Episode 3 Homes Under the Hammer

Hello, and welcome to the show.

Buying property can have its highs and lows

and it's not as easy as people may think.

And you'll also have to get over a few obstacles along the way.

Yeah, but one way of eliminating some of those problems, and perhaps

simplifying the whole process, is to head down to your local

auction house and buy your next home under the hammer.

Well, there are all sorts of properties on offer at the auction

and buyers who have all kinds of ideas and budgets for them.

Yeah - let's look at the ones that are being sold under the hammer

on today's show.

Lucy is in the lovely village of Farningham in Kent

to see a Grade II-listed cottage that has her lost for words.

Oh, whoa!

'So hold on, Lucy gets a Grade II-listed cottage in Kent

'and I get a standard three-bedroom semi near Birmingham?

'I know my place.'

It is pretty typical.

I'm sure there are plenty of interesting features in the house,

Dion, but I don't think anything will compare to the flora I find

at this two-bed terrace in Cheshire.

Oh, that's made my day. Happy little flowers.

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.

Sir, you have it, congratulations.

This is the picturesque village of Farningham in Kent.

Now, in all my years of being on Homes Under the Hammer,

I have never ever, ever been here, unbelievably.

But it's got this lovely villagey feel,

it's got wonderful river views

and it has great access onto the nearby motorway.

So I think it's fair to say you definitely get the best of

both worlds living here. And the good news is,

the property I'm here to see

is right in the heart of this lovely village.

It's a semidetached house,

and it had a guide price of £350-375,000.

Let's track it down.

# Sun is shining The weather is sweet... #

Lucy only has a two-minute walk to find the property on offer

and it looks like it might be a challenging property.

The corner position right on the road is not ideal -

it's where the boarding is a bit dilapidated on the outside.

And just to complicate things,

there used to be a barbers on the ground floor,

so there might be some planning issues to sort out.

So far, so bad.

Oh, whoa!

Whoa!

I'm speechless - I wasn't expecting this.

Wow! That's the third time I've said that!

There are beams everywhere.

Only short people need apply for this one, then!

Now, I think this was built in the early 1800s -

you can just tell, there's so much wood everywhere.

It's got that real cottagey feel to it, low ceilings,

leaded light windows.

Through here, well,

it's a bit confused because you've got a sink and then a loo.

Maybe it was a utility area.

But it's just...it's just lovely.

So much character.

But very small indeed.

Now, up these little stairs to not what I was expecting again -

two separate levels.

Wow, look at this - a level up there, lots of light,

you've got different vistas from the high street this end and this end.

Loads of windows, but just beams, fireplaces,

character oozing out of this place!

Oh, it's so nice to be in a place like this.

I can really imagine what this will be like once somebody gets

their hands on it and does it up.

Oh, it's so exciting.

Oh, and by the way, this is a Grade II-listed property,

just to let you know.

Thanks for that, Lucy. As we know, Grade II listing equals character,

but it also means Listed Building Consent probably needs to be obtained

for alterations inside as well as outside the house.

So whoever takes this on will need to be patient.

This will take time.

But you can probably fill in that time by getting lost in here.

It's bit of a maze, so pay attention because this is pretty complicated.

Up the stairs onto the second level, there is a decent-sized kitchen.

Back down to the middle reception room, there is a staircase,

which takes you up to two pretty dilapidated attic rooms.

Back downstairs, and just off the middle reception

is this large bedroom complete with a good-size en suite.

I hope you're keeping up.

Now it's time to head downstairs to the commercial part of the property.

Well, I'll tell you what,

you can't really wipe the smile off my face in this property because,

even though it is just a warren of different rooms and corridors

that don't make any sense,

I do love it. It's got the most amazing feel, and I think,

if I'm right, this would have been the original barbershop.

You can see it's got that sort of shop-front feel,

the separate entrance coming in from the street,

but then it's got things like polystyrene tiles with

years and years' worth of paint slapped all over them.

It's just incredible being in here.

You can smell the damp,

you can see there's obviously been water coming through.

But you can just feel the sense of history, being in a room like this,

and I've not even finished yet

because I've got more exploring to do in the form of

something at the end of the path.

I'm going to have a look.

While Lucy hangs outside,

there is one more bit inside to see.

At the back, there is a room with its, erm, retro sink.

Down the corridor is a very old room.

Maybe this was the kitchen - who can tell?

Anyway, it leads to...

oh, a real disappointment - a tiny garden.

Well, it looked like the house could be a great family home.

The garden is certainly a let-down, but we're not finished yet.

So you might be wondering why I'm walking up this garden path

and that is because, with this lot, you don't just get

a Grade II-listed property.

Oh, no, you also get this massive plot of land.

And at nearly three-quarters of an acre in size,

I think you'll agree

there could be some further potential here.

Now, I've got my developer's head on, and I don't think

you'd get just one property here - you could even get more than that.

You would need to sort out the access and I'm sure there'd be a few

obstacles to get over before you get permission, but I think it could be

well worth some consideration.

This really is the gold at the end of the rainbow.

Amazing!

# It's getting better all the time... #

Now, before you get too excited, be aware that,

when it comes to the land, planning may well take into account

that Grade II listing.

But nonetheless, for that guide price of 350-375 grand,

this auction lot looks like a lot of potential.

But what does a local estate agent make of it?

Having looked round the property myself, I absolutely love it.

It offers fantastic potential for someone to come in

and put their own stamp on it.

If you're able to maintain the character of the property,

you've certainly got a home that's got a lot of soul to it as well.

We all love it, but what can the agent tell us about the land?

