0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:06Investing in property can be a daunting prospect.
0:00:06 > 0:00:10But it doesn't need to be. The trick is finding the right property for your particular needs.
0:00:10 > 0:00:12So, how could you do that?
0:00:12 > 0:00:15One way could be by visiting your local property auction.
0:00:41 > 0:00:45All different kinds of properties go up for auction every day.
0:00:45 > 0:00:48It's all about making the right choice though.
0:00:48 > 0:00:51What did today's buyers on the programme decide to go for?
0:00:52 > 0:00:55A day of hidden nasties on Homes Under The Hammer.
0:00:55 > 0:00:58Could this sweet cottage near Norwich be sinking?
0:00:58 > 0:01:01This would be a major concern to me, cracks of this size.
0:01:03 > 0:01:06In East Ham, London, a two-bed flat is structurally sound
0:01:06 > 0:01:09but there's a problematic short lease.
0:01:09 > 0:01:11Mortgage lenders hate short leases.
0:01:13 > 0:01:17And we return to Maryport where a mid-terrace's problems were obvious.
0:01:17 > 0:01:19That's not good!
0:01:19 > 0:01:22But could there be a hidden gem?
0:01:23 > 0:01:26All these properties were bought at auction and we'll find out who
0:01:26 > 0:01:30got them and how much they paid when these homes went under the hammer.
0:01:30 > 0:01:32Well done, sir.
0:01:37 > 0:01:4015 miles west of the city of Norwich in Norfolk,
0:01:40 > 0:01:43lies the market town of Dereham.
0:01:43 > 0:01:46And it's here, tucked along a gravel road,
0:01:46 > 0:01:50I think I've tracked down an interesting auction lot.
0:01:50 > 0:01:53The property I'm here to see today is a three-bed, detached bungalow
0:01:53 > 0:01:58which is a mile outside Dereham with a guide price of £130,000-£140,000.
0:01:58 > 0:02:00Let's take a look.
0:02:00 > 0:02:04'Now, the auction catalogue says this house needs some remedial repair.
0:02:04 > 0:02:08'Although it looks very cute, there might be some serious issues.'
0:02:08 > 0:02:11This takes you back, or should I say, it takes me back a little bit
0:02:11 > 0:02:14to houses in Leicester I used to live in.
0:02:14 > 0:02:16Very symmetrical, two rooms at the front.
0:02:16 > 0:02:20Nice sized room to the left and this would have definitely been
0:02:20 > 0:02:24the lounge area because it's got a very pretty old-fashioned fireplace.
0:02:24 > 0:02:29Down the hallway into this room, with a fireplace to the right.
0:02:29 > 0:02:31Possibly the dining room.
0:02:31 > 0:02:34Two more rooms in there which would be bedrooms.
0:02:34 > 0:02:36Into the kitchen, nice long kitchen.
0:02:36 > 0:02:38Big size.
0:02:38 > 0:02:42And the bathroom in a nice pink colour.
0:02:42 > 0:02:45But this kitchen has surprised me. It's long and it's thin
0:02:45 > 0:02:46but it could be the hub of the house.
0:02:46 > 0:02:48I'm pleasantly surprised.
0:02:49 > 0:02:54But if you're more a fan of a kitchen diner, as a lot of people are nowadays,
0:02:54 > 0:02:58then you might not be as fond of the kitchen as I am.
0:02:58 > 0:03:03In which case, this 1930s living space will have to be re-jigged
0:03:03 > 0:03:06and maybe the kitchen and the fireplace will have to go.
0:03:06 > 0:03:10Upstairs, the bedrooms need bringing forward 80 years or so as well.
0:03:13 > 0:03:16But back into this century, there's an age-old problem
0:03:16 > 0:03:17that needs serious attention.
0:03:21 > 0:03:24This would be a major concern to me, cracks of this size,
0:03:24 > 0:03:27not just here but all over the property,
0:03:27 > 0:03:30are definite signs of structural movement.
0:03:30 > 0:03:33What you would have to do is get yourself a very detailed survey
0:03:33 > 0:03:35to find out what's going on.
0:03:35 > 0:03:39A structural survey will tell you if the house has been, or is still,
0:03:39 > 0:03:44moving due to issues with foundations or the soil underneath.
0:03:45 > 0:03:48This house could need underpinning.
0:03:48 > 0:03:51That means extending or supporting the foundations,
0:03:51 > 0:03:53a lot of digging and a lot of concrete.
0:03:53 > 0:03:56An alternative could involve strengthening
0:03:56 > 0:04:00the soil beneath using a resin which is injected beneath the footings.
0:04:00 > 0:04:04Whatever method you choose, a big bill is on the cards.
0:04:04 > 0:04:07But I think stepping out the back door might just make you feel
0:04:07 > 0:04:08it could be worthwhile.
0:04:10 > 0:04:11What an amazing garden.
0:04:11 > 0:04:13It goes back a long way
0:04:13 > 0:04:16and it looks like it's been kept incredibly well.
0:04:16 > 0:04:20The greenhouse there where they must've been growing vegetables at some stage.
0:04:20 > 0:04:21But it's really nice.
0:04:21 > 0:04:25A bit of time, a bit of effort, a bit of TLC in this back garden
0:04:25 > 0:04:27and it could be absolutely lovely.
0:04:27 > 0:04:31Yes, it wouldn't take much because it really is in good shape.
0:04:31 > 0:04:33I love it.
0:04:33 > 0:04:35And for any would-be gardener,
0:04:35 > 0:04:38this alone would draw them to the bungalow.
0:04:38 > 0:04:41And the space at the back would offer up an opportunity to extend
0:04:41 > 0:04:43the bungalow outwards.
0:04:44 > 0:04:47And if you so wished, of course, you could go up.
0:04:47 > 0:04:50So there are options here and bags of potential.
0:04:51 > 0:04:54But equally, you can't ignore the fact that it will cost you
0:04:54 > 0:04:57a fair amount of money to get this up to modern standards.
0:04:59 > 0:05:02So, is it worth the time, effort and money?
0:05:04 > 0:05:06What does a local estate agent think?
0:05:07 > 0:05:10Position and the location are everything.
0:05:10 > 0:05:13It's got a great garden, it's close to the town centre,
0:05:13 > 0:05:16very close to good transport links into Norwich.
0:05:16 > 0:05:19It's got an awful lot going for it.
0:05:19 > 0:05:20Good location, good plot...
0:05:22 > 0:05:24..but how could it be improved?
0:05:24 > 0:05:29You could look at extending it into the roof, I guess.
0:05:29 > 0:05:32I would take some of the ground floor accommodation away.
0:05:32 > 0:05:36But the area and the amount of garden it's got would stand improvement in that way.
0:05:38 > 0:05:41Yes, but financially would that add up on a property
0:05:41 > 0:05:44that had been guided at £130,000-£140,000?
0:05:46 > 0:05:51Once renovated I think this would be something in the region of £200,000.
0:05:51 > 0:05:54If you could make this into a four-bedroom property by extending
0:05:54 > 0:05:57upstairs, it's going to be limited
0:05:57 > 0:06:00to something around £285,000-290,000.
0:06:02 > 0:06:06Right, so undoubtedly, an extension would add value.
0:06:06 > 0:06:08But it also adds time and costs.
0:06:08 > 0:06:13Something to weigh up when doing any property refurbishment.
0:06:13 > 0:06:15What about its possible rental returns?
0:06:16 > 0:06:20A property of this nature would achieve £650 per calendar month.
0:06:25 > 0:06:28If you have the time, the vision and the investment,
0:06:28 > 0:06:31this property could be perfect for you.
0:06:31 > 0:06:33If you get it anywhere near the guide price
0:06:33 > 0:06:35it's going to be a very worthwhile investment.
0:06:35 > 0:06:37Let's see how it got on when it went to auction.
0:06:40 > 0:06:41Moving onto lot 18.
0:06:41 > 0:06:45It is a detached bungalow probably built around the 1930s.
0:06:45 > 0:06:47I've got one or two bids here
0:06:47 > 0:06:50so I can kick you in straightaway at £120,000.
0:06:50 > 0:06:53I'm in at £120,000.
0:06:53 > 0:06:56The bid's with me and I'm going to take it in twos is if I may.
0:06:56 > 0:06:58At £120,000. 122, do I see?
0:06:58 > 0:07:00122?
0:07:00 > 0:07:02124. 126, 128.
0:07:03 > 0:07:05128. 130.
0:07:05 > 0:07:09No. At £128,000. Are you all done the? At 129,000?
0:07:09 > 0:07:12Thank you, fresh hand. 129,000 and I'm out.
0:07:12 > 0:07:14So it's with you at 129,000.
0:07:14 > 0:07:17I'll take half, if you like.
0:07:17 > 0:07:18129,500.
0:07:18 > 0:07:21129,500. 130.
