Episode 44 Homes Under the Hammer

Hello and welcome.

The fast-moving property market stops for no-one,

but don't let that prevent you from jumping aboard.

I can't predict when it is the best time to buy

but I can give you a great place to start.

So, why not buy your next property under the hammer?

Properties can sometimes be deceptive.

They can look all right on first glance

but it doesn't always mean they are going to be a wise investment.

Yeah, so always do your research, view before the auction

and you will make an informed decision.

Yes, so were the buyers on today's show as prepared

as they needed to be? Here's what they bought.

Coming up...have these developers in Glasgow really thought it through?

So you nipped out, hadn't seen the properties,

-hadn't seen the legal packs, bought three properties.

-Yeah.

In Hastings, some blue-sky thinking could be needed for this pub.

Whoever comes in here,

I'm sure it is a case of ripping it all out and starting over again.

And in Stoke, is buying this flat a bit of a no-brainer?

There's not a lot of work that needs doing in this flat.

It would be a doddle to turn this around.

All of these properties have been sold at auction.

We'll find out who bought them at what they paid for them

when they went under the hammer.

Well done.

I'm going west today, to the west of Scotland

and four miles from Glasgow city centre, the area of Scotstoun.

Property here is very popular with families,

due to its mix of villas and flats,

as well as the school catchment area and a 20 minute train ride

to the city centre from nearby Scotstounhill station.

Scotstoun shares the boundary with the district of Yoker,

where the property is a little less popular

and therefore a little less pricey.

# Go west

# Life is peaceful there

# Go west

# In the open air

# Go west

# Where the skies are blue

# Go west

# This is what we're gonna do... #

Well, the property I'm here to see

is on the cusp of Scotstoun and Yoker

and for that reason, it's reasonably priced.

One bad thing, this is your only entrance down this little lane.

Certainly no access at the front where there's a bus lane.

But it is an upper flat conversion.

Guide price is 40,000 to 50,000 quid.

Let's go up the stairs and see what we can find.

Well, even before you get in, bit of maintenance required.

As you can see, the guttering is dripping there,

annoyingly right where you walk in. So, yeah, get that sorted.

Into this little entrance area and straightaway,

ooh, feels a bit cramped.

And why, oh, why, would someone put in a lowered, false ceiling

when the actual ceiling is so much higher?

Yuck! Not sensible at all

but two bedrooms, believe it or not.

A fairly tiny one there. Bathroom there.

I say bathroom - it's a loo and just a shower.

No bath, so it feels a bit cramped.

That's a slightly bigger bedroom so that's, well, semi-good news.

It all changes when you come into this part of the flat, though.

That bit there, not good.

This bit here, well, it's not a bad living space.

There's a bay window there,

although it does look out onto that fairly busy road.

But this kitchen area here with a breakfast bar,

it's making the most of this space.

It's almost like it's a flat of two halves, isn't it?

A bit bleurgh over there. Actually, OK over here.

I think some internal figuring out needs to be done.

Well, the obvious thing might be to knock out the shower room,

making the kitchen even more roomy

and then use the smaller bedroom to create a good-sized bathroom.

But as well as the cost of the work, you would be losing a bedroom,

so do your calculations, as it may not be worth it.

Well, about 20 metres from the rear of the property is a serious problem.

Now, I'm a great fan of foliage, greenery, trees,

all that kind of stuff, but this is one leaf -

or one plant, or leaf of one plant -

he says, eventually getting it right -

that you really need to emblazon into your memory.

That, dear viewer, is Japanese knotweed.

It is a nightmare.

The fact that it's so close to the property, yeah,

that is a serious issue that needs to be addressed.

# It's not unusual to see me cry

# I want to die... #

You are not wrong, Tom.

Japanese knotweed can grow to the height of two adults

in about ten weeks and its roots are incredibly invasive -

so strong that can compromise the structure of a building.

It can be removed but you need to take advice

because you could go to prison

if you don't deal with the contaminated soil properly,

or you can be prosecuted

for causing a private nuisance if you let it spread.

The very fact of its existence near a property

can make lenders very nervous

and could scupper your chances of a mortgage.

And the bad news isn't over.

Well, at the front of the property, two fairly big issues.

Number one, a very busy main road.

Number two, a significant structural issue with the flat itself.

If you look above the window there, you'll see a lintel.

It's got a crack in the middle of it.

That will need to be replaced

and it will also need to be replaced in keeping

with the rest of the building,

so you are going to have to find a piece of sandstone

like that and repair whatever other damage is going on, up on that roof.

Sounds expensive to me.

And how do I know that there's damage on the roof?

Well, I don't, but I can take a good guess

and brace yourself, dear viewer, because a rant is coming.

Inside here, there are large patches of damp

that, combined with the fact that it looks like

the original ceiling's been damaged, and covered over,

to me screams leaky roof.

I suspect those false ceilings are just a cheap way

to ignore a bigger problem, and let's be honest,

ignoring problems does not make them go away.

There's a reason we use the phrase papering over the cracks.

Anyway, now you've heard my opinion, in no uncertain terms,

what does a local estate agent think?

Needs a lot of work.

Needs a lot of attention before anyone would either buy it

or rent it, I think.

In my opinion, I wouldn't change anything structurally-wise.

I would renovate it to a standard where it wouldn't be too high,

so that first-time buyers would consider it.

And after renovation, what does he think this flat,

guided at £40,000 to £50,000 could achieve on the open market?

