Episode 45 Homes Under the Hammer

Hello. In some parts of the country, property bargains can seem

so much harder to come by. But they are out there.

Yes, you're going to have to do some pretty decent research

if you want to find a property which can deliver you good returns.

So, where do you start? I've got a suggestion for you.

Go down to your local property auction.

Budgets can be big or small

but there's one thing that doesn't change - everybody wants a deal.

But did the buyers find what they were looking for

-on today's programme?

-Well, let's see what they bought.

First up, in Radcliffe on Trent, and I'm focussing on the positives.

As I look around, nothing seems to be broken, nothing's falling down.

While in the sleepy village of Fordingbridge in Hampshire,

I'm left a little speechless.

Come in here, though, and wow!

And in Margate, Kent, it looks like I'm heading underground.

Down, down, down, down. It really is lower basement flat.

All these properties have been sold at auction.

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

when they went under the hammer.

Sold.

We're off first to the East Midlands and Radcliffe on Trent,

a sought-after area with some highly desirable housing.

I could be on any street in any town in Britain.

We all know these bungalows.

The 1950s and '60s have left a fair few of these

on our suburban streets and they are great houses.

However, a lot of them haven't been touched since the 1960s

and we are seeing a fair few rear their head in our auction houses.

I'm here to see this one behind me.

It has a guide price of £135,000 and it's a three-bed. Let's take a look.

The bungalow looks in pretty good nick from the outside.

There's the added bonus of a garage and off-street parking.

It doesn't look to me

as though a cheeky loft conversion is on the cards here.

That roof just looks too low,

but maybe I'm getting ahead of myself here.

Oh.

OK, straight into the hallway.

And as I come into the lounge,

the interior's sort of lingering in the same era as the exterior.

It's a bit of a '60s, '70s throwback,

but as I look around, nothing seems to be broken, nothing's falling down.

It just needs to be brought into the 21st century.

# There's a reason for the 21st century... #

It may look a bit dated,

but the sitting room-cum-dining room is a really good size.

The kitchen wants freshening up and I'd be tempted to see

if I could open it up just that little bit more.

The bathroom is not a bad size

and there's also three bedrooms up here too.

The good news continues on the outside with a good size garden.

Forget an attic conversion. You just don't need it.

This spacious three-bed property is small on the outside,

but on the inside, there's so much space.

It's the Tardis of British architecture.

So, how much doctoring does this bungalow need?

The gas central heating looks new but the electrics and decor

need some time-travelling to the present day.

MUSIC: Theme from Doctor Who

Opening up the kitchen might be good,

but is that secondary glazing I see there?

New double glazing throughout

would definitely push your renovation budget up.

Where does the word "bungalow" come from?

Well, I've been doing my history homework

and it comes from our historic relationship with India.

The root of the word "bungalow" comes from the word "Bangla",

which in the Hindi language, means "Bengali".

So, a house in the Bengal style, which is a one-storey house

with a veranda, became a bungalow and very popular they are too.

Moving back to this continent, we asked a local estate agent

to give us his thoughts on this lot,

guided at £135,000.

It's obvious it does need modernisation throughout.

It's got a very good size garden, three good size bedrooms,

a nice spacious lounge,

so it's got plenty of potential.

And, once done up, what does he think

the bungalow could fetch on the resale market?

I would be looking to put it on the market

within the region of £210,000, £215,000.

And on the rental market?

I would have thought the rentable value

would be within the region of £750 to £800 per calendar month.

So, who wants to bring this 1960s property into the 21st century?

This Tardis has got to do some time-travelling.

Let's see what happens when it went to auction.

Lot 34.

Gable-fronted three-bedroom detached bungalow that's got a single garage.

Who's got 130 to start me? He has, thank you.

£130,000.

131? 131. 132.

133. 134.

135? 135.

136. 137.

-138. 139...

-The bungalow is proving popular with the bidders.

We rejoin at £153,000.

£153,000. Would 500 help you?

At 153... 500 at the back.

153.5. 154?

154. And a half?

154.5. 155.

Sure? £155,000. It's going to go.

At £155,000 for the first time.

For the second time.

Third and last opportunity. We're selling at £155,000.

-HE BANGS GAVEL

-It's yours, thank you. 155.

Well, what a battle,

but sticking to the task in hand and getting the bungalow for £155,000,

was first-time auctiongoer Jane, who attended with her husband, Clive.

Jane and Clive live locally and they're both architects.

Developing's something of a sideline in renovating properties to sell on.

I met them back at the property to find out more.

-Jane, nice to meet you. Congratulations.

-Hello. Thank you.

-Same to you.

-Thank you, Dion.

-Lets start at the beginning.

How was the auction for you both? First time?

Yes, we weren't expecting to buy anything at the auction,

so it was a bit of a surprise when we landed with this one, yes.

-Did you just go for a day out?

-Yes, partly.

-OK.

Just to see what it was like. We thought we'd better do some homework

before we actually bought one and we were surprised when we got this.

Did you look at anything at all before you went, just in case?

-I saw this one beforehand, but Clive hadn't seen it at all.

-No.

-Lucky you then, eh?

-Yeah. It's very nice.

In your mind, did you see it at auction and think,

"Mmm, that could be quite interesting"?

I think we've seen similar properties before

and we've done other properties up like this.

Because we're architects, we tend to do a lot of bungalows like this

and renovate them for other people, so when we saw this,

we had a very good idea of what we could do to it as well.