0:07:22 > 0:07:26Shake of the head. So, £129,500, then.
0:07:26 > 0:07:29Are you all done then at £129,500?
0:07:29 > 0:07:31For the first.
0:07:31 > 0:07:34For the second time. Are you all done at £129,500?
0:07:34 > 0:07:38Once again, there's three of you there all bid strongly.
0:07:38 > 0:07:41Can't sell it to you yet, so speak to us afterwards and we might be
0:07:41 > 0:07:44able to do something but any one of you, come and speak to us.
0:07:44 > 0:07:47The bungalow, as happens with many auction lots,
0:07:47 > 0:07:50didn't meet its reserve price on the day.
0:07:50 > 0:07:53But that doesn't always mean the end of the story.
0:07:53 > 0:07:56In this case, a deal was done afterwards.
0:07:56 > 0:07:58Oxfordshire-based Val bought it.
0:07:58 > 0:08:01She joined me back at the property with her project manager, Joe,
0:08:01 > 0:08:03to tell me more.
0:08:03 > 0:08:06- Val and Joe, nice to meet you both. - Yes.- Congratulations.
0:08:06 > 0:08:08Thank you, very much.
0:08:08 > 0:08:11Tell me about the auction experience, first and foremost, when you found this property.
0:08:11 > 0:08:15Well, I looked at several properties and wanted to buy at auction
0:08:15 > 0:08:19something that needed some work, having done one or two before.
0:08:19 > 0:08:21This one didn't sell.
0:08:21 > 0:08:25So we went away disappointed and went back five minutes later
0:08:25 > 0:08:28and, hey presto, I bought this one.
0:08:29 > 0:08:32In fact, Val paid, in the end,
0:08:32 > 0:08:37£130,000 for the bungalow which was the reserve price and her top limit.
0:08:37 > 0:08:40This will be her sixth renovation
0:08:40 > 0:08:43and she plans to sell it on once the work is complete.
0:08:43 > 0:08:46Val, what is your day job?
0:08:46 > 0:08:48I'm retired, really...
0:08:48 > 0:08:50No, no you're not!
0:08:50 > 0:08:52I help my daughter with floristry.
0:08:52 > 0:08:54She's got a very thriving business.
0:08:54 > 0:08:58She's just had a new baby so I do a lot of baby-sitting.
0:08:59 > 0:09:03- Good on you. And yourself, Joe? - Everything, basically.
0:09:03 > 0:09:05I do electrical work,
0:09:05 > 0:09:09I do data communications fibre. I work all over the place.
0:09:09 > 0:09:14I do a fair bit of work for Val, but I also work for other people...
0:09:15 > 0:09:17..as and when I'm required, basically.
0:09:17 > 0:09:19Who's in charge of the project?
0:09:19 > 0:09:22I'm the owner, I suppose I can say yes or no!
0:09:22 > 0:09:25But Joe's project manager, really.
0:09:25 > 0:09:27He's done a lot of research.
0:09:27 > 0:09:29Yes.
0:09:30 > 0:09:32Yes, and in this case research was key.
0:09:32 > 0:09:35The cracks and the condition of the bungalow
0:09:35 > 0:09:37came as no surprise to Val and Joe.
0:09:37 > 0:09:41They've already had professionals in to assess the structural issues.
0:09:43 > 0:09:45We've been told today it's not a problem.
0:09:45 > 0:09:47We just need to know how much.
0:09:47 > 0:09:50The kitchen, there's a small wall to come down
0:09:50 > 0:09:52to make the kitchen bigger.
0:09:52 > 0:09:55En-suite is going in the main bedroom.
0:09:55 > 0:09:58The bathroom is being turned around
0:09:58 > 0:10:01because the door is on the kitchen which is not good.
0:10:01 > 0:10:03That's going to be on the other side
0:10:03 > 0:10:06and have a shower in there as well which isn't there now.
0:10:06 > 0:10:09What about the front of the house? Anything you want to change?
0:10:09 > 0:10:11Erm, yes.
0:10:11 > 0:10:15The parking is a problem here because it's a very nice little road
0:10:15 > 0:10:17but it is small. There's parking for one.
0:10:17 > 0:10:20Most families have more than one car.
0:10:20 > 0:10:22So we're going to gravel the front garden,
0:10:22 > 0:10:25just make it nice and plain with some pot plants.
0:10:25 > 0:10:27And, yes, revamp the front.
0:10:28 > 0:10:30Sounds like a lot of work planed outside
0:10:30 > 0:10:33but what are they planning to spend on renovating inside?
0:10:35 > 0:10:40Probably talking, about £20,000, give or take.
0:10:41 > 0:10:44- Which I think will be more than enough.- So, hands-on?
0:10:44 > 0:10:48I'll do a lot of it but we've got other guys who come in,
0:10:48 > 0:10:51a plumber and a few other people.
0:10:51 > 0:10:54- Carpenter.- Carpenter, plasterer. - Builder.
0:10:54 > 0:10:57- I do a lot of it myself.- You've got the eye for...- I paint.
0:10:57 > 0:11:02- Hands-on as well?- Yes. - And the interiors as well?- Yes.
0:11:02 > 0:11:07- That's all down to you? - I do some of it, not all of it.
0:11:07 > 0:11:09Val is a florist.
0:11:09 > 0:11:11Her creative talents will be used here
0:11:11 > 0:11:15and she assures me she is handy with a paintbrush.
0:11:15 > 0:11:18In a time schedule of two to three months, she'll find plenty to do.
0:11:19 > 0:11:23The plan is, the underpinning will be done in parallel with
0:11:23 > 0:11:26the interior work and she's hoping that will come at an additional cost
0:11:26 > 0:11:29of no more than £10,000,
0:11:29 > 0:11:32taking her total budget to around £30,000.
0:11:34 > 0:11:38Val, you're smiling about everything.
0:11:38 > 0:11:41- I enjoy...- It shows. - ..doing something like this.
0:11:41 > 0:11:45Yes. So, yes, I will be determined to get a good job done.
0:11:45 > 0:11:48I'm semi-retired so I've got some time now.
0:11:48 > 0:11:51I can put my heart and soul in it...
0:11:52 > 0:11:53..and make a good job.
0:11:53 > 0:11:56Will you find it hard to leave when you put your heart and soul into it?
0:11:56 > 0:11:58I think I probably will.
0:11:58 > 0:12:03I've got some friends locally here who have already suggested
0:12:03 > 0:12:05that I move here.
0:12:05 > 0:12:08- They want you nearby. - That isn't the aim.
0:12:08 > 0:12:11- So, I don't know.- You'll have to wait and see.- We'll wait and see.
0:12:11 > 0:12:13Could you change our mind?
0:12:16 > 0:12:18- That's not the intention.- OK.
0:12:18 > 0:12:20I hope it works, I really do.
0:12:20 > 0:12:23- Very nice to meet you. Good luck, good luck, Val.- Thank you very much.
0:12:23 > 0:12:24- Good luck, Joe.- Thank you.
0:12:26 > 0:12:29What a lovely lady Val is and she does have her trusty sidekick,
0:12:29 > 0:12:31Joe, to help, as well.
0:12:31 > 0:12:35But there's a twinkle in her eye. Will she sell it? Or will she stay?
0:12:35 > 0:12:38You can find out later in the programme.
0:12:42 > 0:12:43East Ham in the borough of Newham
0:12:43 > 0:12:46is one of London's many bustling suburbs.
0:12:46 > 0:12:49Its success is due to the arrival of the railway.
0:12:52 > 0:12:56The opening of East Ham train station in 1859
0:12:56 > 0:13:00resulted in a huge boom in this area's growth.
0:13:00 > 0:13:04So, it's not surprising that a lot of housing stock around here
0:13:04 > 0:13:07dates from the Victorian and Edwardian period.
0:13:07 > 0:13:10The property I'm here to see is no exception.
0:13:10 > 0:13:13It's a first-floor flat in this mid-terrace house,
0:13:13 > 0:13:17it's got two bedrooms and it had a guide price of £100,000 plus.
0:13:17 > 0:13:19Let's go inside and take a closer look.
0:13:21 > 0:13:24As you can probably hear, there's a nearby school
0:13:24 > 0:13:27and East Ham Tube station is just a short walk away
0:13:27 > 0:13:30making this a popular area to buy or rent in.
0:13:31 > 0:13:34Straight up these stairs and you're into the flat
0:13:34 > 0:13:38and, oh, you can see it's a little bit dated on the decor front.
0:13:38 > 0:13:42Lots of nice yellow gloss paintwork everywhere.
0:13:42 > 0:13:44You've got polystyrene tiles up there.
0:13:44 > 0:13:47Once you've got over the shock of all that, I think you realise
0:13:47 > 0:13:50this property does need a big, big overhaul.
0:13:50 > 0:13:53And, well, it's not that big in the kitchen
0:13:53 > 0:13:56so you need to rearrange the space here.
