Episode 16 Homes Under the Hammer

Hello and welcome to the programme. Now, over the years, we've met literally thousands of people

who've spent their money on auction property.

Yes, we have, Martin.

Loads and loads of people have been successful

but we've been working too hard

and I think we need an extra pair of hands to help us along

-to meet some more people.

-We do.

-We've got just that person.

Brand-new member of the team, Martel Maxwell.

-Hello!

-Hiya.

-Nice to meet you.

-Thank you.

Property's a real passion of mine and I can't wait to travel

the length and breadth of the country,

just seeing what's on offer under the hammer.

When it comes to buying at auction,

you've really got to do your research,

and one thing, Martel, always expect the unexpected.

Well, I know from my own experience, Martin,

that really is certainly the case.

There are so many pitfalls and traps you can fall into,

especially when there's a lot of money at stake.

Yeah, but if you get it right,

it can be a lucrative and enjoyable business.

Let's find out if the buyers on today's show rose to the challenge.

First up, I'm in Godalming, Surrey,

and I may be new here but I know my stuff.

I'd say that toilet's definitely blocked.

And in St Georges, Telford,

I've been around long enough to spot a hazard or two.

Yeah, this is definitely looking like hard hat territory.

Whilst in Smethwick, West Midlands,

all you need is a little know-how and imagination.

Some stools on this side, sit down, have your breakfast,

two or three of you.

All these properties have been sold at auction.

We'll find out who bought them and what they paid for them

when they went under the hammer.

Your lot, sir, well done.

MARTEL: This popular market town in Surrey is called Godalming.

There are plenty of historic buildings with the River Wey

winding its way through the town,

and there are some lovely riverside walks to enjoy.

Godalming has a place in history.

It was the first UK town to offer electricity to consumers in 1881,

when they used surplus power from street lighting

powered by a water wheel.

Sadly, technical issues meant

the town had to revert back to gas lighting until 1904.

# Electricity... #

This street is around a ten-minute walk from Godalming High Street.

And I'm told it's a very desirable part of town.

So far, so good.

I'm here to see this two-bedroom ground floor flat

with a guide price of £140,000.

It's in this building.

I'm happy with that. Let's hope it continues.

This is one of four flats in a very impressive building,

and the entrance to this one is tucked around the back.

So, in we come to a very small vestibule.

Nice tiles. Through to...

Ah, now, I thought this would have been a hall

but actually, it's a square reception room,

which is quite solid, dated, textured ceiling needs replaced,

and you've... All your rooms are off this one room.

So, you have your small bedroom,

not much more room in there than a double bed, really.

And a kitchen,

a pretty pokey kitchen at that.

And then, behind that kitchen, you have your shower room.

This, I'm pretty sure,

was a one-bedroom flat and it's been changed into a two-bed

because this would have been the bathroom at one stage

and your smaller bedroom would have been the kitchen.

That makes sense, so it has been converted.

Good news, you've got some central heating, double-glazed windows.

And through we come to the main bedroom.

Now, this is nice.

What a shame this isn't the reception room, though.

You've got light flooding in, beautiful big bay windows,

and you've got some nice character, which the other rooms are lacking.

I like this a lot.

If only you could have your entrance right here.

But it might be tricky to put a door here

because on the other side of this wall is an entrance hallway

for the other flats in the house.

Like many flats, this one is leasehold.

A new 99 years lease will be granted upon completion of the purchase.

So far, things don't look in too bad condition.

In the bathroom... Ah, I spoke too soon.

So, I don't know what's happened here,

if there's been some sort of flood

but it definitely requires some investigation.

This bathroom is... Well, it doesn't have a bath in it.

It's very small.

Ideally, you would want a bath, perhaps with a shower in it.

Pretty cramped, but maybe doable.

And now, I'm no plumber, but I'd say that toilet's definitely blocked.

Moving swiftly on, there's a bit of a clear-out needed here.

But there are bigger problems to sort.

The layout doesn't quite work.

You're walking into your sitting room,

you've got a pokey, wee kitchen and behind that,

you've got your shower room.

But what are the options to make it work?

Well, I guess you could revert back to being a spacious one-bedroom.

That would be nice.

But of course, it would bring down your property value

and I'm guessing that's why they upped it in the first place.

You could also bring your kitchen out here and have a really nice

open living space, although it would be pretty small.

Or, as long as you have your new kitchen, new bathroom,

everything's spick and span, you could keep it as it is.

So, I guess there are a few options worth considering.

We called on the services of a local estate agent for her opinions.

One thing she approved of is the entrance to the flat.

'People like their privacy of shutting their own front door

'rather than going into and maintaining a communal area.'

Any other plus points?

This is a very desirable location.

It has major routes into Guildford and London,

and Portsmouth and to the A3.

So, would having two bedrooms be another plus point

in terms of sales values?

To have this as a two-bedroom

wouldn't command a great deal of difference in money.

I think a very modern, high spec one-bedroom

would probably command similar to a two-bedroom.

Interesting. Either way, if you could get the flat

for anything like the £140,000 guide price,

what could it sell for, once renovated?

As a one-bed, £230,000 on sale.

As a two-bedroom property, a sales value of £245,000.

The agent thought the rental values would be £995 per calendar month

for a one-bed and 1,050 per calendar month for a two.

This property does need work and I'm not convinced about the layout

but it could make a great home for someone

and it's a very desirable location.

Let's see who saw the potential when it went to auction.

Lot 72.

