Episode 74 Homes Under the Hammer

Hello and welcome to the show.

Now, the auction world is a multi-billion pound business -

but that doesn't mean you have to have millions to take part.

Yeah, and auctions are more accessible than you might think,

and the auction room is a real leveller.

Yeah, all you need is a bit of cash and some confidence,

and you could be buying your next home under the hammer.

With thousands of auction lots going under the hammer each year,

there is a huge choice,

from barns, bungalows and big houses.

Yes, but what inspired the bidders

when they raised their hands in the air on today's programme?

This three-bed detached in Staffordshire

leaves me wanting more.

HE GROANS UNCOMFORTABLY

I'd like to try and create a bit more space if I could.

Lucy's in Thamesmead, London, to see a three-bedroom flat...

or is it?

Look! It's the span of my arms!

That just doesn't work.

This Cornwall cottage completes our trio of three beds.

The final chapter of a story which began in 2012.

That was your last bid?

-Yes, that was our last bid.

-HE GASPS

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.

-All done?

-GAVEL BANGS

MUSIC: Brick by Brick by Newton Faulkner

We're off to Staffordshire, and the market town of Newcastle-under-Lyme,

famous for its felt hat manufacturing.

From the 17th to the 19th-century,

over a third of the town's population

were involved in the industry.

Hopefully today's property will be more of a top hat

than a flat cap.

The property I'm here to see IS on a busy main road

but it's just walking distance from all the shops, schools,

and amenities you could want -

and it's only ten minutes away from the M6.

And here it is. It's a detached property,

has a guide price of £175,000,

and it's got three bedrooms.

Now, in the catalogue, it says it needs a bit of modernisation.

I'm going to see how much it exactly needs.

Well, from the outside,

this looks like a very substantial property,

and I do happen to know that this is a very sought-after area,

thanks to its proximity to the local schools and amenities.

I do like that this house has a bit of a front garden.

Sort of sets you back a little bit from that busy main road.

NOISY busy main road.

Into this really nice hallway.

Spacey, quite a grand entrance, which I do like.

It's a bit dark cos you've got this wood panelling,

but lots of room.

Two reception rooms off the hallway.

Fireplace and a really nice big double glazed window, there.

And from what I can see, double glazed bay windows,

and a fireplace, as well, in here.

Down the hallway... You've got stairs. Down the hallway,

you've got this storage heater there

which tells me there's no central heating in here.

And this strange sort of corner chimney breast

seems to be taking up far too much space.

I'd want to get rid of that,

and most of what's left in the kitchen,

and completely modernise it with a nice, fresh, brand-new kitchen.

And those windows there looking out onto the back garden,

a bit of stained glass at the top, as well, I do like those.

But I don't like that up there.

Signs of a leak,

and I can see some staining on the plaster, as well.

I'm going to have a look upstairs, and I might just find the cause.

Well, before that, let's have a look around this 1950s kitchen.

GENTLE CALYPSO MUSIC

Just at the back, there's a bit of utility space as well

which is always good, as well as a downstairs toilet,

although it might not be in the best place.

Now, this kitchen might not be to your fancy

but there are a growing number of people very keen on '50s furniture,

so before you chuck it in the skip,

it might be worth investigating online

to see if you could sell it to someone

who fancies a kitsch kitchen.

OK, we're upstairs.

They have a decent-sized landing.

I do like this banister, here.

In the bathroom...

Mm. Pink. A very nice shade of pink.

Very small.

You've got a bath and a shower over the bath, as well.

And I can see, as well,

I think that may be the cause of that leak downstairs

in the kitchen. It looks like a towel rail or something has leaked.

A bit further down here, you've got the three bedrooms.

Straight in front of me, you've got a box bedroom, looks very small.

This bedroom here is quite a decent size, bay window again.

Into the third bedroom,

which is nice and bright, a lovely big window.

Fireplace - old-fashioned fireplace, as well.

Lots of stuff to do in this house.

It does feel a little bit small.

As you're walking up to the house,

you think it's going to be quite grand, but it's got three bedrooms,

one of them being a box bedroom.

HE GROANS UNCOMFORTABLY

I'd like to try and create a bit more space if I could,

so I'm going to go out the back,

and see if I can see how we can do it.

MUSIC: Pretty in Pink by The Psychedelic Furs

Unlike the bathroom, the rest of the property isn't in pink.

In fact, I think it really needs a total rethink.

I'm out in the back garden,

and just have a look at the space that you've got out here.

It's been looked after, as well.

You could make it a really nice family back garden.

Right, how can you create a bit more space inside the property?

An extension. You've got enough space in the back garden to do so.

Can you imagine? Two bedrooms upstairs, one with an en-suite.

Downstairs, you'd have a kitchen diner,

little bit more space for your family.

A bit selfish, but that's exactly what I'd do.

This property is crying out for an extension,

but it does depend on what the buyer wants to do with it,

plus any extension work, of course,

has to be approved by planning,

which is not always straightforward.

There is a nice big garage attached to the side of this property

that just adds to the potential here.

Time to hear what a local estate agent thinks is the best option

for this property, guided at 175 grand.

Ideally, given the large plot this property has,

I would like to see it extended.

That's certainly what I would do.

Really turn it into a very large, imposing family home.

I personally would do a 2-storey extension out to the rear,

utilising the large garden.

You'd still have a large garden after that.

Turn it into a four-bedroom, two-bathroom family home.

