Episode 8 Homes Under the Hammer

Hello, and welcome to the show.

The property market is an ever-changing thing.

There can be a very different picture,

depending on which part of the country you're in.

One constant is the property auctions.

There are thousands of properties sold under the hammer every year.

And to help us with all the action is former footballer Dion Dublin.

Great to meet you. Great to see you. Great to see you.

I've always been into sport, but property has sort of ran parallel.

What I am enjoying is meeting the developers

here on Homes Under The Hammer.

All sorts of properties are sold under the hammer, so if you're

thinking of investing, why not pop down to your local property auction?

Yes, but don't get carried away. Do your homework before you bid.

Here's what we found for you on today's show.

There's a dazzling surprise in this Stoke end-of-terrace.

Whoa! Bright white kitchen! Sunglasses on!

In London, it's time to let the light into this two-bed flat.

I do like the space it offers. The windows in there are fantastic.

And is there a little treasure to be unearthed in Manchester?

You can find those little gems that you can turn around very quickly.

This is definitely one of them.

All of these properties have been sold at auction

and we'll find out who bought them

and what they paid when they went under the hammer.

-HE BANGS GAVEL

-12 and sold!

# I think it's going to be all right, all right

# Everything will always be all right when you go shopping #

Today, I'm in Stoke-on-Trent. Hanley, to be precise.

As any local will tell you, Hanley is the place to go shopping,

or have a good night out in Stoke.

In fact, they've coined a saying to mean just that - "Oop Hanley, duck."

# Go shopping, go shopping... #

So, what's on offer in Hanley today?

Well, an end-terrace, corner property, so that's good news.

As is the price, £35,000 plus.

Got to be worth... exploring further.

From the outside,

this seems like a fairly typical Victorian redbrick terraced house.

There are obvious signs of wear and tear,

like this window frame - ugly but not a real problem.

Well, seems pretty expansive, the moment you walk through the door.

Stairs up to the bedrooms there.

A sort of sitting room area on that side.

And then through here, it almost has a feeling of what,

I guess, it might have been in the past - a corner shop.

Because it's bigger than you anticipate.

This room here, look at it.

Some lovely old stained glass in the windows.

I wonder if you could keep that. Probably not. The windows need replacing.

You know, this is a good size sitting room in here.

And then, what have we got here?

It almost looks like it is a bit of a single-storey extension.

Housing a... Whoa! Bright white kitchen! Look at that!

Sunglasses on. But not a bad space.

Although, it looks to me, it's going to need a bit of work.

It's obviously got lots of damp.

And somebody has tried the most amazing job of updating

the work surfaces by painting them. Lovely(!) Yeah.

Rip out and start again. But, in terms of a start,

and the amount of space you've got, brilliant.

I am liking this place already.

It's really spacious and has some quirky features.

I'm off upstairs for a sit down.

BACKGROUND MUSIC SLOWS AND DISTORTS

You know when you do painting,

and you go to a lot of trouble with all that masking tape and

careful about the edges and covering things with dust sheets and stuff?

Clearly, whoever did the painting in this bathroom didn't adopt

the same approach.

It looks like a seagull's got in here and done its worst.

More seriously, though, whenever I see fresh paint like this,

I wonder what's it covering up.

Oh, dear.

Looks like the bathroom will end up in the skip along with the kitchen.

Well, the good thing about corner terraced properties is that,

obviously, you have got an extra wall which you can have windows in.

As a result, they are often light and airy.

And that's exactly the case here.

Look at this, a really good size bedroom.

It's only got two bedrooms but really nice size.

You're going to have to

sort of see through some of the clutter that's still here.

But do that, and what you see is a really decent little property.

So, great potential inside but let's see what the outside has to offer.

Well, not only have you got this rather interesting extension

to the side of the property, but also quite an extensive

- I was going to say garden - but it's just utility space.

Also a garage.

So, suddenly, this property is actually quite expansive.

And just as a completely random thought,

I wonder if you could possibly think about building a house here.

So this could be a building plot?

CASH REGISTER RINGS

That could bring you quite a lot of cash.

MUSIC: Money by Pink Floyd

Of course, that would be a decision for the local planners.

It's worth thinking about, but park those thoughts

while we ask a local property expert

what he thinks of this house that came guided at £35,000 plus

and the area it's in.

The area is very convenient for the town centre.

Literally, a couple of minutes walk away.

Quite a lot of the area will be buy-to-let investor properties.

Not too much owner-occupied around here,

but they are very good to let out.

So, that's very good news for any prospective buyer,

but what are his impressions of the house?

First impressions of the property, quite a lot of work required.

Whoever purchases it, they are going to have a full hit, really.

Kitchens, bathrooms, rewire, double glazing is required.

Heating's required. An extensive course of work required, really.

Once renovated, our expert reckoned the house

could achieve around £80,000 if it was put up for sale.

And as much as £450 per calendar month if rented.

Keeping in mind that guide price of £35,000

and someone could make a tidy little profit on this project.

Well, yes, there's work to be done,

but I think this property has a lot to offer.

Especially around that guide price.

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

It's a corner terraced house.

Two reception rooms, two bedrooms, bathroom upstairs, garage.

What's this? 30 to start here?

30 bid. Thank you.

At £30,000, 31, took it there. At 31. 32. 33. 34. 35.

36. 37. 38. 39. 40.