0:13:56 > 0:13:59And you don't actually need this any more, and that is the space
0:13:59 > 0:14:02between the kitchen and the bathroom, which is at the back here.
0:14:02 > 0:14:05You've got this sort of little wasted lobby area.
0:14:05 > 0:14:08If you were to keep this configuration and keep this space here,
0:14:08 > 0:14:11you could put a tall fridge freezer there perhaps
0:14:11 > 0:14:13or your washer and your dryer.
0:14:13 > 0:14:17Once you've done a bit of reorganising it could work in here.
0:14:18 > 0:14:21I think the key way to utilise this area properly
0:14:21 > 0:14:24is to fit a combi boiler so you can get rid of that hot water tank
0:14:24 > 0:14:26and really free up that space.
0:14:26 > 0:14:28The bathroom is a good size.
0:14:28 > 0:14:30It doesn't feel cramped at all.
0:14:30 > 0:14:33So, really, it's the kitchen that needs a major rethink
0:14:33 > 0:14:36and stripping out to see what you've got.
0:14:36 > 0:14:38# Think again
0:14:40 > 0:14:42# Think again.. #
0:14:44 > 0:14:47Moving on, a few more stairs and there's a living room.
0:14:47 > 0:14:51Again, the decor is dated and the carpet certainly needs replacing
0:14:51 > 0:14:55but at least the windows have got double glazing.
0:14:55 > 0:14:58Then at the front of the flat are the two bedrooms.
0:14:59 > 0:15:02Currently as it stands, let me get this right,
0:15:02 > 0:15:04this is a two-bedroomed flat.
0:15:04 > 0:15:07I've seen hundreds of properties like this on Homes Under The Hammer
0:15:07 > 0:15:11but not so often have I seen the rooms divided like this.
0:15:11 > 0:15:16This clearly is a partition so this little tiny box room just through here,
0:15:16 > 0:15:20you can hear that, is also a little partition configuration
0:15:20 > 0:15:22that is not really working for me.
0:15:22 > 0:15:27Two-bedroom flats would be more valuable but you've got two tiny
0:15:27 > 0:15:31box rooms, so I do think I would be inclined to take all of this down
0:15:31 > 0:15:35and have one nice big living room here and make next door the bedroom,
0:15:35 > 0:15:38although you might have to talk to the freeholder
0:15:38 > 0:15:40because you will be altering the layout.
0:15:40 > 0:15:42# Think again... #
0:15:45 > 0:15:48There is, of course, another solution to the two tiny bedrooms
0:15:48 > 0:15:51and that's to think about going up.
0:15:52 > 0:15:54Now, when you're looking at top-floor flats
0:15:54 > 0:15:58it's always a good idea to check out the loft space
0:15:58 > 0:16:00and find out who legally owns it.
0:16:00 > 0:16:03Get your lawyer to check your details.
0:16:03 > 0:16:06The freeholder might own the loft or you actually might own that space.
0:16:06 > 0:16:10If you do, it opens up the possibility of extending upwards,
0:16:10 > 0:16:14maybe adding another bedroom and shower room.
0:16:14 > 0:16:17That's something definitely worth investigating.
0:16:17 > 0:16:19# More, more, more
0:16:19 > 0:16:21# How do you like it? How do you like it?
0:16:21 > 0:16:23# More, more, more
0:16:23 > 0:16:25# How do you like it? How do you like it?
0:16:25 > 0:16:27# More, more, more... #
0:16:27 > 0:16:31Yes, the more you can get out of the limited space the better.
0:16:31 > 0:16:34There will, of course, be an added cost with the loft conversion
0:16:34 > 0:16:37but I think it would pay dividends and it would make an enormous
0:16:37 > 0:16:40difference to the whole feel of the flat.
0:16:40 > 0:16:44But it's not just the size of the flat that needs extending.
0:16:45 > 0:16:50One major issue with this flat is that it has a short lease.
0:16:50 > 0:16:53There's less than 58 years left.
0:16:53 > 0:16:56Mortgage lenders hate short leases.
0:16:56 > 0:17:00It'll probably be for cash buyers only with this flat.
0:17:00 > 0:17:03However, these days, you can legally apply to extend a lease
0:17:03 > 0:17:07but only after you've owned the property for two whole years.
0:17:07 > 0:17:10Not great if you don't want to hang onto this flat for that long.
0:17:10 > 0:17:14Of course you have to remember, lease extensions cost money
0:17:14 > 0:17:16so you'll have to factor that into your budget.
0:17:18 > 0:17:19So, to sum up.
0:17:19 > 0:17:23This flat has a short lease, dated decor and two tiny bedrooms.
0:17:23 > 0:17:26Oh, and there's no central heating in the flat
0:17:26 > 0:17:29just a few old electric heaters. Not ideal.
0:17:29 > 0:17:33But even so, I'm sure there's somebody out there this flat with suit.
0:17:35 > 0:17:37# I'm not perfect
0:17:37 > 0:17:40# But I'm perfect for you... #
0:17:43 > 0:17:46But what does a local estate agent think about the property?
0:17:46 > 0:17:48It is still worth a punt?
0:17:51 > 0:17:54First thoughts, really nice property, very good purchase.
0:17:54 > 0:17:57My first priority would be to change the property into a two-bedroom
0:17:57 > 0:17:59by putting a loft conversion in.
0:17:59 > 0:18:02If you couldn't get permission to do it as a two-bedroom,
0:18:02 > 0:18:05I would advise that we take the rooms out
0:18:05 > 0:18:08and do it as a one-bedroom because otherwise
0:18:08 > 0:18:12you've got two single bedrooms and it's not going to be very beneficial for rental market or sale market.
0:18:12 > 0:18:15I'm glad we're agreed on that bedroom issue.
0:18:15 > 0:18:20But a loft conversion could cost around 20,000-30,000 on top
0:18:20 > 0:18:23of all the other renovations and extending the lease.
0:18:24 > 0:18:28So, which bedroom configuration would make the best investment?
0:18:28 > 0:18:32As a one-bedroom flat, sale value with a new lease,
0:18:32 > 0:18:36you're going to be looking in the region of about £180,000-£190,000,
0:18:36 > 0:18:38once it's been refurbished.
0:18:38 > 0:18:41As a two-bedroom with the loft conversion, you'll be looking
0:18:41 > 0:18:44at around £220,000-£230,000, with the new lease again.
0:18:46 > 0:18:49Not bad. What about its rental potential?
0:18:50 > 0:18:52Fantastic area for rental at the moment.
0:18:52 > 0:18:56It'll take a week, a week and a half to rent the property.
0:18:56 > 0:18:59As a one-bedroom flat, you'd be looking at rental
0:18:59 > 0:19:01of about £800-£900 per calendar month.
0:19:01 > 0:19:06As a two-bedroom flat you'll be looking at a rental of between £1,100-£1,200 per calendar month.
0:19:12 > 0:19:15This is a fab flat but it's got a short lease.
0:19:15 > 0:19:18You're going to have to come up with the readies to extend it at some point.
0:19:18 > 0:19:21But even if you bear that expense in mind,
0:19:21 > 0:19:24there could still be some money to be made here.
0:19:24 > 0:19:27Let's find out who was brave enough to bid for this one at auction.
0:19:31 > 0:19:35Leasehold first-floor flat. This one does need a bit of TLC.
0:19:35 > 0:19:38So what do you want to bid for it? Start me at 120.
0:19:38 > 0:19:41120. 122.
0:19:42 > 0:19:45122. 124?
0:19:45 > 0:19:48123. 124.
0:19:48 > 0:19:50At the back. 125.
0:19:50 > 0:19:52126.
0:19:52 > 0:19:56127. 128. 129.
0:19:56 > 0:19:58129. 130. 131.
0:19:58 > 0:20:02Despite the short lease, interest in the flat was quite intense
0:20:02 > 0:20:07and we rejoin with the bidding at £152,000.
0:20:07 > 0:20:11152. 152 and a half. 153.
0:20:11 > 0:20:16153 and a half. 154. 154 and a half. 155.
0:20:18 > 0:20:21155. 155 and a half. 156.
0:20:21 > 0:20:25156. 156 and a half. 157?
0:20:26 > 0:20:29I'm selling here at 156 and a half once.
0:20:29 > 0:20:31156 and a half twice.
0:20:31 > 0:20:33Third and your very last chance.
0:20:33 > 0:20:38Well done, sir. That's yours at 156 and a half. Thank you very much.
0:20:40 > 0:20:44So, the hammer finally fell at £156,500
0:20:44 > 0:20:48and the successful bidders were husband and wife Muzzaba and Raheema.
0:20:49 > 0:20:53Raheema works in local government while Muzzaba is a builder
0:20:53 > 0:20:56and has done a number of property development projects.
0:20:56 > 0:21:00But this was the couple's first property auction purchase.