The agent thinks that this fairly substantial property

could cost as much as 100 grand to extend

and get back into shape -

and remember, the guide price was 175 grand.

So, what could it sell for?

Should the property be restored to its former glory

and have the extension carried out,

I suspect the property would be worth in the region of £345,000.

This is a house with loads of potential in a great area.

If it was mine, I would look to extend,

try and get an extra couple of bedrooms upstairs

and a bit more space downstairs.

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

Attractive house of character, it's detached.

What shall we say for this, 150 to start?

150 bid, thank you. £150,000.

160, can I see now?

160. At 160 now.

170?

£170,000.

180?

Bidding got off to a pretty good start.

We re-join at £240,000.

240?

242?

242. 245?

245.

250. 255?

255. 260?

257.

260, madam? 260.

262?

No?

If not, £260,000 for the first time.

£260,000 for the second time.

Third and final time at £260,000...

GAVEL BANGS

Your lot, madam, well done.

The person doing the hugging there was Hannah,

who got her mum to do the bidding for her.

This property is going to be a new home for Hannah,

and her kids Rio and Esme.

I met her back at the property to find out the plan.

-Hannah, nice to meet you.

-Pleased to meet you.

-Congratulations, by the way.

-Thank you.

I think you've got yourself a bit of a gem.

What sort of... What drew you into this property?

Mainly the location.

I've been living with my parents for the last six months,

trying to find somewhere in this area where the kids go to school.

And there was just nothing on the market at all,

and then the week before the auction,

we spotted the board outside and... went for it.

How was it living at your mum's, difficult?

-OK, it was OK.

-LAUGHTER

You know, having tea cooked every night and my washing done,

-so, you know, it's been quite a nice six months.

-Yeah.

And it's back to reality with a big bump.

What was the first thing you've seen about this property

-that made you think, "Wow"?

-It wasn't so much the property.

As I say it's more the location. But it's a really nice plot,

and obviously it's got a hell of a lot of potential,

so really that's what drew me towards it.

You are in it. Tell me what you're going to do with it.

-Knock it down. No!

-Start again!

Start again!

I'm going to put a double extension on the back,

so, to create a master bedroom with ensuite and walk-in wardrobe,

and that should hopefully also open up the kitchen at the back

and make it into, like, a lounge dining area

with the bifold doors.

Increase the size of the bathroom, if I can, upstairs,

by going over the top of the existing...outhouse area.

And then just updating the whole property, really.

Modernising, plastering walls, changing flooring,

-that kind of thing. So, yeah.

-Have you checked on planning for that,

-are there any issues with planning?

-It's all...

At the moment it's all in the pipeline.

The architect's drawing up the plans as we speak,

and hopefully I don't anticipate there being any problems,

but, who knows, it's obviously... That's out of my hands.

And it's all costs as well. What's your budget? Tell me your budget.

-My budget...

-Fingers crossed!

-It's up to about 100,000,

but I'd like to think that I'm going to spend about 70.

But, if it is that I'm getting towards the end of my budget,

cos my budget is not limitless, that is the budget,

and if it goes over, it's a matter of it might be

that I have to wait a few months to earn the cash to plaster a room,

or do a certain decorating or some floors that I want putting down.

But I think that's a reasonable budget.

I'm going to try and project manage it as much as I can,

do a lot of sourcing of the products and stuff like that,

and I like a bargain, so...

Yes, we all like a bargain.

That's right!

Well, it looks like Hannah's got her head screwed on,

plus she will be calling on help from her family and friends,

particularly Mum and Dad, to try and keep the costs down.

After all, this is not just an investment to Hannah and her kids.

This is the forever home,

this is my home forever,

until the kids are certainly at an age...

You know, I might decide

I want to move further afield or whatever, so, yeah.

But it's exciting, isn't it?

Knowing that this is going to be your home,

your children are going to be living here with you as well,

that's got to be an element of excitement

-from what it is now to what it's going to be?

-Definitely.

It is. It's good fun.

You know, I'm saying that now, and hopefully,

in four to five months when it's all perfect and exactly how I want it,

it'll all be worth it.

I think it will be a lovely home, I really do.

I think you chose very well.

Hannah, good luck, I wish you all the best.

-Thank you.

-Hope it goes well.

-Thank you.

What a lovely lady Hannah is -

and I'm really pleased for her and her children

that they potentially have found their forever home.

Quite a bit of modernisation to be done on the inside,

the extension is a great idea,

cos she's got more than enough space.

I'm quite excited about this one.

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

Thamesmead in South East London is good commuter territory.

The city centre is about half an hour's drive away.

There are two bus routes,

and a 20 minute train ride from Abbey Wood train station -

but the real bonus is Crossrail on the horizon.

This development was part of a '60s futuristic vision,

an attempt, in the main, to offer social housing -

but the site was prone to flooding,

so the living accommodation was limited to the upper floors,

with garages below, and walkways and elevated roads,

which, as Lucy discovered, tend to be a little on the noisy side.

Look up there and you can see it,

and boy, can I hear it!

Well, that's the main A road,

which is great for commuting, but definitely...

Well not the quietest spot, or the prettiest view.

But it's not about appearances here,

because the three-bedroom flat I'm here to see is here.

The guide price was just £90,000 plus,

which might sound cheap by London standards,

especially when the average price in the capital

has just hit £600,000 for the first time.

That's incredible!

