Episode 80 Homes Under the Hammer

Hello, and welcome to the show. Now, when you're investing in property,

whether it's your first time or you've lost count of

how many properties you've bought, you must always do your research.

Yeah. The advice is always the same. There's always something to learn.

You don't want any nasty surprises.

Yep. Whether you are a first timer, or a seasoned pro,

now could be the right time to buy your home under the hammer.

Well, there are many factors at play to decide

whether you make profit from your property, or not.

Yeah. Sometimes, you're not in control of all those factors.

Sometimes, you just need that little bit of luck.

So, were today's buyers lucky or not? Let's find out.

It's professional developers day.

You can't stop Sue in Burton-on-Trent.

I bought two on the same day.

-Andy, how are you keeping control of her?

-I just let her go.

In Maida Vale, London,

the client has a tight timescale at this one-bed flat.

Four to five weeks. That's the timescale.

And there was a surprise in store for the new owner

of this bungalow in Chesterton, Newcastle-Under-Lyme.

Dad didn't know he was buying this house.

-He'd never seen it.

-Oh, right.

All these properties were bought at auction.

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

when these homes went under the hammer.

You've bought it. Well done.

Burton-on-Trent, in East Staffordshire,

is a busy market town that grew up around Burton Abbey.

But for me, that's not the main attraction of the town.

Being on the Trent means that the town has some

really great river walks, and can you imagine on a day like today?

You've got your dog and maybe an ice cream.

To me, that's perfection.

The superb water quality in Burton-on-Trent made it

the epicentre of the county's booming industry.

There's another product that began its life here, in 1902,

but I'd better not name it, as the BBC doesn't carry advertising.

What I can say is people either love it or hate it

on their toast in the morning.

Now, the house I'm here to see is just a short walk away

from that river walk along the Trent.

So, this house has already got something going for it.

And here it is - it's a traditional two-bed property,

with a guide price of £56,000. It looks in great condition,

but, personally, I'd want to change that front door.

I hope it's not a sign of things to come.

# Green door What's that secret you're keeping? #

OK.

So, the door is misleading. Lots of space on show, open plan.

In the front room, a nice big window.

It all looks in really good condition. You've got a fireplace.

The television would've gone in the corner.

And, judging by the carpet marks, the sofa would've been there.

You've got a table.

That would've been where they watched the television.

Into the second reception room,

which would've been a dining room, I'm pretty sure.

Again, lots of light, lots of space.

Not my choice in wallpaper, but each to their own.

And the kitchen. Really big galley kitchen.

Lots of space.

It actually looks like you might be able to renovate some of this,

give it a bit of a clean, but again, it's just the choice of the owner.

I like this, I really do,

and there's lots of space to do exactly what you want. Good start!

The appliances I'd get rid of,

but you could save yourself a few quid here.

Keep the kitchen carcasses and maybe buy some new smart doors.

The garden is narrow but long, so outside space isn't a problem.

A coat or two of paint, and new carpets, and you'd be good to go.

Right, upstairs is two bedrooms. There's a nice long hallway.

OK, this is the front bedroom and it's a really good bedroom.

A good size. Lots of space. Big window, letting lots of light in.

Yet again, radiator. That is a nice-sized bedroom.

Across the hallway, and this feels really low.

They've lowered that for some reason.

It just feels really enclosed.

And the second bedroom. A decent size, again.

And a false wall. This would have been one bedroom on its own.

And, back in the day, when this house was built,

this would've been another room upstairs.

But when they started to modernise these houses,

they brought the bathroom into the house.

There isn't a lot that needs to be done in this house.

For me, it's totally cosmetic.

Now, if it was mine, brand-new bathroom.

Carpets. Maybe even a little paint,

and this place would be turned around sharpish.

To find out a bit more about the property,

and the area of Stapenhill,

we called in a local property expert

from the auction house that sold this two-bed terrace.

This street is well-placed,

close to the centre of Stapenhill. Stapenhill has good facilities,

close to the town centre, excellent shops and schools,

and a great football team.

Yeah, I know them, I played against them -

The Swans - Eastern Counties League.

Anyway, how much will it cost to get this place up and running?

I think, to get this property up to a good standard, you wouldn't need

to spend a great deal. Maybe £5,000-£6,000 would do the job.

And, once up to the mark, what would it rent for?

I would think that this property, offered in a good condition,

would rent for approximately £550 per calendar month.

Given the guide price of £56,000,

what are the resale prospects after refurbishment?

If this poverty were offered for sale on the sales market,

in good condition, I would expect it

to achieve somewhere in the region of £90,000.

If ever there was a house that just needed a face-lift, this is it.

It hardly needs anything doing to it,

which should mean a quick turnaround. Let's find out

who was lucky enough to get it when it went under the hammer.

Lot Number 52.

An investment property.

A traditional two-bedroom terrace house.

56 on the guide price.

56,000. Who's got 55, then, to start me?

55. Thank you. 55, I've taken the seated bid. 56.

-56. 56...

-After a little hesitation, the guide price was achieved,

and four bidders compete, going in £500 steps.

We rejoin the bidding at £73,000.

73.

73.

73.5.

And a half. 74.

74.

500? Yes. 74.5.

No, definite? At £74,500

for the first time, for the second time.

Third chance.

Sold to the lady at 74.5, thank you.

The successful bidder was Sue, at the auction with her partner, Andy.

We've seen them on the show before,

when they bought a two-bed mid-terrace.

Instead of adding it to their good-sized portfolio,

Sue told Martin she was aiming for the sales market.

So, why the change of strategy?

It is hard work, so I just want to buy something, concentrate

on renovating it, getting money back and do this and go again.

