Episode 73 Homes Under the Hammer

Hello, and welcome to the show. Today's temperature is a little bit chilly.

But how can you tell the temperature of the property market?

Yes, sometimes it blows hot, sometimes it blows cold.

But one way to find out

the direction it's moving is to head down

to your local auction house, and who knows?

You might even buy your next home under the hammer.

Well, when you go to a property auction,

you pretty quickly pick up on whether there's confidence

in the market, or everyone's playing a bit of a cautious game.

Yes, you can get a bit of a snapshot into the property market.

So, why don't we find out how the land lies on the properties

that went up for auction on today's show?

In South Norwood, Lucy is not a fan of the decor.

Scalloped ceiling tiles in there.

They might even be made out of polystyrene. Mm-mm-mm.

In Carlisle, this two-bed terrace brings out the optimist in me.

It's not a bad-sized room,

and it's nice sometimes to be able to start from scratch in a kitchen.

Whilst in Derby, Alvaston brings out the music lover in me.

I can never come to Alvaston in Derbyshire

without thinking of that Glen Campbell song. It's just, argh!

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.

Lucy's in South Norwood, in the London Borough of Croydon.

It's well-served by train links into central London,

making it a perfect spot for commuters.

Arthur Conan Doyle, author of Sherlock Holmes,

lived in this area from 1891 to 1894.

But you don't need to be a detective to see that South Norwood

has a lot to offer.

Well, the good news is that this road is only an eight-minute walk to the station.

But the bad news is, well, it's even closer, a five-minute walk,

to Selhurst Park football stadium.

It's right there at the end of the road.

And that means it could be very busy here on match days.

But crowds aside, the property I'm here to see is a three-bed semi,

and it had a guide price of £300,000.

Time to start my investigation.

So, inside the property, not a bad hallway at all,

although this lino over the floor, it doesn't feel very homely at all.

You've got the kitchen at the end, the stairs leading up there,

through into the lounge.

Well, it's almost like a double-aspect lounge,

two rooms that have been opened up.

Brown, plastic double glazing - never been a fan, I have to say.

But you could really update that with some new,

fresh, white, clean ones.

I just don't think that works.

Bit of a feature here, the bricked up fireplace, looks quite nice.

Although this room is rather long.

I'm not sure how you would place your furniture.

And I'm just thinking, if you did want to open the kitchen up

and just turn it all around and have a much more spacious feel,

you could always knock through here.

But saying that, I think you'd need to put a big steel up here,

it could be expensive, so it might be worth thinking that through.

Do you really want to spend the money on it?

Although it would allow lovely access out into the garden

if you put the kitchen in both these rooms.

So, a lot to think about, and it's always good to have too much space,

rather than not enough.

Knocking down walls, particularly structural walls,

and reconfiguring the layout would be a lot of work.

But Lucy's right -

the one place where there isn't enough space is this kitchen.

And the units are definitely not the cat's whiskers,

so reconfiguring would be good.

Well, upstairs is quite a collection of colours.

Now, I know I'm always banging on about magnolia,

but I don't think I like this very much either.

The brown and the beige combinations,

not quite doing it for me.

Also, you've got some rather interesting scalloped ceiling tiles

in there, and to top it all, they might even be made of polystyrene.

Mm-mm-mmm. Get rid of them.

So, how can we improve it up here?

Well, we've got a toilet, we've got a bathroom, separate,

you could knock those into one to create a little bit more space.

But I think the layout does work, because you've got one, two,

three bedrooms, the third bedroom is quite small, it's a boxroom.

And something I've noticed, up there is a loft.

So if you did want to extend and create more space,

another bedroom perhaps, the loft could be your answer.

There might be enough space up there for a fourth bedroom

and a shower room, which would be very family-friendly.

But before we get too excited about the extension potential,

there is one negative about this property.

So, let's have a look in the back garden.

Well, it's nice and spacious, you might think.

But, oh, no. Because when I show you this, or these,

a couple of garages, one for our house and one for next door.

But that means the next-door neighbour's car

could drive down this driveway at any point,

and it wouldn't mean that your garden's terribly private.

So, if I were buying this house,

the first thing I would do would be to have a little chat with the

next-door neighbour and see if it's for sale. Could you buy it?

That could open up all sorts of options.

If this issue could be resolved,

then there's potential for even more space.

But as it stands, it might even put buyers off.

A lot hinges on this garage twosome.

# Just the two of us

# We can make it if we try

# Just the two of us... #

But what does a local estate agent think of this property,

guided at £300,000?

I think it's a good property, there's lots of potential.

It does need complete refurbishment, top to bottom.

I think definitely something could be done with the loft area,

and possibly extending to the rear,

if you're really wanting to spend the money.

But it's a lovely proportioned house.

So it all seems quite positive.

But what could it be worth kept as a three-bed?

Once renovated as a three-bed,

this property would sell for approximately £425,000.

So, even if renovation costs are, say, 30 grand,

if you got it for anything like the guide price of 300,

there could be a pretty profit on this.

But would there be a larger potential profit

in making the house bigger?

This property as a four-bed, extending into the loft with an en-suite,

making two bathrooms, and out to the back,

would sell for approximately £475,000.

But depending on finish, possibly up to £490,000.

Yes, it's dated and not without its quirks,

but with some TLC and a bit of modernisation, well,

I think this could be a lovely home for someone.

Who agreed? Let's head to auction and find out.

Three-bedroom semidetached house with garage.

350 anywhere? 350...?

Turn it round the other way, 275.

We've seen what flats have been going round this area for.

275? 275.

275 at the back of the room.

276...