Really, really like Godalming.

150, anywhere?

150 with you, sir.

155. 160.

165. 170.

175. 180.

185. 185, a new spot.

190. 195.

At the back? Back to you.

190. 192, if it helps.

Yes?

190. 2,000 anywhere?

If not, 190, first time...

192, well done. 194.

196. 198.

200, sir?

198 first time, second time,

third and last time if you're all done.

Sold, 198.

Unfortunately, our cameras didn't catch the successful bidder, Raj,

who was at the auction bidding for himself and his wife, Diana.

They live nearby and had considered purchasing a house

rather than a flat,

but the ones in their price bracket needed too much work.

So, time to find out about their plans for their £198,000 purchase.

-Raj?

-Hi.

-Hi. Diana?

-Hi, nice to meet you.

-Congratulations.

-Thank you.

-Thank you very much.

So, was this your first auction?

-Yes.

-Yes.

-OK, talk me through that.

-Was it exciting?

-Before we got to my lot, I was quite calm,

but at the moment it came to lot 72, that was it.

Did you get carried away?

No, I think... I hope I didn't. I don't know.

-Diana was watching it on the web.

-I was watching live.

I see, you were watching live.

-But you couldn't communicate?

-No.

The couple had agreed to a top bid of 200,000,

so just got under the wire,

and although this is their first project, they've done refurbishments

on their own properties in the past.

So, how is that experience?

It's very difficult to live in a house

-and do a project at the same time.

-Yeah.

Whereas at least this place will be empty,

so it should be easier to manage.

And do you plan to rent it on or sell it?

-Hm.

-We're undecided.

-Yeah.

-Oh, OK.

I think we just have to wait to see how the numbers really stack up.

Because that's the key for us.

If we were doing this as our business,

this would be our livelihood, so we need to see whether we can recycle

enough out of the property to do the next venture, whether that...

Hopefully, if we can keep it, great.

If we can't, then we'll sell on

and then we'll move on to our next property. That's the plan.

Diana and Raj have just returned from seven years abroad

and property development is quite a career departure for them.

Raj was a subject matter expert for a facilities company,

whilst Diana...

I was on overseas postings with the Foreign Office.

We were in Bangladesh, Egypt, and most recently, Abu Dhabi.

Wow, that's exciting.

What's it's like coming back?

-Er...

-Cold.

-Yeah!

After those exotic places, no surprise.

One thing they have looked into is the hole in the bathroom ceiling.

It would appear that some bees have made their home

in that cosy insulation. So, what's the plan?

That's just a cosmetic fix.

As long as the hive's dead, which I'm pretty sure it is,

it will just be a cosmetic repair. There's no real issues there at all.

How hands-on do you intend to be?

Very hands-on. I'm a qualified electrician,

so there's nothing in here that I can't do, or am afraid of doing.

So, the only thing we will do professionally,

or get in professionals for, is the gas work.

We get gas-safe engineers to do that work.

But the rest of it, it's fine.

-Doesn't faze you one bit?

-Not at all.

Well, let's talk through your plans for the interior.

What do you want to do inside?

-Your bit. The design aspect.

-New flooring throughout.

So, you're design?

You're taking charge of the electrics?

That's it. Ideas and implementation. That's how it works.

Oak flooring here in this room and in the bedrooms.

Tiling in the bathroom and the kitchen.

New bathroom, new kitchen.

-Relocate the boiler.

-Yeah.

And actually, make a lot better space usage than at the moment,

because it's pretty poor.

Do you intend to change anything about the layout?

We looked at three different options

about what we could do with the layout.

And one of those was to turn it back into a one-bed.

But then, the numbers don't stack up to do that.

You would get a very good one-bed, because the front bedroom is huge,

and that's lovely.

But then you would have a good-sized bathroom and kitchen

but then there's no place to escape for somebody who wants,

perhaps, an office or a study, or a second bedroom.

We're going to move the boiler from the bathroom to the kitchen.

We're hoping to get a really small-sized bath,

so we can have a small bathtub but with a shower.

And be a bit clever about the space with the cupboards

and the design of the kitchen.

Using the space well will be key.

They hope to get it done in 12 weeks

and they set aside a budget of £15,000,

so not including fees, that would bring their spend to 213,000.

The agent thought a two-bed could sell for 245,

so there's a bit of wiggle room.

Do you have any other plans for any...?

-To add a bit more character to the place?

-Yeah.

Yeah, we have an old fireplace in our garage,

which we've had for years.

So, we're hoping to put that in the reception room.

Well, I can't wait to see what you do with the place.

-Best of luck.

-Thank you.

-Congratulations again.

-Thank you.

-Looking forward to seeing the end product ourselves.

-Me too!

It's all change for Raj and Diana.

They've recently moved back to the UK

and now it's time to embark

on their exciting property development career.

How will it all go for them? You can find out later in the show.

MARTIN: Telford in Shropshire now, and the suburb of St Georges.

Telford grew in the '60s and '70s

by forming several smaller settlements together

and St Georges here was one of them.

Well, I'm here to see a property

that had a guide price of just £27,500.

That doesn't sound a lot, given its location and apparent size.

However, I am a bit suspicious.

Still, how bad can it be, eh?

Oh, dear.

Yeah, this is definitely looking like hard hat territory.

Right, well, for once,

this is actually much, much, MUCH worse than it looks on the outside!

Holy mackerel. What has gone on here?

We're basically left with a shell, a very dangerous shell.