0:21:00 > 0:21:03And these two already live very close to the East Ham flat.
0:21:03 > 0:21:07In fact, they can see it from their own back garden!
0:21:07 > 0:21:10# Next to me
0:21:10 > 0:21:12# Ooh-oooh
0:21:12 > 0:21:14# Next to me
0:21:14 > 0:21:15# Ooh-oooh. #
0:21:15 > 0:21:19Muzzaba and Raheema, lovely to meet you both. Congratulations.
0:21:19 > 0:21:22Did you think you would get this flat on the day?
0:21:22 > 0:21:25We went there just to see how it goes
0:21:25 > 0:21:27and we didn't think we would get it.
0:21:27 > 0:21:31So what happened? How did you end up walking away with the flat?
0:21:31 > 0:21:34I think your programme inspired us and we started to get interested
0:21:34 > 0:21:37and we said, "Let's raise a hand", and we started.
0:21:37 > 0:21:42So, you are blaming us at Homes Under The Hammer? It's our fault!
0:21:42 > 0:21:45So, what happened? You literally sat there thinking,
0:21:45 > 0:21:47"This is good. We are going to raise our hand."
0:21:47 > 0:21:52Yes. Then we thought we would go up to 40, 140.
0:21:52 > 0:21:55Then my husband just thought we'll continue.
0:21:55 > 0:21:59So you carried on bidding and you weren't even supposed to be buying it on the day?
0:21:59 > 0:22:01I was trying to pull his hand down!
0:22:01 > 0:22:03He didn't listen to me.
0:22:03 > 0:22:06I think we actually gained something.
0:22:06 > 0:22:09OK. So you were a bit naughty on auction day.
0:22:09 > 0:22:14- Your lovely wife was trying to get you to sit on your hands and you were having none of it.- No.
0:22:14 > 0:22:19So did you get a chance to view the property and read the legal pack?
0:22:19 > 0:22:25I did view the property before but I didn't read the legal pack before.
0:22:25 > 0:22:30- So you didn't know it had a very short lease?- We didn't know. - We didn't know, no.
0:22:30 > 0:22:33The good thing is that the lease is extendable
0:22:33 > 0:22:37and we are thinking to extend another 99 years.
0:22:37 > 0:22:40And have you looked into how much that might cost you?
0:22:40 > 0:22:43It's going to cost me about 15,000.
0:22:43 > 0:22:45It could have been worse. That is not bad.
0:22:47 > 0:22:51But a possible £15,000 for the lease extension
0:22:51 > 0:22:54would take their spend here to £171,500
0:22:54 > 0:22:58and that's before they've done any renovation work.
0:22:58 > 0:23:01What do you think you are going to be doing with this flat?
0:23:01 > 0:23:04At the moment, I definitely have to do the kitchen and bathroom
0:23:04 > 0:23:06because they are in very bad condition.
0:23:06 > 0:23:09Obviously the carpet has to be replaced.
0:23:09 > 0:23:12There is the potential for a loft extension and everything
0:23:12 > 0:23:15so I will try if I get permission for the loft.
0:23:15 > 0:23:19- How about the room next-door? Do you want to alter that?- Yes.
0:23:19 > 0:23:21If I do the loft conversion,
0:23:21 > 0:23:24then maybe I will keep it as a two-bedroom flat
0:23:24 > 0:23:29and make one bedroom upstairs and this small bedroom maybe I'll knock-down
0:23:29 > 0:23:31and make one big sitting room area.
0:23:31 > 0:23:34That is what I'm thinking.
0:23:34 > 0:23:37But before that, if I can't do the loft extension
0:23:37 > 0:23:40maybe I will keep it as a two-bedroom flat downstairs.
0:23:40 > 0:23:44And how much money have you got to spend on the work here?
0:23:44 > 0:23:49We said 8,000 to 10,000 is our budget to spend on all the work.
0:23:49 > 0:23:52The kitchen, bathroom, decoration and everything.
0:23:53 > 0:23:58That £8,000 to £10,000 budget is to renovate the flat with its current configuration
0:23:58 > 0:24:02and they are hoping to do the work in a timescale of three to four weeks.
0:24:02 > 0:24:05But at the same time, they will apply to the freeholder
0:24:05 > 0:24:09and the local council for permission to convert the loft,
0:24:09 > 0:24:12which they hope to do at a later date.
0:24:12 > 0:24:14So it sounds like they have a plan,
0:24:14 > 0:24:17despite the rather spontaneous auction purchase.
0:24:17 > 0:24:20He doesn't like planning. He always does the planning in his head.
0:24:20 > 0:24:23I like planning on the paper so we work on that.
0:24:23 > 0:24:26That is good team work, then. That is really good teamwork.
0:24:26 > 0:24:30And a little birdie has told me that it's your anniversary today.
0:24:30 > 0:24:36- Yes.- How many years?- 14 years today. - Congratulations, guys.
0:24:36 > 0:24:39I hope you are enjoying spending your anniversary on Homes Under The Hammer.
0:24:39 > 0:24:41That's the present for her.
0:24:43 > 0:24:47- Good luck with this project. I can't wait to see the outcome.- Thank you.
0:24:49 > 0:24:53Raheema and Muzzaba have got themselves a flat with real potential here.
0:24:54 > 0:24:57But they didn't read the legal pack and they didn't even plan
0:24:57 > 0:24:59to buy this particular flat in the first place.
0:24:59 > 0:25:03So will they get permission to do a loft extension
0:25:03 > 0:25:05and will they extend that lease?
0:25:05 > 0:25:08You can find out how they both get on later in the programme.
0:25:09 > 0:25:14Coming up, In Maryport, bring your elbow grease for this three-bed mid-terrace.
0:25:14 > 0:25:19There is not an easy solution, so some work to be done inside here.
0:25:21 > 0:25:22And in East Ham London,
0:25:22 > 0:25:26was it more work than Muzzaba and Raheema could handle?
0:25:26 > 0:25:29- Too much work was...- For you to do. - ..at the same time.
0:25:34 > 0:25:39Just 15 miles from the cathedral city of Norwich is the village of Dereham.
0:25:39 > 0:25:43It was here that we first saw a three-bedroom bungalow
0:25:43 > 0:25:49and this 1930s-built property looked quite unassuming from the outside.
0:25:49 > 0:25:52But inside, it encapsulated a bygone age
0:25:52 > 0:25:54with rather old fixtures and fittings.
0:25:54 > 0:25:58So undoubtedly, a comprehensive update was needed.
0:25:59 > 0:26:01But that wasn't top of the to-do list.
0:26:03 > 0:26:07This would be a major concern to me. Cracks of this size.
0:26:07 > 0:26:10Not just here, but all over the property.
0:26:10 > 0:26:12A definite sign of some structural movement.
0:26:12 > 0:26:15And the cracking appeared to be due to subsidence.
0:26:15 > 0:26:19The bungalow was going to need to be underpinned
0:26:19 > 0:26:22to stop it sinking further into the Norfolk soil.
0:26:22 > 0:26:25But with a spacious back garden and its great location,
0:26:25 > 0:26:28this place certainly wasn't without its merits.
0:26:29 > 0:26:31Bought post-auction by semi-retired florist Val
0:26:31 > 0:26:34as her sixth property renovation project.
0:26:37 > 0:26:41Together with project manager Joe, she was determined to do
0:26:41 > 0:26:43whatever it took to make this bungalow blossom again.
0:26:43 > 0:26:46# Give a little bit of heart and soul
0:26:46 > 0:26:49# Give a little bit of love to grow
0:26:49 > 0:26:52# Give a little bit of heart and soul. #
0:26:52 > 0:26:56- Val, you are smiling about everything.- I enjoy it.
0:26:56 > 0:26:59- It shows. - I enjoy doing something like this.
0:26:59 > 0:27:01I am determined to get a good job done.
0:27:01 > 0:27:04I am semi-retired so I've got some time now
0:27:04 > 0:27:08and I can put my heart and soul in it and make a good job.
0:27:08 > 0:27:10I am looking forward to seeing it. I really am.
0:27:10 > 0:27:13And it wasn't just her heart and soul she was putting in.
0:27:13 > 0:27:18She was also investing £20,000 for the internal refurbishment
0:27:18 > 0:27:23and hoped an additional £10,000 would cover the necessary underpinning work.
0:27:24 > 0:27:29With Joe project managing, she plans to have the work completed in two to three months.
0:27:31 > 0:27:34And now, five months later, we are back to see
0:27:34 > 0:27:37if the bungalow has stopped its downward slide.
0:27:37 > 0:27:39# We could be lifted
0:27:40 > 0:27:41# Lifted
0:27:43 > 0:27:45# Lifted. #
0:27:45 > 0:27:48Yes, underpinning is complete
0:27:48 > 0:27:51and the bungalow now sits on rock-solid foundations.