Well, they did sell, making a £17,000 profit before taxes

and expenses. And they've gone again.

But not just with this property either.

Sue admits she's a bit of a compulsive purchaser.

I met them back at their £74,500 addition.

-Sue, nice to meet you.

-Nice to meet you.

-Congratulations. Andy.

-Nice to meet you.

-Nice to meet you, too.

-This is not the first time you're on the show.

-No.

-Last time, Martin interviewed you.

-That's right, yes, last year.

So the pressure's on. Slightly. You know, with the master.

I'll do my best, I'll do my best.

Firstly, tell us why this particular property?

-It didn't want too much work doing to it.

-As we can see.

But nothing like knocking walls down. I'm getting too old for that.

THEY LAUGH

And I do like the area,

but I thought, with the structure of the house, everything's here.

Every property we go into, looking to buy,

we have a feel for it and, if we like it, we'll go for it.

-If it's got a "don't like that" feel...

-No.

-..we don't bother.

We don't buy it. And you do know.

If you feel happy, families are going to feel happy.

I suppose that's experience, because you've been doing it

-for some time, you know exactly what you're doing.

-Many years.

Now, about that compulsive buying thing I mentioned earlier.

For some, it's shoes and handbags. Sue's? Buying houses.

But when I bought this, I bought two on the same day.

I put a bid in for a house at an estate agents.

And I just nodded my head and bought this, and the phone went,

and they said, "Oh, your offer has been accepted," on the other one.

And that's about 500 yards

from the one I was on last year.

Oh, you're stopping?

-Andy, how are you keeping control of her?

-You just let her go.

-Just let her go.

-Tell me, what are you going to do to this property?

-From what I can see...

-Not a lot.

-Well, the paper will come off...

-THEY LAUGH

..to start with. You know, to start with. Right the way through.

There's a storage heater in there that will be removed.

-A nice fireplace put in.

-Yeah, with...

Carpet, these carpets. They look...

I think we'll rip them out. New carpet. Revamp the kitchen.

Revamp the bathroom.

Probably the tiles, and pop a nice white suite in.

-And a shower.

-OK.

Nice, light fittings.

Get rid of that fire surround, put a nice white one in there.

New windows in the back, and I thought I'd save the front door.

THEY LAUGH

-For what?

-Bonfire Night.

So, this is very much a sort of superficial turnaround, really.

It is. There's no damp, it's what I want. What I'm looking for.

-Tell us what you're going to do upstairs.

-Well, it is...

All the papers are going to be stripped off, again.

We will redecorate. The carpets, actually, look very good up there.

We'll have a professional cleaner in. And it's the bathroom.

I quite like the grey. I've never seen a grey bathroom before.

Feel free to try and refurb if you can.

No, we'll have a white one in there.

I think it might be a bit of a challenge.

And I think the kitchen units in the bathroom might have to go.

-Yes, it's strange.

-Very.

-Strange.

So, what is your budget to turn this one around?

Well, I think... We are going to have a look at the kitchen.

If it wants new units, I want new work surfaces in there.

-I would say probably £15,000 to do it properly.

-Yes.

If we can have it looking really nice,

which we'll get a good idea when the paper is all off, it might...

-If we come in at ten, that would be an absolute bonus.

-Yes.

-Is there anything here that you've found you didn't know about?

-No.

No, because we had a good look around when we viewed the property.

I can sniff damp out.

THEY LAUGH

Rotten floorboards.

-So, how long is it going to take to get this finished?

-About 14 weeks.

Hopefully, it'll be quicker than that,

but we've got four on the go at the moment.

The one we bought on the same day, that's going through sort of now,

and then we've got two more,

one that a tenant's just gone out last Monday, and then we've got

another quite big project, it's a four-bedroomed house.

So you're not making it easy for yourselves,

-with four...

-She never does.

-..being done at the same time. She never does.

-She never does.

Who's going to do the work for you?

Don't forget, you've got four on the go.

I do a lot of it, I always project manage.

Andy, because of his arthritis, doesn't,

he can't do anything manual. But he sources things at home,

and we've got trade accounts everywhere, so they're very fair.

Very fair.

And, if they know you've got a lot of properties being done,

-they'll do you a good discount.

-Look after you.

-Yeah, "We'll look after you, if you come to us."

-So we go to them.

-Contact, contacts, eh?

-Yes, it is. My bugbear's paperwork.

-I absolutely hate it.

-Who does it?

-Me.

THEY LAUGH

-You surprise me.

-Oh, yes.

So what do you guys do when you're not property developing,

-because you must be busy?

-We have dogs.

-You do?

-Yeah, we have lots of them.

We have Tibetan spaniels, and we also have German shepherds.

-Oh, beautiful.

-So, our weekends are usually taken up with showing,

-and we go all over the country showing.

-That's incredible.

-I'm a judge, and Andy is a judge as well.

-You surprise me.

-Oh, yes.

-Good luck, I wish you all the best.

-Thank you.

-Good luck.

-Nice to meet you, thank you.

Now, there's two people that know what they want

and how to achieve it.

I haven't really got any reservations on this project.

Or maybe I have just the one. Their timescale. 14 weeks?

And they're doing four houses at the same time. I'm not too sure.

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

Maida Vale in West London is a sought-after and, consequently,

expensive location.

The neighbourhood, known as Little Venice, has particular attractions.

Leafy, tree-lined streets, boats, lovely period mansions and

purpose-built mansion blocks, making this part of London very desirable.

# I've tried a West End pad and a classic car

# My favourite drink in my favourite bar... #

The property I'm here to see is not a lovely period conversion

or in a grand mansion block, it's a one-bedroomed flat

on the fourth floor of this much more modern tower block.

