Episode 70 Homes Under the Hammer

Now, the property market can sometimes seem

a little bit like the good old British weather -

unpredictable and changeable.

That is correct. But if you prepare yourself, you can reduce the stress.

Yes, and one place that can throw up

some really interesting options is your local property auction.

Auction properties offer a huge variety,

from one-bedroom flats to huge acres of land.

Yeah, from old chapels to former public toilets.

Yes, and we've seen all of those on the programme over the years.

But here is what is coming up on today's show.

A basement flat in Kilburn, London, has got Lucy very excited.

Check that out!

That belongs to that.

And I'm excited about the guide price

for this four-bed Lincolnshire lot

with loads of space inside and out.

And you get all that for your money.

And I'm in Cornwall, where, normally, I'm excited,

but this one doesn't seem to have much promise.

The bathroom is awful, virtually no space.

I love it!

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.

Are we done, ladies and gentlemen?

Lucy's in Kilburn today.

Not only does it have a main road that follows a path

dating back to Celtic times, it also has a good bus service.

But the piece de la resistance is it has multiple train stations

connecting to four different underground and overground lines.

So wherever you work, study or play,

it shouldn't be too hard for you to get there.

So, just half a mile from the nearest of those stations

is the lot that is up for auction.

Now, as you can see and hear along this busy main road,

it's also, well, loads and loads of development coming on.

But I think that's a good sign.

So, what are we here to see?

Well, it's a lower ground-floor one-bedroom flat.

It's here. And the guide price, £275,000.

I am going down!

Now, I'm not a fan of basement flats, but horses for courses.

They are sometimes a little bit cheaper

and allow you to look at property

in an area that you might not usually be able to afford.

Walking in here, you can smell a little bit of damp.

It is a bit dark and dingy.

And the first thing that strikes me

is that there are just loads of corridors.

You've got the lounge back there, a dark and dingy kitchen here.

Another corridor.

But I can't help but feel completely hemmed in.

You've got a bedroom and a bathroom round there.

It doesn't work for me. The layout is just not right.

I want to knock all these walls out

and just have one big, open-plan space

and almost start again, I think.

# I'm going to start

# All over

# Over again... #

It seems strange when you're so short on space

to use so much of it up with corridors and awkward corners.

This place is crying out for a layout change.

So, now let's address that dark and dingy problem.

Well, you need to be thinking about windows,

light wells and open spaces.

You really need to let the light flood in this flat

as much as possible

and if you were to go down the extension route with this flat,

then I would make a wall of glass doors at the end here.

But remember, you are on the ground floor

so all these windows and doors,

they need to be secure and safe.

# Even if the sky is falling down

# I know that we'll be safe and sound... #

And in case you're wondering

about the reference to an extension...

Check that out!

That belongs to that.

I mean, THAT is a corker of a garden.

There's plenty of room out here for an extension,

subject to planning permission, of course.

I mean, goodness me!

That's sunny, that's dingy,

but can you imagine having a fabulous afternoon out there,

making sure you get loads of light into that flat?

I think that is certainly a big win-win situation.

Outside space in London is always to be welcomed.

When it offers the opportunity to be turned around,

well, I can see why Lucy was cheered up.

Well, having now seen that outside,

I'm really excited about sorting out the flat's problems.

First off, it has got to be checking out the damp.

I can really smell it in here.

Whether it's a chemical-injected damp-proof course,

or the slightly more expensive option

of tanking with a waterproof membrane,

either way, with a basement flat,

you should always allow for spending a little bit of your budget

to make sure the place is always dry.

# Don't leave me high

# Don't leave me dry... #

Well, whoever bought this ground-floor flat,

hopefully, won't be left high and dry.

But with that damp and a short

74-year lease,

they could very well be.

Time to hear what a local estate agent thought of this property,

guided at £275,000.

The property is obviously in need of a lot of work,

but a great potential.

My thoughts would be to extend, that would be to put a wrap-around,

which is to extend off the back and to the side.

And, then, obviously, inside, then putting in things like wooden floors

and, obviously, for redecoration,

to try and also make it much more light.

So there is potential here,

but could that short lease cause problems?

74-year lease will be a problem,

as the lower the lease,

it can hinder anyone who's trying to get a mortgage

on a property like this.

Even if you do the work to the property,

the value of the property will still be lower,

because that would be a hindrance to the market.

So, taking all that into account, if this property was renovated,

what kind of values could we be looking at?

I believe with the lease as it is

and the property modernised to a decent standard,

I think we could achieve £425,000.

The agents think that with the lease extended,

the refurbished flat could be worth £450,000.

And if you squeeze in a second bedroom,

the resale value could be as much as 600,000.

There is a lot to think about here.

Well, the darker and the dingier the flat,

the greater the transformation that can be made.

And this place is crying out for a make over.

And remember, the trade-off for that dark basement flat

is that amazing garden.

Let's see who spotted this one

and wanted to turn this place around

when it went to auction.

Leasehold self-contained lower ground-floor flat.

260. Bidding on the phones today.

260, we start at.

265?

265 here, sitting down. 72.

72. 75?

After a slow start, the bidding heats up

and we return at 360,000.

360? 360, now.

365.

Good bid, sir. 380.

85, Stewart?

-No.

-Nice, bold bid.

That's the way to do it. £380,000, I am bid.

Stewart's hung up.

First time at 380, then.

Second time at 380.

