Episode 3 Homes Under the Hammer

Hello, and welcome to the show.

Now, property auctions are not for the faint-hearted.

It is an adrenaline-filled environment.

Yes, and if you are a successful bidder

you could have the keys in your hands in only four weeks.

Yes, you could. So, if you think you've got what it takes,

why not buy your home under the hammer?

Every auction lot has got a story attached to it

and, over the years, we have heard all of them.

Yeah, and guess what we've got? Three more for you today.

Yes. What are we waiting for? Here they are.

This cottage in Burton upon Trent, East Staffordshire,

comes with the potential to build out.

If you did something with this, you would double the size of the house.

And I'm building a third bedroom at this flat in Crystal Palace, London.

And then the bathroom becomes a bedroom.

I'm doing some demolition work at this bungalow in Mossley, Tameside.

As you can see...

That's not got... I'll put that back, as I found it.

All these properties were bought at auction.

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

when these homes went under the hammer.

It's gone.

Burton upon Trent in East Staffordshire

is world renowned for its beer.

It's been made here since the 11th century.

Well, not far from Burton town centre, in a rural location,

set back off the main road, is the property I'm here to see.

£85,000 plus was the guide price for this.

It's a two-bedroomed cottage.

Looks like it's full of character from the outside. Let's explore.

It really is a beautiful building, and was formerly a coach house.

But, unfortunately, it looks like it's saddled with a very leaky roof.

Hmm, OK.

Not the best of first impressions.

It all feels a bit door-y and cramped,

and that's not what you really want, is it?

The good news, there is a downstairs loo there.

But, again, knock a lot of this out if you possibly could,

because once you get in here... it starts to get a bit better.

Good news, you've got central heating, by the looks of it.

Stairs to the bedrooms there. And then the...

Strange place for a bath.

The corridor kind of wiggles round.

Again, it just...

I don't know, just doesn't seem to work as a layout.

Kitchen...needs some attention.

It's not working, is it? Not at all.

Into this room, here, which is your main living room.

And, again, it just feels a little bit cramped.

Lots of light coming in from the windows,

but, actually, through this window, what could be a potential problem.

And that is... HE LAUGHS

For a start...

Bit of a big drop out the sliding doors, there, so that doesn't work.

And you are also very, very overlooked by,

and overlooking, that house there,

so that throws up all sorts of potential issues

which need investigating.

So, downstairs layout not great, but I'm sure it could be improved.

Outside layout, not great.

You'd have to really love your neighbour.

Let's see if things get better upstairs.

Well, it's not as boxed in as downstairs, with two bedrooms

and a bathroom that is already just about ripped out for you.

There needs to be some serious layout changes in here,

and there is one feature of the house that would make that easier.

Now, here's an interesting thing.

Right at the side of the house, attached to it,

are these outbuildings. This is a large one here,

and a slightly smaller one here. Again, I love this brick

and the kind of detail of the curvature above the windows.

I think this is being underutilised,

and I'd like to see this integrated into the property.

If you look at the size of it, the footprint,

although you'd have to work on foundations and damp-proofing

and all that kind of stuff, if you did something with this

you would double the size of the house. So, this is great news.

That means talking to your local planners

to find out if permission was likely to change these outhouses

to residential accommodation.

The auctioneer who sold it came along to tell us more about this

unusual property, guided at £85,000.

It is quite an interesting property here.

Started out life as a coach house, I think,

with grooms' accommodation, to the large house

that's located just in front of us.

In the course of time, my understanding is,

it became a granny annexe

but, actually, hadn't got any planning consent

for a separate dwelling. It was always attached to the main house.

The situation now is that planning consent has been granted for it

to be properly converted into a separate dwelling.

In a sense, it's a sort of mews-type cottage,

and it's got its own charm and appeal, I think.

You can see that, if you didn't do your homework,

you might come unstuck with issues like these.

So, research, research, and just one other thing...

research. However, this house really is charming

and I definitely think worth any amount of work.

What does the auctioneer think about using the outhouses to expand?

If you renovate what's here, you actually don't have to spend

very much, because a lot of it's already been done.

You may have to renew some of it.

You'd find difficulty in spending more than about £15,000.

If you start renovating the outbuildings that are attached,

you could be talking in terms of an additional spend of 25,000, easily.

So, get it near the guide price and it could cost £100,000

to have it as is, or 125,000-plus for an extended property.

Which option will make you pots of money?

I would say that, if you did this up, made a nice job out of it -

sort of little, bijou cottagey type residence -

it would have a market value, probably, of about £165-175,000.

If you were to extend it into the outbuildings,

or configure that somehow to enlarge the accommodation,

I think you would probably push the value here up to about £200,000.

Beyond that, I think it's becoming a bit optimistic.

Optimistic, yes, but I'm a glass-half-full kind of guy,

particularly in Burton upon Trent.

The auctioneer thought rentals would be around £500 per calendar month

for the smaller version,

with only a £75 a month uplift for expanding the property.

Well, this is definitely one of those houses that you walk up to

and go, "I don't really care what it looks like inside.

"I can see its potential."

Let's see who could as well, when it went under the hammer.

So, lot 19 - where do you want to be with this one?

£85,000 to start me on the guide price.

82,000 for it?

82, who's got 80,000?

He has. Thank you. £80,000, I have, to start.

81. 81 on the far left.

At 81... 82 is bid.

82,000. 83.

83, 84...

85 now.

86 is bid.

87, thank you. 87.

88 on the far left.

88, 89...

88 away, 89...

88,500...

At 88,500, 89...

89 is bid, thank you.

89,500.

89,500. £89,500.

90? £90,000.

It's going to go, ladies and gentlemen.

Either of you at 90,500?

