Episode 46 Homes Under the Hammer

Hello and welcome to the show. Now, there's no doubt about it.

Buying property can cost a lot of money.

Yes. It could be the most expensive purchase you've ever made, taking years and years of saving.

Oh, yes. There's a lot at stake.

It is so important to get it right and maybe you could buy your next home under the hammer.

It's all very well having a firm plan in your head

when buying property at auction but the best laid plans can go astray.

They can, Dion.

And it's OK to admit you were wrong

and then to go about changing your plans.

So, what did today's buyers have in their mind?

Let's take a look at what they bought.

In Hainault, Essex, I've got a plan to go into the loft

and add a bedroom and a bathroom.

And it will be much more saleable.

No lofts at this bungalow in Stoke, Lucy,

but cosmetic changes could create cash.

That means you can add value and that's what we're looking for.

And in Folkestone you could add value by uncovering this

mid-terrace's original features.

Get that on show. I like it. I really do.

All these properties were bought at auction.

We'll find out who got them and how much they paid when these homes went under the hammer.

Yours at 99.

We are in Hainault near Ilford in Essex.

It lies north and east of central London

and it's just over half an hour by Tube from here to the city.

It's hard to believe now but most of this area once formed

part of a 3,000 acre forest owned by a local abbey.

Now, it's very much a bustling suburb

with direct train links into London.

The property I am here to see is on this busy main road. Here it is.

It is a four-bedroom mid-terrace

and it went to auction with a guide price of £250,000 plus.

It looks all right from the outside. Let's go in.

250 grand might seem like a high guide price,

but the average house price in the area is about 293,000.

Is it just this busy road that's making the guide price so attractive?

It can get quite noisy there but once you are in...

..look. Lovely and quiet. So, that's nice.

First impressions, well, really nice hallway. Tatty.

It needs everything doing. You can see straight away.

New carpets, new flooring, paint, wallpaper.

But it does feel like a family house.

You've got a great size reception there with a nice bay window in the front.

So you could really imagine a family in there.

Downstairs loo. Big tick.

And into a lovely open plan sort of dining space.

I'm presuming through here, well,

this is an extension leading right the way around to...

Ta-dah! The kitchen.

So this to me would work fabulously with a family.

You could have a kitchen table over there, you could have sofas,

you could see the kids, you could do the cooking.

Look at that. That's a really nice butler sink.

There are a few bits and pieces in this house I think you could salvage.

A really nice oven as well.

So, yes, with a bit of cleaning, some new carpets, some new paint,

a bit of money spent down here, this could really work well for a family.

And, out the back, there's a family sized garden with a handy little cabin, too.

This could be a nice little spot of tranquillity

because you can't hear a single sound from that busy road out here.

# It's oh, so quiet

# Sh! Sh!

# It's oh, so still

# Sh! Sh! #

And if you need somewhere to park the car,

there's this additional garage.

Upstairs, there are three bedrooms

and, again, they all have generous proportions.

The bathroom is up here too and will need to be updated,

but there's plenty of space to play with.

So you've got a spacious layout,

a little oasis of calm in the garden,

some charming features,

potential to add value and all just half an hour from central London.

Pulls on the heart strings, doesn't it?

# ..When you fall in love. #

Now, up in the attic is the fourth and final bedroom.

I'm not convinced that staircase is building reg compliant,

so it's best to check this loft conversion has been done properly

and all those boxes are ticked,

but once you're up here, well, you've got some space,

although putting in a proper dormer window along here

I think will be the way to go.

It'll allow for more square footage

and you might even be able to think about

squeezing in an en-suite bathroom up here.

That would make this a four-bedroom, two-bathroom property

and it'll be much more saleable.

So although I said initially this was a four-bed house,

until you know this room passes building regs,

officially it isn't.

Regulations that cover escape from fire, among others, need to be met.

Let's talk to a local estate agent

about what he thinks of this property,

guided at £250,000.

The property's brilliant and I like the size of the property,

size of the room. There's room in the attic -

if that room can be made to some use,

then that will enhance the value of the property.

Does this agent have any thoughts about the attic space as it stands?

The attic, I think, you know,

it's not building-compliant at the moment,

but as long as we get a completion certificate from the local council,

then that will add good value to the property.

Let's talk numbers. Would a dormer be worth the hassle?

First, resale price after a straight refurbishment.

If the property is as it is refurbished

and you don't add any additional accommodation to the property,

and it is made of average standard,

then it'll be worth £375,000.

If you make the loft room bigger with the dormer,

then the property will be worth around £400,000.

Even taking into account the cost of putting in that dormer,

it's safe to say it's well worth calling the council then

for that £25,000 increase in resale value.

What impact would an extra bed have on rentals?

The rental value of this property,

if it is just refurbished to an average standard,

would be about £1,700 per calendar month.

If it's been turned into a loft dormer and all that,

it can fetch £2,000 or even in excess of £2,000 in the area.

So this Hainault house needs a bit of work,

but it's nothing too difficult or demanding.

Basically, it's a straightforward property project for somebody,

although I would check that loft is building reg compliant.

Let's find out who bought it at the auction.

Four-bed, fabulous-looking house. You can see, double bay.

Value bids on this - 300, anywhere?

300?

Go the other way, then - 270.

Not going to go below 270.

270 in the front. 270.

275.