0:27:52 > 0:27:55And it has a gravel drive to boot.
0:27:55 > 0:27:57But inside, has it been given the lift it needed?
0:28:00 > 0:28:02# We could be lifted
0:28:02 > 0:28:05# We could be lifted
0:28:05 > 0:28:07# We could be lifted. #
0:28:07 > 0:28:10Well, it certainly has in the kitchen.
0:28:10 > 0:28:12# We could be lifted
0:28:12 > 0:28:14# We could be lifted
0:28:14 > 0:28:16# We could be lifted. #
0:28:16 > 0:28:21This has been the main area of change, or one of the two main areas of change really.
0:28:21 > 0:28:25Originally, this used to have a wall across here
0:28:25 > 0:28:28and at this point here was a back door.
0:28:28 > 0:28:31This area was all open with the drains down there.
0:28:31 > 0:28:34That was the bathroom window.
0:28:34 > 0:28:38We saw the potential to have a dining area which opened it up.
0:28:38 > 0:28:41And that is all part of a nice, new, modern kitchen
0:28:41 > 0:28:44with an old-fashioned feel.
0:28:44 > 0:28:47The kitchen is a great success and it's bright and airy.
0:28:49 > 0:28:51And in the rest of the house?
0:28:55 > 0:28:58Well, the front lounge is now more modern,
0:28:58 > 0:29:01though I think it was a shame to see that old fireplace go.
0:29:01 > 0:29:02I rather liked that.
0:29:04 > 0:29:06And what about the three bedrooms?
0:29:10 > 0:29:13As planned, an en-suite has been added to the master bedroom
0:29:13 > 0:29:15and it's very nice indeed.
0:29:16 > 0:29:19The other two bedrooms are crisp and neutral.
0:29:19 > 0:29:23The entrance to the bathroom has been moved, so it's off the hall rather than the kitchen.
0:29:23 > 0:29:26But it is still a work in progress.
0:29:27 > 0:29:29What else is on the to-do list?
0:29:31 > 0:29:32It is tweaking everywhere.
0:29:32 > 0:29:35Just mainly tweaking, but obviously finish off the bathroom
0:29:35 > 0:29:37and finish off the en-suite.
0:29:37 > 0:29:40Then it will be ready for someone to move in basically.
0:29:42 > 0:29:45So bits and pieces still to do, but they have tidied up that
0:29:45 > 0:29:50fantastic garden and overall the place is on much firmer footings.
0:29:50 > 0:29:52But how much did it all cost?
0:29:53 > 0:29:57The budget originally was 20,000,
0:29:57 > 0:30:00plus the contingency for the underpinning,
0:30:00 > 0:30:02which I gauged for about 10,000.
0:30:02 > 0:30:08But the underpinning was £12,500.
0:30:08 > 0:30:14But we eventually hit 60,000 so I am well, well over budget.
0:30:15 > 0:30:20Wow! £60,000. Double the amount proposed.
0:30:20 > 0:30:24Well, Val, you certainly haven't held back, but why so much more?
0:30:25 > 0:30:30I think the labour charges with all the plasterers, carpenter,
0:30:30 > 0:30:34different people I had to have in, the garden and the plumber.
0:30:34 > 0:30:37And we then just said right, we will redo the whole lot.
0:30:37 > 0:30:39You've got to do a good job. You can't do half a job.
0:30:41 > 0:30:44Val and Joe have certainly not done half a job here.
0:30:45 > 0:30:47Do two local estate agents agree?
0:30:47 > 0:30:50First, the agent who we met previously.
0:30:50 > 0:30:53It has obviously been completely refurbished and it is certainly
0:30:53 > 0:30:57in much better condition than when I came to look at it previously.
0:30:57 > 0:30:59I like the kitchen with the doors going out to the garden.
0:30:59 > 0:31:03They have cleverly converted another room to allow en-suite facilities.
0:31:03 > 0:31:06It is in a quiet location and I think it's very saleable.
0:31:06 > 0:31:09So undoubtedly, it has a lot to offer.
0:31:09 > 0:31:12But how in demand would it be on the rental market?
0:31:12 > 0:31:17For rental purposes, I would ask £725 per calendar month.
0:31:17 > 0:31:19If this property comes to the rental market,
0:31:19 > 0:31:24I would suggest the price of £725 to £750 per calendar month.
0:31:25 > 0:31:31£725 per calendar month would generate a yield of around 4.5%.
0:31:31 > 0:31:35But Val bought this to sell on as quickly as possible.
0:31:35 > 0:31:39Given she has doubled her renovation budget and has now invested
0:31:39 > 0:31:43a total of £190,000, can she possibly make a profit?
0:31:43 > 0:31:49For resale purposes, I would ask £235,000 for this bungalow.
0:31:49 > 0:31:51Should this property come to the open market,
0:31:51 > 0:31:56I would recommend a price of £225,000 to £230,000.
0:31:56 > 0:32:00225 and 230 are really low.
0:32:00 > 0:32:03I have had a valuation done at 275
0:32:03 > 0:32:06so there's quite a difference between the three.
0:32:06 > 0:32:09I would like to get 260 if that's possible.
0:32:09 > 0:32:13So, Val may be a little disappointed by the agents' valuations
0:32:13 > 0:32:16but even if she did sell it for £225,000,
0:32:16 > 0:32:21that would give her a pre-tax profit of £35,000.
0:32:23 > 0:32:28Since we filmed this, Val has had an open day marketing the house at £270,000.
0:32:28 > 0:32:32She has had some interest, including an offer she hasn't accepted
0:32:32 > 0:32:34and another in the pipeline.
0:32:37 > 0:32:42The next auction that comes up, once this is sold, I will be there.
0:32:42 > 0:32:45And we will do the same again.
0:32:49 > 0:32:53We return now to a town on the Solway Firth
0:32:53 > 0:32:56which we visited in July 2014.
0:32:56 > 0:33:00Once famous for the smelting, coal and fishing industries,
0:33:00 > 0:33:03and up to the Georgian period, it was called Ellenfoot.
0:33:03 > 0:33:06# And then along comes Mary. #
0:33:08 > 0:33:10Yes, and then Mary came along.
0:33:10 > 0:33:13She was the wife of developer Humphrey Senhouse
0:33:13 > 0:33:16and the town was named Maryport in her honour.
0:33:20 > 0:33:23A few minutes' walk from the town centre and the harbour
0:33:23 > 0:33:25is the property I'm here to see.
0:33:25 > 0:33:29Three-bedroom terrace, guide price at £35,000 plus.
0:33:33 > 0:33:35So, not a lot of money.
0:33:35 > 0:33:38Does it have an interior that reflects that price?
0:33:38 > 0:33:41Well, nice high ceilings as you walk through the door.
0:33:41 > 0:33:43A bit of an odd layout.
0:33:43 > 0:33:46There is one big room down here, which obviously makes this
0:33:46 > 0:33:49your living room and sort of kitchen area.
0:33:49 > 0:33:52At least, it doesn't feel claustrophobic.
0:33:52 > 0:33:54But here is a feature you don't see very often.
0:33:54 > 0:33:58There is the fireplace and here is an alternative fireplace.
0:33:58 > 0:34:01Or is it a TV? Maybe.
0:34:05 > 0:34:06Brilliant show!
0:34:08 > 0:34:13Anyway, work to be done but I do quite like the layout here.
0:34:13 > 0:34:15And, yes, onwards and upwards.
0:34:18 > 0:34:20Urgh!
0:34:20 > 0:34:22That's not good.
0:34:26 > 0:34:29Neither is this.
0:34:29 > 0:34:31Whatever this was.
0:34:31 > 0:34:34Halfway up the stairs was this long corridor,
0:34:34 > 0:34:37which led to another front door.
0:34:37 > 0:34:41I was about as confused as the postman probably is by this property.
0:34:41 > 0:34:45Upstairs, this listed building got even quirkier.
0:34:46 > 0:34:51With a layout consisting of a bedroom and bathroom sans floor
0:34:51 > 0:34:55and then the top floor did have two bedrooms.
0:34:55 > 0:35:00It made the open-plan feel of the ground-floor seem a very distant memory.
0:35:03 > 0:35:05You know, what's the opposite of open plan?
0:35:05 > 0:35:10Because downstairs is open plan and up here is absolutely the opposite.
0:35:10 > 0:35:14It's very cramped, it's all corridors and stairs and it doesn't work.
0:35:14 > 0:35:18I am glancing around and there is not an easy solution.
0:35:18 > 0:35:21So some work to be done inside here.
0:35:23 > 0:35:27A perplexing property, but a potentially profitable place.
0:35:27 > 0:35:33Guided at £35,000, the first time we visited an estate agent
0:35:33 > 0:35:37valued this property, once renovated, at £75,000 to £80,000.
