Episode 17 Homes Under the Hammer

Hello and welcome to the show. The property market is ever-changing.

Sometimes it's difficult to keep track of what's going on.

Yeah, that's right, and I think here on Homes Under The Hammer,

we have to get through so much, so I think it's a good time to bring

in a new body to the team in the shape of our brand-new member,

Martel Maxwell.

-Hello.

-Hello, Martel, are you ready for some auction action?

Oh, I can't wait to get stuck in.

Property is a real passion of mine, from building my own home,

to owning commercial property and I can't wait to find out what's been

bought under the hammer.

Well, when it comes to investing in property,

auctions are a pretty good place to start.

There are often bargains to be had.

Yeah, you need to do your research, leave no stone unturned,

as there's bargains out there if you know what you're looking for.

So, let's find out if today's buyers did bag a bargain or did they bite

off more than they could chew?

First up, Margate, Kent, and it's a good thing I work out.

No lift.

Top floor. That's the bad news.

And in Nottinghamshire, man's best friend is making his presence known.

The theme continues. There's a waft of dog.

Whilst in Longbridge, a good team always know their strengths.

-You've got the brains...

-Yeah.

-..and you've got the brawn.

Yeah, definitely.

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.

Good bidding, you got it, well done!

Oh, it's a lovely day to be by the seaside and it doesn't get much

better than Margate in Kent.

Well, Margate has been a popular holiday destination for over 250 years.

In recent times, it has had its ups and downs.

However, I've got a feeling that we're currently entering a period

where it's definitely on the up.

That might be a small clue as to the type of property I'm here to view,

but as well as that, Margate has undergone a considerable amount of

investment in the last few years.

Not only is there the Turner contemporary art gallery

but also Margate's famous amusement park has recently reopened its doors.

Well, situated literally right on the seafront

is the property I'm here to see. It is a top floor flat.

Has a guide price of 85 to £88,000.

One bedroom. Top floor, that's the good news,

it's going to have some nice views perhaps.

No lift...

..top floor, that's the bad news.

OK, up four floors could deter potential buyers

and I'm not exactly overly enamoured myself.

# Let's get physical, physical

# I want to get physical

# Let's get into physical

# Let me hear your body talk, body talk

# Let me hear your body talk. #

HE SIGHS

Right, well, joking aside, that definitely cuts out anyone

with mobility issues from owning this flat.

Four flights of stairs, no lift and more than that, though,

it's not really getting yourself up here,

it's getting the building materials up here and anything you need to do,

any bits of 8x4 ply or plasterboard or bathroom fittings

or kitchen units, they're all going to have to be lugged up those stairs.

That's a serious issue and some builder is going to add a few

noughts onto their bill or estimate for doing this place as a result,

so lots of negatives to start with.

Rewind to let's have a look at the flat.

Ooh, wow, this is quite nice.

Nice space.

Wow. Big living area here and then the bathroom.

Yes, you are going to need a bath and a shower and a loo,

all those are going to have to be brought up those stairs, but again,

a good size.

So, apart from the obvious, that it's a devil of a job to get here,

once you get here, I'm a-liking what I'm a-seeing.

Yes, it could do with a lick of paint and new carpets but this is a

very spacious flat for a one bedroom property.

It could be ideal for first-time buyers and young couples.

So, turn left as you come through the front door and you get this,

a kitchen which is definitely tired and dated and certainly needs to be

replaced, but it's not a bad size.

But then this is the bedroom.

Now, why am I saying that in a kind of negative kind of way?

Well, I'm not.

Only because I can see what you can't yet, which is that.

Wow, what an amazing view of the beach at Margate

and the Winter Gardens and everything.

A just stunning, stunning, stunning view that really sets this flat apart.

However, currently it's only viewed while you're doing the washing up or

whatever else in the kitchen or sleeping in the bedroom,

so it's not ideal.

How about this for being a bit radical?

Take out this wall. Take this wall out to create a massive great

living/kitchen area, make the bit at the back there your bedroom.

The only issue with that is you then have to access the loo for the

bedroom so maybe a bit of a stud partition to create a little

corridor so you can access the loo without going into the bedroom.

Then, suddenly, you've got this room here.

Why not put a massive great window in the end,

increase the size of the window, make the whole of that front of that

wall glass so you get this amazing view across the seafront?

Before you do all of that, you probably have to get the approval

of lots of people including the planners and the person who owns the building.

They'll probably say no. Still, you can dream, eh?

# Dreams can come true

# Look at me babe I'm with you

# You know you gotta have hope

# You know you gotta be strong. #

OK, I might be getting a little overexcited but views like that

inspire ambition and this flat is crying out to be reconfigured

in one way or another.

Let's hear what a local estate agent thinks of this property that

had a guide price of 85 to £88,000.

I think it's got a lot of potential.

I think the flat could be of a very high standard.

I would try and change the layout to make sure that the sea views were

from the reception room and possibly the bathroom,

so switch the kitchen with the toilet and have it that way round.

We're agreed then. Those sea views need to be capitalised on.

However, it will depend on permissions from the freeholder,

the property management, if there is one,

and, of course, it needs to meet building relations.

Relocating plumbing and electrics can be complex and expensive.

Would it be worth a major investment?

For instance, what sort of sales figures could it achieve once renovated?

The value I'd put on this flat when it's finished

would be around 120 to £130,000.