In my opinion, on the rental market, it would look to achieve

somewhere between £400 and £450 per calendar month.

On the open sales market, I would expect it to achieve

somewhere between £70,000 and £75,000.

Well, a bit of an unusual one this.

A flat that definitely could do with a bit of refurbishment.

But it's in a desirable location and a pretty attractive guide price.

I am sure it attracted a lot of interest

when it went under the hammer.

£40,000-£50,000 your guide, two-bedroom upper flat,

requires a degree of upgrading.

Where shall we start?

At 45 am I bid? 40?

At 40,000... 40 here. At 40 I'm bid.

At £40,000, are we done?

At £40,000, then.

First time at 40, second time at 40.

41. 42?

43? 44?

45? 46?

47? 48?

You're out. With you at 47, sir.

On the aisle at £47,000.

Half, anyone?

If not then I'm selling it at £47,000.

First time, second time,

third and final time, are we done?

Well done, sir. Yeah, I've got you.

The successful bid of £47,000 made towards the end of the auction day

came from Bud, on behalf of his work colleague and friend Janet.

They both work in IT, and Bud, who owns a couple of properties,

is being her adviser.

We met them before on the show

when they worked on Janet's first project, bought at that auction.

They bought three in all

and I've met up with them to find out about this one.

-Janet, Bud, good to see you.

-Hello!

-Hiya.

Congratulations. Tell me why you wanted to buy this flat.

Used to the area, being in Scotstoun.

Thought it was in a great location

and it was coming in at quite a reasonable price.

-Did you see beforehand?

-No.

-Doyyy! Why?

I had been on holiday and, erm, I thought, "Och, it'll be OK."

Erm, and obviously it wasn't really but, erm,

that was...that was my initial thought.

So what did you say to yourself when you walked through the door?

Well, before I had walked through the door

I hadn't looked at the legal pack or...

-You hadn't looked at the legal pack either?

-Or the survey.

Do you close your eyes and walk across main roads

-and hope it will be all right?

-I was having a bit of fun, to be honest.

It could have cost a lot of money, this bit of fun.

So, when I had went home and I had read the pack

and the survey report, I thought, that's not too bad.

-This is after you bought it?

-After I'd bought it.

-Right, fine.

And then I had drove over

and then we had saw the crack in the lintel and then, erm,

was getting a mortgage, so I had to get another survey done,

and that survey, erm, had quite a different picture.

# I see trouble.

# Up the road... #

Janet's survey revealed a nasty surprise.

The surveyor valued the flat

at £2,000 less than Janet had paid at auction

and rather less than the previous home-report value

of £75,000 contained in the legal pack.

Home reports contain a survey,

an energy report and other information about the property,

but they need to be renewed after 12 weeks,

so they can become out of date.

The change in valuation meant Janet had to make up the shortfall

by borrowing money from her two sons and from Bud.

But then, that's what buds are for!

Janet's survey also pointed out the lintel,

so Janet's going to get a structural engineer to look at it,

and then there's the knotweed issue.

So when I investigated on the internet

they're saying the surrounding premises

may have to put a barrier screen in to prevent ingress,

but it is purely root ingress in the UK,

you don't get seed or pollination through the air,

-so it is able to be stopped.

-Right.

Although that's not to say it won't cost you £1,000

or something like that. It just adds to the cost.

So tell me what you're going to do to the flat then?

I think the plan is to get a builder in and strip it out,

that's what it needs, a total refit.

-Right.

-There's no heating, so it needs heating as well.

Possibility - I'm not sure about the double glazing,

if that needs replaced, but it needs a substantial amount of work done

to it to bring it up to reasonable standards.

What kind of budget have you set aside?

-SHE SIGHS

-We're thinking...

-Lots of sighing in your responses, you notice that?

-Hopefully...

Make the questions easier!

-Between...

-They're not exactly hard, are they?

We're hoping 10,000,

but we're thinking it might actually be 15, but we're hoping ten.

Depends what they have to do to get that lintel sorted, doesn't it?

-Exactly.

-And the roof.

-And the roof.

-OK, so what is the timescale then?

-I think four months.

I think we probably won't start any work

-for about six weeks, due to doing some work on the other flats.

-OK.

But I think once we start it's a good four months.

'Janet plans to rent her properties out,

'but how did she come to buy three at once?'

We were at work and we'd went up to the auction during lunch.

-So you bought this on your lunch hour?

-Yeah.

So you nipped out from work, went to the auction,

hadn't seen the properties,

hadn't had the legal packs, bought three properties?

-HE did!

-He did? I love the way she's blaming you!

I always get the blame.

CHUCKLING: 'Well, apparently Buds are there to take the blame too.

'Is Bud relaxed about this project?'

I think with most of these places, once we get the structural survey,

put it right, I don't think we'll lose much,

and it always sounds more daunting than it is.

-Well, thank you for sharing the story.

-Thanks very much.

At least you're still smiling.

-Have to.

-Good to meet you.

-Thanks very much.

-You too.

-Thank you, cheers.

-Good luck with it.

Well, Janet and Bud are laughing about it now,

but clearly they made a lot of mistakes

when it comes to buying properties at auction.

Not reading the legal pack is an absolute no-no,

not visiting the property beforehand...

is just not sensible at all - and to do it three times on the same day!

Oh, blimey.

How will they get on sorting this place out?

You can find out later in the show.

We're on the south coast now, in the town of Hastings.

