Episode 20 Homes Under the Hammer

Hello, and welcome to the show. Who doesn't like a property bargain?

I know we all do. But you know what they say -

-if it seems too good to be true, it probably is.

-Well, that is true,

but there are bargains to be had at auction,

and some of them are real bargains.

Yes, if you head down to your local auction house,

you might just get what you're after,

and you might even find your next home under the hammer.

Well, although every property development is different,

there are certain rules you need to follow

whether you're doing up a studio flat or a mansion.

Yes, we say it over and over again on this show -

do your homework and view the property before putting your hand up

in the auction room.

Well, let's see if the buyers on today's show

stuck to those golden Hammer rules.

In Dresden in Stoke, there's some room to lose in this bathroom.

Seems a bit of a waste of space, to be honest.

In Kincardine, Fife, these former public toilets scrub up well.

As public toilets go, these are actually quite nice.

And in Croydon, London, the facilities are a little too public.

You can only access it by coming through this bedroom.

Not great for privacy when you're lying in bed.

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.

Third and final time...

GAVEL BANGS

Dresden in Stoke-on-Trent

is believed to have been named after the German city

with which it shares its rich history in ceramic industries.

It's where you'll find Queens Park, the oldest in the city.

It was once described as the poshest district in Stoke-on-Trent,

which is easy to believe when you see some of the magnificent

Victorian buildings in the area...

and it's one of those I'm here to see.

Now, it's a little bit tight on the street right here,

but the house itself looks incredibly grand.

It's got three bedrooms, it's semidetached,

and it's got a guide price of £123,000.

Let's hope the grandness continues on the inside.

'Let's keep our fingers crossed.'

Yes.

The grandness does continue on the inside, as well.

Really wide hallway here,

really high ceilings, as well.

You've got this original dado rail.

Look at those cornices, as well.

First reception room is just to my left,

and the detail on that ceiling is incredible,

and in good condition, as well.

There's your stairs going up to the bedrooms.

Second reception room is a similar size to the front,

with another original feature fireplace just over there.

Very, very pretty, all these old features are.

Down the hallway into

what looks to be the dining room.

Kind of a strange dining room, not huge.

Got a big sort of chimney breast there with log burner.

Quite small in here - and then, a little bit further on,

we go into the kitchen, which is a good-sized kitchen. Lots of space.

Doesn't look to be in too bad condition, either...

..but the first thing for me is,

could you knock that wall down to create a huge kitchen-dining area?

Which would be good -

and I can see that there's just a toilet right at the end, as well.

So you've got everything you need down here,

and I haven't seen anything that's worrying me at the moment.

This place is full of period character,

so let's have a song from the era

just to get us in full Victorian swing.

You might expect a grand garden to go along with this,

but sadly it's not.

# Come into the garden, Maud

# I am here at the gate alone... #

So the outside space, it's...

it's not huge -

and I would imagine, back in the day, it did go a lot farther back.

These bushes, they're overgrown.

I think you'll get another...

..good two foot once these have been chopped down.

I normally look at houses when I come out, and I think,

"How could you extend?"

But why would you want to when you've got all that space in there?

And if you don't try and extend here,

you'd have an even smaller garden,

which wouldn't work for a family - it'd just be too small.

Good thing you're close to Queens Park...

..but there's plenty more space upstairs.

So, you've got three good-size bedrooms upstairs, as well.

All the space from downstairs continues up here.

Nice, original fireplace, as well.

All this space on the landing.

What I have noticed,

there's three or four different types of radiator

through the whole of the house.

What I would do, is I'd get a plumber round

as soon as possible just to check out the

central heating system.

And then you walk into this huge family bathroom.

Seems a bit of a waste of space, actually, if I'm to be honest.

And maybe - I'm pretty sure - this was a bedroom back in the day.

Now, depending on what you want to do with this property,

what your plans are, could you change this back to a bedroom,

and try and relocate the family bathroom elsewhere?

I'm just saying, and I'm just giving you options.

# I'm keepin' my options open

# Cos now we're dancin' slow

# And deep inside there's a voice

# Tellin' me I better go

# But you sure look good to me

# I'm gonna stay awhile... #

This is a very attractive house,

and we've asked along a local property expert

to see if they find it as enticing.

It's a fantastic property.

It's a really good size.

The dimensions and room proportions are fantastic.

I think there's definitely a certain type of buyer for period properties.

There can sometimes be quite a lot of maintenance involved

in the upkeep of them.

So, yeah, definitely more of a select market, sometimes.

It's a good point -

and older properties of this size

will also be harder and more expensive to heat

on cold winter nights.

Could an agent warm to the idea of an extension?

'There is the potential to make it into a four-bedroom property,'

but I think the lack of outside space

would perhaps restrict the market.

Fair enough. So what kind of sales figures could we expect?

I think, once renovated, the property could achieve £175,000,

but I don't feel that adding a fourth bedroom

would elevate that price much.

This is a charming Victorian property,

and it has some of its original features intact, as well,

which I would want to keep.

Obviously, a house of this age

will come with its own individual set of challenges,

but from what I can see, this place just needs modernising.

Let's see who hung in there when it went under the hammer.

Good-looking property of character.

120 to get it going.

Lot number 22.

120 bid, thank you.

At 120. I'm going twos on this.

Bid's at 120.

122. 124? 124.

126. 128.

130.

What are you saying? 131.

No, at 131, standing right, then, at £131,000.

132 anywhere else?

132.

133.

No? At 133, standing again, then,

at £133,000. All done?

