Episode 63 Homes Under the Hammer

Hello and welcome to the show. Now, investing in property is not

something you should do on a whim.

You really need to think things through.

Yeah, there's lots at stake, so don't rush into anything.

Yeah. You should always do your research, and if you're thorough,

it can sometimes pay off.

So why not buy your next home under the hammer?

It doesn't matter how much research you've done -

buying a property at auction isn't foolproof.

It's true. There are no certain things in this business,

but the more research you do,

the more likely it is that things will turn out in your favour.

So, have today's buyers made the right choices?

Let's find out.

It's a trip to the east Devon coast for me.

It's a very desirable place to be, so spend your money here, and I think

it'll be money well spent.

Whereas in south Wales,

I suggest splashing the cash and knocking a few walls down.

Have one big open space - that's definitely the way to go for me.

And spend your money on this south London house, and you get a little

bit of history.

I love it! Traditional French doors.

These were here when the house was originally built.

All these properties have been sold at auction, and we'll find out who

bought them and what they paid when they went under the hammer.

Sold.

This is Budleigh Salterton in east Devon.

Two miles of glorious pebbly beach,

a lovely Victorian town centre and not so much commercialism.

You know, come here on a hot summer's day,

you wouldn't be fighting for space.

It really is absolutely charming.

There are 95 miles of Jurassic Coast to discover and a lovely seaside

town, but for now, I have a house to find.

Well, just ten minutes' walk from the beach and you're almost in the

countryside. It's little lanes, lots of trees,

a very desirable place to live.

The property I'm here to see sounds like a very interesting development

opportunity. I say "development opportunity" straight away because,

as you can see from the outside, it is looking in a right old state,

but 150,000 quid was the guide price.

That's exciting.

It does look kind of blue from the outside.

MUSIC: Song Sung Blue by Neil Diamond

But there is a decent-sized plot here.

And if you ask me, it's ripe for some blue sky thinking and a plan to reconfigure

the slightly ramshackle appearance of the place.

So, through into the property, and immediately a very strange

layout. You come into this little, sort of covered area here,

almost like a lean-to.

There's more outbuildings there.

Then up some steps into the kitchen,

it's very small and obviously hasn't been touched in many a year. And you

carry on through into the lounge area.

Another little anteroom off there.

It looks like you've got central heating, which is good.

What kind of state it's in, I don't know. So, that's it.

No, it isn't. It continues...

into this area here, almost like...

I was going to say it's very long and thin, this end of the property.

There's a loo there and just... stair...

What is going on with this place?

The ground floor just seems to go on

and on and on.

There is a lot of space here,

but it's just a bit too higgledy-piggledy for modern living, and upstairs

there is one bedroom.

That's right, just one bedroom and a very generous bathroom.

It does all feel a bit damp and tired, and without going on about it,

I'm definitely thinking about redevelopment here.

It doesn't matter which way you look at it, it doesn't get any better.

This is crazy, isn't it?

A one-bedroomed house here and it just doesn't work,

but the good news is the scope for improvement is huge.

The garden isn't massive, but there's enough space to do stuff and,

more importantly, you've got these little outbuildings, so there's already

a footprint of a property here that's much, much,

much bigger than the bit of house itself. So what are we thinking?

Well, knock that lot down and put some really extravagant extension on there.

You could even come over this way and maybe knock down this ramshackle

little garage thing so that you don't lose too much of the garden.

You can extend this way, you can extend up...

It all comes down to planning, of course.

And the other big thing it comes down to is, is it financially worth it?

It's going to cost you a bit, but round here,

properties really do hold their value, get their money back.

It's a very desirable place to be, so spend your money here and I think

it'll be money well spent.

For my money, a three,

or even four, bedroomed home wouldn't look out of place here, and as for the

layout, well, the sky's the limit.

# Blue skies smiling at me

# Nothing but blue skies

# From now on... #

We asked along a local estate agent to get his take on the property,

which went to auction with a guide price of 150,000.

The property is very dated and could do with a lot of money spending on

it, and indeed some clever extension.

And once done up, what does he think the property might rent out for?

If the property's refurbished to a good standard, including three bedrooms,

I anticipate that the rental value of the property would be around

£900 per calendar month.

And if the purchaser were to put the renovated property on the resale

market?

I believe the end value is likely to be around £400,000.

Well, it's many people's dream to own a property within striking distance

of this, and with this lot, you've got the opportunity as well to

potentially design your own home.

I'm sure it got them excited when it went under the hammer.

The house turned out to be the last lot of the day,

but a determined few stayed on for this one.

Lot 234, guiding £150,000.

£150,000 seated here.

OK, we're off. At 150.

155 anywhere else?

155. 160.

160. 170.

We'll keep in five...

And sure enough, before long, the bidding was over the £200,000 mark.

220. 225.

225. 230.

230. 240.

240. 245.

OK, have a little think for a moment.

£240,000 here.

One, 241? Two? 242.

Seated here. 242.

With you for the first time, it's against you and yourselves over here,

too. Second time at £242,000.

Third and last time of calling, if there's any advance,

£242,000 seated for the last lot of the day...

It's with you.

It was bidder 242, who paid £242,000 for the property.

