Episode 9 Homes Under the Hammer

Welcome to the programme!

-Now, Martin, who doesn't love a bargain? I know we do.

-Certainly do.

But what do they say when something looks too good to be true?

-It probably is.

-But there are still bargains to be had at the auctions

if you know what you're looking for.

Well, somebody who's just as passionate about property

as me and Lucy is Dion Dublin.

-Hello.

-Dion:

-Hello.

Over the years I've developed many properties

and I've enjoyed it but it does throw up some unexpected surprises.

It's not always straightforward.

Well, although all properties are different, there are still

some rules which all developers need to stick to,

whether they're doing up a one-bedroom flat

-or a mansion with thousands of acres.

-Absolutely.

Now, Dion, you've got to get used to our golden Hammer rules -

do your homework and research before you go sticking your hand up

in the air at the auction.

-DION:

-Good tips, I like that. Let's see who stuck to those.

First up, in County Durham, there's no lack of confidence.

There's quite a bit to do. Doesn't seem to frighten you, though?

Eight weeks from Monday, I think this'll be a three-bed bungalow rented out.

-MARTIN:

-And in Edgware, London,

you don't have to look far to find a helping hand.

-I was picking his hand and saying, "Yeah, yes."

-Oh, were you?

And in Ashford, Kent, I've heard of tight budgets before, but... Oh!

So, what sort of budget have you guys got in mind?

I've got in mind £2.50.

All these properties were sold at auction.

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

when they went under the hammer.

Now that's yours, sir.

One of the north-east's former mining villages, Houghton-le-Spring,

is now a commuter hot spot for Sunderland and Durham,

not to mention the nearby motorway networks.

It's also the birthplace for music producer

Trevor Horn from the band Buggles.

# I heard you on the wireless back in '52... #

The property I'm here to see is just a short walk away

from the local shops.

It's a single-storey commercial unit.

Now, get this, the guide price is a staggering

£10,000-£15,000.

It doesn't look much from the outside.

Let's take a look inside. Looks can be deceiving.

OK.

Nice bright hallway. Spacious hallway.

It does have a commercial feel as soon as you come in.

It was a doctor's surgery at one stage,

many years ago, judging by the condition it's in at the moment,

and I would imagine that would have been some kind of reception room

or waiting room for patients.

Two big windows there but, again, a big space.

Over to this side of the hallway, another big room here.

It's obviously been left for some time.

There's a lot of work that needs to be done here.

The ceiling's out, it's going straight through to the roof.

It's a bit of a strange layout, as well,

but there's scope for this property.

There's lots of floor space but it's a bit of a mess.

Let's see what I find through there.

From the outside, the property is deceptively small,

but look at all the doors down this corridor,

all leading to small rooms.

It really is rather spacious but there's a lot of work to be done.

Now, the interesting thing is this property already come with plans

to go from commercial to residential and that's when it gets interesting.

You could actually do what you want with this.

If you've got the vision to sit down with a piece of paper, pen,

pencil, maybe a cup of tea,

in my case it'd be a nice pint of ale, and you could draw whatever

you wanted for this property and make it whatever you wanted.

The purchaser might have the vision of a bungalow

conveniently situated on the gentle incline of the high street,

providing just the right amount of exercise,

just what the doctor ordered.

And out back there's a hidden bonus.

So, in addition to the property, out the back

you've got this piece of land, which is huge.

And it's crying out, for me, for a bit of development here.

Judging by what I can see around it, you could actually put one property

on here or even try and squeeze two on.

Regardless of what you do with it, it's an absolute bonus.

But don't just take my word for it.

We've called in a local estate agent

to get her opinions and valuations

and to answer the question, is this a property someone can grow to love?

# Doctor, Doctor, give me the news

# I've gotta bad case of loving you... #

Clearly there's a lot of work to be done inside of here,

but I think once it's finished

the potential is that you're going to have a big bungalow

suitable for a family or a couple on their own.

And the plot's a really good size, so there's lots of potential.

The key, as is often the case,

is seeing how that potential can be realised.

So, what are our visionary's prospects on this lot,

guided at £10,000-£15,000?

Once renovated to a three-bedroom detached bungalow,

to a high standard,

I do think this property could be worth in the region of £95,000.

Plus the potential value of the land at the back.

Leaving that aside, what about the rental market?

Again, to a high standard,

if this property was renovated to a three-bedroom detached bungalow,

I think you could achieve in the region of £500 per calendar month.

So, it has been left empty for years and it's not in great condition,

but if you're willing to sit down and reconfigure

the plans of this property you could have yourself a nice little project.

Let's see who agreed when it went to auction.

£10,000-£15,000, your guide on this single-storey commercial property.

10-15, start me. 10.

10 here. At 10 I'm bid in the room. Here to sell, don't lose it.

11 on the phone behind you.

12, 13?

13 on the phone.

14, 15.

15 I'm bid. 16.

Bids rapidly exceed the top guide price estimate of £15,000.

We rejoin the bidding at 33,000.

33, back row, been with me all the way, I'm rooting for you, sir.

At £33,000. First time...

Back in at 33,500.

34,000. 34,500?

34,000, then. With you, first time.

Second time.

The third and final time, then, if we're all done?

At £34,000, selling.

GAVEL BANGS

Well done, sir.

The final bid came from Brian.

He's growing a property portfolio alongside his day job

of running his own telecoms business.

Being local, he feels his £34,000 bid was a bargain.

Only six months prior to the auction,

he had offered to buy it for £45,000,

whilst he was redeveloping a nearby property, but the sale fell through.

