Episode 42 Homes Under the Hammer

Hello. The property market is different

depending on where you are in the country, property prices,

potential returns - there is no hard and fast rule.

Yes. It's just as important to know the area you're buying in,

as well as the property itself.

Yes. And local knowledge could give you the edge.

So why not nip down to your local auction?

Property developing isn't always as easy as it seems.

Sometimes it can be a walk in the park

and you'll make a healthy profit.

Other times, you get stuck in the mud

with only twopence to show for all your hard work.

Let's see what properties were bought on today's programme.

In Kent we return to a lovely old chapel we first saw in 2010,

and a visionary couple, but what has happened since?

We have no more money.

In Stoke-on-Trent, let's hope the DIY stores

haven't run out of render, or mortar, for this end of terrace.

It would need repointing, ASAP.

While in Wales, this two-bedroom flat nearly has me

running for the hills,

but the kitchen saves the day.

Thank goodness for that.

All of these properties were sold at auction.

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

when they went under the hammer.

We're going way back into the Homes Under The Hammer archive now,

to 2010, and to Goudhurst in Kent,

a village with more than its fair share of characterful properties.

# Take me to church

# I'll worship like a dog at the shrine of your lies... #

And here it is, a former chapel.

The 19th-century building had some really attractive

architectural features and stunning views from its elevated position.

The acoustics...Ah! Ah!

-HER VOICE ECHOES

-I love spaces like this.

Look at these windows!

You can really imagine raising the floor here,

creating a mezzanine level, so you've got two areas to live.

It's absolutely beautiful in here.

It was easy to see the potential of the property

which, surprisingly, hadn't been listed.

So, I did hope some of the original features could be saved.

# Yeah! Amen! #

On the side of the main chapel, this small building

was the former Sunday school with a raised area and small kitchen.

The proud new owners,

after an auction bid of 290,000, were Nick and Sonia.

Experienced developers in their own right,

they were embarking on their second project together.

Nick was a quantity surveyor and Sonia an accountant,

who had also run her own building company -

a great skill set for a big project like this.

So, what were their plans?

In a nutshell, we hope to turn it into a lovely family home.

For you guys to live in?

Um, yes. That is the likelihood at the moment.

That we're going to live here ourselves.

So, Sonia, what's the story behind you finding this?

Well, we moved to Goudhurst just over a year ago,

and my daughter's school's local.

So I drove past this building every day taking her to school

and noticed it was empty

and we approached the Methodists to see if we could buy it

but, unfortunately, at the time, they said no,

it would have to be sold at auction.

So we sort of followed it.

So we have been tracking it for some time.

The couple were already renovating another property

in Rochester in Kent

and were planning to finish that before starting work on the chapel.

They were also wanting to revise the plans

that had already been passed, which would inevitably cause delay.

Would it be worth the wait?

Our view is that it's not the right design for this building.

Why do you say that?

Erm, because it doesn't do justice to the space that's here.

Basically, they're intending to put a floor all the way through here

and ruin the potential of having some double height space in it.

It virtually demolishes all of the Sunday School room at the back,

which we don't think is also appropriate.

We have an architect on board who is starting to draw up...

Hopefully, interpret our vision for it

and put his own mark on it, too.

And we believe we will end up with

a better product, at the end of the day.

So, how are you going to do that without cutting back on space?

If you want to keep this as one, and not use it as two floors,

how are you going to do that in terms of space?

There will be a part floor, running through,

but what we want to do is keep the dramatic two-storey space

around the two sides where the tall windows are.

Ingenious. And not bisecting the windows got my vote.

Nick and Sonia's total development budget was set at £200,000,

inclusive of fees and expenses.

Added to the 290,000 they'd already paid at auction,

it would take them to half a million pounds.

Now, their target of completion was just one year.

So, it's just one dwelling that you're looking at building.

At the moment, the intention is just to build one,

but we are looking at the possibility of a second property

on the adjoining land, which was part of the purchase.

With planning permission for the total development granted,

we returned just over two years later

and there were plenty of clues that this was going to be

an outstanding transformation.

# Oh, heaven, oh, heaven

# I wake with good intentions

# But the day, it always lasts too long

# Then I'm gone, then I'm gone... #

The two-storey space was certainly dramatic

and the interior colour scheme accentuated this

with its monochromatic tones.

It's amazing! And certainly nothing like before.

# I'm nothing like before... #

How was it achieved?

The slates were reclaimed and reused and supplemented where necessary.

The bricks from the original chapel were... It was hand-demolished

and all salvaged and used in the reconstruction of the walls.

As we came into the house,

we wanted to keep some nice light, open spaces,

but keeping a palette of largely white, grey, and black

with some splashes of colour.

There was a good mix of old and new

with a hi-tech office area concealed behind the lounge.

A doorway through to the oak-beamed glass extension

and the space where there was once Sunday school lessons

became an amazing high-spec kitchen-diner.

It may have looked minimalist, but had everything that even

the most demanding of chefs could have wished for.

The kitchen, we wanted to use natural materials

and we wanted to use oak to continue the oak frame outside

and we also wanted to introduce the darker colours to mimic

the slate on the roof and the dark flooring.