Third and final time at £380,000.

Lot 4. Are we done, ladies and gentlemen?

So, it's sealed with a kiss.

The successful bid of £380,000 was made by Dmitri and Tatiana.

Dmitri and Tatiana are both originally from Russia,

but now live locally in Kilburn.

They came along with their dog, Lucky, to tell Lucy their plans

for this little flat with big potential.

Dmitri and Tatiana.

Congratulations.

This is a great flat.

So tell me, why did this tick the boxes for you?

We love the area and the garden and the park next-door as well,

so it makes such a big difference in terms of kids and animals.

So, you've obviously got

an amazing, lovely little furry friend in your life,

that you love, which is your dog, Lucky.

So this is ideal for him.

-That's right.

-It will be, yeah.

So where do you intend to start

and how much money have you got to do work on the place?

We have zero money.

-Really?

-Yes.

-OK.

So, how are you going to live here?

What are you going to do?

What is the plan? The bank of Mum and Dad, possibly, may lend?

Yes, it might happen.

Or maybe Grandad.

The bank of Grandad.

Just as good.

The thing is, we have lots of things being given to us,

like bathrooms, kitchens, so let's see how that will work.

OK. So, structurally there's so much more

you could do to this place to improve it,

but, obviously, if you've got no money to do any work,

you're not going to do any of those things.

-BOTH:

-We will.

-Hold on, let me get this straight.

So you want to do lots of work...

and you've got plans to do work?

-You've got ideas.

-That's right.

We put a pre-planning application yesterday, actually.

Dmitri and Tatiana have submitted plans to extend into the garden

to create an open-plan living space

with a glass roof and second bedroom.

They also want to create a structure at the back of the garden

as extra space,

and all for a very conservative estimate of £25,000 to £30,000.

Let's hope Grandpa comes through with that cash.

How are you going to fit this in with your jobs?

Tell me about your working.

-Dmitri.

-Well, I'm currently lead dancer with English National Ballet.

Really? So you're a professional dancer.

-I am.

-Wow!

So how are you going to have the time to get stuck into this?

Are you going to rely on Tatiana?

Well, no, no. I'm not going to be much longer, probably, dancing.

I'm currently injured.

-You're injured.

-Yeah, I have been for quite a while now.

Because I had a very long career.

How long have you been dancing for?

In this country, 22 years.

Wow, 22 years as a professional ballet dancer?

-Yes.

-Incredible.

Now, I know you've got a little bit of a background in interior design.

You quite like it, don't you?

I love it. I enjoy what I do,

and I've just done a little bit,

so this will be a number one experience, I think,

we are doing ourselves.

They say necessity is the mother of invention,

so this pair are going to have to be very inventive

with their zero budget and three-month timescale.

Not just inventive,

they are going to have to be very practical and hands-on.

They even intend to tackle the damp problem themselves.

Luckily, Dmitri is not exactly a DIY novice,

having renovated an eight-bedroom house in Cornwall.

-So, come on, how hands on are you?

-I'm quite good with my hands.

I know you can do a demi plie and some dancing,

but can you do bang, bang, banging and painting?

-No problem.

-For sure.

-Is he a better dancer than a DIYer?

A better dancer, I think.

-A better dancer.

-Oi!

THEY LAUGH

I need to ask this question -

when are you going to pick up that phone and have a chat with Grandad?

He is coming over, actually, quite soon.

-Hopefully, very soon.

-So you're going to make him a nice cup of tea,

-a nice cake...

-I will have some borscht.

And then hit him with the question.

I have something to show you.

-Let's go.

-He will be very excited.

He will be very pleased.

Guys, I'm so excited for you.

I hope you find the money, I hope you get the planning permission,

I hope your grandad ends up lending you some and writing that cheque.

Good luck with the project, and I'm sure it's going to look fantastic.

-Good luck.

-Thank you.

-Thank you very much.

Thank you.

Well, I have to say,

I'm concerned about Tatiana and Dmitri not having the money

to do this place up,

but let's hope Lucky brings them some luck

and they get to turn their vision into a reality.

I'm in Lincolnshire in one of the county's Gedneys.

Now, if you don't know what a Gedney is, just stay with me.

There are six South Lincolnshire villages with Gedney in their name.

There's Gedney Dawsmere,

Gedney Marsh, Gedney Hill, to name but a few.

Today, we are in Gedney Dyke.

This is the bit I like.

If someone was to visit all these places,

then and only then could they lay claim to the full Gedney.

So I can't quite stake my claim yet, but you have to start somewhere.

The property I'm here to see used to be the village shop and post office.

Now, it's with sadness, businesses like this

are becoming few and far between

all over the countryside, all over Britain.

But what happens to the shells?

This particular building has a guide price of £100,000 to £125,000

and you're not just buying a shop unit.

Let's take a look inside.

OK, so what do you get for your money?

Firstly, you get all this area here which used to be the shop.

OK, behind the counter, which I'm sure they sold a few stamps from,

into the back of the property,

and you've got a huge kitchen just to the left

and this really large lounge,

which looks in OK condition.

It doesn't look like it needs much doing to it.

We've got doors onto the patio there.

I also know there's a downstairs toilet as well, and a sun room.

And you get all that for your money.

And I've not even been upstairs yet.

This former post office is quite the package.

Along with the retail unit, kitchen,

lounge and utility room with WC,

there's also a large dining room and back garden.

