0:00:02 > 0:00:05The world of property provides an ever-changing and challenging
0:00:05 > 0:00:08environment, which really fascinates me and Dion.
0:00:08 > 0:00:12Yes, but there's one key principle - get it for the best price possible.
0:00:12 > 0:00:14But that's not always as easy as it seems.
0:00:14 > 0:00:18No, but one way you could stack the odds in your favour is by going to
0:00:18 > 0:00:20your local auction house.
0:00:45 > 0:00:48Buying at auction is a very popular way to approach things.
0:00:48 > 0:00:53Every month, millions and millions of pounds is spent at auction.
0:00:53 > 0:00:56So, with all that auction action going on,
0:00:56 > 0:00:59what inspired the buyers on today's show?
0:01:00 > 0:01:02I'm in Newcastle-under-Lyme
0:01:02 > 0:01:05and the decor in this three-bed house takes me back to my youth.
0:01:05 > 0:01:09Wow. That wallpaper is wacky, wacky, wacky.
0:01:09 > 0:01:14There's less of the zigzags and more of the thin blue line at this former
0:01:14 > 0:01:16police office in Dudley.
0:01:16 > 0:01:18The address?
0:01:18 > 0:01:20999 Letsby Avenue!
0:01:20 > 0:01:24And there's dated decor aplenty for Lucy at this four-bed house in
0:01:24 > 0:01:26Berkhamsted...in a good way.
0:01:26 > 0:01:29Cornicing, coving, lovely, lovely stairs.
0:01:29 > 0:01:31Wow.
0:01:31 > 0:01:35All these properties have been sold at auction, and we'll find out who
0:01:35 > 0:01:38bought them and what they paid when they went under the hammer.
0:01:43 > 0:01:46This is Newcastle-under-Lyme in Staffordshire.
0:01:46 > 0:01:49There was, of course, a castle
0:01:49 > 0:01:53and it would have been new in the 12th century, when it was built.
0:01:53 > 0:01:55Under-Lyme probably refers to the Forest of Lyme
0:01:55 > 0:01:59that supposedly covered the area in medieval times.
0:01:59 > 0:02:04It's been a market town for over 800 years and still today the market is
0:02:04 > 0:02:06open six days a week.
0:02:06 > 0:02:09We've headed north to the village of Chesterton.
0:02:09 > 0:02:12Well, just ten minutes' drive from the centre of Newcastle-under-Lyme
0:02:12 > 0:02:14is the property I'm here to see.
0:02:14 > 0:02:21Ex-local-authority house, guide price £80,000, three-bed, detached,
0:02:21 > 0:02:24but with a strange sort of space at the side of it.
0:02:24 > 0:02:25Hmm.
0:02:30 > 0:02:33So, what have we got? A nice big entrance area.
0:02:33 > 0:02:35Straight away it looks like it could do with a bit of
0:02:35 > 0:02:37modernisation.
0:02:37 > 0:02:39Things like a new banister on there.
0:02:39 > 0:02:43And just...I don't know... but it's fine.
0:02:43 > 0:02:46Nice little storage area under the cupboard there. And...wow.
0:02:48 > 0:02:50Living room to the right-hand side
0:02:50 > 0:02:52and that wallpaper is wacky, wacky, wacky.
0:02:52 > 0:02:56It's like those old televisions, when they went slightly wrong.
0:02:56 > 0:02:58That does strange things to your eyes!
0:02:58 > 0:03:00But it's a good-sized front lounge,
0:03:00 > 0:03:02a bit of storage space under the stairs there.
0:03:02 > 0:03:04And then through to the rear of the property,
0:03:04 > 0:03:07a little sort of pathway through there
0:03:07 > 0:03:10to a sort of utility area and an old larder in there.
0:03:10 > 0:03:13I mean, that's exactly the sort of thing you get
0:03:13 > 0:03:15in these old or ex-authority houses.
0:03:15 > 0:03:18All these walls - no stud partitions there.
0:03:18 > 0:03:20It's all solid brick and that's really good.
0:03:20 > 0:03:22And also, you get space.
0:03:22 > 0:03:24This is the kitchen. It's a real family kitchen,
0:03:24 > 0:03:27clearly in need of new units and all that kind of stuff.
0:03:27 > 0:03:32But enough space for a kitchen table there, and it's good,
0:03:32 > 0:03:36it's a great start.
0:03:36 > 0:03:40# So far, so good... #
0:03:43 > 0:03:47So, upstairs, what delights are in store?
0:03:47 > 0:03:49Lots of light flooding onto the landing from the little window,
0:03:49 > 0:03:53which is good. You've got your bathroom and loo up here.
0:03:53 > 0:03:54The bathroom suite!
0:03:54 > 0:03:58Well, definitely a little bit dated.
0:03:58 > 0:04:00New suite in there - white, lovely, new -
0:04:00 > 0:04:01it would be absolutely gorgeous.
0:04:01 > 0:04:04You've got three bedrooms,
0:04:04 > 0:04:07boxroom there, and then through into the second large bedroom.
0:04:07 > 0:04:10And again, really well proportioned.
0:04:10 > 0:04:13In need of, obviously, modernisation.
0:04:13 > 0:04:15But lots of space to work with.
0:04:15 > 0:04:17A few cracks here and there.
0:04:17 > 0:04:21I don't think there's anything untoward. Yeah, great little house.
0:04:21 > 0:04:24My love affair with ex-local-authority houses
0:04:24 > 0:04:28might be clouding my thinking process when it comes to the cracks.
0:04:28 > 0:04:32This area does have a mining history and, come to think of it,
0:04:32 > 0:04:35maybe we should have another look outside,
0:04:35 > 0:04:40because it's not what's there that worries me, it's what's not there.
0:04:40 > 0:04:45When you come out here you sort of are reminded of something I noticed
0:04:45 > 0:04:47when I walked up to the property.
0:04:47 > 0:04:50Originally, this would have been a semidetached,
0:04:50 > 0:04:54and yet half the property, the one at the side of it there,
0:04:54 > 0:04:59has been knocked down at some point. Now, that poses a lot of questions,
0:04:59 > 0:05:03uh...why...being the most obvious one.
0:05:03 > 0:05:05Is it something ominous?
0:05:05 > 0:05:09# Here comes that sinking feeling... #
0:05:09 > 0:05:13It certainly would be worth trying to find out why the other house was
0:05:13 > 0:05:15demolished. But it's not necessarily a bad thing,
0:05:15 > 0:05:19as the work should have been carried out in compliance with the council's
0:05:19 > 0:05:23building regulation department to make sure that this property is safe
0:05:23 > 0:05:27and the former party wall, which is now the new external wall,
0:05:27 > 0:05:30is watertight and properly insulated.
0:05:30 > 0:05:34The biggest plus is, of course, that we now have a detached house,
0:05:34 > 0:05:39which can only make it more valuable and attractive to buyers.
0:05:39 > 0:05:42We've asked along an agent from the auction house who sold it to get his
0:05:42 > 0:05:44opinion on the house.
0:05:47 > 0:05:50First impressions are that the property needs a full renovation,
0:05:50 > 0:05:55redecoration throughout, and generally upgrading.
0:05:55 > 0:05:58And once all the work was complete, what could the house,
0:05:58 > 0:06:01guided at £80,000, be sold for?
0:06:01 > 0:06:04I would expect the property to achieve somewhere in the region of
0:06:04 > 0:06:07£130,000.
0:06:07 > 0:06:11And for the long-term investor, what about the rental market?
0:06:11 > 0:06:12Once renovated,
0:06:12 > 0:06:15the property would achieve on the rental market
0:06:15 > 0:06:20somewhere in the region of £600 to £625 per calendar month.
0:06:21 > 0:06:23Well, it's a good, solid house,
0:06:23 > 0:06:27with lots of space for a relatively low guide price.
0:06:27 > 0:06:30Yeah, an interesting opportunity.
0:06:30 > 0:06:33Let's see who fancied it when it went under the hammer.
0:06:34 > 0:06:37Guide price on this has been increased.
0:06:37 > 0:06:39What shall I say? 70 to start.
0:06:39 > 0:06:42Got to be that, I think. Looking for 70 to get it going.
0:06:42 > 0:06:4470 bid. Thank you. At £70,000.
0:06:44 > 0:06:47Looking for 72 now. At 70,000.
0:06:47 > 0:06:49Looking for 72.
0:06:49 > 0:06:5272. 74. 76.
0:06:52 > 0:06:55I'll go in ones, if it helps. The bid's at £76,000.
0:06:55 > 0:06:5777. At 77.
0:06:57 > 0:06:5978. At 78.
0:06:59 > 0:07:0179.
0:07:01 > 0:07:0380?
0:07:03 > 0:07:05Half. He's saying 79 and a half.
0:07:05 > 0:07:0680. Another half?
0:07:06 > 0:07:09No. 80,000 on my right, then.
0:07:09 > 0:07:11At 80,000. Another 500 anywhere else?