I'm very glad I'm wearing this hat.

If you were to come and look at this property,

you would definitely have to be careful about your security

and your safety, because you just don't know what kind of condition

these floorboards are in.

I've taken some advice, and apparently it is OK to walk on.

But wow. This is like one of those sort of diagrams of a house,

cut away, so you can see exactly how it's all built.

Amazing! Let's go down from this floor,

down the staircase.

To what I guess was either a basement or the ground floor.

You can see all the stonework is revealed.

No damp proof, course, obviously.

I mean, no nothing, I mean, don't take anything for granted here.

This is a massive, massive, massive project.

Erm, can I see any positives?

It's going to all come down to the price.

If you get this at a good price, perhaps it's worth doing.

But the budget for doing it is going to be quite high.

# How high is high?

-# How low

-How low is low

-# Somebody tell me

-Somebody tell me

# Mm, yeah! #

Speaking of high, there is a top floor,

but if anything, it's worse than the lower floors.

I'm told that there was a former hairdresser's on the ground floor

and a flat above.

They were stripped out for renovations nearly 20 years ago

and it's stood like this since.

It's certainly going to need a full makeover now.

Right, OK, well... HE LAUGHS

I thought it couldn't get any worse. I'm afraid it does.

Unfortunately, I was just glancing up there,

and it looks to me like there's a bow in this rear wall.

So, you're going to have to really concentrate on that wall

and that's going to be expensive.

It could mean replacing the whole thing.

You don't know about the foundations.

Erm... HE SIGHS

You just have to assume you'll have to do everything, basically.

The good news is, though, again when it's finished,

a really nice-looking property and it benefits from this garden.

Now, it's very, very, very overgrown.

I can't even see the end there but it looks to me

like it's very extensive. It might even have some views.

So, in terms of where it is and what we've got once you've done it,

yeah, it's got a lot going for it.

But to get to that point, a few little hurdlettes.

-# Might as well jump

-Jump!

# Might as well jump

# Go ahead, jump! #

OK, not hurdlettes, more like stonking great high jumps.

Now, I do love brick as a material but in this case,

I think there are structural issues that need to be explored.

It's a mid-terrace, so access to the back with building materials

is going to be tricky, and of course,

even if it's saleable, then what?

Retail units downstairs and a flat above?

Could it be a house?

Given its previous mixed use,

that would mean a chat with planning, for sure.

To try and focus on the best solution,

we asked along a local estate agent to look at the property,

which was guided at £27,500.

I think the best use would be full residential.

Erm, maybe two flats made out of it or one single family home.

Personally, I probably wouldn't touch this.

I think it's quite a big challenge and I think the budget

could easily run away with you on this one.

So, the agent isn't too keen himself.

But let's look at the options he's mentioned

and what rentals could be expected once work is complete.

As a two-bedroom flat, I think we could ask £550 per calendar month.

As a three-bed house, I think we could ask somewhere in the order of

about £700 per calendar month.

And how about sales figures?

I think potentially if the property were a two-bedroom flat,

or two two-bedroom flats,

we could seek somewhere in the region of maybe £75,000, £80,000,

somewhere in that order.

As a single family home, I would suggest

probably something in the order of about £150,000.

It's definitely one that you need to see beforehand!

Who wasn't put off by the state of this property?

Who saw the potential?

Let's find out when it went under the hammer.

Well, it's a mid-terrace property,

it is in need of renovation and repair.

It's over three floors and it has an extensive rear garden.

Can I say 25 to start?

25 to start. 25, thank you, in the aisle, at £25,000.

I'm going once. Yeah?

26. 27.

28. 29.

Bid's in the room at 29,000. Looking for 30 now.

I'll take 500 if it helps.

At... You're back in. 29 and a half. 30.

Shaking your head. 30 with you, still in the aisle.

At 30,000. Another 500 anywhere else?

If not, I'm selling it, then, at 30.

£30,000 once, then.

£30,000 twice.

Third and final time. £30,000.

You've bought it. Well done.

-# Can't you see me?

-Can't you see me?

# I'm all yours... #

Now, we couldn't see the successful bidder,

who was just out of sight of our cameras.

Getting the lot for £30,000 was Dave,

who runs a property development company with his son Tim

and a team of two.

So, it's time to don the hard hats and find out about the plans.

-Dave, good to meet you.

-Hiya.

-I hope you're a man who likes a challenge.

Well, we've definitely got one here!

Tell me why you wanted to buy this house.

Well, house...shell.

We're in the property development game

-and it looked a good project to do.

-Right.

And probably most importantly, you got it at a good price.

-Yeah. 30,000, so...

-Right.

Have you, in your career, come across properties like this?

Not as bad as this one, no. We've challenged some...

We've tried, we've done a lot, but not this one.

So, first glance, having now bought it, what are your sort of...?

What's your gut feeling?

My gut feeling is it's going to have to have a new roof.

Obviously, new floors throughout.

Everything, rewire, replumb.

And, uh...

The first challenge is to get the planning permission in on it.

Because it's currently part commercial, part domestic.

-Right.

-So, we've got to get the planning permission.

And almost certainly, we're going to turn it into one property.

-Right.

-It's too tight to turn it into two.

Basic plan is to turn it into a three-bed single property.

If we can get permission to get an access off the highway,

we'd turn that one side over there into a parking bay.

-OK.

-So, we've got some off-street parking.

-Right.

-Which will help sell it when it's finished.

Right. OK.