-So, you're both architects full-time?

-Yes.

-Yes.

So, what's sort of enticed you into the property developing world?

-Get us out the office, really.

-THEY LAUGH

-Yes.

-Is it a passion or...?

-Um, yes, I think it is.

I think when you're an architect, it's a vocation.

It takes over a lot of what you do.

Sometimes it's nice to be able to be in charge

-and make the decisions yourself, you know.

-Yeah.

Clients are great, but sometimes they make decisions

you're not always OK with and it's nice to be in charge.

Have you got yourself a decent portfolio now?

We only really like to buy them

and transform them for people to live in and sell them again.

We don't really want to hold property.

We'd much rather do it up and sell it on.

Is it the same standard of property - not so much bungalow, but is it...?

-It's always bungalows.

-Always bungalows? That's all you do?

-Mmm-hmm.

-So, why only bungalows? Tell us about that?

I think there is a real need for bungalows to be renovated.

They're quite often left, like this one is,

in a sort of fairly empty state.

And the people that are moving into them

often aren't in a position to do them up themselves.

When we've finished a project, it hopefully looks like a new building

and we sell it, effectively, as a new building.

New certificates, new electrics, new heating system,

new lighting throughout, completely redecorated, new floors.

To all intents and purposes,

it will be like a new building for the new owner.

And is your passion the same, Jane, for turning these bungalows around?

Yes. You sometimes walk into them and they're rather sad

and they've been left for a number of years

without any real major improvements being made to them.

We can get in and we can change that and we can make them sing again.

We can bring them to life again

and make them fit for the next generation, the next 50 years.

And I can see the attraction.

They are perfect for those with disabilities, downsizers

and older people who are thinking

stairs might present an issue in later life.

Young families would love the space

and with child-safe gardens, honestly, what's not to like?

Jane and Clive have a team of trusted builders who will carry out the work,

but I think there may be more to this renovation than meets the eye.

So, when you get your team of builders in,

what's the first thing you're going to do?

We've got to strip the building down before we can start rebuilding it.

And then it will be, first fix the electrics, first fix the heating.

There are some nice-to-do things,

like the big window at the back of the lounge.

I'd like to drop it and put in some big, folding, sliding doors,

but that would mean building a patio

and that might be more expensive than we need it to be.

So, we've got to think about that

and we have to think about access down to the garden

and just, generally, one thing might lead to another.

-It's a domino effect, the costs, isn't it?

-Yes.

What's the budget for all the work that you'd like to get done?

I think, realistically, between £15,000 and £20,000.

And I think it'll turn out to be £25,000 by the time...

-You think it will be more?

-Yeah.

Jane will find opportunities to spend more money

-on the project, rather than less.

-Mmm-hmm.

-OK.

She pretty much goes for a niche market of doing the best job

that she possibly can and she'll want to finish it

as well as she possibly can for the people to move into.

I don't want to cut corners. I like it to be finished and finished well.

I'll put extra insulation in the roof,

I'll put extra insulation in the walls. I'll do whatever it needs

to make sure that it really is the best it can be.

That says high spec. That says whoever gets this property next

-is going to have a very good home.

-Yes.

-We'd hope so.

It wouldn't be a good effort for an architects' practice

-if it looked like a shack.

-Good point!

So, we'd want to work to the best we could, rather than cut corners.

I'm getting quite excited about this one. I know that we always say,

"Keep an eye on the budget and don't overspend."

Usually, that's good advice, but in this case,

I think going high spec could pay dividends.

Now, the majority of your budget - whether it's 15 to 20 or 20 to 25 -

where's the majority of it going to go, Clive?

I think a fair amount will go on simply replacing the windows

to a good specification.

We'll replace the heating system throughout.

The boiler looks relatively new, but whether we'll keep it...

We'll replace the electrics throughout

and we'll put on a new incoming services board,

so a lot of it will go on stuff that people,

-in fairness, won't really see.

-Yes.

And what they will see, hopefully,

in terms of decoration and the bathroom fittings, will be good.

What about your timescale from start to finish, getting the work done?

-How long are you hoping it's going to take you?

-Three or four months.

Three of four months is normally what we tend to find.

We tend to find it's slow to start,

then there's a really busy six weeks and then it slows to finish

and then it always ends up with something hanging out

the back of the door, doesn't it, like the garage door

or something, not being fitted, something like that.

Listen, guys, I wish you all the best. Great combination, great team.

-Thank you very much.

-Good luck.

-Thank you.

Good luck, Clive, good luck.

I really want Jane and Clive to be successful with this project

and I love that Jane, as an architect,

is so fond of our great British bungalow.

Join me later to find out how they get on with this particular one.

-# There's a little white duck

-Quack

# Sitting in the water

-# Little white duck

-Quack

# Doing what he oughta

# He took a bite of a lily pad

# Flapped his wings and... #

I'm in Hampshire, in the stunning New Forest National Park.

Absolutely glorious it is, too.

More specifically, I'm in Fordingbridge,

which gets its name from the old medieval bridge

which spans the River Avon here.

You know what?

It's a very nice place to live.

# Give me the country The country side of life

# Give me the country The country side of life... #

Everywhere around, you have all the countryside your eyes can feast on.

And there's a lovely mix of modern, medieval,

Victorian and Edwardian properties.

And all just 20-odd miles away from Southampton.

All of that means, of course, that there are some hefty price tags,

with a detached house selling for around £700,000.