The views might be good. Let's go up to the fourth floor

and take a look.

The flat has a guide price of £295,000,

but there's something else to bear in mind.

The block comes with 24 hour concierge service and a lift.

All very convenient,

but the result is a hefty service charge of £775 a quarter.

That's over £3,000 a year, but there is some good news.

With 91 years left on the lease,

that's one less thing you'll have to worry about.

What I love about these 1960s modernist blocks is

the space it offers. I mean, look at this room.

I personally like this, because it's square, it's functional.

There's a massive, big window at the end, letting loads of light in, it's

double glazed, although you can still hear London outside there.

Through here is the kitchen.

And, of course, you have a sliding door to either open or close.

If you like. And then, round here,

you've got a really nice-sized bedroom.

We'll have a little chat about that in a while.

And then you've got bi-folding doors leading into it.

So the space is functional, it works,

you could have a really nice social time in here,

invite your friends round for dinner, there's plenty of space.

And it really does work for me.

This flat could be party central.

The kitchen is a good size with plenty of storage space,

and the units look, well, recently installed.

But before I send out the party invites,

I'd better check out the other rooms.

So, on the other side of these spectacular folding doors is

the bedroom, which really is a good-sized double.

But what I love about this flat is the fact you get a walk-in wardrobe.

I mean, look at this! That is such a luxury to have.

Plenty of space, you've got a little cupboard area at the back,

you've also got a really spacious bathroom, so all that's good.

The only downside is, your visitors are going to have to walk

through your bedroom to use your bathroom.

And that's not good.

No, you could rejig the layout

and create a second entrance off the living room, but then,

you'll be in danger of losing all that lovely storage space.

If you leave things as they are, you'll have to put up with

party guests knocking on your bedroom door.

MUSIC: Just Can't Wait by The J.Geils Band

And I'm happy to tell you there's some outside space

in the form of a little balcony.

But it's great to be able to get outside and get some fresh air.

Although it is a little noisy, you can hear all the police cars

and the fire engines whizzing by. But there's one thing I will say -

I think we have got a better outlook,

looking onto that mansion block, than they have looking back at us.

Well, they do say beauty is in the eye of the beholder.

But one less attractive aspect of this flat is that,

if you're looking to finance the purchase through a high street

mortgage lender, well, you may struggle.

The height of the block, its age and location,

and whether it's ex-local authority are all factors

that could affect their decision to lend you the cash.

# Isn't she lovely...? #

Now, I'm sure you've seen enough Homes Under The Hammer to know

that most developers, when faced with a separate kitchen in a flat,

in London, will always try and turn it into a separate bedroom

and then put the kitchen into the living room.

Reason being, it adds value, and if you're going to rent this

property out, well, it increases your income by a huge amount.

Is it worth doing? Yes.

Does it sometimes make the flat feel a little bit cramped? Yes.

The choice is yours.

However, before you start any works,

it's worth bearing in mind that some councils have

regulations about the minimum size of room

if you're hoping to rent, so check that out first.

So, what would a local property expert advise?

Are two bedrooms always better than one?

I would keep this as a one-bedroom property,

purely because of the square footage.

And if you were to convert it into a two-bedroom,

then most people will look at the second bedroom as being too small,

and the demand would drop.

Therefore, a one-bedroom property would be more desirable.

So, if this flat was kept as one-bedroom,

what sales and rental return would the new owner expect?

I would be looking at putting it on the market at £520,000.

And look to achieve between 500 and £515,000.

As a one-bedroom property, it would rent very easy.

You would be looking at achieving between £1,625

and £1,750 per calendar month.

But if the buyer decided to add a second bedroom,

what difference would that make to the values?

We'd be looking at putting it on the market at £535,000,

and you'd be looking at achieving between 515 and £530,000.

As a two-bedroom property, you'd be looking at achieving

anything between £1,800 and £1,900 per calendar month.

This Maida Vale flat is in a desirable location,

it also offers scope to add value.

Either by just refurbishing what's here, or by tweaking the layout.

So let's find out who bought this fourth floor flat

when it went to auction.

Well-located one-bedroom flat with balcony, in need of modernisation.

What about 300? 300 I've got.

305 anywhere?

305. 310.

315.

There was much competition for this lot,

-and we rejoin the auction with the bidding at £430,000.

-430.

435. 440.

No? It is with you, madam, again, the bid is £435,000.

Anybody else? For lot 170.

440. New place.

More competition. 445.

450.

445 for the first, 445 for the second,

445 for the third

and final time. All done?

450, cutting it fine. 455. 460.

If not, 455 for the first, 455 for the second.

460. 465.

465 for the first, 465 for the second,

465 for the third and final time.

All done. Sold. 465, madam.

# Ain't no mountain high enough

# Ain't no valley low enough... #

Paying a mountain of cash for that one-bed flat was Remy.

She works for a company that buys

and renovates property on behalf of clients.

This particular client was clearly very keen on the purchase, as that

final bid of 465,000 was a whopping

170 grand over the guide price.

Remy, why did you want to buy this flat, tell me the story?

My client was looking for something in a central location.

He wanted a place where, once he comes into London,

rather than staying in a hotel, you know,

he could stay in a nice place with a porter, which this block has.

So I found this in the auction, told him about it,

he was interested, and we did some research about the development,

and he was happy with it.

And how many years have you been doing this yourself?

I've been doing this, well, in the business, about ten years,

but proper acquisition, five years.

Remy is already very familiar with this particular block of flats,

because, not so long ago,

she purchased a flat a few floors above for a different client.

Currently, she's weighing up the options and is considering

making this a two-bed flat, turning that kitchen into a bedroom.