Unless you got it close to the guide price,

major reconfiguring could really make these numbers quite tight.

What about a long-term view in this up and coming area?

What could it rent for?

I believe the rental we could achieve in this property would be

-£500 per calendar month.

-And what about as a holiday let?

What could that bring in?

For a holiday let in peak season,

you'd be looking at roughly 300 to £400 per week.

Well, I think if you take everything into consideration,

the guide price of the flat, the location,

what's happening in Margate in general,

I think this is a really good opportunity and more than that,

I really like it as a flat.

Especially that view.

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

Where do you want to start me on this? 85 to 88 is the guide price.

Start me at £85,000. Straight in at £85,000, I've got you.

85, now 88. 80...

I think that's six, isn't it?

That's 86. 88 against you. 88, I've got.

Now 90. A bit of a shake of the head that one, I think.

At 88 then I have to the maiden bidder sitting behind.

Otherwise we're going to sell it for £88,000 for the first time,

second time, sure you're all done? 88...

Just in time, that's 90.

At 92, if you like.

92, he says, "Yes."

For the first time then at 92, thanks for your bidding.

For the second time at 92.

Third and final time, everyone's had a fair chance.

It's yours at £92,000.

Well done.

After a little battle, the property was bought for £92,000

by Tony and his 20-year-old son, Calum.

Tony already has a few properties rented out both here and abroad

but his latest acquisition is more of a family affair.

-Tony, Calum, great to meet you both.

-Nice to meet you.

-Congratulations!

-Thank you.

-That is a fun flat, actually, isn't it?

Yeah, it is, it's got lots of dynamics that we liked and lucky

enough, we went to the auction and we were successful.

Right, so why did you buy it?

The views. The views sold the flat to us and the location.

Ultimately, it's for Calum, first foot on the ladder.

-Oh, is it?

-On the property market.

So this is going to be your house?

Or we'll rent it out.

-OK.

-Yeah.

It's always exciting when young people take their first steps on

the property ladder. The reason they're not certain is the fact that

the family live an hour away in Sidcup.

Calum works partly with his dad but also in a restaurant,

so they've got to take time to work out what to do with this purchase.

So, what did you think about it the first time you saw it, Calum?

I thought it was really nice. The view was fantastic.

You walk in and see the view in the front room, it was really nice.

-It definitely needed some work to it but I think we can sort something out.

-Yeah.

One of the big things, of course, is the fact that you have to walk up the stairs.

To do any building work, you're going to have to be bringing stuff up.

Kitchen units and bathroom units and sand and cement and plaster.

Yeah, it's going to be a tough job for the team that get this,

but they will be well aware when they come and view it

and we will point it out, the difficulties.

And fitter by the time they finish than when they start!

Definitely, definitely.

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

Calum, you've got some ideas already?

I want to make this into a bedroom, the room we're in now.

-OK.

-Then make where the view is, make that into a front room,

maybe knock the wall down, make the kitchen a little bit bigger.

-OK.

-Yeah, so, hopefully we can do that.

Now, knocking walls down,

can you just do that or do you have to get approval?

No, we would get a structural engineer involved,

make sure we can do it and then we'd speak to the leaseholders...

-Right.

-..and the management agents,

just to make sure they're happy with everything we intend to do.

Yeah. I mean I just love the idea of sticking windows absolutely

everywhere. Windows on the walls,

as many windows as you could possibly have.

That would be great.

Yeah, and with the views, it would be spectacular but I think under the

jurisdiction, we would not be allowed to do any of that.

Not allowed to do it.

# I fought the law and the law won

# I fought the law and the law won. #

I said it was a wacky idea and that's precisely why planning

departments have to be consulted,

to save our buildings from our wild imaginings.

This is still going to be an amazing flat for Calum and Tony thinks a

15 to £20,000 budget and a time scale of up to six months

should be plenty to get the flat into shape.

So, what do you do when you're not doing this?

I've actually got my own building company.

-Oh, great.

-It's a building company that specialises in working around

-the lift industry.

-The lift industry?

Yes, it is.

So, you install lifts?

We do the building work for companies that install lifts.

-Right.

-So, they put the lifts in.

Could this not be number one job?

We would definitely look into the prospect of doing that.

Well, listen, congratulations to both of you.

-Thank you.

-Good luck.

-Thank you.

-I'll look forward to seeing how you get on.

-Thank you.

When we come back, there might even be a lift in here!

Oh, boy, you couldn't make that kind of stuff up, could you?

Calum and his dad heading up this top floor flat in a block of flats

that hasn't got a lift when they run a company that installs the

infrastructure to put lifts in.

Maybe it's a marriage made in heaven, who knows?

Certainly, it's a really good flat.

How will they get on sorting it out?

Will they get those extra size windows?

You can find out later in the show.

I'm close to the Nottinghamshire/Derbyshire border,

four miles, in fact, from Bolsover.

There's been a castle on this site since the 12th century.

The property I'm here to see is in the picturesque village of

Whaley Thorns, thorn being the Anglo Saxon for wood.

But enough with the history lesson and if you want to get your

bearings, it's just north of Langwith and west of Cuckney.

Of course, we'll all have heard the famous Cuckney rhyming slang before.

Apples and pears and all that!

OK, maybe not.

I've got to be honest with you.

I love a cul-de-sac.

There's no through traffic so it's a really safe place for kids to play

and they're just often seems to be a great sense of community.