The Victorian seaside resort is well-known,

but I have a soft spot for the Old Town,

which is nestled in a valley to the east of the centre.

Its shingle beach still houses Europe's biggest fleet

of beach-launched fishing boats,

and altogether has a cool, bohemian feel.

This property is under a mile from Hastings' Old Town,

and has probably played host to thousands of the local residents

at one time or another.

"Why?" I hear you ask.

Well, up until about a year ago, it was a local pub.

With a guide price of between £150-175,000,

and three whole floors to play with, and loads of rooms,

and presumably a bar,

I can't wait to see what surprises this one holds.

It's a sad fact of recent history

that lots of local pubs are shutting down,

so there may be a few properties like this

on the market in coming years.

Well, this is the main bar, and like most bars,

it's a big open-plan space.

And it's wonderful!

Look at these beautiful windows, gosh, letting in so much light -

I love them.

But whoever comes in here,

I am sure it is a case of ripping it all out and starting again.

Gin and tonic, please. Lovely.

It's water.

# I would like just one glass of water... #

-LAUGHING:

-Yes, well, water is all that's on tap here now.

But if the bar may be limited in its choice of refreshments,

the building isn't short on space,

with a large rear lounge to go along with the main bar area.

And there's the obligatory toilets, and numerous other rooms.

And of course, in the basement,

a large cellar for all the beverages.

And as far as exploring the building is concerned,

this is just the aperitif.

Upstairs, it is VAST.

Look at this wonderful wide hallway, you've got lots of rooms

leading off, there is so much character everywhere.

And in this room, well, look, you've got this original fireplace

still intact, which is fabulous, another beautiful window.

But here's an interesting thing - years ago,

this pub was three different houses,

but what I'm going to tell you now is the most important thing,

so listen up.

This already has planning permission

to convert it back into one house and two flats.

So this really is a development opportunity staring you in the face.

The building is in a conservation area,

so with planning permission passed,

that's one very important hurdle already crossed.

My only concern would be, is two flats

and a house really the best option for all these rooms?

I think I need to take a look outside to check the state of play.

OK, it is a bit mind-boggling.

From the front you can see two storeys,

and the cellar is underground in the front part of the basement level.

But from the back there's four storeys.

The two lower ones actually belong to a flat which the buyer

will hold the lease for.

It's not ideal, as you won't own the whole building.

If this is to be a residential development,

whoever takes this on will certainly have their work cut out.

The other slight negative here is that the garden

is overlooked by the occupied flat,

and the presence of the flat makes the available space

in the rest of the building slightly odd in configuration.

Hence why two flats and a house

were considered the best way to subdivide the building.

But is that really the best option?

What does the local property expert think?

Front elevation is desirable, you've got some nice original features

and size-wise, it is very generous.

Looking round the building,

you've got some obvious damp penetration problems,

which may be costly,

and I would certainly be looking to get some quotations in that respect.

So if the conversion to two flats and a house was carried out,

what kind of values might we see?

For a three-bedroom house with the garden,

I would like to achieve £190-200,000.

For the pair of two-bedroom flats, I don't believe there would be

a garden area for those, so you're probably looking at £110-120,000.

Rent-wise, if we're looking to let them out,

for the three-bedroom house we'd look to achieve £750-800,

and for the pair of two-bedroom flats, £600-650 per-calendar-month.

What an amazing property, three whole floors of opportunity here,

but who has the time and the money to take on such a challenge?

Is it last orders for this pub? Let's go to auction and find out.

Lot 116, and we move down to the south coast.

It's a freehold, former public house with planning permission

for change of use, to provide one house and two self-contained flats.

Opening bid at 150, please, on 116, 150 anywhere? Yes, 150 I have.

52-and-a-half, anyone?

52-and-a-half there, thank you. 155?

All right, 55. 57-and-a-half?

57-and-a-half. 160?

160. 62-and-a-half?

62-and-a-half. 165?

165. Sorry, you behind actually, 167,500. So 170?

170. 72-and-a-half, either of you?

72-and-a-half. 175?

175. 77-and-a-half?

No.

On the wall at 175. Against you both there - anybody else?

First time then at 175...

second time then, against you here, any more?

Third and last time at £175,000, your bid, on my left,

against you there.

175...

Yours, sir. Well done. 175.

And so for £175,000, the Belmont Hotel was bought by Jason.

I was intrigued to know what he had planned for such a large building.

-Jason, congratulations.

-Thank you very much.

What a fantastic pub in a great location.

Well, it's gorgeous, yeah, I absolutely love it.

So why did you want to buy this? What took your eye?

As soon as I walked in, I just love the building,

and it has a lot of space and is in a good location,

so it's just gorgeous.

Interestingly, this is a great development opportunity

for anybody, the plans are that it's for a house

and two two-bed flats,

so what are your plans, are you going to stick with that?

-No, I plan to turn it just into residential for myself.

-Really?

So you're just going to push aside the plans

somebody's worked very hard on to get that,

and you're going to develop it into a house for yourself?

Yes, because I just love the space, I think it's perfect for me.

So how much experience have you got with doing something like this?

-Erm, practically none.

-What?!

I thought you were going to say, "Oh, yes, I'm an architect..."

So you've never done anything like this before?

Well, I've done little jobs, I lived with my parents before,

I worked on their old houses on the inside, wallpapering,

things like that, odd jobs here and there.

Oh, it's a bit different to what you're going to be doing here.