-There.

-275, got you.

275, 280.

Yep? 280. 285. 290, sir.

295.

300.

305.

306?

That's it, 306. Try and help.

305, standing up, with you.

306, another spot there.

-307.

-So bidding had slowed,

but there was still a number of interested parties.

We rejoin the bidding at 317,000.

317, down here.

318, what took you so long?

Men are all sort of...

Women just bid, men think too much.

318, 319.

320.

321.

322.

322, back in.

323, 324.

325.

326.

325, then, first time. Second time.

Third and last time, if you're all done.

Sold, 325.

Is that your first one?

Yeah? Well done.

# That's how I learned

# There's always a first time

# For everything... #

So the hammer came down at 325,000

and it was best pals and budding property developers Fatima,

here on the left,

and Mehreen that made the successful bid.

This is their first development together,

so I wanted to know their plans.

-Ladies, congratulations.

-Thank you very much.

-Lovely to meet you both.

-Thank you.

-Fatima and Mehreen,

I know you went to auction with a few properties in mind.

You came away with this one.

-How happy are you that you've got this property?

-Very.

Very. We really liked the location of this property -

really good schools around

and the excellent transport links to central London,

-so it did...

-And it's very close to where we live as well,

so much easier for us to come

and keep a check when the work's being done.

So, Mehreen, how much research did you do, realistically,

both of you, into this?

A lot. I think we looked at around 15-20 properties,

made spreadsheets, did market comparables, checked them out,

-then we shortlisted it down to five properties?

-Yep.

So have you ladies decided recently to go into this business together?

We're full-time mums and we wanted to do something and both of us

were quite interested in the property business,

property development, so we decided to work together

-and this our very first own project.

-Whoohoo!

This is your first venture and we've got you!

First auction, first house and here we are.

THEY CHUCKLE

# So these are the ropes

# The tricks of the trade

# The rules of the road... #

If you want to succeed at buying property at auction,

you could do worse than follow Fatima and Mehreen's example.

They've viewed plenty of properties,

did their research

and went to auction with their finances in order.

That's preparation indeed and that's what you need to do.

What I want to know is what you both intend doing here,

because, obviously, the game plan for you both

is you need to add some value.

Basically, we're planning to go into the loft room -

the loft room at this stage,

it doesn't have planning permission and it's really small,

so we want to make it bigger, brighter, with dormer windows

and we're going to put an en-suite in there,

so that is going to convert this house

from a three-bed property to a four-bed one

and, secondly, this is on a major road,

so we're going to add a driveway in front of the property as well,

just to add more appeal to it.

We want to change the kitchen, new kitchen, new bathroom,

so give it a whole new, modern look -

nice paint, spotlights,

something which makes it look nicer and bigger.

-Modernised, everything.

-Yeah, basically just modernisation.

OK, so you're really going to turn this into a family home, aren't you?

Exactly, yes. We're really going to modernise it top to bottom

-and we realise it's a lot of work, but we're all set for it.

-Yeah.

And you two have got so much energy,

-cos it's the first one you've ever done.

-Exactly.

-We've been best friends since 12 years, so...

-Yeah.

Ah, best pals on a new adventure together.

How great is that?

Their budget is a healthy 30,000 with a £5,000 contingency.

They're looking to sell the house,

but if the profit isn't high enough for them,

they'll rent it out until the value increases.

What do their other halves think of them working together?

-They're very happy.

-They are very happy for us.

They really want us to succeed, they want us to do well,

so they've given us full support.

-Good!

-They're always there to help us.

And her husband has done properties before as well.

My husband's done property before. He's rented a few out at the moment.

-He's sold a few. We've got a very nice builder at hand.

-We do, yes.

Yeah, we're quite positive about it all.

But are you going to give each other certain roles?

Sometimes it can work better that way.

-Have you thought about doing it that way?

-Not really.

-Everything together at the same time?

-We'll do it together.

-Yeah.

We're really organised, with spreadsheets and everything,

so everything is just going to be very proper, very organised

and we do it together.

-Who's got the spreadsheets?

-Me!

THEY CHORTLE

Do you think this might hinder the friendship in any way,

shape or form, or do you think it'll only make the bond stronger?

We think it'll make the bond stronger,

because we're very honest with each other.

-If we don't like something, we'll just say it to each other.

-Yeah.

I think that's the way to go about it.

Let's hope you both make as much money as you want as well.

-Thank you very much.

-Thank you.

-Well done.

-Fatima.

-Thank you.

-Mehreen.

-Thank you.

-Lovely to meet you both.

Friends Fatima and Mehreen are full-time mums

and they've decided that property developing

is a good business to get into.

They've done all the planning and their builder is ready to go.

This is their first project

and it's the first one they've done as friends working together,

so will getting into the property game

put a strain on their friendship,

or will this house mark the start of a great venture for the two of them?

You can find out how the ladies get on later in the programme.

I'm in Stoke today

and in a residential area only two miles from the city centre.

It seems that, here, the bungalow is king

and why not?

Single-storey living often comes with a good-sized floor plan

on a decent-sized plot.

And with bungalows rarely built these days,

they're becoming much sought-after,

all of which, from an investor's point of view,

is enough to get the pulse racing.

-# Could it be I'm falling in love

-With ya, baby...