In many parts of London prices are still rising,

so this lot sounds like a potential bargain

compared with properties elsewhere in the city.

But, if something seems too good to be true, it usually is,

and there IS a reason for this low guide price.

The fly in the ointment here is its concrete construction,

which is deemed non-standard.

This can make getting a mortgage tricky, and, in turn,

keeps the value lower.

MUSIC: The Sky's The Limit by Jason Derulo

Somebody needs to collect their post!

But you walk in, stairs are right there in front of you,

little cubbyhole area,

you've got a little bathroom and a loo downstairs

and one, two, three bedrooms.

Quite unusual to have the bedrooms and the bathrooms and everything

all downstairs.

So, bedroom there, a little bit on the small side.

Bedroom here, very much on the small side.

Really?! I don't think this is a bedroom.

Look! It's the span of my arms!

That just doesn't work.

The first thing I would have to do here

is to take down this partition wall and open this place up,

even though you do have your own window here,

I just think you can't call this a bedroom.

And it would make next door so much bigger as well.

So really, it's just a two-bedroom flat, I think.

This is a case where two is better than three,

so you're more likely to put off buyers with a tiny room

and you certainly couldn't rent it separately.

So, if you call this a three-bed flat...

MUSIC: You've Got To Be Kidding by Graham Parker

Well, upstairs it gets a whole lot better, and a whole lot lighter.

I mean, straightaway you can see you've got light streaming in

through there, loads of light coming in from the lounge,

which is fantastic.

And then you've got this really odd room, what is it?

I don't know, but it's good for storage, I'll say that.

It's even got a window in it.

In fact, I think that's better than the silly little room downstairs.

But, we'll move on. We've got the kitchen.

Now, this may not be to everybody's taste,

but a big window and a big view.

You look straight out onto that massive, big roundabout.

Great if you love looking at cars.

If you don't, then that's not so great.

But the good thing is you can keep an eye on

your own vehicle down there, because the car park's there.

You've enough space in here for the kitchen,

but there's more.

Follow me,

through the shutters...

And you've got another view. How amazing is that?

Look. So you've got car park and concrete that side,

and lovely greenery this side.

So you could have your table and chairs in here.

You could really improve this room

by just getting rid of all these little cupboards.

The space could be so much bigger.

So, you could have one little view there, little view there.

It's really nice to have a dual aspect kitchen.

MUSIC: Two For The Price Of One by Larry Williams and Johnny Watson

Yes, it's two completely different viewpoints - one urban, one rural -

so, whichever takes your fancy.

The overall view of this split level flat is that it needs some updating,

but it could be a great investment.

Although, if you were thinking of buying to let,

there's something you should know.

From April 2016, additional stamp duty charges came into play

and, well, they'll be applied to any buy-to-let or additional homes.

So, using that flat as an example,

in the past you wouldn't have paid anything

if you'd have bought it for £90,000.

However, under the new regulations,

you'd now be liable for the 3% of the price.

So, buy for the guide,

and that means an additional cost of 2,700 quid.

Definitely something for investors to bear in mind

and to budget for if they want a good return.

A quick check on the government website will clarify it further,

so bearing that in mind,

can the potential uplift here cover any extra costs?

What does the local estate agent think about this one?

First impressions of the flat, it does need a lot of work

to bring up to a lettable standard and for a potential resale.

The layout of the property, with the bedrooms downstairs

and the kitchen upstairs is quite strange,

you don't come across it often, but it kind of works.

There's no point in moving it around,

it's a lot more hassle than it's worth.

I think people'll get used to it.

Quirky can be good -

but surely the biggest attraction here

is a two- to three-bedroom flat

for potentially under £100,000,

just a 20 minute train ride from Central London.

That's got to be a good investment, hasn't it?

Once renovated, this could resell for £160-170,000,

and letting, I'd let it out for £1,000 per calendar month.

So, potential profit to be made here -

and further good news is that there is 111 years left on the lease.

OK, so my first impressions weren't great,

but it did get better as I looked further around the flat.

And if you can buy this for anywhere near that guide price,

well, I think it could be a profitable investment.

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

Lot 114, a split-level flat, in need of modernisation.

80 anywhere? Should be cheap enough.

80,000 is all it was.

Thank you. 80 I've got.

82, thank you.

84.

84. 86.

88.

88. 90,000.

With competition throughout the room,

this lot soon went past its guide price,

and we re-join the bidding at £132,000.

132.

134.

136.

138.

140.

We all done?

Where?

One, leaving it late.

140, more competition.

Are you all right now? One more?

142?

Have a think.

On his first bid at the back, £140,000,

against the lady in the middle, on my right.

Anybody else for lot 114?

If not, 140 for the first,

140 for the second,

140 for the third and final time.

We all done?

GAVEL BANGS

Sold, 140.

MUSIC: The One And Only by Chesney Hawkes

That one and only bid of 140,000,

£50,000 over the guide price, was made by Ross.

Ross has been doing property refurbishment

for the last four years - and, yes, he has bought it as a buy-to-let.

Ross, lovely to meet you, congratulations.

-Thank you.

-So, what was it about this place that made you want to go

-to the auction and bid for it?

-I didn't see this place at auction,

I didn't view it or anything like that, it was a bit of a risk.

Oh, my gosh. So were you in the auction room not knowing what to do

-at that time?

-There was another one I wanted.

And didn't get.