Yeah, certainly, it's a bit overwhelming at the moment.

I'm not surprised Jason is feeling overwhelmed,

this is a huge project

and he's going to have to start from scratch and reapply

for planning permission

because he wants to turn it into a single house.

But he does have a friend who's an architect who can help him

make sense of the building.

Come on, tell me your plans.

How's it going to look, how's it going to feel,

how many bedrooms are you going to have?

Well, I see it on two levels, I'll work on the upstairs first

and turn it into five bedrooms, put an en-suite in,

really do it up to a reasonable standard,

and after that's done I will work down here and turn it

into a real open-plan area, with the kitchen where the bar is.

-Mm.

-And I hope to have the arrangement

of the kitchen be similar to how the bar is at the moment.

And the function room I'll turn into the lounge,

and a sort of dining area out the front.

So how many walls are you knocking down?

Basically, I'm just going to knock out the back of the bar,

and apart from that I'm just going to...

I think I'm just going to leave all the walls up as they are.

-So, structurally, nothing much will change in here?

-No, no.

How much do you think you can do this for then?

I have a budget of I think about £50,000,

and every time I walk around I see more work that needs doing,

but we'll just have to see.

A £50,000 budget is tremendously optimistic,

and I think Jason knows it.

It's a starting point, and he plans to do some of the work piecemeal,

gradually working through the building to get it how he wants it.

So, Jason, tell me,

how much time are you going to be able to give this project?

A lot of time, I can work... I will be living here,

and I can do my business from home,

so I can work on the house at the same time.

So tell me about your business.

Well, I sell things on the internet, I have a business there,

but I'm also an artist, I paint pictures,

and I'll use the house to...

My paintings, I paint the fishing boats on the beach,

so it's part of my life.

Hopefully Jason will continue to find inspiration

for his work in the Old Town.

It's a lovely place, and Hastings clearly has his heart.

Born in London, grew up in Hastings,

lived down in the Old Town for about 30 years,

and then I moved up to Birmingham for 12 years,

so I'm returning to where I grew up.

Wow, so it's almost like you're coming home, really?

-Yes, basically, yes.

-Did you ever visit this pub?

-Erm, I drank in this pub about two years ago, yes.

-Seriously?!

-Wow.

-I never realised I was going to own it at one point.

Can you imagine sitting down with your pint of lager thinking,

"Wow, I'm going to be living here one day"?

Yes, yeah, amazing, really.

So tell me what your friends and family think?

Do they think it's exciting or that you're completely crazy?

A bit of both, a bit of both.

But I think the ones with vision

can see it's a wonderful opportunity and it's lovely.

We could talk forever about this project -

how long do you think it's going to take you?

I'm giving myself six months, see what happens in six months.

OK, so six months and £50,000, I can't wait to see the outcome.

It's been lovely talking to you today, thank you.

Thank you very much.

What an amazing project, to turn a public house into a home!

My concern is Jason has no experience

and only a £50,000 budget.

He's certainly got the creative spirit of an artist,

but not the business mind and time constraints of a property developer.

How will he get on? What will this place look like?

I can't wait to find out.

Join me later in the programme and you can see for yourselves.

Will this Stoke property be problem-free for this developer?

-What have you got to do to this place?

-Not a lot.

-Exactly!

That's why I bought it.

But in Hastings, has Jason bitten off more than he can chew?

It's been a huge learning curve,

I'm still overwhelmed by just how much work there is.

Back now to Scotstoun on the west side of Glasgow,

and what turned out to be a problematic property.

It's £40-50,000 guide price seemed very tempting for a two-bed flat

in a desirable district,

but sometimes if things seem too good to be true...

A cracked lintel suggested structural or roof issues,

and just over the road, the kind of greenery you don't want.

THAT...dear viewer, is Japanese knotweed. It is a nightmare.

The fact that it's so close to the property,

yep, that is a serious issue that needs to be addressed.

# You're really growing on me... #

It was bought for £47,000 by Janet,

who was taking on the development with help from her colleague Bud.

She actually bought three properties at the auction, but...well,

let's just say they weren't the most prepared.

We were at work and we'd went up to the auction during lunch.

So, you nipped out from work, went to the auction,

hadn't seen the properties, hadn't had the legal packs,

bought three properties.

-He did!

-He did!

I always get the blame.

-# And don't look back, baby

-Don't look back

# And don't look back

# Oh, yeah... #

Oh, dear.

Neither of them knew about the roof problems,

the lintel or the knotweed until after they'd bought it -

but Janet was staying positive and trying to look forward.

She'd budgeted £10-15,000 to sort this place out,

and hoped the work could be completed in four months.

Well, ten months later, we're back.

Have Janet and Bud managed to rescue this difficult dwelling?

Well, one look will tell you they certainly have.

There's been a complete redecoration, with cleaning, new plastering,

carpets and a new central heating system.

It looks much better -

and let's be honest, the decoration was the least of their worries.

How did they tackle all the work to get to this stage?

What we did is, because of the broken lintel

and the leaks in the roof, we got an engineer in

just to look and check to see how bad the damage was.

He assured me that the problem was localised,

and it was the stone was just weakening

because of the age of the property.

He said we would have to get the lintel repaired fairly quickly,

so we went ahead, got the stonemason in,

he fixed the lintel, he put a big angle iron,

bolted the stone together,

and patched up any of the gaps, cracks and holes,

and made it sound.

He says it's due to last another 100 years,

so it should be OK.