This lot came towards the end of the auction,

and although the auctioneer had to start well below the guide price,

it gradually picked up, and we rejoin the bidding at 310,000.

310, 311...

312, 313, 314,

315, 316, 317, 318,

319, 320, 321...

No? 320.

321 anywhere?

I've got 320 for the first,

320 for the second,

320 for the third and final time...

Sold, 320. Well bought, sir.

The successful bid of 320,000 came from property developer Alex.

He met with Lucy to tell her about the plans

for his latest acquisition.

-Alex, congratulations.

-Thank you.

So, what was it like for you in the auction room?

-It was a little bit nerve-racking at first.

-Yeah.

-I've bought a few at auction before...

-Right.

But every time it still gets the old ticker going.

So, tell me a little bit about yourself. Is this what you've always done?

I used to work in the oil and gas industry,

and then about four years ago,

I decided to have a drastic career change,

and headed straight for... Headfirst into the property world.

So, what property number is this one now?

This one is number nine.

-Number nine?!

-Yes.

-In four years. So, what was it about this house

that you liked enough to want to bid for it?

At the time, I actually viewed about 20 different properties.

Hold on a minute, 20 properties?!

-Yeah.

-You must have had quite a busy month!

-20?!

-I did, I pretty much spent every day driving around London,

looking at various different properties.

I'm detecting the northern accent, and my next question was,

-are you a Crystal Palace fan?

-No, no!

I'm not going to say who I support, but it's certainly not Palace!

But you've bought a fabulous house,

-but you're right on top of the stadium.

-Right next to the stadium.

Now, did you know that before you viewed it?

And when you were here, did you know how close you were?

Yeah, because when I viewed it, I saw the ground, obviously,

and I've been there before to watch the team I support.

So, what do you plan to do here, and how are you going to add the value?

So, it'll be a full refurbishment.

-OK. Yep.

-Strip it all back to basics, and then,

obviously, downstairs will be, at the moment, no layout change.

-Oh?

-So, literally, straightforward refurbishment.

-I may open it up to open up the kitchen.

-Yes!

And make a dining kitchen area.

So, I talked about that, and I thought that initially.

But obviously I'm guessing that is a structural wall,

-that you'll need to put a beam across...

-Yeah.

You know, you've got the added expense with that.

Is it because of the expense that you might not do it?

If I decide to extend at the back, it won't be required,

because you'll have the space at the back.

I totally agree, I think if you are going to extend out,

you won't need to do that, but if you're not,

I definitely think you do need to do that.

It is my intention to try and buy the garage at the back.

If I buy the garage at the back and get rid of the shared access there, it really opens up the property.

-Absolutely.

-Potential there.

-I mean, that would be the idea,

if you can chat to the neighbours

and try and agree a price and buy that.

Exactly. That's my intention at the minute.

Now, what about these, erm, lovely brown double-glazed windows?

-They're going.

-How do we feel about that?

-They're going, yes.

-They're not a fave of mine, I have to admit.

-No, no. They're going to get changed.

-Yeah, it's got to be white, hasn't it, really?

-Absolutely.

Now, what about the upstairs?

Initial plan at the moment is to...

try and retain the three bedrooms upstairs.

I'm going to do a loft conversion,

and hopefully create another bedroom-bathroom up there.

Where you've got the separate toilet,

-that would be the staircase...

-Stairs that turn.

-Yeah, going up.

And then in the back bedroom there's a water tank, which is going to go.

So maybe nick a little bit of space from that back bedroom

-for the toilet on that.

-And how involved do you get in it?

Do you have a team of builders and just project-manage,

or do you actually get involved?

I'll be on site every day, and on this one in particular,

I will do as much as I can to try and keep labour costs down.

So, what sort of budget have you got in mind for the work?

-45,000.

-Right. OK.

I was going to say more in the region of 25 to 30.

Including the loft conversion?

No... I didn't have in my mind

-it was worth doing the loft at this stage.

-Right, OK.

So I probably would've left that for somebody else to do.

From my point of view, in terms of sell-on and potential profit,

it's definitely worth doing the loft conversion.

How much do you think you'd like to market it for once it's done up?

-I'm hoping around about the 450, 475 mark.

-OK.

The spec I'll do it to might push it to 475.

So, what is the spec? Tell me, explain your style

-and colour schemes and stuff.

-Erm, fairly neutral.

-Yeah.

-But quite a high finish spec in terms of, erm...

The flooring, I'll go for, like solid oak flooring.

-Lovely.

-Yeah. And the kitchen will be high gloss.

Possibly granite worktops, not sure yet, might just go for solid oak.

Yeah, and just, you know, a good finish throughout.

So, let's talk timescales now. How long do you think this will take?

This one I think will be about four and a half months.

See, now, I'll have a bet with you on that, because I bet it doesn't.

-You don't think...

-No!

-Let's have a bet.

-I think it'll easily be six months!

-Cup of coffee.

-45 grand, then. And six months!

-45 grand and four and a half months.

-I love it!

-Good luck.

-See you in four and a half months.

Oh, it might be six!

So, Alex has decisions to make, and, well, issues to overcome.

But most importantly, what will happen about buying that garage?

Join me later on in the programme,

and you can find out how it all goes.

DION: I'm in Cumbria today, in the city of Carlisle.

It was here in December 2015 where severe flooding engulfed large areas

after torrential rain from Storm Desmond

caused local rivers to flood.

Now, nearly one year on, the water may have gone,

but the damage is still evident.

The property I'm here to see is unfortunately one of those hit

by the recent floods here in Carlisle.

On a positive note, it's in a great location,

it's only five minutes' walk from the city centre.