And that bidder was Sue, who attended the auction with her partner, Des.

Des is a landscape designer and gardener and Sue knows her onions, too,

as it were, having worked in property development for a number of years.

I met with Sue back at the property to find out their plans.

Sue, lovely to meet you.

-Congratulations.

-Thank you very much.

Tell me why you wanted to buy this place.

The main reason was we couldn't find anything else that we actually liked

which was a done house. And then one day, out of the blue,

Keith from the agency phoned us and said,

"I've got this house coming up in Budleigh Salterton.

"Would you like to view?"

And basically that was it.

-Right.

-Erm, didn't expect to get it, actually.

I was a bit philosophical.

If I was meant to have it,

I would have it and it would be the price that I was happy to pay.

Right, and were you happy with what you paid for it in the end?

Yes, extremely.

Having looked at over 100 properties in the last 18 months,

Des and Sue were over the moon when this one came to auction, and Sue

always felt the house was destined to be theirs.

That's what I believe, and there were so many sort of, you know,

things happening and there was, like, a calling.

-What kind of things were going on?

-It was the...

way things went for the auction, you know, my registration number and...

Which was the same as the price you paid.

Yes, I know, which was...

very, very, very spooky.

-Yeah.

-So I just think it was meant to be.

Shame you weren't number 150, isn't it, really?

THEY LAUGH

That would have been nice, but I couldn't see that happening,

not for one moment, no.

Even buying at £242,000,

Sue and Des have scope to do something quite exciting here.

So, what do they have in mind, exactly?

What I've suggested to the architect is the fact that this house really

has everything ripped out of it, and we actually use this ground floor as

the new garages because the garage has got to come down, because it's

just completely in the way.

And then over the top, then we put a guest bedroom and an en-suite.

-Wow!

-And then we do some form of connection between

this old section and our new extension.

Wow!

-That's my idea.

-Yeah.

The architect actually went, "Oh, I quite like that!"

Yeah, well, it's radical.

I just gave him a few sort of criteria.

I said I didn't want to oversize the property for the amount of land, and

I didn't want to overinvest, so, you know,

I've got my figure that I want to work to.

-Which is?

-I want to...

kill it all for about 155.

Wow! Big budget.

I think it needs a big budget.

-Yeah.

-We're not looking to make any money on it.

I just want to have the home that we would like, you know,

that we've had in the past,

but we don't want the amount of garden and land that we've had in

the past. We want an easier lifestyle.

MUSIC: Take It Easy by Eagles

And what better place than this lovely corner of Devon to take it easy?

There is quite a bit to do before Sue and Des can kick back,

but they are hoping to have everything finished in a year, and they're

looking to futureproof the place, too.

We do want to incorporate a downstairs bedroom with en suite, with a sort

of a conservatory or garden room, basically because my mother,

if she comes to stay, can't do stairs.

-Right.

-So, you know, I mean, if we're still here,

we might need that in ten years' time.

Well, listen, congratulations.

-Delighted for you. Good luck with it, and I look forward to seeing how you get on.

-Thank you.

Well, Sue had a calling to this property and hopefully her plans will do

justice to the place,

but there's still that all-important planning to get before they can turn

it into the bright home that they hope for.

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

We're just 20 miles north of Cardiff now in the south Wales town of

Blackwood. The property we're here to see is just three miles away from

the centre of Blackwood and only three miles from Pengam train station, which

takes you into the heart of Cardiff.

And here we are. It's a semidetached house,

it's got three bedrooms and a guide price of £40,000 plus.

What a great start - off-street parking.

Before you get your car in here, I suggest a lawnmower,

but it's a bonus nonetheless.

OK. We're straight into a small porch here, and you've got your

stairs right in front of you going up to the bedrooms. And then into a good-size

living/lounge area.

Dual aspect, nice big windows at each end.

You have got some polystyrene tiles, but I'd definitely want to get rid of those.

They are a fire hazard.

But I've got to say, it's a carpet that I do recognise from my youth

back in Leicester.

And in here, we have got dining room and the kitchen just at the back

there. But what I have noticed is there's a fireplace just there and

another one just here in the dining room, but they're not flush,

they're sort of offset.

So, this whole wall that's taking up all this space is chimney.

I'd look to get rid of this,

depending on what you want to do with the property.

If you're looking to rent it or sell it,

it'd possibly eat into your budget just that little bit too much.

On the other hand, if you're looking to make this your home,

getting rid of this wall would create so much more space.

It will be a big job and will take a bit of time, though.

As ever, think about what the property is for before you get the

sledgehammer out, but it's definitely an option and not the only one I've

spotted.

This is an ex-local authority house and they're normally well proportioned

with good-size rooms, but look at this kitchen.

It's tiny!

Now, what I suggest is you take this wall out, cos on the other side of

this wall is the front door. So if you can imagine coming into the property

and turning left, that would bring you into the kitchen.

Save you going through the lounge,

through the dining room and into the kitchen.

I would also take down that wall there that's dividing kitchen and dining

room and have one big open space.

That's definitely the way to go for me.

I know, I'm really going for it here, and you'll be wondering what's going

to be left to hold this house up apart from RSJs, which are,

as we all know, all together now - rolled steel joists.

