Episode 68 Homes Under the Hammer

Hello, and welcome to the show.

Now, property can really be a nerve-racking business.

Yeah, it really can be,

especially when you think of the kind of money that's involved.

Ooh, yeah, there's a lot at stake, but a deal can be had,

especially if you want to buy your home under the hammer.

Here's a good tip - have a plan, but always be willing to change it.

Yeah, that's good advice. So, did today's buyers have a plan?

Here's what they bought.

In Brixton, London,

someone's taken the idea of open-plan living a little too far.

The toilet's still here, as you can see.

And speaking of open-plan, in South Wales...

Look at this. Wow.

And in Telford, Shropshire,

there's not quite as much space, but...

I do like this floor.

All these properties were bought at auction.

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

when these homes went under the hammer.

All done?

When the South London suburb of Brixton was developed

during the Victorian era, it was a popular middle-class area.

However, in the early 20th century, it suffered a downturn,

but oh, how things have gone full circle.

Regeneration schemes have transformed Brixton,

and it now boasts lots of trendy bars, cafes

and pricey property.

Now, this is a busy road,

and the railway line, well, it's just over there,

so it's a very noisy spot.

So, if you're after peace and quiet,

then I don't think the hustle and bustle of Brixton

is the sort of area you'd want to live in.

Well, I'm here to see a two-bedroom flat,

and it had a guide price of £235,000 plus.

Now, that sounds promising

when I tell you the average price of a two-bed flat in Brixton

is just under £440,000.

I'm going to have a look around.

Railway line does mean, at least, that Loughborough Junction station

is only a few minutes' walk from the flat,

getting you to London's St Pancras in less than 20 minutes.

But for now, it's good, old-fashioned leg power

that's going to get me up to the first floor

of this split-level flat.

Uh, dusty, dirty, smelly are just a few of the words

I would describe to sum this flat up so far,

but, well, it's got a lovely ceiling height

and a nice, big window here which lets light into the hallway,

so, once renovated, it will be much better.

-But oh, my goodness.

-SHE LAUGHS

Clearly, the work has already started.

This would have been three rooms - a sitting room, a loo and a kitchen.

And you can see everything's already been ripped apart.

All the walls and the partitions have been taken down.

I mean, it's just created one very big, open-plan space.

The toilet's still here, as you can see.

You've got three lovely windows there letting loads of light in.

I mean, even as far as the bare brick over there

looks quite urban and very London.

Not what I was expecting,

but I really can see the potential of this place

and what it could be like.

There's no doubt about it, once all this stuff is in the skip,

well, it'll just feel like a brilliant space.

Open-plan living at its best

with three fabulous windows bringing in lots of light,

though, of course, there are limits

to how far you can take that open-plan feel.

Now, obviously, I'm guessing upstairs will have

the mid-renovation look too because, as every developer knows...

# Once you get started

# Oh, it's hard to stop

# You can't stop me Just can't stop... #

It's great there's that storage space.

I tell you what - valuable, in a London flat.

That really, really is. It's a nice, light, bright bedroom.

You've got two windows that replicate what's downstairs.

I know you've got three down there.

It's good to have such a sunny bedroom.

And at the back here, we've got another bedroom.

Now, this isn't everybody's cup of tea, I know.

You look out the window and you can see big arches,

the railway tracks there, the train will be going past.

I quite like it. You really do know you're living in London.

And, of course, you know, you've got a loo downstairs in the lounge.

Well, you've got a bath up here in the bedroom.

A little bit of damp in this corner as well,

so that's something I would probably look at.

And with this whole property,

I'm not sure about the electrics too.

They might need checking.

Now, being a Londoner, obviously, I love London life

and this flat could have a real urban feel

with that bare brick look,

although you want to keep urban sounds to a minimum

with some triple glazing here, methinks.

-# It's the sound that goes...

-# It's the sound of the Underground

# It's the sound of the Under, sound of the Underground... #

Sound of the Overground, surely, ladies.

But this is a good-sized flat

at a reasonable guide price for Brixton.

However, there are some negatives.

The flat is above a shop,

which means it could be tricky to get a mortgage,

and this part of Brixton is in a conservation area,

so any exterior work,

including changes to windows or even the front door,

have to be approved.

And parking is very difficult in these parts,

so a good thing the train is close after all.

Time to get the thoughts of a local estate agent

on this urban pad.

Victorian properties such as this one, priced at £235,000,

are extremely hard to come by in the Brixton area.

The flat certainly needs a lot of work.

The standard of finish for all properties in this area,

we'd always recommend doing it as high as you can.

We do find that,

if properties are not quite up to the standard buyers are looking for,

you will struggle to sell them

and take a small hit on price accordingly.

So, Brixton is clearly a very competitive market,

so what kind of values could you achieve for sales and rental?

Once renovated, this flat could sell for circa £325,000.

Once renovated, this property could achieve

around £1,600 per calendar month.

Yes, it does have some negatives, but using a bit of imagination,

well, I think this flat could be transformed

into a lovely, light, bright, urban home

for somebody who wants to live in this buzzing part of London.

Who agreed? Let's head to auction and find out.

Moving on to lot 188. Anyone want to start me off on this one?

250?

If not, turn it the other way. Start at 220.

Not going below that. It's got to be worth that all day long.

220, are you bidding? 220.

221. 222. 223.

224. 225.

225. 226.

This lot was near the end of the day,

but there were still a few determined bidders.

We rejoin at 242,000.

Bid's down here with the lady at 242. Looking for 243.

Back in. 243. 244. 245.

246. 247. 248.

249. 250.

251.

No? Bid's down here at 250.

251 elsewhere?