0:07:11 > 0:07:14If not, £80,000 for the first time.
0:07:14 > 0:07:17£80,000 for the second time.
0:07:17 > 0:07:21Third and final time, £80,000.
0:07:21 > 0:07:23Your lot, sir, well done.
0:07:23 > 0:07:27The successful bidder, who paid bang on the guide price at 80,000,
0:07:27 > 0:07:28was Martin.
0:07:28 > 0:07:33Martin is the director of a road marking company and does property
0:07:33 > 0:07:34development as a hobby.
0:07:34 > 0:07:38I met up with him to find out what he had planned for this interesting
0:07:38 > 0:07:40former semidetached property.
0:07:40 > 0:07:43- Martin, good to meet you. - And you.- Congratulations.
0:07:43 > 0:07:46- Thank you.- Tell me why you wanted to buy this house.
0:07:46 > 0:07:48I owned some land next to it...
0:07:48 > 0:07:50- Literally next to it? - Yeah, next door.
0:07:50 > 0:07:54My intention is to knock this one down and build a block.
0:07:54 > 0:07:56- Wow!- A block of four.
0:07:56 > 0:07:58Right. Have you got any experience of that in this area or...?
0:07:58 > 0:08:03Yeah, I bought a house on the corner behind us
0:08:03 > 0:08:07and I got planning permission to build three in the garden there.
0:08:07 > 0:08:10I bought a ransom strip off of this house,
0:08:10 > 0:08:11so as I could put the gardens in.
0:08:11 > 0:08:14Just in case anyone doesn't know, what is a ransom strip?
0:08:14 > 0:08:19Basically, I needed that piece of land to get planning so as I...
0:08:19 > 0:08:23I had to move the houses back off the road to get off-road parking.
0:08:23 > 0:08:27- Right.- So now my intention is to just build this block here,
0:08:27 > 0:08:28similar to what I've done there.
0:08:28 > 0:08:31And it's called a ransom strip because it intrinsically
0:08:31 > 0:08:34wasn't worth as much as you had to pay for it.
0:08:34 > 0:08:36That's right, yeah.
0:08:36 > 0:08:39Worth much more to you than its intrinsic value.
0:08:39 > 0:08:43Yes. It keeps a nice little parcel of rentable properties together then
0:08:43 > 0:08:45because I'll have eight in the same block, if you like.
0:08:45 > 0:08:48- Right, and you keep them all... - Yeah.- ..and rent them all out.
0:08:48 > 0:08:50Yeah, that's my intention.
0:08:50 > 0:08:53How did you settle on this little area?
0:08:53 > 0:08:58It was a family friend that was living in the first house and she
0:08:58 > 0:08:59was looking to move on.
0:08:59 > 0:09:03Thought that there was a possibility of getting planning in the garden.
0:09:03 > 0:09:05I bought it from her.
0:09:05 > 0:09:07She stayed for another two years
0:09:07 > 0:09:10whilst I was trying to get planning and then she moved on.
0:09:10 > 0:09:13And it just...by luck, really.
0:09:13 > 0:09:15Martin is clearly a patient man.
0:09:15 > 0:09:20He's been buying houses and bits of land here since 2008.
0:09:20 > 0:09:24He's had his eye on this house for three years.
0:09:24 > 0:09:26Meanwhile, with the other parcel of land,
0:09:26 > 0:09:29he's spent two years negotiating with the planning department to be
0:09:29 > 0:09:32allowed to build three properties there.
0:09:32 > 0:09:35Now, of course, he'll have to do it all over again for this part of the
0:09:35 > 0:09:40development, because he wants to build four three-bed houses
0:09:40 > 0:09:42on this and next door's plots.
0:09:42 > 0:09:44So you own the bit of land at the side.
0:09:44 > 0:09:46What do you know about what's happening?
0:09:46 > 0:09:50It's obviously quite interesting that this was probably a semidetached at one point, was it?
0:09:50 > 0:09:51Yeah, I believe that going back...
0:09:51 > 0:09:56I'm not sure exactly when it happened but there was a fault that ran through from the mining era.
0:09:56 > 0:10:00I believe it was like a drift run all the way through.
0:10:00 > 0:10:02So this was knocked down
0:10:02 > 0:10:05and a couple more in the local area.
0:10:05 > 0:10:07In case you're wondering what was meant by drift,
0:10:07 > 0:10:11that's a mining term for a near horizontal passageway
0:10:11 > 0:10:13following the coal.
0:10:13 > 0:10:16So it suggests that the ground could of course be subject to movement.
0:10:16 > 0:10:20A mine report is a must, I reckon.
0:10:20 > 0:10:24Most people would probably hear that and run a mile,
0:10:24 > 0:10:25as opposed to thinking,
0:10:25 > 0:10:28I'll buy more properties right there on top of this drift.
0:10:28 > 0:10:31Yeah, I think nowadays with how foundations have come on,
0:10:31 > 0:10:35it's just a matter of putting a ring beam foundation down...
0:10:35 > 0:10:36What's that?
0:10:36 > 0:10:40Not really a floating raft but a ring beam around it,
0:10:40 > 0:10:44it has metalwork in it. So it holds it all together.
0:10:44 > 0:10:48- Have you made noises with the planners over that?- No, not yet.
0:10:48 > 0:10:53I don't actually believe that it's going to be too much of an issue
0:10:53 > 0:10:56- to get planning here.- Why?- Because there was a property there before.
0:10:56 > 0:10:59And also there's a property here now.
0:10:59 > 0:11:01Martin does sound confident.
0:11:01 > 0:11:04He also thinks, although he wants to build four houses here,
0:11:04 > 0:11:08the local need and demand for housing would go in his favour too.
0:11:08 > 0:11:12Just as ever, he's got to be patient.
0:11:12 > 0:11:16Probably take four or five months to get planning.
0:11:16 > 0:11:19Hopefully, fingers crossed, there won't be too many issues with that.
0:11:19 > 0:11:24And then another 6 to 8 months to get them built.
0:11:24 > 0:11:28So, what's the construction costs for this?
0:11:28 > 0:11:31Well, I've paid 80,000 for the house,
0:11:31 > 0:11:33but on the night of the sale, on the addendum,
0:11:33 > 0:11:36there was a covenant that only one property could be built here
0:11:36 > 0:11:41- if it's knocked down.- Oh, right. - Which seemed a bit strange.
0:11:41 > 0:11:44So I paid 80,000 for the plot
0:11:44 > 0:11:50and then £17,000 to get the covenant lifted.
0:11:50 > 0:11:53- So...- £17,000 extra?
0:11:53 > 0:11:55- Yeah.- To enable you to do what you wanted to do?- Yeah.
0:11:55 > 0:11:59The plot, if you like, and to knock this town is going to stand me at 110,000.
0:11:59 > 0:12:03- OK.- And I'm anticipating putting a block of four up for 200,000.
0:12:03 > 0:12:06- It's just a straight through... - 50 each.- ..unit, yeah.
0:12:06 > 0:12:08Right. So I'm looking at...
0:12:08 > 0:12:12They're going to be about £75,000 to £80,000 and they should be...
0:12:12 > 0:12:16They are valued at about 100,000, 110,000.
0:12:16 > 0:12:20So, all good on this?
0:12:20 > 0:12:24What's your biggest concern? Any major potential hiccups?
0:12:24 > 0:12:26Planning, possibly.
0:12:26 > 0:12:30But I'm fairly confident that it won't be too much of an issue.
0:12:30 > 0:12:34Right. And then plans for any more? Or will that be?
0:12:34 > 0:12:37You never know. Keep your eyes open for different opportunities.
0:12:37 > 0:12:39- Yeah, brilliant. Well, lovely to meet you.- And you.
0:12:39 > 0:12:41Good luck with it.
0:12:41 > 0:12:45There you go. That's a turn-up for the books, isn't it?
0:12:45 > 0:12:49The house will probably be knocked down to make room for four
0:12:49 > 0:12:50new ones. Obviously,
0:12:50 > 0:12:53lots of hurdles to jump over before that actually happens.
0:12:53 > 0:12:58But it just shows, thinking outside the box sometimes delivers
0:12:58 > 0:13:02some very interesting opportunities. How will it all turn out?
0:13:02 > 0:13:05Find out later in the show.
0:13:09 > 0:13:13Dudley in the West Midlands was originally a market town
0:13:13 > 0:13:17and one of the birthplaces of the Industrial Revolution.
0:13:17 > 0:13:21However, Dudley has reinvented itself as a tourist destination,
0:13:21 > 0:13:25with fantastic attractions like the Black Country Living Museum,
0:13:25 > 0:13:28Dudley Castle and Dudley Zoo.
0:13:28 > 0:13:32So, will the property I'm here to see in nearby Netherton have people
0:13:32 > 0:13:34flocking to buy it?
0:13:36 > 0:13:40So, just three miles outside the centre of Dudley is the lot I'm here to see.