And this one came up. I did read the legal pack on this one,

just to kind of make sure.

When I first saw it in the photograph, I thought, "Oh, no,"

but then I started to see it from a different perspective.

I thought about the redevelopment, I thought about the rail link,

I've thought about potential rental...and the spacious rooms.

Does it excite you doing things like that,

just plunging in at the deep end?

Yes, I'm a bit of a risk taker.

But do you feel positive now that this was a good buy for you?

Yes. I think so.

Well, one of the Hammer golden rules

is definitely to view a property before you buy it,

and it's extraordinary how many people don't.

But at least Ross HAD read the legal pack

and did know that concrete construction

may hold back its value.

You've got to do a lot here to make it look loved.

-Yes, it needs a lot of love.

-So, how are you going to show it the love?

With a lot of thought and a lot of elbow grease.

I've really got to strip the wallpaper back,

possibly re-plaster,

flooring laminate, new carpets,

new kitchen, obviously.

There's potential, as well,

I could remove that wall potentially downstairs.

-It's tiny.

-Tiny?!

Have you even laid down in that space?

It probably just takes your body space, really.

I think it would be good for a hobbit or someone.

LAUGHTER

They're hard to come by.

Well, there's not so many hobbits in Thamesmead.

Maybe out in the shires, though -

and if anyone knows a hobbit when he sees one,

it should be Ross, because outside property developing,

he's been on his fair share of film sets.

So tell me what you do alongside property developing?

I do a bit of extra work as well.

-Do you?

-Yes.

-So what's that like?

It can be quite fun at times.

It can also be very boring, waiting around.

I've done the usual. EastEnders, Holby City,

some big films, as well.

Wow.

So, I suppose that does work really well alongside property developing

because you can pick your own times.

Yes, that's right. Not condemned to an office from nine until five.

Tell me about your timescale.

I'm hoping to get it done in around two to three months,

hopefully less, but that's the longest stretch.

And your budget?

Initially it was ten, but I'm thinking

it's going to be more like 15 plus.

I always estimate worst-case scenario,

and then try and scale it back.

Ross, it's exciting to see what you're going to do here.

-Good luck with this.

-Thank you.

And we'll be back in three months' time to see how you've done.

-Thank you so much.

-Congratulations. Well done.

I would definitely not recommend buying at auction like Ross did

without looking around first, but well,

now that he's seen what he's contending with,

he has some decisions to make, and some work to do.

You can join me later on in the programme

to find out what it actually looks like when it's finished.

Coming up, a conclusion in Cornwall -

but Sarah's lounge floor flagstones are proving elusive.

We are slowly collecting them as we find them.

And in Thamesmead, London,

will the tale of two tiny bedrooms

turn into an epic drama for film extra Ross?

It's time to head back to Newcastle-under-Lyme

where, earlier in the show,

I visited this rather grand looking Victorian property,

guided at £175,000.

Despite its imposing appearance, the inside was a bit disappointing.

It does feel a bit small.

As you're walking up to the house,

you think it's going to be quite grand, but it's got three bedrooms,

one of them being a box bedroom.

HE GROANS UNCOMFORTABLY

For every problem there's always a solution,

and I didn't have to walk too far to find it.

How can you create a bit more space inside the property?

An extension.

Great minds think alike,

and new owner Hannah had planned to extend to create an extra room

for herself and children Rio and Esme.

I'm going to put a double extension

on the back to create a master bedroom with ensuite

and walk-in wardrobe.

And that should hopefully also open up the kitchen at the back.

But this wasn't just an investment in bricks and mortar.

This is the forever home.

Until the kids are certainly at an age...

and I might decide that I want to move further afield, or whatever.

She bought this house at auction for £260,000,

and hoped to spend a further 70 grand

completely modernising the property and adding a double extension.

17 months later, we are back

to see how Hannah has got on with her forever home.

MUSIC: Celebrate by MIKA

What an amazing transformation.

The new double extension has added so much space to the house

and the existing rooms have been modernised beyond recognition.

Upstairs there are now three double bedrooms,

one for each of the family.

There's also a study which Hannah uses as her office,

and a large family bathroom with twin sinks,

which is handy for the teenage children.

Hannah's bedroom also has a walk-in wardrobe

and a luxurious ensuite.

I guess my favourite feature is my bedroom.

I'm really glad I had French windows in there.

It just makes it so light,

and it's just absolutely lovely to lie there with the light

coming through the window.

But it's downstairs where the extra space can really be felt.

In addition to the kitchen and lounge,

there's room for a utility and toilet.

The former front reception rooms are now a dining room

and lounge for the kids.

In fact, there might be too much space.

The kids never use their lounge, they always use my lounge.

SHE LAUGHS

The dining room, again, looks great.

But it's a dining room, and I don't really do dinner parties!

SHE LAUGHS

Indeed, there's plenty of space,

but sadly not many original features left.

The builders stripped the house bare but did uncover one beautiful item.

The one thing that I did end up keeping was

the Minton floor in the hall.

I didn't even know it was there until we lifted the carpet up.

It's not 100% keeping with what the rest of the house is,

it is very much traditional, whereas the house is quite modern.

But you can't cover up a Victorian floor.

Going from this...

to this has taken Hannah a lot longer

than her original four to five month timescale.

Clearly it took an extra year on top of that, and some.

Initially the planning permission was refused

because the house has got quite a Victorian frontage

and obviously my design hadn't.