-#

So, for lots of reasons, we love bungalows

and the one that was up for auction has something else going for it,

because it's quite rare in the fact that it's a mid-terrace bungalow.

Now, the reason why that's good is that maybe,

if you buy a mid-terrace house, there's a possibility

you might have noisy neighbours, something like that.

Given the kind of person who genuinely chooses to live

in a bungalow, it's more likely that you're going to have

nice, quiet neighbours, so, bonus!

Guide price for this one was £49,000 plus.

Two bedrooms, let's take a look.

So, what have we got?

Well, straight away, walking through the front door

into a good-sized lounge,

but you can tell it's going to need a bit of modernisation.

But, you know, you've got to see through its current condition

to what it might become.

It's a good size, it's got an open fire, so we like that.

Just even by changing the carpets,

either plastering or putting new wallpaper on the walls,

what a change you would make.

So, through into this little central area,

off which come your bedrooms.

First one there, that's a good size.

Again, in need of modernisation.

Second bedroom is over that way.

Bathroom and loo there

and then through to your kitchen.

Now, it's pretty much like the rest of the house so far -

not in the best of conditions.

But, straight away, this place is screaming out - fantastic potential.

Do that plasterwork, change the carpets, change the kitchen,

do the bathroom and you would absolutely revolutionise this place.

That means you can add value and that's what we're looking for.

# Talking about a revolution

# Cos finally the tables are starting to turn

# Talking about a revolution, oh, no... #

The key thing to any property investment is can you add value?

And, preferably, can you add value without too much work?

The answer with this bungalow looks to be a resounding, "Yes!"

There doesn't at this stage appear to be any real structural issues.

The roof's fine, but the windows and doors will need doing.

The whole property needs a complete refurbishment -

electrics, central heating,

bathroom, kitchen,

the lot.

And, OK, that does sound like plenty of work,

but nothing a competent builder couldn't cope with.

Yes, it will cost, say, around £15,000 to do,

but with a guide price that was £49,000 plus

when the average price in the area for a bungalow

is between £90,000-£100,000, well, you can see where the value is.

So, out the back, and first of all into this conservatory.

Now, this is a fairly substantial construction

with the brick on the bottom here,

but, above that, it all starts to go a bit horribly wrong.

I think as a design concept, as in having a conservatory here -

great idea, cos it's a brilliant way

to extend the usable space of the bungalow

and actually could be very pleasant,

especially if you imagine it opening out into the garden.

At the moment, again,

you wouldn't necessarily want to stare out onto this,

cos it's in a bit of a state, but a bit of tidying up

and it could be really pleasant.

Additional bonus -

you've got a garage there with an access road, so that's good.

All in all, it just adds to the general concept of this place,

which is it's just waiting for somebody to grab it and go,

"There you go, that's your potential," cos it's got lots.

# Bend me, shape me, any way you want me

# As long as you love me, it's all right... #

Well, I think if it had been bought at the right price,

this is a perfect investment opportunity.

What does a local estate agent think?

First impressions of the bungalow

is that it does require, obviously, modernisation.

A lot of it is cosmetic.

I think one of the big selling points of the bungalow

is the fact there's a garage to the rear.

Yes, all positives, but what does he see as the best way

to increase its appeal to the local market?

The main thing to increase value of the bungalow

I feel maybe would be a conservatory or small extension to the rear,

which will just provide increased living space.

Great, so let's talk figures

for the bungalow that was guided at £49,000 plus.

After refurbishment,

I would place the property on the market in the region of £100,000

and the rental income would be in the region

of £500 per calendar month.

Well, this really is a property that screams potential

and for anything like that £49,000 plus guide price,

I don't think there's too many decisions to make.

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

Lot number five. It's a two-bedroom mid-terrace bungalow.

Popular spot, needs improvement.

There's gardens and a garage. Can we get it going at 43, lot number five?

Start at 43 bid. Thank you.

At £43,000. 45, can I say now?

45, thank you. At 45,000.

47?

At 45,000. 47?

49? £49,000. 51?

51.

53? £53,000.

55?

55 at the back.

57? 57.

59 seated now.

61?

I'll take once if it helps - 60?

60 at the back, in the middle at the back. 60, 61.

62.

63.

64.

65, sir?

65.

Shaking his head. Still with you, sir. Seated at £65,000.

66 anywhere else?

New bidder, 66.

Shaking his head. With you, sir, first bid.

£66,000. 67 anywhere else?

If not, I'm selling it at £66,000.

For the first time,

at £66,000.

For the second time.

Third and final time, no mistakes. Gentleman with the green sweater on.

Bid's at 66.

Third and last time.

You've bought it, sir, well done.

So the hammer fell at £66,000

and the successful bidders for the two-bed bungalow in Stoke

were John and Chris.

John is a joiner by trade

and his wife Chris is a clinical studies coordinator.

They joined me back at the property to tell me more.

-Chris, John, great to meet you both.

-Hi.

-You too.

-Congratulations. BOTH:

-Thank you.

Tell me why you wanted to buy the bungalow.

We'd just kept an eye out for a bungalow before

for my mother and father,

so we saw this come up and we know the street,

-it's a good street, so we thought we'd go for it, didn't we?

-Yeah.

So are they downsizing? Or where are they at the moment?

It's about the same size, but it's closer to us,

closer to the grandchild, so...

-Handy for a baby-sitter.