-So, it will be quite small in that bedroom.

-Yes.

And where would the doorway for the bedroom be?

It will be on, you know,

when you come in, there will be a door right there,

-going straight into the bedroom.

-OK.

-This bit will be blocked off.

I mean, currently, it has a really nice dressing area.

The thing I love most about this flat.

But you're going to have to get rid of that

to create that second entrance leading to the bathroom, aren't you?

Yes, we are, but the room is spacious anyway,

so what we're going to do is create a proper door into the bedroom,

and, on the other side of the wall, we're going to create a door,

so the person using the second bedroom can use the bathroom

without going into the bedroom.

Plans to move the kitchen and the bedroom will have to be

cleared by the building's freeholder.

But Remy doesn't foresee any problems.

Well, we need to speak to the block managers, which we've done before,

when we dealt with the flat above.

As long as we've got insurance in place for the flat,

so that if anything goes wrong, like leaking or, you know, during the

times where they're doing the works, then that can be sorted out easily.

So it shouldn't be a problem.

Loads of people, I believe, have done this

sort of conversion before in the block, so it shouldn't be a problem.

So what sort of budget has your client given you to play with here?

To convert this into a two-bed,

he's given us 25 grand.

-OK.

-Just under 25 grand. So we'll try...

We'll try our best and use that.

So, does your client have a set timescale,

or is it completely up to you?

No, he's looking more of about four to five weeks,

so we really have to work within that timescale.

THEY LAUGH

-That's pretty tight.

-I know.

-Do you think you can cope with that?

-We can. We'll try.

-Yes?

We've done it before, so, you know, it will put us under pressure,

but, you know, we'll do it.

So, what will the feel and the look of this flat be

-when we come back to see it?

-Much better than this.

-And total transformation.

-Wow, I'm really excited.

I can't wait.

-It's been lovely meeting you today.

-Thank you, thank you so much.

Buying and renovating property on behalf of clients is

Remy's full-time job,

so she's confident she can make the changes she wants here.

Converting this from a one-bed into a two-bed property.

Now, will her client be happy with the end results?

Will she be able to stick to that £25,000 budget

on a five-week timescale? Join us later in the programme

and you can find out how she gets on.

Coming up, this bungalow in Chesterton, Newcastle-under-Lyme,

seems perfect, but there's a problem hiding in plain sight.

What is the catch with this one? It's what it's made of.

And has Remy made that timescale in Maida Vale, London,

or is she just treading water?

We'd done about 95% of the work, and then we had a leak.

But now to Burton-on-Trent, Staffordshire,

where, in the Stapenhill district,

I saw a two-bed terrace with a rather jaded front door.

# I'd walk from Cork to Larne to see

# The 40 shades of green... #

Upstairs, the bathroom was one shade of grey.

But when they started to modernise these houses,

they brought the bathroom into the house.

Now, if it was mine,

a brand-new bathroom would be turned around sharpish.

Sue and Andy were the proud new owners facing that task.

Seasoned property developers,

Sue had already brought properties on this street.

So what is your budget to turn this one around?

-I would say probably £15,000 to do it properly.

-Yes.

-If we come in at ten, that would be an absolute bonus.

-Yes.

Sue and Andy were also renovating

a further three houses at the same time as this 74,500 purchase.

Any spare time they had was spent with their 16 dogs

or judging dog shows.

An active life like that would leave me feeling a little bit "ruff!"

So who's going to do the work for you?

I do a lot of it, I always project manage.

Andy, because of his arthritis, doesn't,

he can't do anything manual. But he sources things at home.

And we've got trade accounts everywhere.

If they know you've got a lot of properties being done,

-they will do you a good discount.

-They'll look after you.

-Yeah, "We'll look after you if you come to us."

-So we go to them.

-Contacts, contacts, eh?

-Yes, it is.

They did have a 14 week timescale,

but they were doing an additional three properties at the same time.

To see how their investment property is shaping up,

we've returned 13 weeks later.

There's new kitchen flooring...

and a new kitchen sink.

A new cooker, new worktops,

new window...

and new wall tiles.

But are the units new?

No, just the handles.

The old cupboard doors cleaned up a treat

to produce this modern, functional galley kitchen.

Now, let me take you back to that once grey bathroom upstairs.

# Take me back to where it all began

# To where our memories grow

# Before they take us over

# Tonight

# We're gonna live for

# We're gonna live for these days... #

There's a new suite,

new flooring,

new fixtures,

but the tiles are original.

Downstairs, the open-plan room had a bold feature wallpaper scheme

at either end. In my view, it had the effect of closing the room in.

Now, the tones are monochromatic, making the space feel much bigger.

# Take me back to where it all began

# To where our memories grow

# Before they take us over... #

Finally, to the two bedrooms.

Another bold pattern in the biggest, but look again at the carpets.

They've been professionally cleaned throughout the whole of the house.

In the smallest bedroom, the changes are a little more subtle.

But the redecoration carries through here.

So, how are Sue and Andy coping?

# These days. #

We've had one painter down at another house.

And two painters have been here.

Andy's been sourcing things we need. And doing a bit of paperwork.

And I've been dashing round, dropping tins of paint off

all over the place and picking up bits and bobs we wanted.

And, of course, supervising.

THEY LAUGH

How's the budget gone?

You were planning on 15,000, but hoping for ten?

Totalling it up over the last couple of days,

we've come in at about 7,500.

-So we're pretty pleased with that.

-So you should be. And credit, too,

for coming in under your original 14 week timescale at just 11 weeks.

Bet you were glad to get rid of that ugly front door, though.