So it was rejected on the fact they didn't feel it would fit in

with the surrounding area.

So obviously then I had to resubmit the plans,

which then put the project back by at least another seven months.

Then the weather, of course, was completely against me.

It came to a stage where the roof needed to go on

and it just... We didn't have a dry day. We're just about there now.

I have a bedroom, I have a kitchen,

I no longer eat in the pub across the road every night.

And in the process of dragging this job over the finishing line,

Hannah may have just broken

an unofficial Homes Under The Hammer record.

I was let down by a lot of people.

In the end I think I had eight plumbers in total

that have been on the project.

Eight plumbers?

Wow. At times,

having a finished house must have felt like a pipe dream to Hannah.

And it's now complete - but has her budget sprung a leak?

Initially, I said the budget was 70,

but I could extend it to 100,

but I didn't really want to spend much more than 70.

Clearly spent a lot more than 70!

SHE LAUGHS

It was around 92,000 that we spent in the end.

Well, I'm going to say you came in under budget.

What's been the hardest bit of this project?

The biggest challenge has been living in it and coping mentally!

The stress of having two children, teenage children,

and being a single parent and trying to manage a house with no kitchen,

no bedroom and no heating did all become quite a lot at one stage.

I just don't think that I realised living and working in the same kind

of place with two children would be quite as stressful

as it actually is, it's not like you can get out of it.

You wake up in the morning and it's still there -

but certainly now, it just feels so homely,

and it does feel like all the effort and all the tears and sweat

and the toil are all worth it.

Now I can't wait to get back to work...

for a rest!

It sounds like Hannah has been through the wars with this project.

But the end result is a fantastic home for her and her kids.

Even though the house will not be going up for sale,

we've asked along two local experts for their views and opinions.

First, the agent who saw it last.

The biggest noticeable difference is of course the two-storey extension

to the rear. That was exactly what the property needed

to fulfil the plot size,

and the family room, the very large family room off the kitchen,

is just very on-trend at the moment

and will really help sell the property.

What a substantial property.

A nice mix of the new,

and the original features and character of the property.

This is a very, very desirable property.

With a spend of 92 grand added to the purchase price of £260,000,

Hannah has spent a total of 352 grand on this project.

What do the agents reckon this house could sell for?

We'd be looking at an asking price of £395,000.

I would look to market in the region of £400,000.

That is a lot more than what I was expecting,

by about 20 or 30,000 more than I thought.

A sale of 400 grand would mean a pre-tax profit for Hannah

of £48,000.

There's absolutely no chance that I will sell it.

The only time that I would ever move from this house

is when the children go off to university

and I decide to emigrate somewhere hot.

It's fair to say that Hannah's just glad it's all over.

So, does she have any words of wisdom for would-be developers?

Don't go on Homes Under The Hammer!

LAUGHTER

Don't buy a house! Don't do it up yourself!

No, what I would say I've learned is...

probably leave it to the experts.

Back in time, now, to 2012,

and the popular holiday county of Cornwall.

The property I went to see was on a busy road.

It was a three-bed country cottage.

Cornwall, country cottage?

Surely you would expect it to command a top price.

However, the guide price is intriguingly low, just £40,000.

So what's the catch?

I didn't think that the busy road was enough of a negative point

to drive the guide price so low.

The roof looked like it needed work,

but even so, £40,000?!

Plus, off the main road was a charming, large rear garden

with parking for several cars.

So, can you work out what the catch was?

Straight into the kitchen,

Bit of a downside. That is the loo and bathroom,

and it's the only one in the property.

Is that the main catch?

No.

And I'm sure you could live with that.

You've got a sitting room, front sitting room there,

with an open fire, which is nice.

Kitchen itself... Well, it's kind of quaint.

My guess is it's built into some kind of an extension at some point.

It needs a bit of work,

but actually it's pretty in keeping with the cottage itself.

Through here and I'm getting the feeling this could almost

have been a couple of cottages knocked through at some point,

because there's another sitting room here,

like a middle sitting room through to another lounge

at the front there.

Again, downside,

right by the side of the road.

However, none of those things are the catch.

The catch is, in case you hadn't guessed.

This place is actually lived in by somebody.

There's a tenant in place and a rent is being paid.

What's the problem with that?

You could say that's actually quite good news.

Trouble is, that rent isn't necessarily the full market rent

at the moment, and you don't know what the tenancy agreement is

that's in place.

Is it an assured shorthold tenancy agreement that you can change

and maybe ask the person to move out?

is it... Well, does it exist at all?

There's all sorts of unknowns,

and those definitely need to be sorted out,

because it makes this...

not an ideal one to go for, perhaps.

MUSIC: Turned A Light On by KT Tunstall

If ever there was a case for reading the legal patent very carefully,

this was it.

An assured shorthold tenancy gives the landlord the right,

with proper notice,

to regain possession after the fixed term of the tenancy is up.

However, an assured tenancy is more complex

as there are limited circumstances

whereby a landlord can take back possession.

It's all very complex,

but you can bet you can't buy a place and just move right in.

Back to the house itself, upstairs.

In order to access the third bedroom,

you have to come through here.

I mean, in terms of layout, it's not ideal at all.

The bedroom itself is quite good, so what's the solution?

Well, it might not be as expensive or difficult as you might imagine.

Just moving the stairs to the centre of the property

would solve all your problems.

Well, that would gain access to the front bedroom

from the opposite corner.