I can't emphasise how good it is that that lintel could be repaired,

and didn't have to replaced.

Still, you take your luck where you can find it.

So, it's lintel - check.

Now, what about the roof that was letting in the damp?

I got a roofer in to check it out.

The roofer actually invited me up on the roof with him -

I had a good look about,

and the roofs are solid on the adjoining premises and in our own,

and it's just wear and tear, and needed general maintenance.

He said that the chimneys were both uncapped,

but also a lot of the leading and flashing had broken away,

and so he's fixed that, and the leaks have gone,

so quite happy with that.

Another tick in the box.

Mind you, if that roof and those chimneys had been better maintained,

Bud and Janet wouldn't have had nearly as much work to do

sorting out that damp and those ceilings.

Now, last but - ahem - not least, what about that knotweed?

The Japanese knotweed that's obviously just at the boundary,

we've been e-mailing the local council over a period of time,

and they agree that that weed, it's on their land,

so there's a three-year programme to remove that,

and that goes between April and October every year,

but it'll take three years resolve it.

So, with all the sorted,

would Janet buy more properties without even viewing them?

I would suggest not to do that, and I won't be doing it again.

Well, I'm glad she said it.

Since we were last here, rather than just advise,

Bud has gone into partnership with Janet,

so that they pool their resources and split the workload -

and although it's been ten months,

they've only been working on this property for four,

deciding to renovate the other properties

they bought at auction first,

as they could get them onto the market quicker, and generate income.

But have the kept to their budget?

We had a budget, we reckon, between 10 and 15,000,

and if we had went out to get somebody to do the work for us,

then we'd have exceeded that,

so we did quite a lot of the work ourselves -

any of the manual stuff, the kitchen, the bathroom,

some of the basic plumbing,

which then brought the overall price in about £11,200.

Well, I'm impressed -

but having spent £47,000 buying the property at auction,

will their hard work be enough for them to make a profit?

We've asked along two local property experts to get their opinion.

Well, this is my second visit to the property,

and I'm very impressed with what's been done internally,

and the property is in a good location.

I think this property would appeal to both first-time buyers

and investors.

Well, you can see there's been extensive work done to the property,

inside and out.

It's been a full refurb, plasterboard, the electrics,

central heating, carpets, the lot,

and so they've done a really good job.

So, having spent a total of £58,200,

what could Bud and Janet expect,

were they put the property on the open market?

In the sales market,

I expect the property to achieve somewhere in the region of £70,000.

If you were to sell the property now,

I would estimate that the general value on home report

would be around about £75,000.

And in the rentals market, I would expect to achieve

somewhere in the region of £450 per calendar month.

I would estimate rental value to be around £450 per calendar month.

I think rental,

we had always hoped for somewhere between £400 a month and 450,

so if these boys are saying 450, that suits me.

No wonder Bud approves - that would give them a yield of just over 9%,

which isn't bad at all, given how this could have turned out -

and Bud has spotted that the excellent sales valuation

could mean some cash freed up for their next project.

I think the higher sales figure

hopefully means when we've got a mortgage,

it'll be a higher mortgage,

so it means we can get more properties

to keep to the rental market.

That means we might be able to buy two!

-Better one at a time!

-Rather then one.

Oh, Janet!

Hanley, as regular Homes Under The Hammer viewers will know by now,

is one of the six towns that makes up Stoke-on-Trent...

but what you might not know,

as well as being famous for the Potteries,

it was also home to the late, great Sir Stanley Matthews - legend.

So, just two miles outside the centre of Hanley

is the property I'm here to see -

it's a ground-floor, one-bedroom apartment

with a guide price of £44,000 plus,

let's get inside and see what you get for your money.

Before that, I've got two little bonuses for you.

The first is that the property comes with its own allocated parking spot.

Very handy.

And the second - it's got its own entrance.

Nice carpet in this hallway.

Got a bit of storage heating there...

And in here we have got the airing cupboard -

and there seems to be a slight leak in there, nothing major.

The bathroom looks in good condition.

Reasonably modern, as well.

Bedroom just there, which is a good-sized bedroom.

Kitchen - again, in good condition.

You wouldn't have to change the kitchen at all.

Bit of elbow grease in there, and I think you would be fine -

and your lounge is here.

Could think about taking that wall out, but for me,

I'd keep it in, because of the smells, keep 'em all in the kitchen.

What I have noticed is there's only heating in the hallway -

nothing in here, nothing in the bedroom, as well -

which is pretty strange for a reasonably modern flat.

So, if you're thinking of this,

you must have to factor that into your budget.

Apart from that, it'd be a doddle to turn this round.

# Something tells me I'm into something good

# Something tells me I'm into something

# Something tells me I'm into something... #

I don't want to get ahead of myself, because it's not perfect,

and little jobs do have a habit of mounting up,

but as far as an investment property goes,

I think this could be a safe bet.

There's not a lot of work that needs doing in this flat,

but in my experience, if it seems too good to be true, it often is.

Don't take things for granted -

for instance, I would've expected to have seen central heating in here -

there isn't any.

Check the electric, check the gas -

not to mention management fees, rates,

ground rents - all that information should be in the legal pack.

Make sure you read the legal pack.

Having said all that, there really isn't that much to be done here,

and I'm finding it hard to see how you could add value.

So, I think you're talking about a rental property.

Doing a bit of research, one-bedroom apartments in this area

are pulling in around £400 per calendar month.