And then, in terms of design, any ideas on that?

Yeah, I've designed out this basement area.

Where we're standing will be a garden room

with glass doors out the back there onto the garden.

Right. And then the next floor?

The next floor will be the car bay and a living room/study.

Right. And then, three bedrooms further up?

-Three bedrooms and a bathroom upstairs.

-Great.

Enough space for all of that? You've obviously measured it out.

-The footprint is quite high.

-Yes, it is, yeah.

If we get tight with space,

we'll put a three-metre single-storey extension on the back.

OK. What about the garden?

Because I have this feeling the garden could actually be...

It's a mess at the moment but it could actually be quite nice.

-You've got views out there.

-I think it's the main point of this property.

If we turn this here into a garden room with big glass doors there,

garden there, it's nearly 100 yards to the bottom of that garden.

Is it really? You've managed to discover the bottom?

I haven't got there yet. I measured it on a plan!

You did, so somewhere down there...

And it looks like you might have even open views

at the bottom as well, so great spot.

Is there anything that could be a major issue?

Obviously, planning is one. Let's assume you get the planning.

What would be your biggest nightmare?

I think the biggest nightmare is the walls when we take the roof off

because there is a bow in the rear wall.

We may have to take half the rear wall down.

-Right.

-And rebuild that.

If we have to, we have to.

If you're wondering why Dave is so sanguine, well,

it's because he's a qualified engineer.

So, rebuilding walls, tanking out basements and so on

hold no fears for him.

He's got a healthy-sounding £65,000 budget,

but what's more, he thinks he can complete it

in a five-month timescale.

Oh, and he has three other renovation projects

on the go just now.

To say Dave likes challenges is an understatement.

You, then, are you project managing this?

I'll project manage it, yeah.

Right, you don't actually get your fingers dirty?

-I do the labouring and the cleaning up.

-Do you?

Yeah, I've got a team of lads that do all the skilled work.

Right. Is it very much a one-man business,

as in terms of it's your business? No, I'm in partnership with my son.

-Oh, that's nice.

-He's out working on another property at the moment.

And does he approve of this purchase?

-He thought I'd gone mad but...

-Did he?

-What did he say?

-"What have you done this time?"

We've got over it now. We're all right now.

We know what we're doing.

Listen, congratulations.

A little bit of a challenge ahead

-but I look forward to seeing how you get on.

-OK, thanks very much.

Well, with a project like this,

it's all about buying the property at the right price

and I think Dave certainly did that.

30 grand, yeah, you might think he's a little bit crazy

but no, no, no, look at those numbers.

Lots of challenges ahead, though,

and hopefully a massive transformation

when we return later in the show.

-DION:

-Still to come in Smethwick, West Midlands,

some things work alfresco, but not everything.

Because who wants to go outside to go to the toilet?

Not me.

MARTIN: And in St Georges, Telford,

Dave is concentrating on the positives.

We've probably lost four, five months.

It's given us time to think it through properly.

MARTEL: We're returning now to Godalming, Surrey,

where there are some early examples of timber-framed construction.

And they said it wouldn't last.

But I was there earlier to recce a two-bed ground-floor flat,

one of four in this Victorian house conversion.

It had one lovely, sunny, characterful room

but after that, the layout seemed to reveal that this

two-bed flat had once been a one-bed flat.

The layout doesn't quite work.

You're walking into your sitting room,

you've got a pokey, wee kitchen

and behind that, you've got your shower room.

But what are the options to make it work?

Well, I guess you could revert back to being a spacious one-bedroom.

That would be nice,

but of course, it would bring down your property value and I'm guessing

that's why they upped it in the first place.

And that was pretty much the conclusion

buyers Diana and Raj came to when they bought it for £198,000.

Their plan was to see how the figures stood up after refurbishment

and then decide if it's for sale or rent.

So, you view this as the start of a potential business?

-Yeah.

-Yes, absolutely.

We've both given up work to do this.

The couple had worked for the last seven years abroad

and diplomat Diana took a career break to concentrate

on designing the flat and Raj felt he had the right skill set

for a hands-on approach.

I'm a qualified electrician,

so the only thing we'll get in professionals for is the gas work.

There were holes in the second bedroom ceiling and in the bathroom.

A beehive from between the joists

had become a case of honeycomb in the WC. Never pleasant.

But the couple thought they could flush

all their problems away in 12 weeks.

We're back just over 18 weeks later to see the results.

Here comes the list of re-s and it's a big one.

They've rewired, replumbed, replastered from back to brick,

re-floored with oak flooring, and finally, redecorated.

Re-markable!

It may be on the small side

but the bathroom can now live up to its name.

The tiny kitchen space is used much more effectively.

The second bedroom now doubles as an office but in the front bedroom,

it does look like the big radiator planned for this corner wall

didn't make the cut.

But there's no doubt this part of the old Victorian house

has had a final re-, a rebirth.

But were there any unforeseen problems?

Over to Diana.

We initially wanted to put a Victorian fireplace here

because we had one in our garage,

but we discovered that the upstairs flat have taken away their chimney,

so it would have been a nice feature but completely useless.

So, we got this instead, which I think looks really good.

Some excellent ideas. But who had the most design input?

Mainly me, although Raj did have a few ideas.

We tried nought.

But one of Raj's ideas did pass muster.

A vaulted-ceiling entrance hall.

I think it looks really good.

I'll agree.

There's an eclectic range of furniture dressing the property,

like this lazy butler,

which the couple bought in their time in Egypt.