The plot of land offers magnificent potential to put a separate dwelling

there, subject to the relevant planning and consents.

There's certainly recently a history of applications being accepted

in the road, so I don't see it being too much of an issue.

And the access is already there as well to allow them

to put that separate dwelling.

Great news. So if it was converted into one large family home,

what kind of value could it achieve?

Once renovated as one property, we would look to market this property

between £650,000 and £700,000.

And what about that plot of land?

With regards to the plot of land at the rear of the property,

if you were to get planning consent to build one dwelling,

you could maybe look to market that around £625,000.

If, however, you were to get planning for two separate dwellings,

you could look to maybe market them around £500,000 per property.

Wow, what a property.

In a stunning village,

these certainly don't come up for auction everyday.

Now, I know there's a lot of work to do, but there really is

so much potential. And after a lot of hard work, well,

I think it could be stunning.

And let's not forget, you even get a possible building plot as well.

I can't wait to find out who bought it and what they're going to do with it.

Let's head to the auction and find out.

Somebody start me, if you will, at 300,000.

300,000, I say.

Thank you, 300 on my right I have.

Let's go in fives. 305, may I say?

300 on my right, 305.

310.

The bidding for this lot came later in the day,

but there were still some very determined bidders.

We rejoin the bidding at 355,000.

355, your bid.

360.

360, 370.

Sorry, 365, I beg your pardon.

370.

75.

80.

No. The gentleman's bid on my right, third row, 375 -

it's against you two there.

380 anywhere else?

Are we done?

First time at 375.

Second time at 375.

For the third and final time at £375,000 on my right,

against you both at the back, are we all done?

I think we are. That is sold at 375.

That successful bid bang on the top guide price of 375,000

was made by David and his son-in-law, Adrian.

Adrian is a property developer and builder who came along to meet Lucy,

but he didn't have far to travel, as he lives in this lovely village.

Adrian, lovely to meet you today.

You've done a beautiful job of pouncing on this

and you're now the fine owner of what was originally a barbershop.

It was a barbershop in one part of the house and this part of the house

was residentially owned, I believe.

Is this a property you've bought as an investment opportunity?

It is a property I've bought as an investment opportunity, yes.

-And have you been looking for something to do up?

-Yeah.

Is this because it's in your village that you wanted it?

We'd looked at other properties around slightly further afield,

but I am keen to work as close to home as I possibly can.

So come on, I want you to cast your developer's eye over this place

and tell me exactly what you're going to do.

Basically, what we want to do here...

I've got a very good London-based architect who's helping me.

He's used to small spaces, so he's going to help us here.

I think, basically, we're going to put sort of four-to-five bedrooms

in here, three en suite.

We're adding a glass structure at the back of the building

so everything flows through from the kitchen

into a sort of breakfast room/day room/family room.

Now, glass structure, that's interesting.

This is a Grade II-listed building.

How is that going to get past the planners?

Well, this is where our architect comes back into play again.

He's recently completed a project with us

where we've joined three Grade II-listed properties together

and we've won two awards,

one for small project and one for best building,

-so we're very happy with that.

-Wow.

Adrian, I'm sorry, but I've got high hopes for this place now.

It sounds like this house is going to be amazing, and Adrian has...

# Got high hopes... #

..of completing the work in eight months.

So let's talk about money.

Budget - how much money are you going to pour into this beautiful property?

I would imagine about...

£120,000?

-Really?

-Yeah.

-OK, so have you worked your sums out completely to the T?

-No.

-Do you ever do that?

-No.

-So come on, do you think with your heart and not with your head?

-I do, yes.

-You're a creative, aren't you?

Yes, that's it. And it's nice to do something... I think we can...

I won't cut any costs, but I know where to source the right materials,

I know how to do it properly,

and I think we'll come in under budget.

Let's put this project aside for a minute and talk about, well,

I'd like to say this house's garden, but it's actually a plot of land,

-isn't it?

-It is, yes.

-So it came with another plot?

We'd like to get permission for some tasteful houses up there,

but if we don't get permission for that

then we're very happy to keep it in the family

and probably have a stable up there...

..for a horse for my daughter.

So is this just all in the day job for you?

-This is just what you do, isn't it?

-It is, yes.

And what are you most looking forward to with this exercise?

-Being close to home.

-Now, you keep mentioning that -

what is it about being so close to home?

Well, it's nice. I can walk here in the morning,

I can walk back in the evening,

and it's very nice to have a property in the village

so we can make our village better, nicer, prettier.

And to have this house fully functioning again as a family house

is what I like to do.

I think it's great as well because you're rather spoilt,

you can stop at one of many pubs for a spot of lunch on the way back,

-can't you?

-You can.

-Adrian, good luck with this project.

I can't wait to see the outcome. It's been great meeting you.

-Thank you very much.

-Thank you.

-Nice to see you as well.

Adrian has plenty of experience and big ideas

for this beautiful property,

but there'll be restrictions attached to a house like this.

And the planners - well, if they don't like the sound of all that glass,

his ideas could be shattered.

Join me later on in the show and you can find out if it all goes to plan.

This heavily-wooded area close to the M6 is...

It's a popular spot for dog walkers and bird-watchers,

but you'd best stick to the path, just so you don't get lost.

# Lost in Hollywood... #

Right next door is the South Birmingham suburb of Great Barr,

a popular residential area with great links to the city centre

and surrounding motorway network.

I'm here to see a 1930s semidetached house

with a guide price of £70-75,000,

and it's got three bedrooms.

Now, I'm expecting a standard layout, but will it surprise me?

Let's take a look.

Always remember when viewing a property,

don't be rushed.

Take time to observe the condition of the building.

