Episode 64 Homes Under the Hammer

Hello, and welcome to the show.

Some investment properties need a big spend for a big return.

Yeah, and others, they just need

a bit of TLC and then they'll do you proud.

The trick, of course, is knowing which one to go for

and when you do know, why not try buying your home under the hammer?

If you buy wisely with the property market,

it can give you great returns.

Yeah, so did today's buyers buy wisely?

Let's see what they bought.

In Barnet, I'm holding out on you over this three-bed semi.

There's more to this rather smart, well-kept house than meets the eye.

Meanwhile, I'm not holding out on you on this three-bed semi

in Madeley, Shropshire.

Oh, boy, have I got something to show you at the back of the property.

While in Nottingham, I'm certainly not holding back

when it comes to budget busting.

Do you spend it on the bathroom, in the kitchen,

or do you spend it on the loft?

Or do you do it all?

All these properties were bought at auction.

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

when these homes went under the hammer.

-HAMMER BANGS

-You bought it. Well done.

Yes, it might be the last stop in Zone Five of the Northern Line, London,

but Barnet is nevertheless a popular area to buy property.

There's regenerations and improvement all over

the shop in Barnet, making it even more desirable.

This residential road is in a great spot.

It's only a two-minute walk from the station

and 15 minutes from the high street.

So there's plenty right on your doorstep around here.

And speaking of doorsteps, here is the property I'm about to see.

It's a three-bedroom semi, it had a guide price of £390,000.

However, there's more to this rather smart,

well-kept house than meets the eye.

I will reveal all later.

For the time being, let's go and have a look around.

Well, this house certainly feels solid, well built...

I think, once you've got rid of this wallpaper and the carpet,

straightaway you're going to have a very impressive hallway.

I love the character already.

And look at these! Now, I remember as a little girl in my parents' house having these!

Room dividers, don't you know. Absolutely beautiful.

Painted up with a really modern colour, they will look fantastic.

What a great room.

It's nice that it's already been opened up, really sunny, double aspect.

Oh! Look at this fireplace! Come over here.

It's like a face.

You've got the two eyes,

a nose and a rather sort of...

miserable-looking mouth down there.

I'm not sure whether I would keep that. Be up to you.

But there's potential to put something really beautiful there.

Um, a little bit of a disturbing crack up there.

I'd maybe get a structural engineer in to have a look at that.

That could be a little bit worrying.

And of course, look, every house has got to have one!

The old serving hatch!

Hello!

Great property, loads of potential.

I think you could really get your teeth into a house like this.

# Hello

# Is it me you're looking for?

# I can see it in your eyes

# I can see it in your smile

# You're all I've ever wanted

# And my arms are open wide. #

OK, OK, enough of that silliness, Lionel!

This house is in great but dated shape

and the proportions are fantastic, except for

a curiously small kitchen.

Now, upstairs, there are three bedrooms.

Two of them are a really good size, especially this master bedroom.

Although there is a third, which is a bit of a box room.

There's a separate bathroom and a loo

which isn't ever really ideal, and I definitely want to change that.

It does come with a garage and a parking spot at the front,

which is great for a family-sized property such as this.

Plus there's a pretty good-sized garden out the back,

which brings us full circle to chat about that little secret

I mentioned earlier!

Now, I often talk about extension potential in the properties that I view.

This time, this house already comes with planning permission to extend.

And this is no small extension, oh, no!

Take a little look at this.

Wow! It goes all the way out to the back, around at the side

and to the front and it even goes up into the loft.

So all in all, you get a five-bedroom, four-bathroom house.

I already like this property. But wow, it could be really spectacular.

Planning permission in place really propels this house to the next level.

The large kitchen/diner on the ground floor would be ideal

and two of the four bedrooms on the first floor would have en-suites,

but there will also be a family bathroom.

And utilising that loft space creates bedroom number five

and bathroom number four. Wow!

Having planning permission in place means whoever purchases

this property doesn't have to spend the time

and money going through all the red tape to get to it.

Yes, it will cost money to carry out this large extension,

but I know there's a demand in this area, so it might just be worth it

if you want to make a big profit.

We invited a local estate agent along to hear his opinion on this

property, which had a guide price of £390,000 plus.

Planning permission on a property already in place is quite rare.

Sometimes you might get someone who has tried to obtain planning

and it's now expired, but to buy a property on the open market

with planning permission in place is quite rare and very appealing.

The plans look excellent.

They would really, really add to the property.

If I was looking to do the extension work myself,

a double-storey side

and rear extension with a loft conversion as well,

I'd probably be looking to spend

in the region of £170,000-£200,000.

Well, that's a massive sum. Almost half the guide price alone.

Is it worth it, then?

What kind of valuations are we looking at for that extended

five-bed property? Rental first.

Once this property's renovated and fully extended, you're looking

to achieve in the region of about £1,800-£1,900 per calendar month.

And what about resale valuation as a five-bed?

This property, once it's fully extended and fully refurbished,

I would expect to achieve in the region of £775-£800,000.

Yes, it does need updating, but I really like this property.

It's great! And with so much further potential, you don't even need

to go through the planning process if you want to make it bigger.

Let's head to the auction and find out who fancied buying in Barnet.

Who'd like to kick off on this? I don't know, 450?

I'm not going to go below 450.

450 anywhere?

450, I'll take it, just on the outside, 450, 455, sir?