Something that was a little too antique

was Raj's qualifications as a sparky.

They had to enlist help on the rewiring front.

We got a great plasterer and he's a local chap,

and we had his son who came in and helped out with the signing off

on the electrical work.

Although I'm a qualified electrician,

I needed to be up to current regulations,

so he was able to do that and we were very, very lucky

with those two particular chaps.

So, Raj did the bulk of the work but it was checked and connected

by an up-to-date electrician.

So, to sum up...

We've made sure there's an eating area.

We've made sure there's a separate kitchen

rather than a kitchen in the living room.

I think in fairness, Diana's playing it down a little bit.

She is pretty good at what she does. So, don't talk yourself down.

Well said, Raj.

I think that Diana's career break from diplomacy

has revealed a very creative design guru.

So, how did they adapt to their prospective new roles?

This was just basically another step to use the experiences

that we've both got to look after budgets

and look after big operations.

And this becomes a little bit more serious because it's your own money.

But I think to make it a realistic budget,

so that we've got a template for our next one,

um...

we've absolutely included every single piece of expenditure

and we came in at 16,000. So, not too worried about that.

Raj has only gone one grand over his £15,000 budget,

so there can't be anything to worry about, can there?

To find out, we called in two local estate agents

to assess Diana's ideas and Raj's implementation

and to get some values to their finished debut project.

Is the agent who saw it before impressed by the changes?

Huge changes to the property, it's an incredible difference.

Very well executed.

Perfectly done.

And to a very, very high standard.

They've maximised it as well as they can.

I love the idea that it's got a separate kitchen.

And the fact that everything is off the sitting room

I think is really quite handy and people will like that.

The flat was bought for £198,000 and they spent 16,000 renovating it.

That's £214,000.

However, the couple have totalled up their spend

and taking account of all fees and charges

at both ends of the purchase and sale,

their break even figure is 236, not including tax.

So, will they achieve that or more on their first-time project?

Here's hoping!

I would anticipate the resale value for this

to be in the region of about £290,000.

The resale value on this property, I would, as an estimate, of £295,000.

That's a pre-tax profit of £59,000 on that top valuation.

But these two are already on it.

The property's currently on the market

and we've got our first two viewings this afternoon.

Blimey! How much for?

It's on the market for 280,000.

So, with that potential profit, I'm guessing the rental yield

of about 5.5% would be of little interest

and they're already progressing on their next project in Wimbledon.

So, what's been the recipe for a first successful project?

A bit of luck. And also making sure you've got enough pencils

and tape measures, really.

Because I think you can never have too many of those.

Off to the West Midlands now and Smethwick.

There are good links with the M5 and the M6 and Rolfe Street station is

about 15 minutes away, which can whizz you to Walsall, Wolverhampton,

or even Birmingham.

The house I'm here to see is a little bit different.

But more of that later.

Let's get the usual stuff out the way.

It's a two-bed end-terrace house with a guide price of

£50,000-£60,000.

Nothing unusual there.

So, here's the strange bit.

You have to go all the way down this passageway to get to the house,

which isn't ideal.

Let's hope the house is worth the journey.

It may not be a journey exactly, I exaggerate,

but it's a long way to carry your shopping.

Right, so we're in straight into the front reception room.

Nice high ceiling, by the way, with a bit of detail.

You've got an old-fashioned gas fire there,

which looks pretty wrecked to me,

and you've got a radiator on this wall as well.

It needs tidying up.

It needs decorating.

Let's explore a bit further.

OK, you've got a bit of storage under the stairs right there,

and then you come up a level into the kitchen, which,

right, is not in great condition.

We need a new floor, we need a new boiler,

we need to get that crack sorted and this damp.

So you're more or less starting from scratch, here.

If you were to take everything out of here, you could create a nice

kitchen/diner. You could have an L-shaped kitchen,

so you'd keep what you've got, across the back wall,

and you could come down here and create a bit of a breakfast bar so

you could have some stools on this side, sit down, have your breakfast,

two or three of you.

You've got somewhere to pass and go upstairs and

somewhere to pass to go outside.

Just a couple of options.

But any changes must be an improvement.

# I've really got to use

# My imagination

# Got to use my imagination

-# To think of good reasons

-Got to use my imagination

# To keep on keepin' on... #

This is the front bedroom, the biggest of the two,

facing the front of the house, and it's not a bad size at all.

You come down a step so the ceilings feel quite high.

On the other side, we've got the second bedroom

and the family bathroom just here.

No shower in here but you've got a nice-sized bath.

It's a nice-size room, actually.

It does need to be decorated,

probably put a new suite in there as well.

The second bedroom is a lot smaller from bedroom one,

which is at the front of the house, but it wasn't always this size.

Because that is a false wall, so this whole area would've been a bedroom.

What they've done is they've brought the bathroom inside and

upstairs, which I think is the right thing to do,

because who wants to go outside to go to the toilet?

Not me.

Speaking of outside, a look at the back of the property reveals that

maintenance hasn't been at the top of the priority list here.

Which can sometimes spell trouble, because

we have got some severe cracks.

Now, it could just be the render,

or there could be a subsidence issue.

Or it could even be a collapsed drain.

Whatever it is, there's a problem here.

I'd get the professionals in and get it checked out ASAP.

Especially as the cracks above the door lintel match the ones on the inside.

Still, let's look on the bright side and get the opinions of a local

estate agent and some all-important valuations of this lot guided at

£55-60,000.