And here it is, it is a two-bedroom terraced house

with a reasonable guide price of £50,000 to £60,000.

Let's get in and see what you get for your money.

At first glance, all looks normal on the outside.

Wow, this has been hit hard by the water.

If I just have a look into the first reception room there, even in here,

the plaster's been taken off

all the way up here.

I'm six foot two and there's no plaster at all.

This must be six foot four.

This has all been taken back to bare brick.

There is a fireplace there, but just a hole for a fireplace.

Not a bad-sized first reception room, though.

You've got a bit of storage under the stairs,

into the second reception room.

And it's just the same. Back to bare brick again.

You've got a nice, solid, er, fireplace here,

but not the original.

This would've been put on at a later date.

If you look here, that's the original brickwork there,

and then you've got this big stone lintel right there as well.

There might be a nice fireplace, original fireplace,

behind there somewhere. And...

quite rare to have floorboards in a flooded property.

Every flooded property needs to have an official drying-out certificate.

So, first thing,

find out if everything underneath these floorboards

has been checked and properly treated.

And a little bit further down here,

we have got the kitchen at the end of the downstairs.

Good-sized kitchen, no kitchen in here at all. Obviously

it must have been affected by the floods so badly

they've ripped it all out.

You can see all the pipework, as well.

Two big windows, letting lots of light in.

It's not a bad-sized room,

and it's nice sometimes to be able to start from scratch in a kitchen.

Yes, it doesn't look very pretty down here at all,

but I do like the layout.

Yes, it's not pretty, but really, it looks a lot worse than it is.

It offers a chance to check out electrics and reposition walls,

if you're looking to reconfigure.

But I'm hoping,

like some other flood-damaged Carlisle properties I've seen,

that upstairs has remained unscathed.

OK, upstairs to the two bedrooms,

and the first one's a good size, actually.

It's got a nice original fireplace there.

And across the hallway, you've got the second bedroom.

Maybe slightly smaller, but they have got some fitted wardrobes,

not to everybody's liking, I know,

but I think they've made good use of the space in there.

But the bedrooms aren't the star of the show when it comes to upstairs.

Check out the end of the hallway.

And here we have an upstairs bathroom.

But this is a huge family bathroom, in really good condition.

You've got a freestanding bath, you've got a shower,

and it's tiled throughout.

Even if you wanted to rent this, or sell it, or keep it yourself,

you wouldn't have to do a thing in here at all.

This is some bathroom,

and suggests how nice this house must have been before the flood.

But I'm an optimist, and it can be good again.

The bare bones are all here - good-sized rooms, decent layout,

there's even some outside space with a secluded back garden.

However, taking on a property like this means

you have to do your homework.

You can future-proof the house with anti-flood measures,

like concrete floors and one-way water valves.

But the financial side of things can be difficult, too -

getting a loan, for one.

And while there are measures for owner-occupiers to get government

assistance with insurance, landlords are not covered.

To get an idea of what this could mean for house prices,

we asked along a local estate agent.

It's a super house, it really is.

There's lots of these terraced properties up and around this area

in the city. They're very popular, but it does need a bit of work.

It needs, obviously, all the flood prevention measures put in place.

But it is buyer beware - it could happen again.

Whether it will or not, we don't really know yet.

Mmm. Uncertainty is never good,

and always makes banks and lenders nervous.

So, does he have any thoughts on the end value of a refurbished house

with flood prevention measures in place?

It's difficult to value these properties because, currently,

there have not been any that have resold,

once they've been refurbed after the flood.

We don't know about the mortgageability of these houses,

what the banks are going to say about it.

And until some start to sell,

it's quite difficult to really speculate

as to what they might actually be worth.

I do know that this very house sold for 115 grand in 2012,

which does predate the recent flood and some downturn in the market.

Even so, that guide price of 50 to 60 grand suggests that someone

will be taking a pretty big financial loss -

a sober reminder

that property prices can be affected by many different circumstances.

Assuming the insurance situation doesn't put a landlord off,

how much could this house rent for?

Once renovated to a good standard, a property like this,

it's quite a spacious house, two good-sized bedrooms, nice bathroom,

should rent for somewhere in the region of about £500 per calendar month.

It's clear to see what damage the floods

have caused to this house.

We're back to the bare brick, and we haven't even got a kitchen in.

So there's a fair bit of work that needs to be done downstairs.

But I do like the layout.

Upstairs, though, it's just a cosmetic touch-up for me.

I think this is a good project to take on.

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

OK, lot seven, ladies and gentlemen.

Mid-terraced house, good location, this. Need a bid, 45.

At... 45 here. At 45 bid now.

At £45,000 in one.

46, 47. 47 bid, 48.

49, 49 bid. 50,

51, 52,

53, 54,

55, 56...

You're out. You're in, sir.

At £55,000, then. First time.

Second time, are you sure?

I'm selling over here at £55,000.

All done?

Well done, sir.

Out of sight of our camera, and for 55 grand,

the successful bidders were local Carlisle couple Ron and Denise.

They live nearby

and had no illusions about what the state of the house would be,

and were only too aware of what happened in the area.

Denise, nice to meet you. Congratulations.

Ron, good to meet you, too, sir. And well done.

Firstly, before we go on to the house,

tell us a bit about yourself, your day jobs.

Day jobs, we're self-employed,

we run a couple of pubs and restaurants,

but we've done new builds,

we've built our own house a couple of times for ourselves.

And we've got a portfolio of about 30 properties now.

So, we're quite used to the good, the bad and the ugly.

DION LAUGHS

-Where does this one fall?

-In the middle.

-In the middle, is it?

-In the middle. We've had a lot worse.

-Oh, have you?