460, 465, 470, 475,

480, 485, 490...

..495, 500, 505, 510...

..515, 520...

..525, 530...

..535, 540...

..540, 545, 550...

..550, 555...

..555, 551...

551 elsewhere?

If not, it's going at 550, first time, second time...

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

HAMMER BANGS

Sold, 550.

Whoa!

Now, I know London prices are scary, but that winning bid of

550,000 was a stonking 160 grand over the guide price

and it was made by Ricken, who was at the auction with his mum, Jasumati, and his dad, Rambai.

Together they run a construction company.

Ricken was determined to get this property,

so I was determined to find out why.

Ricken, congratulations.

-Thank you very much.

-So, what was going on?

You paid £550,000 on auction day.

How much did you want this house?

We've been looking for a while and I just wanted to get my teeth

into something and I just looked at it and fell in love with it.

-But you did go for it a bit on auction day, didn't you?

-I did, I did.

-Did you get carried away a little bit?

-I did, it was my first auction.

I just didn't want to lose it.

-I had to win it at all costs.

-Really?

-Not the best strategy...

-Your heart has ruled your head?

-It has.

Obviously, it's all about making money for you, isn't it? Why are you doing this?

Well, lucky for me, I'm in the trade, I run my own construction company,

so I could afford to go over a little.

-Because you can cut back on costs?

-I can save the costs.

And this one, it's a beautiful property.

Like, as soon as you walk in, you kind of fall in love with it.

But interestingly, this was sold to auction WITH planning permission.

-Now, is that sort of what interested you and whet your appetite?

-Exactly.

The timing... For me, it was timings.

The project just fits in with my timings at work.

-End of one project, start of a new one.

-Really?

Planning permission already... just makes it easier.

So who's funded this?

So, the main backing's from my parents.

-Which is amazing!

-Yes.

-Love the Bank of Mum and Dad!

Bank of Mum and Dad has come into use.

Fabulous! So we're very grateful Mum and Dad have stumped up for this.

-Yes.

-What have you got to do to pay them back in any way?

-Have you got to pay them back?

-Not really, no.

We're just going to add it to the portfolio, so Mum and Dad have a

portfolio that they've had for years and this is just an addition to it.

In the last couple of years when I started my company,

they saw the potential and they trust me.

-So planning permission is for a five-bed, four bathrooms.

-Yes.

But I was thinking... I was looking at the plans

and I was thinking to change it to a six-bed, three-bath. But...

-Really?

-But I'm not 100% sure.

You see, I'm not 100% sure a six-bedroom house along this road

is what you need.

I think you'd be better off to put another bathroom in, actually.

Add in the bathroom to one of the bedrooms. I don't know.

I'm not sure either. My mind's not made up.

Let's see what the estate agents say,

we've still got time to think about it.

It's not major work to change it into a bathroom, so...

Tweaking the plans could end up costing time,

which might spoil the good timing of the project for Ricken,

and he's not one to let the grass grow under his feet.

The materials have been ordered, as soon as the film crew leave, Monday morning...

Wahey! You're going to kick us out and then we're going to start?

We should start, yeah. The neighbours have been informed and...let's go.

# Yeah, yeah, yeah, working! Work! #

Don't be fooled by Ricken's youth.

He's very experienced in property renovation,

and while this is a challenge, he's taking it in his stride.

With Ricken himself mucking in on a daily basis, he hopes

that he and his team will get the work completed in six to seven months

to the tune of £110,000, with a 10% contingency plan.

Come on, then, how much do you think this house will be worth once it's had your fairy dust

sprinkled all over it?

I would hope to achieve something around 750.

Wow.

But... Maybe even more, depending on the finish, the end product.

But around 750 I would say would be reasonable

for a five-bed, four-bathroom property

to the standard that we should get to.

-This house is going to be maxed out whatever.

-Yeah, yeah.

-Are you excited by that?

-I'm really excited about it.

You're going to want to keep this, aren't you?

-This is another thing we discussed.

-Ooh!

My parents said if it's really nice, we'll keep it.

Because my brother needs a new place to stay,

he's just newly engaged, so he needs a place, so let's see.

So you're going to be putting all this hard work and love in

for your brother to have!

Well, I'm really keen to get him out of the house!

So it might be worth it! Let's see.

-THEY LAUGH

-It's been lovely meeting you.

Good luck with this project and I cannot wait to see what you do to it.

-Thanks very much.

-Well done, thank you.

Well, Ricken got carried away in the auction room. That is clear.

But I hope he doesn't get quite so carried away with his budget during this project.

It's all very well falling in love with a property,

but you need to think with your head and not your heart

if you're going to succeed in the world of developing.

Stay tuned and you can see how he gets on, later in the programme.

Today I'm in Madeley, a town overlooked by perhaps Shropshire's

best-known natural landmark, the Wrekin.

Locals claim that depending on which side you view it,

the Wrekin can look like a hill or a mountain.

I'm off to visit a local housing estate, which thankfully

doesn't involve such a climb.

Well, with a magnificent view of the local landmark, the Wrekin,

is the property I'm here to see.

£85,000 was the guide price for this semidetached house.

Unlike the Wrekin, though,

this looks like it's pretty much the same whichever side you view it from.

So, into the property, and a fairly classic layout,

stairs up to your bedrooms there... Oh, a bit of a nasty

sign of damp down there, you want to explore that

and find out what's causing that.