So upstairs, you've got five bedrooms,

but I'm thinking this is more of a through-room

to bedroom four, just here.

So it will make it a four-bedroom house

with a really large bathroom,

but there is lots of space and loads of potential.

-# Wait!

-Oh, yes, wait a minute, Mr Postman

-# Wait!

-Wait, Mr Postman... #

Yes, wait right there.

There are three other bedrooms,

two of which are dual aspect,

and a huge bathroom with a roll-top bath.

With a relatively low guide price,

you don't need to worry about stamp duty. Get it?

This property just says "conversion to residential" to me,

but it might not be entirely straightforward,

as you would need to apply for change of use.

Now, you would need planning permission for all that.

It's not a gimme,

but I'm pretty sure planners wouldn't stand in the way

of this going from commercial to residential

if it keeps the building standing.

But before I seal the fate of this post office as a residential home,

let's get the stamp of approval from an expert.

As a commercial property, the problem we have here

is there's actually

a very small sales area

and it's in that village setting,

so in terms of commercial use,

it's not really going to be that viable.

For me, it's a conversion to residential.

So we're in agreement there.

But how best to convert this huge building?

If this was my property, what I would be looking to do

is make some structural alterations to the front

by opening out the wall in here,

particularly that leads out into the shop,

to create more of an open environment.

These days, obviously, people want the kitchen areas,

open kitchen areas.

That's the focus of the home,

and I do think it could all be opened up

and made much better use of the space.

So lots of enthusiasm for making this a great house.

But would it be worthwhile financially speaking,

bearing in mind that guide price of 100 to 125 grand?

In terms of a house, family house, finished and fully renovated,

I would expect it to achieve a price somewhere close to 200,000.

And the agent believed that the property as a family home

could rent for £550 per calendar month.

If you were to go a bit further and split the property into two flats,

they both could achieve that figure each month

so there's many, many options here.

One thing I love about Homes Under The Hammer

is you never know what crazy plans

people have for their property.

Now, this could be a shop, could be a workshop,

it could be a house,

or it could even be a full-blown cottage industry.

Let's go to auction to find out who fancied a bit of the full Gedney.

Former post office and village store.

Will you start me at 90 for it, ladies and gentlemen?

90,000, for it.

80, then, to get it in the market.

80, I have, at 80.

85 for it anywhere? 82, then.

82. 84. 86. 88.

It was the penultimate lot of the day.

Despite a sluggish start,

there were some very keen bidders that got involved.

We rejoin the bidding at £98,000.

98. 99. 100.

100 for it, at the back, from either of you?

A half to move it on.

99,500.

Both of you at 99,500. 100, for it?

At 100,000. Sitting down here at 100,000.

500 more for it, surely.

All done, then. Sitting down here in the middle at £100,000 only on it.

First time on it.

Second time.

Third and last chance.

You're both out, then, at £100,000.

The hammer is up. That's yours, madam.

Good buy.

The successful bid of 100 grand came from Helen,

who bought the property with partner Ken,

who didn't make the auction.

I caught up with Helen to find out

what she had in store for this former post office.

Helen, nice to meet you and congratulations.

You have bought yourself a post office.

-Yes!

-Can you tell us why?

No, not really.

-But it's now yours. You went to auction.

-Yes.

What made you go to auction when you'd seen this property?

Well, I've been interested in buying something through an auction

for a while, but this seemed a really good opportunity

to find out a bit about auctions.

It's not too far from where we live.

So I thought I'd come and see what auctions were all about

and maybe, you know, if it went for a sensible price,

I might actually buy it.

So, is it all new to you, the auction house...

Yes, never been to an auction before.

-How did you find it?

-Really scary.

Very, very scary.

And what made you actually go for this particular property?

When did you see it?

We saw it the week before...

..but it just looked a really good opportunity

to buy something as an investment property.

There's a lot of building for the money here.

Helen has worked as a landscape gardener

and a technician in a school, among other jobs.

Her partner, Ken, is a semi-retired health and safety officer.

They moved to the area fairly recently

and they've set their minds on

converting this into a house,

and they hope to sell it on for their pension.

So, is this a bit of a nest egg for you?

Yeah. I mean, it's a new life we're embarking on.

We're both semi-retired now, so, yeah.

New project. Something to do together.

A bit of an investment,

hopefully, that will give us a decent return.

So, Helen, what are you actually going to do with it?

How are you going to change it?

Well, the main shop is a nice big room...

but it opens straight onto the street,

so we are hoping to make an entrance hall

from the front and then extend the shop,

half of it into the existing lounge

and half of it - knock through to the kitchen to make a kitchen-diner.

So, the shop is going,

which, in this case, I do think is for the best.

Upstairs, Helen and Ken plan to convert those connecting bedrooms

into a bedroom suite with dressing room and en-suite

and add two further en-suites

to the other large bedrooms.

Sounds pretty "en-sweet" to me.

We have an architect currently drawing up some plans

and we have to get change of use for the planning.

Have you checked anything out with the planning department yet?

I've had a preliminary, informal discussion with a local planner.

But it's now with the architect.

She has to do a statement to accompany the plans

of what we are hoping to do.

So what are your plans, pardon the pun, if they don't go through?

Try again!

If at first you don't succeed, try again.

I understand it has been empty for about two years

and it's only going to fall into rack and ruin

if nothing is done with it

and, obviously, nobody is living here.