Are there any loose tiles? Leaking gutters or downpipes?

Cracks in the brickwork?

In this case, the outside of the house looks pretty good.

HE SIGHS Right.

It is pretty typical.

It looks very dated, feels very dated.

You've got the stairs going up to the bedrooms.

Quite a small hallway.

Here's your first reception room there

with a very old-looking gas fire,

but it's a good size.

Kitchen to my left just here

with a door going out to the side of the property.

Quite a small kitchen - again, that would have to be changed.

And then into the second reception room, another gas fire,

another fireplace.

And this room is very similar to the size of the first

reception room, but we have a wall in between...

..kitchen and this room.

Get rid of it, for me. Create a nice, big, open

kitchen/dining space.

It's a bit of a waste, cos the kitchen's too small anyway.

Why not use the space that little bit better?

But you do seem to have a bit of a lean-to out here as well,

so could you...?

I'll come back to that just a bit later.

The traditional layout continues upstairs with a large bay-windowed

master bedroom and single bedroom to the front of the house,

and a double bedroom, bathroom and separate WC at the rear.

And you won't need to be a mind-reader to know exactly

what I'm thinking -

knock through that wall and create a large family bathroom.

So the upstairs to this house is exactly what I was expecting.

What I wasn't expecting is that this house is a leasehold property,

and a short lease at that, at 33 years.

That's going to make it really hard to get a mortgage,

so for me this is for cash buyers only.

You can buy the freehold to this property,

but it would cost you a few quid,

and you'd have to factor that into your budget.

So I've said it before and I'll say it again -

please, do your research.

There is one obvious benefit in going after a short-lease property

like this at auction -

if it's a cash-only buy,

there will be fewer bidders competing against you.

Now, I'm out the back and you've got a bit of back garden space.

It's overgrown and the trees do need to be cut back,

and the hedges as well.

But it's this conservatory, or lean-to, I wanted to have a look at.

It's definitely seen better days.

But it's the right idea to try and create a bit more space as well.

What I would do, I'd get rid of that completely and have a proper

brick-built extension creating a nice big kitchen/dining space.

For me, that's the way to go.

And if all this wasn't enough for the guide price of 70-75 grand,

there's even a pretty solid-looking garage the back of the garden,

accessed by the lane.

I like this house, but let's get the opinion of a local estate agent.

What does he think needs to be done?

It's a nice property, it's a good project for somebody,

there's not too much to do, generally cosmetic.

So somebody experienced would be able to

flip this round in four to six weeks.

Renovation works on this property,

you need to fully double-glaze the property.

The front's UPVC, but the windows... The back's not.

General cosmetic, such as plastering, carpets

and kitchen and bathroom.

Assuming the buyer fully renovates this house,

how much could it be worth on the resale market?

If the property was renovated to a high standard,

then I believe it would fetch around £145-150,000 on the market.

And what rental income could this property achieve?

Once renovated, this property would achieve

around £700 per calendar month.

So the house and the layout is exactly what I was expecting.

What I wasn't expecting is that it's leasehold.

I just hope whoever bought this house had done their homework.

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

Lot 31, which is a vacant leasehold semidetached property,

three bedrooms, bathroom, porch, hall,

two reception rooms and kitchen.

60,000 to start. Somebody jump in at £60,000.

50,000, then.

Thank you, sir, 50,000.

60, sir, thank you.

A packed auction room, so a flurry of activity for this property.

We rejoin the bidding when the price gets to 85 grand.

85 I'm bid.

Can I say 90, sir?

90 bid. 95, sir?

95 bid.

Have 97.5, sir, if you wish.

No? At £95,000, are you all done?

At £95,000 for the first time.

First, second and third time being sold, make no mistake, to 421.

Sir, you have it, congratulations.

Bidding 20 grand over the top end of the guide price,

paying 95 grand, was Marvin.

Marvin runs a property management company and has his own portfolio.

However, this is the first time he's tackled a renovation for himself.

We met him back at the property

to find out how he hopes to make this one a success.

-DION: Marvin, nice to meet you.

-Nice to meet you.

-Congratulations, sir.

-Thank you.

Tell me what made you want to buy this place.

I think it was...

..the interest on something that I hadn't seen,

but being a very good area with good local amenities.

I'm going to stop you there. Did you view this property?

No, I didn't.

I didn't. But I saw it on the catalogue

and I thought, "Great Barr? Wow."

And I looked at the guide price. The guide price was very attractive,

and I thought, "OK." The legal paperwork said it was a leasehold,

so I gambled on that, hoping that the price was going to be

-a little bit lower...

-OK.

..and then work on buying the freehold after.

And, yeah, worked well.

You didn't view it, so how did you know what you were going to find?

Well, I didn't know what I was going to find, but looking back,

cos I've lived in Great Barr before...

-OK.

-..so I had an idea...

-OK.

-..of what the properties

in Great Barr looked like.

So I thought, "Well, if I get it,

"if there's a surprise, I'll deal with it."

But that's the interesting bit for me.

When you were at the auction, did you have a limit?

-What was your budget?

-My budget was not to go over 90,000,

but I did go over 90,000.

So, yeah. Yes. Eventually, I think it was an ego thing,

-cos that's what happens in the auctions.

-Yes.

-When people are bidding...

-The chest comes out, doesn't it?

Absolutely, absolutely.

But I was thinking, "No, it should never go over 100,000.

"If it goes 100,000, I'm not buying it."

-OK.

-But, yeah,

it was nice to see somebody putting their hand down. At 95,000,

I managed to take it, so that was great.

-Lucky man.

-Yes.