-Yeah, right!

-Are they currently in a bungalow?

-They are, yeah.

So they're moving from one bungalow to another?

Yeah, they want to change and it's closer for us,

so it's easier for us to help them

-and vice versa.

-Fantastic.

So have they seen it in its current state?

-Yeah!

-THEY CHUCKLE

What did they say when they first saw it?

I think they were having second thoughts, but I talked them into...

They think we're going to do a good job.

Under a bit of pressure, aren't you?

Are they going to have some input in terms of what you do?

Uh, yeah, a bit, yeah.

I think most of the decisions will be made by John.

Right.

# I'm gonna make you love me

# Yes, I will

# Yes, I will... #

So it sounds like John and Chris will take the lead here

and John certainly has the skill set to make it successful.

He's a self-employed joiner.

How do they plan to make John's parents love this place?

Well, we have a new central heating system,

rewire, new bathroom, new kitchen.

All plastic all the way round, new windows, doors.

Maybe some patio doors coming out of the bedroom.

-Oh, nice!

-Then, obviously,

patio doors going out into the garden.

Are you going to build a new conservatory on this

and put a new roof on and stuff, or are you going to do it in plastic?

New roof.

New conservatory, cut the wall down.

Windows across there and I think new windows and doors all round.

And can you do all that?

Yeah.

-I'm hoping so!

-Brilliant.

We'll obviously have this plumbed out as well,

so we'll have heating in this room as well,

so it's suitable for the winter as well as the summertime.

I reckon your mum and dad will spend a lot of time in this room.

-It's quite bright, isn't it?

-Yeah, it's lovely.

What about the garage?

Tidy it up as best we can, I think.

It's good off-street parking,

so there's good access at the back as well.

What's the budget for the work?

-Around 15,000-16,000.

-OK, that sounds reasonable.

-Yep.

And how much of it are you doing yourself?

Most of it, yeah.

With John in full-time employment as a joiner,

he plans to do most of the work on evenings and weekends

and they hope to complete the refurbishment

in around eight months.

# I'm going to make you love me... #

And then once you've done this,

you might get the bug and do it some more, or what?

We've already done it twice before.

This is the third one.

What did you do with the other ones?

They're rented out at the moment.

-One, I think, has been rented out about 18 months.

-Yeah.

-The other one about eight months, so...

-Going OK?

-Yeah, been really good.

-We had to refurb both of those as well.

-They went back to brick and we started again.

-Really?

-Yep.

So we've been through this, the third time we've been through this.

-But they weren't auction properties.

-Right.

-Listen, we really look forward to seeing how you get on.

-Thank you.

Exciting project with lots of good reasons for doing it,

-so congratulations and good luck.

-Thank you.

-Thank you.

Well, how great that Chris

and John are sorting this place out for John's parents.

I always love those kind of stories

and I know they will transform this little bungalow.

You can see what it turns out like later in the show.

Coming up, you could really transform this two-bed in Folkestone,

although height restrictions will apply.

And, as you can see, it's not a standard-sized doorway.

And in Stoke, it's not headroom that's the issue, it's lack of time.

As soon as we started, work got really busy.

We're heading back to Hainault in Essex now,

where earlier I saw a four-bed mid-terrace guided at £250,000.

Inside was spacious, with big bedrooms,

a bathroom

and a generous back garden.

It just really needed a bit of modernisation.

So, yes, with a bit of cleaning,

some new carpets and new paint, a bit of money spent,

this could really work well for a family.

But the fourth bedroom in the loft didn't meet building regulations.

My solution - get planning permission and add a dormer

to give enough space for an en-suite shower room up there.

That would make this a four-bedroom, two-bathroom property

and it'll be much more saleable.

Big potential saw big interest at auction

and the hammer fell at 325,000.

Sold, 325.

Is that your first one?

Yeah? Well done.

This pair of pals, Fatima, here on the left, and Mehreen

were the successful bidders.

Both are full-time mums and this was their first development project.

Their plan was to modernise throughout,

ensure the loft conversion met building regulations

so the fourth bedroom is certified

and then sell the property on.

OK, so you're really going to turn this into a family home, aren't you?

Yes, exactly.

We're really going to modernise it top to bottom

-and we realise it's a lot of work, but we're all set for it.

-Yes.

And you two have got so much energy

-because it's the first one you've ever done!

-Exactly!

-We've been best friends since 12 years, so yeah.

-Yeah.

So, best mates who were best prepared. Three months on...

I can see the exterior has their promised off-street parking,

but, inside, have these friends freshened up a family four-bed?

# Ooh, you make me live

# Whatever this world can give to me

# It's you, you're all I see

# Ooh, you make me live now, honey

# Ooh, you make me live

# Oh, you're the best friend

# That I ever had

# I've been with you such a long time

# You're my sunshine

# And I want you to know that my feelings are true

# I really love you

# Oh, you're my best friend... #

They promised the whole place would be modernised top to bottom

and that's exactly what the duo have done.

The loft is very impressive and now it's an en-suite bedroom

fully complying with building regulations.

Um, basically, we spotted the opportunity to create extra space

in the house by extending this room.

We've put in the dormer window to make it more spacious,

bright and airy, and we've put in the en-suite here

and now we're really pleased with the result.

It's one of the main features of this house.

I'm also loving the modern feel of the kitchen.

