Episode 12 Homes Under the Hammer

Hello and welcome to the programme.

Now, the UK's property market is a multi-million pound business.

Those are big numbers. Don't be put off by that.

No, despite that, there are still bargains to be had.

One good way to find them is to head to your local auction rooms.

Well, to help us keep up with all the action,

-we're joined by Dion Dublin.

-Hello.

-Hi, guys, how are you doing?

-Hi.

I've actually spent a lot of time,

a lot of money on property over the years.

Anyone can do it but you've got to do your research,

have a bit of cash and have a bit of confidence.

With tens of thousands of lots every year, there's plenty to choose from.

Yes, from two-up two-down terraces to country piles,

there is something for everybody.

So, let's see what the bidders decided to go for on today's show.

In beautiful Cumbria, it was all about the right location.

As soon as we came here, saw those views out there,

we sort of fell in love with the place.

And in Nottingham, it was all about paying the right price.

I had to go to keep an eye on him to make sure he didn't go too high.

Whereas in Folkestone, Kent, nothing was right.

Are you pleased with what you bought?

I'm sorry to disappoint you -

no, I bought the wrong place.

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.

Well done, sir.

MUSIC: The Lark Ascending by Vaughan Williams

I'm in the Lake District National Park,

not exactly renowned for being crammed with properties to buy.

However, what you do get is 885 square miles

of rather gorgeous scenery

and there is a property that was up for auction around here somewhere.

MUSIC CONTINUES

The property I'm looking for is in an area called Irton,

just on the fringes of the beautiful Eskdale Fells.

It is within the National Park

and I think, well, it doesn't get much better than this.

Well, a short amble away and I think I might have found it.

Three-bedroomed bungalow, had a guide price of £120,000 plus.

It looks pretty unassuming from the front

but I like the fact it's got its own garage,

pitched roof doesn't look to be in too bad condition.

Let's take a look inside.

Obviously, the front garden is a little overgrown

but could be quite pleasant with it all trimmed back.

It's just a shame there's not more of a view at the front.

A high tree line across the road

obscures the rest of the countryside.

Hey-ho, you can't have everything, I suppose.

Ooh, interesting lay out. Quite a large corridor facing you

when you come in through the front door

and into a double aspect living room.

A nice sized space, lots of light coming in from the windows.

Open fire, bit dated fire surround.

Through in to the kitchen and the moment you walk through here,

you go...

Wow!

Fantastic. Imagine doing the washing up at the sink

and looking out at that.

Fantastic. What have we got in here, then?

We've got a reasonable sized kitchen,

a little utility area there but it's not new

but you could probably work with these units.

They look like they're pretty much handmade.

I'd maybe keep those but tart them up

but I'm more interested in maximising that view

because I glimpsed it in this room

but I didn't really see it that much and why not?

It's not making the most of it with that window.

What I want to see is French windows or, even better, bi-fold doors.

Knock the whole wall down, make it all window.

You know, bi-folding doors -

open that out, the garden, look at the view...

Got to be done!

MUSIC: Open Your Window by Ella Fitzgerald

# Open your window and take a deep sigh

# Think about letting the rest of the world go fly... #

Yes, this is definitely a place

where you want to bring the outside in and try to soak in that scenery.

MUSIC CONTINUES

So, that's all fine and dandy, then,

however, it starts to go a bit wrong

when you look at the rest of the accommodation.

It's all down this little corridor.

Two double bedrooms, one there and one there.

They're a really nice size.

A bathroom, needs a bit of tender loving care, needs updating

but money and time and effort spent doing that

will definitely be repaid in terms of what you add,

value-wise, to the property.

Then, right at the end of this little corridor,

er, the smallest bedroom.

Ironically, it is the only one to have those glorious views.

Three bedrooms, decent kitchen with utility,

double aspect living room, some land

and a location that's just stunning.

There has to be a catch

and, darn it, there is.

Right, enough about the beauty of the countryside.

It's time to talk drainage because...

Seems a bit of a come-down, doesn't it?

Because when you're buying a property out in the countryside,

the likelihood is drainage is going to be potentially a bit of an issue.

Old properties like this in the middle of nowhere

would generally have been built with a septic tank.

Just in case you don't know what a septic tank is,

well, it's a way of taking away your household waste water

and sewerage where there is no mains sewerage system.

The septic bit is the bacterial environment that digests the waste

inside a tank buried underground.

They do require a bit of maintenance

and should be de-sludged around every two years,

which brings me to the bad news.

Next door and this property share a septic tank.

Next door have put a stipulation on the sale of this place

that whoever buys it has to put in their own septic tank.

What does that actually mean?

It actually means a lot of cost, a lot of digging -

at the end of the day,

it's going to be something you're never going to see again

but it's got to be done.

It was all looking so good but at a guide price of £120,000 plus,

I still don't think this bungalow would be money down the drain.

What does the auctioneer who sold it make of it?

It sits in a beautiful location, you know.

It sits really well with the Lake District as a nice backdrop.

I think once this property was modernised -

new kitchen, new bathroom,

outside done, landscaped, trimmed back, looked after,

I think if it was exposed to the sales market,

I think you've got to be in the region of £200,000.

£200,000 resale price is certainly encouraging

but in this rural location, would there be any rental potential?

I think you would achieve a rental income

of between about £550 per calendar month and £600 per calendar month.

Well, as bungalows go, it's not bad.