134 anywhere else?

If not, £133,000 once...

£133,000 twice.

Third and final time, then, at £133,000.

It's not quite enough.

If the bidders would like to come and talk to us.

That's just what Xander did.

It didn't reach the reserve price at auction,

but Xander secured the property behind the scenes

for his maximum bid of 132 grand.

He came along to tell us more about his plans for his charming house.

Xander, nice to meet you.

-Nice to meet you, too.

-Congratulations, pal.

-Thanks very much.

-So is this what you do?

Do you go around finding property?

-Property developer?

-Well, first one.

-First one.

-This is your very first project?

Yeah.

A big unit like this?

-Yeah.

-DION LAUGHS

We normally get people that start with a flat,

or a two-up, two-down,

but you've gone in at the deep end, slightly, with this.

Yeah, two feet in. just thought I'd see what happens, and...

And why was that? What made you go for this particular house, then?

I mean, I looked at smaller houses,

but it was just, when I saw...

I looked at all the properties at the auction

and, when I saw this one, I loved it. You know, it's just so big,

and all the traditional features.

-Couldn't resist it.

-So, Xander, you've chose very wisely.

You've got all this detail, high ceilings, huge rooms.

So, if this is your first project, has it not frightened you at all,

-the size of it?

-Yeah. When I got the keys and I got in it,

there was a few moments of panic in there.

I'm just going to have to...

I'm committed, now, so I've got to suffer through.

-Just kick on and get on with it?

-See what happens, yeah.

Tell us - why property, then?

If this is your first one, what were you doing beforehand?

What was your job before?

-I worked in accountancy before...

-OK.

..but I've always fancied getting into property,

and I just thought, "Why not jump in two feet and see what happens?"

Good on you. So what was the turning point for you?

What made you actually say,

"I want to go from that to that and make it full-time?"

I think I'd just been putting it off,

and...I'd always fancied it, I've always thought about it,

but never actually dared to jump in -

and then, come the New Year, I just thought, "Why not now?"

There was no real event, I just thought, "Go for it."

Good man. This particular house - what was it about it that you liked,

and what are you going to do with it?

It's not been maximised, the potential,

-so, at the minute, it's a three-bed with a huge bathroom...

-Yes.

..so I'd look to make it into a four-bed

with an upstairs bathroom still.

The middle bedroom, we'll call it,

it's big enough that you can split that in two,

so, make that a bedroom and a family bathroom,

turn the current bathroom back into a bedroom...

OK.

..and, then, maybe open up the kitchen and the dining room,

so a big open-plan kitchen-diner.

-Nice.

-See, I think it's not reached its potential, so...

-OK.

Does anything frighten you about going into it?

Yeah, yeah, a little bit. Just, as I go round,

I keep seeing stuff that needs to be done, and thinking,

"I don't know how to do that."

But that's why I'm going to have to get tradesmen in

-and trust them to do a good job.

-Yeah, yeah, yeah.

As long as I... Hopefully, I'll be all right!

-Fingers crossed.

-Exactly.

I do hope Xander has looked at the maths of creating a fourth bedroom,

because moving that bathroom will cost a fair bit,

and the agent didn't think it would add value.

What's your budget going to be to turn this round?

My budget is 27,500.

-OK.

-Just because that's all the money I have left...

-Oh, really?

..after buying the property, yeah.

And how long's the work going to take you?

Well, I'm saying three to six months, just because, obviously,

my first one, I don't really know how long it's going to take.

-Yeah.

-If it's three months, it'd be great.

If it's six months, it wouldn't be the end of the world.

No, not at all. I think six months is...is a lot of time.

It gives you time to get it right, and get things in place,

-how you want them.

-Yeah.

-When you were looking for a property,

when you left your accountancy life

and you've now gone into the property world, what was your plan?

Was it to buy and to rent, to buy to sell?

-I think it was always to buy to sell...

-OK.

..but, potentially, if this went well,

maybe, if it was in a good yield area,

I'd rent one, maybe I'd then sell one, you know?

So I'm open to letting but, for the first one, I just want to...

-Flip it?

-..get it gone. Yeah.

It's more, obviously, because I've quit my job,

it's a living, it's a pension. It's everything, really.

-Well done. Good luck to you.

-Thanks a lot.

-I wish you all the best.

-Cheers. Pleased to meet you.

So Xander is obviously an ambitious guy.

He's given up his accountancy job

to get involved in the property developing world -

but he hasn't started with a small house,

but he has started with a good house, in my opinion.

All he's got to do now is find the right workforce

to carry out his big plans.

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

Situated between the Firth of Tay and the Firth of Forth

in the area known locally as the Kingdom of Fife

is the pretty town of Kincardine.

With a population of around 3,000, it's a quiet place,

but it has a real sense of history

in its architecture, with the stepped gable ends

being a typical feature

of 17th and 18th century houses in the area.

Well, right in the centre of Kincardine

is the property I'm here to see -

and it's one of those really unusual types of property

that probably only really makes it into the auction catalogues.

It is a former public toilet,

but you wouldn't guess it from the outside.

Look at that!

£35,000-plus was the guide price, which is a lot for a loo.

Let's take a look inside.

As I said, it's a lot for a loo,

but it also looks like a lot of loo for the loot.

There's the gents and ladies at the front,

and what used to be a disabled facility out back.

That could be regarded as the upper floor, but clearly not safe enough

to stand on, even if you could get there.

A bizarre thing to say, but, as public toilets go...