Shaking his head. 40 right in the middle. At £40,000.

41 anywhere else? If not, I'm selling at...

Another bidder.

You're not all together, are you? No.

41. 42. 43. 44.

45.

46? 46. 46.

47, sir? No.

The bid's at 46 in the middle. No mistakes.

At £46,000, then, all done?

New bidder. 47.

48? 48. 49? 49. 50.

50 and a half. 51? 51.

Half? Two? Half?

No. At 52 and a half. Standing back there.

52,500. All done now.

53, anywhere else? If not, 52,500 once.

52,500, back in. 53.

Shaking his head. So it's with you still. 53. Another 500. If not,

52 once, 53 twice, third and final time. At £53,000...

You bought it, sir. Well done.

No wonder he's punching the air after that exhausting contest.

He is Guibert, a restaurateur who also dabbles in property.

I met up with him, his adoptive mother Pat

and daughter Hope, to find out what his plans are.

-Pat, Guibert, lovely to meet you both.

-Nice to meet you too.

-Congratulations.

-Thank you.

-Interesting property.

-You think so?

-Yeah, I do.

-And with all your experience?

-Yes!

-Oh, great.

I like it. I think it's really good. Loads of potential.

Tell me why you wanted to buy it.

It's in town centre. It's got a garage with it. So, parking.

Erm, and it came to a reasonable price.

-And prices are going up in this part of the area.

-Right.

-Tell me about you two, then.

-We were in Buckinghamshire.

And we had a restaurant in Beaconsfield.

-From Beaconsfield, back to Stoke-on-Trent.

-I moved away

-from Beaconsfield to here, last year.

-Did you?

-Yeah.

-What attracted you back to Stoke?

-Guibert and his family.

-Right, OK.

And how have you found the transition back to Stoke?

Actually, very well. I was worried, but it has gone very well indeed.

-And are you going to be involved in this project?

-Yes, financially,

and, I hope, physically.

-And what do you do when you are not doing property?

-I run a restaurant.

-That's my first profession.

-Right. Are you a chef? Or you run it?

No, I just run it and tell other people what to do.

So, what's the plan? Why have you bought it?

-Have you bought it to sell it?

-No.

-No.

-To rent it.

-Right.

To completely gut the inside and start again.

And then rental property around here is in demand

because the university, for one thing, and also

I think he needs something to do during the day.

-Not enough in the restaurant.

-Right.

-So, Mum's stepping in and cracking the whip.

-Yes.

Well, it looks like Guibert has his work cut out for him on this project.

I don't know where he's going to find the energy to develop

this place and run his restaurant.

But mother knows best.

# Always be kind to your mother. #

So, talk me through exactly what you're going to do to sort it out.

Well, strip it to the bare bones.

Because it's pointless doing a patch here, a patch there. Make it modern.

And, erm, something durable lasts, simple, easy to maintain.

Right. One radical thought I had was knocking the garage down

-and maybe there is enough space...

-Extension?

-Well, no, no, no.

Maybe there's enough space for a little building plot there?

You see, Mum, you've twigged on to that, haven't you?

-Oh, of course.

-Yeah!

-So, what's the budget for the work?

-I think 20,000.

-But I don't know about...

-I'd like to do it within 15.

It's quite generous. 15's doable, I would say.

One of the nice things about running a restaurant, you get to meet a lot of nice people.

When you look after them, when it's your time, they look after you.

OK, so you're going to call in some friends.

-You've no idea what you will get for a curry.

-Mate's rates!

-We'll call it curry rates.

-And what about the timescale?

-I'm looking about three months. Maximum.

-I double it.

You double it? You see, you're very practical, aren't you? Well...

If you work for architects for 35 years, and you've had

builders ringing up every day saying, "Oh, next week, next week."

-Well, congratulations.

-Thank you very much.

-Good luck to you both.

-Lovely to meet you.

-Thank you very much.

Look forward to seeing how it turns out.

Well, Pat and Guibert seem to make a great team

and I think they have got a lovely property here.

Lots of work to be done, lots of curry rates to be called in.

How will they get on? You can find out later.

This is Thornton Heath in the London Borough of Croydon.

It's a couple of miles from Croydon town centre

and just 24 minutes by train to central London.

Once an area known for its clock making and bell foundry,

its tranquil surroundings suddenly got my property senses tingling.

A 15-minute brisk walk from the train station,

and you're on this attractive street lined with nice period houses.

Now, the property I'm here to see is this.

It's a three-bedroom garden flat, which had a guide price of £100,000.

I'm going to take a look inside.

Well, someone's done a clear-out already, by the looks of things.

Let's hope that means less work to do inside.

Oh! Well, straightaway, I can see this is a serious renovation job.

Look, they've got peeling wallpaper everywhere.

A bit of money needs spending here.

Although, I do like the space it offers. Lovely big rooms.

The windows are fantastic. Nice bit of cornicing, as well.

Second room here, I would say this is another bedroom.

It's fantastic knowing that these flats were built like this.

They're purpose-built with period features still in mind.

You know, so much nicer than a pinched conversion.

Offers a lot of space. Again, you've got a lovely big window over there.

So far, so good. I really like it.

So, at the back of the property you've got a little kid's room in there.

And this is the sitting room.

It's nice and quiet, actually. And not a bad space.

But if you don't want three bedrooms,

I suppose you could always take this wall out

and create a very nice big space for a family, perhaps.