So, if you haven't got three-quarters of a million pounds

to spend - and, frankly, who does? -

you might want to head to the auction

to get yourself a bargain. And how about this?

A large Victorian community hall, recently used,

amongst other things, as a school, a youth centre.

Lots of building, lots of grounds, lots of parking,

but the guide price, £195,000,

would give an indication there might be lots of problems ahead too.

This lot is actually situated in the hamlet of Godshill,

just outside Fordingbridge and it was, once upon a time,

a Methodist chapel, but has, latterly, been a youth hostel

and, having served so many functions, it does look,

unfortunately, a little...functional.

Well, straightaway, when you come through the door,

you get the feeling of that...

one of its more recent uses as sort of an Outward Bound type centre.

You can imagine this full of kids with Duke of Edinburgh stuff

and boots and rucksacks and stuff.

A kitchen area there, the sort of entrance area here

and it's sort of corridors going all over the place.

Definitely kitted out, at the moment, to cater for the needs

of large parties of young adults or children or whatever.

That bit's a bit, eurgh. Come in here, though, and wow!

This, presumably, was some main leisure area, I suppose,

a communal room. But what a fantastic space it is.

This is what it's all about. Your mind starts racing.

There's definitely a lot of space here -

over 2,000 square feet, in fact.

Could this be a home or a couple of homes?

Is there the scent of a good prospect here?

So, in this instance,

the property itself is really only part of the story, isn't it?

It's the location and the footprint. You've got a lot of space here.

Unfortunately, at the moment, most of it is laid to tarmac -

this parking area at the back, and no gardens to speak of.

If you weren't to keep this as it is, what would you do with it?

You could try and get planning permission to covert it,

ideally, I think, into a residence, a house.

As we know, houses round here go for a lot of money.

But they do that because of the location.

Look what's just to the side of the property - trees.

We're in a national park - one of the most beautiful national parks

in the country, the New Forest.

So, in order to get planning permission

to convert this into a house,

not only are you going to have to approach the local planning offices

but also the National Parks Authority

and they're going to be really fussy about what you build here.

However, the good news is, it ain't too pretty at the moment,

so maybe, just maybe, that gold at the end of the rainbow,

which is converting this into a residence,

isn't actually out of reach.

The first thing to tackle when it comes to planning,

I would advise, is getting pre-application advice.

Having an early discussion could save you a lot of time and grief

in submitting invalid applications.

What words of wisdom does a local estate agent have for us

on this unusual lot, guided at £195,000?

The building does offer an amazing amount of space.

It's probably unfortunate it's on the main road.

It's obviously very institutionalised

in the way that it's set out inside.

I can see that most of it's studwork,

partitions between all the spaces, so it can be knocked through

and it would create an amazing open-plan space.

This property currently has class D1 permission

and it would need to have its change of use approved.

Would it be a straightforward process

to change this from its current form to a house or even houses?

New Forest National Park are

an extremely dedicated planning department.

They have very, very specific rules and changing accommodation,

such as this, into residential accommodation is not their favourite.

They'd prefer it to have the use it had before.

They do not like changing things into residential accommodation,

so I think that is the main issue.

OK, so this might not be all straightforward,

but I have a feeling it could be very worthwhile being persistent.

Remember, the guide price is an intriguing £195,000.

What does the agent think this property could be worth,

if it were to become a house?

I can see a value somewhere between £600,000 and £700,000.

Whoa, that has got to be interesting.

What of rental potential?

If it was rented, then I can see a value

somewhere between £1,600 and £1,800 per calendar month.

Well, one to get the old grey matter going, this one, isn't it?

Fantastic potential, loads of opportunity, great location,

but it is going to take someone with perseverance

and a big imagination to cook up an idea that's going to work here.

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

Bags of potential, I would expect, for this one.

Who'd like to give me a start on this? 220 anywhere?

If not, you tell me.

-175.

-Thank you very much. Who said that? Good.

Thank you. 175 I've got.

176 anywhere? 176. 177, sir?

177. 178, back in. 179.

-180...

-Bidding was now fast and furious,

so we rejoin when it's reached £201,000.

Hello. 201. I'll come back to you. 201, new place. 202.

203. 204?

Where were we? 203, with the gentleman at the front on my left.

Anybody else? If not, 203 for the first,

203 for the second, 203 for the third and final time.

-HE BANGS GAVEL

-All done. Sold. 203. Well bought.

The successful bidder was Charles.

We've met Charles before when, back in 2012,

the former banker bought a property in Hammersmith

which he successfully renovated and sold on for a nice profit.

I met Charles back at his latest acquisition to find out his plans.

-Charles, very good to see you.

-Good to see you too, Martin.

-Again.

-Again.

-There doesn't seem to be much of a running theme

in your choice of property, if I can put it like that.

We've gone from a how many bedroomed flat?

A very small, very compact one-bedroom flat,

-very nice flat, well located.

-Great location. To...?

An eight-dormitory hostel in the New Forest.

Why have you bought it?

-I bought it, ideally, to convert into a single residence.

-Whoa.

-Not on this footprint!

-Well, I think we need to reduce...

We have about just under quarter of an acre of ground to play with,

-which I should think over half is covered by the property.

-Yeah.

I will need to get change of use,

in addition to planning consent

for whatever the building's going to look like.

But I think the chance of getting that should be improved

if I'm going to reduce the size of the property

and to greatly improve the look of it.