So, basically, in the kitchen,

you can see that we've completely changed the whole thing.

We've got new tiles on the floor, we've got new tiles on the walls,

new cooker, new sink, everything's new.

We tried to add a modern feature

with some LED lights in the skirting.

We actually worked together in deciding on what colour

and what tiles to do.

So, we worked together as a team and this is the result.

Family homes need parking space

and that's what they've done at the front here.

We have built a new driveway.

Since it's a busy road, it's always good for people to come back home

and park in their own driveway.

We've got a garage at the back.

It's always convenient to have one at the front.

Speaking of the garage at the rear, which, like the cabin house,

they've left unchanged.

The back garden is now ideal for those rare summer barbecues.

Removing the shed has created a blank canvas

for any buyer to create the garden of their dreams.

But this resplendent renovation wasn't rapid.

They went a few weeks over their three-month timescale.

We were very lucky we had a very good builder,

so he applied for the planning permission

and I think that was one reason that caused the delay

in the duration in which we wanted to finish.

Yeah, I think it was fine, just took a bit longer.

The quality of the finish and those planning delays

have meant they've gone over their £30,000 budget.

Well, actually, we've gone £10,000 over the budget,

but, to be honest, it was our first time,

so we kind of underestimated the costs

and we've done so much work in this house,

it's a complete refurbishment from top to bottom.

Well, they did have a £5,000 contingency,

so it's not that bad, ladies.

You've done well.

But has working together tested the friendship?

No, we haven't had any issues. We've really enjoyed doing it together.

-I think it's just made it stronger, if anything.

-Yes.

We'll definitely advise other people

who want to come into this sort of field

and who especially have got kids.

It's very comfortable, you can work around your kids' routines.

-We're already looking forward to the next project.

-Yes, of course, yeah.

Hold your horses, ladies.

All this enthusiasm for your first project

is already carrying over to the next,

but they'll need to make some profit here

if they're going to carry some money into the next renovation.

We asked along two local estate agents to give us their thoughts,

including the agent who saw it the first time.

I think they've done a good change in the property.

I'm impressed by the neutrality of the property

and I really like this one.

I think I like the bathroom,

especially the mirrors they have used, which are very, very good.

It adds a feature to the bathrooms.

I think the kitchen, both the bathrooms,

all the fitments are modern, fresh.

The finish, even to the painting and the walls

is very good. It's a very well put together refurbished property.

The agents are impressed and they've suggested the house could command

a top rental value of £2,000 per calendar month.

And with Fatima and Mehreen's total spend at 370,000,

that would generate just over a 6% yield,

but the ladies are keen to sell,

so what kind of values can they expect?

I would set an asking price in the region of £415,000.

I think offers would come in reasonably close,

taking into account the standard of the refurb

and the close proximity to the Central Line station.

I think the property should be marketed at about £475,000,

with an achievable price of 450, or just about that.

The agents noticed that with Hainault's growing popularity,

the property market is a bit unpredictable,

hence the disparity in valuations.

If Fatima and Mehreen were able to achieve that £450,000 figure,

well, that would give them a pre-tax profit of 80,000.

What do they make of the figures

and the possibility of a fabulous first-time profit?

At the lower guide price, it still does work for us, yes.

We're quite pleased with the result.

-We still make profit, but the more, the better.

-Exactly.

So, a successful first renovation for the ladies,

but how does the enjoyable job of being a property developer

balance with having the best job in the world,

being mums?

It's really easy to work it around your kids

and you can set your own timing, so we really enjoyed doing it together.

Definitely, yeah.

Folkestone on the Kent coast

was a popular seaside destination in the Victorian times

and the legacy of Victorian ingenuity

can still be enjoyed around here.

One of the best examples is Leas Lift,

built over 100 years ago in 1885 and is still working today.

# Built to last... #

Let's hope the property I'm here to see is of the same build.

It's a two-bed, mid-terrace house

with a guide price of £90,000-£95,000.

Wow.

Look at all this hallway space. It's a surprise to see the stairs

so far away from the front door.

I was expecting the stairs to be sort of here,

but you've got this sense of space in the hallway which is really nice.

A decent-sized front room there, old-fashioned, retro gas fire there.

Down the hallway to the second room,

down here, another gas fire there, a retro one again.

I'd possibly get rid of those

and down here, everything seems to get a little bit tighter.

As you can see, it's not a standard-sized doorway.

And the ceiling as well, as I come in,

seems to be just inches off the top of my head.

Look at this, this is definitely retro.

You've got old-fashioned milk bottles as well.

This really does take me back to

when I was a young boy living in Leicester.

We had a kitchen like this.

Take this all out, you've got a decent-sized floor space here.

Brand-new kitchen in here.

I think it'd be pretty cool.

You don't have to have the big, thick working surfaces.

You can make them a bit smaller, shallow it up a little bit,

a bit more floor space

and I'm pretty sure, above here,

you might be able to get two or three more inches of height,

therefore you can take that light up,

so when you have got friends coming round who are 6'2",

they're not going to be hitting their head.

There's no doubt about it - this kitchen has to be kicked into touch.

# Hit me, hit me

# Hit me...! #

As does the rest of downstairs,

but the central heating looks relatively new

and I do like those old doors.

Cupboard space is always handy too.

# Hit me, hit me... #

OK, off upstairs, then.