It's not being heated, it is not functioning as a shop,

so what else do you do with it?

How much are you hoping that is going to cost you,

regarding your budget?

Well, we are hoping to do it for around 30,000.

That's good going. That's good going for quite a lot of work,

what I consider quite a lot of work.

Well, we are planning to do as much as we can ourselves.

We've got a local builder on board

and he will do the work that we can't.

Do you have any skills between you?

A bit of DIY knowledge, that's all.

So, Helen, tell us your timescales on getting all this how you want it.

Well, we think, realistically, probably seven to eight months.

Helen, I am going to wish you all the best.

-Thank you very much.

-Good luck to you both, you and Ken.

-Hope it works out for you.

-Thank you. Thank you.

So Helen and Ken have decided to turn this old village shop

and post office into a residential property.

The bit I like - they're willing to get their hands dirty

and try to do some of the work themselves.

It's just another adventure in the world of property developing.

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

Coming up...

In Cornwall, I see a property which I can only describe as...

Very, very unique.

Very, very unmortgageable.

And we return to Lincolnshire

to check out the post-office renovation.

We learned a lot about ourselves and a lot about each other, as well.

But first, it's back to Kilburn in London,

where Lucy looked at a one-bedroom basement flat,

but the words dingy and damp didn't even begin to cover it.

But there was one very big plus point.

Check that out.

That belongs to that.

I mean, that is a corker of a garden.

Outside space and still room to extend

meant a great opportunity

to reconfigure all those hallways to nowhere.

And Russian couple Dmitri and Tatiana

spotted the potential when they paid £380,000 for it.

However, there was one small problem.

How much money have you got to do work on the place?

We have zero money.

-Really?

-Yes.

-OK.

So how are you going to live here?

What are you going to do?

-What is the plan?

-I don't know, maybe family will help.

The bank of Mum and Dad, possibly, may lend?

Yes, it might happen.

Or maybe Grandad.

So, in the hope of borrowing money from family,

they had a planned budget of £25,000 to £30,000

and a timescale of three months.

Now, 15 months later, we're back.

# Light up

# Light up... #

Wow! No dingy dampness here.

The front reception room is now a lovely, tasteful bedroom,

thanks to Tatiana's design skills.

And there is now a fabulous bathroom.

So let's see if they've literally turned

the rest of this house around.

Wow! The flat has been extended,

but not just with one extension, but two...

..with the side extension housing a smart, modern, streamlined kitchen.

With the original bedroom and hallways removed,

they've managed to create a separate dining area and fantastic lounge...

..whereas the larger rear extension

houses a bright second bedroom with large windows

which will have blinds.

The couple did want to have one large extension at the back,

but planning would not give them permission for this.

We've got two extensions at the back,

which is great, but they are a little bit smaller

than we thought they could be, but we like what we have created.

At the rear of the garden, we created another room.

Well, it's more like a studio, I think.

It can be used for anything.

It can be a shed or storage or office, bedroom.

You name it.

Although their initial planning application was rejected,

they have maximised the space inside and out

with a lot of inventive thinking and some lovely design.

The bathroom has also been modernised to a high spec.

The flat has been rewired and replastered throughout.

But did Dmitri get to use those DIY skills?

I laid the floor, dug the soil.

I've done a bit of everything, I think.

Dmitri may be pretty hands on,

but one thing the couple did get was specialists in for the damp.

I think that was a good decision.

If you're going to decorate a place to this standard,

you want guarantees for the damp treatment.

What I love most, though, is Tatiana's interior design.

I think we tried to use everything we had, really,

because of the money we have spent,

so we didn't have that much to spend in terms of redecorating.

So it's kind of, I don't know, retro or mix-and-match.

Well, whatever you want to call it, it's a triumph.

The couple were hoping to borrow from the family

to get the work done, and they thought they might spend 30,000.

So how much have they spent?

I think, in terms of the budget, we've been very optimistic.

As soon as we started the work, it was just...never ends.

Yeah, we said it was going to take us 30 or 50,000,

but I think it is close to 150 or 200.

Yikes! That is an overspend.

Thanks to Tatiana's grandfather and their family and friends

who have lent the couple the money,

they have been able to raise the money they needed.

A big thank you to all, I think.

It wasn't just the budget that went out the window, though.

The three-month timescale went way over.

But to be fair, they do have a very good excuse,

and he is called Daniil.

And he is four months old.

Hello, Daniil.

So, with the baby and Lucky the dog, is this flat big enough?

I think we need extra rooms again because we have a little one now,

so, I don't know, maybe we'll move here and live for a while...

..or maybe we'll sell straightaway,

because we need to pay our friends back.

So they've got a lovely little bundle,

but will they get a return on their £580,000 investment?

We invited along two local estate agents

to hear their opinions on the property...

..starting with the agent who saw it last time.

The changes to the property are completely different

to what I expected.

They've really done a great job.

I think the extension has been the right thing to do,

what it's done is maximised the amount of space

they could achieve on the property by doing so.

Some of the really good selling features of this flat

is that it's a nice

light, bright, airy flat.

Offers really good size in terms of accommodation,

and also has the benefit of a private garden.

One thing they haven't done yet is to extend the lease,

so how would that affect potential resale values?

I believe the flat will achieve around £700,000

with a short lease

and £750,000 with a long lease.

I think with a short lease,

this property would achieve somewhere around the £700,000 mark

and if the lease was extended,

then I believe we could achieve more like £750,000 to £775,000.