£90,000, then, for the first time.

For the second time. Third opportunity...

It's going...

It's gone.

A fist bump of joy from Michelle, with that £90,000 bid

securing the property.

We've seen her on the show before.

In August, 2014, she met Lucy

when she was renovating a one-bedroom flat

also in Burton upon Trent.

And, she explained, she has the skill set

to make property development work for her.

I was a project manager, and project management skills

are the same in a property, so I thought I could make it...

Make some more money out of it.

And you're thorough, you're on it - clipboard lady!

That's it. I've been walking round with a plan.

"Do it faster, come on. Quicker."

Now, it seems, she's got a far more challenging redevelopment

on her hands, so I was keen to know what she planned.

-Michelle, good to see you again.

-Nice to see you.

So, how was the project that we talked to you about last time?

-Yes, it went well.

-Yeah?

-Yes, it was just a one-bedroom flat,

so something easy to start on. But, yeah, it went well.

So why this place, then?

I wanted something a bit more of a challenge,

and I wanted something to do a bit more of the development side of it.

So this involves a lot more things like the planning and...

more development work.

-This is the fourth one now.

-Wow!

-So, since I met Lucy,

I've done another one in between.

That's a couple of weeks away, ready for rental, and now onto this one.

Right. So what was it about this place that sort of

-got your attention?

-I think it's a lovely area, and I wanted something

that was... I live in a barn at the moment,

and I wanted something to get the cottagey barn-y feel.

-So, potentially, that's what I wanted it for.

-Right.

And to develop it, potentially, for my father.

-Oh, OK. What, for him to live in?

-Yes.

-Oh, wow.

Well, that would be good.

So let's find out what you're going to do to it.

Right, well, as you can see, there's quite a bit of work to do to it.

At the moment, in the house we've got a few issues -

we've had eight water leaks so far, so...

We have no water, still, and I think, at the end of the day now,

-we'll have to replumb.

-Often the cheapest way of doing it.

-After eight leaks...

-Yeah.

-It's a case of it's just going to keep

moving and moving and moving so, that's it, now - replumb it.

So, electrics, central heating. Obviously, in here needs...

Building up to building regs, new roof, new windows, new covering...

So, a lot to be done to the main house before it's ready

for Michelle's dad to move into.

But I'm intrigued with her plans for the outhouses.

So, basically, as you come in the front door there's a toilet,

and then, if you stand diagonal to the toilet,

-that is going to be a doorway, there.

-OK.

-And that's going to come

-through there, and knock through into this room as well.

-OK.

-And this will then become what?

-This will be the lounge.

-Oh, wow.

-And next door will be the study.

-Keeping the height?

-Yes, we'll keep the height...

-Oh...

-And full glass at the front.

-Wow.

That's going to be a real gobsmacking kind of...

And then where the kitchen and lounge are at the moment,

-that's going to be knocked through to be a kitchen/diner.

-OK.

You mentioned that it might be for your dad?

-Yes.

-Have you asked him what he'd like?

-No.

THEY LAUGH

He just does as he is told.

It sounds like you're creating somewhere that's going to be

-quite spectacular.

-Yes. It should be, it should look really good.

I want it to look similar to what mine looks like, and it's got

exposed brick and things like that in mine,

-so that's what I wanted.

-Right.

Wow. Huge, ambitious plans from Michelle.

And I love that she's going to be incorporating glass and the existing

brick to create a real fusion of modern and traditional.

It should be pretty spectacular,

but there is that element of planning permission to consider.

-What's the timescale?

-Six months...

-But can vary because of planning.

-Right.

So, that's the aim, but we know, with all the shows that you see,

whenever planning get involved, it will go to a year.

Six months is what I'm trying for.

I've already engaged with the planner, and I've got the architect

-coming tomorrow, to get the plans ready to go to the planner.

-Right.

-And it's sort of a modification of previous planning...

-Oh, OK.

So I'm hoping, although it is separate planning,

it's not changing too much.

Do you have a budget for what you're planning?

I'm saying 30,000 at the moment,

but I've not had the prices in for the roof.

So you've gone from a flat, through a few other little things, to this.

-Yes.

-What's next?

Don't know. We'll wait and see.

The last one I had was a three-bedroomed semi,

so I progressed into that.

And have you basically bought to sell?

Is that what you've been doing so far?

-Bought to rent...

-OK.

-..in the short-term, sell in the long-term.

Been making you some money?

Not at the moment, but I'm hoping it will do soon.

It just seems to be outlay at the moment but, hopefully,

they'll soon start turning the cash round.

Well, congratulations, and we look forward to seeing how you get on.

Thank you very much.

So, Michelle gradually building up her property developing knowledge

with this place. A few challenges ahead, for sure,

and I'm sure she's going to learn a lot.

Buildings like this are never quite as straightforward as they seem.

You can find out how she gets on later in the show.

Crystal Palace in south-east London.

Home to the Eagles - that's the football team -

it's also home to some soaring property prices,

with the average selling price rising by 16% in the last two years.

I'm headed to today's property on a beautiful tree-lined street.

No surprises, really, that it's one of the most desirable streets

in the area. And it also has something that can never be taken

for granted in London - unrestricted on-street parking.

Now, I'm here to see a two-bed flat.

It had a guide price of £330,000,

and it's on the raised ground floor

of this really lovely Victorian building here.

So far, so good. Quite excited!

There's even more good news, with 121 years left on the lease.

The service charges did make me do a bit of a double take, though.

It's a whopping £1,200 a year, with a ground rent of £250 on top.

But look at the communal areas - sparkling.

Pristine does come at a price.

So, will I still be as positive about this flat

when I actually see it on the inside?

First impressions - a bit peachy.

Might have to change the paint colour.