Although, I think by not having the third bedroom, that might

damage the value of the property.

And, of course, for renters, they do prefer more rooms.

We've got the kitchen right at the back. Yes, it's in a state.

You would need to completely think about redoing this,

changing all the units.

But, disappointingly, there's the bathroom.

Look, just tacked on at the side here. Doesn't really work for me.

I think I would create an independent access round here,

put a door through here. Knock a big hole through here and block this up.

So you could enter the bathroom through from this room.

And over here, we've got a strange sort of lean-to.

This is all rather strange.

This is nothing other really than just a storage space, a bike store.

But it's almost plonked right in the middle of the garden.

I'm just thinking, if you took it away,

you would have so much more space.

It doesn't really work as it is at the moment.

And at the other end is this door

leading out to just a redundant yard.

It is not being used for anything, it doesn't serve a purpose at all.

Apply for planning permission

and just put something a little more useful than that in its place.

# You'd better go now

# Go now

# Go now

# Go now. #

This lean-to desperately needs replacing with a preferably

bigger and better and more practical extension.

You could then extend the kitchen into it and, if it was extended

down the side as well, you could open up the dining room area too.

But of course, in order to do all of that you need to chat to

the freeholder to get permission.

And while you're at it, you might as well discuss

an extension of the lease, which currently has only 71 years left

to run, which will significantly affect its resale value.

But what does a local estate agent make of this three-bedroom

garden flat that came guided at £100,000?

This is a good size three-bedroom maisonette.

Ground floor, which is good.

Direct access to the garden. It needs a lot of work.

It needs completely uplifting and there is the scope to extend

the kitchen sideways and make it just that much more spacious.

Undoubtedly, there's a lot of practical changes that can be carried out.

'But what about that relatively short lease? Is that worth extending?'

Normally, extending the lease is a good idea and on a three-bedroom

property like this it could be anything from 15,000 to 20,000.

But that would definitely add saleability in the future

and it would add that extra value to the property as well.

'Mortgage companies can get nervous

'when a lease has less than 70 years to run

'so undoubtedly it would be worth that extra spend

'to make your investment viable for the resale market.

'But with what was a £100,000 plus guide price

'and a potential 20 grand spend,

'on getting that lease extended on top of a full refurbishment,

'would you see any return at all on your investment?'

In today's marketplace, the property with an extended lease and once fully

renovated, the property could be marketed

at around £195,000 to £200,000.

'Potentially, this could yield quite a decent return on the resale market.

'But how would it fare as a rental property?'

On the rental market, we would market this property

at around £1,000 per calendar month.

'It sounds like this property could be a potentially lucrative

'venture and lots of options, with extending the kitchen

'and extending the lease too.

'But whatever you decide, one thing is for sure,

'it does need a total renovation.

'So let's find out who bought it when it went under the hammer.'

Lot 96.

A four-room garden flat in need of updating.

Who would like to give me a start on this? Are you ready? 100, I've got.

Thank you. £100,000.

101. Thank you. 101. 102. 103. 103. 104.

104. 105.

105. 106.

107. 107 I've got 107. 108.

109.

'This turned out to be a popular lot

'and we rejoin the bidding at £140,000.'

140. Thank you. 141.

142.

142. 143.

143. 144. 144?

Yes, 144. 145.

146.

146. 147.

148.

149.

150 at the back.

150. OK. 151?

150 for the first, 150 for the second,

150 for the third and final time.

Are we all done? Sold for 150 at the back of the room. Well done.

'For £50,000 above the guide price the winning bidder was Aubrey,

'who was bidding on behalf of his friend Teresa.

'I met them both at the flat to find out their plans for it.'

-Congratulations. Now, whose is the flat?

-The flat is mine.

-But you were the one bidding on auction day.

-That's right.

-Did you see it before the auction?

-I didn't. Aubrey did.

-So you trusted in your friend here?

-I did.

He's done this type of work before

and I knew if he said it was going to be a good project, I knew it would be.

-When you saw this for the first time, where you really happy?

-I was.

I walked in. I know there is work to be done here but I could see through that.

It's the high ceilings and the size of the rooms

and the fact it is a three-bedroom and what can be done with the flat.

I just love it.

'And it's not just the flat she loves, it's the location too.

'Having just had her job relocated from Crawley where she previously

'lived to Croydon, this move will cut her journey time from over an hour to just ten minutes.

'That's fantastic!

So Aubrey, what are you going to do to really turn this place around?

Basically, just revamp it.

Plaster walls that need to be plastered

and basically make the kitchen bigger.

Let's talk about the kitchen because it could be a fabulous kitchen.

But the lean-to is not fabulous. You need to put a permanent structure there.

But it does sort of sit in the middle of the garden, doesn't it?

The way the lean-to is set up,

the kitchen can be put in there quite easily.

And the little patio in the front, you can use that like a little dining area.

You don't really want to go into the grass.

Obviously, the garden is very small but you can't expect a big thing.

You have got a big flat. Small garden.

Nice and cute for a small person.

For a small person, nice and cute. Perfect!

So you have got lots of space here. You've got three bedrooms.

It really is a little bonus you've got the third bedroom.

But imagine if you took away that wall,

because it is just a partition wall, you could have what I think

it originally was, a very big, wonderful open plan reception room.

I am going to ask Aubrey to make that little bedroom a little bit bigger

and pull it out a bit more into the dining room area

because he's going to knock that wall into the kitchen and that will open up all that space.