Look at the size of that bathroom.

That's one of the biggest bathrooms I've seen in a mid-terrace house.

That is a lovely size.

Up here to two bedrooms.

The back bedroom here of a decent size,

looks on to the back of the back garden.

In here, look at this room. This is a front bedroom.

Looks like it's had new double glazing in it.

Nice high ceiling up here as well. Erm...

Bit of cloakroom space in there.

Behind here, I'm assuming this is...

That's a beautiful fireplace they've got behind here

and they've decided to board it up.

Get that on show. I like it, I really do.

# Oh, don't hide it away... #

Same story in the second bedroom.

If you have features, you should show them off, not hide them.

Now, I'm going to talk about proportions

and that's what's wrong here.

I know I said the bathroom is one of the biggest I'd seen,

but now I've seen the upstairs,

it seems out of place with the rest of the house.

It's a bit of a waste.

Unless you're going to stick a fabulous walk-in shower here,

it doesn't work.

But a little bit of a tip - if you are viewing a house

and you're upstairs, always look out the window.

See if you can see the roof, the guttering.

You get a good look at the back garden,

sometimes the front garden as well.

In this particular case,

this roof seems to have a bit of a bow in it, so I'd been inclined

to maybe take the tiles off, reseal it so there's no chance of a leak

and reclaim the tiles.

You won't have to have the expense of getting new tiles.

They all look relatively fine.

Put them back on and you know that's not going to be a problem.

So the roof is something definitely to add to the to-do list.

Another thing I can see from up here

is what looks like a rather neglected garden.

Out in the back garden,

back yard, it seems to have been taken over by all this greenery.

But judging by the width of the walls here,

you can just see that side.

It's a decent width of garden.

Get rid of all this greenery, tidy it up,

put some slabs down, just get it all levelled out

or even a bit of false grass,

which would be good for the kids to play football on, of course.

I think it could be a nice-sized back garden for them

and behind me here, an outside toilet,

which I'd be inclined to get rid of.

This piping here goes down into the outside toilet

and then straight into the guttering.

Leave that there, that seems sound.

Get rid of this, tidy everything up

and I think you'll have a decent-sized back garden.

I'm starting to feel that perhaps there really is a great house here,

but it just needs to be uncovered.

What does a local estate agent think?

The layout of the property is actually very good.

It suits modern conveniences with the bathroom upstairs.

Two reception rooms downstairs also allow for a versatility,

so if you'd like to use one of them as a bedroom,

then this could quite easily be a three-bedroom terraced property.

OK, lots of choices, but what about the financial options

on a house that was guided at auction for £90,000-£95,000?

How much could you sell it for if it was refurbished as a two-bed?

Once refurbished, if we were to resell the property,

we'd expect to achieve in the region of £125,000.

On the rental market,

the property should achieve in the region of £625 per calendar month.

Would the numbers alter much if you changed one of the reception rooms

into a bedroom to make it a three-bedroom house?

If this property was set up as a three-bedroom property,

I would expect to achieve the same sort of figures

as you would if it were a two-bed.

However, on the rental market,

you'd be looking to achieve possibly £675 per calendar month.

It's really hard for me not to love this property.

I've been reminiscing as I've been walking around.

The upstairs bathroom at the back,

the little kitchen there, we'd all be diving in that kitchen

trying to make our own breakfasts, get your own space.

Loads of happy memories for me back in Leicester,

but let's see who wanted to build their own happy memories

when it went under the hammer.

So what are we going to say on this one? 90,000, do I see?

90,000?

Give me 85, then. It's here to be sold.

85 unobliged. 85 I have.

87 now do I say?

87 do I say?

87 bid I have. 87 bid. At 90. At 90.

At 90, and 2. 92. 92? And 5. And 7.

97.

97 in the green.

Up to 100. 98, if you like.

Is that a bid? 98, I've got. 99 if you like.

99, fill it up to 100.

No, definitely not. I know when he says that.

99 I've got, 100 I'm looking for.

Are we all done at £99,000 for the first time to the lady in green?

99 for the second time.

Third and final time at 99,000.

Yours at 99.

The hammer fell on that bid of £99,000,

made by Anataya, who hails from East Sussex.

She came along with her two Pomeranians, Neo and Fliss,

to tell us all about her second development property.

So, Anataya, nice to meet you, firstly,

and congratulations on your property.

Tell me why you went for this kind of property in the auction.

It's the location. Nice and quiet and the road is quite big,

to park the car and things like that.

I know you're not from this area at all,

so what made you buy here in Folkestone?

I have been through Folkestone quite a few times,

so I know the area.

So, one day you just thought,

-"I like the area, I'll look for a house in this area"?

-Yeah.

Anataya may like the area,

but she'll have an hour and a half drive to get here,

so she's pinning her hopes on having a local builder in place

to do all the work.

OK, what do you intend to do with the property?

What have you got in your mind?

-Well, I have to change the kitchen.

-Yep.

And bathroom.

I intend to put a shower in the bathroom.

A new floor and decorating.

Upstairs, there's two beautiful fireplaces

-which have been boarded up.

-Yes, I noticed that.

I want to make it up

or bring it downstairs, I'm not sure yet.

OK, so you might even take the fireplace out

and put it there for decoration? It's very pretty, isn't it?