This is the house I'm here to see,

a two-bedroom bungalow with a guide price of £50,000 plus.

So, let's see what you get for your money.

-# Dead end street

-Yeah

-# Dead end street

-Yeah.

-#

OK.

Decent size. Good height, width.

It doesn't seem pokey at all.

Coming through to the...

Oh, here we go, a definite whiff of dogs coming in.

The person who owned this, I'm guessing, was a definite dog lover.

A really good proportioned front room.

And you know, it seems pretty solid.

No immediate cracks or smell of damp, just dogs.

You have a good sized window and actually, another window at the back,

so the light's flooding in.

It feels nice. Fireplace, well,

it's well used and a few decades old,

but you know what? These are all the rage.

Maybe the saying's true, if you wait long enough,

things come back into fashion.

It's got a good feel to it. Onwards.

OK, kitchen.

The theme continues, there's a waft of dog.

This is an original kitchen.

You can tell they've tried to up-cycle it a bit but really,

it's time to give up the ghost.

Get rid of it and get a brand-new kitchen, definitely.

The doors look like, well, they need renewed.

They look like they could be a lot more secure.

This is generously proportioned but hold on, this looks like...

Yes, it is, it's a stud wall,

which means it would be pretty easy to take down,

and you could make this into a great open plan living.

I'm a huge fan of that.

Not to everyone's taste.

I love it but it definitely gives the buyer another option.

Out back and probably connected with that dog smell,

the rear lawn is almost gone.

The woodwork, too, has seen better days but the structure looks sound

and there's a driveway so you could park off-road.

Now, back inside.

At the back of the house, you have a pretty small but well proportioned

bedroom that needs a good lick of paint and modernisation,

but looking around, there's nothing jumping out at me that says structural damage.

It all seems pretty cosmetic.

Here, OK, the bathroom has been designed for a disabled person in mind.

There's no bath, there's a walk-in shower. It's dated.

Going through to a bigger bedroom, the main bedroom.

I like this. Plenty of light coming in and here,

a wee bit of extra room for your cupboard space.

Yes, it needs cosmetic work done but it wouldn't need much to make it

feel fresh and really stamp your mark on it.

I've got a good feeling about this place.

Well, as they say in media circles, darling, it's time for an upsumm.

That's a recap to you and me.

There's a decent sized lounge which might be able to be made even bigger

by knocking through to the kitchen.

The small back bedroom is slightly bigger than a boxroom.

The master bedroom needs the radiator checking and the wallpaper

removed, but there's one feature I haven't shown you yet,

the like of which I have never seen before.

Look away if you're faint of heart.

How many times have you been sat on the toilet,

you've run out of loo roll and think, what am I going to do?

Here lies the answer.

Excuse me, loo roll!

Sorted!

Sorry, the director made me do it, but it does beg the question, doesn't it?

Here to answer some questions, although probably not that one,

is the local estate agent we've invited along for his opinion.

I haven't noticed any structural problems with the property.

It does require UPVC double glazing ideally and gas central heating,

assuming that gas is available in this part of the village and

ideally, the kitchen and shower room need refitting.

It's clear there's work needed here,

but it is reflected in the £50,000 plus guide price.

What could this achieve on the rental market once done up?

Once the works are completed, I could see this property then

achieving £450 per calendar month.

And on the sales market?

Once the works have been completed on the property,

I can see it achieving £65,000 on the open market.

This is a good, solid house.

Yes, it needs a lot of work done but really, it's all cosmetic

and it could be a great money-maker for someone who gets

it at the right price.

Let's head to auction to find out who bagged it.

We'll start it at...

Let's start it at 40,000 for it.

40? 40, I've got. At £40,000. 41 for it?

Sitting at 41, 42, 43.

Four? 45 behind.

46. 47, 48, 49.

Another one for it, 50.

New money. 51.

No? Sitting, new money then at £50,000.

50,500, I'll take.

51 for it?

Against you at 51. 51,500, gentlemen?

52? 52,500?

500 more for it.

At 52,500. 53.

No? 52,500 on the bar, out behind you.

Two of you out, sitting now at £52,500.

First time, second time, third and last chance for you all at 52,500.

It's yours, gentlemen.

The successful bidder was Phil at the auction with his nephew, Kev.

The £52,500 bid is not the first time Phil has spent money on this cul-de-sac.

He already owns two other properties here.

For a day job, Phil runs his building and conservation company.

Phil, Kev, congratulations.

-Thank you.

-Thank you.

What are your plans for this bungalow?

It'll be complete modernisation so starting from the top,

we'll have new insulation, new kitchen, new bathroom,

floor coverings, electrical testing,

removing the old solid fuel heating system and replacing it with a new

modern gas boiler, and then to let the property.

You sound like you know what you're talking about.

Talk me through your experience.

We've done a few houses in the past, so we've built some houses and we're

building contractors so we know what to expect when we're looking at things.

Phil's experience means that this is a relative walk in the park

for him but he clearly sets off with an informed idea of what's ahead.

There's still the building control and bits and pieces with properties.

With this style of property, it's almost pretty straightforward

because I like to make sure the structure of the property

is sound and solid, which is what it is.

There's very little work to do on the externals.

New windows. We'll upgrade the windows to PVC windows so we're

looking at long-term rather than just a quick fix.

I've got to ask, are you planning on keeping the special feature,

-the hole in the bathroom door?

-The hole in the door?