That total top valuation of £775,000

should be achievable if, instead of extending the lease,

they buy a share of the freehold

and that is their intention.

That should cost around £30,000, so with a total spend of £610,000,

that could mean a pre-tax profit of 165,000.

What do Tatiana and Dmitri make of that?

-Great!

-Very good.

-Yeah, yeah.

That's around what I thought it was going to be.

So it's good news.

What's next for their growing family?

I think we like it here, but in terms of we need extra space.

If we are going to be selling it is going to take some time anyway,

so we will get a chance to live here anyway.

And enjoy, actually, the garden, yeah,

and do a little bit extra, you know...

What do you mean extra?

There's no more!

THEY LAUGH

This is Liskeard in Cornwall,

a thriving town just on the edge of Bodmin Moor.

And along with the train station and plenty of amenities,

it even has a regular livestock market every other Tuesday.

Well, just five minutes from the centre of Liskeard was a property...

..that's one of those you look at in the auction catalogue and think,

"There must be some kind of a misprint."

Because up for auction was a two-bedroom bungalow

with a guide price of £50,000 to £75,000.

Mm.

Must be a typo.

Houses around here usually fetch hundreds of thousands...

..but the bungalow I'm about to see

isn't your run-of-the-mill bricks and mortar property.

HE LAUGHS

No, it wasn't a misprint, was it?

It is a very, very unusual little bungalow, this.

How do I describe the construction?

Well, non-standard, it most certainly is.

Very, very unique. Very, very unmortgageable.

What have we actually got?

We've got a little bathroom towards the left there.

A living area, two bedrooms.

That's the kitchen, which, as you can see, is fairly basic.

I mean, it is like a little sort of holiday cottage of years gone by.

Actually, it reminds me,

when I was a child growing up, my grandparents and family

had a place they called "the bungalow."

And it was a place we used to escape to in the summer

and it was added on to over the years by family members

who'd bring old sheds and bits of tree and panels

and whack it all together.

And it turned into this hodgepodge kind of mismatch of a property,

where I had the most wonderful time as a child.

So you'll have to excuse me,

because my balance as a property developer

is probably going out the window at the moment,

because I am transported back

to when I was six or seven or eight or nine or ten or whatever it was

and I'm in this lovely house which I can actually smell and...

-HE INHALES AND EXHALES DEEPLY

-So, actually, you know what?

Who cares? I think it's great!

-# Times!

-Those happy times

-# Times!

-Down by the riverside

# Listen to the birds sing Ah-ha... #

Yes, happy times indeed.

And these prefabricated buildings

were very much a feature of that time,

predominantly built after the Second World War.

Only trouble is,

they were only meant to be a short-term housing solution

and maybe last up to 50 years.

And yet, here it still is.

Though I'm thinking, "Maybe not for much longer?"

Well, let me take off my nostalgia-coated

rose-tinted spectacles for a while

and get a bit more practical

about what you could actually do with this plot.

As plots of land go, I reckon it's really good.

You've got electricity on-site,

there's a few houses around,

there may be gas on-site.

So, apart from the fact it's quite hilly,

which you would probably factor into any design,

yeah, I think it's got a lot going for it in terms of a plot of land.

What you would have to do before you did anything, though,

is, obviously, get rid of the existing building.

Now, one big issue here you'll notice straightaway,

that corrugated roof, that is asbestos.

A lot of the panels that they used to build these things

are also asbestos,

so it's going to take a specialist contractor to get rid of those.

That is going to cost money.

So site clearance is definitely going to have to factor

into your budget, but once you have done that,

can you imagine what you might be able to build here?

A lovely location so close to Liskeard.

Yeah, I think it's got great legs.

Effectively, you should view this as a building plot

and building plots like this are hard to find.

And to me, that £50,000 to £75,000 guide price

well, it makes it even more tempting.

# Hard to beat

# Hard to beat... #

But what does a local estate agent think about what's on offer here?

My first impressions of the property -

what a wonderful spot!

You're so close to beautiful moorland.

The first thing you notice,

obviously, the property is of non-traditional construction,

therefore offering an opportunity for demolition and rebuilding.

You have got a nice-sized plot.

The gardens do surround the property,

and, actually, you've got some amazing views

from one part right over to the moorland.

So we are both agreed this prefab is really a plot.

So can we assume that since there is a building here,

planning permission shouldn't be an issue?

With that £50,000 to £75,000 guide price, and, say,

£140,000 to clear the site

and build a three-bedroom dormer bungalow,

I reckon with a fair wind,

you can see an all-in spend of around 215,000.

So could that see any profit?

If a three-bedroom dormer bungalow was built here,

I would suggest that the price range,

depending on specification, of course,

because things do vary,

could range from £225,000,

and up to as much as £275,000.

Well, it's full of asbestos, it's, obviously, disastrous inside.

The kitchen is dreadful, the bathroom's awful.

Virtually no space.

I love it! What you are buying here is not the house as it is,

it's the opportunity.

Potentially, it is a building plot, but in the meantime,

it's just something that, for me, sets off nostalgia.

It's just...

HE SIGHS

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

Lot 141, this is for the detached bungalow with two bedrooms.

It is a non-traditional construction in a rural location.

Why don't we start at 65?

Does that bring somebody in?

Yes, I thought it might. Thank you, sir.

65, then 66, if you like.