So I will have more space with the kitchen and diner and I won't

miss that little bit that's going to make that little bedroom bigger.

So you almost kind of have three double bedrooms.

It really is a cracking flat. You did well, Aubrey.

-He did well, the boy.

-He certainly did.

So what sort of money are you looking at spending here?

-I'd say between 10,000 and 15,000.

-Are you happy with that?

-Yes, I am.

-Do you think that is a doable fee?

-You've got to change all the windows, you've got a bathroom, a kitchen.

-Yes.

But knowing the right people, you can actually do it a lot cheaper.

So how do you know the right people?

In my industry, I do plumbing and heating, so I meet different trades.

It's time for me to call my favours in.

# Call me

# Call me

# Call me. #

'Aubrey is hoping that by calling in favours he will be able to turn the flat around in just a month.

'But of course it isn't just the fabric of the flat that needs

'sorting out to maximise its value.'

What about the 71-year lease?

I'm going to reapply for a new lease.

-But how much money is that going to cost you?

-I don't know.

I think it's between 6,000 and 10,000.

So you've got to add that on to the costs of the property

and then the work that you've got to do.

-Yes.

-Hence why we are only spending between 10 and 15.

What are you most looking forward to?

-Just cracking on. Getting the hammer out.

-Going for it!

-Going for it.

-What time do you finish work?

-Three o'clock.

So where are you going to be at 3:30 every day?

-3:20, I will be here every day.

-Is she going to be driving you mad?

-How is that going to work?

-I will be here a lot earlier than that!

-And you'll be leaving by 3:20!

-We're going to do shift work!

Guys, I can't wait to see the flat when it's finished.

Congratulations and I hope it all turns out well.

Well, I think everyone needs to be mates with the tradesman with loads of friends!

Teresa has struck lucky with Aubrey.

I am really intrigued, though, to see what happens

and if they manage it for 10,000-15,000.

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

Coming up, whoever owns this little flat in Warrington,

there is no chance they will miss the boat.

That over there is the Manchester Ship Canal. It is still used today.

'And for Teresa, has her ship finally come sailing in?'

I love it. It's nice to come home from work and have my own front door

and I can have friends around when I want to.

'It's back now to Hanley in Stoke-on-Trent and this Victorian redbrick corner house

'that was bought at auction for £53,000 by Guibert and his adoptive mother, Pat.

'Guibert was born in Stoke, but lived for ten years in Beaconsfield

'in Buckinghamshire where he bought several properties

'and opened a restaurant.

'And now he has returned to Stoke

'he has the perfect recipe for combining the two interests.'

The nice thing about running a restaurant,

you get to meet a lot of nice people.

When you look after them, when it is your time, they'll look after you.

OK. So you're going to call in some friends?

-You have no idea what you'll get for curry!

-Mate's rates.

We will call it curry rates!

'You could say he is CURRYING favour with his clients!

'And while the interior of the house was an acquired taste,

'Guibert and Pat were going to spice up this end terrace

'and renovate the property in three to six months

'and on a budget of £15,000 to £20,000.

'When we returned just over nine months later,

'a new front door and new windows had been installed.

'But had the interior hit the spot?'

'Well, they certainly did.

'From top to bottom, wall to wall,

'the house had been replastered, rewired and replumbed.

'With new doors, flooring and windows and with the neutral tones

'of the floor and door giving the reception rooms oomph and character.

'And while the old kitchen may have been blinding at first,

'the new units and worktops are definitely a sight for sore eyes.

'Guibert and Pat have come again with his daughter

'and her granddaughter, Hope, and they have certainly given

'this house some for the future, especially in the kitchen.'

This is a very simple, basic kitchen.

Straightforward, neat, clean, practical.

And basically it didn't take that long.

The reason being because there isn't any corners.

It is a straight line and that was quite easy.

'Glad to hear it, Guibert.

'The decor of the two bedrooms follow the same format as downstairs.

'Again, the wood effect makes these rooms warm and inviting.

'And do you remember the bathroom that made a splash for all the wrong reasons?

'Well, that has been remedied with a new suite and tiling.

'But getting it to this much improved state meant having a big clear out.'

It had been empty for seven years.

The accumulation of rubbish left behind plus the devastation

we caused taking all the windows out, the doors,

the plaster off the walls, the ceilings down.

So skips were outside almost permanently.

'Clearing out the garden also helped fill those skips.

'And as for the suggestion of turning the garage into a building plot,

'Guibert did approach the planning office but they felt any application would be unsuccessful

'and any development here would not be in keeping with the area.

'So Guibert has dropped the idea.

'But as for the main renovation, well, that went smoothly and thanks to some helping hands.'

A couple of my friends did help me out with some plastering and painting.

A friend of mine did the electrical work

for virtually half the cost of what it should have been.

In return, I treated his family in the restaurant. So it does work.

It is one of the advantages of having a restaurant.

You get to know a lot of nice people.

'Despite returning just over nine months later,

'all the work here was done in a total of just nine weeks.

'This delay, though, in getting the house fixed up was down to

'Guibert having to deal with the passing away of his father.'

Unfortunately, I spent six months beside my father.

He had cancer and he passed away.

So I had to take my father to Bangladesh for the burial.

Being an Asian, it is a cultural thing

that you believe your father held your hand in your first step.