Got a bathroom through there which is quite spacious, actually.

Oh! A Chelsea-blue bedroom. My son would love that.

But that's a fantastic space, it really is.

The kitchen, again, incredibly dated, but what a fabulous space -

really big. Again, a stunning lounge area, look at that.

Sliding sash windows everywhere.

Lots of lovely high ceilings and, again, another marvellous room.

Wow, it's incredible.

I think what I love about this property is the grandeur,

and the reason I say that is because you've got this incredible view -

these stunning floor to ceiling windows looking out onto the garden.

Now, I have seen better gardens than that.

It needs a bit of a manicure, I'd say.

This really is my kind of flat. I love it.

# I love it... #

Now, here comes the ideas train.

First stop - you could take this wall out and open it up

into the kitchen. That would create a lovely big open-plan space.

The next stop - a very big idea.

OK, bear with me while I have a bit of a mad five minutes, because

an idea has just struck in my mind that I want to share with you.

The bathroom, it's quite spacious.

Bit of a luxury to have a bathroom that big,

especially when you see this...

Quite a nice big cupboard. OK, you might be thinking, "Yeah, so what?"

Well, then have a look at this. In here...

A huge, huge luxury of a space.

So I'm thinking could this and that cupboard all be sort of knocked

and formed into one rather spacious bathroom?

Could we move that bathroom and put it in here,

so next door becomes the lounge area?

This could become the bedroom.

You could have access into the bathroom through this door here,

and then the bathroom becomes... a bedroom.

It will add more value, and it will make it so much more rentable.

Now, it is a big change,

and you will need to ask the freeholder's permission.

You might also want to ask their permission to change the windows

which, while quite beautiful, are single glazed

and starting to show some signs of rot.

But, even with the freeholder's permission to make these changes,

there's another restriction.

The property is in a conservation area,

which means there'll be extra rules to adhere to.

Now, conservation areas are designated to preserve

the appearance of an area and, along this road where the emphasis

is on maintaining the character of the gorgeous Victorian villas,

and any new windows that are put in will, I'm sure,

need to be replicas of the beautiful originals.

And they won't come cheap.

So, is it worth getting your cheque-book out for this flat,

guided at £330,000?

We asked along a local property expert, to tell us what he thinks

of the property.

Reconfiguring the property to add an extra bedroom can work,

but what I would say is that it must be done such that the balance

of the property is kept right.

Assuming you could make the balance work,

what could this flat do for your bank balance?

First, in its current configuration?

For selling purposes, we would put this property on the market

at around £475,000

and on the rental market we would put the property on the market

for £1,400-£1,500 per calendar month.

For selling purposes, we would market this property at £515,000

as a three-bedroom,

and on the rental market, £1,800 per calendar month.

No, the current decor in this flat definitely doesn't do it justice,

but with a bit of a face-lift and a reshuffle,

I think it could be a really lovely home for someone.

So, who was able to see past the peach and blue walls,

to what this property really could become?

Let's head to auction and find out.

Lots of interest, then, in lot four, ladies and gentlemen.

I'll start on the proxy, I think, at 330, so...

Bid's with me on the catalogue at 330,000.

Is that it? Thank you, sir.

335, thank you. I can go 340.

45?

345. I can go 350.

55?

Yeah, 355.

I can go 360, 365?

365. I can go 370...

75...

375. I can go 380, 85...

Wonderful, thank you. You've outbid the proxy.

385 on the phone, then. Let's see.

First time at 385. Second time at 385.

390, lady there in the blue.

95, on the phone, please?

No? Lady there in the blue, left of the aisle, 390,000.

First time.

Second time.

Third and final time at 390,000, ladies and gentlemen...

HAMMER BANGS

Making a quick exit after their £390,000 purchase price

are Mike and Barbara.

Mike is a former carpenter,

who has recently gone into property management,

while Barbara is an environmental engineer with Westminster Council.

But what kind of transformation

were they planning to engineer in this flat?

Barbara and Mike, lovely to meet you today.

How much did you want to buy this at auction?

We actually came and were not sure

because we had just accepted an offer on another place, so...

we thought, actually, because we loved the place, we really...

"Have a look." And we thought it's going for much more than we...

-than we actually, in the end, bought it.

-Yeah.

So, hold on a minute.

-So you'd already put an offer in on another property...

-The day before.

..the day before the auction,

and you went to the auction just to be a bit nosy, really.

-Yeah. Exactly.

-We'd seen this place, we liked it,

but the other place came through first.

So you put the offer in, you got accepted,

and then you went along to the auction

-like two naughty little children...

-Just to see.

-And then you couldn't resist, could you?

-Exactly.

It's so funny cos we had a limit in our minds of 390,000,

and the auction went up to 385 and stopped.

We just thought we'd just watch, and I turned to Barbara and said,

"Our limit's 390, what do you think?"

And she just looked at me,

-and then put her hand up.

-THEY LAUGH

-Really?!

-Yes.

-You didn't even say, "Yes, I'm going to do it"? You just did it?

-Yeah.

I love that!

I really do love that,

but I won't love it if they have not done their research.

We had twice looked at it -

he was once going on his own, then I looked at it as well.

So we have seen it before, and we really loved it

because it's such a spacious, spacious place,

and it's really, really nice.

And we love the light of it...

And we just love the location around here. It's a very good location.

We just moved into the area, and we really like it a lot,

and we think, basically, Crystal Palace has yet to be discovered.

I think the housing stock around here is extraordinary.

You've got beautiful, big, grand villas, lovely roads...

You know, I've got loads of ideas

with what I would want to do to this property.

-What are you guys going to do to really bring its charm out?

-Mm.

-You going?

-Well, you know, we do have a budget,

so that limits what we can do.

