing the roof and totally refurbishing the interior.

The budget for the work - £50,000.

And on a rainy day five months after our first visit,

we're back to see if the house is still as leaky as a sieve

or if Ian is home and dry.

MUSIC: "Dry Your Eyes" by Texas

Not a dry eye in the house,

which is transformed from the top...

..to bottom.

The new pitched roof is clearly doing its job keeping the rain out

and looks pretty smart.

Inside it's all looking clean and, most importantly, dry.

The biggest changes are in the new kitchen/diner.

We wanted to remove this wall, which included the chimney breast here.

The problem that we encountered was, when we actually took the wall out,

the floor level in here

was quite a lot different to the floor level in here

and obviously, as we want it as one room, we needed to fix that.

So what we had to do was remove all of the boards, all the joists,

completely replace them.

We had to build a dwarf wall there to carry the replacement joists,

replace all the floorboards

and insulate it, because it's new building regs and requirements,

and obviously we have a nice level floor now, so everybody's happy.

It's a fabulous family space

and they've even managed to squeeze in a downstairs loo

in the old larder, but there's been a whole lot more work going on

behind the freshly decorated interior.

It's been new plumbing right through.

New electrics right through. New kitchen. New bathroom.

New doors. Completely skimmed it, completely painted it, etc.

Except from the structure itself,

it's almost a new property.

And what about the new roof?

Were there any issues getting permission for that?

The planners and the conservation team were very helpful.

They helped us decide on the shape of the roof,

to start with. Secondly, the materials that were required.

We are in a conservation area and so we have to go for a slate.

The process itself probably took about six to eight weeks,

from start to finish. They were very helpful and,

obviously, they had certain requirements.

We made sure that we satisfied those requirements.

The result of that was it went through very promptly.

I think they have done really well to get permission, and finish,

in just five months.

Ian was busy with his day job, so his wife Susan

project managed the work.

So, how have things gone on the budget front?

The original budget was £50,000.

We have exceeded that by quite a margin, we think.

We decided to renew the double glazing throughout the house.

Added to that, there was other bits and pieces,

like, for example, the floor, that I mentioned earlier.

Difficult to say, at this stage, exactly what the final costs

are going to be, but we have gone a significant chunk

over the 50,000, unfortunately.

In fact, the extra bits and pieces bumped the spend up to £70,000.

Added to their purchase price of 155,000,

their total spent here is 225,000.

We asked along two local property experts for their thoughts.

First up, the auctioneer who sold it.

What a difference there is to before it went to auction.

He has obviously done... Whatever he has done, he has done right,

to a very high quality. He obviously started with the roof,

got rid of that flat roof, the pitched roof.

New floor coverings, new wall coverings, kitchen, bathroom.

Added a toilet downstairs, opened the kitchen up.

Very light, very airy. Very, very good job.

I am really impressed.

I think they have done a really lovely job with it.

It has got a wow factor when you walk in.

It is light and spacious. I really like the kitchen/dining room -

a really good room for socialising.

And what do they think the house might fetch on the rental market?

I think you would achieve in the region of £650 per calendar month.

I think it would achieve between £650-£675 per calendar month.

Those valuations would mean a yield of less than 4%,

but bearing in mind their total spend of 225,000,

what might they achieve on the resale market?

If I were to market this property in the current market,

I would market it at £250,000, to achieve between £240,000 and £250,000.

I think you would adopt an asking price of £245,000,

with a view, perhaps, to achieving £240,000.

We have exceeded our budget. I'd like to think there would be a small profit.

Well, a pre-tax profit of between 15 and 25,000 is not too bad.

And this was their first go at renovating an older property,

and Ian and his wife Susan can take what they have learned here

on to their next project.

Time now to see if lessons have also been learned

here in Tunstall, Stoke-on-Trent,

where this three-bed semi was bought blind by 23-year-old Toby,

for £46,000.

Toby appeared unfazed by cracks in the walls and windows and, in fact,

this was one of two properties which Toby bought at the auction,

as his first steps towards a career in property development.