Yes, I have to consult with the contractor.

-Do you have a budget for all the work?

-I believe under 12,000.

-£12,000 to get all the work done and complete?

-Yeah.

And along with that £12,000 budget,

she hopes to complete the refurbishment in just months.

Are you winning?

-Are you winning at the moment?

-Quite often winning.

-Good.

-Investing in all different things, different markets.

-OK.

So Anataya plays the stocks and shares market

and the property market.

Clearly, she doesn't mind taking a risk or two,

which might explain her hobby.

Anataya is a qualified pilot.

I do flying.

-You do flying?

-Yes.

-And how long have you been doing that?

For 20 years now.

-20 years?

-I've got 300 hours.

-300 hours of flying?

-Yes.

-Wow.

It's a diverse thing to do, very diverse.

The property thing, do you want to do more of that?

If I sell this one, I might go for another one.

-Ah!

-But I'm not sure.

So you might be starting to build a few houses and a bit of a portfolio?

-Yes.

-Listen, well done, I hope it goes well for you.

-Congratulations.

-Thank you.

So Anataya seems to have this house completely under control,

but will she have a rough ride during refurbishment

or will she be flying high with the results?

You can find out later on in the programme.

We've seen how one of our buyers got on

after bidding in the auction room.

What about the other two? Did they see the fruits of their labours?

I can't wait to find out.

Earlier in the show, I was in Stoke.

I was observing one of the rarer but much-loved species

of the British housing market, the lesser spotted bungalow.

Making up only 10% of housing stock,

they're a much sought-after breed

and this one was guided at £49,000 plus,

although its plumage had seen better days.

You can tell it's going to need a bit of modernisation, but, you know,

you've got to see through its current condition

to what it might become. Just even by changing the carpets

and either plastering or putting new wallpaper on the walls,

what a change you would make.

And ready to make the changes were John and Chris.

They planned to make their £66,000 purchase

into a home for John's parents.

So have they seen it in its current state?

-Yeah!

-THEY CHUCKLE

What did they say when they first saw it?

I think they were having second thoughts, but I talked them into...

They think we're going to do a good job.

-# I promised I'd be good...

-#

So John and Chris were promising to do a good job for John's parents.

It's a good thing that John had an ideal skill set.

He's a joiner by trade.

We came back 14 months later to find out how John and Chris had got on.

And, judging by the outside, things have gone very well.

A new door, some work on the porch

and landscaping in the garden has really lifted the front,

but does the interior live up to the exterior's promise?

# I promised I'd be good

-# I promised I'd be good...

-#

Wow, a real transformation throughout the property.

This new kitchen is exactly what the space needed.

We ripped out the old kitchen and we put a new kitchen into the area.

We've retiled and we've had a glass splashback fitted.

Out the back of the kitchen, the conservatory is now complete

and looking fantastic.

We decided to keep the conservatory in the end,

but replaced all the falling-in roof

and dodgy windows with a new roof, new windows,

put French doors out to the bedroom, leading into the conservatory.

A nice laminate floor and then doors leading to outside.

Outside, we've put some fake grass down and paved the rest of it,

just for low maintenance and we're pleased with it, yeah.

# I promised I'd be good... #

As promised, the patio doors

leading from the bedroom into the conservatory

and then out onto the garden makes the layout flow much better.

They've also improved the use of space by modifying the bathroom.

# I promised I'd be good... #

Basically, we got rid of

this small room that was housing the back boiler

that's not needed any more,

because we've got the central heating system fitted.

Took this wall down,

squared off the bathroom so it gives a lot more room,

got rid of the bath, put a double shower in,

and replaced the bedroom door where it suits it better

and, yeah, really pleased with it.

And look at the living room.

See what I mean about how new decor can really lift a place?

We've had it fully replastered and we've had new carpets fitted.

We've ripped out the back boiler,

the fire, and we've replaced it with an electric fire.

Their original budget was £16,000 and they stuck to that number.

John doing most of the work

with some help from family and friends has saved them money,

but they thought it would take eight months. It actually took 14.

The biggest challenge I think has been to keep it on time,

because John's done most of the work.

As soon as we started, work got really busy

and, obviously, that takes priority,

cos that enables us to do projects like this.

And this project is complete, ready for John's parents,

Ken and Rose, to move into.

But let's just put a handbrake on the removal vans for a moment

and ask two local estate agents to give us

an appraisal of their renovated home,

starting with the agent who saw it before the renovation.

This is my second visit to the property and there really has been

a transformation, considerably internally, with the property.

Good quality kitchen, bathroom and it's really ready to move into.

The selling point is that bungalows are always in demand.

It's going to be an affordable price range,

so I don't think there's going to be any issues

in reselling this property.

This is my first time inside the property.

I'm particularly impressed with the level of finish to the property,

especially in the garden and the kitchen and bathroom.

I think that the current owners have done the best that they can

with the property, as it is a smaller property,

but I think that the layout is in fitting

and in keeping with the style.

Chris and John's total spend to date is £82,000.

The agents thought the house could attract

a rental figure of £475-£500 per calendar month,

giving them just over a 7% yield.

But what about sales?

If we were to sell the property,

I think it will achieve between £90,000-£95,000.

I would place this property on the open market

in the region of £100,000.

A bit more than we expected, but it's not a short-term thing,

it's a longer-term investment for us

and somewhere nice for my parents to live.