I met him back at his latest acquisition.

-Brian, nice to meet you.

-Hiya.

-Congratulations.

-Thank you.

Tell us about the auction experience, how was that for you?

That was the first one I've been to.

I've done a couple over the phone, like.

Just so happens I was bidding on one

of me neighbours from round the corner from where I live.

-Your neighbour wanted this one, as well?

-Yeah.

He started a bidding war against us, erm, so...

But he dropped out, so I ended up winning it.

-You're going to turn it into a...?

-A three-bed bungalow.

-OK.

How are you going to do it? Are you going to knock stuff down?

All the walls to the rear, obviously, they're all coming out.

Partition walls going in.

Erm... New...

Totally gut the place from top to bottom, start afresh.

Bring in a sky tunnel...

-sun tubes in for light to the rear end...

-Nice.

..just to make it a bit more liveable for the tenants.

You've got your work cut out, haven't you?

-There's quite a bit to do.

-There's a fair bit.

-Doesn't seem to frighten you, though?

-I think this will take

-about, at the most, eight weeks.

-Really?!

Aye. Eight weeks from Monday, I think

this'll be a three-bedroom bungalow rented out.

Who's going to do the work for you?

-Will you oversee it, will you do it yourself?

-I oversee it.

I bring the same people in on each one cos I trust them

-and they do a good job.

-What will you do yourself in regard...?

Will you do any physical work yourself?

I'll supervise. DION LAUGHS

-You're not going to get yourself dirty?

-No, no.

I don't get dirty, I leave it to the professionals.

-And how much are you hoping to spend?

-At the most, 25 grand.

I have got contingency money left, but 25 grand should kill this.

Basically, there's just putting stud walls up, refitting,

new central heating system, new electrics, new kitchen, bathroom,

possibly an en-suite in the middle bedroom and board the place out.

As you can see, the whole thing needs doing.

I'm going to be putting sun tunnels in the kitchen,

in the main bathroom and to one of the bedrooms,

just to bring a bit more light into it.

With it being a commercial bungalow,

-it's a bit of an odd layout at the minute.

-Yeah, it is.

And are you going to live in it, rent it out, sell it straightaway?

I'm going to rent it out.

Tenant won't have to do any work theirselves,

it'll be ready to move straight into.

Get this done in the eight weeks, I can move on to the next after that.

Do you look now,

while you're actually doing this one, are you looking again already?

When I started looking at this one six month ago,

when I was renovating the flats,

I'd already put the plan of proposal

to convert this from commercial to residential.

And at the same time, cos I'm doing the council a favour

by renovating all these buildings,

I asked what I could do with the land to the rear of this property.

-Yes.

-And I can build, possibly, three bungalows

if I can provide off-street parking for them.

But they says, more or less definite, I can build two.

They're going to be small for the land that they are on,

but they are dormer bungalows.

Erm. They're going to be two-bed, one bedroom in the loft

-and one on the ground floor.

-OK.

And parking to the front with a small garden at the back.

It's perfect, really,

-cos you've got a busy main road right here, haven't we?

-Yeah.

And to have that off-street parking as well, it's absolutely perfect.

You'll have people waiting to get into them, I would think.

-Aye, I've already got people put their names down for them.

-Have you?

I've got people asking us daily

if I've got any properties coming available.

What are your timescales on that and what's your budget on that, as well?

Timescale on that, well, once the full planning pack's

been approved and we put our shovel in the ground, six-month,

-maximum of that.

-From start to finish?

-From start to finish.

What about the budget on the back?

-Does that depend on how this goes or...?

-I've never really budgeted.

I've got a roundabout figure of what I think it's going to cost

-in the back of me head...

-OK.

-..but I'll keep that one shtoom.

DION LAUGHS

-Listen, Brian, great to meet you.

-Yep.

You're going to do well, pal, you're very positive. Good luck.

-Thanks a lot.

-I hope it works out, mate, I'm sure it will.

So, Brian certainly knows what he's doing. He knows the area

and he knows what he wants to achieve with this property.

And will he get it done within that £25,000 budget

and will he get it done within eight weeks?

Will he get the wheels in motion for that land out the back, as well?

He seems to think so. You can find out later on in the programme.

-MARTIN:

-This is Edgware in the London borough of Barnet

in the north of the city.

It's a busy and bustling area with lots of amenities,

a shopping centre and easy access to the surrounding motorways.

And it might be right at the end of the Northern Line in zone five,

but because it is on the Tube

you can still reach Central London in half an hour.

# This is the end of the line... #

Well, not far from Edgware high street,

other side of this fairly busy road.

However, on a convenient bus route is the property I'm here to see.

It's actually a flat in this 1930s block.

Three bedrooms, 225,000 quid, sounds all right.

For the area it's in, £225,000 is a pretty reasonable price

depending, of course, on what the flat's like on the inside.

However, the outside can be a good indication of things to come

and this 1930s block looks well-kept,

with handy residents' parking at the front.

So, after a long walk to the entrance at the back,

it's up to the second floor. Phew!

Doesn't half keep me fit, this job.

So, expectations are set fairly high.

And walking into the flat, well, actually, you're not disappointed.

Straightaway you get a really nice feel.

It's fairly neutral colours with the whites and magnolias but,

actually, that works really well. Carpet looks to be in decent nick.

What have we got?

Well, three bedrooms, obviously. First one there. Nice size.

You've got a loo and a separate bathroom, so that's quite good.