We've got some flat roofs outside. They're not very attractive.

Some more modern extensions have been put on,

not really in keeping with the original Victorian building,

which I think was probably a Methodist chapel,

built towards the end of the 19th century.

So, I think we can improve the look of it,

but I'm not underestimating, at all, the effort and time

it's going to take to achieve change of use

and I bet I won't get it on the first one,

might not even get it on the second one.

It might take a couple of appeals to get there.

Charles is a man on a mission

and has a very clear idea of what this house will look like.

I would keep the old original part of the building

and then convert that into a house,

ideally with some kind of a mezzanine floor,

perhaps with one or two large bedrooms up there.

You do get some view

from the windows at the back and front of the house,

so I think it would be nice to use those

and then to use the room that we're standing in at the moment

as your large living space -

kitchen, diner, living room, whatever.

Needs to be broken up a little bit cos it is a very large space.

-Working on the budgets then...

-Sure.

I can imagine the construction cost is going to be -

and this is to do a very nice high spec, four-bed house -

is going to be upwards of £150,000.

And I would think the professional fees,

including the planner and the architect,

could well be around 10% of that.

But if you did that and add that to what you paid for it,

-you've still got a lot of profit in this, haven't you?

-I think so.

A four-bedroom house -

admittedly one with perhaps a slightly larger garden -

within this village would go for very substantially more

than the £400,000 we're talking.

Well over half a million, probably towards £600,000.

Who are you doing this for?

-Um, I probably am doing it for myself.

-Oh, right, good.

If you said to me,

"Would a converted Methodist chapel, schoolhouse, hostel,

be my ideal home in the country?", I'd probably have said not.

But if, at the end of it, we end up with a very nice house,

I could see myself keeping it.

But I may well keep it for a limited period of five years

and then move on and do another project.

-Well, listen, congratulations.

-Thank you.

-A few challenges ahead.

-A lot of challenges ahead.

-I'm really excited to come back in a...

Well, we'll leave it as long as we can and see how you've got on.

-Thank you very much.

-Good to meet you again.

-Thank you.

Well, Charles, obviously enjoying his newfound career

in the world of property, but clearly a man for a challenge.

The opportunity here is huge, but if you want to be really successful,

I guess you have to take big risks

and it all comes down to the planning.

How will he get on? You can find out later in the show.

Still to come, in Margate, Kent, in a lower ground-floor flat,

it's really pretty obvious what needs to happen.

Lots of this partitioning that could just go.

Whilst in Fordingbridge in Hampshire,

it was planning permission that Charles needed,

but was he able to get it?

Back to the East Midlands now and the town of Radcliffe on Trent.

It was in a sleepy suburb that I came across this three-bed bungalow

that had a guide price of £135,000.

MUSIC: Got To Let Go by The Bees

Now, I've heard that Martin is a big fan of bungalows,

but I think he'd have to agree with me here.

This has got to be dragged out the 1960s and into the 20th century.

Who better to do that? Not one, but two architects.

Husband and wife team, Jane and Clive,

got the property on auction day for £20,000

over the guide price of £155,000.

Together, they run a local architecture business

and have recently started building a sideline in property renovation,

specialising in bungalows.

Only interested in selling, the couple and, in particular, Jane,

have very high standards indeed.

I don't want to cut corners. I like it to be finished and finished well.

I'll put extra insulation in the roof,

I'll put extra insulation in the walls. I'll do whatever it needs

to make sure that it really is the best it can be.

That says high spec. That says whoever gets this property next

is going to have a very good home.

# I do it all right... #

With plans for a total renovation from top to bottom, inside and out,

Jane predicted a budget of £20,000,

whilst husband Clive believes it would be more like £25,000.

However, the couple did agree

the work should take no longer than three months.

We're back four months later

and, straightaway, you can see that the driveway is much improved,

as is the exterior of the building and the front garden.

Everything's looking very well. Let's get inside.

MUSIC: Big Bad World by Kodaline

Wow, what a bright, fresh and modern-looking kitchen-diner.

That dated fireplace and chimney is gone

and there's now a beautifully decorated family room.

They decided against bi-folding doors here

which I think's a bit of a shame, but the room does have a lot of light.

Let's explore further.

This property looks like a new build now,

with top-notch decoration and a lovely finish throughout.

Plus, by borrowing some space from the master bedroom,

they've been able to add a shower in the bathroom -

excellent use of space.

Some fencing has been added, the garden has been tidied up...

..and, as promised, this property looks as good as new.

And all those changes you can see?

Well, that's just the tip of the iceberg.

It might not seem it, when you first see the bungalow,

how much we've actually done to it and why it's taken us four months,

but we have put in a new bathroom and a new shower,

taken out all the wardrobes and rationalised the bedroom plan,

put in a new kitchen. We've put in new finishes, new doors,

new windows and doors externally.

We've put in a new drive, we've rewired it throughout,

we've put in new aerials.

Basically, we've done it, so that if you came in,

you could just move in tomorrow

and there wouldn't be anything for you to do.

Removing the chimney was difficult

because we had to prop the ceiling and the roof and replace the tiles,

but mainly, there was a lot of spoil to take away

-and a lot of wall to make good.

-Although we had previously thought

about putting the bi-fold doors on the back of the house,

we decided there was already a door there

and two doors to the side of the house.

Access to the garden's not an issue

and we decided, at the end of the day, because of the plan,

it would be better not to have the bi-fold doors.