70. Good strong bid, sir.

Thank you very much for that. £70,000.

How about 71, sir?

71? 71, he will.

72? 75,000...

So, there was some determined bidding going on.

And we rejoin with bids now at 85,000.

85.

86.

87.

88.

89.

Yes? 89.

Didn't look happy about it at all.

£89,000, we've got.

90, sir. 90's back.

91. No?

£90,000 is your bid, sir.

90,500 anywhere else?

First time, then, at £90,000.

Second.

Third and final time.

All finished?

Yours, sir. Very well done.

After a bit of a tussle,

the non-standard bungalow with land was sold for £90,000.

The successful bidder was Craig, who was bidding on behalf of his son,

also called Craig,

and Craig's partner, Zoe.

They have three children,

two-and-a-half-year-old Niamh

and 15-month-old twins Craig and Adelaide.

Craig, Zoe, great to meet you both.

-Nice to meet you.

-Congratulations.

-Thank you.

-Exciting, isn't it?

-Very.

-Tell me why you wanted to buy this house.

Because we could never afford to buy the house

that we eventually want to live in

so we're starting slowly and your dad found this one

and we fell in love with it.

So you've more bought the location

-rather than the house itself?

-Yeah.

Building plots are about the same money.

We get to come into a building plot that's habitable.

Right, you are already viewing it as a building plot, are you?

-Yeah.

-So the house is doomed.

It is a glorified caravan, really, is what it is at the minute.

It's going to have its few years,

but it is definitely being knocked down.

OK. Tell me more, then.

Your plan is to keep it for a few years and run it like this?

Going to make it as habitable as possible as quickly as possible,

move in, save up a lot of money.

The mortgage deposit went on cash-buying this place,

so now it's start again

and put funds back in place to get ready for a self-build mortgage.

With the non-standard construction of the build,

this had to be a cash buy.

Sales director Craig and Zoe are currently renting nearby.

They have used up their current funds,

so it's back to scratch with the savings.

They are determined to create their own family home near friends

and family in this lovely location.

But what about planning permission?

Could it all come crashing down?

Do you have any idea what they would allow you to build here?

I have spoken to a planner before,

cos that was my biggest concern.

So I spoke to a planner before we came here.

He didn't have any concerns about putting a 2-storey proper house up.

-Maybe dug in to the...

-Yeah.

-..slightly?

We are looking more at...I'd prefer a dormer.

I just think, it is a nice plot,

but I don't want it to be filled with house.

Right.

And I want to fit wardrobes in.

I will probably be overruled.

Well, if you have a dormer, it's limited space.

How many bedrooms?

At least four. It would be nice to have one for each of the children

after a few years of sharing and it would be nice to have a spare.

So, who is going to do the work on building this dream house?

-Lots of men we know.

-Lots of men you know.

-Her dad's a builder.

-Oh, that's useful.

Very useful, yeah.

As for general workmen, we've got a lot of boys

-that can set their hands to work.

-Are either of you two handy?

-SHE LAUGHS

-I will put my hand to anything.

Why did you make that funny noise?

-Sorry.

-No, no, it's a good noise, it was more of a shocked noise.

I wouldn't describe you as a DIYer.

I'm a project manager.

-He's a good delegator.

-What does that mean?

He paid one of his friends a tenner once

to mow the lawn.

-To mow the lawn?

-Yeah.

-To mow the lawn?!

He'll have to get used to it now, though.

I prefer delegating, but, yeah, no, I'm going to have no choice.

I'm sure he'll be fantastic when it comes to actually doing stuff,

cos it's his own house

and he'll be more excited about it.

And Craig's got plenty of lawn here

to improve his lawn-mowing skills

and a property perfect to practise and learn some DIY skills.

So, in the meantime, what are you going to do to it,

bearing in mind you've got lots of asbestos,

so you've got to be very careful

about touching anything, haven't you?

-We're not touching it.

-It's internal.

It's just going to be completely internal works.

-Redecorate.

-A bit of paper on the walls.

-Cover everything.

-Paint the floor, kitchen, bathroom.

-Pretty much it. And then move in.

-OK. As soon as possible?

Yeah.

Get an oil-fired boiler in, hopefully, for winter,

for the cold months.

That would be nice.

It is just something we can transfer over to the new project.

Whatever we buy there is going to go in the new-build.

Do you have some idea of budget at this stage?

Budget for doing this up or for...?

For doing it up, we'll say a few grand or something.

Obviously, not going to get a boiler for that.

-As cheap as possible.

-And then actually, the bigger project.

The build.

100, escalating with the cost of getting all this out.

-I think the actual build cost is going to be about 100.

-OK.

And then the timescale?

Three to five years for me.

It is just simply finances.

We put every egg in the basket to get this place.

Now we've got to start from scratch again, so it'll be a few years.

-A good few years.

-But overall, I'm excited for you.

We are excited. It is our first home together,

and it doesn't matter how long it takes

or what it looks like.

It's our family home so it will be worth it.

Well, look, we can't wait, but we'll have to...

-THEY LAUGH

-..to see how you get on.

-Good luck with it all.

-Thank you.

-Thanks a lot.

Nice to meet you both.

Aw, well, if you would want this house to go to anyone,

it couldn't have been anybody more perfect than Craig and Zoe.

HE SIGHS

Yes, it's going to take a while to get the finances together, yes,

it's going to take a while to build their dream home,

but they've got the plot, they've got somewhere to live.