But also white to lighten it up, really.

I said everything,

but I didn't expect the church pew seating cleverly colour-coded

to make it stand out as a preserved original feature.

Next, there's a utility and cloakroom.

Then, there's the mezzanine level, where again,

respect for the building's past shines through.

We've been in a number of church buildings that have been converted

and one of the issues always is,

particularly from the external elevations,

when you put a floor across at a high level, it spoils the lines

and chops the windows in half,

so we were aware that we didn't really want to do that, we

wanted to bring the floors back from the windows,

but there's always a compromise and a balance between having

some floor space upstairs to stand on and to use as bedrooms,

but hopefully what we've achieved is some quite dramatic space

and the church from the outside

largely looks as it was when it was first built.

Well, I thought it was dramatic and in my view,

the compromise of lost upstairs space was so worth it.

There was still room for a great family bathroom and three bedrooms.

Two decent-size ones, one of which was being used as a store room.

The third bedroom, the master, was an amazing light, spacious room,

with en suite facilities,

complete with those beautiful modern sliding doors,

which gave access to the balcony above the kitchen.

It was a breathtaking use of a building

which the original plans bought with the chapel would have torn down.

And speaking of plans, what was in store for the land next door?

What we're envisaging building is a three-storey house,

one level of which is subterranean, bar the front elevation,

which would be largely glass.

It's going to be an ICF construction,

which is insulated concrete formwork,

so basically you put a load of polystyrene Lego bricks together,

with lots of steel in them,

and you pour the concrete and it will actually be...

Well, we're hoping it will actually be a passive house,

it will not need any heating.

The budget for the new build was £200,000.

The couple have five children between them

and the hope was that the new house, combined with the chapel,

could be home to the entire family.

But how much had it cost for the project so far?

On the chapel, we have spent about £350,000,

it includes a little bit of money relating to the site next door,

enabling some drainage work and the construction of a shed

at the back, which we needed to do prior to excavating the main dig.

The couple spent one and a half times the original £200,000 budget

on this renovation -

added to their £290,000 purchase price makes a total of £640,000.

But bear in mind that because they're converting a property into

a home, they may be able to claim VAT back on some of the materials,

which could be a significant sum.

What did two estate agents make of this project?

Unbelievable, I think, is the best way of describing it.

It is a fabulous building.

The position of the property, the character, the improvements...

In fact, it's probably one of the best conversions I've ever seen.

The workmanship is first-class.

Taking an average of the agents' valuations,

at this point Nick and Sonia stood to make a modest profit

of £55,000, but this house wasn't for sale.

And there was another entirely new house still to be built.

Given their overspend on the chapel,

would they keep to their £200,000 budget?

Would the house be as high-spec? I couldn't wait to see.

And you can find out how they get on later in the programme.

In Stoke-on-Trent in the Midlands, there's a statue

giving public recognition to one of the city's famous potters.

In the northeast district of Smallthorne, where I am today,

they celebrate the planets in the street names.

And talking of the solar system, I did find one street

named after a star in the footballing world.

There's hope for me yet.

Just a ten-minute drive away from Hanley town centre is

the property I'm here to see.

Now, what's up for grabs is a three-bed end-of-terrace house

with a guide price of £45,000-plus

and it's just across the road from a primary school.

Let's take a look and see what's on offer.

So, we're straight in to the main part of the house,

which is lounge and dining area.

It would have been two rooms at some stage during its life,

with a wall just here. Central heating, fireplace,

but lots of light coming in, they've made good use of this space.

Through here, we have stairs going up to the bedrooms.

I'll investigate that in a while.

Into the galley kitchen, which is small, but you could possibly

rekindle some of this, and the bathroom at the end there.

It's all a little bit tired and definitely needs a bit of love.

# I need some love like I never needed love before

# Wanna make love to you, baby

# I had a little love now I'm back for more

# Wanna make love to you, baby. #

And it could be argued that nowhere is loving attention

needed more than in the kitchen.

While the lounge reminds me of a lounge bar with its dado rails

and colour scheme, all that's missing are a few fitted seats

and drinks on the table. I can imagine it now.

Bottoms up!

Meanwhile, upstairs...

So, there's three bedrooms up here.

One to the front of the property, second bedroom's here

and then you've got a box bedroom through there.

No separate access to the third bedroom.

You could put a partition wall up to make it a small bedroom,

but I don't think that would work.

Accessing a bedroom through another bedroom is fairly common

in this area and one solution can be to move doors

and reconfigure a landing or the stairs, but it can be expensive.

The front bedroom is the largest, with built-in hanging space,

somewhere to keep your best whistle and flute.

# Put it on, put it on

# Cos tonight is the night... #

But there are some worrying signs of flaking paint.

Outside in the backyard, you'd need to tidy it up,

but the thing that concerns me is the outside of the house

and the render is not in good condition at all.

If you look up there, some of the render has been removed,

or even fallen away, in the process,

taking a bit of mortar away from in between the bricks,

making that look incredibly dangerous and it would need re-pointing.

ASAP.

Time to call in local estate agent to tell us

a bit more about the area and the property guided £45,000 plus.