250 for the first, 250 for the second,

250 for the third, final time.

-All done?

-GAVEL BANGS

-Sold 250.

-Whoo!

Well bought, madam.

-Like to see a happy buyer.

-LUCY CHUCKLES

Yeah, I like to see a happy buyer too,

and the successful bidder, at £250,000,

whooping for joy, was Miranda.

Now, she's a florist and her team of builders are responsible

for weeding out the interior of this flat.

The building team are clearly not letting the grass grow

under their feet.

All right, OK, no more puns for me today.

-Miranda, congratulations.

-Thank you.

-You could have tidied up.

-THEY LAUGH

Sorry. We got going before you got here.

-You couldn't wait, could you?

-They've started already, I'm afraid.

They've only been here three days,

but the one thing they've left is the loo.

-I can see.

-THEY LAUGH

Until they put one upstairs,

they say they need to leave this one here.

There's not much privacy, but...

That's what you call open-plan living.

Exactly. It will be.

Well, hopefully, none of them are shy.

Miranda's relying on Ziga, who's from Poland.

He's worked for me for about six years.

He came over to help me do the flowers.

He's a mechanic and a builder,

and he's got these friends who come over and help,

all come up from Somerset and help, so, yeah, got a good team.

Ziga has come over during his holiday from Poland

to do this project with us.

This isn't much of a holiday for him, really, is it?

The poor guy did the same thing last year, so he's great news.

Not my idea of a relaxing holiday, but go, Ziga!

Miranda has bought this flat for her son James.

It was, in fact, her sons James and Richard

who introduced Miranda to Brixton.

They live in a flat around the corner,

so she's bought and sold here before.

But, of course, that isn't her day job.

I do flowers for events and weddings,

and I work all over the country.

Went to Kenya last March, did a wedding over four days.

-600 people at each event.

-Wow.

-And that was amazing.

We used 12,000 stems of flowers, including sort of...

Well, it was all hydrangeas and roses. No greenery at all.

But I love using lots of greenery, generally.

I buy lots of English flowers, and it's very much kind of,

you know, a creative, artistic look, hopefully.

And I'm sure Miranda will be bringing

some of the creativity towards this renovation.

One really exciting thing we're going to hope to do is,

upstairs, there's a loft, but actually, it's a fantastic space

and we're going to board it out, put lights in there

-and so it'll make a guest room, spare room for people.

-Fantastic.

So, that's an extra bonus space.

That's an extra bonus space, hopefully.

The other thing I want to do is put this amazing 3-D wallpaper,

which I've seen, on these walls here.

It's kind of like bookcases, but it's slightly jumbled books,

and it looks really cool.

And I think, again, it will increase the feeling of space in here.

-Yes, it'll give it some depth, actually.

-It will.

And then the kitchen,

which we're going to run along that back wall there,

I want to put some really long, tall cupboards in,

which, again, will increase the feeling of the height of the ceiling

and that will make this room, again, feel bigger.

-It'll just elongate it and stretch it up.

-Exactly.

So, what about the corridor? Because I'm not a fan of corridors.

People dump bikes and post and they can be a bit magnolia and beigey.

-I agree.

-What are you going to do to that corridor?

-Well, one thing about it is it's quite a wide corridor.

-Yes.

And it's got lots of depth in the wall

between the sort of columns which support that fireplace.

So, we're going to put glass shelves on those

so you can dump loads of stuff -

bike helmets, trainers, sleeping bags,

all the sort of things that people have...

-Shoe racks, even.

-Shoe rack. Put a bike rack on the wall.

Take it back to the brick, hopefully,

glaze it over and then light it.

I've got a really good, again, Polish electrician

who's got great ideas for lighting it.

And we'll shoot light up from the bottom

so the wall will be floodlit.

So, when you come in, you should think, "Wow.

"I've stepped into somewhere different and unusual."

Miranda has also expanded the bathroom upstairs

at the expense of the smaller bedroom,

and plans a larger landing area too.

This is the third time she's bought in Brixton,

but she's planning even bolder ideas for her son's new flat.

Well, one idea I did have,

which we may do, depending on the cost,

is to have a glass wall - a far glass wall here -

so that it's not plaster but actually all glass,

and you can see through to the, hopefully, exposed brick wall

on the stairs, and the lighting,

which would extend the feeling of this room.

You can do anything, but it all comes at a cost, doesn't it?

And where are you going to draw the line with the budget?

-Well, the sort of figure we have in our head is 50,000.

-OK.

-Which should be quite generous, we hope.

-Yeah, absolutely.

We should make a really cool space here for that.

What about timescales? How long is it going to take you

before James can happily move in here,

and you can come and stay as a guest?

I don't know how long. Probably four months.

Um, they've done this in two days, three days,

so I think we'll do quite a lot in four months, yeah.

-Miranda, really lovely to meet you today.

-And you.

I am so excited to see the finished product here.

-Well done.

-Great.

-Thank you.

-OK, bye. Thanks.

So, with a budget of £50,000, well, I'm expecting florist Miranda

to create a blooming marvellous home for her son here.

You can find out if all comes up smelling of roses

later in the programme.

And I really hope she does commission

that super-duper glass wall.

This is Crumlin,

a town in South Wales five miles west of Pontypool.

Well, Crumlin was once famous

as the location of the tallest railway viaduct in the UK.

At 200 feet, built in 1857, it really was spectacular.

But the town's more recent claim to fame

is as the birthplace of one sort of noodly, snacky thing in a pot,

if you know what I mean.

Let's hope the property I'm here to see is just as tasty.

So, what was on offer at the auction?

Well, £38,000 was the guide price, but that potentially got you what?