0:13:40 > 0:13:43Now, it's something just a little bit different today
0:13:43 > 0:13:46for Homes Under The Hammer. It's former police offices.
0:13:46 > 0:13:49Semidetached building, over two floors,
0:13:49 > 0:13:52with a guide price of £80,000 to £90,000.
0:13:52 > 0:13:54The address?
0:13:54 > 0:13:56999 Letsby Avenue!
0:13:56 > 0:13:58SIREN WAILS
0:13:58 > 0:13:59Not really.
0:14:01 > 0:14:05Now, stand by, there's going to be a lot of police puns in next few
0:14:05 > 0:14:07sentences. Apologies.
0:14:09 > 0:14:11Not bad.
0:14:12 > 0:14:15We are in through the back door, straight into the kitchen.
0:14:15 > 0:14:16And it's...
0:14:16 > 0:14:19It's a big kitchen. It's a good-sized kitchen.
0:14:19 > 0:14:23The kitchen cupboards look OK, work OK.
0:14:23 > 0:14:26Surfaces look fine as well.
0:14:26 > 0:14:28You would definitely be able to keep this.
0:14:28 > 0:14:31You'd have to obviously repaint and re-tile.
0:14:31 > 0:14:35Put some flooring down. But not bad.
0:14:35 > 0:14:38There's the stairs up to the first floor
0:14:38 > 0:14:42and we are into this large dual-aspect...
0:14:42 > 0:14:45what I see as a nice big lounge, dining area,
0:14:45 > 0:14:48but you've got signs of office everywhere.
0:14:48 > 0:14:49You've got the sockets there.
0:14:49 > 0:14:53You've got the office lighting, all the cables are in trunking,
0:14:53 > 0:14:57but it really does lend itself to put double doors
0:14:57 > 0:15:00just off the dining room out into the back garden.
0:15:00 > 0:15:02Let's check out the rest of this place.
0:15:02 > 0:15:07The trunking and network cable installation would no doubt be a
0:15:07 > 0:15:10huge attraction to someone interested in computer games,
0:15:10 > 0:15:13but if left in, I think it would restrict the market appeal.
0:15:13 > 0:15:16In fact, it's not only the aesthetics here
0:15:16 > 0:15:18that need de-officing.
0:15:18 > 0:15:20You might need a change of use
0:15:20 > 0:15:23converting this back into residential premises,
0:15:23 > 0:15:26so check with the local planners first.
0:15:26 > 0:15:29OK, onto the first floor.
0:15:29 > 0:15:31And what have we got, then?
0:15:31 > 0:15:36We've got a toilet there and another toilet by the side.
0:15:36 > 0:15:38And this is why...
0:15:39 > 0:15:43One for the ladies and one for the gents.
0:15:43 > 0:15:46Knock that wall down, make a nice big family bathroom,
0:15:46 > 0:15:48got loads of space to do that there.
0:15:48 > 0:15:51And your three bedrooms, you've got one at the front of the property,
0:15:51 > 0:15:54a real good-sized bedroom there.
0:15:54 > 0:15:56More of a box bedroom at the end.
0:15:56 > 0:15:59And in here, we've got a shower.
0:15:59 > 0:16:02So if you've got the family bathroom already,
0:16:02 > 0:16:06you don't really need that, so you could easily...
0:16:06 > 0:16:10There you go. You could easily knock down that wall, and you'd have three
0:16:10 > 0:16:15good-sized bedrooms, family bathroom - job done.
0:16:16 > 0:16:20A floor-level vent suggests to me that this place was heated by
0:16:20 > 0:16:23a duct warm system, which were common back in the '70s.
0:16:23 > 0:16:26But I'm guessing it's not in good nick,
0:16:26 > 0:16:29judging by the amount of radiators scattered about.
0:16:29 > 0:16:32So the central-heating system is on the to-do list.
0:16:32 > 0:16:36And the next thing on the to-do list might be to get a mower out.
0:16:39 > 0:16:43As you can see, it is a little bit overgrown out the back here,
0:16:43 > 0:16:46but there is loads of space and it wouldn't take long,
0:16:46 > 0:16:48I think possibly a weekend,
0:16:48 > 0:16:52to get this sorted into a really nice family back garden.
0:16:52 > 0:16:56You've got all that space in there, all that space out here,
0:16:56 > 0:16:59and it's a bit of a sun trap as well.
0:16:59 > 0:17:01What more could you ask for?
0:17:03 > 0:17:06Well, how about an agent from the auction house that sold the property
0:17:06 > 0:17:09to give us his valuations and opinions?
0:17:10 > 0:17:14I think the property would appeal to a family to move into or for an
0:17:14 > 0:17:17investor to do it up and rent it out to another family.
0:17:17 > 0:17:20But I think, ultimately, it's a family home.
0:17:20 > 0:17:23So, once refurbished as a family home with central heating,
0:17:23 > 0:17:25what would it be worth?
0:17:27 > 0:17:31Once refurbished, I'd expect the property to achieve a sales figure
0:17:31 > 0:17:33of 125,000 to 130,000.
0:17:33 > 0:17:35As a rental, I'd expect it
0:17:35 > 0:17:37to achieve £550 to £600 per calendar month.
0:17:38 > 0:17:42So, there are loads of obvious signs of this building's past
0:17:42 > 0:17:45as a police office. Now, if you look beyond that,
0:17:45 > 0:17:49I can see loads of potential for this place to be a really nice family home.
0:17:49 > 0:17:53Let's see who spotted that potential when it went under the hammer.
0:17:55 > 0:17:58Unfortunately, we didn't capture the bidding for this lot,
0:17:58 > 0:18:01but the semi sold for 86 grand to Angela.
0:18:03 > 0:18:08She works as a chemical engineer in the oil and gas industry and she has
0:18:08 > 0:18:11travelled from her home in Woking to meet me back at her new purchase.
0:18:11 > 0:18:15- Angela, nice to meet you. - Hi, nice to meet you.
0:18:15 > 0:18:18- Congratulations.- Thank you. - This is a former police office.
0:18:18 > 0:18:21- Yes.- It's not in bad NICK.
0:18:21 > 0:18:24- No.- Did you get it for a STEAL?
0:18:24 > 0:18:26It wasn't bad, it wasn't bad.
0:18:26 > 0:18:28I apologise. I had to get you out there.
0:18:28 > 0:18:33Joking aside, how did you find this and why did you like it?
0:18:33 > 0:18:37It was on a list of potentials, quite a long list,
0:18:37 > 0:18:40- and it was at the bottom.- Really?
0:18:40 > 0:18:43It was because I didn't actually get to see the inside.
0:18:43 > 0:18:46- I came up for a couple of days... - Are you glossing over some things?
0:18:46 > 0:18:49- Did you view the property? - I viewed the outside.
0:18:49 > 0:18:53Just not the inside. The rest of the properties I had a five-page
0:18:53 > 0:18:57checklist that I went through but couldn't get in to see this one.
0:18:57 > 0:19:01It ticked the boxes for price and the type of work I'd have to do and things like that.
0:19:01 > 0:19:03How are you going to manage it, then?
0:19:03 > 0:19:05You are down south and this is up north.
0:19:05 > 0:19:11Come up and stay a couple of nights at a time, get the inflatable bed out.
0:19:11 > 0:19:13There's a lot of rooms in here to stick it.
0:19:13 > 0:19:16There's plenty of room and plenty of toilets, so it's fine.
0:19:16 > 0:19:20So is it something that you are going to get involved in if you are going to come and stay?
0:19:20 > 0:19:22I was planning to do a lot of the work myself but I now
0:19:22 > 0:19:24might have to go back to work.
0:19:24 > 0:19:27If I'm not working, then I'll do quite a lot of the work.
0:19:27 > 0:19:31I'll do plumbing and tiling and painting, that sort of thing.
0:19:31 > 0:19:34Oh, so you actually get your hands dirty, get stuck in?
0:19:34 > 0:19:38- Yeah, definitely.- So why did you get into the property world, then?
0:19:38 > 0:19:42Well, I had a flat that I had rented out and it needed doing up so I
0:19:42 > 0:19:44renovated and quite enjoyed it.
0:19:44 > 0:19:47Work was a bit slow so I thought I needed something else to do.
0:19:47 > 0:19:51And you found this one. Right, it's yours.
0:19:51 > 0:19:53- It is.- What are you going to do with it?
0:19:53 > 0:19:56Turn it back into a nice family home, hopefully.
0:19:56 > 0:20:00It has got a commercial feel, it has got an office feel about it.
0:20:00 > 0:20:03I'm just going to strip it all back,
0:20:03 > 0:20:07probably just skim all the walls, repaint, re-carpet,
0:20:07 > 0:20:10put some central heating in, new windows everywhere.
0:20:10 > 0:20:14- Yeah.- And knock a few walls through to make the bathrooms
0:20:14 > 0:20:16- into family bathrooms again.- OK.
0:20:16 > 0:20:19So down here, what are you going to do here?
0:20:19 > 0:20:23Down here, possibly knock through from the kitchen into the dining area.