But a large front living-room area here...

Fantastic wallpaper! Wow!

But you've got the gas fire, obviously you want to have that checked out...

Looks like you've got central heating too, which is good, the double-glazed windows...

It's all starting to come together, that's for sure.

It's a nice-sized space, and then again, a very classic layout.

Though into your kitchen.

Good size, and the thing about ex-local-authority houses

is they were just built-to-be-lived-in houses and still are.

And they make a great choice, as you know. I definitely think that.

So, this kitchen, it's a good size,

it's got space for a bit of a dining area there, little utility area.

Downstairs loo over there, which is good, views out onto the back garden.

I mean, what is there not to like?

So, a good start to a well-proportioned house.

So far, so good.

So, upstairs and you've got your three bedrooms.

The smaller one there, double one there and another double one at the front.

They're a reasonable size.

One area you are going to have to spend some money though is

the bathroom, which, as you can see, just needs a little bit of updating.

Oh, boy. But spend some money in there, and you'll definitely recoup

that in terms of the value and certainly the appeal of the property.

But in the front bedroom here, more signs of some damp.

Now is this serious? Well, it's seriously icky, that's for sure.

My guess though is that is classic damp that is created

when the house is just left with nobody in it, with the central heating off

over the dark, cold, damp winter period, which is where we are now.

So, I don't think that's something to worry about.

Get the central heating on, get the house lived in,

open the windows and that will be sorted.

Obviously it's worth getting that damp checked,

but with any luck, a bit of modernisation and decoration

and the interior of this house is good to go.

And that's not all.

These former local-authority houses always seem to be

built on generous plots, and here, there's room for off-street parking.

You'll need the council's permission to drop the kerb,

but off-street parking can add a lot of value,

so that could be a good move here at the front.

But what about round the back?

Oh, boy, have I got something to show you

at the back of the property!

A real lovely surprise.

Because of the, well, basically, positioning of the house,

it's ended up with this absolutely fantastic rear garden.

Look at this! Absolutely wonderful.

I guess, apart from the fact it's a fantastic garden, does it

give us the option to do some kind of an extension on the property?

Well, actually, strangely,

I don't think it does, because...

Because our house is angled this way

and because that house is angled that way,

any extension coming out in this direction is going to get a little bit too close to that

and any extension here is going to run out of garden.

So...

You sort of think it would work...

but I don't think it does.

Extensions aside,

it's a very child-friendly garden or even a gardener-friendly garden.

And south-facing, too.

Only a landlord might have second thoughts about maintenance.

What thoughts does a local estate agent have

about the potential values of the semi, guided at 85,000?

Once the property's brought up to a good standard,

I would suggest a rental value of £600 per calendar month.

If this was to go on the open market once the property's been done to a

very good standard, I would suggest an asking price of £125,000.

Well, it's a good, solid house with the benefits of that fantastic garden.

Yeah, bit of a no-brainer.

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

Lot Ten, we now go to Madeley, Telford.

It's a three-bedroom semidetached house.

Again, it is in need of modernisation.

Shall we get it going at 78?

78 bid, thank you. At £78,000.

It's at £78,000... 80 bid, thank you.

At £80,000, 82? 82, 84, 86,

88, at £88,000.

90? £90,000, at 90,000.

92?

And £90,000, there, I'm pointing at him now.

It's at £90,000. I'm selling it at 90,000.

If there is not another one anywhere else.

There is. 91.

91. With you, sir, £91,000. 92 anywhere else?

92...

92 with you, sir. At £92,000.

93 anywhere else?

92,000 bid, sir, for £92,000 once, twice,

third and last time,

at £92,000...

-HAMMER BANGS

-You bought it. Well done.

And that bid of £92,000 came from Graham and Marion.

Former professional golfer Graham and wife Marion

were actually looking at two properties on the day,

but they were put off because there was a hole in one, ho-ho!

Ouch.

I met them back at the property to find out what their real plans were.

-Graham, Marion, great to meet you both. Congratulations!

-Thank you.

Tell me why you wanted to buy this place.

Basically, a year or so ago, both our mothers have died.

And what that has allowed us to do is look at how to reinvest

all the money they've left so our children can benefit as well.

-Right, so, using an inheritance.

-Yes.

Unfortunate circumstances,

but maybe both your mums would be happy with what you were doing.

Did they have interest in properties?

-My mother did, yes, definitely.

-She did.

-Why this particular house, then?

It's near to where we live and we were impressed with the house

itself when we had a look into it.

We didn't feel as though much needed doing to it.

-You were really positive, weren't you?

-Mm-hm.

So the next step was to go to the auction.

# It's like a new generation calling

# Can you hear it calling? #

So, Graham and Marion become the next generation

in their family with an interest in property,

with the hope that it will in turn benefit their children.

Graham now works as a supply teacher at the local high school

and Marion is a part-time midwife.

They already have a property portfolio, so does that mean

when they are not working, they will be getting stuck into the work here?

-Oh, definitely, yes.

-Hands on?

-All our free time will be spent here, yes.

-A big garden.

Yes, fantastic garden, south-facing.

Everything that a family wants to make it a garden which you can enjoy.

We are going to make it more user-friendly.

Probably flatten an area of it so it is all level.