-Right, let's start with that, then.

-OK.

-So, how much?

-We think 22,000 is a budget for this place.

-22,000? I like that.

-So, you put the two on there.

-Yes.

So how are you going to spend that money?

We're going to completely redo the kitchen and the bathroom,

redecorate everywhere, probably, and the floor needs to be attended.

Beyond that, we're not sure.

We still need to walk in here and, actually, really, think,

"Is there more we want to do to it?"

Now, I did mention I had some cheeky ideas I've been mulling over -

taking out that wall between the kitchen and this room.

But, first, what do they think about moving that bathroom

to create bedroom number three?

Well, we can't afford it right now, to go that route,

but I think it could be something in the future that we would go to.

We have more finances coming at some point,

so that would be definitely a future option.

To make us a radically beautiful flat, and...

I completely hear what you're saying.

You really do have to work within your budget,

but - here's the big "but" - don't you think,

by taking that wall out, there,

-it would change this flat so dramatically?

-It would.

-Mm.

-You know, we're not talking massive extra expense.

I don't know, structurally, what that would take in terms of...

-We need to get a surveyor to have a look at that.

-That's my worry...

That you might need to, structurally... I have, I-I do...

I'm not sure if it is a supporting wall,

but that's what you'd need, to get a structural engineer in,

-to have a look at that.

-Exactly.

-But that's an amazing option, yeah.

-It's a great idea.

-There's no question.

-Are you going to follow that up?

-Just tell me you might follow that up.

-We will check it out.

So are your plans to rent this out?

-You're obviously not going to live in it.

-We are torn.

We think about it on a long-term, maybe moving in here,

-but our first plan is really to rent it out, so...

-Yeah.

I think, if we did what you just said, it would be very tempting.

When you said the transformations we could make to it,

which we hadn't thought of, obviously, before...

I mean, it is becoming very attractive, but...

It means a lot more work, so there are things to consider there.

# Once again

# She's a fast persuader

# Out of space... #

Call me Lucy "The Persuader" Alexander.

But have I convinced Mike and Barbara to make these big changes?

They certainly seem sold on them,

but they already plan to use a portion of their budget

to try and change the windows and, even with Mike's carpentry skills,

the cost of the building work for major alterations in the flat

just might be too much for them.

So, £22,000 budget - what's your timescale?

I think two and a half months, three months maximum.

So who's going to be doing the work?

I'll be managing it, and doing some, and...

a crew in to do it, you know, plumbers and electricians I know.

And Barbara?

I'm helping, actually, when I'm not working.

SHE LAUGHS

So I'm coming, actually, Fridays, because I have Fridays off,

and chipping in.

Guys, it's been lovely meeting you both today,

and I think you've got a gem of a property,

and I'm really, really looking forward to seeing

if you actually do use ANY of my ideas...

-BARBARA LAUGHS

-..and what you do to the property.

-Fantastic.

-Yeah.

-Congratulations.

-Thank you.

-Thank you.

-Barbara.

-Mike, lovely.

-Thank you.

So how far will Barbara and Mike decide to take the renovations?

Will they change the windows?

Will they change the layout?

And could they end up living here?

I certainly can't wait to find out.

Join me later on in the programme, and you can too.

DION: Coming up, green is the theme with the decor

in this bungalow in Mossley, Tameside.

Nice lime green colour. Green curtains as well.

And a renovation to make you green with envy in Crystal Palace, London.

It's fabulous. We really love it.

Time to return to East Staffordshire's Burton upon Trent,

and this charming cottage with a guide price of 85,000.

I didn't like the layout inside, but outside held, potentially,

some very exciting possibilities.

The outbuildings were just screaming -

in a gentle, cottagey way, of course -

to be incorporated into the main house.

If you did something with this,

you would double the size of the house, so this is great news.

Michelle wanted it

and dared to dream big at her new £90,000 purchase.

She had a £30,000 budget

and a six-month timescale for some ambitious plans.

There's quite a bit of work to do to it.

So, basically, as you come in the front door, there's a toilet

and then, if you stand diagonal to the toilet,

-that is going to be a doorway there...

-Oh, OK.

..and that's going to come through there,

-and then knock through into this room as well.

-OK.

-Keeping the height?

-Yes, we'll keep the height...

-Oh...

-And full glass at the front.

-Oh, wow.

And then, where the kitchen and the lounge are at the moment,

that's going to be knocked through to be a kitchen-diner.

Seven months on, and I'm very excited to see

if Michelle has brought a modern feel to this characterful cottage.

Let's have a look.

MUSIC: Paradise by Coldplay

Oh, wow.

She promised something special, and this is that.

What were disused outhouses are now in-house,

and comprise a beautiful lounge and a study-cum-bedroom.

And being able to step out of glass doors to a landscaped garden

is sensational.

# And dreamed of para-para-paradise... #

It's just about double the square footage of the house,

and means less of a boxy layout downstairs,

but Michelle has gone further to improve the layout.

She has, as promised, created a kitchen-diner,

by knocking down the wall between the two.

I love it.

It makes the whole layout feel less cramped,

and the finish is excellent.

She's continued opening up the downstairs space

by moving the toilet back, close to the front door,

allowing for the passageway to the lounge and study.

Upstairs, the two bedrooms are more modern and have new windows,

and the upstairs bathroom

is certainly more suitable for modern living.

A brilliant transformation,

and one that hasn't compromised the original qualities of the house.

But Michelle wanted a challenge

as she moved up the property redevelopment ladder,

and she certainly got it with this one.

This project was much more challenging than previous ones.

I had to learn a lot more things that I've not done before,

like building regs, planning permission...

I had some issues that were in the contract as well,

that had to be cleared, such as my water supply.