Let's be honest, it's not going to be the bungalow

that attracts a bidder to this one, is it?

£120,000 plus as a guide price for that view?

-HE LAUGHS

-I think it's worth it.

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

Lot 32,

detached bungalow comprising three bedrooms and a bathroom,

externally, gardens. Who's here for this...?

120, 120...

120, I've got. 121...

121, back row...

122, 123, 124...

125, 126, 127...

128, 129...

So, perhaps not surprisingly,

there was a lot of competition for the bungalow.

We rejoin the bidding at £150,000.

150, and a half...

150 and a half, 151...

And a half, 152, and a half...

153, and a half...

154, and a half...

155, and a half...

156...

And a half...

Are we all done, then, at £156,000...?

First time...

Second time, at £156,000...

Selling away...

Well done, sir. With me all the way, well done, congratulations.

And so, for £156,000,

the new owner of the three-bed countryside bungalow is Paul.

Paul is an engineering consultant for a local company

and he and his wife Jennifer

have previously bought and renovated two other properties

that they now rent out.

-Paul, great to meet you.

-Nice to meet you.

-Congratulations.

-Thank you very much.

So, as if it isn't obvious,

why did you want to buy this place?

Well, we really fancied getting somewhere in the country

as a sort of weekend, holiday retreat.

As soon as we came here, saw this was up for auction,

saw those views out there, we sort of fell in love with the place.

Right, so, it's going to be a holiday home?

-For ourselves.

-Yeah.

-But more weekend home, for weekend and holidays.

-OK, right.

We've got an apartment in the town centre for weekdays.

Which town centre?

-Whitehaven town centre...

-OK, fine.

-..which is a bit closer to work.

This will be just somewhere nice and quiet for the weekends.

MUSIC: Let's Get Away From It All by Frank Sinatra

# Let's leave our hut, dear Get out of our rut, dear

# Let's get away from it all... #

Well, this might be a great place for Paul and his wife Jennifer

plus their two dogs to get away from it all.

One thing we can't get away from is that drainage issue.

The key thing that we need to do is install a septic tank.

-We've had a quote come in at about £10,000.

-Wow, ouch.

It is a lot of money, more than we wanted to pay.

The trouble is that because the existing septic tank

is over in that direction,

all the drains drain downwards in that direction.

-Ooh.

-The only place we can put the septic tank

is the opposite side of the garden.

-Right.

-All the drainage will need to be diverted.

So, what else are you planning to do to it?

There's a couple of flat roofs on the garage

and the little extension at the back there.

They're pretty old now so we need to probably replace,

maybe we'll get away with re-felting.

We are thinking of painting the building.

And then inside, any major changes planned at all?

Not major changes. We want to change most of the flooring.

We have picked up the carpet in that corner of the room here,

appears to be floorboards underneath. Assuming they are,

in most places, we'll probably keep the floorboards.

What about the kitchen?

The kitchen's fine. The units are handmade, I believe.

The doors don't all fit properly

so I think we'll just get a joiner to come in and essentially fix that.

What about patio doors out here on to the garden?

It's something we considered.

In the first phase of work and what we've budgeted for,

we're not necessarily having that yet.

We are thinking about having a conservatory potentially

-in the future.

-Right. On the back?

-On the back.

-It would be stunning, wouldn't it?

It would be, yeah, cos we could sit in the conservatory

with lots of window looking out on that view.

It would be great.

So, the bigger picture is to get a house that maximises those views

but the short-term view is to spend four to five months

getting the place up to scratch,

installing that septic tank and then spending some time here.

What is the budget for the work?

The budget for the work is about 24,000.

-OK.

-Quite a lot of money...

-Yeah.

..but again, over 10,000 of that is the planning permission

and the septic tank itself.

Are you doing any of the work or is it all...

Most of the work internally will need to be

principally decoration and things like that.

We're going to do as much of that as possible,

things like removing the tiles in the bathroom, we'll do all that.

-Mm-hmm.

-It's just when it comes to things like joinery

and building work, we'll obviously get the experts in.

How often do you think you'll be using it?

Pretty much most weekends, I would have thought.

Friday to Monday most weeks...

-Right.

-..and whenever we go on holiday

and we're not going somewhere else.

I'm delighted it's found somebody

who is going to really appreciate it. Congratulations.

Thank you very much.

MUSIC CONTINUES

# Let's get away from it all. #

So, Paul buying this place for the obvious reason

and who can blame him?

Wonderful that he and his family are going to enjoy this place

and everything it has to offer. Still, lots of work to do

and, you know, he's got to put that conservatory

and that patio door on really, hasn't he?

Will he? You can find out later in the show.

I may not have the rural scenery

but I'm in a city steeped in tradition

as well as being a busy modern metropolis.

The city of Nottingham is a place I've visited many times

during my football career,

with the city boasting two football league teams -

Notts County and Nottingham Forest.

The two grounds are less than a mile apart,

separated only by the River Trent that flows through the city.

Just a mile or so from the city centre and Nottingham University

is the property I'm here to see,

set in this very pleasant modern development.

It's a ground floor one-bedroom flat with a guide price of £55,000.

Let's take a look.

OK, straight in to the hallway.

It's only a small hallway but that's expected, it's a one-bed flat.

OK, the bathroom is just there, nice pink bathroom with magnolia walls.

Nice combo, not my choice but totally usable.

The bedroom is there. You could get a double bed in there no problem.

In to the kitchen-lounge area.