Hopefully, the idea is that someone comes round, sees the garden

and thinks, "Yes, we want that house."

That garden is something of a unique selling point,

so while it may not add thousands of pounds to the value, with

a bit of work it could certainly attract buyers or tenants quickly.

Traditionally, bathrooms and kitchens do the same,

so what are the plans there?

Bathroom will be retiled.

-I've got a bit of practice doing bathrooms, haven't I?!

-Yes!

The kitchen we are very happy with. Tiles possibly need relaying.

And then a few bits of damp inside.

Any idea what is causing that?

I think because the house has been empty for a few months, once we've

stripped it all back, obviously, we will have a check and seal it off.

-And then redecorate after.

-And then the budget is what?

It's very low, it will be £2-£3,000.

We did Marion's mum's house last year,

which again is an ex-council house, and we did that for less than 5,000.

That needed a lot more work doing to it and a new kitchen.

This doesn't need any of that.

It sounds like Graham and Marion

know exactly what they're doing here.

They are planning to have the house done in six to eight weeks, but I'm

a little surprised to hear they plan to sell it on, rather than rent it.

From the figures we've been given, we feel as though

we can make enough profit which will take us

-three years to get that money back in rent.

-Right.

If we turn it round quickly, we can look at doing it again.

-Well, congratulations!

-Thank you very much.

-Good luck with it.

-Thank you.

-We look forward to seeing how you get on!

-Cheers.

-Thank you.

Well, I think Graham and Marion have chosen very well with this place,

a wise use of their inheritance monies.

Not too much to do, good news really.

Six to eight weeks, all hands to the pump. How will it turn out?

You can find out, especially the garden,

when we come back later in the show.

And coming up, in Nottingham,

first-time developer Julie does her homework.

I did a lot of research on all of Nottingham, really.

And in Madeley, Graham and Marion have high hopes

for a successful property-developing career.

If we turn round quickly, then we can look at doing it again.

Now it's time to head back to Barnet in Hertfordshire, where

I visited this tidy three-bedroom semi with a guide price of 390,000.

Although the property was in need of a little updating,

it was in great shape and still maintained much of its period charm.

It wasn't the frowning fireplace

that held the biggest surprise, though.

This house already had planning permission for an extension.

Take a little look at this. Wow!

It goes all the way out to the back, around the side

and to the front, and it even goes up into the loft.

All in all you get a five-bedroom, four-bathroom house.

It could be really spectacular.

This property was bursting with potential,

which didn't go unnoticed when it went to auction.

-After an exciting back-and-forth bidding war...

-Sold, 550.

..the property sold for £160,000 over the original guide price.

With the final bid of 550,000, well, it was Ricken, who owns

and runs a successful construction company with his parents.

Despite being Ricken's first property development,

he wasn't hesitant to jump in at the deep end.

Planning permission is for a five-bed, four-bathrooms.

But I was thinking, I was looking at the plans and thinking to

-change it to a six-bed, three baths.

-Really?

I think you'd be better off to put another bathroom in, actually.

My mind is not made up. I mean, let's see what the estate agents say.

Still got time to think about it.

Setting himself a timescale of six to seven months,

and with a budget of 110,000, with a 10% contingency,

Ricken was aiming to sell the house for £750,000.

We returned 11 months later to see how he got on.

Wow! What a transformation!

As per the original planning proposal,

Ricken has extended the property to the side, rear and up into the loft

area, although altering the internal plans to include another bathroom.

All of this to create a spectacular five-bedroom, five-bathroom house.

This used to be the original kitchen where I am standing.

We've knocked through and opened it out into a nice kitchen/diner

with bi-folding doors, which leads on to the garden,

which is a nice, little space for the kids to play around in.

We've got a utility room which houses an underfloor heating system

which goes throughout the ground floor,

and we've just tiled throughout, to have a nice, clean,

nice space which reflects light and makes it nice and open.

It looks amazing! Although there is obviously a bit of work to do yet.

The ground-floor kitchen,

utility and bathroom has been laid out in such a way it could

actually be used as a separate guest annexe if necessary.

On the first floor, there are two bedrooms with en-suites

and both bathrooms have a lovely sort of hotel vibe.

Everything is done to exacting standards,

and to the right of these two en-suites is the new part of the house,

bedroom number three and four, which have a shared bathroom.

Again, beautifully appointed.

Whilst up on the second floor, that loft conversion makes

an amazing master bedroom, with of course its own bathroom.

So, that's five bedrooms with the possibility of that

annexe on the ground floor serving as a bedroom too. Phew!

So, how did Ricken decide

on his final bedroom-bathroom configuration?

In the end, looking at the properties around the area and on the street,

I didn't think that a six-bedroom house would fit the market.

So adding an extra bathroom is more valuable to a family who is

potentially going to live here with kids.

I think he's made the right decision

and the result really is fabulous.

I do miss some of those period features, though.

Whatever happened to those sliding doors?

Obviously, they are not here any more,

but they didn't get thrown away into the skip.

The sliding doors and actually, all of the bedroom doors,

the original bedroom doors have been rehoused

at our neighbour's property across the road.

So we recycled them.

That's OK, I like a bit of recycling,

and I'm happy to hear they went to a new home.

Now, the all-important budget.

We've ended up spending £40,000 more than we accounted for,

so the final budget ends up at £150,000.

Bearing in mind the scale of the project and the final fit-out,

I feel we've done well.