-Yeah.

-Tell us what made you want to buy this house.

It was bought specifically for our granddaughter,

because it's that difficult to get on the property ladder now,

so we're trying to sort out each grandchild,

as they're coming to that age, with a property.

Fantastic. So, what was it about this one that made you both think,

I tell you what, that would fit for...?

-What's your granddaughter's name?

-Our granddaughter's Tyne.

-Tyne.

-Tyne.

-What made you think this is perfect for Tyne?

Er, she's 18,

she wants to be on her own, but not too far from family.

-OK.

-And we just live two minutes away across the road.

So she'll be on her own, but not on her own.

Tyne, in fact, also works with her grandparents in their cafe bar,

so there'll be plenty of discussions about what she might want here.

I'm sure Ron and Denise will point her in the right direction.

But what is first on the agenda?

The property, as you see, it is how we bought it,

so we don't know whether it's been dried out right yet.

We need to check everything's right - there's no rot,

make sure it's dry, and then just get on with putting it back together, really.

What is your budget, then?

Denise, what's your budget to get this turned around?

We think about 15 should do it.

From start to fin... So, that's an experienced...

-Yeah.

-Yeah.

-..estimate.

Is this something you two are going to get your hands dirty doing,

or because you've got properties yourself,

do you have a team of builders that you...?

-We have a team of contacts, really.

-OK.

People that we've used for 25 years, you know, really good tradesmen.

Denise does all the interior design kind of side of it.

-The nice bit.

-Picks the kitchen, etc.

I do all the mucky end of it.

DION LAUGHS

With Ron and Denise buying the property for granddaughter Tyne,

this does fall into the category of buy-to-let.

So, currently, they can't get flood insurance on the building.

It's a risk, but a risk Ron and Denise were prepared to take

given the £55,000 purchase price.

They are hoping to get the house ready for Tyne in three months,

along with finishing off another project a little closer to home.

Tell me how, just in general, about the floods?

It was horrendous.

-We were flooded personally. We only live...

-In your house?

Yeah, yeah. We only live a minute's walk away from here.

Erm...

4ft of water came in very quickly, and, well, Denise was up to here.

We managed to move the vehicles, three vehicles, away before.

-Just in time?

-So, we saved those.

Yeah. And we tried our best to move some of our personal belongings,

-but...

-But we still lost a lot.

But we've got there, and we're now starting...

We've plastered, floor's in, and just about ready to get it

finished within the next month or so.

It's amazing how you're having to deal with your situation personally,

but you've still taken the time to nip to the auction

and find a property for your granddaughter.

Well, you've got to turn disasters into an opportunity, I think, if you can.

On this project, I wish you all the best. I really do.

-Thank you very much. Thank you.

-Good luck to you.

-Thank you.

-Make it a nice home for Tyne, hey?

-Yep, will do.

-Good on you.

What a really nice couple -

with experience in dealing with a project like this.

Ron has got to double-check the situation

with the dried-out certificate.

Once that's all done and dusted,

I think Denise might just stretch that budget a little bit more,

because it's for their granddaughter Tyne.

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

Coming up - in Alvaston, Derby,

I don't think this design is "suite" at all.

They've certainly fitted - may fit - a bath in here.

And in Carlisle, Ron and Denise's builder feels the hammer effect.

We had to put pressure on them to get the job done,

ready for yous guys coming back.

Back now to South Norwood in the London Borough of Croydon,

where Lucy saw a three-bed semi.

Now, two of something is often better than one,

but that was not the case here.

A couple of garages!

One for our house, and one for next door.

But that means the next-door neighbour's car could drive down

this driveway at any point.

And it wouldn't mean that your garden's terribly private.

So, if I were buying this house, the first thing I would do

would be to have a little chat with the next-door neighbour

and see if it's for sale.

Fortunately, new owner and property developer Alex,

who paid £320,000 for this lot, agreed with Lucy,

as getting rid of it would have made room for an extension at the back -

and that wasn't all they agreed on.

-I may open it up...

-Yes!

..to open up the kitchen and maybe a dining-kitchen area.

So, I talked about that, and I thought that initially,

but, obviously, I'm guessing that is a structural wall,

-and that you'll need to put a beam across, and...

-Yeah.

..you've got the added expense with that.

Is it because of the expense that you might not do it?

If I decide to extend at the back,

it won't be required because you'll have the space at the back.

I totally agree. I think if you are going to extend out,

you don't need to do that.

-But if you're not, I definitely think you do need to do that.

-Yeah.

Well, with a right old agree-fest going on,

the only issues they disagreed on were Alex's intention to convert

the loft to a fourth bedroom, and his timescale.

This one I think will be about four and a half months.

Yeah. Now, I'll have a bet with you on that, because I bet it doesn't!

You don't think four and a half months?

-No! I think it'll easily be six months!

-Cup of coffee!

So, who's buying the coffee?

We return seven months later to see how he got on.

The front of the house is looking much smarter.

There's a new roof, new door,

and those dated brown windows have gone, too.

Inside, there have been some layout changes.

Where once there were two rooms accessed in the hall,

there is now only one.

The large, double-aspect living room has been refreshed.

But the star of the show is the new open-plan layout,

with kitchen and living space.

That dated yellow and pine combo is gone,

and has been replaced with a really stylish kitchen,

with sleek, modern units and high-end fittings...

..all opening out to the garden with a set of French doors.

It's looking very nice indeed.

But, clearly, that extension is nowhere to be seen, so what happened?

When I had a bit more time to look into the numbers, the area,

the ceiling price on this street, which there is,

it wasn't viable to go ahead with the rear extension as well.