This particular property is very close to local shops

and supermarkets and it's close to a primary school as well

and it's a busy area.

But it does need modernising.

What would you recommend for this particular property?

The modernisations that I would basically recommend

for this particular property is a new kitchen, a new bathroom,

new carpets, and perhaps new radiators as well.

And rendering doing at the front and the back of the property.

At an auction guide price of £45,000-plus,

what could this property be worth once all the work is done?

This property could be worth in the region of £75,000,

once it's all done up.

Plenty of headroom there, I think, to make a profit.

What about on the rental market?

On the rental market,

this property has the potential of generating £475 per calendar month.

I think this is a great property with a fantastic guide price.

There may be an issue with access to the third bedroom, a little bit

of damp here and there,

but I think there's a great opportunity to be had right here.

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

So, lot 45. Smallthorne, Stoke.

What's this? 40,000?

Three-bedroomed, end terrace.

40 to get it going?

39 then. 39 left. At £39,000. 40, can I see now?

At 39. 40.

41. 42.

At £42,000. By the door, at 42,000.

At £42,000 then for the first time.

At £42,000 for the second time.

Third and final time. At £42,000.

Can't sell at that. It stays on the market. Please come and talk to us.

As you may have gathered, in the end,

somebody did make an offer which was accepted by the vendor.

That somebody was Lee, who was on the show in 2014,

when he bought a two-bed mid-townhouse.

That was also in Smallthorne and Martin heard about Lee's

amazing history at the start of his developing career.

Five years ago, after buying my first house,

-I woke up in hospital maybe two months later.

-What do you mean?!

-Helicopter rescue.

-What?!

So, I perhaps learnt my lessons there not to go kite surfing again.

Kite surfing?! Oh, no! What happened?

I woke up in hospital six weeks later, I don't know.

Anyway, I've forgotten about that now, concentrating on property.

But Lee's luck is definitely improving.

He got this house for £40,000 and by negotiating after the auction,

he paid less than the reserve price.

My first question was about his new strategy to not attend the auction.

It's a new approach, but at the moment,

I feel like it's working, so hopefully I'll be doing it again.

And you're happy with the price you paid now?

Yeah, very happy with the price I paid!

For a three-bed end-terraced, next to a school, pubs, shops, chip shop

just round the corner, I should have someone living here in two weeks.

Especially if they like their chips.

Lee uses a regular team of trusted workmen to do the work.

He's learned a lot in the six years he's been renovating.

I'm in the position now where I know who to ring to fix the roof,

to fix the doors, to fix the plaster repairs.

I don't need to shop around for quotes now

because I've got my skilled tradesmen who...

I'm looking after them, they're looking after me.

For example, this place, I only got the keys a couple of hours ago.

I've got the doors being measured up tomorrow,

the roofer's coming to sort the roof out at the weekend,

I've got a lady coming in to clean the kitchen

and bathroom on Friday and I'm going away for the next four days.

So I should come back Monday to a property that needs new carpets,

-a decorate and then a tenant.

-Job done!

-That's...

On paper, it's all worked out. Something will go wrong.

There's always something that goes wrong.

So, while you're away, having a bit of a break...

I've got a friend's stag do, so I wish him well for the wedding,

but you've got to make it back from the stag do first.

You've got to make it back as well cos you've got a property

-to finish off.

-I'm not worried about getting back.

I'm not worried about Lee either.

He strikes me as a very sensible young chap.

Normally at auctions,

it's 28 days from the hammer falling to completion,

but Lee needed to arrange a mortgage,

which meant getting a structural survey because of the render.

Lee struck lucky - because he offered outside the auction,

he got more time to complete.

I was quite fortunate in the position that

I had more than 28 days where I wasn't going to lose my deposit

if it all did fall through, but saying that,

I can make quite a substantial investment in valuation fees,

structural surveyor and it could have all gone wrong.

But it didn't. Lee's luck held yet again.

However, I'm not so sure it will

when it comes to that refurbishment budget, which is how much?

Shouldn't go much over 1,500 quid.

But I'll extend it to £3,000 to get a high finish,

carpets that don't need replacing in two years.

The kitchen, that's one that...whether it cleans up nice

or I might need a new oven, new hob, new worktops.

Whilst I'm doing all that, I might as well change the carcasses,

-the cupboard doors.

-Do you think you'll get all that done?

Let's say if the kitchen's not how you want it,

you may have to change it.

The bathroom, you may have to adjust it. Your cleaner as well...

Do you think you'll get all that done within your 1,500, 3,000?

If I have to change the kitchen,

that might put it up a bit, but it will be within the 3,000 for sure.

New render. New mortaring between those bricks, needs to be sorted.

When it comes to rendering, the chimney,

the upper rendering will be repaired,

the lower rendering downstairs that's ready for rendering,

that's just going to be painted like neighbouring properties,

so it's not maintenance-free,

but low-maintenance for the next few years.

Can I say three grand for your budget, ish?

-Let's go three grand.

-Let's go three grand.

Go three grand and I'll come in under, I promise you.

And what about your timescale, to get all that work done?

-You're going away for four days?