0:35:37 > 0:35:40And while renovation wasn't going to be cheap,
0:35:40 > 0:35:42nor for the faint-hearted, the guide price
0:35:42 > 0:35:47and agents' valuations suggested there might be room for profit
0:35:47 > 0:35:50if it didn't exceed the guide price by much.
0:35:52 > 0:35:56Three-storey four-bedroom terrace house situated in a popular area of the town.
0:35:56 > 0:36:00The property is a listed building. 35? 30?
0:36:00 > 0:36:03I need a bid. I can't sell it without one.
0:36:03 > 0:36:05At 30,000.
0:36:05 > 0:36:0730, I am in. At 30,000.
0:36:07 > 0:36:12Despite a packed auction house, it looked like the guide price was unobtainable.
0:36:12 > 0:36:14But then things started to move a little.
0:36:14 > 0:36:20At £30,000 then. 31. 32. 33. 34. 35.
0:36:20 > 0:36:24No, with you at 34. Half. 35.
0:36:25 > 0:36:3135. I've got a half here. 35 with you. Half? No. Back with you at 35.
0:36:32 > 0:36:35At £35,000 on my left sitting.
0:36:35 > 0:36:39First-time, second time, third time at £35,000 then.
0:36:39 > 0:36:41Well done, sir.
0:36:42 > 0:36:48So, we finally got to that guide price with a successful bid and that came from Dave on the left,
0:36:48 > 0:36:50who along with his business partner, Kevin,
0:36:50 > 0:36:52wanted a break from house-building
0:36:52 > 0:36:56and sought to bring their skills to the renovations market.
0:36:57 > 0:37:00They had set out to buy something, but they hadn't seen it
0:37:00 > 0:37:03and they hadn't read the legal pack,
0:37:03 > 0:37:05which of course meant my first question was...
0:37:05 > 0:37:09- Tell me why you wanted to buy this property?- God knows!
0:37:09 > 0:37:11That's a good start!
0:37:12 > 0:37:15Well, I eventually did get a straight answer from Dave
0:37:15 > 0:37:19about why this was the auction lot they wanted.
0:37:19 > 0:37:21There is a funny story to that. Shall I tell it?
0:37:21 > 0:37:23You are going to tell it. Go on.
0:37:23 > 0:37:26We arrived at our first auction a month ago just gone.
0:37:27 > 0:37:31The house we wanted was number five on the list.
0:37:32 > 0:37:36The money that went for was absolutely above our budget.
0:37:36 > 0:37:39- Right.- We have a certain budget
0:37:39 > 0:37:42and the next one along was this one, which was within our budget.
0:37:42 > 0:37:44That story is not that funny.
0:37:44 > 0:37:46It is funny for us because the one we wanted,
0:37:46 > 0:37:48we didn't get a look-in on.
0:37:48 > 0:37:52That's the funny bit. And we didn't want to come away empty-handed.
0:37:52 > 0:37:53# Funny
0:37:53 > 0:37:56# But I'm not laughing. #
0:37:58 > 0:38:01While Dave may have been short of funny stories,
0:38:01 > 0:38:04they were not short of expertise to turn this around.
0:38:04 > 0:38:07Dave has his own construction company
0:38:07 > 0:38:09and Kevin has a drainage and groundworks company.
0:38:09 > 0:38:13The original plan was that it would be the start of a rental portfolio
0:38:13 > 0:38:18and they had a 12-week timescale to carry out some big plans.
0:38:19 > 0:38:22Top to bottom. Take all the chimney breasts out, top to bottom.
0:38:22 > 0:38:26Take everything apart and the walls will be re-skimed where necessary.
0:38:26 > 0:38:30New floorboards. New heating system. Rewire.
0:38:30 > 0:38:33It is an interesting layout, as well, isn't it?
0:38:33 > 0:38:35It is quite higgledy-piggledy all over the place.
0:38:35 > 0:38:38What are you going to do to change that?
0:38:38 > 0:38:42The worst part for us we think is the kitchen area here
0:38:42 > 0:38:45because with the stairs coming up from behind that wall
0:38:45 > 0:38:49it's going to take a little bit of imagination.
0:38:49 > 0:38:53There is no back yard to this property either
0:38:53 > 0:38:57but the passage is there, which is a back yard.
0:38:57 > 0:39:01So, we can do things with that to make light work of the kitchen.
0:39:01 > 0:39:04Put white goods in there, that sort of thing.
0:39:04 > 0:39:06So, when we came back four months later,
0:39:06 > 0:39:09had all the building work taken place?
0:39:09 > 0:39:12Or had buying blind thrown up some more problems?
0:39:16 > 0:39:19The bathroom had been redeveloped while the rest of the house
0:39:19 > 0:39:23was awaiting redecoration after being re-plastered.
0:39:24 > 0:39:27That corridor that led to the second front door had become a WC,
0:39:27 > 0:39:30giving the property a ground-floor loo.
0:39:32 > 0:39:35With Kevin away on another job, Dave and his wife, Linda,
0:39:35 > 0:39:38came to explain all the work that had been going on.
0:39:40 > 0:39:44The top two rooms are both bedrooms and they just needed squaring up
0:39:44 > 0:39:47and stripping back and rebuilding basically.
0:39:47 > 0:39:49Floorboards were replaced where necessary.
0:39:49 > 0:39:54The middle floor, the bathroom, that was a total disaster.
0:39:54 > 0:39:58All the floors came out of there. They were replaced where necessary.
0:39:58 > 0:40:01And the whole place has been rewired and re-plumbed.
0:40:01 > 0:40:04Then we are on the sitting room which is the last room to do.
0:40:04 > 0:40:06So that will be happening in the next few weeks.
0:40:06 > 0:40:08We will be into that and squaring that away.
0:40:08 > 0:40:12There wasn't much left to do, other than add a kitchen.
0:40:12 > 0:40:17A kitchen we were interviewing them in, which was located, erm...
0:40:17 > 0:40:19Not here.
0:40:19 > 0:40:22No, not here either.
0:40:22 > 0:40:24Not here either.
0:40:24 > 0:40:26OK, I've got no idea.
0:40:26 > 0:40:29I will let Dave tell you where they put the kitchen.
0:40:32 > 0:40:35Within a few days we decided to take away
0:40:35 > 0:40:38the chimney in the sitting room to give a bit more width to the
0:40:38 > 0:40:43room and we dropped the chimney on to the floor upstairs, cleared
0:40:43 > 0:40:48all the rubble away and we found a hole in the floor where the hearth was.
0:40:48 > 0:40:52My grandson was here that day and we put a ladder down and dropped
0:40:52 > 0:40:56him into the hole and he shone his torch around off his phone.
0:40:58 > 0:41:01And it became quite clear that we have to use this room.
0:41:02 > 0:41:07A secret cellar and that became the kitchen, saving space upstairs.
0:41:07 > 0:41:13It allowed them to have a dedicated living room space on the ground floor.
0:41:13 > 0:41:17The original room which was a lounge and kitchen,
0:41:17 > 0:41:21we were struggling to get it to look anything.
0:41:21 > 0:41:25So to find a cellar, it was brilliant.
0:41:25 > 0:41:29I came down when they had made access into it. It was very dark.
0:41:29 > 0:41:30I had a torch.
0:41:30 > 0:41:35It was an earth floor and I thought it's got to be very light in here.
0:41:35 > 0:41:37So the vision was to have a light floor,
0:41:37 > 0:41:41light walls and I wanted a white kitchen but it was too white.
0:41:42 > 0:41:46So, we put the floor down and then carried on with
0:41:46 > 0:41:49the rest of the kitchen equipment.
0:41:51 > 0:41:53And really, I am so pleased with it.
0:41:53 > 0:41:57They had originally wanted to rent the property and had found
0:41:57 > 0:42:00a way to keep it in the family, at least in the short term.
0:42:02 > 0:42:04Stephen, our son, I think he's renting it.
0:42:04 > 0:42:07He is in need of somewhere to stay,
0:42:07 > 0:42:10so it can be here until he moves on or whatever.
0:42:10 > 0:42:13Then the house will be rented out.
0:42:13 > 0:42:16And that was back in November 2014.
0:42:16 > 0:42:20At that point, they thought another four weeks of work would finish it.
0:42:20 > 0:42:22But did it?
0:42:22 > 0:42:27Or were there more surprises and not nice ones like hidden spaces?
0:42:27 > 0:42:29You can find out later in the show.
0:42:33 > 0:42:36So, when it comes to renovation hold-up reasons,
0:42:36 > 0:42:38well, I think we've heard them all.
0:42:38 > 0:42:43Yes. From bats to owls to newts to archaeological digs.
0:42:43 > 0:42:45So, what about the two remaining buyers on today's show?
0:42:45 > 0:42:47Did they make it in time?
0:42:49 > 0:42:52Earlier in the show in the increasingly popular London
0:42:52 > 0:42:56area of East Ham, I went to see a two-bed first-floor flat
0:42:56 > 0:42:59which had a guide price of £100,000 plus.