But modern living needs a decent-sized kitchen,

even if open-plan isn't your thing.

So, there's three decent bedrooms up here.

You've got a separate toilet, separate bathroom, and in here,

I'm guessing there's a water tank. Yes, it's the old water tank.

Now, I'd look to get rid of that, put a brand-new combi boiler in,

reposition it, possibly downstairs, out of the way, and try and create a

big family bathroom. Take this wall out,

you could even have a freestanding shower in the bathroom as well, or

put a shower over the bath and have this as storage space, airing cupboard,

whatever you want, but there's loads of scope to make a family bathroom there.

So, three bedrooms up here,

two of which are good-size doubles that just need a lick of paint,

really.

The third is more of a box room, but still counts as a bedroom.

Out the back, you've got a nice-size family garden that needs a bit of a

tidy up, and I think you'll have to get the mower out as well.

What does the auctioneer who sold it think about this rather dated semi?

Somebody needs to come in here and do a lot of work to it to get it up

to a modern spec, but at least they can see what they have to do quite

clearly. I think you could do some knocking around with it.

I think, ideally, knock the kitchen through to the dining room to create

a more open living space and then, really, it's a question of

maybe renewing ceilings, decorating throughout and then see, really,

as you go along, if there's any other bits and pieces that need doing.

The auctioneer and I agree, then, but what would all that work cost?

I think you could easily spend £20,000 on the house, and that's if you're

doing some of the work yourself.

If you gave a builder free rein to come in and do work for you,

it could be even higher,

maybe 25 or a bit more, so you'd need to watch your budget on this

one, I think, if you're going to make any money on it.

So, if that work was done,

what kind of value does the auctioneer think this property could be worth?

If this was going to be put on the open market once renovated,

I would expect it to be worth about £85,000.

And what about the rental?

If it were put on the market for rental,

it would be worth somewhere between £525 and £550 per calendar month.

This is a good, solid ex-local authority house with the potential to add

value, only if you get it for the right price.

Let's find out what it did go for when it went under the hammer.

Semidetached house, spacious garden there.

UPVC double glazed, requires some upgrading.

Wave your hand at me at 40. 35, then, if you like, just to get it started.

Two bids, I'll take, seated, because I can see you clearly. 30...

What did I say? 35, was it?

35, thank you, sir. 36, wave at me, standing up.

Thank you. 36. 37.

38. 38, madam, there, thank you.

39. And 40.

40, then, right at the back. 41. 41.

42. 42, thank you.

42. 43 to you, sir, if you want.

43, madam, thank you. 44.

44, back there if you like.

Plenty of interest in this one, then.

We re-join the bidding at 61,000.

61. 62. 62, well done.

62. 63. 64.

64. 64. 65. 66.

At 65,000, are you going to lose it, or are you going to have one more go?

66, well done. 67.

68 now?

68?

At 67, are you sure?

I'm going to have one more go at 67,000, you're going to lose it.

At 68, well done.

68. 69, so it's neck and neck now.

69? No. At 68, then, that extra bid was worth it.

At £68,000 for the first time.

Are you sure? One more if you want.

At 68,000 for the second time.

Third and last time at £68,000.

Well done, ladies.

So, the hammer fell at £68,000, and the successful bidder was Cerys.

# She's got it

# Ooh, baby, she's got it

# Ooh, baby, she's got it

# I can't do without her... #

She got it! And it's the first project between her,

her partner, Ben, and Ben's sisters, Carla and Christina.

It was Cerys and Christina who joined me back at the property to tell me

why the four of them bought this place in Blackwood.

-Cerys, nice to meet you.

-Nice to meet you.

-Christina.

-Nice to meet you.

-Congratulations to you.

-Thank you.

-What made you buy this house?

Well, my partner was interested in it,

the fact that it's a semidetached with a nice-sized garden.

The main town is a mile down the road and we're obviously right next

to a primary school as well, so quite a lot of benefits with the property.

And what was it that made you look for properties?

What are you hoping to do? Are you looking to start a portfolio,

-Christina?

-Yeah, well,

this is obviously our first one, so we're hoping to build on this.

It's going to be a learning experience, really, I think.

Anything frightening you? You're dipping your toe into the property world.

Yeah, it's a bit daunting, but we've had some experience.

The house I'm in at the minute, we've renovated that, so me and my partner sort of know

what we're going into, I suppose.

Yes, but doing up your own house is very different from doing up a house

for business, so I'm intrigued to know what their plans are for house number one.

Well, there's a new heating system needs to be put in.

We're looking at the electrics as well, a new bathroom and kitchen.

We're going to strip it right through and plaster right through and then

hopefully do the decorating ourselves.

-So, what are your skills, then? You're going to do a bit of painting?

-Yeah, painting.

I'm going to hopefully, obviously get a new carpet and just the general

-decorating then.

-And your fireplaces?

-They're all going to go.

-Everything's going. Doors?

-New doors.

-OK.

And in regards configuration of the house itself,

are you looking to change anything, knock any walls down?

-Yeah, we are, aren't we?

-At the minute,

the kitchen's really small, so we're hoping to change the dining room

into the kitchen and then use the smaller room as a utility room,

then, cos at the minute, it is very small.