Moving down this corridor, second bedroom there, getting loads

of light coming in through the window, so we really like that.

Third bedroom is at the end.

Kitchen, hm.

Interesting place for a door at the end there. Need to explore that.

But it doesn't look to be in bad condition.

In fact, the whole flat is just, yeah.

You could literally move into it as it is. Really nice.

It depends on what you're planning to do with this,

but at the moment this is a living room and that makes perfect sense,

it's a really nice room with the two windows.

Again, lots of light.

If you were renting this out as individual rooms

you could even make this a bedroom, perhaps,

but that wouldn't necessarily leave a lot of communal areas,

so to speak.

But it's a really nice size and everything.

Mentioning the windows earlier, though,

that's the only thing that lets it down slightly.

They are this aluminium and,

yeah, going to have to spend some money getting those replaced.

But apart from that, you know, it's great.

# Don't stand so close to the window... #

Replacing those windows could be costly.

However, it'd be more energy-efficient

and they're the only thing letting down

this otherwise tidy spacious flat.

Although, let's go back to that door in the kitchen.

Yes, that door simply leads to this little balcony area.

It's not really too much to shout about,

but any outdoor space is a huge bonus in London

and it's not the only bit of outdoor space available.

The great news is the communal grounds for the blocks here

are quite sensational. Look at this!

You've got a fountain!

The downside, of course,

and there usually is one, is that to keep this looking so pretty,

and also the blocks of flats themselves in pretty good nick,

the service charge is pretty high -

almost £2,500 a year.

So, that has to be factored in, definitely, to your living costs.

That money also goes to maintaining the communal areas but, ouch,

that is a lot,

and even though the gardens are lovely, it could put people off.

We've asked along a local agent to look at this three-bed flat,

guided at £225,000.

The property itself is in good condition.

If the owner was to rent the property out,

it could go straight onto the market.

The size is good, it's a very good layout, nice big lounge

and good-sized bedrooms.

Service charges are not often this high for an older block.

Usually, block with a lift, you know, leisure facilities, they do demand

the higher service charge, but not older blocks like this.

Well, I hope potential buyers have done their homework.

But if they are still keen, what kind of value would you place

on the property once it's refurbished?

Once renovated,

this property should achieve somewhere in the region of £290,000.

And rental?

Once renovated, this property, on the rentals market,

should achieve somewhere in the region of £1,300 per calendar month.

Well, I am normally quite bemused by the high prices of properties

in the London area. However, in this instance,

you do seem to be getting quite a lot of flat for your money,

with the three bedrooms, the nice grounds and the good location.

Of course, the downside is that high service charge but,

apart from that, yeah, an interesting one to go for.

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

Second floor flat, this one. What shall we say?

Start me out 225, if you will.

Thank you, 225 is bid.

227?

226? 226.

227, 228,

229, 230,

231, 232,

233, 234...

The bids fly in straightaway

and we return at £240,000.

At the front here, then, at £240,000 for the first...

241, new place.

242, either of you?

Or you, sir, with the 31?

242, 243, 244...

245, 246,

247, 248,

249, 250,

251, 251 on my left?

Trying to come in?

Yours in the grey, here, sir, at 250 at the moment.

251 anywhere else?

Selling to you in the grey at 250 unless I can do better,

for the first...

250 for the second...

Third and final time at 250.

-GAVEL BANGS

-Yours, sir, at 250.

Your bidder number is?

The successful bid of £250,000 was made by Sachin,

who bought this property with father-in-law Girish.

I met the pair of them back at the flat to find out their plans.

-Sachin, Girish, good to meet you both.

-Nice to meet you, too.

-Congratulations.

-Thank you.

-Thank you.

Tell me why you wanted to buy this flat?

It was an ideal investment.

The location was really good and, well,

he would say my beginner's luck, we got a good bargain for this one.

-Right. Are you a beginner, then?

-I am a beginner for buy-to-let.

I've got my own property where I live but by-to-let, it's my first time.

So, remind me of the relationship between you two?

I'm father-in-law, he's my son-in-law.

OK, so have you got a lot of property experience?

I have, yes.

For last 15 plus years, property, yeah.

So, did you approach your father-in-law and say,

"I need help"?

He approached me, the other way round, saying,

"Son, you need to get on the property buy-to-let ladder."

-Is that right?

-That's right, that's true.

Right, so you stepped in and said,

"If you're going to support my daughter in the way she deserves..."

Exactly!

"..you need to get on the property ladder." Wow.

So, who was the person who found the flat?

I came in here...

..saw that this is in auction and I thought

this is a really good location,

good flat, well done up and I can do

-with this one, yeah.

-I was actually away on holiday.

-Oh, OK.

And I came back and he said,

"We have found something that you will really like."

But the auction was as such

-that I didn't have the time to see the property.

-Oh, wow.

So, I just literally came back from holiday and we went

on the auction on Monday, so this is the first time I'm seeing it.

-Today is the first time you've seen it?

-Yes.

-He didn't... Had a chance to look at it yet.

-So, what do you think?

No, it's really good. It looks better than the pictures.

It's pretty much nicely done up.

The location is pretty good and I really like it.

-Really spacious, as well.

-But what are you planning to do to it?

We were just discussing today.

We're planning to change and make it wooden floor.

Wood floor, put in some nice furniture, decorate some...

-interior and...

-Yeah.

We're taking the quotes in for the double glazer, as well.

-Might going to put the new double glaze, I'm not sure yet.

-OK.

That does let it down, slightly, the windows, don't they?

Just a little bit, yeah.