Well, interesting one, this. A former public house.

Now, it is a very sad figure,

but around 31 public houses every week close in the UK.

That's terribly sad. This was one of them.

Looks not too big on the outside. Let's take a look inside.

But don't be fooled by the exterior. This place is a bit of a TARDIS.

Through that little entrance area there into this bar area.

A massive bar.

You've got all the old pumps and everything still there.

And then look at this.

See what I mean about being a TARDIS?

You've got this absolute massive, well,

dance floor/utility space/whatever.

At the end, there's a stage, there are some toilets.

What an amazing space. Wow.

# Dance floor

-# Ay, ay, ay

-# On the dance floor... #

It certainly is cavernous,

but perhaps filling it with dancers and DJs

is no longer a viable option.

# On the dance floor... #

And it doesn't stop here. Downstairs, there's another bar

and storage where beer barrels were kept.

And we're not done yet.

So, upstairs, and a bit of a bonus - you've got a two-bedroom flat.

One bedroom there, another bedroom there, living area here.

So, that throws open the whole possibility of,

well, renting this out separately, perhaps, from the downstairs area.

That would bring you in a bit of income.

Or having this as a place that, whoever ran the building, perhaps,

could live in.

Either way, a good option. However, to make it habitable,

you are going to have to do a bit of work cos, like downstairs,

it is in a bit of a mess.

And certainly, there is some, whoa, massive slope going on,

as you walk through the flat.

I don't know if that's any indication, but...

-Yeah, pretty bad.

-HE LAUGHS

As you can see, floor's on a bit of a slope.

This trolley action might not be making your heart sing.

However, the explanation is outside,

and, possibly, more of a heartbreaker.

Well, round the side of the property,

you can get to see the sort of extension

which houses that huge dance floor.

It really is quite expansive.

However, at the end here, bit of a structural problem.

It looks to me like one of these supporting metal structures

has actually sunk into the ground, and as you can see,

it means the end of the building here is actually dropping down.

That's not ideal, is it?

It may just be historical settlement or maybe it's a bigger problem,

so I'd say get a professional to check it out.

What does the auctioneer who sold the property think

of this former pub, and what options are there

-for its future use?

-It's a very big property.

Size is really the first thing that comes to mind.

In some respects, it's too big.

Properties like this that we sell usually go for alternative uses,

and most often, residential uses.

I don't think that would work that well here, though,

because, frankly, it's not the most attractive property from the back.

The frontage is great,

but would it split easily into flats or houses?

No, I don't think it would,

so it really needs somebody who's going to run it as a pub or club,

social club, that kind of thing.

Perhaps some sort of alternative commercial use.

What about knocking it down and starting again?

You'd have to look at the economies involved with that.

There would be a cost of the actual demolition.

Then what would it be worth when done?

Well, if you put one single house here,

it might be worth 150,000.

Would there be much profit in it, or any profit in it?

Probably not really.

So, what could this property be worth?

If somebody came here and they could set up a business

and run that business profitably

and show that there is a genuine business opportunity there,

then a business could be worth £100,000, £150,000 once set up here.

So, is it closing time finally for this pub

or did someone at the auction spring to its rescue?

Let's go there and find out.

That then brings us on to Crumlin. Very, very large property there.

The original facade with a later

extension on the back.

Guided at £38,000.

£30,000, to start me.

30, thank you. I've got you at £30,000.

At 30. At 30. At one now, can I see?

At 30,000. One, I'm looking for. 31. Well done.

31. 32. 33. 34.

34. 35. 36.

There was a lot of interest in this lot.

We rejoin the bidding at 48,000.

48. 49. 48 and a half.

48 and a half. 49. And 49 and a half.

49 and a half. Make it a round 50. Thank you. 50. 50 and a half.

At £50,000, then, at the back.

For the first time, second time, third and last time at £50,000.

Well done. Your number, please? Number seven. Thank you very much.

Well, the final bid of £50,000

was made by Crumlin-born-and-bred local Derek.

Derek is a gas engineer and travels all over the country with his work.

So, why buy a big, old pub?

I met up with him back in Crumlin to find out what his plans were.

-Derek, good to meet you.

-Good to meet you.

-Congratulations.

-Yeah, thanks.

-You say it like that, do you?

-Yeah, yeah.

-Why? Bit of a project?

-Well, yeah. It is a massive project.

-Tell me why you wanted to buy it.

My wife was looking on the internet for a property to buy

for me to do up cos this is the kind of thing I do,

and she came across this and said,

-"That could be a snooker club."

-A snooker club?

-Yeah.

Because I've always wanted to do, or have, a snooker club.

I owned a table a few years ago, but never had a room to put it in.

HE CHUCKLES Now I've got a room

I can put a lot of tables in.

-MARTIN CHUCKLES

-He's not kidding.

It will make good use of this space.

Derek has been playing snooker since he was about seven years old,

and he's even represented Wales in the world team championships.

He's keen to share his passion,

but also create an amenity in the town.

-Is there much call for that round here?

-I hope so.

THEY LAUGH I've had no negative feedback.

Everybody's saying, "I'm going to send the kids there after school."

That's one of the things I intend to do is, the local schools,

I'll give the room to them cos they all do after-school clubs.

-Right.

-I want to introduce snooker to younger kids.

-Right.

Really nice that you're sort of carrying on

with a local community facility.

-I mean, you could have knocked it down and built flats.

-No.

That's not what I'm into.

You might call me stupid,

but I'm not expecting to become a millionaire from this.

I'm trying to introduce what I like doing to other people.

Wow. That's really brilliant.