That brings the total spend on this huge project to 700,000.

That's a big investment. What do two local estate agents make of it?

I think the property has been done beautifully, actually.

I think they've taken into consideration

modern family living and they've done a very good job.

There is a real shortage of stock, actually, of homes of this size

in the area, so it's fitting for a family who need to have

lots of bedrooms and bathrooms.

A lot of work has clearly gone on here.

Maximised the size, can't get any more accommodation

out of this house now. Really, really good what he's done.

A few things to finish off, but really, really nice house

when it's done.

So it's a great job, but having spent £700,000,

has Ricken left enough to make any profit?

We would expect to achieve on the resale market £925,000,

and on the rental market,

we would expect to achieve around £3,500 per calendar month.

I would recommend on the open market that you would achieve

offers in the region of £925,000, and for rental market,

you would be looking to achieve 3,250 per calendar month.

The valuation from the agents means

a potential profit of an amazing £225,000.

It's quite in line with what I expected.

95 is probably what we would sell at, looking for 950, it's good,

a good return.

That rental valuation would mean a yield of 6%.

At 3,500 it might be beneficial for us

to hold on and we can go again, remortgage and go again.

So it gives us options.

So it's good to hear that, it's quite reassuring as well.

So all in all, I'd say a resounding success for Ricken's first foray

into the property renovations market,

and I can't imagine this will be his last.

We're definitely going to go again.

Something smaller next time and then go again with something larger.

Having played football for many years and for several different clubs,

travelling up and down the country with Homes Under The Hammer

often brings back memories, and today was one of my favourites.

So I'm here on the A52, which links Derby and Nottingham,

commonly known in these parts as Brian Clough Way,

the great man who managed Derby and Nottingham.

And, I happened to meet him once. I said, "Hello, Mr Clough."

He said, "Dublin." I was just happy he knew my name.

Maybe there could be a Dion Dublin Drive in Birmingham one day?

Anyway, back to reality and away from the A52.

We are heading to a suburb with a nice, villagey feel.

So here in Bramcote, a nice, sought-after area in Nottingham,

is the property I'm here to see.

It's a three-bed semidetached property with a guide price

of £145,000, plus, the first thing I've seen is off-street parking.

I like that. The second thing is, there's a garage down the end.

But can you get your car to it?

Let's see what you get for your money.

Blimey. Always good to have a garage but I don't fancy reversing

in and out of this driveway.

# The road is long...

# With many a winding... #

OK, we're into a really spacious hallway.

Gas central heating. Always like that.

A nice, big window, a bit of light coming into the hallway,

and your stairs up to the bedrooms.

Let's have a look into the kitchen.

Which is small and it's a little bit dated. A bit '70s, '80s.

I did say we've got central heating, which is good,

and the boiler is just here. And it's old-fashioned.

That needs updating, for sure. A bit of cupboard space here.

Yes, shelving there.

So it just needs freshening up in here,

but I'm sure there are options to be had.

No option about the boiler, though. Throw it away.

It's too big and too old.

What I wouldn't throw away are those kitchen units.

I reckon some upcyclers would be happy to get their hands

on those units, and you might make yourself a quid or two.

You've also got this big space here, sort of lounge, living-room area,

dining area just over here.

What it does say to me is...

You've got this sort of old-fashioned "pass me a cup of tea" hatch.

Back in the '70s, '80s, very, very popular.

But for me, make into a nice kitchen/dining area,

bring it into the 21st century. A nice family room.

You could make it even two separate rooms if you wanted to,

but there's options here to be had.

And they are all yours.

OK, OK, maybe it's not a "pass a cup of tea" hatch, but you get the idea.

# Potato, potahto, tomato, tomahto

# Let's call the whole thing off. #

Kitchen/diners are so popular nowadays, and for me,

this dated property is crying out for one.

OK, upstairs, we've got the three bedrooms.

A little bit of landing space.

I do like the window at the top of the stairs,

and the window at the bottom. It brings in a lot of light.

Small box bedroom just there, master bedroom there, bedroom two.

Toilet and a bathroom which again looks a little bit tired.

A bit dated and could do with a bit of a spruce-up.

And you have a loft hatch as well.

I have seen across the road that there's a few loft conversions.

Depending on how big your budget is, do you spend it on the bathroom

and the kitchen, or do you spend it on the loft?

Or do you do it all?

Depends on what your budget is.

# I want it all and I want it now... #

Before you dive in, think about what you want it for.

If it's for you to live in, yes, an extra bedroom would be great.

But if you want to sell on and maximise your profits,

keeping your budget low is the best option.

Options is the word of the day for this property,

in case you haven't noticed.

So out in the back garden and I think it's a nice size.

You'd have to put a fence back up again,

but I think a bit of TLC out here

and you'd have yourself a nice family area for the kids to run around in.

While getting the paddling pool out might be an option, there are others.

This is a sizable space,

and you could think about extending like the neighbours have.

You could make access for getting materials in by getting rid

of the garage. However, like a lot of garages of its era,

it probably contains asbestos, so a specialist is needed here.

Options and more options.

A great-size garden, though, to go with a great-size house

with room for improvement, and all for a guide price of £145,000 plus.

We invited along an agent from the auction house that sold it,

to get their opinion.

Potentially, there is an avenue of extending at the back

and having maybe a fourth bedroom

and a larger living accommodation downstairs.