The kitchen is a little bit dated but that looks all OK to me.

The lounge area here, you get a sofa, you get a table there,

you get your TV on the wall, not a problem.

What I can see this being used for is professional people -

the university is not too far away, the hospital's not too far,

the city centre is a couple of miles away

or even Nottingham Forest, Notts County, signing a young player

and maybe putting them in here for three to six months,

just for somewhere a bit private.

MUSIC: Hide Yourself Away by SixNationState

What a perfect little hideaway this is.

Yes, it's not quite Premier League in its finish

but it wouldn't take much to get it up there.

MUSIC CONTINUES

# And just hide yourself away La-de, la-de, la-de

# Come on, just hide yourself away La-de, la-de, la-de

# Come on, just hide yourself away... #

There's no hiding away from the fact

that the pink magnolia bathroom needs changing.

Something a little more neutral would be more suited for today's market.

It's a shame it's only got electric heaters -

practical but less efficient than central heating

but then, everything here is geared towards low-maintenance.

As there is no garden with the flat, you do have this communal area here

which from what I can see has been kept incredibly well.

I can't see a leaf anywhere out of place.

You've got a bench over here

where you can sit down and read your books when the sun's out.

It might cost you a few quid but I think it's worth it.

If it's kept in this condition,

it's always a nice thing to have on your doorstep.

What lovely surroundings...

but well-kept communal areas come at a price

so always do your homework and find out how much it's going to cost you.

The charges here are just under £1,000 a year

which I think is fair, given the standard of maintenance.

What does a local estate agent make of this one-bed ground floor flat?

It's quite intriguing.

It feels like it's so far away from the city centre

however it's only a 20-minute walk to the city centre,

20-minute walk to the station

and only a 20-minute walk to the nearby university.

It's ideal for the rental market,

professional couple, first-time buyer.

The property just needs a little bit of TLC. It's not dying

but it just needs a lick of paint, new kitchen, new bathroom.

Yes, it's not going to take much

to get this up and ready for the rental and resale market

but small changes can limit

the amount of value you can add to a property

by doing the refurbishment.

Can this flat that was guided at £55,000 see much of uplift in value?

Once renovated, I feel this property will be on the open market

within the region of £85,000.

Encouraging...

but I see this as a perfect rental property.

How would it fare on the lettings market?

I see this property on the rental market at £475 per calendar month.

It is what it is.

It's a one-bedroomed flat and it's in a nicely well-kept area -

perfect for a professional person.

Let's see who fancied it when it went to auction.

Lot number 1,

it's a modern one-bedroomed ground floor apartment

that's in a popular location.

54,000 for it...

54, I've got, thank you...

At £54,000, the opening bid...

55 from somewhere else?

55 is bid, 56 is bid...

57, 57,000, 58...

59 is bid, at £60,000...

At 61, 61,000...

500 help you?

61,500, 62,000...

So, interest in the flat was quite intense

and we rejoin it with bidding at £72,000.

72...

72,500, 73,000...

Either of you on the front row?

73,500, 74, sir?

74, and a half...

75, 75 and a half?

And a half, 76...

Sure?

£76,000 for the first time...

Second time...

Third opportunity...

And a half?

Your turn, 77...

-77, you did that before...

-LAUGHTER

£77,000...

Definite?

Final answer?

Sold at 77,000. Thank you very much.

And so, £22,000 over the guide price,

the hammer finally fell at £77,000 for the one-bed flat.

The successful bidder is chartered engineer Charles

who previously studied for a PhD at nearby Nottingham University.

He bought this as a buy-to-let property

but the renovation is going to be a family project.

He joined me with mother-in-law Joan to tell me more.

-Joan, nice to meet you.

-And you.

-Congratulations, Charlie.

-Thank you.

-Same to you, sir.

-Hello.

-How was the auction?

-You both went together, didn't you?

-Yes, we did.

I had to go to keep an eye on him to make sure he didn't go too high.

-Purse strings?

-Yes.

I'm the risk taker and she's the prim one.

-Did it work, Joan, did you look after him?

-I did, I did, yes...

-It didn't go...

-..but he stopped so that was fine.

Did he stop at the right time, though? That's the big question.

-Yes, he did. He did.

-No, it went all right, didn't it?

-Yeah.

So is this a bit of a collaboration,

a bit of a business we've got here, the two of you?

-Erm...

-Yes.

-Well, maybe, partly. Yeah, we do...

When we come up here, it will be my mum who comes up here

and helps do a lot of the work

-but also I'll be dragging my father-in-law...

-Yep.

..and the inspector here will check that we've done everything right.

-Joan's your mother-in-law, yes, just for the record.

-Yes.

-So, from that point of view, it's a bit of a family affair.

-Good.

-Yeah.

My wife's just sitting at home, making sure...

-I think this is my wife's conscience here.

-Yes. Keep an eye.

Did you go just for this one or did you have other ones in mind?

No, just for this one

because I had a property in the same complex as a student,

I hence knew the area so that I was quite confident in what it was.

Not only does Charles know this building from his university days,

he and his wife also have two other properties in the same complex,

both of which they currently rent out.

What's his plan for this one?

-Have you decided what I'm going to do?

-Yes.

Thought so, firmly at the purse strings.

Really clean throughout and just to update it a bit.

Not a complete gutting, it doesn't need that

but just around maybe 1,500, two grand's worth of work.

What about that beautiful pink bathroom we've got?