MUSIC: Move It On Over by Hank Williams

And the rear bedroom and master bedroom

would also have their own separate doors, a much better arrangement.

But all these changes would need checking

with the planning department, as the structure was built in 1847.

The agent who viewed the property said, once renovated,

and assuming no sitting tenants,

the market value would be in the range of 125 to 130,000.

At the auction, we saw the successful bid come from Sarah.

-All done...

-GAVEL BANGS

Yours at £60,000.

Very happy, smiley face, that's nice.

There with her husband Graham and their next-door neighbours,

you guessed it, Sarah and Graham were the existing tenants

along with their four-year-old son Toby.

While Toby's dad Graham was out working at his job as a gardener,

I met up with Sarah,

who runs her own child-minding business from home.

I wanted to find out exactly why she was so bowled over

with buying this property for 60k after renting it for some 16 years.

-Congratulations.

-Thank you.

-Were you happy with what you paid?

It was right on our limit.

We couldn't go any higher than that.

-That was it?

-That was it.

-That was your last bid?

-Yes, that was our last bid.

I had to look confident and just try to go for it...

hoping that whoever it was bidding against us would stop.

Have you thought about buying it before?

Yes, we had tried to put an offer in beforehand.

It was declined.

How much was your offer for?

55.

-OK, so you had to pay a little bit more.

-Yeah.

The prospect of the sale of this house, what did that mean to you?

Erm...

It was very nerve-racking,

not knowing what was going to happen, really.

It was like we had to go for it or...

What would the worst-case scenario have been?

We were always told they couldn't get us out,

so if anybody else bought it,

it would have to deal with somebody else

and hoping they would do the house up,

because there's a lot of work needs doing to the place.

-Right.

-But how they're going to do that while we were living in here

was all going to be...

very difficult.

So you say they couldn't get you out, what do you mean?

No, we had an assured tenancy.

-For how many years, though?

-Well, we have never signed anything,

there wasn't anything in place,

we were told we could stay here as long as we'd like.

The complex issues of the tenancy

and the outstanding work seems to have helped

keep their house affordable.

It turned out to be a good buy,

as a mortgage lender valued the property at 120,000.

So you got a £120,000 house for 60,000?

Yes. Yes.

So...

that was our one and only option, of buying our own home,

and it's worked out, thank goodness.

MUSIC: We Did It by Loleatta Holloway

They did indeed do it thanks to Sarah's poker-faced technique

at the auction,

so now it was theirs, ownership begged the obvious question.

What are you going to do to it?

Well, we're hoping to get the bathroom upstairs.

Right, where?

Erm, in the large bedroom, just cut that up a bit, hopefully.

-OK.

-And if we can move the stairs,

hopefully that will separate the house into three bedrooms

-and a small bathroom.

-And the bathroom downstairs, keep that?

No, we'll move that and turn that into, hopefully,

get some planning to extend out slightly and have a kitchen diner.

Husband Graham hoped to do most of the physical work himself

with the help of a builder friend.

The intention was to do it in three stages.

Stage one, repair the roof,

and replace the windows.

Stage two, move the stairs,

and fabricate the upstairs bathroom.

And stage three, add the extension and a new kitchen.

And they weren't sure how far their initial budget of £8,000

would stretch.

We returned two years and four months later,

Sarah and Graham's 19th year in the property.

MUSIC: Stay With Me by Rod Stewart And The Faces

Toby's bedroom had sprouted some fitted furniture.

The master bedroom's footprint had transformed into a guest bedroom

and, as planned, a family bathroom.

These were stage two jobs,

but they hadn't skipped on the stage one ones.

Windows, we did first, that was the easier job.

And then we did the roof.

We still have to...

redesign the kitchen and hopefully do a kitchen diner,

with windows looking out to the garden,

which hopefully will be next year.

And we still want to do the flooring in the other room.

We found flagstones under the carpet,

so we want to restore them, so...

The work done to this point had certainly made a difference.

The major external jobs on the roof and windows

made the cottage look much neater.

Sarah took us through some of the changes.

In this room, we have moved the stairs,

we had the stairs, before, here in the corner in a cupboard

and now we've moved it to the centre of the house, going up.

And, also, we've removed the wall to open it up,

and give us a little more space and light in this room, which is great.

Sarah and Graham's bedroom was a work in progress

but Toby was straight to the point about his.

It's good.

He loves his new room. He is so proud.

He always wanted fish, something he always said,

as soon as you have your new room, you can have some fish.

So, he's now got a fish tank.

We met Toby's new pets, Goldie, Wriggler, Spotty and Stripy.

But these weren't the best bits of his new room.

It used to be a bit long travelling to the bathroom,

because we had to go all the way downstairs.

Until funds permitted, stage three was in the pipeline -

but Sarah felt very different,

now that they were the owners and occupiers,

instead of being tenants.

Now it's ours and because we've put the work in, as well,

it makes us feel, you know, we feel like we've done this.

And knowing that you're not putting money in,

where you're wasting it and somebody else might take it away from you,

so, yeah, everything we put in it is ours, now.

MUSIC: Home by Edward Sharpe And The Magnetic Zeros

I was curious how the £8,000 budget had fared.

We're at about 10,000 now, so, yeah.

with the roof and the windows, and the new chimney as well.

At this time, estate agents value the property at £125,000.

You can find out how Sarah further progressed her dream home

and what happened to Toby's fish later in the show.