And when he is old, you carry his last step.

It is the circle of life.

I really am so proud because he had a lot of worry and sadness

and all this had to go on hold and then you come back

and a little bit of the enthusiasm has gone from the auction.

But now, you get into it and it's amazing.

I think he has done an incredible job.

'With the help of friends,

'Guibert and Pat were able to get the work done for £12,000,

'well within their original budget of 15,000 to 20,000.

'Add that to the purchase price of £53,000,

'and their total outlay here is £65,000.

'So what is the next step for the house?'

We haven't decided fully which one we're going to do.

If we get the right money we're looking for, we would sell.

If the value is slightly less, then we would wait

and see what the outcome is.

Well, maybe two local estate agents can help Guibert and Pat decide

which might be the best way of making

their £65,000 investment work.

I'm very impressed with the property.

It is of an excellent size, being on the corner.

And the developer has done an excellent job in updating it.

The main selling points of the property are the size,

the presentation - whoever occupies it can move straight in -

and also the location, with the proximity to the city centre.

Having a look around the property,

it has been done to a reasonable standard.

Obviously, new kitchen, new bathroom. It's neutral and fresh

and pretty much ready to move straight into.

So, bearing in mind their spend of £65,000, what could

Guibert and Pat achieve if they sell the house?

I would anticipate a resale value in the region of £75,000.

I would anticipate the resale value to be in the region of £75,000.

The valuation is lower, we were expecting it to be at least 80-plus.

Erm... So, that is

a bit of a shock because we will probably put it on the market for 80.

85, for an offer of 80.

That is what we would do.

If they were to sell it for £80,000, then the pair could get a pre-tax

profit of around £15,000, but will the rental returns appeal to them?

I would anticipate a rental income

in the region of £400 per calendar month.

If we were to let it out,

I would be looking in the region of £425 per calendar month.

Yeah, it's not far off. We...

If we were to rent it out, we would be looking at at least 450.

If the pair get that rental return of £450 per calendar month,

then they could get a healthy annual yield of just over 8%.

Despite the possible resale values not meeting up to their expectations,

the pair are still aiming to try their luck reselling, and it

certainly hasn't put them off buying again at auction in the future.

Although we haven't made as much as I thought I would,

erm...but we certainly haven't made a loss,

so it's not bad for a start.

Yeah, we would certainly look at other properties.

DION: And it is time for me to look at another property now,

here in the village of Latchford, near Warrington.

And not only does it have good road and rail links, you can

even travel here by boat.

The village lies between the River Mersey

and the Manchester Ship Canal, and the local locks are still in use.

Just a stone's throw away from the Latchford Railway Viaduct is

the property I'm here to see.

It is a two-bed flat in a relatively modern development.

It is at a guide price of £70,000.

Let's have a look.

This block was built in 2007 and, with plenty of parking,

communal gardens, a security entrance and set-back from the road,

it all looks pretty good to me.

One downside is that there is no lift, but our flat is only on

the first floor, so you don't have to be an ex-footballer to tackle those.

Straight into the hallway.

There is a nice big room here

with quite a large window there,

bringing in lots of light in. Maybe change the carpets,

they look a little bit tired.

In here you have a bit of cupboard space, which is

quite rare in a flat this size.

It is always struggling for cupboard space.

Bedroom too. Again the carpet is not great in that room.

Spacious bathroom, big enough.

And then into the main room here, which is the lounge-kitchen area.

And from what I can see so far,

doesn't look like there needs

to be a lot done in here. The kitchen looks relatively new.

The hob looks nice and clean.

Carpets are not great in here either, so carpet throughout

and a bit of paint as well on the walls, just to freshen it up.

But it just goes to show if you do a bit of research, have a look

around, you can find those little gems that you can turn around

very quickly. This is definitely one of them.

Yes, all this is really suffering from is a bit of wear and tear.

And with a little bit of love and attention, it'll be as good as new.

# Make me shine

# Make me shine... #

Once you've made it shiny and bright, you can step back

and admire the view.

It is not very often you can look out of your flat

and get a bit of the Northwest's industrial heritage,

and that over there is the Manchester Ship Canal.

And every now and again you might be lucky enough to spot a ship

going up or down that, because it is still used today.

# Ship ahoy, ship ahoy

# Ship ahoy, ship ahoy... #

The 36 miles on the Manchester Ship Canal links Manchester to

the Irish Sea and is regularly used by over 8,000

container ships each year.

Well, the view may come free,

but one thing that doesn't with this flat is that communal service charge.

Having lived in an apartment just like this one during my playing days,

I did have to pay my communal charges.

It wasn't that much, but it was well worth it,

so if you do take on something like this, factor it into your budget.

And the service charge currently for this flat is £600 per year,

with an additional ground rent fee of £250 per annum.

In all, they're not huge sums

but it does add up to another £70 per month in costs.

What does a local estate agent think about this flat, which comes

guided at £70,000 plus?

It is an attractive looking block.

Pleasant location, close to the Ship Canal.

Communal areas are a little bit tired, a little bit dated,

but overall, a very strong first impression.

Well, that is all fine and dandy, but minimal changes can mean

there's only a small uplift in value that can be achieved,

so is that the case for this flat that was guided at £70,000?

With some improvement, I'd expect a price in the region of £90,000-£95,000.

OK, so perhaps there is a decent profit to be had here.

And what about its rental potential?