So, with father-in-law leading the way, the pair plan to perform

a basic renovation and let the property out.

Don't forget, this property has a sting in the tail.

Now, the only downside I could see, really, was the management charge,

which is quite high, isn't it?

-Does that bother you or...?

-It did, initially. Um...

But now, if you look at the garden

and everything that they're maintaining outside,

we can understand why the charge is a little bit higher than we expected.

But I think...

The main thing - is it to let or is it to sell?

-The first impressions when you walk in.

-People want something like this.

-Well, it really adds to it, doesn't it?

-Yes.

With double glazing and a basic refurbishment,

they've earmarked a £5,000 budget

and a timescale of just three to four weeks

to get the property ready for the rental market.

However, it may not have happened at all

if it wasn't for Girish's subtle encouragement on auction day.

So, how was the auction?

The auction was good, very nervous, my first time.

And my first impression, as soon as I walked in...

-I was picking his hand and saying, "Yeah, yes."

-Oh, were you?

-Oh, that's funny.

-Yeah, I was very nervous.

There was so many people in there

and there's a lot of noise going on, people are chitchatting.

But eventually we had a plan on how are we going to go in the auction

and how far we are going to go,

and I think we managed within our budget, which is good.

-Are you happy with what you paid?

-Oh, yes.

-Yes.

-Well, listen, congratulations. Good luck with it.

-Thank you.

-And look forward to seeing how you get on.

-Thank you.

So, Sachin embarking on his first proper development project

under the watchful eye of father-in-law Girish.

Not too much to do, a fairly good one to start with.

How will they get on? Will they replace those windows?

You can find out later in the show.

Still to come, in Ashford, Kent, the conditions were very clear.

She wanted to go into a house where she didn't have to do

-any work at all.

-Oops!

-Oh, dear.

-Exactly.

Whilst in Edgware, London, we return to find out

if plans for a simple renovation have paid dividends.

-DION:

-Back now to commuter hot spot and former mining town,

Houghton-le-Spring.

It was here that I looked around this single-storey

former doctor's surgery that was looking a little under the weather.

# Doctor, there's something wrong with me

# My health is not at all what it used to be... #

It's obviously been left for some time.

There's a lot of work that needs to be done here.

The ceiling's out, it's going straight through to the roof.

It's a bit of a strange layout, as well.

But there's scope for this property. There's lots of floor space...

but it's a bit of a mess.

There was a teaspoon of sugar that helped the medicine go down

with this former doctor's surgery in the form of plans in place

to transform this from commercial to residential property.

Also, a guide price of just £10,000-£15,000

made this property an ideal investment

and very popular on auction day.

£34,000, selling.

Well done, sir.

It was bought on the day for £34,000 by local man

and part-time property developer Brian, who planned to create

a three-bed bungalow to rent in double quick time.

-I think this'll take about, at the most, eight weeks.

-Really?!

-Aye.

-Eight weeks from this to what you want to achieve?

Eight weeks from Monday, I think

this'll be a three-bed bungalow rented out.

So, Brian wasn't lacking in confidence

and, as well as converting this property, he hoped to build

three bungalows on the land at the rear of the former doctor's surgery.

Well, nine weeks later and we've returned to see

if Brian was the tonic this former doctor's surgery needed.

This former surgery has certainly gone under the knife

and is now unrecognisable.

Thanks to walls coming down and walls going up,

the layout has completely changed, with the property now boasting

a brand-new kitchen-diner.

As well as a lovely new bathroom.

And three good-sized bedrooms, one at the front

and two towards the back of the property.

The back garden is a work in progress

and the bungalows Brian has in mind are still in the planning stages.

But with such a massive

and impressive transformation in this existing property,

it'll be good to hear from Brian, along with lifelong friend

and new tenant John, what exactly has been done here.

The work that's been done,

we've demolished every wall all the way through the property.

I've put... Raising the floors in to comply with building regs.

Um...

Stud walls throughout, first fix, second fix

and this is the final finish of it now.

This wall, behind here, this stayed up, but this was the entrance through

into what was the receptionist's area for the old surgery.

So, we've just partitioned that,

-knocked everything through this way down.

-Put all the new stud work up.

Made a different layout out of the interior.

With such a lot of work to do here, Brian got in the professionals,

plus he had an extra pair of helping hands from a very grateful source.

Well, basically, I gutted the place.

Took everything out, hired in skips.

And, erm, I've helped all the lads, basically every job

that's been done in the house I've been there to help with everything.

He has, yes. He's worked with all the different tradesmen that's been in.

He's worked with the builders, the joiners, helping running stuff

for the electricians in the loft and that.

-The plumbing.

-The plumbing, he's pretty much been here

and worked on it from start to finish.

Ever since Brian knew that he was getting the property

I was interested in moving in.

It's been derelict for a while and, as soon as Brian mentioned

that he was turning it into a three- or four-bedroom bungalow,

me and me wife and kids decided to move in.

And we love the place, it's brilliant.

Smiles all round, then.

John gets a new home with a landlord he knows and trusts

and Brian gets a tenant he can rely on.

But, of course, the house wasn't the only project Brian was planning.

With the plot of land at the back, at the same time I was ask...

Getting this from commercial to residential use, I was already

in touch with planning to see what I could do with the land at the rear.

And there's enough room to put two small two-bed bungalows on the land.

The planning application went in for that on Friday,

and I'm pretty sure it'll get passed

cos I've been speaking to the planners on a regular basis,

throughout everything I've been doing on these properties.