Well, we wait patiently while our buyers get on with their renovations

and, often, things turn out marvellously.

Yeah, but sometimes things can go wrong, for a variety of reasons.

Why don't we find out how our two remaining properties got on today?

Time now to head to South East London and to Thamesmead,

to catch up on a split-level flat that Lucy saw.

And although the catalogue stated it was three bedrooms,

this was being a tad optimistic.

MUSIC: Ain't Quite Right by Paul Stanley

Look! It's the span of my arms!

That just doesn't work. The first thing I would have to do here

is to take down this partition wall and open this place up.

Even though you do have your own window here,

I just think you can't call this a bedroom.

And it would make next door so much bigger as well.

So, really?

It's just a two-bedroom flat, I think.

In fact, it had two of a lot of things.

Two floors, one for the bedrooms and bathroom

and one for the lounge and kitchen.

It had two views, one rural, one urban.

So you were spoilt for choice.

Not that part-time property developer

and part-time film and TV extra Ross knew any of this

before he bought it with a single bid of £140,000.

-GAVEL BANGS

-Sold.

MUSIC: A Leap Of Faith by Delbert McClinton

I didn't view it, or anything like that.

-It was a bit of a risk.

-Oh, my gosh!

So, were you in the auction room not knowing what to do at that time,

-and...

-There was another one that I wanted...

-and didn't get.

-And this one came up.

And I did read the legal pack on this one, just to kind of make sure.

When I first saw it in the photograph I thought, "Oh, no."

Then I started to see it from a different perspective.

I thought about the redevelopment, I thought about the rail link.

So, I thought, hmm...

You know? Why not?

Yes, one of Hammer's golden rules straight out of the window -

but Ross was reasonably happy with his purchase

and even seemed to have a solution to that so-called third bedroom.

-That's really it.

-I think it would be good for a hobbit or someone!

-LAUGHTER

-But they're hard to come by.

Accepting the lack of hobbits in Thamesmead,

Ross did plan to open up the bedroom,

rework the kitchen,

and give it the complete works, on a budget of 15 grand,

and a three-month timescale.

Provided, of course, Stephen Spielberg didn't phone him up,

and want him for his next blockbuster.

MUSIC: The Extra Mile by Bee Gees

Just two months later, we're back.

Has Ross given this flat an extra something?

Why, yes, he's gained more by going for less.

There's just one decent bedroom, instead of two tiny ones.

The other bedroom on this floor is crisp and clean...

..though he has decided to keep the bathroom and toilet separate.

So, bedroom and bathroom sorted out.

But what about the upper floor with the kitchen?

Ah! That's better.

So, in this room, I got rid of all the old kitchen here,

and put a new kitchen in, and there was a big wall here.

OK, and a massive water tank.

So we ripped that all out and opened up this space.

And I can justify this area as a living area.

By calling this a living area,

Ross is hoping that the lounge next door will be considered a bedroom...

..returning the flat to its former three-bedroom status.

But how heavily has Ross been involved?

Was he an extra pair of hands, or was it a starring role?

I was very hands-on, I was here every day...

for the whole project.

My builder had done the major works, you know,

things I couldn't do, like plumbing work, electrics

but from my perspective, I did all the decorating,

removing wallpaper, painting, helping with everything, really.

Ross hopes to finish the slick, modern production

in a couple of weeks, ready for general release

on the rental market.

But this wasn't a big budget production,

so did he stick to his £15,000 planned spend?

I did it within the budget, actually,

it's £13,000 I spent in total.

£13,000 on top of a £140,000 purchase price

takes Ross's total to £153,000.

And with the flat being of concrete construction,

there is a limit to what is worth doing here.

So, has he made the right choices to maximise its potential?

What do two local estate agents think?

My first thoughts on the property, it's really, really well presented,

good layout, and I like what the owner has done to the house.

I like the finish that he's put,

particularly in the kitchen and bathroom.

And the option that you can have this as a third bedroom,

as well as two.

This was always planned as a rental project,

but has he increased the value of the flat

he's invested 153 grand into?

If we were to put the property onto the sales market,

we would value the property between £175,000-£180,000.

Due to the property being a concrete build,

if this was going to be resold,

I believe we'd be able to fetch in the region of £175,000.

Yeah, that's OK, that's about the ballpark,

180 would be good for this time.

Next year, when Crossrail goes in, I think it will jump a bit more.

So, I was thinking about that.

But, yeah, that's good.

A potential pre-tax profit of £22,000-£27,000.

Well, it won't break any records, but it's OK.

What about the all-important rental value?

I would expect monthly rental to be around £1,000 per calendar month.

Pounds per calendar month,

I believe we'd be able to achieve in the region of

£1,100 per calendar month.

Yeah, I mean, 1,100 would be good.

If I were to rent it out to students, let's say, individually,

on a bedroom basis, I could achieve 450 per bedroom,

that would make it £1,350.

So, there's that option, as well.

The £1,100 per calendar month would give a yield of around 8.5%,

which certainly will generate some extra income for Ross.

But having bought this one blind,

is he going to mend his ways,

and be more diligent next time?

No, I took a massive risk, which I have done several times before,

erm, but there's something about the risk and the challenge

that I just keep...

I can't help myself!

Well, Ross may have got away with it this time,

but I can't emphasise enough, always look before you leap!