# Snooker loopy nuts, are we

# Me and him and them and me... #

So, Derek's not worried about being out of pocket,

but before Crumlin starts potting blacks,

there's a little work to be done,

and the good news on that front is that Derek's a multi-skilled chap.

He's not only a heating engineer.

He has plumbing, electrical and joinery skills too.

Tell me what you're going to do to it, then.

Right, what I would love to do is,

the toilets on the stage there, I want to take those out,

so I can utilise all of that space going back.

There's plenty of room for two tables in the length.

There'll be two tables there and two tables there.

So, there'll be like a partition wall there.

Dartboards just behind you there.

Double doors coming in. Toilets over there. Keep the bar.

Maybe make it a bit smaller. That's basically all here.

Upstairs, maybe turn the stairs in the corner.

-Take all the walls out upstairs and put a few pool tables up there.

-OK.

And downstairs, it's just a little bit of alteration with the seating,

and two tournament tables down there.

Two pool tables, you know.

How much is that going to cost, then? What's the budget?

-I'm thinking around 20,000.

-So, £20,000 budget.

-Does that include buying the snooker tables?

-Yeah, I suppose,

-but I've already got them anyway.

-Oh, you've got them?

-Yeah.

-I had to buy eight.

-What?

-I had to buy eight.

-Eight?

-Yeah.

There was a snooker club in Newport that shut down a year or two ago.

I only wanted four, but the lady said,

-"It's either eight or none."

-Right. How much did you pay for the eight?

-£1,000.

-Did you?

-THEY LAUGH

But then again, not many people have got the space for them, have they?

Well, I haven't got space for eight.

HE LAUGHS

Well, it looks like Derek is ready to go in the table department,

but will he catch a break with the structural problems?

One thing I did notice is that, when you go outside

and you look at this rear area,

it does look like the rear section of that rear area

-has got a few structural things going on.

-Yeah.

It may have moved years and years ago.

-Obviously, this is a mining village.

-Yeah.

-Lots of subsidence.

And I think maybe the one steel support maybe sunk.

But even though it looks like it's dipping,

I'm hoping that it's not likely to fall down.

-HE LAUGHS

-That would be bad.

Yeah, pretty bad.

# We need someone to lean on... #

Derek thinks, at worst, this might need some underpinning,

so let's hope he's not left - you guessed it -

snookered by the issue.

So, what's the timescale?

How long will it be before we hear the clack of balls?

-Three or four years.

-Oh, stop it.

-It could be.

-I'm hoping for six or seven weeks.

-Oh, weeks? Oh, OK.

I've got quite a few guys who are willing to come and give a hand.

Are you going to enlist a bit of support

-when people realise why you're doing it?

-Yeah, yeah.

Family members, I think they'll have to free play, to be honest.

-They've said they'll put their time in here as well.

-Well, that's good.

But what a great opportunity. You must be really excited.

Yeah, I'm buzzing, actually. Yeah, yeah, can't wait.

Well, listen, congratulations. Good luck with it.

It's a great thing you're doing.

-Look forward to seeing how it turns out.

-OK, thanks.

Well, what great news that Derek has bought this place

and he's going to turn it back into a facility for the local community.

And who knows?

We may well even see the next snooker world champion

start his or her career right here.

You can find out how it all turns out later in the show.

Coming up in Telford, Barjan is on a strict timescale.

I'll have this flat turned round and rented next week.

THEY LAUGH

But for Derek in South Wales, he may have miscued his timescale.

It might be six weeks from now.

Back to Brixton, where, earlier, I saw a two-bed,

two-floor flat guided at £235,000 plus.

Oh, my goodness.

Except it wasn't a two-bed any more,

as the noise of the nearby railway track

was joined by the sound of demolition work.

The renovation had already started,

and the person responsible was florist Miranda,

who had bought the property for £250,000 for her son James.

Miranda's building team wasted no time

and got stuck straight into the work.

And it's fair to say, she had some grand plans for the place,

such as the living room...

Glass wall. A far glass wall here.

-..the loft...

-Board it out, put lights in there.

-..the kitchen...

-I want to put some really long, tall cupboards in.

..and the corridor.

Take it back to the brick, hopefully, glaze it over,

and we'll shoot light up from the bottom.

It certainly was a bold vision.

It's now six months on,

and Miranda has invited us back to see the changes.

And the flat is simply unrecognisable.

Miranda and the team have transformed it top to bottom.

So, to find out what's been going on,

let's start at the bottom in the corridor.

We've put lights all the way up the stairs so that...

It's also a kind of security factor as well,

so you can have them on at night

and it's a kind of low light as you come in.

So, all the way from the very bottom to the top.

Miranda and James sadly decided against putting in the glass wall

from the living room to the corridor due to the expense.

But what was once a scene of destruction is now...

# You're some kind of heaven That's all that I need

# I found it in you I found it in you

# You're some kind of heaven... #

So, this is the sort of living room/kitchen,

and in here, we've moved the wall that was here

because the kitchen was a separate room.

And there was a very boxy area about here

where a wall came out at a right angle.

And then we've re-plastered all of this

and rounded off all the walls, which gives the room,

I think, much more feeling of depth.

And this is quite a sort of feature.

We've put in some quite nice lights down there,

which will, you know, light up the alcoves,

and, again, give the feeling of more depth in the evening.

And we replaced all the windows and triple glazed them.

We put in new floors.

The whole thing's been gutted and redone.

And then the kitchen,

we tried to put in as simple but as functional a kitchen as possible,

which would blend, in a stylish way, with the room,

and look not so much like a kitchen, but as part of the living room.

And everything's integrated, so it's got the fridge and the cooker

and freezer and dishwasher all here, but sort of hidden away.