Is the idea to rent it out or do it up and sell it on?

As a start-off, it was to rent out,

but, obviously, it depends how much there is to be made on it.

If I do make any, then, obviously, I might have to have a little think

as to what to do on it.

But if you can remortgage it, you could always start to build up

-a portfolio.

-There is the option, as well.

By the time you're 30, you could have a portfolio of 20 properties.

-You can retire!

-Hopefully! That is where I am hoping to go with it!

Toby was planning to spend £7,500 doing the property up

and aimed to have this one, and his other auction purchase,

renovated within three months.

Nine weeks after our first visit,

we are about to see if a Tunstall semi has been a real eye opener

for Toby.

-# Suddenly, I see

-Suddenly, I see

-This is what I want to be

-# Suddenly, I see

-Suddenly, I see

# Why the hell it means so much to me

# Suddenly, I see

-# This is what I want to be Suddenly, I see

-Suddenly, I see

# Why the hell it means so much to me. #

They say that seeing is believing and, while I see

there are still a few finishing touches to, er, finish,

I do believe you might be well under way to nailing this one, Toby.

Painted everywhere.

Carpeted, linoed. New kitchen -

halfway through a new kitchen - bit of plastering.

That's pretty much it inside.

Toby did get help from a certified installer for the gas and electrics,

but he's pretty much done the work outside himself.

The bit I've enjoyed the most

is the gardens, cos it's been rubbish weather, but it's been nice

to be outside

and be able to see... It's a big change.

Out the front, we put in a double drive and then, out the back,

just tried to put fences up. There was nothing.

It's still a work in progress! Getting there, though.

Yeah, it's definitely getting there! What about the cracks on the windows

and walls? Did those cause any problems?

Structurally, the building was fine. Didn't look it,

but it was just cosmetic, in the end.

I did get everything checked out, so, happy with that.

Toby has been so hands-on here, he even moved in during the build,

in order to maximise his time on site.

He did get help with plastering, plumbing, electrics

and the new double glazing.

Oops! Missed a bit there, Toby! But how has he found

his first steps into the wonderful world of property development?

Biggest thing that I've learned doing this - time management.

Time management is the biggest problem that I've had,

trying to get people in on the days that they are supposed to be here,

trying to get everything done, obviously, for the deadline.

But, yeah, in the end it's worked out.

It's got there in the end.

By the time he manages to finish the finishing touches, Toby will be

pretty much bang on schedule, but what about his £7,500 budget?

My budget has gone OK, in my eyes.

I have overspent by double

what I thought. By the end of everything, it will be double.

But I have also done a lot more than what I planned to do,

like, the driveway, so it's just

all the bits start to total up.

And total up they have...

Toby's total spend is now 61,000.

We asked along two local property experts,

to get their thoughts on the renovation. First up, the expert

who saw the property before work began.

The off-street parking is a bonus.

Whether it is lived in or owner-occupied or rented out,

it's to a decent standard to do whichever.

I think it's really nice. Got some good room sizes,

especially the kitchen/diner - really good room.

Downstairs toilet, as well. Really good stuff. Parking on the front

is also going to be a plus point, so, yeah.

And what do they think the property would fetch on the resale market?

I'd anticipate a retail sale price of £65,000-£70,000.

I'd place this on the market somewhere around £70,000.

Those resale valuations would mean a profit before tax and expenses

of £4,000-£9,000. But what about the rental market?

Going to be looking at a figure for rental of £450 per calendar month.

We'd place this somewhere around £500 per calendar month.

That is more like it.

Those rental valuations would give Toby a yield around the 9%-10% mark.

So, will Toby sell or will it be one of the first properties

in his rental portfolio?

I'd rather rent it out, cos I've still obviously got capital then

and still making money out of it. So, that is my preferred thing to do.

But if someone's willing to buy it, then they can have it.

Well, that's it for today. We will be back next time

with more news from the front line of property developing.

We look forward to seeing you then, for more Homes Under the Hammer.

-Goodbye.

-Goodbye!