I knew I had to sort of maximise the living space downstairs,

so I made a decision to go with open-plan living downstairs,

so all the walls and everything was removed there.

And then upstairs, the layout pretty much stayed the same,

just I've nicked a little bit of space from each room

to accommodate for certain things.

Alex has still got some snagging to sort out, but it's looking great.

The separate WC and bathroom have been combined

to create a lovely contemporary wet room.

And each of the three bedrooms has had a face-lift.

But there is an important new addition.

So, despite Lucy's best efforts,

Alex has stuck with his plans for a loft conversion,

and it looks fantastic.

Not only is it an extra double bedroom,

but it has an en-suite for a touch of luxury.

The loft conversion itself,

we didn't actually go through a planning process.

It was done under permitted development.

So, I could actually start the work on that straightaway,

as soon as the architectural drawings were approved.

When we started to build the stairs,

we realised that there wasn't enough height

in between the first-floor stairs and then into the loft.

So, we had to move them back a little bit,

which meant we had to steal some space from the small bedroom

at the front. So that was a bit disappointing because now

it's really a sort of study/nursery rather than a bedroom.

But other than that, it's been fairly straightforward.

It's a shame to lose height on that fourth bedroom, but rules are rules,

and you need that regulation headroom of 1.9 metres

in a loft conversion staircase.

But the burning question is,

has Alex managed to sort that issue with the shared access?

I'm actually in the process of trying to buy the house next door.

If I'm successful with the offer,

then obviously the garage belongs to me,

so then the shared access goes away.

That is a novel way to do it.

Why just buy the garage when you can buy the whole house?

Alex has done a great job,

and while he's gone over his 45 grand budget by 10,000,

he does have a lovely house.

And Lucy was right about that timescale - sort of.

The project itself has been about five and a half months.

I've had some personal commitments in between -

best man at my friend's wedding and a holiday booked and things,

so it means I lost about a month there.

So, the project itself has been about five and a half months.

Again, a little bit longer than expected,

but it ties in with the extra work.

So, all things considered, it's not too bad.

Not bad at all for what Alex has achieved here.

But let's see what the experts think.

We invited along two local agents

to hear their opinions on this property,

starting with the agent who saw it originally.

The owner has done a fantastic job. It looks really good throughout.

I think the open-plan layout on the ground floor works extremely well.

Great for entertaining.

I love the wet room feature they put in there as well.

So, it's something different, and people would really appreciate that.

I think they've done a nice job on the refurb, really.

A couple of little nice touches,

including the wet rooms and the nice glass effects.

I think the owner has done really well by going up into the loft and

creating an extra bedroom, making it a three double-bedroom house

with an extra bathroom. That works well.

They have lost a bit of space at the front of the property

in that small bedroom, but I don't think it matters that much.

I think the loft conversion does add value,

especially because the third bedroom is quite small,

and now you've got a substantial third bedroom and the en-suite.

I'm not sure about the magnolia on the walls upstairs but, otherwise,

the bathrooms look great, kitchen is perfect.

Well, you heard it here first - not all agents love magnolia.

Decor aside, will Alex's £375,000 investment make him a profit?

This property would sell for approximately £490,000.

I think this property could sell for between £500,000 and £525,000.

A range of figures there,

but the top estimate could see Alex with a pre-tax profit of £150,000.

So, what does he think of those valuations?

They're fair valuations, considering the area,

the properties on the market at the minute.

Ultimately, it's only worth what someone will pay for it.

So, somewhere near that, I'll be OK with that.

So, with this property already on the market, what's next for Alex?

Hopefully I'll get the house next door.

I'll find out probably in the next week or two.

If not, back to the auctions for more of the same, I think.

MUSIC: Galveston by Glenn Campbell

# Galveston, oh, Galveston... #

Galveston... No, sorry, Alvaston, is a suburb of Derby,

three miles from the city centre,

and its stock of decent-sized, predominantly family homes,

offering a chance to get a good-sized property

but at a reasonable price.

# Galveston, oh, Galveston... #

I can never come to Alvaston in Derbyshire

without thinking of that Glen Campbell song. It's just, agh!

I know it's silly, but...! What am I here to see, though?

It's this, a three-bedroom semidetached,

really close to the shops there,

and looks to be in pretty good condition.

£90,000, was the guide price. In we go!

OK, nice little porch area there. We like that.

And then straightaway, I'm seeing a very classic layout for this

probably 1930s, do you think, semidetached? I think so.

Stairs there with a bit of a return.

A little entrance area, a very practical house - they always were.

It gets kind of interesting here, because you have the through lounge.

So, lounge area there, massive bay window, which is lovely,

flooding the place with light.

That way, a set of patio doors,

leading out onto something which looks fairly disgusting at the back there.

But, yeah, it's a nice feel.

But you know what? I want to make this more,

I want to make this even more open-plan,

because the chaos comes when you go into here.

Here is the kitchen. And they seem to do this -

this is such a classic design for this kind of house.

The kitchens are always too small.

But there's an easy solution, and that's to take out this wall.

Now, you'd need to put a steel joist across the top there,

because this is obviously going to be a fairly substantial

and supporting wall, so you don't just knock it out.

And then completely open that up,

put, like, a breakfast bar in there, the whole ground floor then becomes

one big, lovely, sort of living area.

And the house is revolutionised.

It's nice that you've got that little bit at the back there,

utility area, leading out to the back garden. But all in all,

it's a house which I think has so much going for it.

When this house was built, there were no fancy sinks or taps, or,

well, any kitchen gadgets, actually, hence these titchy kitchens.

But with everything we need in our kitchens nowadays,

this simply will not do.