Clive and Jane's experience shines through.

When doing a property renovation,

it's important to choose your battles,

make sure everything you're doing makes sense

and that you're doing it in the most practical and cost-effective way.

Although, having said that,

I do remember Clive was a little worried about Jane's spending.

Although I thought the budget was going to be a little higher

than Jane did, I was proved right,

because it turned out to be slightly even above MY highest estimate.

The quality of what we've done has happily absorbed the money

and I think the main additional expenditure we hadn't worked on

was putting in a completely new drive and block paving all of that.

So, that took our budget £3,000

above the original £25,000 that we had in mind.

Yeah, and a lot of it goes on the things that you can't see.

There is a lot of extra insulation and the plasterwork's been done.

When we took the wallpaper off, all the plaster came down as well.

We had to replaster most of the walls.

You don't see that. You presume we've just scraped the paper off

and painted it, but that's not true. Everything's been redone.

Clive and Jane are still wanting to sell -

so much so, the property is already on the market.

With a total investment here,

including the purchase price, of £183,000,

will their latest bungalow project be a wise investment?

We've asked two local estate agents to take a look,

starting with the agent who saw it originally.

This is the second time that I've visited the property

and I must admit, the quality of the work that's been completed

is to a very high standard.

There is a strong demand for bungalows.

There always is, to be honest with you,

because they're in short supply.

So, we've always got plenty of people looking for bungalows.

The standard of finish is very high, perfect for the sales market

and for people wanting to move straight into the property.

It's a double thumbs-up from the agents then,

but will their valuations make Clive and Jane equally happy?

If we were to put the property on the sales market,

we recommend a guide price of £210,000 to £220,000.

And does that tie in with the evaluation of the estate agents

who are marketing the bungalow?

We are hoping to achieve around £220,000.

If they did achieve that top figure of £220,000,

that would mean a pre-tax profit of £37,000, which is a good return.

So, with their latest brilliant bungalow complete,

what does their future hold?

The next project for us will be another bungalow, I hope.

And after that, we're not sure.

We'd like to buy at auction again, if we can,

and if it's a bigger project, we'd like to involve our sons

and get them into the renovating process as well.

MUSIC: Love Rollercoaster by Red Hot Chili Peppers

There's one word you hear a lot of

in Margate these days - "regeneration".

A lot of investment has been channelled

into this once grand Victorian resort,

with a number of multimillion pound projects under way

to arrest the decline of this Kent seaside town.

One such scheme, due to reopen in June, 2015,

was the renovated amusement park and its Grade II listed rollercoaster.

-# Rollercoaster

-Say what

-Of love

# Rollercoaster... #

Well, all along this road, there is clearly lots of roadworks going on,

so there will be some disruption to some parking,

but I think that's going to be temporary.

Now, the building's here.

It is covered in scaffolding which I think is a good sign

because, hopefully, that means this building will be being upgraded.

But take a look at what was once, originally,

a beautiful Georgian house.

These amazing pillars, you've got a lovely front door,

the big sash windows.

It does look a bit sorry for itself at the moment, though,

but for a guide price of £30-£35,000

for a one-bed lower ground-floor flat,

hopefully, it can only get better.

So, from the outside,

this building looks as though it could be lovely once restored -

a bit like that old rollercoaster.

Will the inside deliver the same potential

or am I in for a scary ride?

So, what's inside? Well, I do like these really wide stairs.

They're so welcoming. Loads of character.

But what's not welcoming is that stench. There's a big smell in here.

Ah, that'll be what it is.

That must be the smallest shower room I've ever seen.

A loo poked around there, a tiny sink and a very weird shower.

Let's hope that's not the only bathroom facilities

in the whole flat. I'm going to have a look around.

Oh, dear. That's not a great start.

But is it all downhill from here?

# Don't bring me down

# No, no, no, no, no, oooh... #

So, down we go. Down, down, down down.

It really is lower basement flat.

You feel like you're so, so below the ground and, actually, you are.

It's quite dingy in here. It does smell a bit as well.

Not a bad size room but very small windows.

There's not enough daylight coming through.

And lots of these very small little arches

that I don't think work at all.

A really good size kitchen but, again,

lots of this partitioning that could just go.

And no bathroom, so that was the only bathroom or the shower room.

Into a fairly sizeable lounge, I would say.

A nice big window there

but it looks straight out onto somebody else's land or driveway.

You can't see the sky anywhere.

It just feels below ground in here,

so there's a lot you need to sort out.

First and foremost, you need to put a bathroom in here,

so I'm straightaway thinking I'd get rid of this,

open this kitchen up, put a wall along here

and stick the bathroom in there,

because you don't actually need any natural light in the bathroom.

And that would be a real bonus to this property.

So, get your list and you just have to tick it as you go along.

But I would start with the bathroom.

Yes, this property is a bit of a rollercoaster ride.

On the downside,

its current condition leaves a lot to be desired, but on the upside,

there is potential to turn this into a comfortable one-bed flat.

Time to ask a local property expert what he thinks.

This property does need an awful lot of work. Very poor condition.

Quite small throughout, but also very light for a basement flat.

Well, so far, we agree on most things,

except the point about light.

I suppose most people expect basements to be dark,

but I've seen them done rather well with clever lighting.

The big one for me here, though, is the bathroom.

Are we agreed on moving it and making it bigger?

No, I don't think the size of the bathroom is a problem.