0:20:23 > 0:20:28- I haven't quite decided on that one yet.- That is a decent-sized kitchen,
0:20:28 > 0:20:31- isn't it?- It's a good-sized kitchen, it doesn't need it and I am not sure
0:20:31 > 0:20:34I want any extra building work if I don't have to,
0:20:34 > 0:20:37so I'm in two minds about that.
0:20:37 > 0:20:40Now, we do encourage open-plan living here on this show,
0:20:40 > 0:20:43but you do have to bear in mind the downsides...
0:20:44 > 0:20:48..cooking smells, not to mention the noise from the washing machine,
0:20:48 > 0:20:51dishwashers and the clattering of the dishes.
0:20:52 > 0:20:55And noisy kids of course, if you've got any.
0:20:55 > 0:20:58And that can disturb the Sunday afternoon footy.
0:20:58 > 0:21:02So how many bedrooms would you like when it's all completed?
0:21:02 > 0:21:04We will have three upstairs
0:21:04 > 0:21:08and then this extension can be, potentially, a fourth bedroom.
0:21:08 > 0:21:11It would be fine if you had a teenager or elderly parents
0:21:11 > 0:21:16and they could have their own nice room with an en suite and separate
0:21:16 > 0:21:21access if required as well, so it would make quite a good addition.
0:21:21 > 0:21:25Flexible family space that allows teenagers to make as much noise
0:21:25 > 0:21:28or mess separately can be a good thing.
0:21:28 > 0:21:31It certainly warrants thinking about.
0:21:31 > 0:21:34And there is more where that came from.
0:21:34 > 0:21:36So what's the...
0:21:36 > 0:21:39I'd normally say budget, but what's the BILL going to be?
0:21:39 > 0:21:42You can laugh, if you want.
0:21:42 > 0:21:44Sorry, carry on.
0:21:44 > 0:21:47I am hoping to do it for about 15,000.
0:21:47 > 0:21:52With all the windows needing replacing and central heating going in, it might go above that.
0:21:52 > 0:21:55Where do you think the majority of that will go?
0:21:55 > 0:21:57The bulk is going to be on the windows and the central heating and
0:21:57 > 0:22:01obviously flooring is going to be a fair dent in that as well.
0:22:01 > 0:22:07But I can do all the painting myself and tiling and things like that,
0:22:07 > 0:22:11and my friend is going to do the bulk of the ripping everything out
0:22:11 > 0:22:13and building some stud walls and things.
0:22:13 > 0:22:16Good man. The windows will cost you a few quid because there are
0:22:16 > 0:22:21- not only a lot of them, they're big as well.- There are lots of big windows.
0:22:21 > 0:22:24The place is lovely and light and airy, I love the big window
0:22:24 > 0:22:27on the landing, but it's a bit pointless
0:22:27 > 0:22:31apart from it being that big.
0:22:31 > 0:22:34Yes, so I'll have to get a few quotes in
0:22:34 > 0:22:37and hope that somebody comes up trumps on that.
0:22:37 > 0:22:39Angela is hoping to get this place licked into shape in
0:22:39 > 0:22:43three to four months, depending on how often she can be there.
0:22:43 > 0:22:45Her plan is to sell on.
0:22:45 > 0:22:48She's already got a price in her head based on
0:22:48 > 0:22:52thorough and extensive research. Good girl.
0:22:52 > 0:22:55The one next door is for sale.
0:22:55 > 0:22:57Is it the same sort of size?
0:22:57 > 0:22:59It's the other half of the semi.
0:22:59 > 0:23:02- Fantastic.- It's got a slightly different extension on it
0:23:02 > 0:23:05- but it's pretty comparable. - What kind of spec are you going for?
0:23:05 > 0:23:07- Middle, top or bottom? - Middle, really.
0:23:07 > 0:23:12I don't think the area warrants top spec but people like a nice-looking
0:23:12 > 0:23:15kitchen and you can spend a bit of money on nice taps and things
0:23:15 > 0:23:17- to make it look better. - In general, when you go to a house,
0:23:17 > 0:23:19- the kitchen is the one you look for, isn't it?- Yes.
0:23:19 > 0:23:21Nice clean bathrooms, clean lines.
0:23:21 > 0:23:24Kitchens are expensive so people don't want to have to change them
0:23:24 > 0:23:28so if you can get a kitchen that most people will like,
0:23:28 > 0:23:32it doesn't have to be brilliant, it just has to be good quality.
0:23:32 > 0:23:36And will you be going back to the auction rooms very soon?
0:23:36 > 0:23:38Oh, as soon as this one goes, I think I will be back in there.
0:23:38 > 0:23:40- Really?- As long as I don't make a loss.
0:23:40 > 0:23:42You are going to see how this one goes?
0:23:42 > 0:23:46Yeah, I'll see how this one goes but I'll be keeping an eye out for anything suitable in the meantime.
0:23:46 > 0:23:50So will you be looking up in the Midlands again for more properties?
0:23:50 > 0:23:53Hopefully, next time, I'll find somewhere a bit closer to home.
0:23:53 > 0:23:54Yes, that would help.
0:23:54 > 0:23:57This is about the closest I could get on my budget.
0:23:57 > 0:23:59Angela, I wish you all the best.
0:23:59 > 0:24:01- Thank you very much.- Good luck to you and I hope it all works out.
0:24:01 > 0:24:03Thank you very much.
0:24:03 > 0:24:07Angela didn't view the property but I think she's got out of JAIL here.
0:24:07 > 0:24:10After three to four months' HARD LABOUR,
0:24:10 > 0:24:12will this place still be an ARRESTED development?
0:24:12 > 0:24:15I'm so sorry, so many puns.
0:24:15 > 0:24:18Come back later in the show and you can find out how she gets on.
0:24:18 > 0:24:20I'm going back INSIDE.
0:24:22 > 0:24:27Still to come - Lucy is through with this layout in Berkhamsted.
0:24:27 > 0:24:33Here, and through here is the bathroom and the toilet.
0:24:34 > 0:24:37And we will find out if Angela gets off with
0:24:37 > 0:24:40GOOD Homes Under The Hammer BEHAVIOUR.
0:24:40 > 0:24:43All in all, I'm happy enough with the budget.
0:24:45 > 0:24:49It was just north of Newcastle-under-Lyme in Staffordshire,
0:24:49 > 0:24:51in the village of Chesterton,
0:24:51 > 0:24:56where we first saw a three-bed property that brought new meaning to the term "detached house".
0:24:56 > 0:25:00There's something I noticed when I walked up to the property.
0:25:00 > 0:25:03Originally, this would have been a semidetached,
0:25:03 > 0:25:07and yet half the property, the one at the side of it there,
0:25:07 > 0:25:12has been knocked down at some point. Now, that poses a lot of questions.
0:25:13 > 0:25:17Why, being the most obvious one.
0:25:17 > 0:25:19Is it something ominous?
0:25:19 > 0:25:23# But that's just the half of it... #
0:25:29 > 0:25:34And it turned out there was a slightly ominous reason that one half of this,
0:25:34 > 0:25:38which would have been a semi, had been detached and flattened.
0:25:38 > 0:25:43It was due to the unstable ground from mining in the area,
0:25:43 > 0:25:45which is something that would concern most people,
0:25:45 > 0:25:48but it didn't bother property hobbyist Martin,
0:25:48 > 0:25:50who snapped it up for 80,000 quid
0:25:50 > 0:25:54as part of the development project he had planned.
0:25:54 > 0:25:57But that wasn't the whole story.
0:25:57 > 0:26:00# And that's just the half of it... #
0:26:02 > 0:26:04I own some land next to it.
0:26:04 > 0:26:07- Oh, literally?- Yeah. - OK.- Next door.
0:26:07 > 0:26:11My intention is to knock this one down and build a block.
0:26:11 > 0:26:13- Wow.- A block of four.
0:26:13 > 0:26:15Have you got any experience of that in this area?
0:26:15 > 0:26:20Yeah, I bought a house on the corner behind us,
0:26:20 > 0:26:24and I got planning permission to build three in the garden there.
0:26:24 > 0:26:26So, this house, or more importantly, the land it was on,
0:26:26 > 0:26:29was the final piece in Martin's jigsaw,
0:26:29 > 0:26:32to enable his block of four new homes to be built.
0:26:32 > 0:26:35And he was confident, with modern foundation methods,
0:26:35 > 0:26:37that the ground wouldn't be an issue,
0:26:37 > 0:26:41but he did have to sink some more money into the project
0:26:41 > 0:26:42to get it off the ground.
0:26:42 > 0:26:46There was a covenant that only the one property could be built
0:26:46 > 0:26:48- here if it was knocked down. - Oh, right.
0:26:48 > 0:26:52£17,000 to get the covenant lifted.
0:26:52 > 0:26:54- So...- £17,000 extra?
0:26:54 > 0:26:58- Yeah.- To enable you to do what you want to do?- Yeah.