So, the thing about these type of properties,

you never quite know how big the back garden's going to be.

Well...

Ready? 2ft?

3ft? 50ft? 10ft? 100ft? It's massive!

# I can see for miles and miles

# And miles and miles and miles

# Oh, yeah... #

And I think it might be worth taking a smidgen of this space to build

a rear extension, for replacing that thing at the back.

And with off-road parking at the front,

you can't complain about the lack of outside space.

So, upstairs, and a little landing, small boxroom there,

larger room towards the rear of the property there,

and a really nice master bedroom at the front.

None of them ensuite, but the loo is at least upstairs.

But wow, look at this.

They've certainly fitted - may fit - a bath in here.

And I'm not sure they should have.

It's all a bit of a squeeze.

There just isn't enough room for this large bathroom suite.

It's daft, when some of this house has loads of room.

Actually, all the house needs is a bit of reordering,

rethinking and squeezing.

But what does a local property expert think would be best for this three-bed Galveston...

Oh, darn it, done it again! ..ALVASTON house?

If I personally owned this property,

certainly knock through to the dining room,

create a lovely, open-plan living kitchen-diner,

certainly tidy the garden up,

no extensions, keep it minimalistic.

Yeah, that's what I would do.

The house was guided at 90,000, but spruced up, what might it be worth?

When renovated, I would recommend an asking price of £145,000.

How would it fare on the rental market?

I would feel this would likely achieve £595 per calendar month.

Well, I have been trying to find something wrong with this place,

and I can't. Yes, you need to do a bit of work at the back there,

and definitely knock through the kitchen area,

but you could transform this for 10-15 grand. It's a great house.

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

Lot number ten is three-bedroomed semidetached house.

Who's got 90 on the guide price to start me?

£90,000, I'm bid.

At £90,000, 91 somewhere else?

Seated at 91...

92 behind you, 92,

93 is bid.

At 93, now 94.

94, 95, 96,

at 96... 97.

Got you, 97.

At 97, 98.

I'll take 500. 97 and a half,

make it 98, sir?

Yes? 98.

At 98, 5 again? At 98, it's going to get sold, no mistakes.

At 98,000, once, twice, third chance...

Sold at 98,000, thank you.

So, the hammer fell at 98,000, and the successful bidder was Philip.

Philip is based a couple of hours away in Cambridgeshire

and this house was to be his fourth renovation project.

-Philip, great to meet you. How are you?

-I'm very well.

Good. Well, congratulations on a nice house, actually.

-Yep, very pleased.

-Tell me why you wanted to buy it.

Location, price, type of property, work it needs doing to it.

Right, that's all very boom, boom, boom.

-Are you a boom, boom, boom kind of a guy?

-Yes.

Are you a property developer or investor or...?

I wouldn't say I'm a property developer.

I have done properties up in the past and we have let them out.

But I wouldn't say I'm a property developer. Not yet.

What do you do when you're not doing this kind of stuff?

Normally, I'm an IT director.

-OK, wow!

-So, used to running projects, fairly complex things,

so this is just an extension of that part of my personality.

MUSIC: Boom Boom by John Lee Hooker

# Boom, boom, boom, boom

# Mmm.... #

Philip definitely seems to have transferable skills.

He might not be a plumber or an electrician or a builder,

but he knows how to run a project,

and that is key to a successful property development

along with sticking to a budget and having a clear idea of what work to carry out.

So, tell me what you're going to do to it.

We're going to do a small extension at the back.

Oh, OK. Single-storey or...?

Single-storey, just to make the kitchen a little bit bigger.

We're going to knock through from the kitchen into this room here,

just to create a little bit more space.

New bathroom, redecorate throughout, tidy it up,

tidy up the garden a little bit.

So, fairly straightforward, really.

So, your extension on the back is going to take the place of

the fairly decrepit thing that's on the back at the moment?

-Absolutely, yeah.

-So, how many metres, within permitted development...?

It's going to be three metres wide, two metres deep.

So, it's not going to replace the existing one,

it's going to be to the side of it, just to make the kitchen bigger.

But doesn't need planning permission?

-No. Does need building relations.

-OK.

Is there anything you've got experience of?

Originally, I'm an architectural technician, so...

-Oh, great.

-..the fabric of buildings and that isn't alien to me.

They're the ones that actually do the drawings, aren't they?

-Yep, absolutely.

-So, are you going to do all the drawings for this?

Not any more, I'll probably get someone else to do that.

-Why?!

-I don't have the software to do it any more.

-Oh!

-And it's quite time-consuming, so...

Pencils and rulers and things, come on!

I'll be doing a few sketches, I've already done some sketches, but...

What's the budget?

Budget's 15-18.

-So, you paid 98 for it.

-Yep.

-Plus 15, that's puts you in approximately 115,000-ish.

-Yep.

What do you think it might be worth when you've done it?

Hopefully, somewhere north of 135.

OK. So you're hoping for a 20 grand-ish profit.

Yeah.

That's a relatively modest profit Philip is aiming at,

given the agent's valuation of 145 grand without an extension.

It will be interesting to see how the sums turn out,

and Philip wants to achieve his target profit in 4-6 months.

So, what's the end goal, then? Is it to do more of these

and buy and sell, buy and sell, or keep a portfolio, or...?

It's a bit of both, actually. So, it's to buy and sell,

but also to invest in other properties to rent out

and build our rental portfolio.

And what would be your goal, how many - 10, 20, 50, 100?

Maybe 10-20, something like that,

but that'll be over a considerable period of years.

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

-Thanks a lot, Martin.

-Look forward to seeing how you get on.

-Yeah, OK.

Well, Philip certainly seems to know what he's doing.