However, it's good enough as it is.

It's a three-bedroom semi,

you could just have a conservatory, or the bare minimum is just

to knock out the walk and have a larger kitchen/dining area.

OK, if the agent thinks the current footprint is fine,

then maybe it's best to be careful not to overdevelop.

What rental potential does it have?

With regard to rental, I see this property within

the region of £700-£750 per calendar month.

And how about the resale value?

This property, once fully refurbished and modernised

and of a high standard,

I see it on the market within the region of £230-£240,000.

Well, it's one of the better three-bed semis I've seen.

It just needs a bit of modernisation.

So who was looking for something pretty straightforward

and simple when it went under the hammer?

Lot number one, an attractive three-bedroom semidetached house

which requires some upgrading and improvement.

Start me on this one where you like, would you like to start me at 150?

150,000 for it? 150, thank you, £150,000 I have.

At 150,000, 151 from someone?

151 is bid. 152, 153, 153, 154?

154.

This was the first lot of the day

and it certainly attracted a lot of attention.

We rejoin the bidding at 183,000.

Lady's bid at 183,000, out in the doorway, out by the window.

£183,000.

For the first time...

For the second time. Third and last. 500.

184, yep? 184. 500 in the doorway.

185. 500.

186. 186,000.

Seated bid at 186.

Coming again? At £186,000, once...

Twice... Third opportunity? Hammer's up.

Sold at 186, thank you.

The successful bid of £186,000, just 40 grand over the guide price,

went to former travel and tourism lecturer Julie.

This is her first renovation project and I'm keen to find out

if she thinks this property will be plain sailing or a bumpy ride.

-Julie, nice to meet you, congratulations.

-Thank you.

-So, what enticed you to this property in particular?

-The area.

It's a very nice area.

And also, it needs a fair bit of work, but it's not, like, massive.

And to dip my toe in the water, I thought for my first one,

I'll see how it goes and this is it.

And judging by your accent, there's a bit of a twang there from the south!

I'm originally from London, east London,

but I live in Essex now, in Romford.

But I came up here just because I found the auctions in London

a bit overwhelming, a bit busy.

So much competition and it just seemed that

I needed to spread my wings a bit and here I am in Nottingham.

So did you do a bit of research, before you came up, of the area?

Oh, yeah, I did a lot of research on all of Nottingham, really.

And the day I went to the auction, well, prior to that,

I'd come up and viewed five properties in one day

with a friend, and this was the last property.

So at the end of the day we went to the pub and we said,

"We've got to start writing down which one's which and which I should

"go for," and this one came out on top and I was lucky enough to get it.

Top of the class, Julie. If you are buying in an unfamiliar area,

it is SO important to do your research.

Take a note of the travel links, local schools, amenities

and planned developments. All this can have a bearing

on the value of the property you are buying.

Plus, you have to factor in the travel costs, especially if you live

a distance away and you are planning to supervise or do the work yourself.

Talking of which...

What have you got in mind? What are you going to do to it?

Well, downstairs, I was going to knock through the wall

from the kitchen to the lounge,

cos as you have probably seen, it is very tiny and dated.

I think it needs opening up.

And, also, I was going to put a toilet under the stairs,

as well. And then, when we go upstairs, the toilet and bathroom

to become one. And, then, just a general tidy-up

and wallpaper etc. And then, outside, I was going to have

some off-street parking and have that block-paved. And the garden -

a tidy-up, decking and the garage is going to go,

cos the roof is asbestos, which you have probably seen.

So, that is going to go. And then, that's it, really.

Just a general tidy-up and put back on the market.

Have you looked at any other bigger plans for the property?

Maybe the loft or extending or...?

I did, yeah, and it is a possibility,

but the financials just didn't work out on it,

from the research I'd done.

But obviously, it is an option and it is there if someone wants

to do that, so, they have got that option, as well.

But, no, I'm not going to do that.

Julie really does her research and plans well,

right from arranging to stay the night before the auction,

so she had the chance to bid on lot one. She is on it!

She has a budget of in-between 15 to 20 grand and, of course,

she has thought about a contingency. She aims to have the work completed

in four to five months, which is impressive, despite her lack

of property-developing experience.

-First time at the auction?

-Yeah.

-First lot?

-Yes.

-First property?

-Yes!

And there is no nerves, at all?

No, there wasn't. I was just really pleased I got it, really,

and a bit surprised, cos it was, really, a popular lot,

which I thought it would be. Cos when I viewed it, it was quite busy.

But, yeah, I was just pleasantly surprised.

Good for you. I think you have got yourself a little gem.

-Thank you.

-I think you will do well.

-Thank you.

-Good luck to you, Julie.

-Thank you.

-Take care.

So, a lot of firsts for Julie, but she has done her prep

and a load of research, which is always advisable.

But will she stay within that £15,000-£20,000 budget

and make her first profit? You can find out later on in the programme.

Doing up property can take much longer than you think.

We have seen how one buyer got on, but when we went back to visit

-the other two, had they finished?

-Well, let's find out.

We swing back over to Madeley now -

a little town in the formidable shadow

of the Wrekin.

It was in this Shropshire town

that I was hoping this three-bed semidetached house,

that had a guide price of £85,000,

would be less of a mountain to climb and more of a hill.

And so it proved.