I'd expect a rental price in the region of £550-£575

per calendar month.

There's not a lot that needs doing to this flat,

maybe some new carpet, lick of paint, but I think it's ready to go.

Let's see who was lucky enough to spot it when it went under the hammer.

And with the lot coming up near the end of the sale,

the auction room was fairly quiet.

A chance then for someone to pick up a bargain.

Lot 32.

This is the apartment. Comprises an entrance hall,

lounge-diner, kitchen, two bedrooms, bathroom, gas,

central heating, double glazing fitted. 70 is your guide.

Start me at 60, let's get it going.

50, then. Need a bid. 50 I've got.

At £50,000. In twos, maybe.

52, anyone? 52 here. 54.

56. 58. 60.

60 I've got. 62. Thank you, sir.

62 I'm bid. 64.

66.

66 I'm bid.

68.

68 I'm bid. 70.

70 I'm bid. 72.

71, I'll take it. 72, sir.

73. 74.

74, you are back in. 75.

74.5, I'll take it. 75.

Half. No. Here at 75.

At £75,000, are we done?

On the aisle, then. At £75,000, for the first time,

and the second time, are you sure?

Selling at, then, at £75,000.

You, sir, well done.

And so for £75,000,

the successful bidder for the two- bed, first-floor flat in Latchford

was Bob.

Bob has a house ten minutes from the flat

but spends a lot of the year in Italy.

So I was intrigued to know what he had planned for it.

-Bob, nice to meet you, sir.

-Nice to meet you.

-Congratulations.

-Thank you.

-Tell us about what the auction was like for you.

Well, a little bit nervous when I first went.

It is a new experience, didn't know what expect.

I asked the chap there what they would do.

I was concerned of making a strange movement and making a bid.

-And they take the money off you.

-Scratch my nose, or whatever, and I have just bid five grand extra.

But I knew I wasn't going to go more than 75. And it just happened.

-You did well, didn't you, fell on your feet there.

-But it is just what I wanted.

I wanted something I could, basically, in and out, really.

-And, er...

-Judging by what I've seen, it is one of them, isn't it?

-It is just a quick hoover around...

-It is, really.

A lick of paint.

You know, new carpets and that's the end of it. And then we'll get a tenant in.

-And that's what your plan is, to rent it out?

-Straightaway? Yes.

Because basically, I work for myself, I have done for a number of years.

-I've never been in a position where I've had spare cash.

-OK.

I've either been getting divorced, paying those off,

or I did go bankrupt in the early '90s

-and I had to recover from that.

-Yeah, yeah.

-And my business has always needed the money.

-OK.

And this is the first time ever I've had some spare cash.

Bob used to work as a supplier in a builders merchants

but has never actually got his hands dirty.

He did get involved in a new-build project with a business partner

and kept three of those properties. He also now has others.

Myself and a friend of mine built five apartments in Littleborough,

which is north of Rochdale. A nice little area, similar size to these.

And we built those new.

So what I basically done is I've remortgaged those on a buy-to-let

and then bought this for cash.

And then I bought another house in Lymm, just up the road here,

and rented out the house I was in before, the flat,

so this will be the fifth and we are about to get a sixth.

This is just your bit of a pastime or you've got a bit of cash?

-Pension, pension. Something to leave to the children.

-What's your job?

What I do is I...I live in Italy, been there 20 years.

I can tell by the way you dress, there is

-a bit of Italian there, isn't there?

-That's right.

And I went there with no job, actually.

I had lost my business, and I went there to...

just as to holiday home, just to...

While I was there, I was out of work.

I started looking around markets and various things and, actually,

eventually started to buy designer clothing

from warehouses, etc.

And since then we've built up quite a good little business,

supplying all independents in the UK

and abroad with...

top brands of clothing that they can't get.

# They seek him here

# They seek him there

# His clothes are loud

# But never square

# It will make or break him

# So he's got to buy the best

# Cos he's a dedicated

# Follower of fashion...#

And having been running his business for the last 20 years,

Bob is keen to build up a pension pot

and has decided that investing in UK properties would be the best option.

And so he hopes to build up a portfolio of around ten rental properties.

# He's a dedicated

# Follower of fashion... #

-Not a lot to be done in here.

-No, not at all. That's what I like about it.

In and out. Carpets next week and we'll want someone in.

What are you going to do? How much are you going to spend on it?

-A couple of grand.

-A couple of thousand pounds?

-That's all.

-Should be enough?

-Yes.

And what's that money going to pay for?

-The carpets and a lick of paint.

-And that's it?

-Yes.

-And how long will it take you?

-About a week or two, I suppose.

THEY LAUGH

I'm no expert, Dion, but I think a couple of weeks.

Are you going to get the experts in to come and do it in and out,

-sharpish?

-Yes, I've got a pal who is a decorator. He's just done my home.

-This is just a quick fix, isn't it?

-Yes.

-Keep it simple.

-Exactly.

-Yeah.

How do you manage? If you live in Italy and all your property is here,

-who keeps an eye on it for you?

-Well, I do it through agents.

They take a percentage and look after it because I don't have time.

If you need an electrician, a plumber, they look after that.

-Bob, I wish you all the best, then.

-Thank you, Dion.

-You'll get it sorted, mate. Good man, good luck.

-Thank you.

What about Bob, hey? How cool is he?

All those togs are very, very smart.

He has given himself a two-grand budget.