Although it had originally got some form of planning permission on it,

it wasn't to use the two outbuildings.

So I wanted to use that as proper space,

so I applied for my own planning permission.

There was a few objections.

I had to interface with the planners and there were some conditions,

but I managed to get what I wanted through in the end.

Waiting for planning added one month to her six-month timescale,

but has the high-spec finish added to her budget?

Originally, I was hoping to spend around £30,000,

but I hadn't had the quotes in for the roof and things like that,

and also, I didn't realise, because it wasn't a dwelling, previously,

I've had to apply to modern regulations,

so all external walls had to be backed down to the brick,

and that was an extra cost I'd not envisaged.

In the end, I've decided to go for full planning,

so I've gone for a higher spec,

and it's probably coming out nearer to 60.

And that £30,000 overspend has made her change from the original plan

of letting her dad live here.

Because I've spent so much on the property,

I'm probably going to mortgage it and rent it in the short-term,

but longer term I will look to sell it.

So, now the project is finished, I think it looks amazing.

It's been lots of hard work in the last few weeks,

getting to this stage and, even at the weekend,

my friend came and said, "There's no way you're going to be ready."

But here we go - this is what it is now.

And what it is now is a property ready for valuation,

which is where two local property experts come in,

including the agent who saw it

before Michelle and her team got stuck in.

I love coming back to a place

which has got loads and loads of potential,

and you're amazed at the transformation.

This is one of those.

Obviously the buyer had a lot of imagination

as to what you could make out of it,

but they've been bold and they've been brave,

and I think they've achieved a wonderful job.

My initial reaction to the property when I entered, I thought,

"This is, this is great.

"This is a fantastic house for what they've done."

Looking at what it was some time ago,

at auction earlier on this year,

they've transformed the property to a really good standard.

The layout of the property could be slightly better

but, however, they've had to use what they're left with.

Nowadays, with a three-bedroom property,

a dining room is not always necessary,

so they could have had a lounge, a kitchen,

a master bedroom with an en-suite.

Michelle's total spend is 150,000.

In the short term, she plans to rent,

so what does she stand to make?

On the rental market,

this property would achieve £750 per calendar month.

In terms of rental valuation, I think this would command a rent

of between £600 and £650 a calendar month.

Those valuations are the sort of thing I was thinking about.

And, at that top figure, it would mean a 6% yield.

Long-term, she plans to sell.

But what if she sold now?

I think, with a property like this,

it's impossible to be specific about what it's worth.

It's not going to suit everybody

but it will suit somebody who will fall in love with it.

So I would put it on the market at offers around £215,000,

and just see what the response is.

If this property was to go on the market, for sale,

I would expect it to achieve between £210,000 and £220,000.

Yeah, that seems OK. I was hoping for a little bit higher but...

..we'll see what happens.

At £215,000,

that could mean a profit of £65,000 before the usual taxes and expenses.

Michelle wanted something to test her skills,

and she rose to the challenge with an extensive renovation.

Will we see her back at the auctions?

I will definitely buy at auction again.

I would probably buy something a little easier next time.

DION: The Pennine hill town of Mossley

used to be split between the historic counties

of Lancashire, Cheshire and West Riding.

It's now in the borough of Tameside

and it's only nine miles from Manchester,

which is hard to believe when you look at this countryside.

Locally, the area around Mossley station

and Bottoms is known as Bottom Mossley,

while the area around the marketplace is known as Top Mossley.

I guess I'm in for a climb.

# To the limit, here we go

# From the bottom to the top... #

So, here in Top Mossley, in this really quiet cul-de-sac,

is the property I'm here to see.

Now, it's described as a three/four dormer bungalow

with a guide price of £80,000 to £100,000.

Now, it's got an amazing view of the hills,

but it's quite a long walk to the front door.

# Nice and easy... #

Bungalows are very popular

because they are usually on decent-sized plots

and often are suited for people with mobility issues,

but not this one.

It's a bit of a climb to the door and it has an upper floor.

Right, we're straight through the front door into a hallway,

a narrow hallway, and lots of rooms off the hallway.

That seems to me like one of the bedrooms, decent size,

nice big window.

That's the lounge, but I'll come back to that in a minute.

We have got a shower room there.

Separate toilet there as well.

Into the second bedroom - nice lime green colour,

green curtains as well.

But it has got central heating.

Unfortunately, we have polystyrene tiles, which is not good -

huge safety hazard - but it's not a bad-sized bedroom.

Anyway, let's go and have a look at that lounge.

Down the hallway, we've got more polystyrene tiles.

Really nice-sized lounge, and stairs going up to the bedrooms,

but I'm pretty sure this would not pass current safety regulations.

I'm shaking that, as well, and I can see that that's moving,

and I actually thought that was metal - it's actually plastic

and, as you can see, that's not...

I'll put that back, as I found it.

But the main feature in here is that huge window,

and those amazing views.

# Safety first... #

Safety is the first thing you would have to address in this house.

You'd have to remove the polystyrene tiles

that are throughout the ground floor,

as they can be a serious fire hazard.

# Help! Help!

# Danger ahead

# Call out the fire brigade... #

You'll also need to put a proper banister in for those stairs

and, if anyone asks about the current banister,

it was broken when I found it.

It was.

No, it really was.

Anyway, moving on...

The kitchen - it really needs a complete overhaul.

Let's take a look, and see if these are the only toilet facilities.

OK, upstairs...

and we have got a small landing here with some wood panelling,

more wood panelling, sort of makes it really dark on the landing.

Into a lovely lime green bedroom,

and these built-in wardrobes as well.

So you can gain some space

by getting rid of that built-in wardrobe.

More floor space, bigger bedroom, which is what everybody wants.