So, Brian has an eye on the future,

but it's the present that we're most interested in.

And with only the back garden left to complete,

he's spent just £19,000 of his £25,000 budget.

And it's taken just seven weeks so far

making this a very impressive and quick renovation.

So, even though he has tenants in place,

with a total investment here of £53,000, it would be interesting

to hear the thoughts and opinions

of two local estate agents.

This is the second time that I've visited this property

and the changes that I've noticed is that it's been totally modernised

from top to bottom, inside and out.

A massive difference to what it used to be like.

It was an old doctor's surgery, I think, basically, but, yeah,

done a really good job, good, yep, good refurbishment.

So, with both agents impressed, let's hear valuations,

starting with rental.

For rental purposes, I would recommend that this property

would achieve £500 per calendar month.

I think, for rental, you'd be looking for £500-£525

per calendar month.

I'm pleased with the rental figures that's come in,

but I've always looked to get £500 a month for the property.

That's what I'll be getting.

I could probably get a little bit more,

but just doing a friend a good turn.

I mean, he's worked here from the start,

he's been throughout the project,

so I can't see any problems with the figures that we've got in.

That £500 a month rental equates to a yield of around a whopping 11%.

Plus Brian has the peace of mind of having a tenant he can rely on.

So, what about the resale values?

Will they be as impressive?

The property, in the current condition,

I would think would sell for around about £95,000.

If I was going to put this property on the market for sale,

I would recommend the asking price would be £95,000.

I estimated in-between £80,000-£100,000 on completion,

that's what me final figures was working out at,

so 95, that's come in as a good figure for me.

Well, that figure would mean a great potential pre-tax profit of £42,000.

So, with this project a success,

would the lifelong friends do it again?

Last time we worked together on something like this,

it was a 45-minute detention at school.

It's been a good experience, I've enjoyed doing it.

Yeah, it's been good. Aye, enjoyed.

Can't wait till he splashes out and gets some more properties

for us to work on.

Ashford in Kent has plenty going for it when it comes to transport links.

You can hit the M20 motorway down to the coast and a high-speed rail link

will whisk you into London in just over half an hour.

Or, if you're feeling a bit more adventurous, you can jump on the

train through the Channel Tunnel and head to Paris, Lille or Brussels.

# And the trains, they ran on time... #

Top that with some lush surroundings, countryside

and a lively town centre with plenty of shops, cafes and restaurants.

And the area? Well, it works for me!

You're only a couple of miles from the town centre here

and just off the A20, but that is partly the problem.

The property is just off the dual carriageway,

literally on a slip road.

Now, it's tucked down this little path at the end here,

so hopefully a touch quieter, but it's not a great start.

'OK, so the traffic's not really thundering past, but already

'you know some people won't even look at this place,

'but could that mean less interest at the auction for a hidden gem?'

First impressions of the property are... Ooh! Love, love, love it!

It is set back from the road,

nestled in the woodland behind and a lovely big, solid,

chunky detached home, all with a guide price of £275-£300,000.

Ooh! Interesting features on the inside...

Now, I do like this curved wall - really interesting!

So that's what the pulley thing on the outside was.

Look, it's the doorbell! I really like that. Fantastic wooden floors.

These will really come up lovely, once sanded.

Very interesting banister going upstairs.

We've got the lounge, the kitchen at the back,

nice-size sitting room, double glazed units, which is

a must because of the road noise. And, right at the back, a sort of...

Swedish sauna-looking conservatory.

Now, there's a lot more you could do with something like that

and, of course, in a house like this, you could extend that way,

you could extend that way...

You know, you could go all over the shop with extensions here.

Of course, subject to planning permission.

Great property and there is a lot you could do with it.

This house has style and some lovely period features.

The kitchen might not be to everyone's taste,

but it all appears in good order and the size of it is fantastic.

It leads to a lean-to, which is more greenhouse than sauna,

and, well, a little bit shabby.

But the loo down here looks clean and fresh.

I'm utterly charmed by this place.

# I want to be your property

# In a great big house by the sea... #

'Up those stairs and there's three bedrooms,

this one being my favourite, with the bay window.

And just look at that fireplace - gorgeous!

The third bedroom is very small

but could be ideal for a child or to use as an office.

The main bathroom's up here too

and I think all this floor just needs some cosmetic work.

This property is not so much about what needs to be done

but what could be done, especially when you head out to explore.

So, outside space, I hear you say.

Well, yes, this is not a standard 1930s garden.

Now, can you still see me? Because I'm still here! Yes!

This is me walking through the undergrowth

and there is some serious undergrowth, believe me.

It's almost like this house... Can you still see me?

..comes with its own forest! So, let me come up.

I'm not sure you'd have too many family games of football,

but this is incredible.

This house comes with all of this - 1.3 acres. It's enormous!

It's private, it's a little forest,

it's going to be expensive to get it right.

Major ground works, but, boy, it's enormous! And it's brilliant.

Yeah, it'd take more than a Sunday afternoon of weeding,

that's for sure, if you wanted to sculpt this to a more traditional garden.

But first, you'd need clear instructions as to what

was your land and what wasn't.

And I actually think it would be a shame to lose too much of this,

especially as you do have garden space all around you.

For that £275-£300,000 guide price,

you'd get a good-sized and great-looking property

as well as a healthy slice of Kentish rural life.

What did a local property expert make of this?

I would say the main selling points of this property are the size

of the plot because you could extend, if you wanted to.

You could put in a nice big driveway, if you wanted to.