Let's hope Marvin's luck continues,

because he's taken on a bit of a gamble with the short lease

on this property. But he's already done his sums.

The freehold, I'm looking at a bid probably about anything between

-12-14,000 to buy.

-OK.

And added onto the price, we are looking at no more than 110,000.

-OK.

-With the refurbishments, I'm looking at about £15,000.

So we are looking at around 125,000 all in.

And with the sale price at 165,000, thereabouts,

there is a little decent profit in there,

but I'm not looking to sell anyway, cos it's a long-term investment.

Marvin has brought this to add to his rental portfolio,

and he wants to get the house's gas and electrics in good, safe

working order as he wants to get a tenant in as soon as possible.

He also has a fairly big to-do list for his contractors.

The plan is to refurbish it.

We're looking at re-carpeting the place, all throughout the property.

Sorting out the walls, putting in some new fireplaces.

The majority of the wallpaper within the property is in a good state of

repair, so I'm quite happy with it.

For fear of not wanting to strip a lot of things

and then get into more surprises,

I'll probably keep it as it is,

because the good thing about it is the property doesn't have damp...

-OK, yeah.

-..which is a brilliant thing.

So we'll redec it round and make sure it's all nice and clean.

The bathroom, we're going to make it all one bathroom,

so there is a separate toilet and a bathroom,,

so we're going to make it all one.

-Gotcha.

-Refurbish the conservatory,

make a proper conservatory and then also sort out the garden,

make sure that it's all nice,

manicured, and the hedge is sorted out.

We'll leave the apple tree there -

-I think they'll probably benefit from the...

-Yes.

Maybe making cider, should they want to do that.

He might have the RIPE idea there,

and, hopefully, this project will be FRUITFUL for Marvin.

But he's not sure if the big TURNOVER in the kitchen -

by knocking the walls down - is the best use of money.

If it goes beyond the budget I have,

I might probably have to just make it nice and tidy, brand new,

all in good condition,

and hopefully it should be able to attract somebody.

And how long is it going to take to do the work?

I'm looking at a period of between anything between four to six weeks.

I hope everything works out. You've got all the boxes ticked

-from what I can see. I just wish you all the best.

-Thank you very much.

-Good luck, sir.

-Appreciate it. Thank you.

So Marvin has decided to buy a property for his own portfolio,

and he seems to know exactly what he's doing.

However, he did get one thing wrong.

He didn't view the property.

So please don't follow his lead on that point.

You can find out how he gets on, and if he gets it right,

later in the programme.

Coming up, I take a hands-on approach to inspect a property fully

at this two-bed terrace in Crewe.

That feels, yes, and looks - in fact, paint coming off there -

very damp.

And everything it didn't quite go to plan for Marvin

at his first solo project.

When the wallpaper was stripped, we had the ceiling dropping.

We are heading back to

the picturesque village of Farningham in Kent now,

that Lucy took a real shine to.

She saw a Grade II-listed building most recently used as a barbershop.

It was simply a cut above the rest.

# Take me to the village

# That never lets you down. #

Oh, whoa!

Whoa!

I'm speechless. I wasn't expecting this.

Wow! That's the third time I've said that.

There are beams everywhere.

Only short people need apply for this one, then.

But it's just... It's just lovely.

So much character.

With rooms that were in quite a bit of disrepair

set across many different levels of the building,

it really did seem like a bit of a maze.

If you managed to escape outside,

round to the rear of the property you'd find a plot of land

measuring almost three-quarters of an acre

that also came with this lot.

So a property full of character and a plot full of potential.

It's easy to see, then,

why local property developer Adrian paid £375,000 for it at auction.

A seasoned developer,

this one hit a little close to home, because he's...

# From the village. #

-What is it about being so close to home?

-Well, it's nice.

I can walk here in the morning, I can walk back in the evening,

and it's very nice to have a property in the village,

so we can make our village better, nicer, prettier,

and to have this house fully functioning again as a family house

is what I'd like to do.

Adrian has big plans for a modern glass extension,

and hoped this house would be complete in about eight months.

But its Grade II listing means he would have to negotiate with

the planning department, and as we know, this needs patience.

So it's been two and a half years, but we're back.

It's certainly been well worth the wait.

The modern glass extension leads you through to a brand-new kitchen.

Surprisingly, it wasn't a modern addition -

just through the living room is now a lovely bright space.

Getting planning to approve the change of use

for the barbershop took a year.

The house is now occupied, but the big surprise here is that Adrian,

wife Amy, and daughter Emilia have moved in themselves.

And upstairs, they've kept that quirky layout,

but adapted it to suit their needs.

The first-floor mezzanine has now become Emilia's playroom.

And next door, the old kitchen is now her bedroom.

Which has an added bonus - an en suite shower room.

Just off the living room you'll find the master bedroom,

which is now a lovely bright space.

And that tired old en suite is now modern,

but with period touches like the sink and wall-panelling.

Upstairs in the loft, it's all changed too.

With a bedroom.

A bathroom.

And finally, an office. It's stunning.

I can see why Adrian and Amy were keen to move in themselves.

I think my wife and I fell in love with the house, we really liked it.

We liked this space, we liked the light.

And we've become good friends with our next-door neighbours as well.

And our daughters both go to school together,

so it was a perfect move for us, so we're, yeah,

we're very happy that we moved.

It may have taken the best part of two years to get the work done,

but the family have been living here for ten months now

and look nice and settled. Their dog, Bluebell,

certainly seems to have no bones about the move.

Adrian might be able to settle back and relax now,

but between project managing

and getting his hands dirty doing a lot of the work here himself,

it must have been very tiring.