We do propose with the bathroom as well,

knocking that wall through to have it as a main, but we're not sure yet.

We're going to wait on quotes and things.

OK, and what are your plans in regards what you're going to spend on it?

-10,000-15,000, we were thinking.

-Mm-hm.

OK, so you've spent 68 on it and you're going to spend 10-15,

which will give you... It'll be 83 total spend.

What are you hoping to get back in, then, when you sell it?

Well, really, we're hoping just to break even at this point.

It's our first project, but we've been looking at properties in the area.

Yeah, and they've gone for about 95, so we'd be hoping to get something

like that, but like we say...

Always. Always looking for a profit.

You've got to always look for a profit, that's the whole idea.

Come on, Christina, I want a bit more positivity off you!

-I'm not very positive, am I?

-You can do this!

# You've got to accentuate the positive

# Eliminate the negative

# Latch on to the affirmative

# Don't mess with Mr In-Between... #

Now I'm giving out positive vibes,

but there is a difference in the resale figure of the price they are

hoping for and the auctioneer's advice earlier.

Accentuating the positive, though, there are four of them,

it's a pretty solid house and they have tradespeople that can do the

work for them in that two-to-three month timescale.

Hopefully, they'll be OK.

Think positive, that's my motto.

OK, enough about the house and what you're going to do.

Tell us about yourselves. What are your day jobs?

Well, two days a week, I work for my parents.

They've got a timber haulage company,

which Cerys's partner works for and my sister, who is also involved in this.

And the rest of the week, then, I'm studying to be a nurse.

-Are you really?

-Yeah.

-Good luck with that, I wish you all the best.

-Thank you.

-And yourself, what do you do?

-I'm a teaching assistant at the minute,

but I'm also studying to be a beautician, so lots of studying going on.

-Yeah.

-Ambitious girls!

-We like to be busy, don't we?

-Yeah.

-Good on you. I wish you all the best,

I think you're doing the right thing, following the right steps.

-Good luck, Cerys. I wish you all the best.

-Thank you.

-Christina, good luck.

-Thanks.

-Take care.

This could be a good first house for the girls to start off with,

but with what they've paid for it,

I'm just a little bit worried about the scope for profit with this

particular project.

They'll definitely have to keep an eye on their budget,

but you can find out how this family project gets on later in the

programme.

Coming up, in south London, Lucy finds a house that's full of surprises.

Oh, this is not how I was expecting it on the inside!

And we return to south Wales to see what Cerys and Christina made of

their first property development.

It's been quite nice, really.

But first, we return to east Devon and the small coastal town of

Budleigh Salterton. It was here, just a few miles from the sea,

we found a house...

..with loads of rooms, but no natural flow and, incredibly,

just one bedroom.

There... The.. What is going on with this place?

# Don't make no sense... #

Yes, there was no sense in the layout in the house and it was also muddled

further by a collection of dilapidated outbuildings.

# I said it don't make no sense... #

But this was a large plot in a beautiful position and was crying out for

someone with a clear vision to bring all the elements together and turn

it into something really special.

Ready and waiting with those visionary ideas were Sue and her partner, Des...

-It's with you.

-..who bought it for £242,000 at auction.

What I've suggested to the architect is the fact that this house really

has everything ripped out of it and we actually use this ground floor as

the new garages, because the garage has got to come down, because it's

just completely in the way.

And then over the top, then we put a guest bedroom and an en-suite.

-Wow!

-And then we do some form of connection

between this old section and our new extension.

Wow!

-That's my idea.

-Yeah.

The architect actually went, "Oh, I quite like that!"

Yeah, well, it's radical.

As we know, "radical" doesn't readily come cheap and, sensibly, the couple

had a healthy budget of £155,000.

The timescale would depend on the planners.

The hope was that Sue and Des would have their ideal forever home in a

year. But as they say,

the best laid plans of mice and men, or in this case, bats, trees, wildlife,

structural surveys, planning and building consents,

it's now four and a half years later.

So, the main house is still standing,

as is the garage, so clearly a slight change of plan.

But the big change here is the removal of all the outbuildings and

the building of a new extension, which houses a bedroom with an en-suite.

There's a big lounge.

And a modern kitchen.

What a difference it makes!

But building it wasn't without its problems.

The biggest challenge was actually getting the house out of the ground.

We had to have 23 piles installed, and then we had to have the oversite

concrete poured.

And, actually, things progressed very quickly after that, didn't they?

-Yes, they did.

-With the extension out,

the old house was taken back to the shell and reconfigured to flow

seamlessly. It now has the...not planned garage,

but another large bedroom with en suite.

Upstairs, there is another bedroom, again with en suite.

And an office space.

It might be four and a half years since we've been back,

but it's been Des and Sue's home for quite a while now.

We actually moved in, um,

the 15th of August 2013.

However, it was not finished by any means.

This extension was built,

but we didn't have fitted wardrobes and there was a lot of things that

weren't complete.

-We camped on the floor at one time.

-Yeah, we did!

# Going to take it step by step

# Little by little, that's all

# And though it may be a long time

# If you and I'm strong, that's all... #

Sue has run a property development company in the past,

but they decided, because of the complexity of the work, to employ a project manager.