If I was to buy this property, I would extend it and build

a double-storey extension, so you'd have a fourth bedroom as well.

If you did opt for that plan and add another bedroom,

you'd be sure to increase the value, as well as the living space.

How did she think this place would fare on the sales market?

If you were to renovate this property, in its current size,

being a three-bedroom detached,

I would say the value would be in the region of 350,

possibly up to £370,000.

Erm, however, if you were to extend it,

and have the fourth bedroom as well,

you'd probably be looking at figures around about the £450,000 mark.

And what about for rental?

After this property has been renovated,

if it was to remain a three-bedroom house,

you'd probably achieve in the region of £1,200 per calendar month.

If you were to extend it to a four-bedroom,

I would say you'd probably fetch about £1,500 per calendar month.

This house is a wonderful surprise.

An enormous amount of space and scope for your money

and in a really lovely rural setting,

just minutes from the high-speed rail link,

which goes straight into the capital.

If you could just tune out that road noise, it would be perfect...

But let's see who didn't mind at the auction.

Lot 15 now we go to, in Ashford.

At 275, I'm looking for 250, I'll take, just to get me on the way.

250, I have. Thank you, sir. 250 and 60 now. 260 on my left.

270, it's against you. 280, I'm bid. 290, it's against you.

300, do I say? At £290,000, I've got.

300, I'm looking for.

I'll take five, if it will help you.

At 295, if not at £290,000?

For the first time at 290. Come on, there must be more bidders as well.

At £290,000 for the second time, cheap house, this, at £290,000

for the third and final time, if you're sure you're all done.

You're out of it. It's with you sitting down, all done at 290.

-GAVEL BANGS

-Yours at 290, sir. F843. Thank you.

The successful bidder, at £290,000, was Baptist minister Gregory,

who's purchasing the property with his wife Janice.

Gregory knows these woods well, as he jogs here on a regular basis.

I bet he never thought he would own a piece of it.

Janice and Gregory, lovely to meet you guys.

I want to know the story of why you've ended up buying this

property at auction.

Greg's due for retirement and he's left me to go,

and look for a property because one of the things that we've always

said is that I've always moved round with Greg and changed my job.

And he said, in retirement, I can choose.

And I thought I had in my mind what I wanted...

so I've looked at some really beautiful houses, very high spec,

but never felt what people tell me,

I'm going to feel good when I see it.

-So, you were waiting for the feeling of, "I love this place".

-Yes.

And then we looked at one very near here, across the way,

and Greg actually mentioned at the time that there was a house

for sale here, and so we came down and had a look

and fell in love with it straight away.

It was a definite, "I could live there".

I think it was the trees and...

So, what feeling did you get when you saw it for the first time?

I think my first response was that because I wasn't sure Janice...

She wanted to go into a house where she didn't have to do any work at all.

-Oops! Oh, dear!

-Exactly.

# Just a matter of feeling

# Who knows, you might find something to last... #

Ah, but there's not much that beats THAT feeling.

So, now she's got the warm-and-fuzzies, a house she loves

and a setting which more than makes up for the road noise,

they set themselves a loose timescale of a year for the

works, as they are not 100% certain what the full list will be yet.

But for now, what are they thinking?

We will move in about ten weeks' time and then we're obviously

going to just do it up sufficiently to live in it.

And then give ourselves a few months,

until we get an idea as to what we want to do.

-Janice has got some wonderful grandiose schemes...

-I've got very definite... I have!

-And I will win the day, I can guarantee it.

-Yes...

Now, guys, can I ask you?

Is this the first house that you've ever purchased?

-If you've always moved around with the church...

-Second.

But it's the first significant house

because the other one was just a flat for college.

-So, this is the first time we own a house.

-This is our own. We own it.

And all those trees...

You're going to put your roots down and you've got

-an amazing forest to look out on - a woodland, if you like.

-Yes, yes.

Yes. That's ours! This bit here is ours!

Tell me exactly what you're going to be doing to this property.

We need a fourth bedroom-cum-study because Greg will still be

doing different things when he retires, so he needs his study.

I would like a larger bathroom

-and a master bedroom with an en-suite and a utility room.

-Yes!

So, we are very different in temperament.

Greg is very ponderous and I want things done yesterday,

-so it won't be very long.

-Ponderous... Did you hear that?

-Ponderous. Is that a good word?

-I'll have to think about it,

watch the telly and then say "I'll do that".

OK, there will be no watching the telly.

You've got a big project ahead of you and for starters, guys,

you've got to sort this lot out! So, what are we going to do with this?

This is amazing, but it's all on different levels,

it's all a bit awkward. That is going to be a costly job.

We would probably disagree with you.

It's not going to be too major because we don't want to do anything with it.

So, you're not looking for a perfect pruned garden?

-Not at all, no.

-Right, great. So, you are going to keep it quite wild.

Yes. Yeah, except for this plateau here,

we're going to make this more our secluded garden area

and the front bit, mostly lawn and a little orchard

and my pond-cum-lake out the front there.

So, what sort of budget have you guys got in mind?

Erm, I've got in mind £2.50... THEY LAUGH

-And obviously you haven't!

-No!

I would think, just by certain conversations I've had,

you're looking at £80-£100,000, easily, to do what I would like.

Guys, this really is exciting times ahead.

-Congratulations and well done!

-Thank you, Lucy.

-Lovely to meet you.

-And you, Lucy.

So, a wonderful project for Janice and Greg

and it's their first real home, which is amazing.

But it is a big, massive job, inside and out,

and I think nearer the hundred grand end of the estimate...