I think, with a new bathroom suite in it,

it would make a huge difference and a lick of paint, it would be fine.

If this was my property,

I would completely renovate the bathroom, the kitchen,

new carpets throughout, lick of paint throughout,

perhaps change the windows and then we'd be good to go.

Hmm, I know moving a bathroom could cost a lot,

but I think it's worth doing

and the current bathroom could be a utility room.

But the agent is thinking about returns, I guess.

So, what does he think the flat could sell for after refurbishment?

If you were to sell the flat, with it completely refurbished,

I would expect to achieve £70,000. If he was to rent the property out,

I'd expect to achieve £400 per calendar month.

With any luck, along with this building getting a facelift,

somebody will want to inject some love and new life

into that lower ground-floor flat. There's lots you can do

and installing a proper bathroom would be my priority.

Let's see what happened when it went under the hammer.

So, we move to Margate, the first of mine down there. Lot 130.

One-bed flat.

Start me at £20...

£22,000. 22.

22? Thank you, sir.

23. At 23 there. 24?

24. 25?

That low guide price was proving very tempting

and the bidding took off.

We rejoin the action with the price at £40,000.

40. 41.

41. 42? 42. 43?

43. 44? 44. 45?

No. OK, 44.

First time at 44. Second time at 44.

It's against you in the jacket. For the last time, anybody else?

At £44,000, lot 130, it's your bid, third row.

-All done. £44,000.

-HE BANGS GAVEL

Sold at 44.

Now, Paul, just on the edge of shot there,

was making that winning bid of £44,000.

He and daughter Emma came along to look at his new acquisition.

Paul deals in property as a sideline but is a professional gambler

and it turns out the absence of viewings on this particular lot

meant he had to take a bit of a chance.

# Take a chance on us Take a chance on us

# Take a chance on us... #

-Paul, congratulations.

-Thank you.

So, I want to know the story behind why you wanted to buy this flat

and what happened and did you view it?

No, I didn't view it because there's no viewings

at this particular auction, so the price, the location, it's in Margate.

That's it, really.

So, you've turned up here for the first time today

and it's not at all as good or as nice as you thought it might be.

I thought it would be horrible

but it's just mostly the size of that room. It's just minute,

so I've got to rethink the entire thing, I think.

OK, so you literally just have a very small shower area

with a toilet squashed in the corner somewhere.

I'm definitely vexed but there'll be a way around it, I'm sure.

So, what do you think about the rest of the property?

It's very underground, it's very dark, it's very smelly.

Yeah, it's a challenge, definitely. It's a challenge.

What is your plan? What are you going to do with this property?

I think that room is just way too small,

so maybe that will be a wet room

and maybe take part of this room and turn that into a toilet

so you've got two separate areas. We'll take this wall down

and there's some arches which are about sort of this height

and they're completely pointless, so they're going to come out.

And there's loads of boxing in everywhere.

Excuse me laughing, but I'm laughing because how tall are you?

-6'3".

-6'3".

-So no wonder the arches are coming up to your chin.

-Yeah.

You need to get rid of all of that,

so you can at least pass through the doorway.

Although he didn't get to view the flat,

Paul did read the legal pack and checked out the lease

and details about the maintenance of the building,

which it turns out was a winner, with £2,500 put in the kitty

that is going to be refunded to Paul.

So, this was very much a calculated risk.

Does he see a similarity between professional gambling

-and the property game?

-It's a gambling of sorts, isn't it?

Especially when you haven't viewed it.

So, yeah, completely comfortable going for it, really.

So it was right, somebody like you coming along

and taking a punt on this flat, really.

Yeah, I think the price was low enough

that I didn't necessarily have to view it.

Were you pleased with the price you paid?

I was, cos 47 was my maximum. I paid 44, so, yeah.

Do you feel, in a way, you've got what you've paid for?

I was thinking, before I came today, that it was a really good price

and now I'm thinking it's about market value, probably.

So, what sort of budget have you got in mind for the work?

Well, as I hadn't seen it previously, I'd allowed, sort of, £8,000.

Having looked around, I'm thinking more like £12,00, to be honest.

What sort of tenant are you looking for here

and what sort of rent do you expect to achieve?

Initially, I was thinking I might try and sell it but...

It's looking more like a rental now, to be honest.

Well, £12,000 should be sufficient

to turn this place into a decent rental proposition

and Paul estimated a timeframe of six to eight weeks.

But he's got three young children and a busy lifestyle,

so is that a realistic target?

I'll be project managing it.

I'm going to do as little as possible,

so I'll just get workmen in and get them to do it.

Tell me a little bit about your family.

I've got a four-year-old daughter who's just started school

-and two sons of two and one.

-So you have got quite a hectic lifestyle.

Yeah, it's crazy. It could be a bit slower,

but they'll grow up eventually, so...

And, as Paul's young family grow up,

the lease on this flat will be shrinking down.

It currently has about 68 years left to run.

I don't imagine it'll cost a fortune to extend it,

but if he's going to rent this, that needn't be an issue for the moment.

I'd like to extend it but it depends on the freeholder.

If the freeholder gives me a good price, I'm happy to extend it.

-Have you had a chance to chat with the freeholders?

-No, not yet.

It's good news you've come along

and, hopefully, upgrading this property.

-It's better to have somebody in it than it be empty.

-Yeah, absolutely.

So, hopefully, they'll be glad I'm here. I don't know.

Good luck with this property.