HE LAUGHS

..these are actually quite nice.

Very lofty. Lots of space.

You don't feel sort of claustrophobic.

Interestingly, you can see the sash windows up there.

What have we got? Well, as you might have expected,

I think I'm actually in the ladies side here.

A sinky thing there.

We've got these cubicles with the original toilets there.

One thing you're certainly not going to have to install

is any kind of sewerage system, is it?

It's definitely here.

Um...but, in terms of space, well...

if you start imagining converting this somehow into two floors...

..I've seen smaller houses.

And when you look at it in the context

of the surrounding buildings, you can see what I mean.

It's not a glorified garden shed,

like most modern public conveniences.

In fact, it's even got a little bit of outdoor space.

Well, what an intriguing property this is turning out to be!

Yes, slightly more than you might expect

from a former public convenience.

Yes. Loo-ds and loo-ds of space.

Actually, surprisingly, at the back here, you've also got this area,

which is suddenly opening all sorts of possibilities.

The one thing you'd want, if that was a house, is a garden.

So, this could be the garden.

There's a narrow strip of land down the side, as well,

which means you could think about getting access there.

Ideally, though, you'd want to get some kind of access

over this bit of land.

So, some negotiations might be done with the neighbours.

Either way, it's a really useful extra space -

and these are the loos that just keep on giving.

So, over to the gents side -

and ignoring the obvious signs of the loo, things like the urinals,

what could we do? First thing, planning permission.

At the moment, it's a toilet,

so you're going to have to get planning permission for conversion

into either a residential unit - probably the preferred option -

or possibly commercial premises.

Not so sure that would work.

Next, once you've done that, you've got to look at the numbers.

Is it going to be, well, financially viable?

Get this around the £35,000 guide price

and how much leeway have we got?

So, to find out how much leeway we have,

we invited along the auctioneer who sold the property

to ask him what he'd do with it.

Well, it's an interesting opportunity.

If I owned this property,

I think I'd look at a residential conversion.

I think that's the best option for the property.

It's the one that's most likely to go through with the planners.

There's some ground to the rear of the property

which you could create a small garden or drying green.

I think one issue that potentially anybody has to get over is parking.

There is on-street parking available,

but it would be difficult to create

some dedicated parking for the property.

With the parking issues in mind,

the agent believes that flats would be the best solution here.

So what kind of values would he give those?

If the building was converted into, say, two flats,

I would think probably the valuation of the flats would be between

£50,000 and £60,000 for each unit.

Rental values for flats here

are around about £500 per calendar month.

Well, I'm sure quite a few people would have been put off

when they first saw this in the auction catalogue -

but the more you look into it,

the more you realise this could actually

make someone a bit of money.

Let's see who wasn't put off when it went under the hammer.

Being the last lot of the day, only the die-hards remained.

Can somebody start me off at £30,000 for lot 34?

Have we got 30,000 anywhere?

In the room for lot 34. 30 anywhere?

20 to get us started.

20 anywhere?

10, just to get me started.

Lot 34. Thank you, sir.

Standing up in the middle at the back.

£10,000. Have I got 12 anywhere?

12 from a proxy bidder.

14, sir. 14.

16. 18.

20. 22.

That low opening price must have got the bargain hunters excited,

but some brisk bidding soon flushed away any hopes of a cheap sale.

We rejoin the auction with the price standing at £37,000.

Are we all done at 37,000?

Going once...

twice... Back in again.

37.5. 38?

Shaking his head. I think that might have done it, actually.

At 37.5.

Down the front at 37.5.

Going once, twice,

-third and final time.

-GAVEL BANGS

Gentleman down at the front here.

The property was bought for £37,500

by local residents Lisa and Michael,

who had spotted the property before it went to auction.

Why were they so keen to spend a penny

on these former public toilets?

I met up with them to find out.

Michael, Lisa, great to meet you both.

-Hello.

-Congratulations!

Yeah. Raised eyebrows, indeed.

Tell me why you wanted to buy this place?

It was because it was going so cheap.

It was initially up for 70,000.

When we went to the auction,

it was barely getting over 30 before I started bidding.

Then, I managed to pick it up at 37,500,

so I was quite pleased at that.

Do you know of the toilet block?

I knew it used to be a house.

-Oh!

-It was a house for approximately 200 years.

-Right.

-Then, it became a wet fish shop.

-Oh!

-Then a fish and chip shop.

Then, in 1976, I think, they changed it into a public convenience.

-Right.

-Then it was closed about ten years ago.

So what do you do in the town?

-I'm a publican.

-Oh, great.

-You own a pub?

-The two of us are publicans now.

I initially came to Kincardine just to stay for a year,

get the pub up and running, but it's such a nice place,

I've decided to stay.

Yeah, and now you're investing in even more property in the area.

So it's a really interesting building, isn't it?

It's a wee bit narrower than what I thought it was going to be.

-I thought it would have been bigger inside.

-Right.

But we had the architect have a look at it,

and he's advising us to make it into two flats.

-Two flats?

-Yes, an upstairs and downstairs.

-Ah!

-So that's a possibility.

Right.

Just depending on planning - if we get the planning permission for it.

We have to go through the mines if we want to put an extension

because of the old mine works

-that the monks used to do round about Kincardine.

-Monks?!

-Yes, aye.

-Mining monks?

Yes, there was mining monks in Kincardine at one time.

-MARTIN LAUGHS

-What were they mining for?

Coal, I would imagine. Anyone that's building anything in Kincardine...

-LISA:

-Has to have permission.