Our painters and decorators came in, looked at it, said, "Oh, it's

"a nice door, we can renovate that," so they rubbed it right down.

And I think it looks really, really good.

Worthy of Number Ten, I'd say.

And have plans changed for the property?

We did think about selling it.

We've got two people that are interested investors.

But I like this house, so I'm not going to sell it.

I've got someone moving in tomorrow to rent it.

Blimey, you don't hang about.

Getting a tenant in as well as all the rest,

anything else you want to mention?

Last week, we got married.

Er... Absolutely wonderful, looking out onto the river, with the swans.

It was an absolutely fantastic day.

I wonder if Sue had a day off supervising.

Somehow, I doubt it.

-So, we're now married, aren't we, darling?

-Yes, we are.

Congratulations.

We couldn't think of a better present than to invite

two local property experts around to give their opinions and valuations,

starting with the one who saw the property 11 weeks ago.

It's my second time in the property

and I think the work's been carried out to a great standard.

It really does look lovely.

The standard of finish in the property is very good.

I think people will like what they see.

There are clean, contemporary lines

and it's one of those places that people will fall in love with.

Sue already has a tenant,

but did she do the right thing business-wise in not selling?

The purchase price was £74,500,

with a further £7,500 for renovation.

What could they expect for their £82,000 investment

on the sales market?

I would put it on at £95,000.

I would anticipate a sale being achieved very close to this.

I would expect something between £90,000 and £95,000.

-I'd be pleased with the top end, £95,000.

-Very good.

I think the house is worth that, and they're going up all the time,

but I don't want to sell it.

I love the house.

So, that's goodbye to a potential £13,000 profit before taxes

and expenses. What about rental?

If I were to offer this property to the rental market,

I would offer it at £550 per calendar month.

I would expect to achieve, in the current market,

around £550 per calendar month.

-Exactly.

-Yes.

-£550 a calendar month, we've asked for the property.

-Yeah.

That translates to a yield on investment of 8%.

Was the experience worth it?

This is one of the easiest ones we've done, in all fairness.

It's worked out well.

And Sue says she's heading back to the auctions next week.

Time to visit Staffordshire now, and I'm heading to a village

three miles from the market town of Newcastle-under-Lyme.

So, I'm in Chesterton, just outside Newcastle-under-Lyme.

I'm here to see a kind of property I really love. It's a bungalow.

It makes sense as an investment or a place to live, and this is it.

£60,000-plus was the guide price.

That sounds pretty good, cos it's detached.

It looks to be in reasonable condition.

The only thing I can see straight away -

a bit of a potential issue - this tree.

A little bit close for my liking.

Now, I am a bit of a green chap -

I do love to be surrounded by nature -

but trees this close can make houses very dark.

The roots can play havoc with drains and foundations and, of course,

if they're on your land, it's your responsibility to make sure

they're healthy and therefore safe.

Let's have a look inside.

So, what have we got?

Well, into a, sort of, corridor off which the rooms all spread,

and the whole place seems to be in pretty good condition.

Nice, clean carpets and recently painted. Yeah, pretty good.

Two bedrooms - the one there, a good size.

A slightly smaller one towards the back.

Bathroom, there, with a nice, white suite.

It's all looking pretty good, so far, isn't it?

Let's have a look at the lounge.

And a pretty nice space, it seems, too.

Yeah, all in all, this is looking pretty good, isn't it?

Obviously, you've got double glazing, you've got central heating,

and then, through there, to the kitchen,

which looks to me like it's pretty serviceable.

All in all, you could almost move into this as it is.

Wow.

On the face of it, this looks like a cracking buy

for anything like that guide price of £60,000,

but, if you read the legal pack,

you would discover an important detail.

More of that in a minute.

Well, the bungalow, of course, is detached, which is good news,

cos it benefits from gardens on three sides.

Yeah, I mean, small one to the edge,

but a reasonable one to the front and the back.

I mean, look at this - absolutely brilliant.

I mean, it could do with a bit of a tidy-up, but you've got this

very interesting sort of shed-y thing going on here.

So, it's all looking good,

and it's all perhaps a bit too good to be true.

Well, you know, in property,

if it seems to be too good to be true, generally, it is.

What is the catch with this one?

Well, in case you hadn't guessed already, it's what it's made of.

It's non-standard construction - probably concrete blocks -

and although it's probably going to outlive me and you,

some mortgage lenders don't like it,

so it does limit the kind of person who will be able to buy this

to basically what they call a cash buyer.

So, as long as you know about it beforehand, you're fine.

Find it out after the auction,

when you're trying to get a mortgage... Ooh!

You're in a bit of a pickle.

Yes, that's the motto for auctions, isn't it?

"Don't put your hand up unless your finances stand up."

But, even if you're still keen on buying this property,

there's things to consider, like, "Is this a good area to buy in?"

A question that we put to a local estate agent.

Chesterton is not a bad area to purchase a property in.

There are parts of the area that are very popular

and there are parts of the area that aren't.

When considering buying a property,

that is not of traditional construction,

you should be aware that the vast majority of mortgage lenders

will not touch a property that is non-traditional construction.

If you are a cash buyer or if you get a specialist lender,

what does the property need doing to it?

The property is in need of some internal updating.

It's a little tired in parts.

The property really requires complete internal redecoration,

recarpeting, and consideration to

updating the bathroom and parts of the kitchen.

To get this property into tiptop condition,

perhaps a spend of around £10,000,

replacing kitchens, bathrooms, decoration,

carpeting, and the boiler could probably do with changing.

Assuming you got this property for anything like

that attractive guide price of £60,000,

and you spent £10,000 on it with the aim of selling or renting it,

what kind of return could you see and what would be the best option?