0:26:58 > 0:27:00That was a bit of a downer.
0:27:00 > 0:27:05It meant getting this potential plot had cost £97,000,
0:27:05 > 0:27:08and he still had demolition and services to sort out
0:27:08 > 0:27:11for the four houses he had planned,
0:27:11 > 0:27:13even before he added in the build costs.
0:27:13 > 0:27:17He hoped to bring the houses in for a total of 300,000,
0:27:17 > 0:27:20and he thought he could have them complete in a year.
0:27:20 > 0:27:25So, providing planning was granted for the old house, well...
0:27:29 > 0:27:33And now, 18 months later, we're back.
0:27:33 > 0:27:35So, did it all go to plan?
0:27:39 > 0:27:41Well, would you look at that?
0:27:43 > 0:27:46What did he end up building?
0:27:46 > 0:27:51We were able to fit four three-bedroom properties.
0:27:51 > 0:27:54All four houses are identical on the outside,
0:27:54 > 0:27:56as is the layout on the inside.
0:27:56 > 0:27:58Come in, you got a small hallway,
0:27:58 > 0:28:01you've then got a downstairs toilet, cloakroom.
0:28:01 > 0:28:03You then come into the lounge.
0:28:12 > 0:28:14From the lounge
0:28:14 > 0:28:18into a kitchen, like, a little kitchenette-diner.
0:28:26 > 0:28:31Upstairs, you've got three bedrooms and a bathroom and shower.
0:28:43 > 0:28:45Well, it all looks very smart on the surface,
0:28:45 > 0:28:49but what about below the ground?
0:28:49 > 0:28:53When we got the mining report, the actual fault is 600 metres down,
0:28:53 > 0:28:56so it was quite surprising that all those years ago it had come to the
0:28:56 > 0:28:58surface, but it basically runs
0:28:58 > 0:29:01all the way through, from here, up the road.
0:29:01 > 0:29:04There's a number of houses that have been knocked down over the years
0:29:04 > 0:29:06where the fault runs through.
0:29:06 > 0:29:08Sounds a bit scary, doesn't it?
0:29:08 > 0:29:12But these houses were built with ring beam foundations,
0:29:12 > 0:29:16so they'll be able to withstand any ground movement.
0:29:16 > 0:29:22So, Martin's confident these houses aren't going anywhere soon.
0:29:27 > 0:29:30I had a project manager that works for me that came in
0:29:30 > 0:29:35and basically oversaw the project. I was then just coming and going,
0:29:35 > 0:29:39keeping my eye on it and making sure everything was going how I wanted it to.
0:29:39 > 0:29:43Martin is the managing director of a road marking company.
0:29:43 > 0:29:46But having overseen the build of three other properties just over the
0:29:46 > 0:29:50fence from here, he's quite an experienced developer by now.
0:29:50 > 0:29:54He reckons he spent 120,000 buying the house,
0:29:54 > 0:29:57paying the covenant and the demolition costs.
0:29:57 > 0:30:00The build itself has come in at about 300,000.
0:30:00 > 0:30:04So, the four houses stand me at 420,000.
0:30:08 > 0:30:10420,000 means, if I've got my maths right,
0:30:10 > 0:30:13it cost Martin £105,000 per house.
0:30:14 > 0:30:17But what do two local experts think?
0:30:17 > 0:30:21Are these the right type of property for the local market?
0:30:21 > 0:30:25First of all, let's ask the agent who saw the lot last time.
0:30:27 > 0:30:29Since coming back to the property,
0:30:29 > 0:30:32very appealing as soon as you approach the properties.
0:30:32 > 0:30:35Very good decision as well, obviously, on this occasion
0:30:35 > 0:30:38to demolish the original building, and then, obviously,
0:30:38 > 0:30:41fantastic job with the four new properties here.
0:30:41 > 0:30:44It's a brand-new build,
0:30:44 > 0:30:46and it all works really well.
0:30:46 > 0:30:51I like the layout, and it's been finished to a very high standard.
0:30:52 > 0:30:55Martin wants to keep these properties and in fact already has tenants
0:30:55 > 0:30:57lined up for all four houses.
0:30:57 > 0:31:01But with each house costing him £105,000,
0:31:01 > 0:31:03were they a good investment?
0:31:03 > 0:31:08Well, the agents valued each house at between 120 and 130 grand,
0:31:08 > 0:31:11so a potential profit, minus taxes and fees,
0:31:11 > 0:31:15of between £60,000 to £100,000 for all four houses.
0:31:15 > 0:31:16A good result.
0:31:16 > 0:31:20But a rental vehicle is how Martin currently sees the properties.
0:31:20 > 0:31:24We would look to place the properties on the market for somewhere in the
0:31:24 > 0:31:27region of £575 per calendar month.
0:31:27 > 0:31:29I would recommend a rental figure
0:31:29 > 0:31:33in the region of £580 per calendar month.
0:31:33 > 0:31:36So, the rent that I'm looking for is 775,
0:31:36 > 0:31:38but that includes all your bills.
0:31:38 > 0:31:42I think if it was on the open market without the bills, then, yeah,
0:31:42 > 0:31:44575 is about right.
0:31:44 > 0:31:49£575 per calendar month will represent a yield of 6%,
0:31:49 > 0:31:52but what's next on Martin's agenda?
0:31:55 > 0:31:59I'm 50 this year, so my intention is to go away somewhere different every
0:31:59 > 0:32:04month of the year. I've done Cambodia, Vietnam,
0:32:04 > 0:32:06Bali, Singapore,
0:32:06 > 0:32:09Oman, Switzerland,
0:32:09 > 0:32:12Spain and Italy.
0:32:12 > 0:32:15And I'm off to Italy again at the beginning of the month.
0:32:19 > 0:32:22Nestled in the Chiltern Hills,
0:32:22 > 0:32:25Berkhamsted may be typical green and pleasant land,
0:32:25 > 0:32:28but it has another green claim to fame.
0:32:28 > 0:32:32World-renowned author Graham Greene was born in the historic market town
0:32:32 > 0:32:35in 1904 and lived here
0:32:35 > 0:32:38until he went to study at Balliol College in Oxford.
0:32:38 > 0:32:41So, will the property Lucy is here to see
0:32:41 > 0:32:44be something to WRITE home about?
0:32:47 > 0:32:51Well, I'm here to see quite a substantial end-of-terrace.
0:32:51 > 0:32:54It is situated in the centre of the town.
0:32:54 > 0:32:56Now, it's here. Wow.
0:32:56 > 0:32:58Look at this.
0:32:58 > 0:33:01Quite an impressive Victorian building,
0:33:01 > 0:33:05with some absolutely beautiful, intricate brickwork on the outside,
0:33:05 > 0:33:08which I love. It's absolutely gorgeous.
0:33:08 > 0:33:10Now, I know there's four bedrooms inside,
0:33:10 > 0:33:15and the guide price was £375,000 plus.
0:33:19 > 0:33:20Yes, please.
0:33:20 > 0:33:22It's gorgeous on the outside,
0:33:22 > 0:33:25it's so much better than I was expecting on the inside.
0:33:25 > 0:33:27Now, with these Victorian houses,
0:33:27 > 0:33:31you usually get very narrow entrance halls, but look.
0:33:31 > 0:33:32Look how wide this one is.
0:33:32 > 0:33:34Absolutely fabulous.
0:33:34 > 0:33:37You've got a lovely reception room here with high ceilings,
0:33:37 > 0:33:40with cornicing, marble fireplace there,
0:33:40 > 0:33:43you've got this beautiful curve on the wall here.
0:33:43 > 0:33:46Cornicing, coving, lovely, lovely stairs.
0:33:46 > 0:33:49Wow. The features are endless in this house.
0:33:49 > 0:33:52It's just fantastic.
0:33:52 > 0:33:54Second reception room.
0:33:54 > 0:33:57Now, you can see, you're going to need to take this back
0:33:57 > 0:34:00to the bare brick. Everything needs doing.
0:34:00 > 0:34:03But if you like your panelled doors and your high ceilings and your
0:34:03 > 0:34:07traditional sash windows, this house has got the lot.
0:34:07 > 0:34:10I mean, look at this for a fireplace.
0:34:10 > 0:34:12That's gorgeous!
0:34:12 > 0:34:14Gas fire, well, that's the source of heat in this house.
0:34:14 > 0:34:19You're going to really need to think about installing the central heating, obviously.
0:34:19 > 0:34:21And a bit of a disappointing kitchen.
0:34:21 > 0:34:23You've got to go down a few steps there.
0:34:23 > 0:34:26It's rather small, it's dark, you've got a big larder at the back,
0:34:26 > 0:34:29so the whole place is going to need a rejig.
0:34:29 > 0:34:31It's absolutely fantastic,
0:34:31 > 0:34:35and for somebody who would love to take on a house like this, well, it would be ideal.
0:34:35 > 0:34:39But let's hope whoever buys this has got a healthy bank balance,
0:34:39 > 0:34:43because you really are going to need to spend a lot of money.