We have no idea why there is a hole in the bathroom door,

the size of a football.

We've no idea. The doors are coming off and going in the skip and

having new ones on.

We won't be leaving any holes in any doors in bathrooms.

Well, I'm glad that inexplicable porthole in the loo

is getting the bum's rush.

Hey, are we allowed to say that?

Anyway, when you hear about the sort of properties Phil and his nephew,

Kev, usually tackle,

you're not going to doubt they can tackle a two bed bungalow.

We specialise in historic properties so we work on

castles, churches, Grade I listed properties.

When you say you do these Grade I listed properties,

what exactly do you do?

We specialise in historic lime mortars,

internal horsehair plastering, stonemasonry.

We've worked on the local Bolsover castles and Chatsworth Houses.

-Chatsworth House?

-Yeah, we've done Cardiff Castle.

What has your uncle Phil taught you?

Pretty much everything in the building industry of what we do and

the historic side of things.

From an early age, being at school,

visiting the stately homes where uncle Phil was working.

So, clearly one bungalow is no challenge to these two.

Both of them was up at the auction so I bought two together.

Within a space of six weeks, both of them was done and they've been let ever since.

Is your plan to rent this one, too?

The plan is to rent this one, exactly the same.

Just modernise it, make it really nice and habitable and get the

right tenant in that wants to look after it.

As you know what you're doing, I'm guessing you'll have a pretty

-set budget that you're confident you could...

-Yeah.

-What's your budget?

We'll probably spend between 7,500 and 9,000, depending on

what we need to do just in alterations on heating systems.

There is a lot to do. You're talking windows, completely redoing

everything, taking fireplaces, boilers, new doors.

-Yeah.

-Is that realistic, that budget?

Yes, it's realistic. I've got a mother-in-law that will help out

with the decoration and also it's free labour.

Free labour which will keep down the budget, maybe.

-Absolutely.

-What's your timescale?

What are you thinking?

We will probably have this completely finished in four weeks.

Five weeks maximum, I would have thought.

If anyone can do it, it's you two.

Do you think you could do it before I give birth?

We'll give it a go, I'm sure we can manage it.

Best of luck. Can't wait to see the results.

-Thanks, Phil.

-Thank you.

-Thanks, Kev.

-Thank you.

Call me sentimental but a wee bit of me will be sad to see that big hole

in the toilet door go.

Now, Phil and Kev are used to dealing with listed properties,

so this should be a walk in the park.

You can find out if it was later on in the show.

Still to come in Longbridge, Birmingham,

I'm ready to dust off my overalls and paintbrush.

I just want to redecorate through the whole of this property.

Whilst in Nottinghamshire, they've called in the reinforcements.

We've had Richard doing the tiling element,

we've had Alan laying floors, fitting kitchens.

Back now to Margate on the Kent coast where earlier in the show,

I toured a one-bedroom flat on the top floor of this seafront block.

Nice space.

Big sort of living area here, but then this is the bedroom.

Now, why am I saying that in a kind of negative kind of way?

Only because I can see what you can't yet, which is that.

What an amazing view!

# A room with a view. #

The flat was bought by Tony and Calum.

Tony's been renovating for over 15 years but his son, Calum,

was just starting out on the property ladder.

They paid £92,000 with a view, a seaside one,

to it being Calum's home after refurbishment.

The lack of a lift was the main negative of the flat,

something Tony was well qualified to rectify with his day job because...

It's a building company that specialises in working round the

-lift industry.

-The lift industry?

-Yes. Yes.

# Isn't it ironic

# Don't you think? #

I do think that, Alanis, but it's a bit too obvious.

Let's bring things right up-to-date.

Tony scheduled up to six months for the work.

We're back seven months and 25 days later to see the changes.

# This is where the echoes swell to nothing on the tide. #

Now, here's a question for you.

If Guy Garvey of Elbow saw it before refurbishment commenced,

I wonder if he would have said...

# It's all going to be magnificent. #

Knocking that partition wall down has made a magnificent difference.

It's certainly opened up the space here,

making it very different from its original state.

# Wasn't built to beat that way

# Suddenly I understand

# There on the sand. #

You see, when it all comes down to it,

it's all about having vision and the father and son certainly had vision

when it came to the floor coverings.

The lounge and bedroom floors have a sound blocking product under heavy

duty underlay and carpet on top, a big difference to how it was.

Sound thinking for the flat below.

# It's all gonna be magnificent. #

As I thought, swapping the room layout around means the worst view in

the flat, and that's still not a bad one, is the aspect of the bedroom

now, a much improved situation.

Well, I bet that took some elbow grease to achieve.

Here's Tony to explain what they did.

We've come in the front door.

There was a door here and that led into this kitchen area

and then this was a bedroom area, so we've taken that wall down.

We've taken the three doors away, just to give us a big open space.

We fitted this new top quality kitchen and it's all about looking

out to the sea, making it light and airy.

What's Calum's favourite bit of the end result?

Walking up those stairs and you're knackered and having a heart attack

and you can actually take a deep breath and you can look at the sea.

That's worth it, yeah.

Were there any unforeseen problem areas?

A meter change ended up with nine visits before they actually achieved

giving us electricity.

Tony used a workforce he trusted from London but local suppliers were

sought for all the fixtures, fittings and furniture.

Tony visited the site weekly and supervised by phone and Calum found

himself making trips here for dad between his stints at his restaurant job.