You can find out if they love their new home even more

later in the show.

Well, we've seen one project completed. What about the other two?

Ah, was it plain sailing? Were there one or two nasty surprises?

Let's find out!

Back now to Edgware, in the London Borough of Barnet.

It was here that I looked around this three-bed second-floor flat

that had a guide price of £225,000,

which for the area was pretty reasonable.

Despite needing a little updating, and definitely some new windows,

the flat was in good condition, with little work required.

However, there was one pricey downside.

The great news is the communal grounds for the blocks

here are quite sensational. Look at this!

-HE CHUCKLES

-You've got a fountain!

The downside, of course, and there usually is one,

is that to keep this looking so pretty,

and also the blocks of flats themselves in pretty good nick,

the service charge is pretty high - almost £2,500 a year.

So, that has to be factored in, definitely, to your living costs.

'Despite the management cost, it was bought on auction day for £250,000.'

-GAVEL BANGS

-Yours, sir, at 250. Your bidder number is?

'The successful bidders were novice property developer Sachin

and his father-in-law Girish,

who, on auction day, lent Sachin a little helping hand.

-So, how was the auction?

-The auction was good, but very nervous.

-My first time.

-First time.

And my first impression, as soon as I walked in...

I was picking his hand and saying, "Yes! Yes!"

-Oh, were you?

-THEY LAUGH

The pair were hoping to keep costs down with a basic renovation

and a quick timescale in order to get it on the rental market

in just three to four weeks' time.

Well, for weeks later and we've returned.

And, well, you know that all saying, if it ain't broke, don't fix it?

Well...

With the flat already in good condition,

Sachin and Girish have chosen to just add some

colour in the living room and also dress the property a little

to make it more appealing to prospective renters.

I'm also glad to report that they've had all the windows replaced

with double glazing, making the property far warmer,

energy-efficient and soundproof

Money well spent.

By keeping to their plan of a basic renovation,

Sachin and Girish will have kept costs down, which, in the long run,

can maximise their potential rental yields and profits.

Obviously, you can see the double glazing windows got done,

so all of the rooms have got double glazing.

We got the carpet shampoo done...

for the whole carpet, because there is a restriction in the lease,

so we can't change the flooring to wooden flooring,

which is what we wanted. But instead we got the carpet cleaned.

We got this wall painted,

just to give a bit more character to the flat.

And we got the furniture in,

so you can see all the furniture around you.

We got the boiler repair, so the boiler's fixed.

Pretty much, that's about it.

So we divided the work in the family.

I was looking after ordering the furniture and getting it fixed,

and Girish was, you know,

getting in touch with the double glazed window guys

and making sure that's done on time and getting a good quotation for it,

getting the boiler fixed,

and the washing machine and fridge freezer serviced - that was his part.

My wife was doing the decoration with my brother-in-law,

so they looked after the painting of this

and how we can give more character to the flat,

and they were also involved in the online tenant search.

So they were getting phone calls about tenants and stuff like that,

so it was like teamwork.

Well, that teamwork has clearly paid off,

as they already have tenants in place to rent the flat.

Yes, we've got tenants planned, lined up. They're moving in very shortly.

They like the property.

It's a family moving in, and they like the location and stuff,

so, yeah, they're pretty much ready to move in.

We thought about retiling the bathroom.

But the tenants came for a viewing

and they were happy with the tiling as it is,

so we just got the double glazed window done...

and we changed the shower tap.

No need for big changes with tenants so eager to move on.

Just goes to show what a clever purchase this was on auction day.

So, with all the work complete, how is the budget looking?

Spent £4,500,

so we are in our budget.

But we were happy to go to our budget,

if we could have got the floor done.

Added to the purchase price of £250,000,

Sachin and Girish have invested a total of £254,500.

And even though they have already found a tenant,

it'll be interesting to hear

what two local agents think of the property now,

starting with the agent who saw it originally.

This is my second time in the property.

There has been work done since the last time I was here.

It is a general redecoration.

There's been the addition of double glazing,

which is very good for the property,

very good for sound and energy efficiency.

The layout of the property works well.

It's three bedrooms, a good-sized lounge,

separate toilet and bathroom and a very good-sized kitchen.

The selling point of this property is obviously it's ready to go,

somebody could move in tomorrow.

There isn't a lot of work that needs to be done.

It's a good location. You're close to the tube station

and other local amenities, shops, leisure facilities and parks.

It all sounds very positive, but, with the flat already rented,

will valuations match up?

If I was advertising this property to rent,

I would be quoting a rental figure of £1,450-£1,500 per calendar month.

If the owner was to market this property for rental today,

it should achieve somewhere in the region of £1,450 per calendar month.

They both are I think nearly right, because we've got £1,500 now.

Yeah, we've found tenants who are ready to pay 1,500.

So I think they're good judgment.

-Good valuation, I could say.

-Yeah.

Excellent. That £1,500 rental would create a very healthy rental yield

of around 7%. But what about those resale figures?

What kind of value, if any, have the boys added to the property?

I would be looking to place it on the market,

seeking offers in excess of £300,000.

If I was to market this property today for sales,

I would market it in the region of the £310,000

and look to achieve £300,000.

I think it's pretty nearly what we think.

We think about 310, 320, yeah?

Yeah, somewhere between 310 and 320, I think, is achievable.

Well, if they did achieve the estate agents' valuation of 300,000,

that would mean a pre-tax profit of a huge £45,500 -

that's for just four weeks' work and a renovation that cost £4,500 -

making this property a very sound investment indeed

and Sachin's first foray into property development a big success.