Heading upstairs, and Miranda's recreated two beautiful bedrooms,

and come up with some very clever storage solutions.

On the second floor, we tried to open it out.

The staircase was all boarded up,

and there was actually a wall at the top of the stairs,

which was completely unnecessary, so we took that out.

So, you immediately have a more open feeling as you come up the stairs.

And then we also created a utility area up there

with the extra space that we created.

This floor also has the sparkling bathroom.

Like the rest of the flat,

I like the way Miranda has used curved edges and classical colours

to emphasise the Georgian history of the property.

However, not all went according to plan.

We've decided not to do anything in the loft

because the headroom wasn't enough, really, to justify it,

but it's still a good storage area.

Throughout, the finish is impeccable,

from sisal carpets that give off a very pleasant smell

to high skirting boards,

from triple glazing to automatic lighting.

So, I have to ask, how did that 50 grand budget fare?

It probably was a bit ambitious

to think that we could have done it all for 50,

so we've probably spent more like 70.

The reason that the budget had to increase

is the quality of all the fittings that we've put in,

in, like, the kitchen and the bathroom

and all those things.

But that's a decision that we wanted to make

to make it, you know, a really top-quality flat.

It's also taken Miranda's team six months

rather than the ambitious four-month timescale,

but she must be overjoyed at the result.

I'm absolutely delighted with the finished product.

It's been really fun doing it, and exciting all the way.

And, you know, I'm so pleased with my team of builders.

The finish they've put on it is fantastic.

The plan was for Miranda's son James to move in here.

-So, is that still the case?

-James was going to move in,

but he's so happy living with his brother round the corner

that he's decided to sell it now, so it's actually on the market.

Well, that's quite a change of plan.

Miranda will be keen, then, to find out what the flat is worth,

and we've asked along

two local property experts

to give us their opinion on this extraordinary renovation.

This property is an immaculate standard.

Design features of the property are really good.

We've got triple glazing, which is brand-new.

The wooden floor is very good.

You've got sisals through the staircases and the bedrooms.

And the bathroom is very luxury standard.

The layout of the rooms looks good. The bedrooms are well-presented.

It's got a really modern feel,

even to the extent where they've put in nice bed covers

and dressings, and the carpets all look good.

I think they're going to make a profit.

The only downside I can see to this property

is the fact that it's above a shop

and people's perceptions of buying properties above shops.

Other than that, when you get inside,

everything is really good.

So, will Miranda make a profit against her total £320,000 spend?

The agents are agreed that the property could rent

for £1,650 per calendar month,

but that would only give Miranda a 6% yield.

With her heart set on selling,

what could it command on the resale market?

I would put this property on the market

for offers in the region of £525,000.

Regarding the sales market,

I would put this property on the market at 525

to obtain to get 500, minimum, for it.

Delighted, yeah. That sounds a very exciting prospect.

That top valuation means a potential profit of £205,000,

minus taxes and fees.

With this success behind them,

Miranda and her sons are forming their own development company.

They have an architect and, of course,

that trusted team of builders on hand.

But that's the future.

What does Miranda make of this property?

The whole experience has been really exciting,

and lots of adrenaline at the auction,

and the excitement of seeing the place

just develop into this wonderful flat.

I'm in Telford, Shropshire today,

a busy, bustling new town that's seen lots of redevelopment

and investment of late.

And with an increasing move back towards town centre living,

I think I've found an auction lot that could be right up that street.

# I want to be close to this... #

Well, not too far from the centre of Telford is Hollinswood,

which is no slouch either when it comes to redevelopment,

as the area is benefiting from a £2.5 million regeneration fund.

The property I'm here to see is up there on the second floor.

It's got two bedrooms, and it has a guide price of £60,000 plus.

Let's take a look.

And with 99 years left on the lease, set in pleasant surroundings,

this 1970s-built building looks well-kept and cared for.

Hopefully, it's the same inside.

OK, so, we're up on the second floor,

which is good for security.

If you're immobile in any way,

it might be a bit awkward for you and a bit too far to come.

Anyway, into the flat.

Long corridor in front of me,

and we have a bit of storage in there.

Even more storage, which is good, with shelving in there as well.

Bedroom just there.

Now, you've got a bit of a void space here.

I'd be looking to take that wall down,

bring the wall to here, just gain a bit more space in that bedroom.

Further along this beautiful, yellow corridor

into bedroom number one, which is much bigger.

Lots of space in there.

Down the corridor, we've got the lounge to my left.

The bathroom, which looks in really good condition.

You could quite easily keep that, clean it up a little bit,

put some new flooring down and that would be fine.

A little bit further down our beautiful, yellow corridor

and we've got the kitchen right at the end.

Again, similar story in here.

From what I can see,

there doesn't seem to be too much that needs to be done,

and I think you'd be able to keep these cupboards as well.

As well as this flat seemingly not needing much doing to it,

the location is perfect

as the town centre is undergoing a huge regeneration,

and that's just walking distance in that direction.

So, cinema, shops, restaurants all on your doorstep.

And if you work in the town centre as well

and you don't have a car, what better place to rest your head?

Let's have a look in the lounge.

OK, into the lounge, then, and I do like this floor.

I'd be inclined to get it cleaned up,

varnish it and keep it.

I'm pretty sure the neighbours below

would rather you had carpet for the sound,

but, selfishly, I'd want to keep it.

Bit of paint on the walls

and two big windows letting loads of light in, which is great.

You have to say it - there's a lot of good things here.

Nothing is in poor condition.

The two rooms you normally would look to upgrade

would be the kitchen and the bathroom,

but here, they really don't look like they need much work.