It's not ideal, but I can't wait to see how they get on.

It might be a while before we're back, but we will be back

and you can find out how it all turns out later in the show.

Well, we still have to see how two properties

are going to turn out, so don't go anywhere.

Yes, will our remaining renovators be quids in...

Or will they wish they hadn't even started bidding?

Let's find out.

It was in the small Lincolnshire village of Gedney Dyke

where we came across a large mixed commercial and residential lot

that certainly got my stamp of approval.

OK, so, what do you get for your money?

Firstly, you get all this area here which used to be the shop.

OK, behind the counter,

which I'm sure they sold a few stamps from,

into the back of the property

and you've got a huge kitchen and this really large lounge.

And you get all that for your money.

And I've not even been upstairs yet.

Yes, this sadly defunct local post office

went on and on, with four bedrooms upstairs...

..a large bathroom

and plenty of garden space out back.

It was bought at auction for 100 grand by Helen and Ken.

With Ken busy renovating their own house,

it was Helen who updated me on why they bought such a large project.

So, is this a bit of a nest egg for you?

Yeah, I mean it's a new life we're embarking on.

We're both semi-retired now, so, yeah, new project.

Something to do together,

but an investment and, hopefully, that will give us a decent return.

Ken and Helen plan to get change of use to full residential

and hope to convert the whole, entire building

into one large house.

They were going to do a lot of the work themselves,

bringing in professionals only when they needed them.

With a budget of 30 grand, they hoped to get it complete

and ready for resale within seven to eight months.

But it's now 18 months later,

so have they been able to deliver the building they hoped to?

Well, that's a great start.

A nice boundary wall gives the house

much improved kerb appeal.

But what about inside?

Wow! That is something special.

It seems Helen and Ken have been very busy.

In terms of space downstairs and changes that we've made,

we didn't want it to be a lot of small rooms.

We wanted a big living space.

And they've certainly achieved that,

with the old back lounge combined with the storage area

to make one fantastic open space.

And it's complemented by the super-sized

and completely revamped kitchen.

Very smart.

The five bedrooms that we had upstairs,

one end of the house

we've changed to a master bedroom suite

which comprises of a large double bedroom,

a dressing room and an en-suite.

The other large bedroom at this end of the house

has access to its own bathroom

while the other bedrooms have been left pretty much as they were.

But like everywhere else, completely refurbished.

And these bedrooms share a big family bathroom.

What about the garden space?

The whole garden has been re-seeded.

We've got a nice big grass area.

We got rid of the old tumbledown shed.

And basically just tidied it up

to make it a very pleasant garden which is not overlooked.

In my opinion, they've done a top job and it's not all new.

They've tried wherever possible

to keep some of the character features of the 1903-built house.

You can see the care and attention to detail

they've lavished on this property,

and it's clearly been a labour of love.

We've put up all the plasterboard walls...

..done all the tiling, laid all the floors.

Helen did a sterling job on the fire.

She rebricked all the fire, which I'm just amazed about.

She was very good.

And Ken did a wonderful job on the oak worktops in the kitchen.

That was something he'd never tackled before.

They have worked incredibly hard,

but they've had to be patient as well,

with long delays getting planning approved for change of use,

which had a knock-on effect in terms of their builder's availability.

But at last it's finished.

# Ooh, baby, here I am

# Signed, sealed, delivered

# I'm yours

# Hey!

# Here I am... #

But at what cost?

In terms of the budget, we were massively out to begin with.

We'd initially thought, perhaps £30,000 to £50,000.

It's actually come in at more like, um,

probably 100, 110,000.

There were jobs that we

weren't expecting to do,

like the reroofing of the single storey at the back,

the gable end at the side.

The front wall turned out to be more expensive

than we had initially planned,

but, also, we wanted the finish to be good quality.

And a little here and a little there, everything adds up.

You can certainly see where the money's gone.

But £110,000 spend

on top of 100 grand purchase price

takes their total investment to £210,000.

So what do two local estate agents think of this large house?

My first impressions of the property are

that it has been renovated to a high standard.

They've made very good use of the space throughout.

I think the layout works quite well.

As you walk into the property, it's got good-sized reception rooms

and potential buyers will like that.

The layout is quite unusual, but having said that,

with an older-style property, that is what people are looking for,

a bit of quirkiness, character.

So I think it will go down very well.

I think the standard of finish is very high in this property.

I think the kitchen has got great fixtures and fittings.

This is a big project,

but will it give a big return on their £210,000 investment?

Should the property come to the sales market,

we would expect to achieve between £320,000 and £330,000.

I think this property should realise between 320 and £330,000.

We have already put it on the market at a price of 345,000.

Well, if they get anywhere near that 345 grand,

that would give Ken and Helen a nice £135,000 pre-tax profit,

and although it's not an easy property to rent,

it still could command around £1,000 per month,

or just under a 6% yield.

But with those numbers, resale definitely is the best option.

So has this project delivered all Ken and Helen hoped for?

Oh, undoubtedly. We've learnt a lot of new skills...

..which would be nice to put to good use again.

I think we've also learned a lot about ourselves

and a lot about each other, as well.

It has been very good.

-Very worthwhile.

-Absolutely.

It was just outside the Cornish town of Liskeard,

tucked away on a good-sized plot,

where we first came across a really unusual lot.

How do I describe the construction?