-It... Yeah.

-Yes.

-The tiles are changing, aren't they?

Yeah, we've already planned that. We're going to work out how to...

-The suite's all right in itself.

-Yeah.

We've already been down various DIY places and everything else,

we know what tiles we're going to use, we'll bring out the pink in it

and that will really be around it.

OK, the bathroom will remain in the pink.

Personally, I would have got rid of it

and replaced it with a white suite but keeping it obviously saves money.

So, you say your budget was...

I think somewhere in the region of 1,500 and 2,000.

I wouldn't expect us to spend any more than that.

We'll be doing the labouring so I don't suppose we'll be paid,

-it'll come...

-I've got to be at work.

I did hear a "we" there so are you getting involved, Joan?

The two mother-in-laws, no, the one mother-in-law, one mother.

She will put a boiler suit on, she is known for that.

-You're going to get your hands dirty, Joan?

-Oh, yeah.

-Good.

-I'm a good mate.

-Oh.

I can bring the things and do the teas and clear up.

I'm a good clearer-upper.

-Invaluable.

-Yes.

It is, until you put the paint brush down and it's gone

-because it's being washed.

-It's been put away.

-Oh, that quick?

-That quick, yes.

-Yes, very efficient. Yes.

-Very efficient.

What about the timescale? How long will it take just to touch it up?

-Yeah, how...

-Oh, it depends...

Well, I'm only going to give my mum a few weeks.

-She just needs to get on with it.

-Yes, yes!

-Night and day.

-To be honest, we can do...

-Shift work, we're going to do.

-It's all right.

-It would be no more than...

To be honest, it's not a week... It's probably a week's solid work.

-Yes.

-It will properly take a month, just trying to do it in and out.

-That's it.

-Will you all be here at the same time?

Like you said, Joan can shift work, will you just come in and go out?

Will you come in together?

Probably two will come in at a time, but Charlie won't

because he'll be working. It'll just be weekends we'll get him involved.

Otherwise, it will just be the ladies

doing the manual work.

-You'll let him involved or you'll get him involved?

-We'll get him involved.

-It is a pretty straightforward turnaround, Joan, isn't it?

-Yes, yes.

-There's no hidden things or anything else like that.

-No, no, we hope not.

I think you'll get it done,

with all the help you're going to get, Charlie.

-Yes.

-All those ladies around you.

-Like fairies arriving in the night.

-He'll make me do some of it.

-Joan, good luck.

-Thank you.

Nice to have met you. Charlie, I wish you all the best.

-Good luck.

-Thank you.

-Thanks.

Joan and Charlie, what lovely people and a great relationship.

Now, Charlie knows this location from his university days very well.

That's why he's bought here again, close to the university,

close to the city centre.

He's got a small budget and a very short timescale to get the work done.

Will he get it finished? You can find out later on in the programme.

Coming up in Kent, not everyone wants to buy a shop.

But if it's space you want, well, it's got it in abundance.

Back in Nottingham, is Charlie looking after his workers?

-No, I didn't get paid. It was just love.

-It's all about love.

But first, we returned

to the heart of the beautiful Cumbrian countryside.

It was here that we first came across a three-bedroom bungalow.

Now, the grass could do with a good cut

and the interior may have needed a bit of upgrading

but what this place really was all about

was the fantastic hillside views.

That's what really wound me up.

It's not making the most of it with that window

so what I want to see is French windows

or, even better, bi-fold doors.

Knock the whole wall down, make it all window.

Those bi-fold doors, open that out to the garden, look at the view...

Got to be done.

Yes, I was almost ready to knock the wall down there and then

and just drink in more of that scenery.

I wasn't the only one enticed by this bungalow's location.

Whitehaven-based couple Paul and Jennifer

had also fallen under its spell

and they snapped it up at auction for £156,000.

So, as if it isn't obvious, why did you want to buy this place?

Well, we really fancied getting somewhere in the country

as a weekend holiday retreat.

As soon as we came here, saw this was up for auction,

saw those views out there, we sort of fell in love with the place.

And it really must be love because one of the conditions

of the sale was to install a septic tank and soakaway for the property.

With that costly work in mind,

Paul had given himself a healthy £24,000 budget

and a timescale of four to five months.

Had Paul's love for the property stood the test of time?

Well, now, nearly 20 months later, we're back.

# Cos today is a great day

# For falling in love, falling in love... #

Wow, the outside has been transformed with fresh paintwork,

newly varnished woodwork and the garden given a good tidy-up.

So, at last, the bungalow looks more suited to its surroundings

but what's it like behind the door?

# How we feel inside

# Cos today is a great day

# For falling in love

# Cos today is a great day

# For falling in love, falling in love... #

Oh, yes, it's got those patio doors I hoped for. I love it.

MUSIC CONTINUES

But it's also got a much more homely look about it.

Having started the work here,

we really fell in love with the place and especially the location.

We decided we really didn't want anyone else to live in it.

That left us a choice of using it as a holiday home

but once we found out we were expecting our first child,

we very much decided it's much more

child-friendly than where we're currently living.

It's got a garden, it's in the country so we thought it was

much more appropriate for us to bring up our child here.

Yes, I can fully understand why Paul and his wife Jennifer

wanted to move here because what a family house this now is...

MUSIC CONTINUES

..with two large bedrooms finished and furnished...

..and that smaller bedroom,

well, that's six-month-old Holly's, of course.