The main drawback of the property is that it's at the end of

a walkway, off the road, which doesn't allow for any parking.

Parking here is a bit of a premium as the main high street

with shops is at the end of the road and obviously people park here

to go shopping, etc.

Convenient for shops, though.

What sort of rental figure would the agent recommend?

If the property is all done out, all tickety-boo,

nothing wrong with it, then I would envisage a rental in the region of

£500-525 per calendar month.

And bearing in mind that guide price of £55,000-60,000,

what could it sell for?

I would imagine it would achieve in the region of £85,000.

It might make £90,000, depending upon what they've done to it.

So this isn't your standard terrace as it's off the main road.

Has got a couple of issues, though -

get that damp checked out and these cracks out here.

Let's find out who wanted to crack on with it,

when it went under the hammer.

The property featured in one of the last lots of the day.

So who will bid me for this nice two-bedroomed end terrace property

in a good location with vacant possession?

Start me, if you will.

Shall we try 50?

50. Thank you, gentlemen.

At £50,000, I'm bid.

Do I have 60?

55?

55 - and thank you.

At 55, I'm bid?

56. 56. Same chance for you sir, is it 57?

57. I've got someone before you who's at 57. Do you want 58?

58, 59, 60, 61.

62. 62 and a half.

63. 63 and a half.

You sure? No?

£63,000 on sale.

63 and a half.

64.

64 and a half. 65.

65 and a half.

No. I'm on sale to you at £65,000. Are we all done?

One, two, three, congratulations, worth the wait, sir.

That is now yours and the best of luck with it. Well done.

The top bid came from Michael.

He's an occupational therapist living and working in London.

He made the trip to the West Midlands due to the property prices

being cheaper.

He has little renovation experience having only mucked in with kitchen

and window fitters at his London home.

We met him at his 65 grand purchase to find out his plans.

-Nice to meet you, sir.

-Nice to meet you.

And well done, congratulations.

-Cheers.

-That's not a European accent, where are you from?

-No, from Australia.

-OK. Whereabouts?

Perth, south-west Australia, so, on the coast.

So why, what brings you to our shores?

-Just to travel, basically.

-OK.

And also working here and there's a lot of opportunities in property,

-I think.

-Tell us about this place and what made you buy this place?

Terraced house, freehold, it's close to town, or relatively.

So, I think it's got a lot going for it.

Did you see it beforehand?

No.

OK, OK.

I'll let that one go for now.

Did you read the legal pack?

-I read the legal pack.

-That's OK, but you didn't view the property?

-I didn't view it, no.

-OK.

When did you get in the property for the first time?

-Today.

-Really?

-Yeah.

Got the train in this morning. I just got back from Morocco.

Globetrotter Michael was surfing instead of viewing.

That's an Aussie for you.

Now he's seen the property, what does he think?

I like it, but as soon as I walked in, I saw the kitchen and, yeah,

I was thinking it may have been a bit better

just from what I've read, but it's only cosmetic, I think.

He has, I think, been lucky here.

It does look cosmetic but you know what I'm going to say,

like I always do, view the property.

Pretty please, view the property.

How many times do I have to tell you?

TAKES A BREATH

And breathe, Dion.

Now that Michael has got the property,

what is he going to do with it?

Just renovate it and look at renting it out, I think,

and see how that goes.

What kind of renovation are we looking here?

Top, middle or bottom?

-Middle.

-Middle?

-I think...

I think to rent out, make it look good and then

if I want to sell, I can.

It leaves your options open, doesn't it?

Yeah, exactly, and I want to end up getting another one as well.

Michael aims to get tenants in here as quickly as possible.

He set himself a timescale of four to six weeks,

so what's he going to do during that time?

I'll probably fix up some of the damp in the kitchen and also

just take off the wallpaper and paint and just make it look good.

-Make it good?

-Yeah, exactly.

-A couple of things I've seen.

The main one, really. I've seen a few cracks on the outside.

I've been out the back, I've seen a few cracks as well.

Does it worry you?

Yeah, hopefully it's nothing serious, but I don't think it is.

Fingers crossed for you, it may just be the render.

I think the other properties are quite similar next door.

A nice little project to get on with, isn't it?

Yeah, definitely, it's different to Australia as well,

like a different layout of the property,

the heating, obviously, we don't need heating, we've got air-con,

so, yeah, it's very different.

That's just showing off now, isn't it?

We don't need heating, it's hot all the time.

That is fantastic.

# He said

# I come from a land down under

# Where beer does flow and men chunder... #

I am a bit jealous. No heating?

On second thoughts, I'm not jealous

because he's got to do a lot of graft here.

And with the five grand budget, he'll be doing a lot of the work

himself, but will he be getting any help?

-Footy mates.

-Footy mates!

Please leave the footy mates on the footy pitch.

That's it.

-Or in the pub.

-You can come back and do the work.

-Yeah.

But I think maybe the locals around here, probably.

Probably get a few in and help us out.

Five grand on your budget and how long is it going to take to turn it around?

My time is four to six weeks.

-OK.

-So I'm basically... The plan is working in London, obviously,

come over in the weekends, smash it out and see how it goes.

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

-Hope it all works out for you.

-Cheers.

-Good luck to you.

-Take it easy.

-Good luck, Michael.

-Cheers.

So Michael is living dangerously.

He only got to see the inside of this place two hours ago.