Dad would tell me the night before, you've got to go down here,

you don't have to be in the office today.

He had an understanding boss!

Yeah, pretty much.

Well, I should hope so. What's Tony's favourite feature?

The bathroom's come out well.

We've tried to put some colour into the tiling.

We want it bright and happy.

We've gone for yellow walls, just to give a summer impression,

with blue to give us a reflection of the sea.

It's all about happy, beach holiday feel,

that's what we wanted and hopefully that's what we've achieved.

The original budget was around the 15-20,000 mark.

So how did it end up?

We've ended up spending just over £17,000,

and that is including buying the furniture.

The associates that have done this work for me have done mates rates,

to be honest. So that all helps.

With all those stairs, I wonder if he will get mates rates next time!

So with their investment of £109,000 here,

it is worth hearing the thoughts and opinions of two local estate agents.

I think the layout is the best suited to make best use of the space.

And there is a nice, open plan area in the kitchen for lounge living.

They have refurbed it really well.

The choice of tiling in the kitchen is really nice and vibrant.

The sea views are good.

And we've got some good storage, which you don't often get in

modern refurbs, so that's really good.

Like me, the estate agents are impressed,

but will that translate into good valuations?

Crunch time - what is it worth?

I would expect to achieve in the region of £135-145,000.

I would estimate, in the current market, it would be about £120-130,000.

Taking that top figure, that's a 36 grand profit before taxes.

Them valuations, it's great.

-It's really good.

-Yeah, yeah, yeah.

I think we done really, really well.

You did do really well.

The flat is now the right way round, it looks great, and with

a decent potential profit, those retail figures could be tempting.

But at the moment, they're leaning towards Callum using the flat when

he wants and letting it out in the holiday season.

One of the agents suggested he can make £50 per night,

or £350 per week all year round.

And that is something Callum's certainly going to look into.

But quite how he will manage it and keep it for his occasional seaside

trips, I don't know.

But will his foray into refurbishment continue?

Will he repeat his auction experience?

It was a really good... Good thing.

But, especially when we won as well, it's good.

He has a 100% record, so...

Maybe next time Tony will get round to fitting that lift.

This is South Birmingham and Longbridge,

a place synonymous with the British car industry.

# I got a new car

# I got a new car. #

But with manufacturing closing and the loss of jobs,

the area has been in decline.

But with a £1 billion regeneration programme,

with plans for 2,000 new homes, schools and leisure facilities,

the area is looking up and moving in the right direction.

So I'm less than a five-minute drive away from the brand-new Longbridge

development site. So this is a good location to be in.

Our property is that. It's an end terrace.

It's got three bedrooms and a guide price of £59,000.

Now, before I even go in, I'm thinking,

could we create some off-street parking?

Everybody else seems to have done the same.

That's a good start. Let's hope inside is just as promising.

Just remember, when it comes to off-street parking,

you must comply with planning regs designed to protect the

environment, so you do need permission.

Right, what have we got?

OK, as soon as you come in the front door, you've got a small hallway, here.

Stairs right in front of me, going up to the bedrooms.

And you come into the first reception room, which is a nice size room.

It's nice and bright because you've got that big bay window just there.

Real fireplace there, but no central heating.

Through into the back of the property.

And we've got this...

I'm imagining should be the kitchen and the dining room.

But all there is in here is the sink.

So this would have to be a total rebuild, a brand-new kitchen,

bit of a dining area as well,

and I think that would be the way to go with the space, here.

As it stands, it is certainly not a kitchen/dining area most families

would be looking for.

And if you are buying with a mortgage,

it would be wise to check with your lender to see if this kitchen meets

their definition of habitable otherwise, you could find yourself

without funds.

There are no cooking facilities or work surfaces,

but there is a pantry and a downstairs toilet.

But it's going to need new windows, doors and central heating,

so you're going to need to spend some money here.

So, upstairs, we've got three bedrooms and a family bathroom

which...

..has no toilet in it.

So the only toilet in this property is downstairs.

Me, I would definitely want to create a toilet up here in the

family bathroom.

Three bedrooms, one to the back of the property.

More of a box bedroom with some delightful woodchip wallpaper just there.

And this is the main bedroom.

Double bedroom, good size, nice, high ceilings.

Textured ceilings as well, I would want to get them skimmed.

I just want to redecorate through the whole of this property.

But there's lots of space, lots of potential.

And I actually don't mind it at all.

On the face of it, this is a conventional three bed property.

But there are a couple of slightly unusual things.

It's a bit odd these days to have no upstairs toilet.

But even stranger than that, this house is leasehold,

and the current lease only has 50 years to run.

So not only am I recommending extending the lease,

I'd seriously look into buying the freehold.

It might cost you 20 grand or more,

but it would definitely add value to the house.

And overall, I think it would be worth it.

So out the back, and it's totally overgrown.

Hasn't been touched for some time.

But I can see the end of the garden, and it's a decent size.

Once all this is gone, it will be a really nice area out here.

But I've got to show you that. And it's not quite an extension.

It's a lean-to.

What I would do, is I'd completely get rid of that and I would build a

proper brick extension.

That's the way I would do it.

Yes, if this lean-to ever had its day, well,

that ship has long since sailed.

# It's time to go now. #

But what's great about this house is there are loads of things you can

do to add value.

Extensions, modernisation, off-street parking, and, for me,

that is exciting.