Then, there's the refurbished bathroom, lovingly tiled by Paul.

# It's a great day

# For falling in love... #

It is beautiful here

but living in the countryside does come with some potential downsides

so what about that drainage issue that needed to be sorted out?

A condition of the purchase

was for us to install our own septic tank

because currently, the bungalow is sharing a septic tank

with our next-door neighbour.

Having moved in and gotten to know them

and got quite friendly with them,

essentially, we agreed between us

that we don't need to install our own septic tank.

We could just keep on sharing theirs,

which has obviously saved us quite a lot of money.

Well, that's a result and it just goes to show,

it always pays to be on good terms with your neighbours.

Having saved on sewerage,

it gave Paul an opportunity to splash the cash elsewhere.

OK, this is the wood burner we've had installed.

We weren't originally planning to do it but because we saved

a lot of money on some of the other part of the build,

we've installed it. We absolutely love it.

It really makes the room nice and warm and cosy.

Yes, the wood burner is the perfect choice for the bungalow

but how much has it cost to turn this into a warm, cosy home?

Even though we've not put the septic tank in

we've spent probably in the region of 24,000

so we've not used our contingency but we've used everything else.

A £24,000 spend on top of his £156,000 purchase price

takes Paul's total cost to £180,000.

Clearly, Paul and his family love this bungalow

but do two local property experts also feel the love?

What does the auctioneer who saw it last time think?

I think the work that they've carried out

is very, very good actually.

They've put the fire in

the doors at the back letting more light in,

I think it's a really good job

and I'm very, very impressed with it actually.

Well, as much as this property makes a nice home,

this is all about its location.

We're situated inside the Lake District National Park

and actually only a few miles from England's highest mountain,

Scafell Pike.

As I'm sure you've seen, the views out the back absolutely stunning

and that has to be its main selling feature.

Paul certainly isn't planning to sell this any time soon

but having spent £180,000 to make this his home,

has he also made it a good investment?

I think if this property was exposed to the sales market,

I think you would see an asking price of £225,000.

I'd expect it actually to be worth around £230,000.

They're very good.

I mean, we're not interested in ever selling the property

but it's always nice to know that you've actually made a bit of money,

should you ever need to.

Yes, and that bit of money currently stands between £45-50,000,

less the normal taxes and expenses of course.

The agent also reckons on rental figures

of between £600-675 per calendar month,

which would be a possible yield of around 4-4.5%

but somehow, I don't think

any of those numbers greatly matter to Paul.

I honestly believe you can't get a more beautiful place to live.

The views out here are spectacular

and you get to see them every day when you get up.

# As soon as I wake up

# Any night, any day

# I know that it's you I need

# To take the blues away

# It must be love, love, love

# It must be love, love, love... #

Well, for some people,

their passion might be for the hills and mountainside

but for many, it's a place near the sea that is their heart's desire.

With the town of Folkestone on the Kent coast,

not only do you get the sea but a town full of shops, old and new

and so today, I'm doing a bit of retail therapy.

# Shop, shop around

# Uh-huh-huh, shop, shop around... #

Coming down this high-street with all these shops everywhere,

you've probably guessed I'm not here to see a house, oh, no.

I'm here to look at a commercial venture.

It's in here, it's on the ground floor and basement

and the guide price, £60-£62,000.

Now, it looks pretty empty. I'm going to investigate.

# Shop, shop around

# Uh-huh-huh, shop... #

What a shop! Look at this.

Wow, nice chrome handlebars,

contemporary glass reflecting lots of light. An incredible space.

Look at this ergonomic, curvaceous counter.

"Hello, madam, could I book an appointment, please?"

I mean, it's a lovely place to work.

Pink on the walls, wow.

Now, it currently has A1 usage so it can only be used for certain things,

a post office, an undertaker's, an internet cafe perhaps.

You'd have to check with the local council.

You can't just rock up here and do what you want

although I am going to do what I want

because I've always wanted to do this.

Ah! OK.

Hello, madam. Is it just a wash and a cut today?

Been on holiday recently?

Ooh, just relax.

(Oh, great.

(I've always wanted to be a hairdresser secretly. Sh!)

# Who cut your hair?

# Who cut your hair?

# Who cut your hair?

Now, back with my property developer's head on.

What to make of this place?

Well, it clearly wouldn't take much

to start it up again as a hair salon.

It really is all here, from the sinks to the towels to the magazines

but is that really the best option?

Time to explore downstairs.

Well, when this shop was decked out,

I can honestly say I don't think any money was spared. It's fantastic.

Look at that lovely staircase

and as hairdressers go, well, it's got everything you need here -

little kitchen area over there,

two really good-sized stock rooms if you like.

Now, it is a basement, it's quite dark

although there is some light flooding through

from the big window up there.

If you come over here, there's a few steps leading out to a doorway

so that's the only natural light you're getting in here

but if it's space you want, well, it's got it in abundance.

Plenty of space, all the facilities,

there's even parking at the back

but remember, we're looking at a closed shop

and if this clearly quite swish hair salon couldn't make a go of it here

then alarm bells should be ringing

for anyone planning a similar venture.

So, what's the best approach for this place?

Time, I think, to get some advice from a local estate agent.

As far as this property is concerned,

if I were the owner of this property, I'd be looking to get consent

to convert it to residential use

because, certainly in this particular street,

which is a second level commercial district of Folkestone,

there is not a lot of demand for small commercial space.