0:42:59 > 0:43:04But that modest guide price wasn't all it seemed.
0:43:04 > 0:43:06The lease only had 58 years to run
0:43:06 > 0:43:09and that meant it was unlikely to get a mortgage.
0:43:09 > 0:43:13And the lease wasn't the only thing that needed renewing.
0:43:13 > 0:43:17# All you can do is step back in time. #
0:43:18 > 0:43:21And the layout needed a change, too.
0:43:21 > 0:43:25I have seen hundreds of properties like this on Homes Under The Hammer,
0:43:25 > 0:43:28but not so often have I seen the rooms divided like this.
0:43:28 > 0:43:33I mean, this clearly is a partition so this little tiny box room
0:43:33 > 0:43:36just through here, that is not really working for me.
0:43:36 > 0:43:39I would be inclined to take all of this down
0:43:39 > 0:43:44and have one nice big living room here and make next door the bedroom.
0:43:45 > 0:43:49Muzzaba and Raheema had a few property developments under their belt
0:43:49 > 0:43:54but the change for them was that this £156,500 purchase
0:43:54 > 0:43:58was their very first at auction and they hadn't even meant to buy it!
0:44:02 > 0:44:05So, what happened? How did you end up walking away with the flat?
0:44:05 > 0:44:09I think your programme inspired us and we started to get interested.
0:44:09 > 0:44:12We said, "Let's raise our hands" and we started.
0:44:12 > 0:44:15So, you are blaming us at Homes Under The Hammer? It's our fault!
0:44:17 > 0:44:20But there was more cause for celebration
0:44:20 > 0:44:21than just buying the property.
0:44:21 > 0:44:26- And a little birdie has told me that it's your anniversary today.- Yes.
0:44:26 > 0:44:31- How many years?- 14 years today. - Congratulations, guys.
0:44:31 > 0:44:35I hope you are enjoying spending your anniversary on Homes Under The Hammer.
0:44:35 > 0:44:37That's the present for her!
0:44:38 > 0:44:40Three months on, it's time to find out
0:44:40 > 0:44:43if the happy couple are still celebrating.
0:44:44 > 0:44:48I think you can say they have changed all the colours for the better.
0:44:48 > 0:44:50There is no magnolia here.
0:44:50 > 0:44:53# I used to dream in black and white
0:44:53 > 0:44:56# Now I see the world in a different light
0:44:58 > 0:45:00# Your love colours
0:45:02 > 0:45:04# Colours everything
0:45:06 > 0:45:07# Your love colours
0:45:09 > 0:45:11# Colours everything
0:45:13 > 0:45:15# Your love colours
0:45:16 > 0:45:18# Colours everything
0:45:20 > 0:45:22# Your love colours. #
0:45:23 > 0:45:25Well, colour me impressed.
0:45:25 > 0:45:30Layout changes and those bright tones have really cheered this flat up.
0:45:30 > 0:45:33With some building work going on nearby, we nipped out to
0:45:33 > 0:45:37a local cafe for some peace and quiet and a quick coffee.
0:45:37 > 0:45:40# You are the cream in my coffee. #
0:45:40 > 0:45:42So, what have they been up to?
0:45:42 > 0:45:47We replaced the heaters and put in new heating systems.
0:45:47 > 0:45:50We replaced the whole bathroom.
0:45:50 > 0:45:53A new bathroom. The kitchen.
0:45:53 > 0:45:59- Some of them we reused.- We recycled bits of the kitchen. Some units.
0:45:59 > 0:46:05The boiler was there before and we made it a utility room.
0:46:06 > 0:46:08So, a smart job all round
0:46:08 > 0:46:12and I'd particularly like to know who came up with that bold design.
0:46:13 > 0:46:16We worked together, actually. This combination.
0:46:16 > 0:46:18I chose the colour.
0:46:18 > 0:46:23- She chose the colour. - I like red so I chose the red.
0:46:23 > 0:46:28And he chose the green. He chose the tiles for the bathroom actually.
0:46:28 > 0:46:31And the kitchen.
0:46:35 > 0:46:38Of course, one of the downsides was that short 58-year lease
0:46:38 > 0:46:42and that is subject to negotiation with your freeholder.
0:46:42 > 0:46:44Now, the couple need to get a valuation surveyor
0:46:44 > 0:46:47and a solicitor to sort out the issues.
0:46:47 > 0:46:51Most leaseholders have the right to extend the lease for over 90 years
0:46:51 > 0:46:54once they have owned the property for two years.
0:46:54 > 0:46:58But Muzzaba and Raheema will have to factor in the costs and legal fees.
0:46:58 > 0:47:00Talking of money, how has that budget gone?
0:47:02 > 0:47:07Budget-wise, you will be pleased to hear that we have actually gone under the budget.
0:47:08 > 0:47:12I was trying to hold his hand and not spend too much
0:47:12 > 0:47:15because we have another project to finish off.
0:47:15 > 0:47:18So actually, how much did we spend?
0:47:18 > 0:47:21Nearly £7,000 we have spent.
0:47:22 > 0:47:25All that hand-holding clearly paid off.
0:47:25 > 0:47:28However, they did go over their timescale and it took them
0:47:28 > 0:47:3112 weeks to get to this point.
0:47:31 > 0:47:33They've had one or two setbacks here and there,
0:47:33 > 0:47:36but are we still enjoying the property development game?
0:47:36 > 0:47:4012 years I am doing this, so it is enjoyable. There isn't any problem.
0:47:40 > 0:47:46- But this time, too much work... - For you to do.- ..at the same time.
0:47:46 > 0:47:50We had this house and another project at the same time.
0:47:50 > 0:47:53That's why I get...
0:47:53 > 0:47:56You got a bit tired of it.
0:47:56 > 0:47:59Not tired. Time-managing.
0:47:59 > 0:48:03Time-managing was the problem this time.
0:48:05 > 0:48:07Two projects at one time can be tough,
0:48:07 > 0:48:10but back at the current project we invited two local estate agents
0:48:10 > 0:48:14to tell us what's the most profitable route for Muzzaba
0:48:14 > 0:48:19and Raheema, based upon their total spend of £163,500.
0:48:21 > 0:48:25The agent who saw it first can explain the effect that short lease
0:48:25 > 0:48:30can have and then it's time to hear those all-important valuations.
0:48:30 > 0:48:34The renewal of a lease can obviously cause a bit of a delay because it
0:48:34 > 0:48:37depends upon how open the freeholders are to the negotiation process.
0:48:37 > 0:48:40It could take a few months for that to happen
0:48:40 > 0:48:43so it could delay timescale and could affect the prices, as well.
0:48:43 > 0:48:46Without renewing the lease on the property as a two-bedroom,
0:48:46 > 0:48:49you're going to be looking in the region of about £150,000.
0:48:49 > 0:48:51In my opinion, with the currently lease,
0:48:51 > 0:48:54the property is worth £165,000.
0:48:54 > 0:49:01That is quite disappointing because we bought it for 156,500
0:49:01 > 0:49:05and we have spent about 7,000.
0:49:05 > 0:49:08And the legal costs and everything.
0:49:08 > 0:49:11But probably he is right, he doesn't want to sell it
0:49:11 > 0:49:14so if we get this price we're definitely not selling it.
0:49:15 > 0:49:19At that top £165,000 valuation,
0:49:19 > 0:49:23the couple could make just a £2,000 pre-tax profit.
0:49:24 > 0:49:27However, the agents did say that if they do extend the lease
0:49:27 > 0:49:31the flat could sell for anything up to 220,000.
0:49:31 > 0:49:36So it looks like this is well worth doing if they want to re-sell.
0:49:36 > 0:49:40However, Muzzaba and Raheema are more interested in the rental figures.
0:49:43 > 0:49:47The rental value of this property would be £1,000 per calendar month.
0:49:47 > 0:49:50For rental purposes, obviously the renewal of the lease doesn't affect it,
0:49:50 > 0:49:55so they're going to be looking at somewhere in the region of £1,100 to £1,200 per calendar month.
0:49:55 > 0:49:58That is actually the kind of offer we're getting from people.
0:50:00 > 0:50:04We have got two or three tenants or people who are interested
0:50:04 > 0:50:06and they have offered us 1,200.
0:50:06 > 0:50:11£1,200 per calendar month could bring in just under a 9% yield.
0:50:12 > 0:50:16So, do they still think this is a good long-term investment?
0:50:16 > 0:50:19In property, over a long time, there is no loss.
0:50:21 > 0:50:23I believe there is no loss.
0:50:23 > 0:50:29So, we will keep it for the rent so it's not going to be a loss.
0:50:36 > 0:50:39We return now to Maryport in Cumbria.
0:50:39 > 0:50:42When I first visited in July 2014,
0:50:42 > 0:50:49I came to see a three-storey three-bed mid-terrace guided at £35,000.