-Going away for four days

and within that four days,

that will come out in a timescale of, let's call it, 21 days.

Are you still looking for more property now?

Are you trying to build that portfolio even further?

I am, but I'm in a position now where I perhaps need to

refinance some things to generate some more deposits,

so perhaps if the right buy came along,

I'd scrape together a deposit somehow.

If it's at the right price, you're never going to say no.

Three grand, 21 days, I can't wait to see how it ends up.

-Yeah, thank you very much.

-Good luck. Enjoy your stag.

Thank you, thank you.

So this is one of those situations where not going to the auction

has paid off.

Wait and see what hasn't sold, stick a cheeky bid in and you might

get yourself something a little bit special. That's what Lee did.

Three-bedroom property and he saved himself five grand.

But will he get it done within that 21 days and a three-grand budget?

I'm not too sure.

But you can find out how he gets on later on in the programme.

Coming up, I'm wiggling in Cardiff.

The way it sort of wiggles down here,

the layout doesn't exactly fill me with great excitement.

And for Lee, this Stoke house brought out his inner Picasso.

More painting, more painting.

Now back to Goudhurst, Kent, where five years ago,

I met Nick and Sonia.

They purchased this chapel at auction

and the adjoining land for £290,000.

# We've come a long, long way together... #

Two years later, in 2012, they'd spent £350,000 refurbishing it,

taking their total spend to £640,000.

And then, they were about to start work on the adjoining building plot.

What we're envisaging building is a three-storey house,

one level of which is subterranean.

But we're hoping it will actually be a passive house.

It will not need any heating.

They thought £200,000 would cover it and a year to complete.

20 months later, we're back.

And there's progress,

but let's start with the finishing touches they've given to the chapel.

For a start, outside,

there's a patio area with beautiful geometric shrubs.

Inside - remember the mezzanine floor at the end,

which was an open space?

Well, that's now bedroom four.

# We've come a long, long way together

# Through the hard times and the good... #

And the bedroom that was a storeroom now works as it should.

# I have to praise you... #

The original plan was to convert the chapel into a three-bedroom property

and build a new three-bedroom house on the adjoining land.

Together, they would be able to accommodate Mick's three sons

and Sonia's two daughters.

But now, the chapel has been put up for sale,

and the house is only partly finished.

So what's changed?

We have a recent interesting situation whereby

we have no more money to finish the property, so the intention is

to put the chapel on the market, which will release some funds

so we can complete Chapel View and move across from one to the other.

Time's moved on for Nick and Sonia and their five children

in the 20 months since they started the house.

The children have either flown or are about to fly the nest.

We can't really warrant keeping a house for our children.

Especially when we could do with the money.

What are the reasons for the funds running out on the new build?

We were told that, in fact,

we wouldn't need a heating system in the house,

but we have put in underfloor heating in the event that

some people might not believe us,

if we were ever to try and sell it on that basis.

Have they learnt anything from the new-build house?

-We took out 60 tonnes of... Was it 60? Or 600?

-600...

-Sorry.

-..600 tonnes.

-Correct... 600 tonnes of earth.

And we had to work out a way of retaining the ground

to a height of four metres whilst we did that,

and actually dug the basement in. So we had a few challenges.

The whole idea was that the house looks like a two-storey house

from the front and the back.

It does so from the back, because it's all underground,

and then from the front, once the screening is in,

the house will just appear as two storeys.

Have they learnt anything from living in the chapel?

One thing that it has taught us to be, is tidy!

It's not going to be a show house, but it is a tidy house.

I think we generally live our lives in that way.

There is one exception.

But she's just left.

THEY LAUGH

Now, now! No names, no pack drill!

So, let's have a look at the new-build that will now become

Nick and Sonia's new home.

This is the top floor of the house.

This particular bedroom is going to be our own bedroom.

It makes the most of the views across the weald.

Like the bedroom on the other side of the house,

we have got an en-suite bathroom behind,

we've got full-height wardrobes built in,

some very nice bedside lamps ready to go and some USB chargers

on the plug sockets, which everybody needs these days.

One of the difficulties with this room is the size of the windows,

to the extent that it is creating a bit of solar gain,

so we're going to install some motorised blinds.

But because we wanted to make the most of the views,

we decided that was worth it,

and when we look out of the window, you can see why.

Two floors down in the subterranean basement, the floor,

like the rest of the ones in the house,

is formed from polished concrete.

As well as being the main access to Chapel View,

the basement also has a toilet and the remaining area

will eventually compromise of an office and a bedroom.

Down here is the engine room of the eco-house,

with a heat-reclamation pump system and underfloor heating.

The house, unfortunately, doesn't quite make passive status,

as there are no photovoltaic panels on the roof,

or other means of generating its own electricity.

And finally, there's the ground floor.

This end is going to be our kitchen.

This particular wall will have full-height units,

there'll be an integrated fridge freezer, two ovens,

then there'll be an iron end unit

which will extend to probably about here, I think.

And in here will be the sink, dishwasher...

It's all going to be quite...sleek, shall we say,

so that it looks more like a piece of furniture than actually

a kitchen, because the other end of this room is our main living area.