He has a project plan, boom, boom, boom,

and I'm sure he's going to stick to it.

How will he get on, and will he make the money he hopes for?

You can find out later in the show.

It's now time to go back to the two remaining properties

to find out how the owners got on.

Yes, will it be gold stars all round,

or will we have to get the dreaded red pen out? Let's find out.

Back now to the city of Carlisle,

where the devastation caused by the flooding in 2015

is still being tackled.

One of the many properties which had been damaged was

this two-bed terrace, guided between £50,000 and £60,000.

The price indicated just how much work was needed here,

particularly downstairs,

where the house had been stripped back to the bare brick.

However, it wasn't all doom and gloom.

This is a huge family bathroom in really good condition.

Even if you wanted to rent this or sell it or keep it yourself,

you wouldn't have to do a thing in here at all.

I thought the bathroom indicated that this had been

a pretty nice house, and could be again.

Buyers husband and wife team Ron and Denise thought so, too.

With a large portfolio and personal experience

of repairing their own home after the flooding,

they weren't fazed by the scale of work here at all,

purchasing the house for 55 grand.

It seemed that this pair had worked out a clear division of labour.

Denise does all the interior design kind of side of it.

-The nice bit.

-Picks the kitchen etc.

-OK.

-I do all the mucky end of it.

DION LAUGHS

This was a special project as, once it was complete,

it was going to be a home for their granddaughter, Tyne.

They had a budget of 15 grand and a timescale of 3-4 months.

So, we've returned just under four months later,

but did they do a grand job for their granddaughter?

That empty space that was formerly the kitchen

has been totally transformed,

with a modern fitted kitchen in a contemporary black-and-white.

The changes continued to the rest of the downstairs.

The second reception room that was stripped back

is now an elegant sitting room for granddaughter Tyne to enjoy.

But looking beyond the surface, this house has had the full works,

with new joinery, floors,

plasterwork and full new wiring and plumbing throughout.

Ron and Denise have also added flood-proof front and back doors,

nonreturn vents and have waterproofed the exterior brickwork.

The front room that was left devastated by the flood is now

a cosy but stylish dining room, with a feature wall in peacock blue.

While you would never know this lovely home was ravaged by flooding,

where did they start?

The drying out of the property, erm,

entails introducing heat to the premises.

After that, introduced dehumidification

for a couple of months.

The process also involves removal of any wet or damaged timber work,

because as it dries, it will twist,

so it's better being replaced with tanalised or treated timber,

which protects it from any future flooding.

It's clear they know their stuff,

and while they didn't do the work themselves,

they got local contractors in, with Ron overseeing the project.

It's not their first flood-damaged property,

so what were the challenges with this one?

One of the biggest challenges was getting our normal tradesmen in,

because they're all busy with the floods in Carlisle.

And we didn't want to use anybody else.

So, we had to put pressure on them to get the job done,

ready for yous guys coming back!

Sounds like WE'RE getting the blame there!

Regardless, the builders pulled out all the stops.

So, are they, or more importantly granddaughter Tyne,

pleased with the result?

I think it'll be a cosy little house for her.

It's modern, it's not over the top, very comfortable.

It's done up to how she wanted,

but with a lot of my little touches in as well, so...

She had a good... She had an input.

-She had an input.

-Into the finish.

-But it was my final say-so.

Yeah, I'm really pleased with it.

Well, it's clear to see who the boss is here.

So, Denise, how did you get on with that 15 grand budget?

We've actually come out at 12,200,

which is pretty good for what we've achieved.

Denise is spot-on.

They have got a lot for their money here.

What's more, they have also benefited from a government scheme

put in place to help fund those anti-flooding measures.

So they got five grand towards that, which seems great.

But taking on a property like this has its risks.

It's a gamble. You're taking a chance,

whether it's going to flood again.

But hopefully with the measures, the improvement in the flood defences,

will stop it flooding again,

therefore it will turn out to be a good investment.

So, will the gamble pay off?

We've invited along two local estate agents to give us their thoughts on

Ron and Denise's £67,200 investment,

starting with the agent who saw it first.

They've done a really nice job. It's a very good standard.

The kitchen's nice. They've got nice decor downstairs.

So, overall, it's a good job.

My first impression of the property,

it has been done to a very high standard.

The main selling points are the size of the downstairs,

the kitchen is very modern, and the two good-sized double bedrooms.

The only real negatives to these sorts of properties is the location,

due to the recent flooding,

and that does have an impact on any purchase going forward.

Landlords struggle to buy them or struggle to insure them.

A homeowner can buy one and have it insured through the Flood Re scheme,

which is great. But other than that, is it going to flood again?

Possibly. And that's just a risk

that somebody's going to have to take.

These kind of uncertainties might mean that lenders aren't keen

to give mortgages around here,

which in turn could hold back the house prices

until there's more confidence that flooding measures

will prevent another event.

With that in mind, what do they think it could be worth?

From what I've seen personally of resales of refurbished properties,

I would expect this one to achieve

somewhere in the region of about £80,000.

On the sales market, the property should achieve

somewhere in the region of £90,000.

That could give them a potential profit of £22,500,

not including taxes and expenses.

But, of course, Denise and Ron are not selling -

this is going to be home for Tyne.

But what kind of rental could they get?

A good rental figure on this would probably be

somewhere in the region of £450 per calendar month.

On the rental market,

the property should achieve £500 per calendar month.

If 500 was achievable, maybe the granddaughter, Tyne,

would have to stay with her mother and we'll get the 500 quid!

Well, they seem quite pleased with those figures.

I'd watch out, Tyne!

So, what's next for Ron and Denise?