But Des is a retired landscape gardener so that area was down to him.

The first thing I wanted to do was create more space, so there was

a bank of soil there,

which came in very handy because I was able to use that in other parts

of the garden to fill in.

And having created more space,

it enabled me, then to put in borders and a lawn.

It was basically...

a suck-it-and-see kind of situation, you know,

and just see what's there and what can be done.

Together, they've done a remarkable job,

turning an odd mix of buildings into a luxury three-bed house with loads

of space,

a garage, workshop and beautiful gardens.

And although Sue had a healthy budget of 155,000,

I'm guessing from the end result, that might not have been enough.

All in all, I expect we've spent, including the purchase price,

about just over 500,000.

So, perhaps not surprisingly,

they were nearly £100,000 over their original budget.

But for an all-in price of just over 500,000,

they seem to have got themselves a fantastic property.

What will two local agents make of their labour of love?

First, the agent who saw it last time.

The property is absolutely stunning.

The transformation is quite unbelievable, really,

from what it was to what it is now.

In fact, if property refurbishment was an Olympic sport,

you'd have to give them a gold medal, wouldn't you?

First impressions are, it's a beautiful home, lovely location,

the attention to detail and finish is fantastic, and the way they've

linked the old part to the new part works really well, so faultless, really.

Yes, glowing comments there.

But will that be reflected in the sale price of the house Sue and Des

have invested over £500,000 into?

I would feel uncomfortable with putting this to the market at a price less

than £600,000.

I'd happily market this at a guide price of £600,000.

I think that's a very realistic figure.

Yep, in today's market.

Yep, we're happy with that.

So, a potential pre-tax profit of around 100 grand.

But this house isn't likely to be for sale any time soon.

Indeed, the design of the extension with the en-suite bedroom was to

futureproof the property for when they get older and may not want to

encounter the stairs every day.

So, are they pleased with the way it all turned out?

I feel very proud of what we've actually achieved here because it is...

It's come out basically how we wanted it.

-Yeah, it's everything we could have wished for.

-Yeah.

-Yeah.

Lucy's auction lot this time is in Streatham Vale in the London borough

of Lambeth. It's certainly becoming more popular and pricy, as this area

boasts good amenities.

Just a few minutes' walk from Streatham Vale Park and ten minutes' walk to

the station, with just a 20-minute train journey into central London,

is the property I'm here to see.

Well, it's a 1930s-style three-bedroom terrace,

it's got a garden and it was up for auction for £300,000.

I'm going to go inside.

Let's hope this 1970s pebbledash frontage isn't a sign of things to come.

Oh, this is not how I was expecting it on the inside,

although I love the space.

That's a really nice staircase.

It's bigger than I thought.

I wasn't expecting the brown swirly-whirly roses everywhere,

but if you stripped all this back, you would have the original features.

And look at this, really nice reception room here, big.

You've got a second reception room, which has got a lot more character.

Wow, it's really quite nice in there.

And if you can get past all the wallpaper,

at the back, you've got the kitchen.

A little bit disappointing - small in size.

I think I would potentially knock through this wall.

I know I always say "knock through a wall",

but I think in this case the kitchen just isn't big enough.

Not sure about this. How impractical are these cupboards?

Look, you can barely get your little plates in there.

Even though you've got quite a practical space with this house,

they are not working for me.

Groovy old tiles everywhere.

The kitchen, well, yes,

you'd need to get rid of it all and put something modern and fresh here.

Get rid of the dated decor, you could really transform this place

without too much effort.

# You're really lovely

# Underneath it all

# You want to love me

# Underneath it all... #

Well, this house is intriguing me because it's got a wider staircase than

normal, and once you take all this off here,

you're going to have lovely spindles. And I wasn't expecting all this space

up here on the landing, and it's really growing on me because this is quite

generous. Good-size bathroom through here, got another bedroom,

a master suite through there,

a little bedroom to the back and something else,

you've got the potential...

Whoopsie! ..to go up there. Now, I've looked along the street.

Lots of people have done that, so you could have a loft extension,

another bedroom, turn this into a four-bed, two-bath property, perhaps.

You've got to think about the cost implications,

but I actually think something like that would add value to this house.

And to top things off,

there is something else this charming house offers that not every home on

the street can boast.

Great news! You get this lovely little garden with the house as well.

It really is just brimming with character.

Look at these, look!

I love it! Traditional French doors.

These were here when the house was originally built.

Really lovely, and this little lean-to under here.

All this space as well, so this house really could work for a family,

but the best bit for me?

You're in London. Can you hear anything?

BIRDS TWEET

Just birdsong.

And do you know why that is?

Because behind there is a nature reserve, so there are no buildings,

you're not overlooked, just lovely trees.

Lovely!

# Yeah, my bird performs

# There she goes... #

It really does offer nice views out the back,

but now it's time for a different point of view.

What does a local property expert think of the possibilities here?

You could definitely do a lot more to the house to increase the earning

potential. One of them would be to go up into the loft and create maybe

another bedroom or two,

maybe with an en-suite, or even to do a rear extension.

I think doing a rear extension or a loft conversion would definitely

increase the value of the property for sale,

maybe not influence the value so much for rental.