At least he lived in his old house at the other end of the village,

so the commute wasn't too bad.

I found living and working in Farningham very, very convenient.

I basically have a five-minute commute up in the morning

and quite often half an hour to hour commute back,

as there's a pub on the way home.

Trying to avoid the temptation of the pub on the way home

can't have been the only challenge on this project, though.

We faced a few challenges whilst we were here.

One being the damp throughout the property,

as the property's quite subterranean,

and the cladding was off the house -

we had all of those sprayed for woodworm and damp.

Not a great problem, it's just quite an expensive process.

That word "expensive".

Adrian had said this would cost 120 grand to renovate.

How much has he spent?

We ended up spending around about £220,000.

The damp exterior problems took a large percentage of the budget,

but then we wanted to do everything properly, and that's what we did.

But to do everything properly just cost a little bit more.

A little bit more?

More like £100,000 more than the original budget,

which has clearly been thrown out of the window.

But it's his family's new home now, and looks fantastic.

We've asked a local estate agent along to see if he agrees,

and more importantly,

if Adrian's total spend of £595,000 here has been worth it.

I really like the look of the property.

I think they've just done it right.

It all works, it blends well together.

Sometimes it's very difficult to mix new and old,

but I think in this instance they've done it very, very well indeed.

The selling features of this property is really the location.

The fact it's a Grade II-listed building

and it's in a very nice village in Kent.

Well, the house isn't for sale,

but what kind of price tag would the agent put on it if it was?

I think if this property was to come to the market at this moment in time,

it would sell for a figure of approximately £1 million.

That's good. I'm happy with that. I would...

I thought it was going to be around about that sort of mark.

But, yeah, that's good.

That would be a potential profit of £405,000,

minus any taxes and fees, of course.

Any chance Adrian and Amy could be tempted to sell?

No, I think we will stay living here, for the meantime.

Never say never. We may move on.

Could it be time to turn their attention to the extra plot of land

that came with this property?

We're just going to make it into a bit of a garden area,

so we can go up there, we can use it and enjoy it

and see what happens in the future.

Adrian is currently looking at his next project, which will hopefully

be nearby to the fabulous family home he has created

and so clearly loves.

Life's just one big holiday, living here.

Crewe in Cheshire is becoming ever more popular

with property investors.

Not just because it's a bustling town

with good housing stock and local amenities,

but because it will be part of the planned route of

the new HS2 high-speed rail link.

Well, about a mile from the train station

and close to the town centre

is the property I'm here to see.

A classic two-bedroomed Victorian terrace.

In this part of the world that's going to set you back at auction,

well, something which had a guide price of 54,000 quid.

So not a lot of money there.

What do you get for that?

You get an entrance hall - that's a good start.

Somewhere to hang your coats, which is good.

There's always an option of taking out this wall here and opening

the whole thing up to a complete open-plan feel,

which is something I would consider.

Because you don't really need that corridor,

and it would just make one massive space.

Straight away, I'm noticing something a little bit untoward.

I don't know what's going on here. But that feels, yes, and looks,

in fact, the paint coming off there, very damp.

It's on an internal wall. So what do we think about that?

It could be rising damp coming up from there.

It could be coming in from the neighbouring property.

Possibly coming down as well,

although this bit of the wall isn't particularly damp.

I mean, whatever, it needs to be investigated.

But a good-sized room.

We like it. It has a nice feel.

And, again, if you took out that entrance hall wall,

it would be massive. Coming through into here,

I mean, you could even contemplate integrating the kitchen

perhaps with that room, making this a sort of...

a utility area, perhaps. That would work really well.

Good news. I might have expected to see a bathroom at the end there.

It isn't, which means the bathroom is upstairs, which is good.

So all in all, look, it's a very big property for that money.

# Getting where you are

# It's what you value. #

So upstairs, what do we find?

Things like little carpets in nice condition, which is good,

the whole house has at least had a coat of paint.

And certainly live in it or rent it out pretty much as it is,

as long as it meets expectations in terms of electricity and gas

and all that kind of stuff. But this is interesting.

This was probably a third bedroom at one point.

It's now the bathroom and loo.

It's good to have it upstairs,

but it doesn't half steal a lot of space from up here.

A three-bedroom property would probably generate you

more rent or possibly fit your lifestyle a bit better.

So how could you get a bathroom and a loo up here,

create an extra bedroom?

I wonder if you move this wall across here a little bit,

sneak it into that little area there.

It's a similar amount of space from the bedroom there

to create a bathroom.

Have that reinstated as a bedroom

and then you've got your three bedrooms and a bathroom.

Now you're going to have to move pipe works

all that kind of stuff. You have to work out how much it's going to cost

and whether it's worth it in terms of payback

if you're renting it out per week, etc,

but at least it's an option.

Coming down, thinking about it, I'd probably leave it as it is,

which means that the whole of that was a complete waste of time,

but at least it's just throwing the options out there into the wind.

# And that's OK

# At least I've got options. #

But at the back of the property, a little courtyard area,

a small bit of ground. Don't you love it?

Even a little patch of just rubbish ground like that,

at certain times of the year you get these beautiful dandelions all over it!

It's made my day. Happy little flowers.

But anyway, out here, a little outbuilding.

Take a look at the roof, check the downpipes and the rainwater goods,

it all seems fine.

But that is the icing on the cake.

Yeah, I can see what you're saying.

The dandelions aren't getting excited about it.

"I know, just give me a break, right!"

# It's a strange kind of love A strange kind of love. #

I know it's a strange one, but some like to stop and smell the roses.

I like to make a wish on a dandelion.