Bit of elbow grease, fresh lick of paint, some new flooring,

and this flat would certainly be ready for renting.

But surprise, surprise, there's a catch.

Now, here on the show,

we always say, "Read the legal pack."

We harp on about reading the legal pack,

and I've done just that on this flat,

and it did throw up a few interesting things.

One of the main ones for me was

there's going to be work being done on the building

over the next five years,

and it's going to cost round about £35,000 in total

to get all that work done,

and that cost is going to have to be split between the six flats.

If I hadn't have read the legal pack and I wanted this flat,

I would never have known that. So, what did I say?

Read the legal pack whether you're buying a flat,

a house or a bungalow.

Read the legal pack!

# Read all about it Read all about it

# Oh-oh... #

They do say knowledge is power, and in this case,

providing you know this before you start bidding,

the additional five or six grand shouldn't be a problem.

But for an unwary purchaser,

that could be the difference between making a profit or loss,

so get your hands on the legal pack.

# Read all about it Read all about it

# Oh-oh

# Oh, oh-oh, oh, oh-oh... #

So, to get some more information on the flat

and the surrounding area, we invited an agent from the auction house

who sold the property to get his opinion.

The area Hollinswood's

quite well-known in Telford.

It's very popular as well cos it's very close to the town centre.

A lot of people who maybe live in Hollinswood

also work in the town centre.

So, there's a definite market for this type of flat.

Well, what changes would be needed

to attract potential buyers or tenants in?

In my opinion, the kitchen maybe just needs a lick of paint.

I think the units as they are should be quite fine.

The lounge has got some nice flooring in it.

Basically, it's just decor, really.

And the bathroom, I think it's fine as it is.

It could just be given a bit of a makeover.

Sounds like we're singing the same song here,

so let's put some values on the flat that was guided at £60,000 plus.

Once the renovation's complete,

I would estimate the property to be worth £69,000 for sale,

and for rental purposes, £525 per calendar month.

All this flat needs is a lick of paint,

some new carpets and a bit of elbow grease

and that would be it, but you have got those extra costs

that were flagged up in the legal pack.

Now, I wonder if that put any potential bidders off

when it went under the hammer.

Lot seven.

This is a two-bedroom, second-floor apartment needing modernising.

It's 55 to get going on this one.

55 bid. Thank you. At £55,000.

56, can I see now?

56. 57.

58. 59. 60.

61. 62.

No? At 62,000.

63 anywhere else?

I'll take 500 if it helps.

62 and a half. 63?

No? At 62 and a half, then, right in the middle. All done now.

62,500 once, then, twice, third and last time. 62,500.

Your lot, sir. Well done.

And the successful bid of 62 and a half grand

was made on behalf of Barjan,

who left it to his son-in-law to do the bidding.

Let's hope he checked this one out thoroughly.

I met him back at the flat to find out.

-Barjan, nice to meet you.

-Yeah, nice to meet you too.

-Congratulations.

-Thank you.

-Why this flat?

This flat, I bought because of the location.

It's very close to the town centre,

and the town centre is being developed,

and I think, going forward, it will be a good investment.

-So, you're looking to hold on to it, then?

-Yes.

-Now, I have read the legal pack.

-Right.

-And there's some work that needs to be done on the building?

-Yes.

This flat is in a block of six flats,

and each flat will have to pay their proportion of the costs,

and it's around about £30,000.

And the work that's going to be done is mainly outside, exterior -

the structural roof, structural building,

exterior decorations and things like that,

but that's going to be done over five years.

Did you not think, "Hold it a minute.

"I paid this much for the flat and now I've got to pay this much"?

No, it doesn't bother me

cos the property will be a lot better anyway

for having the work done cos the flats are about 40 years old,

so it does need a bit of work doing to it in certain areas, I think.

-Was there anything else in the legal pack that flagged up that...?

-Yes.

I can't do any internal structural wall changes

-or change the rooms or HMOs and all this.

-OK.

-So, that's the local housing trust that insist on things like that.

-OK.

-So, the configuration's got to stay the same?

-It has.

In a way, the rules set out by the freeholder

mean that this is straightforward. No, "Should I do this?

"Should I do that, move this, knock that down or change that?"

This flat is what it is,

and I'm relieved that Barjan read that all-important legal pack

and went into this purchase with his eyes wide open.

And even if he can't make any structural changes,

he can still change the internal look and finish of the property.

So, what are you going to do to the flat?

The two bedrooms will have carpets. New carpets, obviously.

-The hallway will have lino.

-Mm-hm.

Obviously, where the paint needs doing in the flat,

I'll get it painted.

And, at a cost of about £600 total,

I'll have this flat turned round and rented next week.

-THEY LAUGH

-I don't like to hang about.

Really? I know it doesn't need much work,

but one week is going some.

Barjan is pretty confident he can get it done fast

and for that £600 budget.

With a tenant already lined up,

this is really a rapid money-spinner.

# In no time at all... #

So, Barjan, what is your background

before you started getting into property?

I used to work for a large engineering company.

I retired in 2013, and I managed to get a good pay off,

and since then, I've been investing in properties.

So, I haven't been into properties very long,

but I've already got a portfolio of about three properties.

What was it that made you go into property?

What made me go into property was my son-in-law

cos he's got loads of properties,

and I just saw what he did, and it was so easy.

I learnt a lot off him.

-Has he given you a few tips?

-Yeah.

I go with him to the auctions and I pick up, so, yes.

Did he go to the auction with you when you went for your property?

He did. He did. He was interested in this property, but I told him...

-HE LAUGHS

-..I wanted it,

so he had to agree to me getting in.

-So, you're taking properties off him now?

-Yes.

He's not very happy with it, but I have, yes.