0:34:44 > 0:34:47# I couldn't love you
0:34:47 > 0:34:50# Any better
0:34:50 > 0:34:55# I love you just the way you are. #
0:34:55 > 0:34:59Let's hope whoever buys this loves it just the way it is and lovingly
0:34:59 > 0:35:03restores it back to its former glory instead of ripping out all these
0:35:03 > 0:35:06fantastic original features.
0:35:07 > 0:35:09So, upstairs, more of what you saw downstairs.
0:35:09 > 0:35:12Lovely wide hallways, nice high ceilings.
0:35:12 > 0:35:16And you've got one, two, three bedrooms.
0:35:16 > 0:35:18Not a bad size. This one is OK,
0:35:18 > 0:35:21but this is where it gets really interesting.
0:35:21 > 0:35:22OK, so bedroom three.
0:35:22 > 0:35:24Bedroom four, follow me.
0:35:26 > 0:35:31Here. And through here is the bathroom and toilet.
0:35:31 > 0:35:35So you've got to go through this room to get to the bathroom.
0:35:35 > 0:35:37Not only that, you've got to go through this room as well,
0:35:37 > 0:35:39so two rooms to get to the bathroom.
0:35:39 > 0:35:43So you can see you need to think about planning this house.
0:35:43 > 0:35:46You need to sit down with a piece of paper and work out what to do.
0:35:46 > 0:35:49It might be an extension, it might be knocking some walls down,
0:35:49 > 0:35:54but it just doesn't work how it's currently laid out.
0:35:54 > 0:35:57If you wanted to stay with the same footprint, could you block up these
0:35:57 > 0:36:01connecting doors and create new ones off the hallway somehow?
0:36:01 > 0:36:05Hmm, tricky. But outside, you can see that you could possibly
0:36:05 > 0:36:09create more space without impinging on the small garden too much.
0:36:11 > 0:36:14And you could also think about off-street parking here,
0:36:14 > 0:36:18which remedies the issue of that busy road out front.
0:36:18 > 0:36:22There is always a but, and the but is, in this case,
0:36:22 > 0:36:27it is a conservation area, which could curtail those plans.
0:36:27 > 0:36:31To find out how these ideas might be received by the council, we asked a
0:36:31 > 0:36:35local estate agent along to fill us in.
0:36:35 > 0:36:40In our experience, the planners are very positive about renovations
0:36:40 > 0:36:43as long as they are done sensitively and in keeping with the area.
0:36:43 > 0:36:45They are not going to want to see ripping windows out
0:36:45 > 0:36:48and putting UPVC in, that type of thing, clearly.
0:36:48 > 0:36:52But things like the extension, as long as it is done sensitively,
0:36:52 > 0:36:56they are going to have a reasonably sympathetic ear to the plight of who
0:36:56 > 0:37:00is going to live here. Clearly, the internal layout doesn't really work
0:37:00 > 0:37:04for today's modern family, how it is, anyway.
0:37:05 > 0:37:09So extending into the infill area is a possibility, but that could mean a
0:37:09 > 0:37:15lot of investment, even if you got it for around the £375,000 guide price.
0:37:15 > 0:37:18So what could it be worth once renovated?
0:37:19 > 0:37:24Assuming the highest-quality finish, I would say as long as the property
0:37:24 > 0:37:26is done in that way but not extended,
0:37:26 > 0:37:31I would estimate the value to be around 700,000 when it is finished.
0:37:31 > 0:37:35If the owner is able to get an extension onto the property,
0:37:35 > 0:37:37sorts the problems out upstairs,
0:37:37 > 0:37:40perhaps gets some parking into the back as well,
0:37:40 > 0:37:45then I think the value then suddenly leaps to late 700,000, perhaps 775,
0:37:45 > 0:37:48even as much as 800,000, potentially.
0:37:48 > 0:37:54Well, this really is such a lovely big, old, gorgeous Victorian property.
0:37:54 > 0:37:57I love it. There are a few layout issues however,
0:37:57 > 0:38:02especially with regards to the bathroom access through two bedrooms,
0:38:02 > 0:38:05but with a bit of work and re-jigging,
0:38:05 > 0:38:08this really could be such a fantastic family home.
0:38:08 > 0:38:12Let's see who snapped this one up at auction.
0:38:13 > 0:38:15Cracking building, fantastic building.
0:38:15 > 0:38:18Rarely available. Over to you, where do you want to start?
0:38:19 > 0:38:21500?
0:38:21 > 0:38:23500 anywhere?
0:38:24 > 0:38:26Well, I've tried to help.
0:38:26 > 0:38:29We'll start at 380, then.
0:38:29 > 0:38:31380 anywhere?
0:38:31 > 0:38:35380. 385.
0:38:35 > 0:38:37385.
0:38:37 > 0:38:39390.
0:38:39 > 0:38:42The bidders were playing it cool to start
0:38:42 > 0:38:45but this lot had plenty of interest.
0:38:45 > 0:38:49We rejoin the auctioneer looking for 546,000.
0:38:49 > 0:38:55546. 547. 548.
0:38:55 > 0:38:57547.
0:38:57 > 0:39:00With you, sir. 548 elsewhere.
0:39:00 > 0:39:02547 sitting down.
0:39:02 > 0:39:04It is going, first time.
0:39:04 > 0:39:06Second time.
0:39:06 > 0:39:08Third and last time.
0:39:08 > 0:39:10Well done, 547.
0:39:10 > 0:39:12You got there, congratulations.
0:39:12 > 0:39:15Seeing off the competition
0:39:15 > 0:39:18and buying a character property for £547,000
0:39:18 > 0:39:22was charity boss Ramon and his wife Carly,
0:39:22 > 0:39:25who works in a local interior design shop.
0:39:25 > 0:39:28Both of them have restored period properties before
0:39:28 > 0:39:32but this is the first time they have taken one on as developers.
0:39:32 > 0:39:34Lucy met up with them to find out more.
0:39:34 > 0:39:37Carly and Ramon, congratulations.
0:39:37 > 0:39:38What a fantastic house.
0:39:38 > 0:39:42- Yes.- It is absolutely brimming with character features, which I love,
0:39:42 > 0:39:45- and a lovely little high street. - Yes.- Yes, that's amazing.
0:39:45 > 0:39:47- We are very lucky. - It is a beautiful house.
0:39:47 > 0:39:49So who spotted it? Who wanted it?
0:39:49 > 0:39:52I think we sort of knew of it for the last 20-odd years, and
0:39:52 > 0:39:55then a friend of ours came in to the shop and said,
0:39:55 > 0:39:57"Did you know it's got an auction sign?" So we thought, right.
0:39:57 > 0:40:02And then we just went up to the auction and I thought this is never going to happen and it did.
0:40:02 > 0:40:05So what is it that you like so much about the house?
0:40:05 > 0:40:07Well, I think it is the age of it,
0:40:07 > 0:40:11it has beautiful brickwork out the front, it is in a great place.
0:40:11 > 0:40:14It is also taking something that has been really neglected and sort of
0:40:14 > 0:40:16putting in some love
0:40:16 > 0:40:19and style back into it and making it a family home for somebody.
0:40:19 > 0:40:23We've done several properties before and I think period properties, in
0:40:23 > 0:40:26particular, we love all the features and this is unique because it still
0:40:26 > 0:40:30has all the old fireplaces, wooden floorboards,
0:40:30 > 0:40:33the lovely staircase and everything else with it.
0:40:33 > 0:40:35So it is quite a find.
0:40:35 > 0:40:38So, Ramon, have you always developed houses in this area?
0:40:38 > 0:40:41We had several properties very, very close to here
0:40:41 > 0:40:44and for the most peculiar reason,
0:40:44 > 0:40:47they have always been corner properties.
0:40:47 > 0:40:50I don't know... So this is another corner property, so we are quite
0:40:50 > 0:40:52familiar with the area,
0:40:52 > 0:40:56- and I suppose passionate about giving it some life back.- Yeah.
0:41:06 > 0:41:10Ramon and Carly have certainly cornered the market on the period property front
0:41:10 > 0:41:13and while they have clearly fallen in love with the house,
0:41:13 > 0:41:17it still is a business venture and they plan to sell the property once
0:41:17 > 0:41:18renovated.
0:41:18 > 0:41:21This would be the large...
0:41:21 > 0:41:24The first plan of action, really, is to go to the planners,
0:41:24 > 0:41:30talk to Highways to get the kerb dropped and hopefully put a drive in at the very bottom.
0:41:30 > 0:41:33The rooms upstairs, where, yes, you are not just going through one bedroom,
0:41:33 > 0:41:36you're going through two bedrooms to get to the bathroom...
0:41:36 > 0:41:38A through through.
0:41:38 > 0:41:41Again, subject to the planners allowing us to do it,
0:41:41 > 0:41:47we intend to go up at the top of the stairwell on the side and create
0:41:47 > 0:41:51another hallway, so you can actually access those off the hallway.