If you get it for anywhere near the guide price of £44,000,

you're looking at a yield of around 10%,

which I think's a fantastic return for any investor.

On further investigation, I found that the annual ground rent

here is £400, and the service charge is 490, so, just under £800 a year.

Considering the possible yield here,

I don't think it would put anybody off.

Plus, there's 970 years left on the lease,

as it was only renewed in 1994, so no problems there.

What would a local estate agent make of this one-bedroom flat

that is guided at £44,000?

I'm particularly impressed with this property,

because it doesn't look as though there's much that needs doing.

Perhaps maybe a lick of paint and a couple of new carpets,

and the new front door, and then I think it'll be ready to market.

I think that this property will appeal mostly for the rental market,

for single people and couples,

and also for, possibly, students,

which are close to the Staffordshire University.

But what kind of values is he expecting

once the flat has been spruced up?

If we were to sell the property,

I would to mark it at a figure in the regions of £70-75,000.

For rental I would look at £400 per calendar month.

There's very little that needs doing to this apartment.

If I'm being ultra picky,

you've got that little leak in the airing cupboard -

but apart from that, lick of paint, new carpets,

give it a bit of a clean and I think you'd be up and running.

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

Resold ground floor apartment, it's one-bedroom, double glazing

and an allocated parking space.

40 to start?

One bedroom. 40 bid, thank you, at £40,000.

42, can I see now?

42. At 42.

44.

46. 46,000.

With the bids now rising steadily, we rejoin the bidding at £52,000.

52 - 52.

53.

54.

55.

56.

No? At 56. Second row at £56,000.

57 anywhere else?

At 56.

You're back in. 57.

No?

57, against the back wall at £57,000, then.

All done now?

£57,000 once...

£57,000 twice...

Third and final time, £57,000...

-GAVEL BANGS

-You bought it, sir, well done.

That successful bid of £57,000

belonged to seasoned property renovator Shaun.

With his own letting agency in nearby Newcastle-under-Lyme,

and a long history in renovation, I was eager to meet him

to find out his plans for his latest acquisition.

-Shaun, nice to meet you. Congratulations, sir.

-Thank you.

What have you got to do to this place?

-Not a lot!

-Exactly!

That's why I bought it.

Is that why, is that one of the attractive things that...

-No...

-..sucked you in, so to speak, to this?

What interested me -

the low maintenance once you've got them, easy to let,

that's it, really -

and obviously the fact that you haven't got to do much work,

it's just bonus and bonus, really.

-And did you view it before you bid?

-Yes.

-Is that one of your rules?

-Yes.

-It's one of our rules, as well!

-Most definitely!

-I'm glad you've stuck with it.

-Most definitely.

You've been doing it for some time, now, haven't you,

-property renting?

-Yeah, I've been renting properties,

renting...I've got a small portfolio myself,

I've been renting now for quite some time since the '90s.

I've got me own letting agency,

and that's been going ten years now, so...

So, do you go to auction just to buy to rent,

or do you look to sell as well?

Er...I have bought properties in the past to sell,

but I'm not a very good seller, I tend to...

DION LAUGHS I tend to keep them.

I've got the ready market there -

obviously through my letting agency I've got tenants,

I can get tenants quite easily. I make sure - and I tend...

I think I know the variety I use to buy,

so, you know, once you've got them, why get rid of them?

So, does that depend on the area that you buy in?

It might be a better selling area than it is a renting area -

does that bother you?

Yeah - yes and no, I mean, I've got a mixed bag in me portfolio,

which I'd like to think a mixed bag -

HMOs down to one-bed apartments, flats, so, varied, but...

I've got certain rules that I don't buy -

for example, on a main road, I tend not to buy,

and little rules like that that I follow -

but therefore maximising your chance of getting rid

if you need to get rid.

I mean, I have sold properties, but I don't like it.

-Yeah, I tend to keep 'em.

-Keep hold of them. Keep them as yours.

-Yeah.

And that's your pension. That's what you're talking about, isn't it?

That's the pension, yeah, or, you know, sell up and go and live...

DION LAUGHS ..live on a beach

when you're a little bit older.

-Which would be nice!

-Yes.

-Which is the plan!

-Yeah, it is.

Most definitely, yes.

# Beach baby, beach baby

# There on the sand

# From July to the end of September... #

Before Shaun gets his flip-flops on, though,

he will need to do a little bit of work on this one-bed flat, won't he?

Stick some paint, couple of storage heaters,

new front door -

front door's been damaged, possibly a bit of vandalism -

that's it.

Is there anything here that you've seen

that you've thought, "Oh, I didn't know that was there."

Yeah, I've just noticed that the header tank was leaking.

-So...

-Oh, OK.

Yeah, but I don't I don't think that's a major job.

-No, it's...

-I've already phoned the plumber, drained the system...

-Oh, so you're on it already.

-So...

Asked for advice from my plumber, yes.

So, just for that little bit of plumbing work,

little bit of a leak, you paint,

I don't know - carpets, are you changing the carpets, as well?

-Carpets, yes.

-Storage heaters - how much will that cost you?

-What's your budget?

-I'm looking in the region of about £1,700.

-Give or take a couple of hundred.

-Mm-hm.

£2,000, I'll be...

I'll be disappointed if I've spent that much.

With Shaun so confident, he'll be disappointed

if he's spending his £2,000.

His son will be doing the painting and decorating,

his cousin is a plumber, and his timescale is - well, it's just days.