There's also a balcony at the front, the balustrade is yet to be done,

then over here, we'll probably have room to fit a small

dining table and these sliding doors open from either end to extend out

onto our patio area, which will be the same level as the floor in here.

But I think this will probably be

the room that we'll spend most of our time.

The plot was purchased as part of the old chapel lot,

so it is hard to apportion costs.

But Nick told us back in 2012

that his budget for Chapel View was £200,000.

-Did I really say that?

-Shame on you!

Shame on me! Shame on me.

The new-build house has actually turned out to be very similar

in construction cost to the chapel conversion,

and we've spent approximately 400,000.

Oops! Crikey.

But, to be fair, once they'd realised they'd be moving in,

the spec of the house increased.

Look at that view!

We called in two local estate agents to give us their views

and sale values for the two properties.

Ooh! This is nice.

Starting with Chapel View,

let's hope it's a good bit more than £400,000.

It's a lovely property.

It's much nicer on the inside than it is on the outside.

I think around here the houses are very period,

so to see a high-spec modern house like this is quite a surprise.

But it's a revelation, as well.

I think it's fantastic.

It is quite unusual for the area -

there's lots of character listed properties around here,

but this one really stands out. It's phenomenal.

So, ladies, what's it worth?

In my opinion, this house should be valued at £720,000.

I would put a value of £725,000 on a new build.

Phew! A healthy profit of at least £320,000.

Except they're not selling this one.

However, the chapel, there has been extra work in forming bedroom four,

diverting drains and clearing the common driveway.

And that takes the total cost to £690,000.

I would value the chapel at offers in excess of £890,000.

On the chapel, I would value that at £900,000.

In that case, at least a profit of £200,000

before taxes and expenses.

I think the one next door is probably fractionally low,

and this one is probably fractionally high,

but overall, yeah, it's really pleasing.

So the couple could have been looking at around half a million pounds

total profit, were this just a financial exercise.

But it started out as building the perfect family development.

What's it going to be like living next door, though?

I love living in the chapel, because it's got big, open spaces

and it's quite dramatic.

But I'm looking forward to moving into the new-build as well,

because it's got better views

and I think perhaps the accommodation is better laid out.

And has Mick got any tips for would-be developers?

It's all about planning.

And about making sure you get all your ducks in a row,

that old saying.

Really, really, think through what you're going to do,

plan what you're going to do and try and understand

what's involved in the whole process.

One thing's for sure,

Nick and Sonia clearly have a strong faith in their capabilities.

# I gotta have faith, faith, faith. #

Cardiff, like many of Britain's major cities,

has more than a fair sprinkling of

fantastic Victorian and Edwardian architecture,

brimming with scale and grandeur - for those who could afford it.

You walk down a street like this,

you can't really get over the fact that, in their heyday,

each of these houses would probably have been owned by one family.

I mean, the whole servants thing, you know, endless rooms,

an entire wing for Granny, probably.

Well, like many parts of the country,

these particular properties in Cardiff

more often than not nowadays have been converted into flats.

And that is what exactly what I'm here to see.

It's a basement flat, going price of 70,000 quid. Let's have a look.

Now, I know I'm looking for a basement flat,

but finding the entrance is proving more tricky than I thought.

# We gotta keep searching, searching

# Find a place to stay

# Searching, searching... #

It's GOT to be around here somewhere.

Ah! Eventually!

No front door. Just a side door.

So, through the communal area, which is in nice condition,

which is always a good start, and then into the flat itself.

Now, we are in a basement,

so you expect it to be a little bit claustrophobic.

Let's see how it goes.

Entrance corridor here.

In here - bathroom and loo.

Well, it's not exactly massive, but then, what do you expect?

It could also do with a bit of tarting up.

A new suite and new shower surround etc, etc.

But you definitely get your money back

if you do spend some money in there, so that's good.

Down this little corridor to the first bedroom down there.

That way we'll explore in a minute but through into this room,

and the way it wiggles down here...

The layout doesn't exactly

fill me with great excitement, but this is the second bedroom.

And again, it's... Hm. It's not ideal,

but you have got an en-suite, which is a bit of a surprise.

A few signs of damp on this wall here

and then a back door leading to...

Well, I don't know, a set of stairs and onwards to...

what would have been a fire escape,

which somebody very kindly has built this rather impressive

and difficult to get over wrought iron fence around.

It's not really ideal, is it?

# Oh-oh-oh-oh

# At the top of the stairs there's darkness

# My life is not based on... #

Later, I learned there was a public thoroughfare

at the corner of the building

and the fence was to stop passers-by from falling down the steps.

Maybe a gate would be a better idea.

HE SIGHS

Wow.

Suddenly the flat redeems itself.

You come into this room here, which is your main living room/kitchen

and it is a really nice-sized space.

You've got the patio doors leading out onto the little patio there.

Loads of light and coming in, which is really good.

A good-sized space. It's in half decent condition.

Thank goodness for that.

# Doo doo doobie doo Good thing... #

Yes, this room is what's going to sell the flat.

It actually feels quite light and airy in here.

And it makes up for the less than welcoming bedrooms and bathrooms.

Phew.

And there's another positive outside.