-Needs a monk mining survey?

-Yes.

# In nomine Christi, Amen. #

I reckon mining monks is a first for Homes Under The Hammer -

and one thing's for sure, after a day down the mines,

those monks would come back with some right filthy habits. Ho-ho-ho!

So talk me through the process from this point on, then.

-The first thing is to get planning permission, is it?

-Yes.

Yes, and after the planning I've got a builder coming to see it tomorrow

to give me an estimate on how much it will cost me.

So we're hoping to keep to keep the two of them...

Approximately 80 grand, we've got to spend on the two of them.

Right, OK. 80 grand plus the 37,500 you spent?

-Yes.

-That puts you tantalisingly close to around about 120,000.

-Yes.

How much do you think the flats could sell for?

-Not much more than that.

-Right.

But we plan on keeping them for a wee while

-and renting them out...

-Ah.

-..up until the market...

-Picks up a bit.

-..picks up a wee bit.

I'd hope you would be able to make them for...

Do the whole conversion for less than 80.

Yes, I would think so, as well,

but if we are having to put an extension on the back,

it's going to cost us a few bob.

Right. What would the extension be for?

Just to increase the overall size?

-Well, we need to make an extension here...

-Stairs.

..for the staircase going upstairs to the upper flat.

-Right.

-And that's going to be the expensive bit of it.

-Right.

So how involved are you going to get, actually,

-with the building and stuff?

-Hands on.

-Really?

-Hands on, yeah.

-Hands on, the two of us.

What will you be doing?

-Labouring.

-Right.

-We will be the demolition squad.

Michael and Lisa are also hoping to use their contacts

in the local trades to get the work done,

and they're hoping that, once the flats are completed

in six to nine months, there will be a steady stream of potential renters

from contractors working in the area.

So, much experience of sort of renovation and stuff?

-MICHAEL LAUGHS

-Aye.

On a previous property, I thought I had nothing better to do

than knock down a wall.

So I took a sledgehammer, me and my friend, and knocked doon this wall.

Well, when I went upstairs to get into the bathroom,

couldn't open the door.

Couldn't open the door for the bedroom or the kitchen

because the floor had started caving in.

It wasn't a load-bearing wall?

It was a load-bearing wall.

MARTIN LAUGHS

-LISA:

-Just in the way(!)

-Oh, dear.

So I had to get my uncles out to prop it up.

So we managed with a couple of doughty props to prop it up,

-and we got some steel girders.

-MARTIN LAUGHS

So you've learnt your lesson, I hope?

I've learned the lesson - leave it to the professionals.

MARTIN LAUGHS

Well, congratulations.

-Thank you.

-Good luck with it. And really excited

-to see how it turns out.

-Thanks.

-MARTIN CACKLES

-Right, thanks very much.

Well, it seems that, under Michael and Lisa's ownership,

the old toilets are going to end up as two flats.

Initially, I thought maybe a pair of semis,

but it's all going to come down to the numbers -

which makes more sense.

You can find out what they do later in the show.

Coming up - I hope you've brought your hiking boots

for this two-bed semi in Croydon, London.

-Wow!

-Now that's a steep stair.

Oh, I'm dizzy just looking at them.

And Michael needs mountains of money in Kincardine, Fife.

When I got quotes, the lowest quote I got was 28 grand.

They call the city of Dresden in Germany "The Jewel Box",

and earlier, in its namesake area in Stoke,

I saw a real diamond of a Victorian property.

Encrusted with original features everywhere,

it just needed a little bit more space downstairs.

The first thing, for me, is, could you knock that wall down

to create a huge kitchen-dining area? Which would be good...

..but upstairs, the opposite problem.

It's a bit of a waste of space, actually, if I'm to be honest,

and maybe - I'm pretty sure - this was a bedroom back in the day.

Now, depending on what you want to do with this property,

what your plans are, could you change this back

to a bedroom and try and relocate the family bathroom elsewhere?

Xander paid 132 grand for it at auction...

..and it was his first ever development.

Like me, he thought an extra bedroom and a kitchen-diner

would improve this place dramatically -

and, like me, again, he had fallen in love with it.

When I saw this one, I just loved it.

It's so big, and all the traditional features. Couldn't resist it.

So, Xander, you have chose very wisely.

You've got all this detail - high ceilings, huge rooms.

If this is your first project, has it not frightened you at all,

the size of it?

Yeah, I mean, when I got the keys and I got in it,

-there was a few moments of panic in there!

-DION LAUGHS

We are back, seven months on - one month over his timescale -

and I can see Xander has added much-needed off-street parking -

not something the Victorians had to worry about...

# Bring me to life... #

..but what about the Victorian interior?

Has he brought this house to life?

# Bring me to life

# Ooh

# Bring me to life... #

Wow, I do like this place.

I absolutely love the finish here.

I love the layout, too.

Downstairs, there's a huge kitchen-diner

and I like that Xander

has kept references to the period of the house.

In that very ornate lounge,

he's gone with restoring the period features

and the grey colour scheme is authentically Victorian,

but also very now.

Upstairs, he's created a fourth bedroom,

placing it where the bathroom was -

and by splitting the largest bedroom,

he retains the glorious upstairs bathroom.

And in the other bedroom,

he's thrown in an en-suite just for good measure.

# Bring me to life... #

Out back, he's made the best of what was here,

and that sums up the house, doesn't it?

By rolling back the years and building on the original features,

he's taken this house forward as a very grand family home.

It's got a few wow factors.