As you will know, if you watch regularly,

I am a big fan of ex-local-authority housing, and this was no exception.

Spacious, solid and only in need of some cosmetic work.

Plus, a substantial garden. Well, it was perfect for families.

It proved popular on auction day, too, but, as always, there can only

-be one successful bidder.

-You bought it. Well done.

Husband and wife team Graham and Marion bought this property

for £92,000, using money they had recently inherited.

# It takes two, baby

# It takes two, baby

# Me and you... #

And it didn't take them long to spot the big bonus here.

-A big garden?

-Yeah, fantastic garden. South-facing.

Everything that a family wants, to make it a garden which you can enjoy.

We are going to make it more user-friendly. Probably flatten

an area of it, so that it is all level.

So, hopefully, the idea is that someone comes round,

sees the garden and thinks, "We want that house."

Graham and Marion planned to do the work themselves,

hopefully, with a little help from their three grown-up children.

They had a budget of just £2,000-£3,000 and a timescale

of six to eight weeks to get this property ready for the sales market.

Well, it is now five months later and we have returned to find out

how it's all gone.

Wow, that garden is looking SO much better!

And a little birdie tells me decking will be added

at a later date.

Hopefully, the good work continues inside.

The bathroom has been brought bang up to date, with a modern

monochrome feel.

It was outside that Graham and Marion hoped would be

the wow factor, so, as expected, the work here has been kept

relatively simple, with new flooring throughout

and repainted walls,

giving the property a fresh, attractive finish.

It has been a bit of a family affair, with all three

of Graham and Marion's children getting involved - Michael, Helen

and, particularly, youngest son Peter,

who laid the floor in the second bedroom.

There is a few little jobs to finish, but overall,

Graham and Marion - and not forgetting Peter

and his brother and sister - have done a really smart job here,

turning this from an unloved, dilapidated property into a lovely

family home we see today.

Time to catch up with Graham and Marion,

to find out exactly how it's gone.

The original timescale was about eight weeks, wasn't it?

-Yeah, and I knew you wouldn't make that!

-Yeah.

That soon went out the window, didn't it?! But we spent a lot of time

-in the garden...

-Too much time, I think.

-Too much time.

But it was very nice, spending that time in the garden, wasn't it?

With it being south-facing, we wanted to create a family environment,

with a bit of a wow factor. We have still got the decking to do,

but in terms of the garden, we have levelled it off,

we have put a nice path down towards where a shed is likely to be put.

It looks really good. We are really pleased with the garden.

-And we have dropped the kerb, haven't we?

-Round the front,

we recycled everything, brought the fence back.

We have dropped the kerb, so they can get two cars parked on the front,

cos it is quite a busy road out front.

-And we are really happy over everything, aren't we?

-Yeah, we are.

Of course, not everyone will want to lose a nice front-garden outlook,

but parking is a bonus when the road is busy

and it can add significant value at a relatively low cost.

Speaking of costs, how is that £2,000-£3,000 budget holding up?

With the dropped kerb, we have ended up spending...

-About 3,500?

-..3,750...

-Oh, is that right?

-..I think, in total.

And that is with some new work surfaces in the kitchen, as well,

which we weren't planning on doing, just to make it look

-a little bit better than it was before.

-Mm.

-But overall,

we have stuck within the budget that we set ourselves, so we are quite

-pleased with that.

-One issue they spent more time and money on

than expected was the damp.

When we first viewed the house, we saw the front of the house,

which faces north, was... A few bits of damp on the walls.

Um, the house had been empty for about six months,

so, we cleaned it all off, we have now had it treated,

we've put a special insulation wallpaper on the outer walls,

and round the edge of the house we have dug it all out

so that water can't collect around the outside of the house.

Because of that, we feel very confident

that the damp won't come back again.

Well, along with their purchase price, Graham and Marion have

so far invested just under £96,000.

They are eager to sell, so, hopefully the weather won't

dampen the enthusiasm of two local estate agents.

The butt is fantastic, it's been done to a very high standard.

It will attract tenants and buyers very easily.

The bathroom has been done to a good standard as well

and the kitchen is also very good.

I'm really impressed with the garden as well, it's a big garden.

Demand for this, both for resale and the rental market,

would be extremely strong.

If the sellers decided to let the property, I would not envisage

that this property would be on the market for very long.

With that in mind, let's hear valuations.

Rental first.

I believe this property would let for £575-£595 per calendar month.

If this was to go on the rental market today,

I would be suggesting to our clients that we put

this on the market for £600 per calendar month.

-I'm surprised.

-I thought it was just a fraction on the lowish side.

-About another £50 per month.

-I'm more than pleased with that.

-Yeah?

-Mm.

But we're not renting, anyway.

A divided opinion on rental, there.

But will the resale values meet their expectations?

If this was to go on the sales market today,

I would be suggesting an asking price of £125,000.

I believe this property would fetch, in the sales market,

£125,000-£130,000.

That's a profit of around £29,000-£34,000, which is excellent.

Graham originally worked out that a profit on resale would be

better than waiting for a return on rental, and with these figures,

he would have to wait around five years to make that sum, so...

-I think we are definitely going to sell, aren't we?

-We're going to try.

We're going to try and sell. If we can't sell it, we'll have to rent it!

Yeah. Me viewing!

THEY LAUGH

Back now to the sought-after suburb of Bramcote in Nottingham.