This property with an extension added on and modernised to a very good

standard could easily achieve around the £465-£475,000 mark.

If the loft conversion was done and an extra bedroom was added,

then potentially it could go even higher, maybe even up to about 490-500.

I think this is a fantastic house.

It's got gorgeous original features, like those French doors I keep banging on

about, but let's not forget this '70s pebbledash brown exterior.

It doesn't exactly match up to the interior.

But what it does offer is practicality and space.

It certainly needs money spending on it, but the big question is, how much?

Do you go in the loft? Do you extend out the back?

Let's see who saw its potential at auction when it went under the hammer.

Right, lot 31, three-bed mid-terraced house.

400? 300?

Well, you've got to try. 300, yeah? 300.

305. 310.

315. 320.

325. 330.

335.

From the start, these two bidders were proving inseparable.

We re-join the bidding at 386,000.

386.

387.

388.

389.

390. 391.

392.

391, down here.

391, first time.

Second time.

Third and last time if you're all done.

Sold, 391. Well done.

The successful bidder, paying 391,000, was Robert.

Robert has been on the show before,

but you'll need to have a good memory as it was way back in 2007.

# I remember you

# I remember you

# Feels like it was yesterday

# I remember you... #

Robert came along with one of his sons, James.

James is a letting agent.

How handy is that?

It sounds like property might be in the family.

It's time to find out what's been going on.

Guys, congratulations on the house.

I know you've been on Homes Under The Hammer before, about seven years ago.

-Yes.

-That's right.

-So there's been no holding you back as far as buying

-at auction goes, then?

-No.

Not for him, certainly.

So, what was it about this house that made you want to buy this on auction

-day?

-I've been watching this area.

I've got a house just a road away and I know it's a very busy area,

but it has jumped a lot in the last

-two years.

-So, have you bought this as an investment?

Yes, yes.

And did you get a chance to view this house for your dad?

I didn't even know he'd bought the house.

So, now you've seen it, both of you,

you've been able to walk around and you've had a good look,

what do you think now, and what are you going to be doing here?

I like it. I think it's a very solid house, decent-size rooms.

There's no big damp problems, there's no issues about cracked ceilings.

All sorts of good things.

So, what I'm looking at is really just doing a lot of tidying up.

-Keep the carpets, you know...

-HE LAUGHS

-Now, you are joking me.

-I am joking you.

-Keeping the little hatch?

-Keeping the hatch.

That little serving hatch, that's handy, isn't it?

-He probably will, unfortunately.

-I have a very simple maxim.

It's the Hippocratic oath - I'm going to do no harm to the property at all.

I'm just going to keep it safe and look after it

and I am going to keep these windows.

-I think they're lovely.

-Give me five!

I am so happy! I am really happy about that because I think once you've

-painted them, they will look beautiful.

-They're in lovely condition as well.

You need to just upgrade them a little bit,

but this will be the making of this room.

Yes, it will.

Hmm, while Robert and Lucy might be on the same page about the doors,

I'm not sure letting agent James is quite so enthusiastic.

Are you not keen on them, or you just think they don't fit the property?

I don't think that they don't fit the property,

I just think that they're not maybe as modern for the area.

People aren't necessarily looking for that, knock it out and go larger.

But then again, I don't work in the area, so he might well be right in keeping them.

Now, you have got so many options here.

You can extend out the back,

like a lot of the properties along here have done so.

You can also go up into the loft.

You can also knock through here.

I think there are lots of stages, aren't there,

where you do either a very basic turnaround - tidy everything up,

but keep it cheap.

And then there's the next stage where you knock through,

create a little bathroom down here or a toilet, and then the next stage

is go into the loft as well.

At the moment, I'm thinking about doing everything clean and tidy and

-good rental.

-So, what sort of budget have you got to spend?

Probably around 20, I would think.

And along with that £20,000 budget,

Robert hopes to get the work done in two to three months, and then it

should be ready for the rental market.

I know the last time we met you on the show, you were a teacher.

Are you still doing that?

No, I moved through.

Now I'm an education consultant, more training of teachers.

So, you're the teachers' teacher!

-Paid to have arguments with teachers!

-That's even better!

It's even better than a teacher!

It makes him meticulous.

Listen, guys, it's been lovely meeting you both. And congratulations,

and it'll be really interesting seeing this property.

-Well done.

-Many thanks.

-Lovely to meet you.

-Thank you.

-Thank you.

Well, it looks like we won't be able to teach a thing or two to Robert

when it comes to property, as he's already in the know on

a few textbook property strategies.

Now, Robert has sussed that getting straight As in the decor front, well,

it doesn't necessarily add up when it comes to profit in property rentals.

Will that wall still remain?

That's what I want to know.

Find out how it gets on later in the lesson.

Oops, class. Oops, sorry, I mean show.

Earlier, we saw the end result for one property.

Hm, so unless the show has changed beyond all recollection without anyone

telling me? Nope? OK, in that case, there's two more left to see.

Yes, Martin's correct. Let's find out how they got on.

20 miles north of Cardiff is the south Wales town of Blackwood,

and it was here we encountered a three-bed semi that had plenty of land.

Something that is always good when looking for a property investment -

plenty of room for improvement.