One of the potential issues with flats,

particularly city-centre ones,

is parking, and Cardiff is no different to any other big city.

Good news though. With this flat, you get a designated parking space

just at the side of the building here, so that's great news.

So, there are definitely pluses here

and, once refurbished, with its near-city-centre location,

I could see this doing very well on the rental market.

But what does a local estate agent think?

I'm a bit concerned with the walls.

We're below ground level here in the basement

and I think checking damp and moisture should be looked at.

And really it's lighting which is essential

to really lift the apartment.

Not much more can be done from a point of alterations.

It is what it is.

Yes, some areas could be brighter but if it was turned into

a light, smart city pad,

what could this flat, guided at £70,000, be worth?

In my opinion, the resale value of this apartment would be £120,000.

And how would it fare on the rental market?

This property would rent for £650 per calendar month.

Two sharers or one couple.

Well, the layout might not be ideal but the location certainly is.

I guess you can't have everything. Who decided this flat was enough?

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

Lot 41 is a converted two-bedroom lower ground floor apartment.

Start me at £60,000, somebody.

60, wave a hand. Thank you. 60, I've got you right at the back.

At 60. And 5 now can I see?

I've got 60. 65 somebody or 62, if you like.

62. 64 there, 64.

66, 68,

70? 70.

72? 72, no. At £70,000 I've got here.

70,000. 71?

Thank you. 71 there. 71.

72?

72. And 3. 74?

74. 75?

75. 76...

So, interest in the flat was hotting up

and we rejoin the bidding at £85,000.

..85,

86,

87, 88?

No? At 87,000, right at the back then for the first time...

Second time... Third and last, I'm going to...

88,000, just in time. 88.

89? 89 and 90?

90. 91?

91, 92, 93?

At 93. 94?

Nope. At 93,000 then for the first time...

Second time...

Third and last time then. Right at the back at £93,000...

-GAVEL BANGS

-Sir, well done, your number, please?

Is number 106. Thank you very much.

So, £23,000 over the guide price, the two-bed Cardiff flat

was sold for £93,000 and the successful bidder was Brian.

Brian bought this as a joint venture with business partner Ewan,

and eagle-eyed viewers will recognise

that we've met Brian before in January 2015,

when he and Ewan bought a house 20 miles north of Cardiff

in the small village of Ferndale.

But they had a big problem with the retaining wall,

which was collapsing into an existing extension.

So, having sorted that one out,

they're taking on this challenge in Cardiff.

What attracted you to this flat, then?

-Um... Not a lot, really.

-Oh.

Not the normal answer I would expect.

In auction again we just went for a property with a good location

and thought that we could get something out of it.

You'd seen it before you bought it?

Yeah, I had seen it before we bought it,

and it's an unusual-looking property,

but hopefully we can get something done with it.

This will be Brian and Ewan's fourth property project together

and the roles in the partnership are clearly divided,

with Ewan providing the funding,

while Brian does the renovation work,

and as yet they haven't decided

whether they will rent or sell this one once it's complete.

So, what work have you got planned for the place?

I'm going to be putting in a new kitchen with a breakfast bar

to try and separate the kitchen to the lounge area.

Redecorate right through.

New carpets in the bedrooms, wood flooring in the passageways,

and half and half in the kitchen.

Right. New bathrooms?

Maybe not new bathrooms but I'll have a better look at them

-and if we can spruce them, then we'll spruce them up.

-OK.

By the rear door are some signs of damp. Any idea what's causing that?

Yeah, I had a look outside

and there was a problem with the drainpipes, the downpipes.

They've actually come apart, so we'll be looking at that

and getting that seen to and sorted out.

What are your thoughts about the fact that that door opens out

onto a set of steps which leads to a bit of gate?

Yeah, I'm going to have a look at that again

cos that's very unusual but hopefully I will get something

-that you can access there with a gate, you know?

-Yeah.

Cos it's a shame just to have a door there with no exit.

What's the budget for the work?

-5,000 - 6,000.

-OK.

What's the timescale for the work?

-I would say six weeks.

-OK.

In, out and sort it out.

In and out, sort it out, and quick as.

-Well, congratulations.

-Thank you.

-Good luck.

-Thank you very much.

-Looking forward to seeing how you get on.

-Thank you.

So another property for Brian and business partner Ewan.

Hopefully they won't have AS many issues to deal with

as they did last time but you never know.

You can find out how they get on sorting out this little flat

later in the show.

Now, we've seen how one of our buyers got on

but what about the other two?

Yes, how successful have their projects been?

Why don't we find out?

Now we head back to Smallthorne, Stoke-on-Trent,

where this three-bedroom cornered terrace

was bought after auction for £40,000,

£5,000 under the guide price.

New owner Lee put in a cheeky bid for it

when it didn't reach its reserve price.

It's a new approach but at the moment I feel like it's working,

so hopefully I'll be doing it again.

And you're happy with the price you paid now?

Yeah, very happy with the price of it. For a three-bed, end-terraced,

next to a school, pubs, shops, chip shop just round the corner.

His strategy was to do a quick fix-up and then rent out the property,

and to say his budget was frugal would be an understatement.