You might see if you look along the street

that there are a number of empty properties

and I don't see that situation changing.

Residential certainly might seem like the best option

but there would be a few hoops to jump through

before that would be possible.

For a start, you'd have to get the change of use

from commercial to residential and there's no guarantee

that the local planning department would grant you this

so you might be stuck with it as a commercial space and then what?

I would look at getting myself a long-term tenant.

Once that tenant's in place,

even if they're a lower rental than would be the norm,

let's say £700 a month,

that would net you around £7-7,500 per year,

which means that you might be able to sell on at £75,000.

Mmm, well, for a property that was guided at £60-62,000,

that might just work but what about the potentially more lucrative route

of turning it in to a residential property?

If you could convert this in to a residential property,

say a two-bedroom, could be a luxury apartment with parking at the back,

nice central location,

you could probably sell this on for around £100,000

or rent it for in the region of 600, maybe £650 per calendar month.

If planning permission was granted to change it in to residential,

I think this could be a really exciting project

and there could be money to be made here.

Let's see who thought it was a cut above when we went to auction.

OK, over the page, lot 30,

vacant commercial premises,

combination over ground floor and basement,

you've got parking there, previously let at £9,000 per annum,

guide of 60-62.

Where will you start me at this, at 50, can I say?

At 50 anywhere, 50, I'm on the way...

52 now, can I say...

52, 54...

53, 56...

56...

56, 58...

60, can I say, £60,000 to the lady in the aisle, no?

Was that a bid, madam?

At £60,000, was that a bid? Yes?

£60,000 I have, 62, can I say...

If I don't see any more bids, I shall sell, then...

Lady's bid in the aisle at £60,000...

For the first time...

For the second time...

Third and final time, if you're quite sure and all done...

Sold to you, madam, at £60,000.

So, the hammer fell at £60,000

and the new owner of the shop in Folkestone is Basilissa.

Basilissa lives 40 miles away in Chatham,

where she's currently employed as a care worker

but she also teaches dance to the elderly

and so I was intrigued to know

what she had planned for this former hair salon.

Basilissa, congratulations.

So, here we are in Folkestone.

Are you pleased with what you bought?

I'm sorry to disappoint you,

no, I bought the wrong place, the wrong lot.

I was actually bidding the land that is in New Romney

then, I actually hands on it because I thought that's what I was bidding

and when I came out, paid all the deposit,

I was handed lot 30 which is this shop.

Stop there! So, hold on a minute, you bid for lot 30

but you wanted to bid for a different lot altogether

and you got mixed up?

I really don't know what happened. I just... Something like that.

So, you've ended up buying something that you didn't know anything about

and didn't want?

# Oh, no

# I got that sinking feeling

# Oh, no... #

Oh, no, indeed.

Having gone along to the auction to try and buy a bit of land

to build a house on,

Basilissa hadn't realised that the land lot had been withdrawn

and following the order in her catalogue,

she got muddled and bought this salon by mistake.

Eek! Oh, no!

Oh, dear.

# Oh, no... #

When did you first see this building?

That was when the auctioneer sold me, we came here, only outside.

I couldn't hardly see in and I was saying, "Oh, my God."

"I'm going to resell it. No way, I'm not doing anything, just resell it.

"Tidy up the paperwork," as the auctioneer told me

that when it's completed, they will sell it for me.

When is the first time you saw it on the inside

and had a good walk around?

Today.

So, now you've seen it

and you've walked around and you've seen upstairs and downstairs...

I didn't like it but now I like it.

Do you now love it?

-Well, I like the way it's bigger than my flat.

-So, you love this?

-You love being in this space?

-It's bigger, yeah.

Let's move on and try and make a positive out of this, Basilissa.

Are you any good at cutting hair?

No.

You're not? Oh!

See, had you said to me, "I am amazing at cutting hair,"

-we could have done a big high-five.

-I know.

Right, so, what are you going to do with this shop?

All I can do now is, looking at the surroundings,

I think I will just say, "Well, children and dancing."

-You're thinking of turning it into a little dance shop?

-Yeah.

-Or maybe like a Music With Mummy type environment?

-Yeah, yeah.

What about your downstairs? You've got a big basement down there

-but there's not a lot of natural light.

-Yes.

What would you do with something like that?

If the council will permit me,

I would like it to be a living accommodation for myself.

If I had been allowed to live there, I will live downstairs

and I will open as a studio

and then I can look after the business while I'm here.

You are going to try and make this shop work for you?

I am.

Well, you have to give Basilissa her dues,

she is determined to turn a negative into a positive

though I'm really unsure about whether she will get

that hoped-for permission to turn the basement into a flat

but the dancing studio idea might just have legs.

# Let's dance

# Put on your red shoes and dance the blues... #

You're quite unusual. I can tell you've got quite a style.

-How many pairs of shoes is it that you own?

-I've got 251.

Where do you keep all your shoes? You've certainly got enough space.

Maybe you just paid £60,000 to put all your shoes in here.

Under the bed,

the height of the bed and the width of the bed is the width of my shoes,

under the bath, and in the toilet and in the shower and in the kitchen.

Basilissa, it's been lovely meeting you.

-I really don't know what to expect when we come back.

-Yeah.

Will you own it? Will you have sold it?

Will you be dancing here with children?

-I hope so.

-I hope so...

because that's the only one I'm good at.

Cutting hair?

-Uh-uh!

-Uh-uh.