He's after a quick refurb, get the tenants in and get this place

making him some money as soon as possible.

How can I put this?

Will he be a winner or will he be a runner-up?

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

So earlier, we saw the result of one property,

but what about the other two?

Have things gone smoothly or have there been some bumps on the road?

Let's go back and find out.

Time to go back to Shropshire now and the Telford suburb

of St Georges were I saw a three-storey property with an

incredibly low guide price of £27,500.

Actually, the guide price wasn't so incredible once you saw the property.

Oh, dear!

Yeah. This is definitely looking like hard hat territory.

# Another hard hat day is coming on strong... #

Hard hat firmly in place, I had a careful look around

a property that made Roman ruins look like a simple fixer-upper.

You can see all the stonework is revealed.

No damp proof course, obviously.

Nothing, don't take anything for granted here,

this is a massive, massive, massive project.

Erm... Can I see any positives?

It's going to all come down to the price.

If you get this at a good price, perhaps it's worth doing.

But the budget for doing it, it's going to be quite high.

# What in the world happened to you? #

This was no job for the faint-hearted.

It would require some real vision, not least at the back,

where it was more jungle than garden.

Step up local property developer and qualified engineer Dave who, in

partnership with his son, Tim, bought this for £30,000.

This was their fourth project together and he certainly wasn't

shying away from the job at hand.

It's going to have to have a new roof, obviously new floors

throughout, everything rewired, re-plumbed and almost certainly

we're going to turn it into one property.

It's too tight to turn into two.

Plans for a three-bed house rested on lots of ifs, buts and maybes.

Maybe the planning department would permit this old hairdresser's to be

converted into a house.

But car parking was an issue.

Maybe he could resolve that by getting access off the road,

if he could get planning permission.

But the big bulge in the back wall would mean a rebuild - if access was

possible in this mid-terrace.

All in all, a real toughie.

Well, six months later, we've returned.

And, oh, well, I'm sure inside is lovely...

Perhaps.

SCREAM

Oh, dear. I'm afraid it's still a house of horrors.

-David?

-Since you last came,

we looked at the different options for the property,

talked to the local planners,

we put an application in with a vehicular access on it.

Unfortunately, after they considered it different ways,

they decided that they weren't happy about that, so we had to withdraw

that application and resubmit an application along

our original ideas which was to restore it as it is and put an

extension on the back.

It probably took me four or five weeks to get the drawings sorted

out, get my head around what we wanted to do.

We then submitted the application, which took six,

probably seven weeks before we got a response back.

That said they weren't happy, so we had to withdraw it

and resubmit it. So, yeah, all along,

we've probably lost four or five months.

But it's given us time to think it through properly.

Well, it's nice to see that David is still smiling.

He used the time waiting for the planning office wisely.

He's overseen the clearing of the back garden,

which looks even bigger than I first thought.

That is a nice little bonus and he's taken advantage with the substantial

extension planned for the rear.

But let's hear David explain exactly what his plan is for the property.

On the lower ground floor, in the extension, we've got a kitchen and a

living area which runs through into the back area at the bottom.

The staircase up and the utility behind the kitchen...

..with a WC in there.

On the ground floor, we've got a bedroom with an en suite,

a hallway with the two staircases, and a living room-study.

And on the top floor, two bedrooms, a bathroom and a landing.

So, across the three floors, this will be a three-bedroomed house.

There will be two living areas and WCs on each floor

along with a bathroom on the top floor.

Sounds like a real cracker to me, but there is a long way to go yet.

Once we purchased the property, we got a structural engineer involved

and he's come out and had a look at it and advised us that the roof

needs to come off because the two big purlins are cracked

and not in good condition.

And this rear wall has got a big bulge in it,

so that's got to be taken down to ground level.

So just added a little bit of work,

but we've got to knock a hole in the back of this wall anyway

to put through to the extension.

And the gable end on that right-hand side needs rebuilding at the top level.

So... Just probably put £5,000 on the budget.

Well, the structural reports and the clearing of the garden done,

David has spent £2,000 and has increased his initial budget to

70-£75,000, with a timescale of five months to turn this into a three-bed

family home ready for the sales market.

David is also working on site so he is, quite rightly,

wearing his hard hat.

We made sure that we chatted to two local estate agents away from any

potential risks in a non-hard hat area.

So let's see what they thought of the site and David's plans so far.

I've had a good look at David's plans.

He's going to offer quite a nice size property with the extension

he's going to put on.

A little bit of extra space here, there and everywhere.

So, yeah, a nice design.

I'm sure that it will suit some family's needs.

It's a big project.

I can see it's got lots of scope for potential, but it's a big...

it's a big job.

It certainly is. But David is raring to go.

So, with both agents having studied his plans extensively,

what kind of value would they place on the completed property?

It's difficult to give a resale value for this property,

having seen it in such shell condition.

It would be my view that for a property in the area like this,

you'd be looking at perhaps marketing it somewhere

in the region of 125,000.

Once the property is completed,

I would expect the resale value to be between 135 and 145,000.

They're reasonable. They are whereabouts we thought.

We'd like the resale value at the top end but, you know,

we'll go with that.

Assuming they can do the work for that projected 75,000,

that would bring their spend to 105,000.

So that top resale figure of 145,000 would mean a profit of around £40,000.

And given the hard work involved,

hopefully he can even get a bit more than that.

David's tenacity, calm determination and positivity make me want to doff

my hard hat to him. Good on you, David.