Well, non-standard, it most certainly is.

Very, very unique.

Very, very unmortgageable.

Built after the Second World War,

these constructions were only meant to last around 50 years.

Along with the prefabricated walls,

more worryingly, they have an asbestos roof.

But sitting on a good-sized plot

and with planners keen to replace these sort of buildings,

this lot's main attraction was the potential as a building plot,

albeit with a building already on it.

And it was bought at auction for £90,000 by Craig and Zoe.

Tell me why you wanted to buy this house.

Because we could never afford to buy the house

that we eventually want to live in, so we're starting slowly.

Right. So you have more bought the location,

-rather than the house itself?

-Yeah.

So the house is doomed?

It's a glorified caravan, really, is what it is at the minute, yeah.

It is going to have its few years,

but it's definitely being knocked down.

OK. Tell me more. Your plan is to keep it for a few years

and run it like this?

Going to make it as habitable as possible as quickly as possible.

Craig and Zoe have three children -

two-and-a-half-year-old Niamh,

and 15-month-old twins Craig and Adelaide.

They were hoping that, when they can get their finances together,

this would be the place for their dream family home.

But first, it was all about the old before the new.

They'd given themselves £15,000 to do up

and make the bungalow habitable...

..and were hoping to move in in around six to eight weeks.

Now, two and a half months later, it's time to check on progress.

With the prefabricated construction and asbestos roof,

it was always going to be best

to leave the external parts of the building untouched.

But inside needed to become their home, for the short-term at least.

# It's just for now, hey

# It's just for now

# It's just for now, hey, hey, he-ey, hey

# It's just for now... #

Well, this really has been made

into somewhere you could call home.

So, how's it been?

I tried doing it on weekends, evenings.

Did that for about six weeks

and then realised it wasn't going to go quick enough,

so I got the guys in to do things like the painting.

But all the sort of bathroom, plumbings,

that was all myself and my dad on weekends.

So, for someone who wasn't even keen on cutting the lawn,

Craig has really stepped up to the mark,

with this bathroom in their so-called glorified caravan.

Well glorified!

And they've also had some great input

from Zoe's cousin, Naomi, who painted the kids' room.

The biggest challenge we faced is definitely Craig

being away from the children

and not having any family time together.

So we are looking forward to moving into our own house

and enjoying time together.

And we've still got to knock it down,

but in five years' time,

we will have a beautiful house to show for it.

Yes, there are still a few jobs to do here,

but they hope to move in in the next few weeks.

Then they can think about that next stage.

And with Craig starting to find previously untapped DIY skills,

is he ready to take on the bigger project

of building a three to four-bedroomed house?

I won't be doing the rebuild.

I had planned to be project managing the self-build.

It's not going to happen.

Yeah, so perhaps leave it to the experts.

Mind you, he's got some time to learn new skills

with the new house not really on the cards for a few years,

as they try to get that £100,000 funding they think they will need.

That's all for the future.

So what of the present house?

How much have they spent here?

We'd planned to spend 15,000, or up to.

We've spent 4,000 getting it to where it is,

including the electrics,

plumbing, all the appliances.

Maybe have another 5,000 to spend,

but that is on heating and oil tank, boiler.

We'll know as soon as we get in how quickly we'll be spending it.

Yes, I suspect, since they are moving in soon,

heating will be high on the priority list.

But it does sound like

they'll get their snug two-bedroom bungalow habitable

for around £10,000,

which would take their all-in spend to around 100,000.

But what do two local estate agents make of stage one?

My first reaction to the property - it's a nice-sized property.

Originally, I understand there was a wall in the kitchen

which made it slightly smaller and they have opened that up,

making it much more family-friendly.

The selling points of this property are its nice rural location.

Some people love that.

It's on a reasonable-sized plot, which is also helpful,

and will lend itself for future development at a later point.

I think the standard of the finish is quite good.

It's liveable for the moment.

I believe they're eventually going to be rebuilding,

so it does what it says on the tin for the moment.

So, temporary or not,

how much currently is Craig and Zoe's £100,000 investment worth?

I would value this property, as it stands, in the region of £130,000.

The property would sell for somewhere in the region of £110,000.

Really impressed with that.

Didn't expect it at all,

and considering we're not going to sell it, it doesn't matter,

but it's nice to know that we could have made money if we were going to.

Remember, though, even though this building is much smarter,

it still is unmortgageable.

So if it were sold, it would have to be to a cash buyer.

But that's a potential pre-tax profit

of between £10,000 and £30,000,

and both agents reckon rental figures

of around £650 a calendar month could be possible,

which would equate to a yield of over 7%.

Well, that's all fine,

but the real value is in building a new three to four-bedroom house.

Depending on the specification and the finish,

I would value the house they are planning to build

in the region of £250,000.

As a three-bed two-storey property with two bathrooms,

I estimate the value to be,

in current market conditions, £250,000.

Those figures are encouraging

and do show that building a new house here

would be the sound investment they need.

But more importantly for them, it will make a great family home.

So are they pleased about progress so far?

I love it at the minute.

I'm so excited to move into our first house

that we own together

and I'm really, really pleased with how it's turned out.

If you're thinking about heading down to a property auction,

I hope we've helped you out.

Yes, we do like to give as much advice

as we possibly can and we will keep at it.

We will. So make sure you join us next time

-for more Homes Under The Hammer.

-ALL:

-Goodbye.