It shouldn't go much over 1,500 quid.

But I'll extend it to 3,000 to get a high finish,

carpets that I don't need to replace in two years.

The kitchen, that's one that...

It's whether it cleans up nice or, you know what,

I might need a new oven, new hob, new worktop.

So, if I'm doing all that, I might as well change the carcasses,

-the cupboard doors.

-Do you think you'll get all that done...?

If the kitchen is not how you want it, you may have to change it.

The bathroom, you may have to adjust it. Your cleaner as well.

Do you think you'll get all that done within your 1,500 - 3,000?

If I have to change the kitchen, that might put it up a bit

but it will be within the 3,000 for sure.

And what about your timescale to get all that work done?

You're going away for four days?

I'm going away for four days and within that four days,

that will come out the timescale of... Let's call it 21 days.

Three weeks including render and chimney repairs seemed tight.

It took five weeks and we're back to see how much love

he's given this house.

# It's driving me crazy

# You can try to lie

# But you're not gonna not gonna deny

# No you're not gonna not gonna deny my love... #

The two tones of paint and wood stain and have gone.

New external doors and a neutral colour scheme with white wood

makes everything brighter and more modern.

# You can't deny my love. #

The kitchen and its appliances were well-worn.

New oven, hob and worktops, along with a newly tiled floor

have refreshed it.

The cupboard carcasses were fine

and the doors cleaned up with a face-lift of more modern handles.

When Lee removed the lino in the bathroom,

he found this tiled floor underneath.

He put a new power shower in and tidied up the utility room.

# I always thought we'd get there Someday

# It's driving me crazy... #

Upstairs, all the carpets have been cleaned,

walls replastered where necessary,

and damp caused by leaking guttering has been sorted.

# But you're not gonna not gonna deny

# No you're not gonna not gonna deny my love

# You can't deny my love

# My love... #

But perhaps the biggest paint job has been to the outside walls.

Over to you, Lee.

I've gone right the way through the property.

In general, it's been decorate, decorate, decorate,

clean, clean, clean,

more painting, more painting, and get everything safety checked.

Electricity, gas safety certificate,

the roof effectively has been MOT'd for five years,

plasterwork and damp.

Everything has been checked and it's all ready to go for let now.

Looking back at the flaking render and dodgy mortar on the chimney,

what happened there?

It was just a quick render repair

and repair to the mortar with a bit of sand and cement.

My roofer went up there and made a good job of it.

As well as the roofer, Lee hired in a plumber, a carpenter and a plasterer.

So, what was his main job?

The main jobs that I've done are painting, painting, painting.

He should have bought some grout at the same time. Any major problems?

To be honest with you, there's been no major problems

other than motivation to come back here and paint again

and come back the following day and paint again.

When it's raining outside

and I've got to paint again it was a bit demotivating

but I'm close to the end now, so I'm all happy.

But it must be distressing that one of the chimney breasts

is rejecting the new paint.

It looks like it's because of a poorly ventilated chimney,

so we'll ventilate the chimney, quick plaster repair,

lick of paint, and hopefully we'll have cured that.

Plastic air grille at the bottom,

then get the paintbrush out again, Lee, and you should be OK.

We called in not one, but two estate agents to get their judgment

on the refurbishment and to see what value Lee has added to the property.

Batting first, the agent who saw it before refurbishment.

The standard and the finish of this property is above average,

I would say, and it suits the area pretty well, as well.

The selling points of the property is, it's your PVC double glazing,

it's got combi central heating,

it's got a big floor space with it

and obviously it's in a convenient location to your local shops,

schools, amenities, bus route at the end of the road to the local school.

Lee bought this property for £40,000 and did he stay under

that challenging three-grand maximum refurbishment budget?

Oh, yes, he did.

He spent 2,500, so his total spend is £42,500.

And what would it sell for?

In its current condition, the property would value

in the region of £65,000.

In today's market, I would expect the property to go on the market

in the region of £65,000, with an acceptable figure around £62,000.

A potential profit of £22,500 before taxes and expenses.

Tempted, Lee?

I would sell at that price but I've got a tenant,

so there's no need to sell.

Should that tenant fall through or move on in a few months,

I would perhaps consider selling it at that valuation cos...

I could do it all again and I think I could achieve the same again.

Well, with a tenant in place, the paintbrushes

can go into storage for a while.

If I were to let this property, I would expect the property to achieve

realistically around £395 per calendar month.

If the owner rented this particular property,

he would achieve a rental income of £450 - £475 per calendar month.

Well, the rental figures come in at what I've rented it for,

there or thereabouts,

so I didn't really need an estate agent to tell me that.

I know enough about the market as it is.

Lee says he's getting near the top end of those figures

and at a rate of £450 per calendar month

he would get a yield of almost 13%.

It's been quick.

It started fast, finished fast, but it's taken its toll on me

and I need a break.

Well, when you've recovered, pal,

my garage could do with a lick of paint, please.

Earlier in Cardiff, I looked around a two-bedroom flat conversion

bought by Brian with his business partner, Ewan, for £93,000.

I asked him why they chose this property.