Time to hear from an agent from the auction house

that'll sell this £54,000-guided property.

Is it wishful thinking to hope that the damp is easily sorted?

You would need a damp expert to come and have a look,

or a building surveyor to check it out properly.

From my observations from the front,

and looking at the back of the property,

there is some chimney work that needs doing.

It does seem to be running down that side gable.

That could be due to it needing pointing

or the flashing needing doing.

But, again, take experts' advice on that.

Now I concluded it was probably best to leave it as a two-bed.

But what does the agent think?

Personally, I would leave it as a two-bedroom

and bathroom on the first floor.

It tends to be young couples that buy these properties,

and they don't like having a bathroom on the ground floor,

it's not very popular, so I would keep it as it is.

So as a two-bed, what could this fetch on the sales

and rental market?

Once the property is renovated,

I would say the property would be in the region of £75,000.

From a rental point of view,

we'd be looking at around about £495 to £525 per calendar month.

Well, a bit of damp to sort out.

And you might want to play around with the bathroom layout.

Apart from that though, it's a good solid house

at, I think, a really good attractive guide price.

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

The guide price on this one has been reduced down to £54,000.

Looking for 50.

50 bid, thank you. £50,000.

52, can I see now?

52. 54. 56.

I'll take one if it helps bidding, sir.

57. One, two, as well. 58. 59.

59. 60.

No? At 59,000.

My left then, at £59,000.

60, anyone else?

If not, I'm selling it at £59,000.

For the first time, £59,000.

For the second time...

Third and final time, £59,000.

You bought it, sir. Well done.

Dad Richard, his wife Caroline, and their sons Harvey, nine,

and Oliver, eight,

got the house for £59,000.

They came along with dog Hugo to tell me about this family project,

which they will be doing with the boys' oldest sister, Louise,

who couldn't make it.

The others were keen to tell me what got their tails wagging

about this house.

# It don't matter if we win or lose

# We going to keep the family groove. #

-Richard, Caroline, great to meet you both.

-You too.

-And you.

-Congratulations.

-Thank you.

-Tell me why you wanted to buy this house?

Well, basically, the children - we have three children -

they came into an inheritance

and I've got to invest until they hit a certain age.

So we've seen the programme, property seems the way forward.

So the children own the house through me,

and we'll be renovating it to sell on.

You are investing it wisely, I think.

So how do they feel about that?

There are very excited, actually.

They know all about it. They know they've got an inheritance.

They know it's going into the property,

and they are keen to come and actually help out.

We have a number of years until the boys come to the age.

Louise, not so long, but the boys have got quite a long time,

so hopefully by the time they're old enough they can either carry this on

as a business or they'll have a house each, paid for.

What a great opportunity for the family to give to their children.

It's an investment they can get involved in and it turns out

the kids were a little bit inspired by Homes Under The Hammer.

-Very much so, yeah.

-They do.

-They like the programme.

They've told everybody in the school, haven't they?

They've told... Yeah, but they are excited about helping out

-and joining in anyway, so...

-Yeah.

-Oh, wow!

So was it a joint decision to buy this particular house?

-Yes, it was, actually.

-It was.

-Yeah, it was.

-What did you all like about it?

-Well, there was a number...

There was about five that we had shortlisted and this one came up,

and we seemed to get the first option.

So did the boys enjoy it?

We weren't there very long.

We took their iPads so that they kept their hands down.

And, you know...within 15 minutes it was done.

# Don't mind doing it for the kids. #

Richard and Caroline have established a trust fund for Louise,

Harvey and Oliver. When they come of age,

they'll be able to access their share.

It's worth bearing in mind that they will be taxed

and could incur other fees,

so if you plan an investment like this, you should do

as the family have done -

take independent financial advice and enlist an accountant.

Now to the house. What do they plan to do?

Wait a minute.

Why are we asking Mum and Dad?

Time to quiz the brains of the operation, Harvey on the left,

and his brother, Oliver.

We're going to be redoing a few of the doors.

And we're going to be redoing the back garden, repainting,

taking a few curtains down.

Maybe a few windows might need replacing

or a few cracks need doing.

And I'm also thinking we'll need to do the bathroom.

Well, these guys have been paying attention to the show.

And what do they think will be the best thing about this project?

It's nice to redo the house sometimes. It's nice to decorate it.

Also, for the money, to earn.

Well, honesty is always welcome.

And what about the future?

Do they see themselves as property developers?

I think I might be able to get my kids involved, if I get any.

And what about Oliver?

That'll be three jobs for me, then.

Being a footballer, drawing pictures and doing up houses.

-Yeah.

-Fun.

Well, football and property development worked out very well for

somebody I know, lads.

I don't know how handy he is with drawing, mind you.

Now, I just need a few words with Mum and Dad on the financials.

So, what's the budget going to be for the work?

About 5,000, but there's a contingency, maybe, hopefully,

that we wouldn't have to use, but up to ten?

-Yeah.

-OK?

-And what's the timescale?

-I think two to three months.

-Well, listen, great to meet you both.

-Well done for what you're doing.

-And you, thank you.

-I look forward to seeing how you get on.

-Thank you.

-Thanks ever so much.

This is a family project and it's great to see the kids being inspired

to join in, and they are getting to invest for the future.

Will it lead to the children

becoming property investors in the future?

Will they sort this place out?

Well, we can answer a few of those questions, hopefully,

when we return later in the show.

I think it's time we caught up with our final two purchasers.

Have they been flying through their work at world-record pace?

Or have things ground to a halt? Let's go back and find out.

Time to head back to Great Barr in Birmingham,

where I saw a classic example of a 1930s semi.