Sense of relief that we've got where we are and we've

got the permissions, so now we can do what we want to do with it now.

There's always the unknown to get from no planning permission to a

permission and move on.

Time to take the long and winding road back to Smethwick in the

West Midlands, where I visited this two bed mid-terrace

guided at 55-60 grand that had an unusual entrance.

So, here's the strange bit.

You have to go all the way down this passageway to get to the house,

which isn't ideal.

Let's hope the house is worth the journey.

OK, it wasn't that long but you would have to walk,

as there was no access for a car.

The living room had some things going for it.

High ceilings and central heating are always welcome.

As was the upstairs bathroom, which had been brought up from outside.

Despite some space being pinched from the top toilet,

there were still two good-sized bedrooms.

So far, so good.

But the kitchen layout and the possibilities were where my

imagination went into overdrive.

You could have an L-shaped kitchen, so you'd keep what you've got,

across the back wall and you could come down here and create a bit of a

breakfast bar, so you could have some stools on this side.

Sit down, have your breakfast, two or three of you.

You've got somewhere to pass and go upstairs.

And you've got somewhere to pass to go outside.

Five and a half? No.

Michael, who hails from Australia,

was untroubled by the kitchen layout,

before parting with 65 grand at auction.

But this wasn't because of the famous laid-back, no worries Aussie

attitude, it was mainly for one other reason.

Did you see it beforehand or...?

No.

-OK, OK.

-Yeah.

-OK, I'll let that one go for now.

-Did you read the legal pack?

-I read the legal pack.

-OK, that's OK.

But you didn't view the property.

-I didn't view it.

-OK.

-No.

-When did you actually get in the property for the first time?

-Today.

-Really?

-Mm.

It didn't seem to faze him, as he planned to get it ready for the

rental market in a super-speedy four to six weeks.

He was going to keep an eye on that five grand budget by doing a

lot of the work himself,

with a little help from his Aussie rules football pals.

So, when we returned 16 weeks later, had he kept his eye on the ball?

The kitchen is now bright and airy with all the mod cons.

The tatty old units have been replaced with modern cabinets.

The tiled floor is looking so much better and everything has been

freshened up with a coat of paint.

The lounge has had the same treatment.

The old gas fire has been removed,

making the whole space more open and contemporary.

Moving upstairs, the bathroom has been updated.

The floor and the walls have been tiled and the bathroom cabinet

creates some handy storage space.

The master bedroom has been replastered and fresh magnolia

walls make the room a lot brighter.

A disused boiler has been removed from the smaller bedroom by a gas

engineer but apart from that,

Michael seems to have done most of the work himself.

Basically, I have to commute up each weekend, so coming down Friday,

Friday night and then working through until Sunday night.

So yeah, usually, 12-plus hours a day, I guess.

Just ploughing through it, really.

A gas engineer also replaced an old boiler in the kitchen and Michael

got a tradesman in to fix new fence panels in the garden.

There was some help from colleagues and not forgetting the Aussie rules

football pals.

When you get some mates over,

it's harder to actually get the work done.

So yeah, we went out for dinner and then had a couple of beers

and end up being a bit late on.

Not much work got done the next day, I guess.

But, yeah, the next weekend, pretty much knuckled down.

With the pub getting in the way and working Monday to Friday,

it's no wonder he didn't hit his four to six week timescale.

It took about 16 weeks or so.

But I guess if you condense it and put it in that I was working every day,

it's probably around four to six weeks.

I like that reasoning and I like the fact that by doing most of the work

himself, Michael was able to keep more or less within that five grand

budget, spending a total of £5,500.

So, he's done a good job, which reminds me,

what happened to those cracks in the rear of the property?

The interior, basically patched that up,

just with some filler and then painted.

Also took out a bit of the concrete on the back wall, so we carted that

all out and now basically we just need to replaster that.

But because of the weather, the typical English weather, I guess,

yeah, we can't.

When the weather improves, Michael will get a professional opinion,

then start the repairs.

But in the meantime,

can he make hay while the sun shines

and make a profit on his £70,500 investment?

We asked along two local estate agents to tell us what they

thought of Michael's handiwork.

There is demand for a property like this in the area

due to the local development.

There's a new hospital being built down the road and

there's also a lot of new housing developments being built also.

There is one major negative to this property and that is the fact that

you can't get a car anywhere near it.

It's on-road parking on what is a very busy road,

close to a main shopping area and parking is really an issue.

It's a pity you couldn't get a car to it and I think that will put an

awful lot of buyers off it.

That could well be.

However, the agent still valued the house at between 85 and 100 grand.

That's a possible profit of 29,500, minus taxes and fees,

which is pretty good.

But it's the rental market that Michael is interested in.

The rental value on this property would be in the region of £550 per

-calendar month.

-The rental per calendar month for a property like

this would be between £600 and £650 per calendar month.

Yeah, I'd say that's probably around the ballpark, to be honest.

600, 650. Yeah. Pretty happy with that.

That could mean a yield of 11.6%.

A result like that surely means he's got a future in property,

so what's next for Michael?

Take a break, I think, a little bit.

Reassess, see what I want to do.

And then, yeah, potentially get my eyes on something else.

But, yeah, for now, book a trip to Australia, I think.

So, that's all of today's action wrapped up but don't worry,

there's plenty more where that came from.

Yes, we'll be back soon with more bungalows and basement flats.

Join us, then, for more Homes Under The Hammer.

-Goodbye.

-Goodbye.

-Bye.