But does a local estate agent feel the buzz as well?

The current layout is very dated.

There's a bathroom upstairs but no WC.

So that's something that needs to be looked at.

Downstairs, there's a conservatory which is dilapidated,

so you could perhaps lose that and rebuild.

And that leasehold situation. What issues does that present?

It's unusual for houses to be leasehold.

But there's a very short lease,

which would affect the value of the property.

And also, if it's ever sold, it would affect the mortgageability.

OK, but the house was guided at £59,000 to reflect that problem.

So could it still be a worthwhile punt?

Once the property is renovated,

with off-street parking and with an extension to the rear,

the property could sell for up to £150,000,

depending on the standard of the refurbishment.

And it would rent for a figure of around £550 per calendar month.

This house needs a total rethink.

Firstly, you've got to get a toilet upstairs into that family bathroom.

And that lean-to has just got to go.

But who was up for a bit of hard work when this went under the hammer?

Well, it was in a busy auction room that the three bed Longbridge house

came up for sale.

That's yours. Congratulations.

And out of sight of our cameras, and considerably over the guide price,

the hammer fell at £100,000.

Husband and wife Martin and Wendy were the successful bidders.

They've done up a number of properties over the last three or

four years, and I met them back at the house to see what caught

their eye about this one.

# Only passing by. #

-Martin, nice to meet you.

-Nice to meet you, Dion.

-Wendy.

-Nice to meet you, too.

-And congratulations to both of you.

-Thank you.

-So who's responsible for buying this property?

Both of us. Drove past it and saw it and thought, we'll go for it.

Really? That's how you found it?

Yeah, Wendy's brother only lives round the corner, doesn't he?

Yeah. Local.

-OK, and you guys live close by, too?

-Yeah.

-Yeah, about a mile or so.

Oh, really? So this is your manor, then?

Yeah. Definitely.

OK, so before we go into the house, what are your day jobs?

What do you do away from property?

I run a tunnelling company.

-We do...

-A tunnelling company?

-Yes.

-That's a first one for me, what is that? Explain that to me.

It's similar to most people would identify with the Channel Tunnel,

you know, it's a similar thing, the same process as that.

We do... I've worked all over the world doing various jobs

-in various areas, haven't I?

-Yeah.

OK, and you're in charge of the purse strings?

-Yes.

-The finances!

-Try to be!

-It was a guess, but I'm always right when it comes to those things.

I'm the director at work and Wendy's the director of finances.

-# Can you dig it

-Oh, yeah

-# Can you dig it

-Oh, yeah.

-#

Well, I'm not sure that Martin's tunnelling skills are going to be

needed here but Wendy's financial skills might just be helpful.

But what are they going to do to dig this place out of its current

-predicament?

-New bathroom and new kitchen.

We're going to put a single-storey extension on the back.

OK, so where the lean-to is, obviously that's going...

Yes, demolish that and then put a new single-storey.

Front and back garden.

-Yes.

-That's a must.

-Windows.

-Basically everything, kitchen...

-Central heating.

..bathroom, re-wire.

What are you going to do about the bathroom? You've got a toilet

downstairs but you haven't got a toilet upstairs.

We're going to try and pinch a small bit off one of the bedrooms.

-OK.

-And there's a cupboard we can remove like an airing cupboard.

-Yeah, make it bigger.

-So we're hopeful that we can jig it around to

get a toilet up there and try and keep the downstairs toilet.

Have you thought about maybe at the front there,

you've got scope for a bit of parking as well?

Oh, yeah, we're going to put in some kind of block drive.

-Good.

-Or then, we'll take the wall down at the front,

open it up so you can get a couple of cars on.

Perfect. So you've listed a lot of things that need to be done.

-Big question...

-Budget.

Yeah, the budget, you know it's coming, what is the budget?

We're hopeful that 20...

20,000, that's it...

-Hopefully.

-But realistically, if it was 20 to 25,

I'd still be quite happy.

The lease, does that worry you at all, this being a leasehold property?

No, because we've already got the ball rolling.

We've already had a figure off them.

Leasehold, they want to put it up to over 20,000, 20-25,000,

-to extend to a full 100 year lease again.

-OK.

But yesterday had an offer back for the freehold

which is only about 2,000 more.

-OK.

-So at the moment that's looking a lot more favourable than the leasehold.

I mean, once that's done, you've got no worries, have you?

-Exactly. Sounds like a bit of a no-brainer, that one.

-Exactly.

Yes, buying the freehold makes total sense, but they may have to wait.

Normally you have to own a property for two years before you can do that.

Since the couple plan to rent the property,

the lease decision doesn't have to be hurried.

With the help of tradesmen, they plan to get the work done

in ten to 12 weeks, but what exactly are they planning?

I tend to do most of the early stuff, don't I?

-Kind of getting in, gut it...

-Smash it about?

Yeah, that's it and get it going.

And then Wendy will come in.

-Do walls.

-Finishing touches.

-Wallpaper stripping.

Tell me, what's the big secret of you two working together?

Does it work? Does it not work? How do you work together?

Tell me the ins and outs.

-I'll let you go first.

-Well, we both have the same thoughts.

-Yep.

We've both got similar tastes.

I mean, we do everything together anyway.

-We do, actually. Yeah, we do.

-Inside and outside of work.

We always go out together.

We are always together. Tweedledum, Tweedledee.

-Tweedledee and Tweedledum, yeah.