The ceiling in the front lounge turned out really well.

The kitchen, obviously, has got the wow factor.

It looked better than I pictured.

The kitchen was more work than we originally planned.

Kitchen ceiling was quite wonky,

so we had to replace the kitchen ceiling,

lower the dining room ceiling here

so that it looks flush.

And we also had to level the floor,

cos the floors were different heights.

As a first development project,

I worried Xander might have bitten off more than he could chew.

Luckily, he had some help.

I don't have any building skills,

so I ended up having three builders

doing all the skill stuff, big, heavy stuff,

and myself, I did all the labour and all the decorating,

but I also had my dad - he did a huge amount of labour on the house.

My mum helped with the painting.

I even had my brother-in-law and sister pitch in a bit.

He went one month over his six month timescale

due to some delays getting started,

but the main challenge was an unexpected one

for the former accountant.

I think the biggest challenge was just managing the finances, really.

It was quite easy to...

..just go crazy and spend and, you know,

I had to do a lot of research, getting the best price

and haggling with suppliers and whatnot.

Yeah, so the budget went out the window pretty...

pretty sharpish after the builders started.

And, yeah, I originally I said about 25, 27.5, something like that.

Ended up being more like 40 -

and the reason for that is I did a little more work to the yard

and kitchen and one or two ceilings I wasn't planning on replacing -

but, other than that, it's just...

It's a classic beginner's mistake.

Just a few things cost more than I expected...

but I think it's OK.

I don't think I've gone too...too crazy.

Xander plans to sell,

so to find out how this spectacular property might fare on the market,

we've called in two local property experts.

Are they going to be as impressed as I am?

Renovated properties don't come much better than this one.

I'm particularly pleased at the size of the property,

and also that many of the original features

have been retained whilst it is a modern home,

ready to move straight into.

Now, with how the property has been knocked about,

there's an abundance of space

and the off-road parking's now been added,

and that is a big bonus.

Really stunning from an architecture point of view,

because of the skirting board, shape of some of the windows.

It's important not only to look at the positives,

which here there are many, but also to look at the negatives.

The only slight concerns I have here are,

yes, there is off-street parking but it is limited,

and the lack of outside space.

It's a good patio.

Very, very usable.

But for anybody looking for a garden,

this property isn't going to tick the box.

Xander's first development has cost him 172 grand to buy and renovate.

Will it be a profitable first venture?

If we were to sell the property,

I would recommend a figure

in the region of £235,000.

Looking at the sales market for this property,

I would advise an asking price

of £225,000.

Yeah, not too bad.

A little low. I've actually got it on the market, now, for 250,

and given what my estate agent has said

and kind of the interest we've had,

we're expecting around about 240 to be achieved.

So, yeah, not too bad.

Well, if he gets his estimated price of 240 grand,

that would mean a whopping 68 grand pre-tax profit.

A hugely successful first step into the property world -

but was it enjoyable?

My first property, I'd say, has been quite an adventure.

It's been fun. It is hard.

It's harder than it looks when you watch the show.

Yeah, really, really pleased.

Really chuffed with how it's gone and how it's turned out, yeah.

-MARTEL:

-A small market town called Croydon

is mentioned in the Domesday Book.

Well, things have moved on from the 11th century

and, now, Croydon's one of London's biggest boroughs

by population - and increasingly expanding, at that.

Regeneration has long been a buzzword here,

and that says one thing to me -

plenty of potential to invest in property.

This street is just a five-minute drive from the centre of Croydon,

so it's really convenient for lots of shops and facilities.

Not so convenient,

you've got a school just across the road, which means it could get

very busy at certain times of the day.

I do like this open space, which is good, cos it's right next to...

..the property I'm here to see.

A two-bedroom semidetached with the guide price of £250,000.

So, what do you get for your money? Let's find out.

Entering in our first reception room.

Do you know what? It really hits you as you come in, that smell of damp.

Maybe no-one's lived here for a while.

Good proportions, albeit quite small.

Love this fireplace surround.

It's really pretty, and it's got a fireplace, too!

Personally, I'd keep that. It adds a bit of character.

It seems a bit unloved, but it does have double glazing

and central heating. Definitely a good thing.

Through to second reception room, but...

Wow! Now, that's a steep stair.

Oh, I'm dizzy just looking at them.

Through to the second reception room.

Again, pretty good space.

It needs a bit of attention, and that's putting it mildly.

Look at this! The wallpaper is coming off.

That felt good. It came down pretty easily -

and it's no wonder,

because it's actually held up with sticky tape. Hm.

Through to the kitchen.

Small, needs ripping out.

Really needs modernised.

But it's doable.

You know what? It's pretty typical of an auction property

where everything needs done.

But the good thing is you can add a bit of value to it.

Now, let's go to the stairs.

Hey, they might be steep, but with every footstep...

# We could be

# One step closer

# Closer than we are... #

Whoof!

These are some seriously steep stairs.

Need to do something about them.

Our front bedroom is an OK size - enough room for a double bed,

maybe a wardrobe. Through to our second bedroom.

Now, I was beginning to wonder where the bathroom is.

Here it is at the back of this bedroom,

which means that you can only access

it by coming through this bedroom,

which is not great for privacy when you're lying in bed.

So, we need to think of solutions.

Potentially, this chimney breast could be taken away

so you create an independent corridor hall

along to your bathroom.

It is a big job, but I reckon it's worth doing.

A change here would be a big improvement,

although a bathroom off a bedroom is certainly better

than the old alternative - out the back garden!