Nice big window there, letting lots of light in, which is good.

More polystyrene tiles, which is never a good thing.

Across the landing, to the second bedroom.

Now, this is the dormer part of the house.

Lots of wood again, and on the ceiling,

but the interesting thing for me is this void space right here.

For me, I'd definitely build a bathroom in there,

even an en-suite to make this your master bedroom as well.

Upstairs, all in all, there's lots and lots of options.

Obviously, you would need to sort out some roof space in this void,

which would cost you a few bob, but it's worth doing.

This place totally needs to be stripped back,

and I'd be happy to say goodbye

to that bungalow's dominant colour scheme.

# Just a little bit of green... #

Outside, green is good, but the garden is really steep

and not ideal for buyers with mobility issues or young families,

so you're going to need to think hard about your market

if you are redeveloping for resale.

What does a local estate agent make of this lot,

guided at in between £80,000 to £100,000?

It's a great property, great size.

It does need a full refurbishment throughout.

I don't think you could get away with missing anything -

it does need everything doing to it.

The layout could possibly do with a bit of changing round

to make it more suitable

because, when you do add a dormer to a bungalow,

it moves from the true bungalow

and it doesn't really always work for a family home.

You could do one of two things -

either just revamp the whole property

and leave it as it is...

However, I would probably take the next step

to put it into the next price bracket - knock through

from the kitchen into the dining area, make a big living room,

and also convert upstairs, where there's quite a large roof void.

Make the dormer bigger and have a master suite with en-suite bathroom,

because having a bathroom just on the ground floor

wouldn't be suitable for a family home.

So, some extensive work if you want to go after the family market.

Would it be financially worthwhile?

The way to find out is to look at sales and rental valuations.

If we kept the property layout as it was,

but it would undergo a programme of renovation,

we'd be looking to market the property at £145,000.

For a rental property of this size and renovated,

we would be looking for £700 per calendar month.

I actually quite like this house

and it hasn't really thrown up any problems,

so if you can see past that '70s decor,

the current layout, I think you've got yourself

quite an adaptable bungalow with amazing views,

so let's see who wanted it when it went under the hammer.

Lot 49, then.

Start me. 90?

80? I need a bid.

70?

70 here. At 70, I'm bid in fives.

75, madam. 80?

80, I've got. 85?

Can you at 85?

85, I'm bid. 90?

86, 87.

88, 89,

90, 91,

92, 93,

94, 95,

96, 97,

98, 99, 100.

100, I'm bid. 101?

A shake of the head. Here at 100.

Stop him, it's too cheap.

First time at 100.

Second time at 100.

Are you sure, Madam? You don't look sure at all!

Your husband looks sure, but you don't.

£100,000, then, I'm selling. Are you sure?

All done. Well done, sir!

'That successful bid, bang on the top end guide price,

'was made by Jason.

'He bought the property for 100 ground

'with his business partner Jamie.'

They run a building company together and know the area well,

having renovated several properties around here.

But I wanted to know their story and what they had planned for this -

their new 100-grand purchase.

-Jamie, nice to meet you.

-You too.

-Jason.

-And you.

-Congratulations to the both of you.

-Thank you.

Let's begin right at the very start. How do you two know each other?

Er, a bit of a long story. We'll keep it short.

We've got plenty of time, just carry on!

Um, I originally met Jamie a few years ago,

when I was looking to get a new roof done on my own property.

He did such a great job, I had other projects that needed doing up there

and I got Jamie to do those for me.

And he spent about 18 months on and off doing the work.

-A bit of a longer stint than was expected, Jamie?

-It certainly was.

-It was originally only a couple of weeks.

-Happy with the work?

-Absolutely.

-You sure?

-Definitely.

You can tell me later! LAUGHTER

So tell us, what made you two go into business together?

Originally, I ran my own business, which was an industrial safety

equipment business, which I sold 18 months ago.

I always had an eye of doing property and that was my plan

and, obviously, working with Jamie made it that much easier for me.

He's already got an established building firm, which I've joined.

We don't just do our own properties, we run a building company

and do customer work as well and we do these sort of in between.

'The duo renovate properties

'to sell on when their regular business is quiet

'and have a team of contractors for all trades.

'Jamie project manages, while Jason handles the finance.

'So, what do they have planned for their eighth property together?'

Well, all the skirting boards, wallpaper, doors -

it'll all be ripped out. it'll have a full rewire,

full central heating system, completely replastered,

new skirting boards, doors, etc.

Then it'll be painted and carpeted and finished.

Any reconfiguration down here at all or are you keeping the same?

Um, more or less down here will remain the same. New kitchen.

The layout will probably change in the kitchen slightly.

But other than that, the layout down here

will remain more or less the same as it is.

OK. And upstairs, Jase?

Well, upstairs, at the moment, where the rear dormer is,

it only goes about three quarters along the roof structure.

We're going to put a VELUX next to that, and there's a void up there

that will make an ideal bathroom to share between the two bedrooms.

-Put a new entrance in onto the landing.

-Oh, OK.

-So, there'll be an entrance to that?

-Yes. Yes, separate from the landing.

Perfect. A lot of scope upstairs, cos you knock a few of the walls

-and you think, "Could I knock through there? Through there?"

-Yeah.

-Have you thought about doing anything else upstairs?

-We have.

-It's all about the potential resale as well.

-Yeah.

There's always a ceiling limit and, around this area,

if we start doing that, we might not get the money back.

-What is your budget?

-We're looking to spend no more than 20,000.

That includes all the legal fees and the costs.

We've paid 100 for the property

and we hope the resale value's going to be around 140,000.

Obviously, we've got the option to rent, if we don't get those numbers,

cos it is a great rental area, there's a lot of properties...