-But we get on really well, don't we?

-And we're both workers, aren't we really?

-Yes.

You know, there's no-one trying to shake the other and say

"Come on, we've got to go." We're both pretty keen, aren't we?

Both on the go all the time.

Well, you sound like a very good team to me.

-Thank you.

-You've got the brains...

-Yeah.

-..and you've got the brawn.

-Yeah, definitely!

-The brains and the brawn.

-You've definitely got it the right way round.

-That's true.

Listen, I wish you all the best. I hope it all works out.

-Wendy, good luck, Wendy.

-Thank you very much, Dion.

-Good luck, big man.

-Thank you.

So Wendy and Martin seem to be the perfect partnership and they both

have the same tunnel vision on what they want to achieve.

But will it all go to plan?

You can find out later in the programme.

Earlier in the show our first auction property reached its conclusion,

but we still have to find out what happened to the other two.

Yes, has the work been carried out, and just as importantly,

was it done on schedule and on budget?

Yes, well, there's only one way to find out, let's take a look.

Back now to border country, well,

the border between Derbyshire and Nottinghamshire and the village of

Whaley Thorns where I saw a two-bed bungalow with a guide price of

£50,000 plus.

There was a definite whiff of opportunity in the air,

but I always thought it would smell a bit sweeter.

Oh, here we go.

A definite whiff of dogs coming in.

The person who owned this, I'm guessing, was a definite dog lover.

It would need a scrub down, that was for certain.

And the dated kitchen was for the skip.

There were two decent sized bedrooms that only required cosmetic changes,

but the specially adapted bathroom would need a whole lot of work.

How many times have you been sat on the toilet,

you've run out of loo roll and you think, what I going to do?

Here lies the answer.

Excuse me, loo roll!

Sorted.

When it came up for auction,

it was building contractor Phil who bagged the bungalow for £52,500.

And although he was letting two other houses on this very cul-de-sac,

he and his nephew Kev were better acquainted with restoration than renovation.

We specialise in historic properties, so we work on

castles, churches, Grade I listed properties.

As Phil's other properties on the street were remarkably similar,

it was a case of history repeating so he was sure his budget of 7,500

to £9,000 and timescale of four to five weeks would do the trick.

We're back eight weeks later to see if that dated decor is a distant memory.

I'm pleased to see those grimy green units are gone,

replaced with wood-effect cabinets,

marble style tiles and a smart new worktop.

Phil and Kev have upgraded the windows and doors to UPVC which is

much more energy efficient and secure.

The front living area is looking fab, having been re-skimmed and painted.

Charming as it was, the coal-fired heating system is no more.

It's been replaced by a contemporary electric fire.

A heating engineer installed the boiler so the bungalow now has

central heating.

The wallpaper in the master bedroom is gone

and it's now a blank canvas.

Like the rest of the property,

the second bedroom benefits from new floor coverings.

The specially adapted bathroom is now better suited to family use.

The disabled access shower has been replaced with a shiny new bath and

shower unit and the new bathroom door isn't for golfers.

There's no hole-in-one! Ha-ha!

Phil and Kev have done a brilliant job.

They must be on a bungle high, but were there any bungle lows?

A couple of days after I purchased the property, we secured quite a few

projects that are quite local, all local historical or listed properties...

..which meant that we had to kind of juggle things round a little bit.

It meant a couple of late evenings and a couple of weekends,

but we got there.

Kev might have a different answer to that because he's done most of it!

The 11th hour called!

It called and Kev answered and with the help of their team,

they only went four days over their four to five week timescale.

We've had Richard doing the tiling element, Alan laying floors,

fitting kitchens.

Sean and Jake and so forth doing some decorating.

We've just drafted the guys in as and where we can and fitting around

our other very busy projects.

Phil and Kev also pretty much stuck to the 7,500 to 9,000 budget,

spending 9,500 grand, just a £500 overspend.

They could have done with an extra pair of hands.

My mother-in-law was originally very interested when she knew

the TV might be coming.

She was up for that. But no, in between holidays and it getting

really cold and other things on, then she's not paid too much

attention to what we're doing.

But she'll always keep a watchful eye on what we're on with and where

we're going. She's always interested, so that's always nice.

Well, maybe she could help out with one of the castles instead?

It's all property, right?

It is completely different to our work that we normally do on a

day-to-day. We have done a lot of new build in the past

but in terms of what we do as a core business,

it's very different to carving faces on the animal wall in Cardiff,

or fixing stone crenelated walls at Bolsover Castle.

It's very, very different!

Let's see if they can carve a profit from their £62,000 investment.

We invited two local estate agents to give us their opinion on the changes,

starting with the agent who saw it first.

I'm really impressed with the makeover this property has had.

It's been fully redecorated, new flooring throughout, new kitchen,

new bathroom. And, of course, gas central heating.

The overall standard is reasonable.

It's very neutral.

It's not really inspiring, but it's good enough for everyday needs,

so new kitchen, new bathroom and gas central heating and UPVC

double glazing, which is essential.

The agents valued the property at between 75 and £80,000.

That's a potential pre-tax profit of £18,000.

But as Phil plans to let the bungalow long-term,

what could it achieve on the rental market?

This property will achieve on the rental market within the region of

£450 to £475 per calendar month.

This should be achieving in the region of £450 to £475 per calendar month.

That's about right.