It had large bay windows,

with decent-sized, if dated, reception rooms.

And like many houses of this era, it lacked a good-sized kitchen.

But out the back, I had an idea of how to rectify this,

starting with that old lean-to.

It's definitely seen better days.

But it's the right idea to try and create a bit more space.

What I would do, I'd get rid of that completely and have a proper,

brick-built extension.

Something more solid would work wonders here, and Marvin,

who paid 95 grand for this at auction, agreed.

He's a director of a property management company,

but this is his first project alone.

He plans to build an extension here in its place,

and I'm glad he was having a proper look, because he certainly didn't,

pre-auction.

-Did you view this property?

-No, I didn't.

I didn't, but I saw it on the catalogue,

and I thought, Great Barr, wow.

The legal paperwork said it was a leasehold so I gambled on that,

hoping that the price was going to be a little bit lower.

-OK.

-And then work on buying the freehold after.

What are you going to do with it?

The plan is to refurbish it, sorting out the walls.

For fear of not wanting to strip a lot of things and then get into more

surprises, I'll probably keep it as it is because the good thing about

it is, the property doesn't have damp.

-OK, yeah.

-Which is a brilliant thing.

And then also, sort out the garden. We'll leave the apple tree there,

I think, that will probably benefit from the...maybe...

-Yes.

-..maybe making cider, should they want to do that.

Well, now it's time to see if this potential cider house rules.

Three months later, sadly, the tree isn't bearing fruit now,

but at least, as promised, it's still there.

But has that old lean-to survived?

Thankfully not.

Now a solid, fully roofed extension is in its place,

but inside is where you can see a real difference.

The old kitchen has been replaced with a much larger one.

It's incorporated into the extension, which in turn

flows into the rear reception.

Upstairs, you can see more

big changes in the bathroom and separate toilet,

as they've been combined to make a larger family bathroom.

The rest of the upstairs has also been refurbished.

If you thought a simple redecoration was all that was needed up here,

then you'd be wrong.

Behind the wallpaper lurked just the kind of surprise Marvin didn't want.

The kind of snags we hit were obviously

the surprises after peeling the wallpapers.

The builders then suggested and recommended that they needed to

replaster the whole property because really,

it didn't make sense to paint on the old wallpaper.

So we then had to have the walls stripped.

And stripping the walls,

particularly in the top, main bedroom,

when the wallpaper was stripped, we had the ceiling dropping.

So with the ceiling falling because of the rot,

we had to have all the woodwork replaced and the ceiling done new.

Even though it was his first solo property renovation,

Marvin didn't let these setbacks rattle him,

thanks no doubt in large part to the confidence he had

in the team who did the work for him.

I'm particularly pleased with the guys that I've been working with,

especially the builders and the plasterers.

I think they did a phenomenal job. They did it so meticulously.

For them, it wasn't a big job, but it's been done absolutely wonderful.

So it made the stresses a lot more easier because I was dealing with

people that knew exactly what it is that they were doing.

And also, as well, if you have a look at the kitchen,

the layout of the kitchen, they were the ones suggesting that, "Look,

"you could do it this way to maximise space. This is what we will do."

So really, inasmuch as it was beneficial for me, but also,

it was a learning curve. So now, there's quite a lot of things that

I'm quite attuned with because of the experience.

So he's gained a lot from his first solo refurbishment but it's also

taken a lot more money than he first thought.

Initially, he planned to spend 15 grand on the renovation, but it's

actually cost double that and it's taken three months rather than

the original four to six-week timescale.

Well, the timescale was mainly impacted by the fact that when we

started the project, the builders were on holiday.

And I had to wait for them to come back from holiday.

And then obviously, as you start a working relationship with people,

especially with the contractors, they have also got other jobs so

they are fitting you within the other, current jobs that they had.

When you talk about orders such as windows,

it took a bit of time for them to come through.

Then getting the gas engineers, sorting out the heating as well.

So all that impacted on the... on the timescales.

But pretty much pleased that we, we finally got to the end of it all.

Now the property is complete,

it is time to see if all the work has been worthwhile. We asked along

two local estate agents to get their opinions on the house.

Let's start with the agent who saw it last time.

I think the extension's a positive move.

The sort of value it will add is extra area, so a dining area,

or an eating area. It is just somewhere else apart from the

reception rooms where you can go.

The extended kitchen's a really nice touch because

oftentimes, the kitchens around here can be quite small and boxy.

You only really need one wow factor around here to get a house sold

because they're in very short supply and he's definitely got that

with the kitchen. The skylights are a nice touch.

So they are big fans of the changes here, but will that translate into a high rental return for Marvin?

Now the property is complete,

I believe it would achieve around £750 per calendar month.

I think you could find a tenant for this property in just a couple of

days, no longer than that.

And for at least £750 per calendar month.

With the extension taken into account,

maybe even as high as 775 per calendar month.

OK, OK. I was thinking a little bit more than that.

I was thinking around 795 but 775 is just about right, yeah.

Well, that works out at just over a 7% yield, which isn't too bad,

and the agents think that if he was to sell,

he could make anywhere from 16 to 26 grand.

Provided, of course, he buys the freehold for his quoted £14,000.

For a first solo project, it looks like it's all worked out for Marvin.

This has been my baby, really, to be honest,

because it was the first one to be done,

but it's come with its learning curves,

it's come with its trying times but I think the joys and the thrills

have been more outweighing the stresses, to be honest,

because I've been looking forward to seeing the completed article.

Time to alight at Crewe again where I saw a two-bed mid-terrace property.

I gauged it would be perfectly OK, until this stopped me in my tracks.