Properties are in demand for rentals round here.

But the ultimate aim is to sell.

Jason and Jamie certainly know what they are doing.

But they have bought this property at a time

when their regular work is picking up

and think their usual timescale of 8-10 weeks might expand to 12 weeks.

So, the challenge here is time management.

So, the auction house will be seeing you two soon again, I would imagine?

-Oh, yeah.

-As long as this one goes well.

LAUGHTER

On that note, I wish you well.

-Jason, good luck, then.

-Thank you.

-I wish you all be best.

-Thank you.

-Jamie, keep an eye on him.

-I will do.

-Ha-ha!

This does feel like the perfect partnership.

This is property number eight for Jamie and Jason

and they do seem to have the balance just about right.

Jason sits in the office and crunches numbers,

and Jamie's on site project managing.

But will it be as smooth as they want it to be

when they start knocking walls down?

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

Well, as you can see, property renovation is not an exact science.

There are lots of different ways you could go.

Yes, we've seen how one buyer decided to do it.

-What about the other two?

-Yeah, have they gone off piste

or done it by the book? Let's find out.

MUSIC: U Can't Touch This by MC Hammer

Earlier on, I was in Crystal Palace, London,

to see a two-bedroom flat guided at £330,000.

And while the decor wasn't exactly PEACHY, if you know what I mean,

it had lots of space and one feature that I really appreciated.

These stunning floor-to-ceiling windows.

This really is my kind of flat.

I love it.

So, if you fancy changing these single-glazed sashes

for something more insulating...

# You can't touch this... #

..you can't touch it, because the property was in a conservation area.

So, any changes to the exterior

would have to replicate the Victorian look.

# Stop! Hammer time! #

Being unable to alter the outside

didn't stop Mike and Barbara paying £390,000 at auction.

I felt there were plenty of changes they could make inside,

like putting the bathroom in this walk-in cupboard

to allow a third bedroom in the current bathroom,

or knocking this wall down to create a big kitchen diner.

They loved the latter idea.

But there was an obstacle - their 22-grand budget.

We can't afford it right now to go that route,

but I think it could be something in the future that we would go to.

-But that's an amazing option, yeah.

-It's a great idea. Ha-ha!

-Are you going to follow that up?

-No question.

-Just tell me you might follow that up?

-We will check it out.

Four months on, and I'm keen to see if they've used my ideas

and if they've decided to forego letting and moving in themselves.

# Baby...

# Let's keep this simple... #

Well, the answer is they have kept it simple,

using the current layout and improving on what was already here.

But that wasn't necessarily through choice.

We were very excited by your ideas of taking this wall down,

in particular, and making it into a large kitchen-dining area,

and we got surveyors in to look at it.

And it was possible, it is possible.

When we looked more deeply into getting permission

from the freeholders, we found there was a clause,

which said that there were no alterations to the layout possible.

And so, it just put a dead end on that idea.

The devil is often in the detail and it's not unusual

for freeholders to have clauses like this.

When it came to the windows, they could have changed those, providing

it met conservation regulations, but they've opted not to

and have, instead, replaced several panes like for like. Why was that?

Basically, we were getting quotes up to 14-15,000

just for the actual glass replacements.

And installation costs would've been more,

probably another 8,000, I think.

-Yeah, it was definitely far beyond our budget.

-Yeah.

It would've been, taken all our budget, pretty much!

With those prices for double glazing,

they were quite wise not to change them, I think.

But how has their 22-grand budget held up?

We spent 27,000, so we were over budget.

We underestimated a little bit, the work that it is.

I think, you know, we're fine with that.

You know, the extra bit has actually added a lot of quality.

Basically, we've renovated the kitchens and bathrooms completely.

We changed all the central heating system, all the plumbing's changed,

and a lot of the electrics, too, and a complete redecoration, too.

And getting tradespeople in has extended the timescale

from three to four months.

Mike has organised all the contractors, while Barbara

has picked out the decor, including those stylish radiators.

They now plan to rent, but are they happy with their finished product?

-It's fabulous.

-Yeah.

-We really love it.

-Yeah.

That's why we really considered "Do we want to move in?"

because it's so lovely. We shouldn't be having a problem renting it out.

Barbara and Mike love it. I do, too. But will two local estate agents?

And can the couple expect a decent return on renting?

Having had a look around the flat, I think it's fantastic.

It's a very nice, very big period-style flat.

I like the fact that they've kept the flat true to its original form,

in respect of nice big windows, they've kept the sash windows,

put in nice radiators, and also the colours they've used.

In period properties, they would have used strong colours.

Back in the original times, there would've been strong colours.

The colours are nice, strong and bright. So, I love it.

The one thing that does worry me slightly is the bathroom.

We do find in the business that most people want to have an actual bath.

In here, they've put in a very nice shower cubicle,

and the bathroom looks beautiful,

but they did have enough room for a good-sized bath.

I think it's a lovely flat.

I think the refurb is done to a very high standard.

You've got lovely features around the property.

The colour scheme is perfect. It's very different.

I think the colour scheme really complements, you know,

the white skirting boards, the sash windows and the column radiators.

Thumbs up from the agents and they gave a selling price

between £470,000 and £475,000,

which, against Barbara and Mike's total 417-grand spend,

would give them a healthy £58,000 pre-tax profit.

But they want to rent, with an eye to living here themselves someday.

So, what can they expect?

In the current market, I think the property would rent for around

£1,600 per calendar month, potentially a little bit more,

because there's such a high demand in the rental market

around the Crystal Palace area.

Um, this flat would rent for, I believe, £1,450 per calendar month.

We feel, um, 1,600 is an accurate reflection

of the quality of the flat and location we're in,

and the demand that's around right now.