Yes, and they've created a beautiful home for John's parents.

That's what's important,

although a pre-tax profit of £18,000 is good news.

Always pleasing to see children

looking after parents in later years,

something I'm sure the couple would be keen

to remind their son James about many years from now.

That is, after he's finished trying to become the next Dion Dublin.

What's next for the couple?

We've got a bit of work to do on our house

-and a bit of catching up with the little 'un, haven't we?

-Yeah.

We've just bought a camper van,

so we're going to spend some family time together.

Folkestone in Kent is where I was earlier in the show

and not far from the idyllic seaside was this two-bed mid-terrace

guided at £90,000-£95,000.

The guide price may have been attractive, but, sadly,

not as low as the downstairs ceiling.

And, down here, everything seems to get a little bit tighter.

As you can see, it's not a standard-sized doorway.

The ceiling, as well, as I come in,

seems to be just inches off the top of my head.

All right, I'm a bit taller than most,

but that cramped headroom was only emphasised by the space upstairs.

An oversized bathroom...

..nice-sized bedrooms...

each with these hidden gem fireplaces.

Someone who had lofty ambitious was Anataya,

who bought the house for £99,000 as her second property development.

I said lofty ambitious, or was her head slightly stuck in the clouds?

I do flying.

-You do flying?

-Yes.

-How long have you been doing that?

For 20 years now.

-20 years?

-I've got 300 hours.

-300 hours of flying?

-Yep.

Eight months on, and Anataya gave us clearance to land

back at the property and have a look around.

Well, if this is Anataya's second property development,

she's found her feet quickly. This is looking great.

What has she done, though?

Since you saw the house,

we have been changing all the rooms, replastering.

We put in a new bathroom, a new kitchen,

and in the dining room, we changed it into a bigger room.

Take out a wall.

Taking out the living room wall has really opened up that space,

but, for me, it's that new bathroom

and the new kitchen that have really lifted this house.

But there were some hitches along the way.

The biggest problem is the bathroom,

because in the side is a crack and damp,

so I had to do a lot of work up there.

That's the biggest problem.

You know, I think Anataya and I

might have to disagree on what was the biggest problem.

I love what she's done to the kitchen,

but it turned into a renovation disaster.

The new kitchen, it was quite low, so we put in a higher bit,

a few inches higher.

I believe the pressure made a pipe burst

and then caused a leak.

I was here, I was upstairs about 3:00 or 4:00.

It probably took a couple of hours.

I woke up about 6:30, 7:00,

I noticed that there's a lot of water, steaming hot water.

It was like mist in the room.

So, a burst pipe in the ceiling flooded the new kitchen

and meant it all had to be replaced

and that wasn't the end of Anataya's woes.

In fact, she had to change the contractor three times

to get this house completed,

but there was always someone there on hand

to do all the odd jobs in the house.

Herself.

I usually stay here, sleep here and do some other jobs.

Sometimes, I couldn't wait for the builder to come,

I did it, like, for example, painting - I just did it for myself.

So Anataya rolled up her sleeves and got stuck in.

Staying on site saved her an hour and a half drive from her own house,

but didn't save her much,

as burst pipes were one of the reasons her budget soared to £17,000.

Changing contractors three times also pushed her timescale

from three months to eight months, but has she enjoyed the experience?

I'm really pleased when I finished it. It seems over.

Although I have to wait for such a long time,

it seemed never finished.

Despite all the setbacks, Anataya seems to be well grounded.

No time for flying.

I have been so busy,

I haven't got time to fly or look at my book, really.

I haven't watched TV, either.

Anataya has had limited time to relax,

so I'll bet Neo and Fliss will be looking forward to more time

for...(walkies)...

when this development is over.

Now it's time to find out what two local estate agents thought.

Has Anataya's hard work paid off?

The property here's been nicely presented,

it's nicely converted into a more modern, contemporary feel.

A few little snagging issues, but, apart from that, I like it.

They've done a very nice job of the kitchen

and they've done an excellent job of the bathroom.

I think they've finished it off very sympathetic

for a two-bedroom cottage.

Anataya's undecided about what she wants to do with this property,

but she's leaning towards selling,

so can she make a profit on her total investment of £116,000?

I think if this went on to the open market for sale,

I would recommend advertising it for about 135,000

and accept anything over 125,000.

If she wanted to rent it, this would rent very nicely

and I would say about £650 per calendar month.

I think this probably could be

put on the market for in the region of £140,000.

Rental market - this property would achieve

in the region of £675 per calendar month.

So, at an average figure of £137,500 for resale,

or 650 quid per calendar month,

Anataya could choose between a 21,500 grand pre-tax profit,

or a 7% yield.

Is she happy with those figures, though?

A little bit low, I think, your agents' estimate.

140, I would prefer that.

Sit, sit.

Anataya came through a lot of turbulence with a decent profit.

Is it time to get back in the air now?

It depends. If I got time, I would like to go and fly,

but I would like to earn some money first.

Yeah.

Well, doing up property can be a huge learning experience,

even for those, like us, who've done it loads of times before.

Yes, but we are here to help

and hopefully make it that little bit easier for you.

Yeah, so join us next time

for more highs and lows on Homes Under The Hammer.

-Goodbye.

-Goodbye.

-Goodbye.