And will you be going back to the auction very soon to buy more?

At my age, I'll be honest, I'm happy with what I've got.

-"At my age"?

-Yes.

-You're a young kid.

-No, I'm 65.

I'm happy at my age. I don't want to get any more properties.

I wish I'd have done it younger, you know.

Then, I probably would have. But I'm happy with what I've got.

-Barjan, good luck, sir.

-Thank you, Dion.

-Wish you all the best.

-OK, thank you.

Barjan may have come into the property business

later than he'd liked, but he's certainly a cool customer.

Even though the legal pack did throw up some extra costs for him,

it didn't seem to bother him whatsoever,

as this is a long-term investment.

But he's given himself just one week to get the work done.

Will he achieve it? You can find out later in the programme.

Now, we've seen what one of our buyers did after auction.

Now let's see how the other two got on.

Yeah, I'm looking forward to this.

Back to Wales now, and cue the town of Crumlin,

where I visited a former public house.

From the street, a modestly-sized property.

But don't be fooled by the exterior. This place is a bit of a TARDIS.

Through that little entrance area there into this bar area.

A massive bar.

And then look at this.

See what I mean about being a TARDIS?

You've got this absolute massive, well,

dance floor/utility space/whatever.

At the end, there's a stage, there are some toilets.

What an amazing space. Wow.

And wow again, with a cellar and bar on the lower ground floor,

and a two-bedroom flat on the top floor.

It just went on and on, but it also went up and down.

As you can see, floor's on a bit of a slope.

MUSIC: It's Not Unusual by Tom Jones

It may be a TARDIS on the inside,

but it looked more like a space station on the outside.

And one of those supports would explain the slope.

Still, structural issues are not unusual... Ho-ho!

..here on Homes Under The Hammer.

But a buyer with slightly unusual plans...

£50,000.

Step up, local gas engineer Derek,

who snapped up the property for a cool £50,000,

and he had big plans for his investment.

-A snooker club?

-Yeah.

-Because I've always wanted to do, or have, a snooker club.

-Really?

I owned a table a few years ago, but never had a room to put it in.

HE CHUCKLES Now I've got a room

I can put a lot of tables in.

A lot of tables indeed.

Derek planned to knock through the walls

to the toilets and stage on the main floor

to create even more space for the snooker tables,

as well as restructuring the top floor,

allowing him to add pool tables.

And not forgetting the lower ground floor,

which was getting a major makeover too,

and, of course, some more tables.

With a budget of £20,000 and a timescale of six to seven weeks,

we've returned 12 months later to see how Derek got on.

MUSIC: Sirius by The Alan Parsons Project

OK, OK, back to the renovations.

As planned, on the main floor,

Derek has removed the stage and toilets,

creating an expansive space to put four snooker tables.

He's also added a partitioning wall to the new-look bar area.

Now, the work is obviously still ongoing here,

but the transformation is quite dramatic.

And it continues downstairs.

This is the lower ground floor.

We took off the wall there to tank it

cos there was a fair bit of damp coming through.

We've put in pool tables, we took out the bar,

and it's turned out really nice.

Next door, work continues on the dilapidated beer cellar.

And upstairs, in what was once a very tired-looking flat,

the renovations have actually paused,

as Derek awaits the go-ahead from the local council

to install a new staircase and flooring.

Once the red tape is out of the way,

Derek intends to install the new staircase

as well as add three new pool tables.

Derek's done a lot of work here,

but I do remember something about a six to seven week timescale,

and judging by my watch,

it's currently sitting around 53 weeks.

Originally, my timescale, I think I might have gone mad

and said something like six weeks.

It might be six weeks from now.

Main reason - I got a job, which I do four or five days a week,

and most of this in here, I've done myself.

I'm going to hold you to that six weeks, Derek.

Now, let's talk about that potential subsidence issue.

Even though it had a little bit of subsidence, maybe,

it's not moving any more.

It's probably historical,

so I dare say it shouldn't happen any more.

So, the building isn't moving any more. That's good news.

But surely those wonky floors aren't great for a snooker hall.

We took up a load of the dance floor.

We screeded the back of the floor to make it level,

and we've reused the timber in the bar.

Recycling is always a great way to save a bob or two.

And speaking of money, how did Derek get on with that budget of 20,000?

There's a lot of things

which I didn't really see in the beginning,

like all of the seating.

I renewed all the seating.

There was about half a dozen skips which I didn't plan on having.

It all mounts up.

But, yeah, we're up to about 45,000 at the moment,

and probably end up another ten or 15 to go.

Whoa! That is a serious overspend.

Derek knew this wouldn't make him a millionaire.

It really is a passion project.

He's hoping to encourage youngsters in the surrounding area to play,

and maybe even spawn a champion.

But even at that, he needs to get this place open

to see some money coming in.

Again, it's about four or five weeks.

Once I get the bar licence and I can actually serve alcohol,

we'll open then.

So, with a potential overspend of 35,000,

bringing his total spend to around 110,000

and a timescale that's gone to pot,

is Derek going to be chalking up success with a maximum break

or is it a miscue?

What do two local property experts think?

The standard of work seems to be excellent.

There's a few bits and pieces that still need to be done,

but what I've seen so far

is of a very good standard.

Fixtures and fittings are excellent.

I'm really impressed with what the purchaser has done.

It's a very unusual use for the property,

but I definitely think it'll work.

The selling points of this property are there's no such use

like this in the area at the present time,

and I think it'll bring the community together as a whole.

Bringing the community together was one of Derek's hopes,

so this isn't all about money.

But it would be rude not to ask,

and the agents did have very different views

on the rental potential.