Straight away I'm noticing something a little bit untoward.

I wonder what's going on down here. That feels, yes, and looks,

in fact the paint coming off there, very damp.

It's on an internal wall, so what do we think about that?

It could be rising damp coming up from there,

it could be coming in from the neighbouring property.

Possibly coming down as well,

although this bit of the wall isn't particularly damp so, whatever,

it needs to be investigated.

A family might prefer three beds compared to the current two

and a family did purchase the house for 59,000.

However, they weren't intending moving in.

Forward-thinking couple Richard and Caroline had invested in this house

on behalf of their three children, using money the kids inherited.

They hoped to use it to secure the futures for Louise, Harvey and Oliver.

You are investing wisely, I think, so how do they feel about that?

They're very excited, actually.

They know all about it. They know they've got an inheritance.

They know that it's going into the property and they're keen to come in and actually help out.

Well, big sister Louise couldn't make it along, but her brothers,

Harvey and Oliver, then nine and eight,

told us what they were looking forward to do.

It's nice to redo the house. Sometimes it's nice to decorate it.

Also, for the money to earn.

Well, they'll have to wait a bit to get their hands on the money,

as it's in a trust for them until they're older.

They were keen to help Mum and Dad turn the house around so they could

profit, so let's see how things have gone six months later.

The newly fitted kitchen is a big improvement.

Next door in the old musty living room,

it's damp-free, as the house has had a damp course treatment

and has been fully decorated.

Upstairs, Richard and Caroline decided to keep the layout as was,

but they still put in a new bathroom suite.

And the two double bedrooms have also had a makeover.

Richard and Caroline should be proud,

because they've done most of the work here themselves.

They of course got in professionals for jobs like gas,

electrics and damp.

But they also had two extra pairs of

hands from their sons, Harvey and Oliver.

They've really enjoyed it. When they've wanted to be involved,

they'd come in and knock a few nails in or painting, but apart from that,

they'd go off and play when they've had enough, and the same with the dog!

SHE LAUGHS

We had a bit of a problem with the dog.

He was sleeping on the mat

and we needed him off but he wouldn't get off,

so that took longer.

Well, although Hugo might have got in the way a bit,

I don't think he PAWSED progress on the project on his own.

The hardest part about a project such as this is when you already

have a busy life previously, you overestimate how much time

you have spare and underestimate how long everything takes.

Add that into the boys' clubs, the football,

the kung fu, the swimming, life in general, running a business.

It did take its toll and that's why the time actually doubled.

We did hope to get it done within three and it ended up being six months,

but we wanted to wait until we were happy with it.

Are Harvey and Ollie also pleased with the finished house?

My favourite bit is the kitchen because, basically,

it's just been redone, like, the whole thing nearly.

My favourite bit is the bathroom because I said to my mum,

"Shall we try French grey?"

I liked it how it was, so we kept it.

Ooh la la, a French grey, Ollie!

It certainly works in this tastefully decorated bathroom, that's for sure.

Tres bien. Richard and Caroline's original budget

was between 5,000 and 10,000, but have they managed to stick to it?

We've come in under budget.

Don't know the exact figure but it's approximately 3,000 to 3,350.

That's because we effectively

were able to do all of the work ourselves,

save for having the gas fire removed and having the damp sorted.

We allowed a contingency for the damp,

thinking it was a bigger problem than it was, but we were delighted

that that was actually much smaller,

so we saved on the trades but not ourselves.

That's a nice little saving. As this house was already bought with their

children's future in mind, every penny counts.

The plan is still to sell this on for profit and then invest the money

into the next project.

Richard and Caroline are certainly up for it, but are the boys?

-Definitely.

-Yeah, I would actually do another house.

It's been quite fun.

Erm, yeah, it's really fun.

But I want to have a holiday, then come back and then do another one.

-Obviously we'd be doing that.

-Well, I hope so.

Well, before you pack your bags, boys,

first we need to get the opinions of a couple of estate agents.

First, the agent who saw it before.

First impressions are, yeah, really good.

Internally, it's had a lick of paint, it's had a damp course done.

It was quite damp before so that's one big problem sorted out.

New kitchen, new bathroom,

so it's nice and fresh and ready for an investor maybe to rent out or

even a young couple, first-time buyers.

First impressions of the house are very good.

It's a very spacious terraced house.

They've upgraded it to a really nice standard.

The wooden work surfaces are really popular and very good quality

and the bevelled edge tiles in the kitchen look very, very smart.

All good, but has it been a smart investment of their children's

inheritance? What kinds of sale figures could they expect,

having invested a total of £62,350?

If the property was to go on to the market,

I would suggest an initial asking price of £75,000.

I feel the property would sell for around £80,000 and should go on to

the market at around 85 as an asking price.

That's roughly about the area we thought it was going to be.

-Wasn't it?

-It was for you.

I thought a bit higher, but there we are.

There is a ceiling, which is why... be careful with your spending.

Assuming they got that £80,000 figure,

it would mean a potential profit of £17,650 minus any taxes and fees,

which is not bad at all for a first project.

Not to mention a successful investment for the kids,

and it looks like that much-wanted holiday is on the cards.

Yes, we're going to have a holiday, I think, have a break and then, yes,

we do want to do it again.

We really enjoyed it and we've been a good family team.

Exactly, come back reinvigorated after the holiday, hungry for more.

Yeah!

Well, the world of property is never dull or boring, but you do need to

know what you're doing, so I hope we've given you some insight into that world.

Yes, hopefully you'll come back and join us for more stories that

are successful and not so successful here on Homes Under The Hammer.

-Goodbye for now.

-See you.