There would be quite a limited demand for this property as a sale,

mainly because of its restriction due to its construction type.

For rental, there would be quite a strong demand for the property.

This property, if it was put on the market for sale,

once renovated, would probably fetch in the region of £90,000.

The rental for this property should be £550 per calendar month.

Well, bungalows are enduringly popular,

and this one is no exception,

the only issue being that non-standard construction,

so, let's hope that somebody who bought it read the legal pack first.

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

Lots six and seven, sold.

Lot eight - a two-bedroom detached bungalow with gas central heating,

double glazing, gardens front and rear.

We understand that the property is of non-traditional construction,

so lot number eight, guiding this at 60.

Can I say 55 to start?

55 bid. Thank you, at £55,000.

56, can I see now?

56.

57, 58,

59, 60...

61. At 61.

62, 63, 64...

At £63,000, then, seated on the front, at £63,000.

64.

65.

66.

No, 66.

Lady's bid, second row, £66,000.

67, anywhere else?

If not, I'm selling it at £66,000, for the first time...

£66,000 for the second time.

Third and final time, £66,000...

Bought it. Well done.

Donna-Marie and her mother Christine were a little obscured

from our view at the auction, but we have seen them before.

In 2014, the mum-and-daughter developing team,

who had around 30 properties between them,

came along with Christine's husband Dennis

and Donna-Marie's partner Stephen.

They met Dion at Donna-Marie's Tunstall terrace.

This time around, it falls to the father-and-daughter duo

to explain their plans for their £66,000 purchase.

Donna-Marie, Dennis, great to see you again.

-You too.

-I say again, cos we have seen you a couple of times

-on Homes Under The Hammer, haven't we?

-Yes, yes.

-How have the previous projects gone?

-OK, yeah.

-The first was a house in Balderton. We met with yourself...

-Mmm.

-..and that's still going strong.

-Yeah.

-And the more recent one was in Tunstall...

-Right.

..and we've got some nice tenants moved in there

-and that's all fine and dandy.

-So, onwards and upwards?

-Yeah.

Tell me about this particular property, then.

-Why did you want to buy it?

-Well, this one is my dad's, actually.

-Oh.

Yeah, it's a... It's a matter of opportunity

and the price is right.

Dad didn't know he was buying this house. He'd never seen it...

-Oh, right.

-..until we rang him and said,

"The hammer's gone down. Come down with your passport.

-"You've got to sign."

-Oh.

-And he said, "I didn't think you were buying any more."

-Oh.

Cos my mum did state, at the last time we filmed with you,

"Ten." She only wanted ten and that would be it.

And I said at the time, "Yeah, OK."

But then she bought two that week. This one and another, so...

-She got the bug and she couldn't get rid of it.

-Yeah. Yeah.

So, sorry, I'm a bit confused.

-Then, you've bought it with your advice?

-Yes.

Me and my mum happened to view it,

-because it was me that was shopping for houses, not my mum.

-Right.

We went to the auction.

I was really unsuccessful with all the ones I was trying to go for.

I think she must have... was a little bit bored.

She'd seen it and thought, "Oh, I'll start this off."

She thought it would go for a lot more money, but it didn't,

so she bought it.

-This ones to go towards my dad's portfolio...

-Right.

..now she's got her ten, and so we just phoned him and said,

"Come on down with your passport. You've bought a house."

You make buying houses sound like shopping for sausages

-or fruit or...

-SHE LAUGHS

She's very astute.

-Who, your daughter?

-Both of them.

-I'm blessed with two astute ladies.

-Right.

But, on the Thursday, she's come and informed me, "You've got another."

-Oh, what, as well as this?

-Yeah.

-Another one I'd looked at.

-Oh, right.

It wasn't through the auction, though.

-She bought two that week, when she wasn't even shopping.

-Right.

I mean, and did you have anything to do with the purchase

-other than signing on the dotted line?

-No.

-No? Right. Fine.

-SHE LAUGHS

So, why did you pick this property for your dad?

-Right, well, it was me and Mum...

-OK.

..and we came to see it and it was no good for my portfolio,

-because it's of non-standard construction...

-Right.

..and the majority of mine, I normally mortgage one,

buy one cash, and work on that cycle,

so non-standard constructions normally fall into,

"Mum, is it any good for you?"

And it's...

It needs pretty much no work doing to it.

It'll be easy...

-Well, we've already let it, so...

-Oh, have you?

-..and we knew that would be that case.

-What, as it is?

We're changing the carpet in the kitchen to cushion floor

and cutting the grass, but the tenants moving on Sunday.

-You're joking?

-No, no.

-Really?

-Yeah.

-Wow.

# It's the not knowing that hurts the most... #

Well, it sounds like Dennis is not the only one not in the know, here.

I've just arrived and it's tenanted already.

It's like reading the last chapter of a book first.

Anyway, Dennis doesn't appear to mind not knowing he was

buying a house, and why should he, when he has it tenanted already?

Without having to do,

-well, anything.

-HE LAUGHS

The most pressing job they have to carry out is to reconnect

the gas, and make sure the gas boiler is checked out

by a qualified Gas Safe Registered engineer,

which, of course, all landlords must do by law.

So, basically, for two weeks, cut the grass, new carpet,

-and you've got it rented it.

-Yeah, we've got the...

My cousin's helping with this one,

-so he's coming to take up the carpet...

-Helping?

-How much help do you need?

-..and mow the grass,

and the flooring guy is here tomorrow afternoon and...

we'll be along with the gas guy to the gas certificate.

Your cousin's helping?

Well, you know, you really need to draft in the family,

given what you're doing, yeah. That's amazing.

You certainly are building a property empire, this family,

-aren't you?