-Good luck.

-Thank you very much.

-Thank you.

So, this may not be the lot Basilissa intended to buy

so take note, viewers, it's easier to do than you think, really.

She is prepared to try and make it work but what I want to know is how?

You can join me later on in the programme

to find out how she gets on.

We've already checked on the progress of one property

but what about the other two?

Months have passed, there's been plenty of time.

Has the work being done?

Yeah, well, we all know things don't always go to plan.

Let's find out.

It was not far from Nottingham University and the city centre

where we found a block of purpose-built apartments.

Set in pleasant communal gardens,

it was here on the ground floor that a one-bed flat went up for auction

and this slightly dated property was bought for £70,000

as a rental investment by Charles.

Along with mother-in-law Joan, he had a ready and willing workforce

to carry out the necessary tasks

to give this property the little lift it needed.

So is this a bit of a collaboration,

-a bit of a business you've got here, the two of you?

-Um...

-Yes.

-Maybe partly, yes.

We do, when we come up here, it would be my mum that comes up here

and helps do a lot of the work, but also, I'm dragging my father-in-law.

-Yes.

-And the inspector will check we've done everything right.

Joan's your mother-in-law, yes, just for the record.

What about the timescale? How long will it take, just to touch it up?

How, oh...

I'm only going to give my mum a few weeks, she needs to get on with it.

-Yes! Night and day.

-To be honest...

Shift work we're going to do, it's all right.

It would be no more than a month, just trying to do it in and out.

With a £2,000 budget,

chartered engineer Charles was hoping just to oversee the work,

while he let his band of relatives get on with the task in hand.

Now six weeks later, we're back to see if they've done him proud.

# Living up, living up Living up

# Living up to

# Living up, living up Living up

# Living up to

# Living up, living up Living up

# Living up to

# Living up, living up Living up

# Living up to... #

Well, it looks very much like job done.

So, who should step forward and take a bow?

Charlie's mother did all the work.

And I just did the tidying up and the cleaning after her.

But she did most of it.

They've been in here all week, tidying up,

-while I've been away on holiday.

-Yes.

-The truth be, have it.

# Living up, living up

# Living up to

# Living up, living up Living up

# Living up to

# Living up, living up Living up

# Living up to... #

It's all right for some.

Charles went off skiing while his mum, Susan,

who had renovated properties before,

got on with the jobs like painting the dark wood

and re-tiling the bathroom

and Joan got cleaning and I hope she charged the going rate.

-No, no, I didn't get paid. It was just love!

-It's all about love.

Keep it in the family.

Charles has played the family card perfectly.

Though in truth,

I think they all really enjoyed doing it and working together.

No, I think it went very well.

It wasn't too big a job for the older ones to start on.

Yes, that's a good point, actually.

Don't take on knocking down walls

and if you're going to employ pensioners!

THEY LAUGH

Sound advice there, Charles.

I must add that to my list of dos and don'ts, but equally I would add,

don't knock what these pensioners are capable of either.

The work they've done here is already reaping its rewards.

We'd already spoken to people

to rent out the other properties for tenants,

and they've already now found a tenant ready to come in,

so, should be within the next couple of weeks we get them.

A tenant lined up, work done.

But did that free labour keep the cost down?

Yes, we set a budget, probably around 1,500 to 2,000,

we've come in probably just a little bit under it

and a few changes, flooring went down, other things weren't changed,

so we're quite happy with what we spent, so it was fine.

£2,000 spent on top of the £77,000 purchase price

will take Charles's total cost to £79,000.

And I think they've done all that was needed here.

But what do two local estate agents

make of this tidy little one bed flat?

Starting with the agent who saw it last time.

Since they've done the work, I like it.

It's nice, fresh, light,

and I get the impression they haven't spent too much.

Sometimes less is more.

The property is small, but perfectly formed, as people often say.

I like the open-plan dining kitchen, with a nice aspect

and small seating area with views over a small open-plan garden.

The negatives are probably lack of central heating,

it's electric storage heating,

kitchen probably requires upgrading, but it's good enough.

The property's been modernised to a degree, I guess,

but disappointed to see

the original kitchen and bathroom are still in place,

although with new smart tiling and new decorating

it does lift the property.

OK, so they could've gone a bit further,

but this is an investment, after all.

And though they've already got a tenant lined up,

currently, how would this £79,000 investment fare on the retail market?

I see this property on the market within the region of 80 to £85,000.

I think this will achieve around about £85,000.

I would expect to put it on market at 89,950 to fully test the market.

I think valuation-wise, probably where I thought they would be.

A little bit high, actually,

a little bit high, but it's fine with me.

Yes, good.

Well, there would only be quite a small profit on resale.

Maybe £5,000 at best,

but this is really all about its rental potential.

With regards to rental, I see this on the market

within the region of 475 to £525 per calendar month.

On the rental market,

I would expect this property to achieve £475 per calendar month.

Actually, I was expecting around 500 and we've rented it for 525,

so we're pretty happy and they're pretty close. Pretty much spot on.

The £525 per calendar month, Charles is getting would generate

a healthy annual rental yield of just below 8%.

So I think you can chalk this one down as a success.

But are Charles and his band of pensioners

planning more property projects?

What next at the moment?

We just go on hold, we've finished this,

my wife's quite happy I've stopped doing anything for a while

and we'll see if any other opportunities come in the future.

Yes. I agree.

-Yeah.

-Good. I've got sanctioned.