Wow, it's like a jungle out here.

What a thin, long garden!

It goes back such a long way!

Now, maybe if you cut this back a bit, it'd make more width,

but it's great that you have so much outdoor space, albeit so narrow.

Now, this takes me back.

This reminds me of being a kid, going to see the neighbours -

an outdoor toilet.

Yes, but I don't think it'll be for everyone's taste,

so you might want to completely get rid of it,

or you could make the most of the footprint

and extend - use it to extend out for the kitchen.

Certainly plenty of options.

# Goodbye my friend

# I know you're gone you said you're gone

# But I can still feel you here... #

Well, I'm in favour of saying toodle-oo

to that outside loo.

It's now time to say hello to a local estate agent.

What does he make of this rather tired house?

This property needs quite a bit of renovation.

So all the walls thing to be looked at, possibly re-skimmed.

The floors in some areas are sloping,

so I'm wondering if there's a problem with either foundations

or just rotten joists.

Bathroom, kitchen are standard.

There's a fair amount of work to be done here, then,

but would it be worth taking on

if you could get it near that £250,000 guide price?

This property, once renovated, will sell for approximately

£375,000.

This semi needs complete modernisation.

The upstairs layer has to be addressed,

as well as the steepness of those stairs.

The plus side of all that is that value can be added.

So let's find out who saw that potential when it went to auction.

Two-bed semidetached house.

Draw your attention to the announcement sheet.

Take that as read.

Start at, I don't know, 260 on this.

260 straight ahead, 260.

Thank you. 265 anywhere?

265. I was looking back there, and you were here.

265. 270.

270. 275.

280. 285.

Yeah? 290.

291 at the back.

Looking for 293.

If not, 291 first time...

..second time...

..third and last time, If you're all done...

You're very close on that.

# So close

# Yet so far away... #

The lot didn't meet the reserve, but one of the bidders, Larry,

was able to strike a deal afterwards,

paying £290,000 -

a grand less than the bid in the room.

Larry is a lettings consultant

and I was keen to hear his plans.

Larry, congratulations.

-Thank you.

-Talk me through your buy.

I've been to auction a few times but this is one that, um...

-..I wasn't prepared for, really, in a way.

-OK.

-Yeah.

-You didn't intend on buying this one?

Not initially...

..but it came up, and I just made a decision very quickly...

and, then, that was it, really.

Now, you didn't see the property beforehand.

Did you see the addendum added on the day

that said it's a two, not three-bedroom property?

-No, I didn't, no.

-Ah.

There's a lesson for us all.

So you thought coming into this, it was three?

Initially, three, um...

So that's why, for me, it was very cheap for three.

Very, very cheap. Probably too cheap for three...

but possibly OK for a two.

So it's a case of, it just reduces your profit.

When I came in, there's a smell of damp.

-Yeah.

-Have you looked into that, how much of a problem that is?

There's not much of a problem.

The few key things are how long the place has been empty.

It is quite a tight house

in terms of there's no ventilation that comes in.

So if it's been empty for over a year, you will get that.

So it's... Actually, it's not that bad.

To be honest, only the stairs was the main issue.

You know, the stairs is a bit steep.

-They're very steep.

-Yeah, very steep -

but I've got solutions for that.

One of the things is to have a 90 degree

would come into the second reception room, and then turn left,

and then up the stairs.

What that does is just to reduce the angle...

-..downwards.

-I see.

So, giving more length to the stairs means you have more room

-to have less of a slope?

-Exactly.

So, therefore, you decrease the angle.

Is that the kind of thing when you -

because you bought the property blind -

when you come in and you think, "Oh, no, it's a bit of a headache."

It's going to take a chunk out your budget, isn't it, things like that?

Absolutely, but it's a solution.

You know, tomorrow's another day.

Let's worry about today.

So, for us, we've got solutions for it, for all the quirks.

Not reading the addendum and not viewing the property -

tut, tut, tut.

Please pay attention to the paperwork,

or it could cost you dear.

Anyway, I do like Larry's solution-focused approach.

I like his plans for the stairs

and he's going to create a corridor to the bathroom -

and that pokey kitchen is going to be extended.

-Now, I know you're a lettings consultant.

-Yes.

How does developing your own property fit alongside that?

It's more satisfying then the letting side.

So, yeah, I do...I do enjoy it,

and it just keeps me motivated.

Yeah, a huge sense of achievement -

and does part of you, you know,

care about the end result for whoever's going live here?

Absolutely. Because then my...

my lettings side comes in.

Because, no matter what happens,

whether it be letting

or whether someone has actually bought the property,

I see things that I imagine

that if I was going to be living here, what would I want?

If I'm satisfied, I'm sure everyone who lives here will be satisfied.

-What's your budget for turning it around?

-30.

-30?

-Yeah.

How long do you think it'll take you?

About 12 weeks.

12 weeks - reasonably quick turnaround.

You've got to have confidence.

When you're in this industry,

you have to have confidence,

even though initially it may look not the best option

or best decision you've made, but then you got to turn it round.

-That's how it is.

-Right.

I can't wait to see the finished results.

-Thank you.

-Congratulations again...

-Thank you very much.

-..and best of luck.

-Thank you.

Well, Larry's well and truly broken

that golden Homes Under The Hammer rule -

look inside the property first -

and what do you get when you don't do your homework?

You get a two-bedroom instead of a three.

But Larry still seems very positive

and certain he can still make a profit.

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

Well, earlier on, we saw one completed renovation -

but what about the other two?