Just in case you thought he was hanging about,

he already has a tenant sorted.

I was going to put the property on the market for 425,

hoping to get around the 400, 410.

I have got a tenant who currently rent through my company,

but he needed a ground floor for health reasons,

so, they want to move in here...

And because I know him,

they're actually moving in at a rent of 390.

-OK.

-I don't mind taking a hit for £20-£30 when you know them,

because it lessens the risk, somewhat,

of any problem tenants, cos I know they'll look after it right.

And you're helping someone out, as well. Nice feeling, that.

Yeah, yeah. Yeah.

-Shaun, I wish you all the best.

-Thank you.

-Good luck.

-Thank you, thank you.

Shaun's very experienced.

He's got his own letting agency

and when it comes to finding the right property,

I think he's done it again.

Very little needs to be done here.

I think this'll be a doddle for Shaun.

You can find out how he gets on later on in the show.

So, we've seen how the story turned out for buyer number one,

but we still have two more tales to tell.

Yes - will money be made when all is said and done?

Let's take a closer look.

Back to the seaside now and this former pub

in Hastings' Old Town with a guide price of £150,000-£175,000.

Set over three floors, inside, it had everything you'd expect

of a classic British pub,

plus, out the back, there was a large garden.

That wasn't all this place had to offer, though.

This already has planning permission

to convert it back into one house and two flats,

so this really is a development opportunity staring you in the face.

# I hear your footsteps in the street

# Won't be long before we meet

# It's obvious... #

Just you hold on there a minute, Mr Aztec Camera.

Though it's a brilliant bonus that the planning's in place

for a house and two flats,

it doesn't necessarily mean it's the only option -

and, indeed, artist Jason had a different plan in mind

when he bought the property for 175,000.

Jason had been raised in Hastings and wanted to turn it

into his dream home, but it's going to be a big project.

Was he ready for this?

So, how much experience have you got with doing something like this?

-Um, practically none.

-What?!

I thought you were going to say, "Yes, I'm an architect and..."

So you've never done anything like this before?

It's a bit overwhelming.

# Y'all ready for this? #

Well, ready or not, Jason had given himself £50,000

and thought it would take about six months.

So, time to get cracking.

After eight months, we've returned to see how Jason's getting along.

Well, the good news is that Jason's planning application

to turn this into one residential property

went through without a problem,

but I think it's safe to say the project is...um, well, ongoing.

How's Jason found it all?

HE LAUGHS

Well, it's really slow progress, the whole procedure.

What you think will take two hours seems to take about two days.

It's been a huge learning curve

and I'm still overwhelmed by just how much work there is to do on it.

Oh, dear. I did warn him this would be a very big job.

So, what's Jason been doing over the last eight months?

Needed the roof fixing,

cos there was damp coming in in various places.

Some of the ceilings were in a worse state of repair

that I thought they were, so I've had to take four down

and had them re-boarded and replastered.

I've stripped the top floor of all its wallpaper.

I've done some work to the garden and stripped 15 doors of the paint.

Jason's done a lot of the work himself,

only calling on professionals for the specialist jobs,

such as plastering, rewiring and plumbing.

With any redevelopment, a property throws up surprise issues,

and this is a large property -

and it's been throwing up quite a few surprises!

Looking at the...the pipework,

I realised that there were live gas pipes running through the property,

so I've had to have those sealed

and just having the gas piped to the boiler.

The boiler is in good condition, so I don't have to replace that.

But I have had to replace the water tank,

which was an added expense I didn't expect.

I've been away, but I've been told, since I've been away,

that I've got a family of bats in the roof,

so that's an added...well, not problem,

cos I quite like them being there.

I just have to see what I have to do with them next.

# Upside down

# Boy, you turn me... #

I'm glad Jason's an animal lover,

because it is in fact illegal to get rid of bats,

either by killing them or to damage or block up their roosts.

Bats tend to be seasonal creatures, so won't necessarily be there

all year round, but the roosts are protected, even when they're absent.

Still, there's one silver lining - bats eat lots of annoying insects.

Back to the project in hand - Jason started with the roof

and is now working his way down through the property,

room by room, and wait for it...

One of the bedrooms is finished!

Well, almost.

Artist Jason also runs an online sales business.

How has he got on, managing all these different projects?

Since I've been here, I've had no time to paint.

I've turned a bit of the function room

into a work space where I can...

Got a desk set up, so I can work there.

I've turned the beer cellar into a bit of a stock room,

and I've just tried to carry on doing my business.

It's been very difficult.

# Something's gotta give, something's gotta give

# Something's gotta give... #

Jason will work away, hoping to have a bathroom plumbed in within a month

and thinks it'll take another six or seven months to complete.

I was a bit worried about his optimistic budget of 50 grand -

how's it going so far?

I've spent about £12,000 on the property so far.

I think the £50,000 is still optimistic.

I think it will go beyond that, in the end.

But at the moment, I'm keeping to it, which is great.

It's a wonderful house, light and airy,

and really looking forward to getting on with it

and finishing it and living here.

That's what we like to hear,

but I now want to hear the thoughts of two local estate agents.

How do they think Jason's mammoth task is coming along?

I like the property. Obviously, a lot of work needs to be done to it,

but I think once it's finished, it's going to look very, very nice.

In this area, with the garden

and the size of the rooms, it's going to look very nice.