-Yes!

SHE LAUGHS

It was in the Kent coastal town of Folkestone

where we first saw a commercial property that was up for auction.

This former hair salon was, as retail spaces go, quite impressive.

But this story wasn't really about the property,

it was more a salutary tale about the pitfalls of auction bidding.

Sold to you, madam.

# But what if we got it all wrong? And what if we got it all wrong?

# What if we got it all What if we got it all wrong? #

Basilissa, are you pleased with what you bought?

I am sorry to disappoint you, no.

I bought the wrong place, the wrong lot,

I was actually bidding the land that is in New Romney

then, I actually hands on it,

because I thought that's what I was bidding, and,

when I came out, paid all the deposit,

I've been handed lot 30, which is this shop.

So, you've ended up buying something

that you didn't know anything about and didn't want?

So, having paid £60,000 at auction for a former hair salon

she didn't want, Basilissa, you might have thought,

would've cut her losses and put it straight back into the next auction.

But she was made of sterner stuff.

What are you going to do with this shop?

What I'm going to do now, from looking at the surrounding,

I think I will just say, children and dancing.

-You're thinking of turning it into a little dance shop?

-Yes.

And along with her dance studio plans,

she was hoping to convert some of the space into a flat

for her to live in.

But it was the dance studio that I was really excited about.

# Calling out around the world

# Are you ready For a brand-new beat?

# Summer's here And the time is right...

# For dancing in the street For dancing in the street. #

But were the streets of Folkestone ready to waltz their way

on to the dance floor?

Well, now, nine months later, we're back with plucky Basilissa

to see what's in store for the shop space.

UPBEAT MUSIC

Oh, wow! Don't see much floor space for dancing in here.

UPBEAT MUSIC CONTINUES

# I'm just sick of hearing news # I'm just sick of hearing news... #

I opened a second-hand shop,

mainly because over the years I have collected so much stuff.

Yes! Basilissa decided to make the most of the space

while she waited for planning permission to be granted

on turning part of the property into a residential space.

Permission has now been thrown out completely,

but hopefully when everything's done,

I can do what I really want to do in the shop.

Mm. So, Basilissa has so far been turned down three times

in her attempt to convert some of the space

into residential accommodation,

but what is it exactly that she's been applying for?

I'm really wanting to have,

the two-bedroom flat will be mainly upstairs,

because of the lights and then the shop,

mainly downstairs, where the two rooms are.

But I will have a small down here, so people can see the shop.

Currently she's submitted plans

for a two-bed flat across the two levels,

with the bulk of the living space at street floor level

and the basement area is to be split in half,

with the front area remaining as a shop.

While the back area would be extra rooms for the flat

and the flat would be accessed via the rear entrance.

So, what happened about the dance studio idea?

# Everybody dance now! #

In the dancing, I found out that, not much people I can teach.

At the moment, tuition, one is adult, and one is 11 years old

and one's away, that's not going to make my income.

So I've got to change to suit my business.

I need the business to grow.

But is a second-hand shop really going to bring her in enough money

to grow into a successful business venture?

Basilissa purchased the shop for £60,000

and so far has spent £2,000 on submitting plans,

bringing her total cost to £62,000.

So, is she on the right track?

What do two local estate agents think?

First, the agent who saw it last time.

It's now full of goods for sale,

but other than that it's the same building that I saw before.

It's currently being used as a second-hand shop.

Any other kind of shop would probably be better at the moment,

second-hand shops don't give very high yield for rentals.

The basement would make a very good flat.

I don't think there's need for any commercial aspect

to this building at all.

I would like to see a change to perhaps a two-bedroom flat,

with parking out the back,

it would give it quite an enhancement in value

and also you'd have people living here,

happily paying their rates and that would be the right solution.

There might be a strong argument to convert the shop for residential

but, so far, Basilissa has been unable to do so.

But could her £62,000 investment

still be OK if this remained a commercial space?

As a commercial property, for sale, in the current market,

around 70 to £75,000.

If you were to let it, about £750 per calendar month.

As a commercial unit, it could be sold for 65 to £75,000

and it could be rented for 625 to £675 per calendar month.

So, what does Basilissa make of those figures?

If someone will pay for it, now, I will take it.

BASILISSA LAUGHS

Yes, I can understand why she might want to move on,

but would she potentially be leaving behind

a more lucrative opportunity

if her plans to convert it into a two-bedroom flat were approved?

If we could convert this into a two-bedroom apartment,

then I think it would be possible to sell it

for somewhere in the region of 125 to £130,000

and on the rental side of things, 600 to £650 per calendar month.

As a two-bedroom flat it could be sold for around 110 to £120,000

and the rented for 550 to £650 per calendar month.

I think if I get the permission now,

I would go ahead with the two-bed flat. Yeah, that's great.

Yes, no wonder she's keen. Even with conversion costs,

the two-bed flat option just might make Basilissa a profit

and turn this potential financial disaster into a success.

So, despite all the problems along the way,

how does she reflect on her unexpected purchase?

I am very happy. As I said, to myself,

I was happy before the alteration, I'm happy now.

It's just a hiccup about the permission for now

and about this thing, but it's only a hiccup,

but I have always been happy here.

That's all we've got time for on today's show.

But there are loads of property projects happening

up and down the country and we'll have plenty more of those for you

next time here on Homes Under The Hammer.

-Goodbye.

-Goodbye.

-Goodbye.