Put some paint on the walls, new carpets, done, ready for rent.

Or will it be? You can find out later on in the programme.

We've seen how one developer got on, but let's have a look at the other two.

Well, time has passed, weeks and months, in fact.

Yes, I wonder how they got on. Should we check it out? Let's.

Well, it is now back to South London and the suburb of Thornton Heath,

where earlier we saw this ground floor, three-bedroom garden flat.

Tired and shabby and dead on its feet, but that didn't put off the new

owner Teresa, who got it at auction for 150,000.

But it wasn't Teresa who did the bidding,

it was her friend Aubrey who viewed it,

and he advised Teresa to go for it.

-When you saw this for the first time, were you really happy?

-I was.

I walked in... I know there is work to be done here but I can see through that.

You know, it is the high ceilings and the size of the rooms

and the fact it is a three-bedroom.

And what can be done with the flats. Love it.

Good, positive thinking from Teresa there, because with

a 15-grand budget and a four-week turnaround, there was a lot

that needed doing here, ranging from dealing with the lean-to, changing

that dated kitchen and bathroom and extending a 71-year-old lease.

Even with Aubrey, who was a heating engineer, calling on friends,

that four-week schedule was going to be pushing it.

But it was a year and eight months later when we returned

and, with new windows and front door, the flat does look smarter.

But will the inside be worth that long wait?

The cramped kitchen and shabby lean-to have given way to a sparkling new

open-plan kitchen living area.

Contemporary and stylish,

it has absolutely given this place a new lease of life.

Aubrey was away on holiday, but Teresa took us through the changes here.

Well, we knocked the wall town that was here. There was a wall here.

I put a entrance through.

Extended the kitchen. And it is lovely to have the natural light coming through.

And I wanted the white cupboards with the black tiles,

making it nice and clean and sharp.

Door to the bathroom was here.

And we've closed that up and extended it a little bit,

put the vanity unit in the bathroom and put the door through in the lounge.

I love this room, being in here, this is my favourite room in the house.

Because you've got the natural light in the daytime and it is quiet at night.

And it is so easy to relax and chill out in the evening.

The rest of the flat looks just as comfortable,

ranging from the renovated front bedroom...

..the middle bedroom...and newly enlarged

third bedroom.

The stud wall has been moved further into the original

sitting room space, but that doesn't feel any smaller

because of that extended kitchen area.

I think it all looks really nice and homely.

I moved in here five months ago.

And I love it. It is nice to come home from work

and have my own front door and have friends round when I want to.

It is nice.

It certainly is a great-looking chill-out area,

but if Teresa wants some fresh air,

she could go through the patio doors into the new courtyard out back.

Although that rear garden is also the ideal place to catch some sun.

Teresa got planning permission for the new extension,

and work started with the entire flat being re-plastered

and rewired and Aubrey getting stuck in.

Aubrey has played a big role in the property.

If it wasn't for Aubrey, I wouldn't have got the place. He saw the potential.

He has replaced the bathroom, replaced all the central heating.

He did the stonework in the garden and he was on hand doing jobs

when the other guys were here working.

And Teresa also got her own hands dirty by helping to sand

and varnish the original floorboards and doing some of the decorating.

Altogether it's an amazing change from the tired flat we

saw 20 months ago.

Oh, yes, Teresa, and, er, that timescale?

We estimated that the work would take four weeks.

But I did think at the time that was a big, big job

because everything had to be done here.

In the end, it took 14 months.

Getting the workmen to focus on her renovation

and not moving on to other jobs proved to be the main hold-up,

but finally Teresa is settled in her new home.

Hopefully her £15,000 budget didn't suffer the same

mishaps as the timescale.

We haven't spent more than 15,000,

and that's with the help of Aubrey and friends of his,

who've done the work and, you know, got everything cost price.

Add it to her purchase price of 150,000,

and Teresa's total spend here

is £165,000.

While Teresa is very happy in her new home,

she also realises that should she ever decide to sell,

extending the lease, which had only 71 years left,

is vital to making the flat attractive to buyers and increasing its value.

I've just made some enquiries about extending the lease.

Approximately £10,000-£12,000 is what people are paying at the moment

to extend their leases, so there won't be a problem

if I go to sell the place, the lease will be extended.

But having spent £165,000 on her new home,

we asked along two local estate agents to find out what

the local property market will think of Teresa's new investment.

Starting off with the agent who saw the flat 20 months ago,

before the changes.

Well, it truly is an amazing transformation.

The last time I was here, it was a complete wreck

and the vendor's done very well on this one.

The layout of the property works very, very well.

You don't expect the property to open out at the back the way it does.

The extension really does help give a lot of space and

a lot of light to the back of the property.

I think it works extremely well and, in this area,

it's what buyers really want.

The agents like the flat

but what could it achieve on the resale market?

Remember, Teresa has so far spent around £165,000

and reckons extending the lease would set her back 10-12 grand.

That would make a total outlay of up to 177,000.

So what sort of returns could Teresa make here?

With an extended lease,

we'd put this property on the market at £280,000.

The resale value of this property with a long lease,

extended to approximately 125 years,

would probably be in the region of £280,000-£285,000.

That is superb, I can't believe that. That's excellent, excellent.

If Teresa sold it for either of those two valuations,

she could make a possible pre-tax profit of £103,000-£108,000.

No wonder she's pleased.