Will they be taking some well-earned rest?

We've actually bought another house in the next street along,

which is going to be for our daughter, Renee.

So, we'd be doing that up in the next few weeks.

And we live just a couple of streets away,

so we're all going to be in the same area.

We just hope, fingers crossed, it doesn't flood again.

If it does, we've got daughter, granddaughter and ourselves

all in the flood, so we'll all have to sort it out together!

It was in the derby suburb of Alvaston

where we first came across a three-bed semi

that didn't quite match up to modern requirements.

# Sign of the times... #

This is such a classic design for this kind of house.

The kitchens were always too small.

But there's an easy solution, and that's to take out this wall.

The whole ground floor then becomes just one big,

lovely sort of living area.

# Sign of the times... #

Small kitchen and small bathroom,

but good-sized bedrooms and living space and, well,

just take a look at the garden!

2ft? 3ft? 50ft? 10ft?

100ft? It's massive!

So, while not short of space,

it wasn't actually all in the right places.

But it was a project,

and that's exactly what IT director and project manager Philip wanted,

so he snapped it up for £98,000.

Tell me why you wanted to buy it.

Location, price, type of property, work it needs doing to it.

Right, that's all very boom, boom, boom - are you a boom,

-boom, boom kind of a guy?

-Yes.

MUSIC: Boom Boom by John Lee Hooker

# Boom, boom, boom, boom

# Mm-hm... #

Philip lives 120 miles away in Cambridgeshire, so hoped to find

local builders who could crack on with the work

while he dropped in from time to time.

And he did hope to open up the kitchen

and maybe do a small extension,

all with a budget of £15,000-£18,000

and a fairly relaxed 4-6 month timescale.

So not quite bish, bash, bosh.

Well, just four months later, we're back.

Well, it's just a tidy up upfront, but, hey, that was all it needed.

It was inside where Philip had more ambitious plans.

So, has the tiny kitchen been extended?

# Ooh, ooh, got to turn it around now

# Change the scenery

# Ooh, ooh, got to turn it around now... #

Originally, when we came in, we knew what we wanted to do.

We wanted to take the original kitchen out, because it was tiny,

and extend the kitchen out, which we did,

and that was the main piece of work that we wanted to do.

# Ooh, ooh, got to turn it around now

# Change the scenery

# Ooh, ooh, got to turn it around now... #

Thank goodness that old extension was taken down before it fell down!

And with a new kitchen extension built within permitted development,

it didn't need planning permission.

They just had to meet building regulations.

First floor was more renovation, so we replastered,

and we put a new bathroom in as well.

So, no longer the squashed bath, more a slim, straight suite.

# Ooh, ooh, got to turn it around now...#

And the bedrooms are looking crisp and clean,

though it seemed at one point in the proceedings that getting to this

stage was hanging in the balance.

We found a problem upstairs in that

there's a chimney breast on the far wall there,

which wasn't supported properly,

it was actually sitting off the floorboards.

So, it was self-supporting.

So, it did quite well to stay in place as long as it did.

# Hold on, you know I've got to hold on... #

Note to anyone contemplating it -

knocking down chimney breasts without a support is dangerous.

Moving outside, Philip has had that humongous garden sorted,

and has added an L-shaped patio.

So, what has he got from this project,

apart from a very smart house, of course?

The thing for me is to learn something from every project I do.

So, my learning points

on this particular project are that next time,

when the project is farther away from home,

I won't do any of the work.

It's not cost-effective, it's not effective from a time point of view.

So, the money I spent coming up here and staying here,

I probably would have spent the same amount of money with a tradesman.

For example, I did the painting and the stripping and the wallpaper.

I could have spent that money with a tradesman and had it done quicker.

And on the subject of cash, what about the budget?

The original budget I had in mind was 15-18.

That was purely guesswork.

It was wildly inaccurate as well, unfortunately.

The overall amount we spent was 26,200.

Well, let's just call it 26 grand between friends.

And that, along with his £98,000 purchase price,

takes Philip's little project to 124,000.

So, a sound investment?

What do two local agents think?

First impressions of the property are good, really.

Nice finish, about right for this sort of type of property in this

location. So, yeah, there should be no problem in selling.

The accommodation is nice and open, with this extension and

the fact that they've opened up the living room to the kitchen area.

The other things I like

is the colour scheme in the kitchen, for example.

Very unusual for a house that someone's done up

to appeal to everybody, because some people won't like it.

Not a big deal to change it, but good idea.

Philip would rather sell this house on, but he is open to rental,

should the sale price not be to his liking.

And the agents thought this house could achieve somewhere between

£550 and £625 per calendar month on the rental market.

Those figures are OK. That's roughly what I thought.

Probably more closer to the 650, I would think.

With a top estimate of £625 per calendar month,

there's a potential rental yield of around 6%.

But can this £124,000 investment

get Philip the 20 grand profit he was hoping to achieve?

In my opinion, if I was to place this property on the open market,

I'd recommend an asking price of £155,000.

If the property was offered for sale on the open market

at the present time, I would suggest an asking price of £160,000.

That's pretty much bang on the button for what we thought.

We were thinking 160.

The market will tell us whether it's 155 or 160,

but hopefully there or thereabouts. So that would be great, yeah.

That top figure would give him a pre-tax profit of 36,000.

Wow! Philip said he was a boom, boom, boom man

when it came to projects,

and with that potential profit in just four months,

I think he's going out on this one with a bang.

Well, one thing's for sure -

stories from the auction rooms are never dull,

and we'll have plenty more of those for you next time.

So, join us next time to hear all about them - the highs and the lows.

-See you.

-Goodbye.