-Well, enough to make us comfy, hopefully.

-Yeah, well, that's great.

-Yeah.

Dad, are you going to let her go to the auction on your behalf again?

I have no objection.

No, no?

I've got two ladies that like to do everything

and, being a gentleman, I let them.

And as long as he can do what he wants, when he wants,

and there's the money to fund it, he's happy.

-Yeah, I've been retired 20 years now.

-Oh, have you?

-We'd finished, yeah, and I'm disabled so...

-Right.

-But you start using your brains, then.

-Yeah, for sure.

And marrying the right woman helps.

So, what... The time's come down to just days.

The budget is, erm...

£200 or £300 should be... should cover it all.

-Listen, congratulations. Good luck with it.

-Thank you very much.

Looking forward to seeing how you get on.

-Right, thank you.

-Nice to meet you.

HE CHUCKLES

So, another property for Donna-Marie and her family

to add to their portfolio

and, with those kind of returns for that little effort,

who can blame them?

How will they get on? How will the newly-mown grass look?

You can find out later in the show.

So, that's one of our properties that's sailed off into the sunset.

But, luckily, there are two more on the horizon.

Will they flounder on the rocks? Let's find out.

Earlier in the show,

I was in the affluent area of Maida Vale in north-west London.

Among the multi-million-pound mansions and leafy boulevards,

I found a potential auction bargain -

well, relatively speaking -

with this one-bed flat, guided at £295,000.

It had 24-hour concierge, double glazing...

It was spacious.

This was certainly a place to live the high life.

But what I love about this flat is the fact you get a walk-in wardrobe.

I mean, look at this. That is such a luxury to have!

Oh, yes, but before you start

planning a life on Millionaires' Row,

there were a few issues to address.

The only downside is,

your visitors are going to have to walk through your bedroom

to use your bathroom, and that's not good.

It generated a lot of interest at the auction,

and it generated a big sales price, too.

All done. Sold. 465.

Remy paid a whopping £465,000 on behalf of a client

who wanted the flat as a second home,

and he had tasked her with solving that toilet issue

and adding a second bedroom,

all with a budget of £25,000 and a timescale of five weeks.

Yikes.

But Remy was confident that she and her team

could deliver something special.

So, what would the feel and the look of this flat be

when we come back to see it?

Much better than this and a total transformation.

Well, you promised a total transformation, Remy,

and, six months on, this flat certainly delivers.

Remy has created a second bedroom where the kitchen was.

I'd been worried that this would make the flat seem cramped,

but, the new kitchen-cum-living space,

well, it's better than I'd thought.

So, erm, what we've done here is, this used to be the living room

and there was a door right there in that corner.

We've blocked that up and created a door entrance here

to access the bathroom and the main bedroom,

and we've also made this into an open-plan kitchen reception.

For the kitchen area, we've got tiles,

and for the living area, we've got engineered wood floors.

So, that's solved the bathroom conundrum, and it's given

a real flow to the whole flat, and this finish throughout is great,

but this certainly wasn't the easiest project.

We had a few delays.

The first was getting approval from the managing agents.

That took a bit of time after the property was completed -

the process was completed -

and after that the work started.

We had gone...

We'd done about 95% of the work,

and then we had a leak that came from the flat above.

I believe it was some pipes that were burst.

The leak messed up the kitchen units and the flooring,

cos they had just been placed and everything had to come off.

What I've learnt on this project is that anything can happen, you know.

We were not expecting that leak to mess things up, you know,

so you have to be prepared for the unexpected.

Well, you said it, Remy, and that aquatic incident,

and waiting for permission from the building's managers to

go ahead with the work, has meant the project has taken six months

rather than the intended five weeks.

Ouch!

And the budget is equally painful,

with the total cost at £30,000, rather than the £25,000,

and not just because of the plumbing problems, either.

The client actually didn't like the colour of the kitchen that

was being placed initially,

before the whole thing was messed up with the leak,

and also, when you come in from the entrance,

we had tiles there, and he wasn't pleased with that.

He wanted carpet, so we had to take out the tiles,

change the colours and all that, so we went above budget a bit.

Well, it's not been as straightforward as Remy hoped,

but is she pleased with how it turned out?

I'm pleased that it all came out well, as planned,

even though it took a bit of time,

and most especially I'm pleased

because the owner is pleased as well.

He's happy with the job.

All's well that ends well, but our time with Remy doesn't end

until we invite two local estate agents along to give us

their views, including the agent who saw it before the renovation.

In their opinion, was it the right decision to go for two bedrooms?

I think the layout suits very well.

The space hasn't been compromised

turning it from a one-bedroom to a two bedroom.

I think it works well as a two-bed.

I mean, as a one-bedroom,

it would be a very nice and spacious one-bedroom,

but I think it gets away with being a two-bedroom.

The client doesn't intend selling or renting the flat in the

short-term, but what kind of rental and resale value would it have?

And how would that stack up against the total £495,000 spend?

On the open resale market,

you should be looking at expecting somewhere in the region of £575,000,

and, on the rental market,

you should be expecting £1,800 to £1,900 per calendar month.

On the sales market, I would suggest £585,000,

and, for the rental market, I would suggest £1,900 per calendar month.

Well, that sounds good.

I mean, you want to go with the higher figure,

but 575 is, I believe, more realistic,

so, yeah.

Yes, it sounds good and it looks pretty good, too.

Those top figures would give the client a choice between

a pre-tax profit of £90,000 or a rental yield of 4.5%,

but the client has chosen to stick with the intended plan

and have this as a second home.

How has the renovation experience been for Remy?

The experience has been interesting, but, so far, it has been good.