0:50:49 > 0:50:53Good things come in threes but inside, triple the problems.
0:50:53 > 0:50:58Layout, a long corridor that did absolutely nothing and...
0:50:58 > 0:51:01Urgh! That's not good.
0:51:04 > 0:51:06So, a lot of work to do on this one.
0:51:06 > 0:51:10But that didn't daunt Dave on the left and his business partner Kevin.
0:51:11 > 0:51:15They paid right on the guide price at £35,000
0:51:15 > 0:51:20and had big plans to have this ready for rental in just 12 weeks.
0:51:20 > 0:51:23Take all the chimney breasts out top to bottom. Take everything apart.
0:51:23 > 0:51:26The walls will be re-skimmed where necessary.
0:51:26 > 0:51:29New floorboards. New heating system. Rewire.
0:51:29 > 0:51:32When we came back four months later,
0:51:32 > 0:51:34they had installed a stylish bathroom,
0:51:34 > 0:51:36replastered all the bedrooms
0:51:36 > 0:51:40and they had used the long corridor to install a downstairs loo.
0:51:42 > 0:51:44The original schedule went out of the window
0:51:44 > 0:51:47when a sealed up basement was discovered.
0:51:47 > 0:51:50It was a bonus to have a room no-one knew about
0:51:50 > 0:51:54and suddenly there was somewhere to put a spacious kitchen.
0:51:54 > 0:51:56Dave's wife, Linda, had taken charge of it.
0:51:57 > 0:52:00The original room which was a lounge and a kitchen,
0:52:00 > 0:52:03we were struggling to get it to look anything.
0:52:05 > 0:52:07So, to find a cellar, it was brilliant.
0:52:07 > 0:52:10# Take your time. #
0:52:10 > 0:52:13So, nearly nine months on from when we first met the team,
0:52:13 > 0:52:17have they finished and was it worth taking the extra time?
0:52:17 > 0:52:19# I've been waiting patiently
0:52:19 > 0:52:22# Take your time
0:52:22 > 0:52:24# Don't need to rush because it only gets better
0:52:24 > 0:52:27# Take your time
0:52:27 > 0:52:30# Take your time Take your time
0:52:30 > 0:52:33# There's no need to rush because it only gets better
0:52:33 > 0:52:36# Take your time
0:52:36 > 0:52:38# Take your time
0:52:43 > 0:52:45# Take your time
0:52:45 > 0:52:48# Oh-oh-oh-oh. #
0:52:51 > 0:52:55Unrecognisable from before, but a few things left to do.
0:52:55 > 0:52:57Dave and Linda can take us through
0:52:57 > 0:53:00this longer-than-expected renovation.
0:53:01 > 0:53:05Firstly, we were very concerned about how the layout was.
0:53:05 > 0:53:07Upstairs is fine.
0:53:07 > 0:53:11But where the kitchen was under the stairs in the sitting area,
0:53:11 > 0:53:13that's where it was originally.
0:53:13 > 0:53:16That was a concern, how best to make that a kitchen.
0:53:16 > 0:53:20After that of course we found the cellar, which actually made
0:53:20 > 0:53:23the house because the kitchen diner is down there now.
0:53:23 > 0:53:27That has made it such a more pleasurable house.
0:53:27 > 0:53:30To finish the house was the sitting room because we used
0:53:30 > 0:53:33that as a workshop while we worked upstairs and downstairs.
0:53:33 > 0:53:35That was the last room to get done.
0:53:37 > 0:53:39After that, the carpets were laid
0:53:39 > 0:53:43and just niggly little bits to finish. Snagging, they call it.
0:53:43 > 0:53:46- All the decorating.- And finish the decorating, that sort of stuff.
0:53:46 > 0:53:50Snagging is what builders call the process of checking over
0:53:50 > 0:53:53a project and identifying any defects and solving them.
0:53:53 > 0:53:56It usually is little things
0:53:56 > 0:54:00but they make all the difference to a professional finish.
0:54:00 > 0:54:02But by having the kitchen down in the basement,
0:54:02 > 0:54:06they now have an open plan dedicated living room.
0:54:06 > 0:54:09But any ideas why the basement was sealed up?
0:54:10 > 0:54:16Apparently, years and years ago, before central heating I suppose,
0:54:16 > 0:54:20they were considered very draughty and very cold and very damp places.
0:54:20 > 0:54:24So the sitting room floor or the ceiling to that cellar
0:54:24 > 0:54:28was draughty and they covered them over and lost them.
0:54:28 > 0:54:31So at some point in history it was lost
0:54:31 > 0:54:35because it wasn't used or it was too cold or draughty to use.
0:54:35 > 0:54:38The access to that cellar used to come off the sitting room.
0:54:38 > 0:54:43We found the old staircase in place when we lifted the lounge floor.
0:54:43 > 0:54:48So, it was accessible but lost some time in the past.
0:54:50 > 0:54:52With an unexpected fourth floor,
0:54:52 > 0:54:56and Dave and Kevin's busy schedule with other jobs,
0:54:56 > 0:54:58the project overran to nine months.
0:54:58 > 0:55:01What about the budget?
0:55:01 > 0:55:04The total cost including costs from the auction
0:55:04 > 0:55:06and whatever is around 25,000.
0:55:06 > 0:55:09And is the plan still to rent?
0:55:09 > 0:55:12Initially, yes.
0:55:12 > 0:55:16Then we changed our minds and my son was interested in buying it.
0:55:16 > 0:55:20Then I changed his mind because he's not!
0:55:20 > 0:55:22It is now up for rent for let.
0:55:24 > 0:55:27Time to find out if Dave was right not to sell
0:55:27 > 0:55:31to his son by getting the opinions of two local estate agents,
0:55:31 > 0:55:34starting with the agent from the auction house who sold it.
0:55:36 > 0:55:38This is my third visit to the property.
0:55:38 > 0:55:39Now that the work is completed,
0:55:39 > 0:55:42it has made a complete transformation of the property.
0:55:42 > 0:55:45They have made a fantastic job of all the renovations.
0:55:46 > 0:55:53Unearthing the cellar was a major point to the refurbishment.
0:55:53 > 0:55:56I came in while the owners were still doing some work to the property.
0:55:56 > 0:55:58I think they've done a fantastic job.
0:55:58 > 0:56:00It has really modernised the property.
0:56:00 > 0:56:04A nice modern kitchen and refreshed everything inside nice and neutral and modern and very spacious.
0:56:04 > 0:56:07It's taken them a lot longer than the 12 weeks
0:56:07 > 0:56:11they first expected and all those months ago they bought this house
0:56:11 > 0:56:17for £35,000 and have now spent £25,000, including some fees.
0:56:17 > 0:56:21So, given they have invested £60,000 in total, what would this
0:56:21 > 0:56:25house sell for now and what could they expect on the rental market?
0:56:25 > 0:56:27On the open market,
0:56:27 > 0:56:31I believe the property would achieve between £85,000 and £90,000.
0:56:31 > 0:56:35For rental, between £450 and £475 per calendar month.
0:56:35 > 0:56:37If placed on the open market,
0:56:37 > 0:56:40we would expect to achieve a sale price of around £90,000.
0:56:40 > 0:56:42On the rental market, with strong demand,
0:56:42 > 0:56:45we would expect to get £450 per calendar month.
0:56:47 > 0:56:51Selling the property for that £90,000 valuation could bring
0:56:51 > 0:56:54a pre-tax profit of £30,000.
0:56:54 > 0:56:59While renting at the top value of £475 per calendar month would
0:56:59 > 0:57:03give them a very healthy yield of 9.5%.
0:57:03 > 0:57:05So, what's their reaction to those values
0:57:05 > 0:57:07and do they mean a change of plan?
0:57:09 > 0:57:13- Fantastic.- Very pleased. - The values don't sway.
0:57:13 > 0:57:17We will still rent the property out for at least two years and then
0:57:17 > 0:57:22review the situation and see how our pension fund is in that time.
0:57:25 > 0:57:28It might be one for the pension fund but the question is,
0:57:28 > 0:57:32when are Dave, Kevin and Linda actually going to retire?
0:57:32 > 0:57:35A move into redevelopment was a new career for all of them.
0:57:35 > 0:57:38So, have they enjoyed their first experience?
0:57:40 > 0:57:44- It has been a joy. It's been nice. - We have enjoyed it.
0:57:44 > 0:57:47Although, I haven't worked on it much!
0:57:47 > 0:57:50No. I take my instructions every night!
0:57:54 > 0:57:56Well, did those stories inspire you?
0:57:56 > 0:57:58Have they given you pause for thought?
0:57:58 > 0:58:02If so, join us next time for more of the same here on Homes Under The Hammer.
0:58:02 > 0:58:04- Goodbye.- Goodbye.- Goodbye.