Look at this kitchen. It's tiny.

What I suggest is you take down that wall there that's dividing kitchen

and dining room and have one big open space.

That's definitely the way to go for me.

With a sorry-looking bathroom and the house in poor decorative order,

there was definitely scope here to add value.

So it fitted the bill nicely for first-time property developers Cerys

and Christina who, together with Christina's brother Ben and sister Carla,

bought it at auction for £68,000.

# It is a new, new, new

# New start

# Now is the start... #

As first-timers, they were quite rightly being cautious about the outcome.

Well, really, we're hoping just to break even at this point.

It's our first project, but we've been looking at properties in the area.

Yeah, and they've gone for about 95, so we'd be hoping to get

-something like that.

-Always looking for a profit.

You've got to always look for a profit, that's the whole idea.

Come on, Christina, I want a bit more positivity!

-I'm not very positive, am I?

-You can do this.

# So keep your high hopes

# Keep your high hopes... #

Well, I had high hopes that trainee nurse Christina and trainee beautician

Cerys, along with input from Ben and Carla, they could do a top job here.

Having given themselves a 10-15 grand budget and a two to three month

timescale, the girls had to get to work.

And now, almost bang on three months, we are back.

Looking good, girls, looking good.

And inside...

Well, that lounge is now looking fresh and clean.

But what about that pokey kitchen?

Did they go for it?

Yes, they did, and good on you!

Well, this is obviously now the kitchen.

It was an existing wall originally,

the pantry was towards the back and then this was obviously the dining

room. We've added a breakfast bar,

the sink's now over there along with the boiler and, yeah,

we're really happy with how it's turned out cos it's a lovely size, so it's

really nice, yeah.

And upstairs, the three bedrooms aren't too shabby, either.

But what about the other big job in the house, the bathroom?

Well, this used to be two rooms, so we obviously knocked the wall right

through. We've added nice light colours in here.

We actually... This was originally the boiler room, so we knocked that through, just to create

more space.

I think it's safe to say with this property refurbishment,

they've arrived.

# Here come the girls

# Here come the girls... #

-We were pretty much here when we could be in the evenings.

-Yeah.

Yeah, we obviously, like, stripped all the walls.

We took the ceiling tiles down, which was a nightmare, wasn't it?

-That was hard work.

-THEY LAUGH

And then obviously when we'd done as much as we could,

we got the professionals in then to do the rest.

-And we were just overseeing them, really, that everything was going well.

-Mm-hm.

Christina's brother Ben and sister Carla also helped out,

but how did it work out with four people involved in the decision making?

And what was it like working together?

-Yeah, good. It's been really good.

-Yeah.

At times, you think it's going to be hard, but, you know, we got through it.

We sort of had our ideas and then we went with it.

Yeah, we didn't know how it worked, did we,

-but we sort of went for the majority and that was it, then.

-Yeah.

Well, the end result speaks volumes as to how successful it was, and

it was done bang on time.

But what about that 10-15 grand budget?

Yeah, we stayed well within the budget.

-We spent...

-10,500.

-10,500

So we were at the lower end of the budget more than the top end.

Hats off to you, girls,

that's good going to come in at the low end on your first project.

But a ten-and-a-half grand spend on top of their £68,000 purchase price

does take their total spend to 78 and a half grand.

Is that money well spent?

What do two local property experts think?

I think the changes to the property are really good.

The standard of finish is generally very high throughout.

I like the size of the kitchen.

Usually, you have a separate pantry at the front.

They've brought that into the kitchen, which will be attractive to buyers,

and they've added the breakfast bar as well.

Upstairs, there was a separate cloakroom and bathroom.

Again, they've knocked that through,

which is probably more in keeping with what modern families want.

The finish is nice and neutral and would suit pretty much any buyer.

I would have done a bit more work to the outside.

I think finishing the concrete path maybe with some slabs would have

been a nicer finish.

Yes, kerb appeal does play a part.

So perhaps something to think about in the future,

especially when you plan to sell the house on.

But could the rental figures change their minds?

If they were to rent this property out, they would get about £500,

maybe £520 per calendar month.

The property would let between £500-£550 per calendar month.

Erm, yeah, that's a really good figure, yeah.

That would be an 8% yield, but they're not interested in renting.

So, how does their 78½ grand investment fare in the resale market?

Remember, Christina thought, at worst, they would break even.

I would put this property on the market at around £100,000,

perhaps just below, 99,950.

I would market the property between £100,000-£110,000.

Yeah, that's a brilliant price. Yeah, that's...

I mean, it's obviously our first project, so we didn't really know what to expect.

It's just been a really good experience for us, but that's fantastic.

Yeah.

Yep, a potential pre-tax profit of £21,500-£31,500,

so your worries were unnecessary there, Christina.

They are certainly off to a great start, and they plan to do another

house soon, along with planning for something else as well.

Yeah, well, me and my partner got engaged.

We went on a family holiday to Dubai two weeks ago so, yeah,

he proposed there.

With Cerys's partner being Christina's brother Ben,

it seems they'll soon be sisters-in-law,

as well as successful business partners.

Time now to return to south London and the area of Streatham.