Was it all plane sailing, or did they encounter choppy waters?

Yeah, let's dive in and have a look.

It's time to return to the pretty Fife town of Kincardine,

where, earlier, I paid a visit to these former public toilets

for sale at auction with a guide price of £35,000-plus.

It's a bizarre thing to say

but, as public toilets go,

these are actually quite nice!

Very lofty. Lots of space.

You don't feel sort of claustrophobic.

Although not much to look at in its current condition,

the two-storey construction and space to the back of the property

made me think that this place had good potential for redevelopment.

Actually, surprisingly, at the back here,

you've also got this area, which is suddenly opening up

all sorts of possibilities.

The one thing you'd want if that was a house is a garden,

so this could be the garden.

It was Michael and Lisa who splashed out £37,500

to buy this place - and the reason for the purchase?

It was because it was going so cheap.

I managed to pick it up at 37.5,

so I was quite pleased at that.

Getting it cheap is one thing,

but what were they planning to do with it?

Their architect came up with an idea.

'He's advising us to make it into two flats.'

-Two flats?

-Yes, an upstairs and downstairs.

With a budget of £80,000,

Michael reckoned it might take

between six and nine months to complete...

..that was almost three and a half years ago.

So, how is the renovation looking?

# Mama used to say

# Take your time, young man

# And Mama used to say

# Don't you rush to get old

# And Mama used to say

# Take it in your stride

# And Mama used to say

# Live your life... #

Oh, dear - it looks like Michael and Lisa's project

has hit a few snags along the way.

So, what's the story with the former public toilets...

which are still former public toilets?

Well, my plans were to make it into two flats -

two two-bedroom flats -

but when I submitted it, I was told I would have to

put sash and case double glazed,

toughened glass windows in it -

and there's 22 windows going round the building, so...

when I got quotes,

the lowest quote I got was 28 grand,

so I just scrapped the project.

GLASS SHATTERS

# Oh, nothing new sound of breaking glass... #

Oh, no. It looks like those windows have shattered Michael's budget.

So what has he been up to for the last three and a half years?

I got a wee bit bored being a publican,

so I've went into property development.

For the last year, I've been down in Newton Stewart,

doing a flood-damaged house down there.

When I got there, there was nothing from four feet up,

so I've had to do it from the bare bones,

and I've been doing it all myself -

and I'm almost completed.

I would say, in the next three months,

the house down there will be complete -

and that will release some funds for me to start work on this.

Aha, so it's not all over.

Well, my plans for this place now

is to make it into a house for me and Lisa to stay in.

We're going to put an extension on the back for the kitchen,

one up above for the toilet, four bedrooms.

I'm trying to get a snooker table in!

I'm no' saying nothing to Lisa,

but I don't think she's going to agree to it!

I think the game might be up

once she sees the programme, Michael!

Anyway, he still has a bit to do before he can chalk up his cue.

He's renting his pub out just now,

so that's one less thing to worry about -

but not only has he the other property to complete,

he still has to apply for planning permission

for his new idea of turning this into his home...

..but is his change of mind the best course?

We've invited two local property experts to come down

and, with their knowledge of the Kincardine housing market,

see if we can find some figures that Michael will find interesting.

First, the auctioneer who handled the original sale.

'Whether you do two flats or a single detached house,

'not totally sure.'

It's got some space round the back for parking, off-street parking,

but I think it might go better

as a single house than two flats.

In my opinion, the best course of action for this property

would be to turn it into flats,

actually have them do a buy-to-let opportunity on it,

or buy them, renovate the property, and sell it on.

In terms of its square footage, it would make a good family home.

There's a few properties recently that have been modernised

in this street, and they've been turned into good-sized properties.

Well, the agents with some differing opinions, there,

but not really a definite one way or the other.

So could the figures help decide the best option?

What could his new plan, the house, be worth?

As a four-bedroom property,

I would value this property around £200,000.

The sale value of this property,

converted to a four-bedroomed house with the car parking round the back,

I would estimate to be somewhere

between £180-190,000.

I could do a lot of damage with 200 grand!

I dare say you could, Michael - but let's do the maths.

He's hoping his build costs for the house will be £80,000,

on top of the 28,000 for the windows.

If you add that on to his £37,500 purchase cost,

that's £145,500.

So he could make a potential profit of £54,500.

That's not bad at all.

Now, Michael has been given estimates along the same lines

for windows and creating two flats,

so that makes the numbers nice and easy.

What could THEY sell for?

Resale capital value for flats, if they were put on the open market,

somewhere between £75-90,000 each.

In terms of the resale value, two-bedroom flats

have been doing roughly £80-85,000 just now.

That could mean a potential pre-tax profit of £35,000 -

but what if he chose to rent them out, as originally intended?

I think that a reasonable rental valuation for two two-bed flats

would be perhaps £500 per calendar month.

A good quality flat in this area

with two bedrooms will rent for £500 per calendar month.

That would give a yield of 8%.

So will Michael go back to plan A?

I think I would go for the flats, if I'm being honest.

By they prices, I would.

I would see if I can do something with the windows.

If I can do something with the windows,

at they prices, yeah,

I'd probably make it two flats.

Well, I didn't see that one coming!

Michael has weighed it all up, and he reckons,

since he doesn't need parking for the flats,

he can avoid planning issues and any further delays.

By any reckoning,

three and a half years is a long time to sit on a toilet...

project.

So, has this experience put him off property development?

I've got a pub just round the corner there that was closed

three years ago, so I bought that.