It's going to be interesting to see what you do here.

-Well done.

-Thank you.

-Thank you.

-Cheers.

Changing his plans from sale to rental

still leaves Paul with plenty to get on with.

Join me later in the programme and you can find out

if he does end up getting that bathroom installed.

Well, the door is closed on one property renovation,

-but what about the other two?

-Ah, yes, cuppas at the ready.

-Are they nearing completion?

-I think it's time to find out.

We're back in the beautiful New Forest

where, earlier, I visited this former Victorian community hall

in the village of Godshill.

MUSIC: Annie And The Flowers by Vasco

Without obtaining permission for a change of use,

there wouldn't be much else that could be done with this place,

so a carefully put-together planning application

would be top priority for the new owner.

So, in order to get planning permission

to convert this into a house,

not only are you going to have to approach the local planning offices,

but also the National Parks Authority.

And they're going to be really fussy about what you build here.

Charles was the man who stumped up £203,000 at auction.

But with not just one but two planning bodies to deal with,

he didn't expect the planning process to be at all plain sailing.

I'm not underestimating, at all, the effort and time

it's going to take to achieve change of use.

And I bet I won't get it on the first one,

might not even get it on the second one.

It might take a couple of appeals to get there.

With a head full of ideas and ambitions

and a blank sheet of paper in front of him,

Charles set off on his quest to create a fabulous new home

in this idyllic New Forest setting.

The anticipation has been building since our first visit

almost two years ago and now we're back

to see how things have progressed.

MUSIC: Fanfare For The Common Man by Aaron Copland

Just occasionally, very occasionally, on this programme,

we get a renovation project that is so special,

the standard of finish is so high and the specification so luxurious,

that mere words cannot convey its true worth.

Oh, sorry. Not this time.

But hang on. Before you throw something at the telly,

let me explain. While the building itself may not have changed,

there is one very important difference.

Charles has finally been granted planning permission

for a very spacious four-bedroomed house.

Well, the planning process took about 18 months in total,

but I had anticipated that.

Planning within any national park is strongly constrained,

so I went about it in a very steady way.

I found a local architect and a local planning consultant

and we set about putting some detailed plans together.

I took them unofficially to the parish council

and showed them to the people in the village to get their support.

After getting their initial nod on the planning,

we put a detailed planning paper together

and that was finally submitted April of 2014.

It then went to the National Park Authority

and was approved in August of 2014, at the meeting,

but the full approval wasn't received until the end of October.

Obtaining planning consent within special locations,

such as the New Forest,

can often be a frustrating and time-consuming process.

So, did Charles's expectations of a hard struggle materialise?

In the end, it did not have to go to appeal.

The planning officers and the National Park Authority

were supportive and when it went to the committee,

they turned out to approve it,

but I was prepared for them to decline it or, perhaps,

decline it on the basis it had been submitted

and request changes and come back on appeal.

But that didn't happen, which was good.

While Charles and his team hacked their way

through the forest of planning paperwork,

there was intermediate work that needed to be done

to keep the building in good condition.

We had a number of leaks in the roof that have been fixed.

Some of the lead flashing had been stolen,

so that had to be replaced. Some of the guttering had to be repaired.

A lot of the fencing needed to be replaced and that's all been done.

I had the electrics all checked over,

so that people could come in safely and use it whatever.

Likewise, I had the heating serviced and repaired,

such that it could be kept on, particularly during the winter.

So, basically, it was to get the building sound for 12 to 18 months,

prior to conversion work starting.

And then, with all the pieces of this property jigsaw

almost in place, Charles had a change of heart.

# I see you've had a change of heart... #

I decided, either I was going to have to mothball it

for up to a year cos I'm very busy with my work and other things,

or I could sell it with planning permission

and change of use approved.

I brought in a couple of agents

who said that it would be very well received in the market

and it was placed on the market and within a week,

I'd received a number of offers,

several of them in excess of the asking price of £295,000.

In fact, once the sale was completed,

the final price agreed was £320,000.

Charles estimates that his spend over the two-year period

came to £40,000 which, added to the purchase price,

makes a grand total of £243,000,

meaning he walks away with a tidy profit of £77,000,

minus taxes and other expenses.

Now, asking two estate agents over to a property

that's already been sold

is a bit like inviting kids to a birthday party

when you've already eaten the cake.

But we really need to know, was this an astute piece of business?

How will their values on this building,

with the plans all in place, compare with what Charles sold it for?

I would value this property,

with full planning permission, in the region of £300,000.

As the property stands at the moment, with planning,

I'd value it on a guide price between £300,000 to £325,000.

So, it looks like Charles has achieved a realistic market price

for this New Forest development project.

But has walking away left him with any regrets?

I'm very pleased to have achieved the planning approval

on a building that had become redundant

but, yes, I am very sorry not to be moving into it and to enjoy it

and, particularly, into the village of Godshill,

but I think, in time, I would like to return to this area.

It is a very lovely part of the world,

and have another project in a year or two's time.

MUSIC: Holiday by Dizzee Rascal

Back now to the up-and-coming seaside town of Margate in Kent

where, just a Frisbee throw from the beach,

was this lovely old Georgian property.

It had me cooing on the outside but, sadly, sniffing on the inside.

So, down we go. Down, down, down, down.

It really is lower basement flat.

You feel like you're so, so below the ground and, actually, you are.

It's quite dingy in here. It does smell a bit as well.

# Lord, I smell trouble

-# Ahead of me...