So, that's what we're aiming for - 1,600.

And at £1,600 per calendar month, the couple would bank a 4.6% yield.

So, has it been a good experience for them both?

Oh, fantastic.

It was a great thing to have done and a great learning experience.

And we think we'll probably go to the auctions again.

Earlier on in today's show, I was enjoying the country air of Mossley,

west of the Pennines, just nine miles from Manchester.

I wasn't enjoying the safety features of this bungalow,

guided at £80,000-£100,000.

Polystyrene tiles throughout were a major fire hazard,

although it seemed like I was a hazard to this house myself.

Hold on a minute, who wrote this?

And I'm pretty sure this would not pass current safety regulations.

As you can see, that's not...

I'll put that back...

..as I found it.

# I am a one-man wrecking machine! #

Yeah, Demolition Dion is what they call me.

But there was potential to build value

by adding an upstairs bathroom in the void space.

And there was a bit of a bidding battle at the auction.

100 grand was paid by Jason and his business partner Jamie.

Their building firm did renovations for resale

when work was a bit quiet. Jason did the finance,

while Jamie's project management skills came highly recommended.

I originally met Jamie a few years ago,

when I was looking to get a new roof done on my own property.

He did such a great job, I had other projects

that needed doing up there, and I got Jamie to do those for me

and he spent about 18 months, um, on and off, doing the work.

-Happy with the work?

-Absolutely.

-You sure?

-Definitely.

-Tell me later.

LAUGHTER

Five months on and I'm keen to see

if the boys have created another renovation revelation.

So, shall we have a look?

# Come on!

# Come on!

# Come on! #

A great transformation and I particularly like

the quality of the bathroom they fitted in that dormer void space.

We created a bathroom upstairs, which is now the main bathroom

for the three bedrooms that are up on the first floor,

and then, we've also still got the downstairs bathroom also.

# Come on! #

Hold on a minute, Jamie. RECORD SCRATCHES

I could've sworn you just said three bedrooms on the first floor?

Surely you mean two bedrooms?

Right, when we first stripped out the rooms upstairs,

we realised there was a lot of unused space in the roof voids.

So, we've put in a couple of new floors,

we've created the extra bathroom

and we've also managed to get in a third bedroom now.

Because of the extra bedroom and bathroom we put in upstairs,

we've had to involve building control.

They've come out and checked the work we've done is up to standard

and we've had to do a few extra things,

like install extra smoke alarms and carbon monoxide detectors.

Let's count. One, two, three, four...

five bedrooms! Wow! Maths wasn't my strong subject, but the boys

certainly understood adding a bathroom and a bedroom adds value.

But has it added greatly to their budget?

On the budget, we originally estimated £20,000

for doing everything, but obviously,

cos of the extra bedroom and the floors we've had to put in,

the total budget now, including all the legal fees and auction fees,

is going to come in about 36.

Money well spent, and it seems a few bob has gone on the garden, too.

Adding that extra room took their timescale from 12 to 16 weeks.

But there's a lot to like throughout this high-quality home.

I'm most pleased with the kitchen.

I think it's really good quality and it gives a good finish.

I actually decided to go for the full kitchen,

rather than a kitchen/diner, purely because of the size of the property,

and, with it having five bedrooms,

I thought that it needed a bigger kitchen.

The appliances - the cooker, the extractor -

they look really nice and give a very good finish.

I think my favourite bit is the new bathroom we created upstairs.

It looks very modern, stylish,

and it's a great use of pretty much wasted space that was there before.

I really like the finish that we've got on this property and I do hope

that it'll help it sell a lot faster than we anticipated.

I don't think you're going to have any problems shifting this house.

But what do two local estate agents think of the bungalow

now it's complete? First, the agent who saw it last time.

This is my second time in the property.

They've made a vast improvement.

The property looks really great.

They've done pretty much everything that was needed to make it

into a family home, from what was a refurbishment

to a completely finished property.

The area has become more desirable.

It's quite an up-and-coming area anyway, Mossley.

The local secondary school is now outstanding in the Ofsted report,

so family homes are really desirable.

So anything that is three and four bedrooms with a garden and parking

is what people are looking to purchase.

The property's got a great feel to it. It works throughout.

It's got a nice kitchen and bathroom, very impressive,

so it should be very popular when it comes to the market.

No real negatives to the property.

It's got everything a buyer could possibly want.

Plenty of parking, garden to the rear

and a nice finish internally in the property.

With a total spend of £136,000,

Jason and Jamie will be hoping that having five bedrooms

makes it stand out for the families buying in this area.

What sort of figures could they expect, though?

If I was placing this property onto the market,

my opinion would be offers over £165,000.

We'd suggest an asking price of £165,000.

Yeah, we're quite pleased with those valuations. We do think,

cos we know the area quite well, we can get a little bit more than that,

so we'd look to put it on the market for offers in the region of 180,000.

Well, if Jason and Jamie were to realise their figure of £180,000,

that would mean a cracking profit of around 44 grand.

They had already calculated in some fees in the renovation bill,

but there will be some other costs, like taxes, to deduct.

They've added real value to this home

and they've also added real profit into their company's coffers.

Any advice for those of us who want to follow suit, guys?

Make sure you buy the properties at the right price.

Try and stay within the budget, but if you do go over the budget,

look for properties that have potential like this one did

to add the bathroom and the extra bedroom,

so there's a little bit of room for error there as well.

Have we got you excited about the prospect of

-visiting a property auction?

-Well, I hope so.

But even if you'd rather just stay on the couch,

there is another way of getting your auction fix.

Yes, get the kettle on and the tea brewed,

in time for Homes Under The Hammer.

-We'll see you then.

-ALL: Goodbye.