-It's been a... It's been a great experience.

-It's very good.

A learning experience for me. Girish has done a few properties himself.

But together, yeah, it's a different experience.

Yeah, we enjoyed it, yeah.

We return now to Ashford in Kent,

where I earlier looked around

this substantial three-bedroom property

that, although it was just off a dual carriageway,

was a very attractive house.

It had bags of potential

and a guide price of between £275,000-£300,000.

And, of course, in a house like this,

you could extend that way, you could extend that way.

You know, you could go all over the shop with extensions here.

Of course, subject to planning permission.

Great property and there is a lot you can do with it.

Yep, I was pretty impressed with this one

and even more so when I discovered that it came with 1.3 acres of land,

which included your very own mini forest.

It proved to be a popular lot on auction day,

with several bidders interested, but as ever that can only be one winner.

You're out of it.

It's with you, sitting down, all done at 290...

Yours at 290, sir.

And that successful bid

belonged to Baptist minister Greg and his wife Janice.

The couple have often moved with Greg's work,

but with retirement just around the corner for Greg,

they are excited to be buying only their second property

and had very big plans in mind.

Tell me exactly what you're going to be doing to this property.

We need a fourth bedroom-cum-study.

I would like a larger bathroom

-and a master bedroom, with an en-suite, and a utility room.

-Yes!

The couple also plan to create a garden area,

but to generally leave the woodland area as it was.

So with a budget of around £80-£100,000 and a loose timescale

of around 12 months, the couple were delighted with their purchase.

It's now 16 months later

and we've returned to see how Greg and Janice have progressed.

My goodness, this house has become a home.

The two conservatories-cum-lean-tos

at the back of the property have been removed.

The interior of the property has been thoroughly cleaned and painted,

with a total rewire throughout and a little wallpapering here and there.

Whilst deciding what exactly they wanted to do with their new home,

Greg and Janice moved in and made it their own.

And, after some considered thought,

they've come up with some rather exciting plans.

So our plans have got bigger.

You, Greg, can say what the bigger plans are.

Erm, I think we...

We looked around for a builder

and then we came across two good friends of ours,

and so I asked one of them to decide which one would like the job.

So one chap said,

"I'd like the job, but I'd like to do everything associated with it."

And then he came up with some plans and suggested that,

apart from the two-storey,

to think of going up into the loft,

and he was very, very excited

about having a woodland observatory,

So we're going to go up into the loft, that will be a walk-in loft,

and it'll be surrounded by glass,

so that we can look into the woodland at any time...

should there be any birds there.

At the end, we will have a family room,

at the back here, which will consistent of a kitchen

and a dining area and probably a seating area near the glass doors,

looking out onto the woodland and the garden.

And then downstairs there will be a utility room and also a cloakroom,

and a welly room. Or, on the plans, it reads "lobby",

but we're calling at our welly room.

Then upstairs we will have four bedrooms, a family bathroom,

an en-suite on the next floor,

and then on the next floor will be the woodland observatory.

Wow, that observatory sounds incredible,

but with bigger plans comes bigger budgets.

And whilst no fixed number has been set yet,

Greg and Janice know that it will be far beyond

their original budget of £80-£100,000.

And as for their original timescale of one year,

well, that's also a distant memory.

But do they have a vague idea of a completion date?

I wouldn't like to say.

We have asked our builder this same question several times

because we'd like to know there's an end to it as well.

But we have had experience of him before,

he is a good friend,

and he did an amazing piece of work for us in the past.

And so, we're quite happy just to go at his own pace

and for him to complete when and where.

Erm, we just know that what he will do

will be very, very good.

So Greg and Janice are happy to wait

and why not when they've made it this cosy?

And whilst they're not sure of final costs of the new build,

Greg hopes it will be in the region of 140,000,

which would make a total investment here of £432,000,

which seems an ideal juncture to hear the thoughts

of two local estate agents,

starting with the agent who saw it originally.

The extension plans, what they're proposing to do

with the property, is amazing.

I love the observatory -

that steals it for me.

Erm, having had a look at the plans,

really, really impressed, actually.

They're going to almost double the footprint of the property,

having a great living space downstairs,

good-sized family bathroom, en suite

and a magnificent observatory

for looking at the wildlife.

And the back of the property is just an expanse of woodland,

so what a great place to be.

Well, the agents are suitably impressed with the plans.

Even though Greg and Janice have no intention of selling,

it will still be interesting to hear what kind of value

the property could be once the plans are complete.

Once this property has been fully extended,

it should fetch in the region of £575,000.

Once the extension has been done,

this property could sell in the order of £575,000 to £600,000.

That top valuation of 600,000 would mean a pre-tax profit

of £168,000,

but it really is just academic because Greg and Janice

have no intention of selling and hope the property will be

a part of their family for many years to come.

But I just can't wait to see it complete!

So, are they still happy with their purchase?

We were surprised that we both liked it.

Usually there's a bit of negotiation somewhere along the line.

But in this instance, I didn't think Janice would go for it,

but she did and she was quite pleased,

and she's been amazingly happy since we've been here.

Which is not unusual...

-WHISPERS

-(I'm lying - it is unusual.)

Greg, that better not go out on film.

I shall shoot you if it does!

LAUGHTER

Well, that's those three projects, but there are plenty more out there.

Yeah, so join us for some more property auction action next time.

-Yeah, we'll see you then.

-Goodbye.

-Goodbye.