I think you'd be surprised,

when you factor in the time and costings to renovate the home

together with the purchase price,

there could still be a very healthy profit sum at the end

if he does decide to sell.

Well, let's test that by getting some resale valuations.

Jason bought the property for 175,000

and if he sticks to his budget, he will have invested 225,000.

So, what could it sell for when finished?

Once this property's finished,

it will sell in the region of £325,000-£350,000.

In terms of resale, I would value the house

at £300,000-£350,000, based on current market conditions.

Wow, that's, um... Yeah, a surprise. Yeah, that's really nice, yeah.

Jason may have no plans to sell this house,

but it's always reassuring to know there's equity in a property

and, using those higher valuations, if he decided to sell,

Jason could have a potential pre-tax profit of £125,000.

I can't wait to come back and see the house when it is finished,

but knowing what he does know now, if he was back in the auction house,

would he still take on this massive endeavour?

Yes, I'd certainly go for it again, certainly do it again.

But then maybe you should ask me again in a few months' time.

Time to return to Hanley in Stoke-on-Trent,

where I was looking at a rather nice one-bed ground-floor apartment.

Guided at £44,000 plus,

it had the benefits of its own parking space and main entrance.

There was very little in the way of central heating

and a small leak in the water tank, but with good-sized rooms

in good condition, there wasn't too much else that needed to be done.

# Too much, never too much

# Never too much, never too much... #

It was bought for £57,000 by Shaun, who owns his own letting agency.

The experienced developer thought this was an ideal purchase

for making a good yield, and was eager to complete what

little work was needed as soon as possible.

Is there anything here that you've seen that you've thought,

"I didn't know that was there"?

Yeah - I just noticed that the header tank was leaking.

I've already phoned the plumber to drain the system.

Oh, so you're on it already? What's your budget?

I'm looking in the region of about £1,700.

£2,000 - I'd be disappointed is I spent that much.

Shaun thought he could get this turned around in just a week.

I had very little reason to doubt him but remember,

in property developing, things don't always go to plan.

How has Sean got on?

Well, it's time to find out.

Three weeks later, and we've returned.

Well, the flat certainly looks much brighter and cleaner.

So, what exactly has Shaun done?

The place has been decorated and as you can see,

new carpets fitted throughout the property.

We've also had a new casement on the front door,

which was damaged previously.

There was a leak, which we spotted previously, off the tank.

The leak was the overflow pipe, which apparently was not

fastened to the tank, so basically, plumber's fitted a new pipe.

And I think that pretty much sums it up.

But Shaun said he was going to install new heating -

so, where is it?

Yeah, that's the storage heater for the bedroom,

obviously a smaller one in the lounge.

The heating that was in the property

when we purchased it at the auction, there was just two electric heaters,

which...not really very economical and not really sufficient,

so we've put economy storage heaters in,

which hopefully will improve the property

and also keep tenants happy.

# It's all been done

# Woo-hoo-hoo

# It's all been done... #

They may have just been little jobs, but he's got them all done.

His experience is showing.

He's done the work that'll make this flat appealing to tenants,

but hasn't squandered money on jobs that won't add value.

The bathroom, like the other rooms, has had a lick of paint.

I did contemplate replacing the tiles and putting brighter,

flashier tiles in the bathroom, but...

Won't affect the rental income, in my opinion.

So the tiles have stayed the same, just had a good scrub up.

This all seems to have been far too easy.

Has he had any problems at all?

Pretty straightforward, no problems whatsoever.

The biggest pain, really,

was getting rid of the stickers that were in the bathroom, which is...

If that's the only problem we've got, happy days.

# These days are ours

-# Happy and free

-Oh, happy days

# These days are ours

-# Share them with me

-Oh, happy days... #

Happy days, indeed, Shaun.

After making it sound so easy,

I hope he stuck to his budget of £1,700.

We spent £1,580.

Not only that, but the work took a total of nine days

over a two-week period, so he's come in on time, too.

Shaun has made this look easy,

but he does have years of experience,

experience he has used to get the right property for him

at the right price.

Once you get that, everything else becomes much easier.

Talking of property experience, it's time we found out

from two local property experts what they thought of Shaun's investment.

This is my second time in the property.

I'm particularly impressed with the high level of finish,

especially in the bedroom and the lounge.

I know that there wasn't that much that he needed to do,

but what he has done, he's done to a great standard.

There would be strong demand from both a sale

and a rental point of view.

I think particularly on the rental side,

it would be a property you could let very quickly and very easily.

So having bought the property for £57,000 at auction

and having spent just under 1,600 on the renovation,

what the property be worth if it was put on the open market?

If we were to sell the property,

I would look to market at a figure between £70,000-£75,000.

I would place this property in the open market

in the region of £70,000.

If we were to rent the property, I would look to put it on the market

at a figure between £375 and £400 per calendar month.

I would anticipate a likely rental income

in the region of £400 per calendar month.

Having spent just under £58,600,

those top values would give Shaun a pre-tax profit of £16,400.

But it was the rent that Shaun was more interested in.

Although the original tenant changed their mind,

he's already secured another tenant, charging £410 per calendar month.

With this being such a success for Shaun,

what advice would he give other would-be developers?

My advice is always seek professional advice,

both before you purchase a property and after.

The advice, nine times out of ten, that you can get from professionals

can steer you away from potential pitfalls.

Well, that's it for today's show,

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

Yeah - join us next time to find out who bid and what they bought.

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

-Bye for now.

-Bye.

-Bye.