-#

As well as being a pongy property, this one-bed lower ground-floor flat

had one of the smallest shower rooms I'd ever seen,

as well as some peculiar archways throughout.

It clearly needed a lot of work,

plus it only had a short lease of 68 years.

However, despite that,

its low guide price of £30,000 to £35,000 had the bidders hooked.

£44,000. Sold at 44.

The successful bid of £44,000

went to father-of-three and property dabbler Paul

who, along with daughter Emma,

only got to see the property once he'd bought it,

as there were no viewing sessions for this property.

So, you've turned up here for the first time today

and it's not at all as good or as nice as you thought it might be.

I thought it would be horrible,

but it's just mostly the size of that room.

It's just minute, so I've got to rethink the entire thing.

OK, so you literally just have a very small shower area

with a toilet squashed in the corner somewhere.

I'm definitely vexed, but there'll be a way around it, I'm sure.

So, Paul's latest acquisition may have gone a little wrong,

but he was keeping a cool head

and had earmarked an eight-week turnaround with a £12,000 budget,

with a plan to rent.

It's now two months later

and I'm glad to see the scaffolding has come down,

but will the improvements continue inside?

MUSIC: All We Are by One Republic

Wow, what a difference knocking the wall down

between the kitchen and living room makes.

It's now so much brighter and fresher,

with a very contemporary feel to it.

Paul explains exactly what he did.

So, there was a wall here between the living room and kitchen

with a serving hatch around here somewhere, so we got rid of that.

Er, there was a legged entrance around here

to about here to the living room.

We just straightened this out to meet with this structural pillar here

and then we used this space here to put a space for a fridge-freezer

which then made the kitchen a bit more functional.

Paul and his team of builders

have really used the space creatively here,

none more so than when creating a new shower room downstairs

in what was an under stairs cupboard...

..leaving him free to transform the former tiny shower room upstairs

into a good size cloakroom.

The bedroom, like the rest of this lower ground-floor flat,

has been tastefully decorated

and is now ideal for either rental or sales markets.

Yeah, my initial thoughts, when you came last time

when I'd only just seen it,

it was disappointment with the whole place but especially the bathroom.

It just didn't look like something I could sell,

so I'd sort of refigured my plans to rent it out,

but then, since we found this space,

it's kind of worked out to be quite a nice flat,

so I think I'll put it on the market for six weeks.

If it doesn't go, then I'll rent it.

Along with a little reconfiguring,

Paul and his team have rewired the property

and, I'm happy to say, got rid of those archways.

Plus, his clever use of spotlights

has made this once dark and dingy flat bright and airy.

Don't forget, though,

Paul had never had a chance to view this property before he bought it.

So, now it's complete, how does he feel it's all turned out?

To be honest, when I first stepped in here, it was bad

and then it just got worse and worse, every step I took.

Sometimes you reconfigure things, and you think,

"Actually, it's not that bad".

It didn't happen on this one. It just got worse and worse and worse.

So, I think it was probably a mistake,

but you win some, you lose some.

I didn't view the property, I've lost on this one,

I'll probably win on another one, so that's the way it goes.

Paul's right.

Sometimes you win and sometimes you lose in property development,

but I think he's done a really nice job

with what was a very unpromising flat.

So, why does he think he's going to lose on this one?

I just think I've spent a lot of money

to get it to the standard where I hoped it would be anyway,

so there's not quite the margin involved

that I'd hoped there would be, but it doesn't matter.

When I met Paul on the day he first saw the flat,

he did a quick reckoning that his budget might be £12,000.

In fact, he spent £15,000,

plus there's a lease extension which he's been told will be £5,000,

although he's choosing to wait and see

whether potential buyers will want to renew the lease themselves

or use it as part of a price negotiation.

So, has Paul won or lost?

We've asked two estate agents along to take a look,

starting with the agent who saw it first.

I think opening up the lounge and kitchen

has made a tremendous difference

and also separating the shower room is also very good too.

Bearing in mind that it's a lower ground-floor apartment,

they've managed to get good light into the property.

Obviously, it's very light, in terms of the decor

and the way that they've presented it, so that will certainly help.

Paul's changes have clearly impressed the agents,

but what kind of valuations will they place on the property?

-Rental first.

-I'd put a rental value on the property

of between £400 and £425 per calendar month.

I think he could achieve £425 to £450 a month on this property.

So, if he was to achieve that top valuation of £450 a month,

that would mean a rental yield of over 9.5%,

which is a really respectable return.

Now, what about resale values?

Remember, he paid £44,000, got £2,500 back for the maintenance fees

and then spent £15,000, so a grand total investment of £56,500.

With a suitable lease extension to the property,

I would put a value of between £70,000 and £75,000.

I think he could achieve £75,000 for this property.

Yeah, that's quite surprising, to be honest,

cos there's a very similar one just ten doors down which I've been in,

cos I know the guy selling it, and that sold for £97,000.

Paul is disappointed, but on those valuations from the agents,

he would still stand to make a potential £18,500 profit,

not including taxes and fees, like that lease.

That's not a disaster, by any means.

Property development can be a lonely and stressful business

and Paul seems to have found this project frustrating.

So, will he be back at the auction soon?

Um...it's not really for me.

I don't really get much out of it, so I'm going to move on to pastures new.

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

but join us next time for more action from the auction rooms.

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

-Goodbye.

-Goodbye.

-Bye-bye.