But what sort of rental income could she expect?

A property like would rent for approximately £1,250 per calendar month.

On the rental market, we'd market this property

at £1,250 per calendar month.

Gosh, that's amazing, that is amazing.

That's a lot more than I would expect.

If Teresa let the flat out based on the £165,000 she's spent so far,

she could expect an excellent annual yield of around 9%.

Despite those great potential returns,

Teresa has no plans to move, and looking at what she's

-achieved with this place, it's easy to see why.

-I feel comfortable here.

I love coming home from work, shutting my door.

It's great to have friends come round at weekends,

I cook meals for my friends, they can stay over. It's good.

It's a nice feeling and I get a nice feeling when I come in.

Situated next to the Manchester Ship Canal

and just south of Warrington in Cheshire,

is the village of Latchford.

And it was here we saw a two-bed first-floor flat that was

built in 2007 and, quite frankly,

was suffering from nothing more than a bit of wear and tear.

But it just goes to show, if you do a bit of research, have a look around,

you can find those little gems that you can turn around very quickly.

This is definitely one of them.

And this potential rough diamond certainly had Italian-based

fashion importer Bob's eyes sparkling when he saw it.

It's just what I wanted and something, basically,

-in and out, really.

-Exactly.

So he snapped it up for £75,000 at auction as a part of a growing

property portfolio.

-I've never been in a position where I've had spare cash.

-OK.

I've either been getting divorced,

paying those off, or I did go bankrupt in the early '90s

and had to recover from that, and my business has always needed

the money and this is the first time ever I've had some spare cash.

This was to be his sixth rental property

and they don't come any more straightforward than this.

With a budget of no more than £2,000, Bob was hoping to give this flat

a quick makeover in less than two weeks.

And now, just nine days later, we're back to check on Bob's progress.

# If you don't believe I'm leaving

# Just count the days that I'm gone

# If you don't believe I'm leaving

# Just count the days that I'm gone.. #

I've had to do it in record time, in a week.

I've got carpets in and a lick of paint.

Put some fresh blinds up.

That's the only thing I need to do, but I'm going abroad tomorrow

so I'll let the agents deal with the last few bits.

# If you don't believe I'm leaving

# Just count the days that I'm gone... #

Yep, just one week. Quite frankly, that's all it needed.

With no work required to the kitchen or bathrooms,

the flat is now completely ready to rent out.

We've already had a viewing, they're coming back tomorrow, Saturday.

A young couple with a mother. We're hopeful that they're going

to take it but I'm pretty confident, within a month, we'll have it let.

It's been a breeze, hasn't it?

A lick of paint, new carpet, tenant, job done.

And on to the next one. Is that the plan?

My strategy is very simple.

Basically, I want, off these properties, to get a small income,

so I don't really have to live out of my main business, so I can

keep generating profits with that. And obviously it's a

form of pension. I'm not getting any younger and obviously it's

something I can leave behind once I go, to the family.

But does this work as an investment?

Because along with the £75,000 purchase price, Bob reckons

a quick makeover has cost him around that proposed £2,000 budget.

So he's got £77,000 tied up in this place.

What did two local estate agents think about this flat?

We've had this on the market previously

and the property was in good order but it's been made better

by having it repainted, new carpets and generally a good clean.

First impressions of the property, it's a great apartment

with water views, nice finish.

Very soon could make the perfect first-time buyer property.

I think this being a top-floor apartment,

having the loft access, as well, which is excellent for storage,

separates the property from other similar apartments in the area.

This is a new-build development,

lots of apartment blocks springing up.

Certainly very good for rental

and would certainly make a very good investment property.

Bob was in the process of building a rental portfolio,

so isn't currently planning to sell the flat on,

but has he invested his £77,000 wisely?

For resale purposes, in its current condition,

the property's worth £95,000.

If we were putting this property on to the market,

we'll be looking at a figure of around £100,000.

95,000 to 100,000, actually, would almost convince me

to change my strategy on this, because it's

nearly 20,000 profit for doing nothing in a matter of a month.

So if I could do this every month, you'd be laughing, wouldn't you?

It's not going to tempt me away.

I'm still going to stand on my original plans of renting,

but, yeah, delighted with those figures, absolutely delighted.

And so he should be because as he said,

those values could see a potential pre-tax profit between £18,000-£23,000

for a property he bought only six weeks ago and needed minimal work.

But what about those all-important rental figures?

For rental purposes, the property would be worth between £500

and £525 per calendar month.

In my opinion, this property would be renting for a figure

of £595 per calendar month.

Again, they are higher than I expected

because I've put this on at 510 because I want to move it quickly.

Well, if he does get that hoped-for £510 per calendar month,

then Bob would see the flat generate a rental yield of just below 8%.

And with six properties already bought and rented out, his portfolio

is coming along nicely. So is his aim to still get a few more?

Well, we're just completing now on a property

overlooking the Mersey in Birkenhead, and that's again going to be

a rental and we'll just continue to look around.

I rather like this Latchford area.

I think it could be quite up-and-coming, so if there is

anything in this area, I think I might continue to look here.

# When I get with you

# There's no place I'd rather be... #

So when Bob isn't in his Italian property in Tuscany,

it seems Latchford might be the place for him.

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

We'll have more properties for you next time here on

Homes Under The Hammer.

So join us to see what happens when the hammer comes down.

-Goodbye.

-Goodbye.