MUSIC: I Can't Help Myself by The Four Tops

Previously, I was in East Taphouse, Cornwall,

where, in 2012, on a busy road,

I looked at this three-bedroom semidetached cottage.

It had plenty of off-road parking with potential for a superb garden,

thanks to the large plot.

60...

When it went to auction, it had a relatively low guide price

of £40,000 because it was auctioned with sitting tenants,

and it was those sitting tenants who succeeded in purchasing it

for £60,000.

-All done.

-GAVEL BANGS

Yours at £60,000.

Very happy, smiley face.

That's nice.

Childminder Sarah and gardener Graham

were the new owner-occupiers,

and set about the changes that they wanted to make to the cottage

where they'd lived already for 16 years,

and son Toby had lived in for four.

In the years to come, Graham and a builder friend got to work,

split into three stages.

When we last saw it in 2014,

there were new windows and roofing.

MUSIC: Hard Work by Ella Henderson

The bathroom had moved upstairs.

And the staircase had moved, too,

all of which added £65,000 value

to the £60,000 Sarah and Graham had paid for the property.

Not that this was a moneymaking venture,

more the creation of a forever home.

But not until they'd saved for stage three.

We still have to redesign the kitchen,

and hopefully do a kitchen diner with windows looking out the garden,

which hopefully will be next year.

And we still want to do the flooring in the other room.

We found flagstones under the carpet, so we want to restore them.

Well, we're heading back four and a half years

after they first bought the house that they've now lived in

for over 20 years.

MUSIC: Feels Like Coming Home by Jetta

The new extension, with fully fitted kitchen diner,

has certainly been worth the wait.

It's got all that Sarah could possibly wish for -

but let's not forget

she's been wishing for it for over 20 years now,

so she has had immense patience.

The light and airy extension gives views over the Cornish countryside

that were never seen before from downstairs,

and husband Graham cashed in part of his pension to fund the work.

Sarah is pleased as punch with the outcome.

The kitchen diner has made a huge difference to us.

We are able to see Toby play in the garden,

we've got the extra space now,

we can all sit together at the table

and, you know, enjoy meals as a family.

The downstairs bathroom area is now a hanging space for coats

and a small lobby with a downstairs loo and sink.

There's also featured exposed original brickwork here.

Sarah and Graham's bedroom has also been completed.

The windows are in keeping with the period of the house,

being sash in style,

but they are double glazed to keep out that traffic noise.

What about the plans to restore the flagstones?

The flagstones, we haven't quite managed to do yet.

We are slowly collecting them, you know, as we find them,

and then once we've got all the flagstones to cover the area,

we will re-lay the floor.

I'm sure Sarah and her gardener husband Graham

will leave no stone unturned in their bid to unearth

the rest of the slate required for the floor.

MUSIC: Joyride by Roxette

Toby has grown up in the house,

and it seems that cricket practice has paid off.

Toby at the moment has got into sport in a big way,

with both his cricket in the summer and his football,

he's just been signed up

to play with the under nines with Plymouth Argyle.

So that has taken most weekends,

and two evenings during the week, of training,

is completely gone, of our time!

SHE LAUGHS

Sadly, Sarah and Graham's time isn't the only thing that's gone.

Wriggler, Spotty and Stripy have gone too.

We are down to one fish now, Goldie.

He's rather big!

SHE LAUGHS

So, yes, we're down to Goldie.

I don't think it would be polite to mention time-SCALES here

but what about the budget?

The last time you were here, we spent about £10,000.

Now, we have spent another £15,000,

extending the kitchen and putting a new kitchen in.

Along with the auction price of £60,000,

that's a total of £85,000.

That must have added significant value over the years.

We're never going to sell, this is our home and it always will be.

Sarah, Graham and Toby are just delighted to have their own home -

but you know us, we like to know the numbers.

Just call us nosy!

So, we asked along two local estate agents

to give us their thoughts and valuations.

Really pleased with the property, they've mixed a good amount of

old property and new property together,

with the Delabole slate floor and that in the lounge area,

the wood burners, but they've also brought in modern heating

in the form of electric heaters, which are really efficient as well.

So, overall, really pleased with the fit and finish of the property.

The property would appeal to families with children,

especially because of the garden and its village location.

So, what is all this translate to for the £85,000 investment,

when it comes to a market value?

In this present market,

the property would achieve in the region of £150,000.

Sales valuation on this property is in the region of £175,000.

That's £90,000 potential pre-tax profit.

What do you think of that, Sarah?

Makes no difference, but, you know,

these valuations make no difference to us whatsoever.

This is our home.

So, I guess you won't be down to the auction room any time soon.

That's probably it, yeah.

SHE LAUGHS

I can't see myself being a builder.

And what does Toby think about all the years

that Mum and Dad have been working so hard?

Very proud.

Yeah?

THEY LAUGH

And apart from sourcing the Delabole slate for the lounge floor,

are there any more jobs for Graham to do?

Just the garden, maybe!

Well, he's been gardening for customers all week,

and then refurbishing all weekend,

so I think we can let him off that one.

Any final thoughts on the project?

In the mornings, we wake up

and we just feel so, so lucky

to have this beautiful house that we have,

and it's always going to be ours and it can't be taken away from us.

And you can't say fairer than that!

We hope you enjoyed today's auction stories -

and there's loads more where they came from.

Yes, your auction action never stops, and neither do we.

So, join us next time for more Homes Under The Hammer.

-Goodbye.

-Goodbye.