It's been good, cos the finished product is good, so we're happy.

-MARTIN:

-Earlier on in the show, I was in Chesterton,

a suburb around Newcastle-under-Lyme in Staffordshire.

Bungalows are ever popular on the market

and this one was in excellent condition, with double glazing

and central heating, and all for a guide price of £60,000.

If it seems too good to be true, generally, it is.

What is the catch with this one?

Well, just in case you hadn't guessed already,

it's what it's made of.

The ever problematic non-standard construction makes it tricky

to get a mortgage, but daughter and dad Donna-Marie and Dennis

weren't dissuaded, paying £66,000,

although it may have come as a bit of a surprise for Dennis.

Dad didn't know he was buying this house. He'd never seen it...

-Oh, right.

-..until we rang him and said, "The hammer's gone down.

-"Come down with your passport. You've got to sign."

-Oh.

And he said, "I didn't think you were buying any more."

Actually, Dennis had been looking for a first property for a while,

and thanks to his wife Christine and Donna-Marie's know-how,

that had seen them build a portfolio of around 30 properties,

they didn't come much easier than this one for a debut development.

It needs pretty much no work doing to it. It'll be easy...

-Well, we've already let it, so...

-Oh, have you?

-..and we knew that would be the case.

-What, as it is?

We're changing the carpet in the kitchen to cushion floor

and cutting the grass, but the tenants move in on Sunday.

-You're joking? Really?

-No, no.

# There's no great change that's coming along

# There's nothing to gain from all the alarm... #

There's certainly no financial gain in renovating it

in such good condition and the tenant ready.

We left it a month before we came back to see what,

I have to admit, is probably one of the easiest refurbishments

we've seen on the show.

But, come on, guys, it's still Dennis's first property,

so he deserves the full Homes Under The Hammer treatment.

-RECORD SCRATCHES AND MUSIC STOPS

-Give us some dramatic music.

-MUSIC: Theme from Kill Bill

-Oh, yes, that'll do very nicely.

And some effects and excitement, too, if you please.

-LASER BLEEPS AND CHEERING

-OK, let's begin,

and reveal!

Well, I hope you enjoyed that, Dennis.

As you can see, the bungalow is already tenanted,

but let's get a run down of that extensive work from Donna-Marie.

We've completed the works that we said we were going to complete

in changing the flooring in the kitchen.

Erm, the garden has been mowed

and we've put a carbon monoxide detector in,

and cleaned.

Well, it's easy to forget things you've done

when you've so much to do, eh, Donna-Marie(?)

Look, all right, joking aside, this was a smart purchase on behalf

of dad Dennis and one that everyone in the family could help with.

So, the work here was done by Rob, my cousin,

who sorted out the garden, cos he's got all the kit,

and our usual carpet supplier sorted out the flooring,

and that's it, really.

Everyone needs a man with a mower. Well done, Rob.

To be honest, it feels like this part of the show has taken

longer than the actual renovation, but how long did it actually take?

To do the work on the property took about two days

and the tenant was signed, sealed and sorted within a few days.

So, from the day we collected the keys,

to the day that I did the check-in with the tenants,

was about two weeks.

And what about budget?

We thought we'd probably spend on this project about £200-£300,

and we've come in at below £200,

so just another good project that's come in on budget,

within timescale, and has started to bring revenue in on the investment.

A very businesslike attitude from a seasoned developer -

find the right property, pay the right price,

and keep a handle on any renovation.

It's been a recipe that served Donna-Marie and her family well,

so what will be the case here?

Has that £66,200 investment done the business

or could they - should they - have done more?

We asked that very question to two local estate agents,

including the agent who saw it before the...

Well, before the extensive changes to the house(!)

The property's had some work done, but I understand

there's a quick tenancy that's been allowed on this property.

When it comes to re-let, I do think it needs more substantial work,

such as redecoration, recarpeting and a possible replacement bathroom.

Well, I'm surprised that they've not done more work to the property,

but, having said that, it's in quite good condition to start off with.

I would have put a bit more consideration into the carpeting

and, also, with the bathroom,

it might be worth putting a bath with a shower over the bath,

so it gives people the option of bath or shower.

Donna-Marie and Dennis are renting out the property for

£550 per calendar month,

giving them almost 10% yield.

This property was always for rental,

and it hasn't been renovated with the sales market in mind,

but what could it sell for in its current state?

The property is of a non-traditional construction,

so I'd expect that to affect the price slightly.

We've been looking at marketing this at £75,000.

This property, if it was put on the sales market,

should be put on the market for £89,950,

but it may need some adjustment

as it's a non-traditional construction.

Erm, non-standard construction properties are always

quite hard to value.

I think the £90,000 might be slightly on the high side

and the £75,000 - it's going to be there,

or thereabouts, I would have thought.

You said it perfectly, Donna-Marie.

They're hard to value for resale,

as you're probably looking for a cash buyer,

but even that lower £75,000 valuation would give them

an £8,800 profit before the usual taxes and expenses,

so, with a good return,

will dad Dennis be taking his daughter and wife's advice

at the auctions again?

I think my dad will probably let me and Mum buy him properties again.

I don't know if he's got much choice in it, really,

but, yeah, yeah, we'll probably be looking for some more for him

later on in the year.

And so, what's next for Donna-Marie?

Next, for me, is I'm getting the keys for my next project tomorrow -

a bit more extensive than here,

but hopefully I'll be done and dusted in three weeks

and the tenants will move in straightaway.

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

We'll be back with more properties and their owners for you next time.

So make sure you join us then for more Homes Under The Hammer.

Yeah, we'll see you then. Goodbye.

-Goodbye.

-Goodbye.