We just went for a property with a good location

and thought that we could get something out of it.

It's an unusual-looking property

but hopefully we can get something done with it.

That "something" was going to depend on whether they decided

to rent out or sell,

but whichever the case, Brian was going to be busy.

So, what work have you got planned for the place?

I'm going to be putting in a new kitchen with a breakfast bar

to try and separate the kitchen to the lounge area.

Redecorate right through, new carpets in the bedrooms,

wood flooring in the passageways,

and half and half in the kitchen.

Right. New bathrooms?

Maybe not new bathrooms but I'll have a better look at them

and if we can spruce them up, then we'll spruce them up.

Brian estimated six weeks for the work

but a bad back extended that to ten weeks.

MUSIC: Beethoven Symphony No. 7

If you're wondering why we're playing Beethoven,

it's because this piece was written in a flat.

How appropriate.

Oh, I've just been told it should read,

"It was written in A flat major." Sorry.

Anyway, we're back.

Let's start in the lounge-kitchen,

where Brian was going to fit a breakfast bar.

And here it is. And there's a new kitchen to go with it.

# Forever more... #

Well, I don't know about that, Gary, but it should last a good long time.

# Everything changes but you... #

And so should the new central heating system

and the laminate floor.

The new tiles and all new appliances make a huge difference

and the lack of lights that is often the scourge

of a basement flat is also helped because...

-# The situation changed

-The situation changed

# And so much is new... #

Got it in one, Gary. Now, the bathroom where again...

# Everything changes but you... #

The cramped space with a tiny corner sink you could barely get to...

# Everything changes but you... #

..is more spacious, thanks to replacing the bath with a shower.

Don't get me wrong, I like a shower,

but this one looks like it could be quite invigorating.

But a word of caution before you all start ripping out your baths -

some people still prefer them, including me.

So, if Brian decides to sell, he could be limiting his market.

It's another case of form versus function but with this room

there's no doubting that it functions a lot better

than it used to.

And the master bedroom has seen some changes too.

# Everything changes but you... #

Where there used to be an en-suite,

it looks like Brian's fitted a sauna.

# Everything changes but you... #

Only kidding!

It's a walk-in wardrobe for that hanging space so often overlooked

in a modern flats. And, after all, it's only a short walk to the loo.

The small bedroom certainly lived up to its name

and although nothing can be done about its size,

new carpets and the neutral colour scheme tie it in

with the rest of the flat.

So, how did everything go with the refurbishment?

We had a problem with the boiler where when we turned it on

it caught fire, so we ended up taking the old boiler out

and putting a brand-new one back in.

Fortunately for Brian, his heating engineer/plumber was able to deal

with the smoking boiler before matters got worse.

An electrician was the other specialist tradesman Brian used,

replacing all the electrical fittings with brushed silver,

leaving Brian to sort everything else out,

like the damp by the external door in the main bedroom.

The actual damp was initially coming from the downpipes,

faulty downpipes, which we repaired

and made sure that all the problem was sorted.

Further improvements outside included cleaning up the patio area

by the kitchen, giving a much brighter feel inside,

as well as out.

Brian and his business partner Ewan

also decided to go for a sale rather than renting,

so they refurbished to a higher standard

than originally planned, spending £9,000 on the refurbishment

rather than the forecast of 5,000 - 6,000.

The extra money went on the higher-spec kitchen

and the higher-spec bathroom and obviously the boiler.

So, how does it feel spending two and a half months

to turn this around?

It feels good. Well happy with the finish,

so looking forward to being able to sell it.

We called in two local estate agents to give us their opinions

and valuations of the flat and who better to go first

than the agent who saw the property before Brian started the work?

The transformation of the apartment is really first class.

It was a dull, dreary apartment before the renovation

and now you have a stylish apartment somewhere where a first-time buyer,

a young couple, would love to live here.

Yeah, the property's been finished to a very good standard,

really nice and bright. I think the owner's done a fantastic job.

Brian and Ewan aren't planning on renting but it's always good to have

a fallback position. So, what would this be worth on the rental market?

If the property was to go on the rental market,

I'd look to put the property on for £650 - £675 per calendar month.

In my opinion, the rental for this property

is £650 per calendar month.

Taking the average, that's getting on for an 8% yield

on their total spend of 102,000.

That's good to know but I don't think we will go the rental route.

But it's handy to know.

So, they're not going to live in it or rent it out,

so what could they expect when the sale boards say, "Sold"?

In my opinion, the open market value of this apartment

as it currently stands is £130,000.

If I was to put this property on the market,

I would look to put it on the market for £130,000.

Giving a potential profit of £28,000 before taxes and expenses.

How does that feel?

Yeah, that's about right.

That's the figure we had in our heads so, yeah, that's fine.

-That's great.

-So, have you any advice for someone starting out

on the refurbishment trail?

Just keep it simple and hopefully keep earning some money out of it.

And might I suggest having a heating engineer close by

for when your boiler catches fire?

Well, that's it for today's show

but there are plenty more properties and owners where they came from.

Yep. Join us next time to find out who bid and what they bought.

We'll see you then for more Homes Under The Hammer.

-Goodbye.

-Bye for now.