0:41:51 > 0:41:55Again, the other potential it has got is to go up into the loft as well
0:41:55 > 0:41:59and create another bedroom with a little bathroom in there,
0:41:59 > 0:42:00en suite in there.
0:42:00 > 0:42:04Ramon will be doing general building work and project managing their
0:42:04 > 0:42:06usual team of builders, while Carly,
0:42:06 > 0:42:10as you would expect, will be using her interior design knowledge.
0:42:10 > 0:42:13With a budget of 120,000 and a timescale of a year,
0:42:13 > 0:42:18the couple hope it will be ready to sell but...
0:42:18 > 0:42:22Do you have a plan B in case you do not get the permissions you need?
0:42:22 > 0:42:27- Oh...- What if you don't get permission to do the things you want to do here?
0:42:27 > 0:42:31Um, as it stands, if you didn't get the permission,
0:42:31 > 0:42:33you could still refurbish it and make it
0:42:33 > 0:42:35into a lovely family home.
0:42:35 > 0:42:39If you look at a couple of the properties adjoining it,
0:42:39 > 0:42:42which are very similar, some have extended,
0:42:42 > 0:42:45some have just refurbished them and they have sold in the past.
0:42:45 > 0:42:48So I mean, simply, if we could put a drive in
0:42:48 > 0:42:51and if we just refurbished it,
0:42:51 > 0:42:53because Crossrail are coming in,
0:42:53 > 0:42:55and if I waited a year, it has gone up anyway.
0:42:55 > 0:42:58So we would still make some money out of it.
0:42:58 > 0:43:00So it wouldn't be a disaster.
0:43:00 > 0:43:03- So you're still very confident? - Yes.- Yeah. I think, yeah,
0:43:03 > 0:43:06I have a good feeling about it, that it will be good.
0:43:06 > 0:43:07Well, guys,
0:43:07 > 0:43:13I am so excited to see the outcome and I think this house is going to look beautiful.
0:43:13 > 0:43:14Good luck.
0:43:14 > 0:43:17Yeah, I hope that all goes really well for you both.
0:43:17 > 0:43:21- Thank you.- Brilliant. Thanks very, very much.
0:43:21 > 0:43:27So this is yet another corner house for Carly and Ramon, but it's going
0:43:27 > 0:43:28to be a very big project for them.
0:43:28 > 0:43:30They've got big plans for this place,
0:43:30 > 0:43:34including a two-storey rear extension and a loft conversion.
0:43:34 > 0:43:38But will they get the planning permission they need and will they be able
0:43:38 > 0:43:42to resist getting carried away and spending too much of their budget?
0:43:42 > 0:43:45Find out how the couple get on with this wonderful house
0:43:45 > 0:43:48later on in the programme.
0:43:51 > 0:43:54Well, earlier we saw how one of our properties had turned out, but what
0:43:54 > 0:43:55about the other two?
0:43:55 > 0:43:58Yes, all sorts of problems can crop up.
0:43:58 > 0:44:00What have our buyers on today's show had to deal with?
0:44:00 > 0:44:02Why don't we find out?
0:44:04 > 0:44:08Earlier in the show, I was in Netherton in the Black Country,
0:44:08 > 0:44:11where I saw a former police office guided at 80 to 90 grand.
0:44:13 > 0:44:15The address?
0:44:15 > 0:44:18999 Letsby Avenue.
0:44:18 > 0:44:19Not really.
0:44:19 > 0:44:24Yes, it was the end of the line for the police office and the beginning of the puns.
0:44:31 > 0:44:35The two floors were in a CRIMINALLY bad state, and my INVESTIGATION
0:44:35 > 0:44:38suggested it was an INSIDE JOB,
0:44:38 > 0:44:42apart from outside, which was about introducing LAW AND ORDER.
0:44:43 > 0:44:46Keen on developing this into a family home,
0:44:46 > 0:44:50but less keen on my police puns, was chemical engineer Angela.
0:44:50 > 0:44:54The LONG ARM of the LAW reached all the way to her home in Woking
0:44:54 > 0:44:59and she NICKED the property at auction for £86,000.
0:44:59 > 0:45:04- How are you going to manage it, if you are down there and this is up north?- Um, come up and stay
0:45:04 > 0:45:08a couple of nights at a time, you know, get the inflatable bed out.
0:45:10 > 0:45:13As comfy as a night in the cells for Angela.
0:45:13 > 0:45:16Of more comfort was her realistic 15 grand budget
0:45:16 > 0:45:21and the three- to four-month timescale. We're back a year later.
0:45:22 > 0:45:27Has Angela followed her CONVICTIONS and made this into a house?
0:45:27 > 0:45:31# Cops are on the outside Landlord's on the phone
0:45:31 > 0:45:35# Quick turn out all the lights Pretend there ain't nobody home
0:45:35 > 0:45:40# It's a house arrest Everybody run
0:45:40 > 0:45:45# I gotta plead guilty Having too much fun... #
0:45:45 > 0:45:49Well, this really is now a brilliant family home.
0:45:49 > 0:45:53Angela has knocked through the upstairs toilets to create a family
0:45:53 > 0:45:58bathroom. The three bedrooms have been completely redecorated and
0:45:58 > 0:46:02downstairs she has added a shower room to the extension area.
0:46:02 > 0:46:05This means it could be a fourth bedroom,
0:46:05 > 0:46:09and ideal for mobility access.
0:46:09 > 0:46:12She has kept most of the kitchen but jazzed it up
0:46:12 > 0:46:14with some new glossy units.
0:46:14 > 0:46:19And the real clever bit is how she has used law to convert this former
0:46:19 > 0:46:23- office.- The house was originally built as a residential house for the
0:46:23 > 0:46:26police. It was used as an office.
0:46:26 > 0:46:29So we had to get a change of use to residential.
0:46:29 > 0:46:33Turned out that it came under permitted developments, so the council agreed
0:46:33 > 0:46:38that we could just change over without having to get any planning permission.
0:46:43 > 0:46:47Getting a change of use may have happened speedily but some things
0:46:47 > 0:46:51didn't. It has been four months' worth of work for Angela,
0:46:51 > 0:46:54as she estimated, but it has been stretched over a year
0:46:54 > 0:46:58as she has had to be at home in Woking due to her job.
0:46:58 > 0:47:00But she has done a lot of the work herself.
0:47:02 > 0:47:05So my main job, as an engineer, I do design work,
0:47:05 > 0:47:09did lots of drawings and plans for this and it's just really nice to
0:47:09 > 0:47:12see it all finished and all the plans come to fruition.
0:47:12 > 0:47:15I did quite a bit of the work initially,
0:47:15 > 0:47:17I did a lot of the tiling because I like tiling.
0:47:17 > 0:47:22Fitted a lot of the kitchen as well, then we really started to run out of
0:47:22 > 0:47:25time, so I got a carpenter in to finish off some bits and the doors,
0:47:25 > 0:47:28and a decorator to come in and do the rest.
0:47:28 > 0:47:32I grew up doing quite a lot of DIY with my dad, he's very handy.
0:47:32 > 0:47:35We did a lot of projects together when I was growing up,
0:47:35 > 0:47:39and so I learned quite a few skills and thankfully at the end, when we
0:47:39 > 0:47:42needed to finish off, he came down and helped finish it off and blasted
0:47:42 > 0:47:45through the rest of the work.
0:47:46 > 0:47:51And with that race to finish, her budget doubled from 15 to 30 grand.
0:47:52 > 0:47:57I initially thought we could keep the existing air-heating system
0:47:57 > 0:48:02but it was very old and the boiler for it was really old so we decided to just replace it.
0:48:02 > 0:48:05We had to plaster a few more of the rooms than we were
0:48:05 > 0:48:08expecting, so that was increased.
0:48:08 > 0:48:11A bit more electrics was increased and then of course I had a lot more
0:48:11 > 0:48:15labour costs because I was not here to do more of the work myself.
0:48:15 > 0:48:18So, all in all, I am happy enough with the budget.
0:48:18 > 0:48:21Those labour costs included getting trades in,
0:48:21 > 0:48:23like replacing that heating system,
0:48:23 > 0:48:27taking out the old fire alarm and sprinkler system,
0:48:27 > 0:48:31replacing the windows and doors, re-plastering and some decorating.
0:48:31 > 0:48:33Was it all worth it?
0:48:33 > 0:48:36I really like it. I have had ideas of moving in but it is too far away
0:48:36 > 0:48:40from work. So it will still be sold now.
0:48:46 > 0:48:49But will Angela be happy with the values?
0:48:49 > 0:48:52Can she make a profit even with that overspend?
0:48:52 > 0:48:56We called in two property experts to give us their valuations and their
0:48:56 > 0:48:58thoughts.
0:48:58 > 0:49:01I think the owner of this has done a first-class job on it.
0:49:01 > 0:49:05It's clean, it's tidy, it's got neutral colours,
0:49:05 > 0:49:07it's got a very spacious upstairs bathroom, which is quite nice
0:49:07 > 0:49:11and the addition of the en suite downstairs, I think, makes it a good family home.