We're going to catch up with a three-bedroom terraced house that

Lucy looked at. This house looked like it hadn't been touched since the 1970s,

so there was plenty of scope for improvement inside the house.

But the best bit for me?

You're in London. Can you hear anything?

BIRDS TWEET

Just birdsong.

# It's so quiet

# Shh

# Shh

# It's oh so still... #

But if you listen carefully,

the one thing you might hear was the clamour to buy it.

The successful, bidder for £391,000,

was education consultant and part-time

property developer Robert, who along with son James,

explained how he was going to tackle this dated terraced house.

I think there are lots of stages, aren't there,

where you do either a very basic turnaround - tidy everything up,

but keep it cheap - and then there's a next stage where you knock through,

create a little bathroom down here or toilet, and then the next stage

is go into the loft as well.

So, a three-phased process looks like the order of the day, and for

the first phase of renovation,

he had a £20,000 budget and hoped to complete the work in two to three

months.

Well, nearly two years later,

we're back, so what on earth has been going on?

Well, at least from the outside, it looks in great shape,

but will inside be worth the wait?

The main changes have been cosmetic, what you actually see.

Which means, hurrah, he kept those doors!

But structurally, um,

knocked down the wall in the dining room to make it an open-plan

kitchen/diner.

Ah, so Robert hasn't held back.

He decided to really go for it, and that open plan kitchen looks so much

better. No more angle cupboards or kitchen hatch here.

He's even put in a small cloakroom under the stairs.

But what about upstairs?

Good, modern, refined, but is that it?

Nearly two years of work for a full refurbishment - I was hoping for more.

But then where else could he go?

# The only way is up

# Up, up

# The only way is up... #

This is the loft conversion and my idea of trying to make it a studio-type

place with room for a bed and not exactly a full kitchen,

but something, you know, somebody could live with.

I'm particularly pleased with choosing the doors.

With the wildlife out there, having the doors open

and nobody looking in,

I thought worked really well, so I'm very pleased with this.

And with its own bathroom, this loft space is its own self-contained unit,

which Robert is considering renting separately from the rest of the house.

With its elevated position,

it comes with great views across the revamped garden and to the nature

reserve beyond.

And it hasn't just been the house that has benefited substantially

from the refurbishment work.

I wanted, really, to have an opportunity for my son. Guy was leaving school

to work in the adult world and so I wanted to work with him here to do a

lot of stuff, so he's done most of the painting.

He just put so much into it and just got on with people, and I just saw

his social skills and the way he worked and the practical skills just develop.

It was just a great experience.

His son James also helped a little, but with a new job,

his input was more suggestions on how to get the best from the house.

Although Robert's son Guy may have found this an invaluable experience,

I'm sure there were substantial costs for Dad.

Initially, 20,000 was to have electrics and plumbing,

central heating and then decorate and then out. But, in fact,

the project changed, so I would imagine that, totally, everything

was maybe 65, possibly up to 70 if I do any bits and pieces.

Yes, and not surprising that the £20,000 budget was blown away.

But a £70,000 spend on top of his £391,000

purchase price takes Robert's total outlay to £461,000.

So, was this money well spent?

What do two local estate agents think?

I think the standard of finish is very good.

I like very much the fact that some of the

'30s features have been kept,

yet we have all the modern necessities, like modern kitchens,

bathrooms, so we have the best of both worlds here.

I think the selling features of the property are the garden,

the open-plan kitchen/living room,

the two bathrooms, which are done to a very high, modern standard, and

-a loft conversion.

-The loft conversion was a very good idea.

It gives that extra space either for Grandmother or a nanny or just a

friend who wants to stay for a certain amount of time, so an excellent idea.

Robert hasn't quite decided whether he might keep the house in the

family or rent out part or all of it.

But having invested £461,000,

he may have increased the size of the property,

but has he increased its value?

I think this property could sell for a price in the region between

£640,000 and £655,000.

I believe if this property was to be put on the market for sale,

it would sell for £640,000-£650,000.

That's a good value.

I've been watching prices and that's slightly better than I thought, so I

think, in the last six months, they have pushed quite a bit.

Yes, those values are pretty impressive, with a pre-tax profit of between

£179,000 and £194,000 potentially on the table.

But what about those all-important rental values?

As separate units,

I would expect, for the three-bedroom house, £2,000,

and the separate studio should achieve around

£400-£500 per calendar month.

I'd rent downstairs as a three-bedroom house for £1,600-£1,700 per

calendar month, and I'd rent upstairs as a studio flat for £850 per calendar month.

Those rental values could see a total income of around 2,500,

which would generate a yield of around 6.5%.

So is Rob happy with that?

I think those rental values are good.

The bad news is I've got a house in the next road and I'm not getting

-that.

-HE LAUGHS

Well, it may have taken a whole lot longer than originally planned,

but Robert and his son Guy seem to have got a whole lot more out of the

house. What advice would he give anyone?

Property is a good investment if you have a vision about where you're

going with it and you don't allow

emotionality along the way to overspend.

Well, that is the great thing about property developing -

you never stop learning, even if, like us, you've been doing it for years.

And hopefully we've been able to give you some advice along the way.

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

-See you later.

-Goodbye!

-Goodbye.