The other properties are a little bit more than that, that I own,

but they're three-bedroom, so I expected it being anywhere around

the 450 mark, so 475 will be a bonus.

That top 475 per calendar month could give them a great yield over 9%,

so will they be swapping palaces for properties any time soon?

We need to get back into doing what we do best, really

and try and make short work of some of the larger contracts that we've

got that are, that we've got on the table,

so we're back to business as usual, really.

Back to South Birmingham now, and the town of Longbridge.

It was here I looked around this three bed end terrace property that

had a guide price of 59 grand.

Outside was overgrown and the inside was shabby,

with no upstairs loo and a kitchen that wasn't exactly high spec.

Things really came out in the wash round the back.

Well, I've got to show you that.

And it's not quite an extension, it's a lean-to.

What I would do, is I'd completely get rid of that and I would build a

proper brick extension.

That's the way I would do it.

Of course, property development is all about research,

and if you'd done yours here,

it would've revealed that this house is unusual.

It had a lease with only 50 years.

Extending that lease or buying the freehold would be expensive,

but would add value.

Two people who weren't put off by this property's issues

were husband and wife team Martin and Wendy.

They paid 41 grand over the guide price at auction to secure the

property for 100 grand.

With a budget of 20 to 25 grand and a timescale of ten to 12 weeks,

they hoped to get the property ready for the rental market.

And this experienced pair already knew where their talents lay.

Sound like a very good team to me.

-Thank you.

-You've got the brains...

-Yeah.

-..and you've got the brawn.

-Definitely!

-The brains and brawn.

-Yeah, definitely.

-Definitely the right way round, that, isn't it?

-Yeah, that's true.

We've returned nearly five months later,

and the front of the property looks so much better,

with ample room for two cars.

Hopefully the inside will impress just as much.

MUSIC PLAYS

Now that's what I call a transformation.

Over to you, Martin and Wendy.

Yeah, we're now stood in what was considered to be the old

lean-to in the property.

And as you can see now, it's an absolute beautiful,

fully fitted kitchen.

And we're just completely over the moon with the whole transformation

from a lean-to, to this end product.

The small pantry is now a useful downstairs toilet.

And the living room, well, take a look yourself.

MUSIC PLAYS

The clean lines and tasteful decoration continue upstairs into

the bedrooms.

MUSIC PLAYS

And I'm happy to report that the stunning bathroom suite includes

that all-important upstairs loo.

Out the back, the jungle has been tamed.

No grass has been laid yet, but it still looks so much better.

Top to bottom, inside and out, this property is unrecognisable.

But how has it been for Wendy and Martin?

We decided to totally renovate.

When we got into the property, a lot of the things were probably a

little bit worse than what we originally thought, didn't we?

-Yeah.

-So we just made the decision we'd go right back to the bones and

start afresh. So everything from wiring, plumbing, plastering...

Ended up doing a bit more than we anticipated.

But it was worth it.

On the upstairs, we, we stripped all the plaster off

and really put new studded walls.

Everything was rewired, all new plumbing was done to the bathroom.

In the bedrooms, we completely knocked all the walls down and

pinched a bit off each room.

Made the bathroom a bit bigger, made the box room slightly bigger.

It's still possibly on the smaller side, but it's certainly a lot

better now that we've got all the utilities in there, isn't it?

-Got everything we wanted.

-Very happy.

Martin and Wendy have been very busy,

but how has all this extra work affected their budget?

The original budget was 20 to 25,

and we actually spent 35, nearly. Almost.

So... But we obviously originally, on that original budget of 20 to 25,

-we actually didn't envisage doing...

-Everything.

..quite that amount of work.

We done up the whole lot for that, though, haven't we?

-Yeah, I mean, it's cost us a bit more...

-Quite happy.

..but I think the end result, you know, we're more than happy with

what we've got now for the money.

Along with the budget going up, the extra work also meant it took

closer to 14 weeks than the planned 12.

So far, they've invested a total of £135,000.

However, they're also in the process of securing the lease,

which they hope to get for around 25 grand.

So with the couple planning to rent the property,

will two local estate agents think it's been a worthwhile investment?

First impressions of this property, bright, airy, very welcoming.

Nicely extended.

Yeah, superb.

The selling points of this property, there's off-road parking, there is

an extension with kitchen, and there's also a toilet downstairs.

I think this property will be in very strong demand for the location

and the finish that the property offers.

Good news, but what kind of valuation would the estate agents

-put on the property?

-If this property was to go into the market,

it would achieve around £150,000.

I think the seller would be looking at offers over 145 to £150,000.

That top valuation would mean a pre-tax profit of 15 grand.

Of course, that doesn't take into consideration buying the lease.

But it's rental, not sales, that Martin and Wendy are looking for.

I think this property could easily achieve a per calendar month value of £750.

If this property was going on the rental market,

it would achieve 700 to £750 per calendar month.

Definitely looking 100% at the rental, not the resale.

So... And the resale can probably only get better over the next ten,

15 years, hopefully anyway.

-So...

-House prices are always going up.

-Exactly.

-Doesn't matter, does it?

-So, yeah.

So that higher valuation would mean a healthy yield of 6.6% which the

couple plan to enjoy, making this project a resounding success.

There are always twists and turns when you buy a property at auction.

You have to be flexible and ready for anything that comes your way.

But there are large profits to be made if you get it right,

and those are the stories we love.

Indeed we do. So, join us next time for more tales from the auction room.