It's got upstairs, downstairs, quite a big building,

so I'm going to be busy for the next few years.

First, I've got this to do, roughly six months' time...

Then, I'm across there straight after that.

So I'm going to be a busy boy for the next few years.

-MARTEL:

-Time to take a trip back to Croydon, now,

where I saw a two-bed semidetached

house with its fair share of issues.

Wow! Now, that's a steep stair.

Oh, I'm dizzy just looking at them.

Up those steep stairs, there were more issues to make your head spin.

There was a first-floor bathroom at the back, which was good,

but it was only accessible through the second bedroom,

so the layout needed changed.

Outside, there was a loo at the back, but for today's modern living,

I thought it had to go,

and maybe the kitchen could then be extended out in its place.

So a lot of work -

but this didn't put off lettings consultant Larry

from spending 290 grand on it...

because he didn't view it before buying it.

Now, you didn't see the property beforehand.

Did you see the addendum added on the day that said it's a two,

not three-bedroom property?

-No, I didn't, no.

-Ah.

There's a lesson for us all.

So you thought, coming into this, it was three?

Initially, three.

So that's why, for me, it was very cheap for three.

Very, very cheap. Probably too cheap for three,

but possibly OK for a two.

So it's a case of, it just reduces your profit.

# It's a sad picture

# The final blow hits you

# Somebody else gets what you wanted again... #

Larry might have been burned by the blind purchase,

but he was still confident he could turn this around

and make a profit in 12 weeks -

and even though we're back seven weeks later than planned...

# But I believe in whatever you do

# And I'll do anything to see it through

# Because these things will change

# Can you feel it now?

# These walls that they put up to hold us back... #

Very nice.

The stud wall has created a corridor to the much-improved

bathroom. It's been at the expense of a bit of space

in the second bedroom and involved moving a chimney breast,

which I think is a big improvement...

..and it's not the only room that's had its chimney breast removed.

The main bedroom has gained more valuable space, too...

..and I guess it's time to head downstairs -

but will it be a treacherous trip down a steep set like before?

Not at all. There is an L-shaped set of stairs

leading into the second reception room,

which have less of an incline -

but it's meant a new way through the front room had to be created

through the old cupboards.

Right at the back of downstairs is the kitchen, which was a bit pokey.

Not any more.

# Cos these things will change... #

It looks fantastic, and has been extended

into the space where the old loo used to sit.

The new window and layout means light can flow

right through the house and offer nice views of the garden,

which you couldn't really see before.

A lovely, open space with easy maintenance in mind.

The damp throughout the house came from the external walls,

so they were dried out and have had a full damp course treatment.

It wasn't Larry getting his hands dirty, though,

as he project managed, and has a regular builder, Greg,

and his team to thank for doing such an amazing job.

One of the biggest challenges was the removal of five chimney breasts

in total. It does give the rooms more space,

but removing them reduces the stability of the building.

So the walls and ceilings need strengthened

to support the chimney,

which sounds like a lot of work to me.

Well, the actual job wasn't that bad in itself.

It was the red tape of what's called a Party Wall Award,

and what that does is, because you are removing a major structure

within a building,

that removal may impact the neighbouring property.

Therefore, what happens is you have surveyors who come in,

survey both properties before and after,

and then, the award is given.

So, if there's any defects after the works, then I'm liable -

and that took probably about 4-5 weeks in order to get that award.

That delay meant that rather than make his ideal

three-month timescale,

it's taken four and a half months to get the work complete.

Looking at everything Larry has tackled,

I'm wondering whether he's managed to stay on budget.

Spending, in total,

42, um...

and that was mainly because of the chimney breast, the Party Award.

So, that wasn't in our plans...

..but it is what we had to do, and we incorporated it...

but I am pleased with the result,

more than looking at the figures of what we spent.

That spends takes Larry's total here to £332,000.

Time, then, to get the opinions of two local estate agents

to see if they think it's been money well spent.

I think it's a speculative refurb, but a really cute little cottage.

I think they've done really well with the layout,

especially changing the staircase position,

which has made a world of difference to the practicality of use.

I think the improvements have made a vast difference

in terms of the corridor.

Now, you don't have to go through there

to get to the bathroom,

so that would make a huge impact on the price,

and rise that from there.

The only thing I would have possibly changed is,

I would have painted the exterior wall

to the left-hand side of the property.

I think first impressions count,

and a lot of viewers would potentially drive past the property,

and I think this would have made the difference to the saleability.

What kind of a difference have Larry's improvements made

on his £332,000 investment? Could he make some profit

in this two-bed house he bought thinking was a three-bed?

I think this property would sell for in the region of £390,000.

In the current condition and current market, the property would be worth

around about £400,000.

That is surprisingly high,

but obviously pleased with it.

Um... Yeah, absolutely pleased. Absolutely pleased.

I should say Larry has every right to be pleased -

that is a potential profit of £68,000

before taxes and fees are deducted.

Larry and builder Greg have put in a lot of effort

turning this round, but he must thank his lucky stars

because it was very risky, buying this house blind.

I did everything that you shouldn't have done.

um...but there was confidence in there

that we can turn it around and make it work.

I think we've, you know, turned a sinking ship

into a ship that anyone can want to sail on.

Well, that's today's projects done and dusted -

but there are plenty more out there.

Yes, and we'll make sure that we are following them

-just for you.

-Indeed we will,

so join us next time for more restoration stories

-here on Homes Under The Hammer.

-Bye-bye.

-Bye-bye.

-Goodbye.