This property would achieve a rental of £1,250 per calendar month.

If this property was to be let,

I would say it would be looked to be rented out

in the region of between £800 and £1,000 per calendar month.

But what about resale?

Based on that income, I would say it would give a value, then,

of resale of between £100,000 and £120,000.

I would expect this property, if it was placed on the market,

to achieve in the region of £125,000 to £130,000.

That top figure could mean a pre-tax profit of £20,000.

What does Derek make of that?

They're fine as sale values, but not intending to sell.

So, as expected, Derek's holding on to the place,

and he's looking to the future.

The long-term goal would still be to find a potential world champion.

In Shropshire,

and within walking distance of the town centre of Telford,

is where we first found this two-bedroom, second-floor flat.

Built in the 1970s, this flat was impressive in its general condition.

Yes, perhaps some decor wasn't quite up to scratch.

However, that was it, really.

The kitchen units and bathroom weren't bad at all.

It looked like a straightforward doer-upper,

but there was a catch awaiting any unwary purchaser,

a catch where not reading the legal pack could prove costly.

# Take care

# Take care

# Take care... #

There's going to be work being done on the building

over the next five years,

and it's going to cost around about £35,000 in total

to get all that work done,

and that cost is going to have to be split between the six flats.

If I hadn't have read the legal pack and I wanted this flat,

I would never have known that.

So, what did I say? Read the legal pack.

The person who had done just that was retired engineer Barjan.

He bought it at auction for £62,500.

He knew exactly what he was getting into

and exactly what he was going to do with his third property purchase.

The two bedrooms will have carpets. New carpets, obviously.

-The hallway will have lino.

-Mm-hm.

Obviously, where the paint needs doing in the flat,

I'll get it painted.

And at a cost of about £600 total,

I'll have this flat turned round and rented next week.

-THEY LAUGH

-I don't like to hang about.

One week, 600 quid? I thought, when you retire,

you were supposed to take it easy or leisurely.

Not Barjan. He wanted to get this done and dusted ASAP.

# Only seven days... #

Now we're going to see if Barjan was as good as his word

because one week later, we're back to check his progress.

There's new flooring in the hallway...

..paintwork in the lounge...

..and new carpets in both bedrooms,

though I'm surprised to see they haven't been redecorated.

And, well, that's it.

Apart from a new cooker in the kitchen,

both the kitchen and bathroom remain untouched.

But, of course, the big question is about the time it took

to do the work.

# How long has this been going on? #

My original timescale was a week,

but I managed to do it in three days.

I might have been a bit slow, really.

# Three days... #

Three days? Don't overdo it, Barjan.

So, was there anything here that was an issue?

# Three days... #

No, the biggest challenge was finding somebody,

like a tenant, to rent it out fairly quickly,

which I did do, and they're moving in tonight.

Get in! Barjan has wasted no time here

with what looks like minimal work and hassle,

bought and rented out in just two months.

So, right after this interview,

he'll be making money from this flat.

And speaking of money, what about the budget?

I was hoping to spend £600. I didn't budget for a cooker,

but to do the deal with the tenant, he wanted a cooker.

He wanted a gas cooker,

so I did that for him and the budget has gone up to £780.

A cooker and the cost of fitting it will take the budget a little over,

but it's not a lot in the grand scheme of things.

That brings Barjan's total spend on this flat to 63,300,

so he's not going to get his fingers burnt here.

Still, there's not much value added that I can see.

What do two local property experts think?

First, the one who saw it before.

Having seen the property now for a second time,

I am quite surprised that more hasn't been done to it.

It has been done to a budget and it's been given a lick of paint

here and there, but nothing dramatic whatsoever.

If it was my flat, I'd probably have spent

a little bit more time and effort on decorating.

Maybe some new carpets,

maybe a little bit more attention to the flooring in the kitchen as well.

The bonuses of the property are the good-sized lounge.

It's got a decent main bedroom as well.

For a flat, it's actually a good size.

With a tenant in place and ready to go,

Barjan sees this as a long-term investment.

His total spend on this project has been just below £63,300,

but how would he do on the current resale market?

Sales-wise, the property should achieve around £68,000.

I believe this property would achieve between £65,000

up to £67,000.

I'm quite surprised, you know, that it's valued at those prices.

I didn't think it would be that high. 68 is pretty good.

On the face of it, that's a potential pre-tax profit

of between £1,700 and £4,700, minus any taxes and expenses.

Well, set against that will be the cost of any additional work

carried out by the freeholder in the next few years,

but the flat owners will have to pay for it,

and that's likely to cost in between £5,000 and £6,000 each,

which would wipe out any potential resale profit.

But Barjan was aware of this,

and was always looking at it as a buy to let.

In terms of rental potential,

the property should achieve £525 per calendar month.

So, I believe this property would rent out for £475

up to £495 per calendar month.

Yes, I think that's quite a fair rental valuation

that the estate agents have mentioned,

and I'm lucky that I've got it for 500, so that's pleasing.

Even if you add in the additional costs he will incur

on this flat with the work the freeholder will do,

Barjan's £500 per calendar month rental return

will see a rental yield of above 8%, which isn't bad.

So, despite what he said before, is he tempted to do more?

I have three properties already and I'm quite happy to keep it at three.

No, I don't want to buy any more properties.

I could easily end up with ten if I wanted to,

but I'm content with what I've got.

# You're all I need

-# You're all I need

-# All

# Together. #

-Well, there is a lot to learn in the world of property.

-Oh, yes.

-And we are here to hold your hand and give you some good advice.

-Yeah.

So, join us here next time on Homes Under The Hammer.

-Goodbye.

-Bye-bye.

-Goodbye.