It was here that we first looked around this attractive

three-bed semi that had a guide price of £145,000 plus,

a great but dated house that was screaming out to be modernised.

You've got this sort of old-fashioned,

"pass me a cup of tea" hatch.

Back in the '70s and '80s, very, very popular, but for me,

make it into a nice kitchen/dining area, bring it into the 21st century.

Nice family room.

You could make it even two separate rooms if you wanted to,

but there's options here to be had and they are all yours.

It turned out to be a real battle on auction day, with bids flying.

But in the end, the property sold for 186,000.

It's sold at 186, thank you.

Step up, property novice and former travel and tourism lecturer Julie.

Having done her research,

she concluded that the London market was too daunting,

so, Julie travelled from her home in Essex to Nottingham to begin

her career in property development.

So, did you do a bit of research, before you came up, of the area?

Oh, yeah. I did a lot of research on all of Nottingham, really.

And the day I went to the auction, well, prior to that,

I had actually came up and viewed five properties

in one day, with a friend, and this was the last property.

So, it was all a bit...

at the end of the day, we went to the pub and we said,

"We've got to start writing down which one's which

"and which one I should go for."

And this came out on top and I was lucky enough to get it.

Although there could be scope to add bedrooms and extend,

Julie wisely wanted to keep her first project relatively simple.

She had a budget of between 15 and 20 grand with a 10% contingency,

and she hoped to get the work complete

and the house ready for the sales market within four to five months.

Five months later, we've returned

to see if Julie's plans took off or were grounded.

Knocking that wall down has opened this right up,

making this once dated and dowdy living area fresh and contemporary.

Another wall has come down upstairs,

this time between the bathroom and toilet,

which is now a far more practical family bathroom.

The bedrooms are looking much better,

with a tasteful finish that runs throughout this revitalised property.

Outside, that old, dodgy garage has gone

and there is new decking to go with this smartened-up garden.

There's a few bits and bobs to finish,

but Julie has done a great job for her first property project.

But how was it for her?

The biggest problems I had initially was finding a builder,

contractors, that I felt happy with,

and that took me about a month, but I eventually found a good

local contractor, who had some really good, useful contacts

as well, that we brought in, and they did all the work for me.

But the biggest issue that they came across was in the kitchen.

There was what they called a floating chimney breast,

if you remember, it came sort of halfway down.

But when they started to remove that, they found it was

full of concrete and it was quite a horrendous job,

and I had acrow props and steels and all sorts here.

So, that was pretty tough going.

But once that had gone, everything else was pretty smooth.

Julie originally planned to have a cloakroom downstairs, but on her

builder's advice, she decided it wouldn't be cost-effective.

Don't forget, she had a healthy budget of between 15 and 20 grand,

but there has been a fair bit of work here, so how is it looking now?

Um, I spent, in total, £18,655,

which I was quite happy with.

It was in line with my expectations.

I kept the budget to that by sourcing

a lot of the materials myself,

and then getting different tradesmen in just to actually fit

the appliances I had plasterers in, electricians in, builders in

etc, so, that kept the price, you know, to what it was,

really, 18,500, or just over.

So, I was quite happy with that, for the work that's been done.

Um, it's... I hoped it would take about four to five months,

which...in reality, it has taken that long.

But actually, work-wise, if all the work was done in one go,

it would probably have only taken about two and a half months.

But, you know, I found the builder,

he then had a week's holiday booked, I had two weeks' holiday booked,

I live in Essex, so I was backwards and forwards,

so, things got done as and when I had chosen the materials

and the availability of the contractors.

So, I was quite happy with the timescales involved,

and although it isn't finished at the moment -

there are still quite a few things that are outstanding to do -

I'm quite happy and confident that they will get done in the next

couple of weeks, with the contractors I've got in place.

Well, Julie is so confident

that she has already put the property on the sales market.

But will her total investment of just over £204,500 be money well spent?

We've asked along two local agents to cast their critical eye

and give us their verdicts.

We'll start with the agent who saw it originally.

For a three-bedroom semidetached house, it's ideal for families,

it is far more conducive for modern-day living, open-plan,

sociable kind of lounge,

dining and kitchen area,

so, it's got a nice flow and it's ideal for busy families.

The property has been finished to a high standard,

and all the walls,

skirting boards, they are painted throughout,

and all the carpets have been laid out properly.

OK, so, now to hear those all-important sales valuations.

With regards to selling the property on the open market, I'm going

to be quite conservative here,

I feel that you do have competition with detached properties and

four-bedroom detached properties, so, pricing has to be crucial.

Invariably, the market is buoyant and new precedents are set.

But my feeling is you're looking to put this on the market within

the region of £240,000-£250,000.

This property will achieve

the market value of £286,000.

Um, the house is currently on the market with a local agent

for £279,000, and I've had a few viewings

and some positive feedback, so I'm very happy with that.

Well, the estate agents can't always agree,

but if Julie was to achieve her valuation of 279 grand,

that would mean a whopping profit of just under £74,500,

which is amazing, considering it's her first project.

And for Julie, it's all down to one thing.

Anyone who is thinking of getting into property development -

research, research and more research!

I think if you've done some thorough research,

it will pay dividends in the end.

Find out what more proud owners did for their property next time.

-So, join us here on Homes Under The Hammer.

-Goodbye!

-Goodbye!

-Goodbye!