0:49:11 > 0:49:14There's quite a few selling points with this property,
0:49:14 > 0:49:16the first being that it offers three good-sized bedrooms,
0:49:16 > 0:49:18it's completely refurbished,
0:49:18 > 0:49:20nobody has to do any work to it, which buyers are going to like,
0:49:20 > 0:49:24they can just move straight in, and having that extra room downstairs
0:49:24 > 0:49:28and the en suite downstairs gives it real flexibility, maybe for a larger
0:49:28 > 0:49:31family, somebody with an elderly member that is living with them,
0:49:31 > 0:49:34or even the potential to use it as a separate living accommodation.
0:49:35 > 0:49:41Angela has spent £116,000 buying and converting the police office.
0:49:41 > 0:49:45What could she expect in terms of sales and rental?
0:49:45 > 0:49:50The rental figure for me on the market would be £695 per calendar month.
0:49:50 > 0:49:53If I was to put this property on the open market, I would expect it to
0:49:53 > 0:49:55achieve in the region of £150,000.
0:49:55 > 0:49:59I'd expect this property to achieve somewhere in the region of £700
0:49:59 > 0:50:03to £750 per calendar month. And on the resale market,
0:50:03 > 0:50:07I'd expect it to achieve somewhere between £140,000 and £145,000.
0:50:07 > 0:50:10Really pleased with the valuations.
0:50:10 > 0:50:14For my first project, I think it is a good profit margin,
0:50:14 > 0:50:16especially as it has been a part-time job for me, really,
0:50:16 > 0:50:21rather than full time so, yeah, I am pleased.
0:50:21 > 0:50:26At those top figures, Angela could achieve a £34,000 pre-tax profit
0:50:26 > 0:50:29or a rental yield of just over 7.5%.
0:50:30 > 0:50:34It took a while and a lot of hard work to convert this police office,
0:50:34 > 0:50:40so surely Angela won't be RESISTING A REST now she's finished,
0:50:40 > 0:50:43and that is it for the police puns. Promise.
0:50:47 > 0:50:52It has been fun but I am really looking forward to a few months off before I start my next project.
0:50:52 > 0:50:56So now that I've got my weekends back, I'll be riding my horses a lot more.
0:50:56 > 0:50:58And a couple of weddings to go to
0:50:58 > 0:51:01and enjoying the weekends again for a while.
0:51:04 > 0:51:06Earlier in the programme,
0:51:06 > 0:51:10Lucy was in the pretty market town of Berkhamsted in Hertfordshire,
0:51:10 > 0:51:14and the property she saw was just as charming as the town itself.
0:51:15 > 0:51:18Guided at £375,000 plus,
0:51:18 > 0:51:21this four-bed Victorian terrace had more than a few of Lucy's
0:51:21 > 0:51:23favourite things.
0:51:23 > 0:51:27You've got this beautiful curve on the wall here.
0:51:27 > 0:51:30Cornicing, coving, lovely, lovely stairs.
0:51:30 > 0:51:34- Wow.- And although the two reception rooms were the sound of music to
0:51:34 > 0:51:39Lucy's ears, well, the tatty kitchen needed to be brought back to life.
0:51:39 > 0:51:43But that was nothing compared to the bamboozling layout upstairs.
0:51:43 > 0:51:46So bedroom three. Bedroom four, follow me.
0:51:47 > 0:51:50Here, and through here...
0:51:51 > 0:51:54..is the bathroom and the toilet.
0:51:54 > 0:51:56Fortunately, the garden offered a few solutions,
0:51:56 > 0:51:59which new owners Ramon and Carly,
0:51:59 > 0:52:04who bought the property for £547,000, were well aware of.
0:52:04 > 0:52:07The first plan of action, really, is to go to the planners,
0:52:07 > 0:52:10talk to Highways to get the kerb dropped
0:52:10 > 0:52:13and hopefully put a drive in at the very bottom.
0:52:13 > 0:52:15The rooms upstairs, where, yes,
0:52:15 > 0:52:17you are not just going through one bedroom,
0:52:17 > 0:52:20you're going through two bedrooms to get to the bathroom...
0:52:20 > 0:52:21A through through.
0:52:21 > 0:52:24Again, subject to the planners allowing us to do it,
0:52:24 > 0:52:30we intend to go up at the top of the stairwell on the side and create
0:52:30 > 0:52:35another hallway so you can actually access those off the hallway.
0:52:35 > 0:52:40The £120,000 budget sounded healthy enough, but in a conservation area
0:52:40 > 0:52:44you can never guess what you might have to contend with.
0:52:44 > 0:52:50This experienced pair plan to restore this pretty period property in a year.
0:52:50 > 0:52:55Well, we're back over two-and-a-half years later.
0:52:55 > 0:52:58# Almost there
0:52:58 > 0:53:03# We're almost there
0:53:03 > 0:53:06# How wonderful
0:53:06 > 0:53:12# Wonderful our love will be
0:53:12 > 0:53:17# For you, for me... #
0:53:17 > 0:53:21Ramon and Carly are not quite there yet
0:53:21 > 0:53:24but there have been some pretty major changes.
0:53:24 > 0:53:27The ground-floor extension houses the new kitchen,
0:53:27 > 0:53:29while the modern first-floor addition
0:53:29 > 0:53:33houses the landing for access to what is now a bedroom.
0:53:35 > 0:53:39The through through room is now an en suite for the master bedroom,
0:53:39 > 0:53:42whilst they have lost the small bedroom at the front
0:53:42 > 0:53:45in favour of a master bathroom.
0:53:45 > 0:53:48But what they've lost in the first floor,
0:53:48 > 0:53:51they've gained in the way of a fabulous new loft extension
0:53:51 > 0:53:53with its own bathroom.
0:53:53 > 0:53:58Everything is beginning to take shape but thanks to planning and that conservation status,
0:53:58 > 0:54:01it has been a long haul from a pre-planning meeting,
0:54:01 > 0:54:04submitting plans and resubmitting plans.
0:54:04 > 0:54:07Planning was a slight challenge.
0:54:07 > 0:54:12So it was five attempts later of redrawing the plans from traditional
0:54:12 > 0:54:13build to modern, half modern,
0:54:13 > 0:54:18half traditional, but after the said five attempts we finally got there.
0:54:18 > 0:54:22All that to-ing and fro-ing with planning cost them a year-and-a-half
0:54:22 > 0:54:26but fortunately in the end Ramon and Carly were able to get everything on
0:54:26 > 0:54:30their wish list in one form or another, including getting planning
0:54:30 > 0:54:32permission for off-street parking.
0:54:32 > 0:54:36Mind you, they've not exactly been hanging around in the meantime.
0:54:36 > 0:54:41Ramon, Carly and their dream team of builders have completed two other
0:54:41 > 0:54:43properties since we last saw them,
0:54:43 > 0:54:46not to mention carefully restoring the period features in this house.
0:54:46 > 0:54:49We've obviously tried to leave all the fireplaces in.
0:54:49 > 0:54:53And the railings outside are actually on order at the moment,
0:54:53 > 0:54:56they will be rebuilt as they were.
0:54:56 > 0:55:00The only other real feature, there was a beautiful old cupboard upstairs, built-in cupboard.
0:55:00 > 0:55:03We've taken, if you like, the front of that and that'll be
0:55:03 > 0:55:06rebuilt in the outer hallway
0:55:06 > 0:55:09and become a coat cupboard and storage cupboard.
0:55:09 > 0:55:13But other than that, obviously, everything else that is in here,
0:55:13 > 0:55:15if you want, the coving and so on,
0:55:15 > 0:55:19everything has been restored to how it used to be.
0:55:19 > 0:55:22This property was always going to be a labour of love for the pair but
0:55:22 > 0:55:27such attention to detail and massive delays do not come cheap.
0:55:27 > 0:55:32So where do they stand on the £120,000 budget?
0:55:32 > 0:55:38So far, we've spent about 120,000 and we will have another 30 to 50,
0:55:38 > 0:55:40approximately, to spend still.
0:55:40 > 0:55:45Carly and Ramon bought the house for £547,000.
0:55:45 > 0:55:50Assuming Ramon's top prediction on renovation costs of 170,000
0:55:50 > 0:55:53takes their total spend to 717,000.
0:55:53 > 0:55:56So could there be any profit to be made?
0:55:56 > 0:56:00We asked two local estate agents what they thought of the renovation,
0:56:00 > 0:56:03starting with the agent who saw it first.
0:56:03 > 0:56:06I love what they've done to it so far.
0:56:06 > 0:56:10It is early days, so the finish is yet to really be determined.
0:56:10 > 0:56:12Some of the kitchen, things like that,
0:56:12 > 0:56:13haven't obviously been finished yet.
0:56:13 > 0:56:15But certainly what I am seeing,
0:56:15 > 0:56:18they have got it absolutely on the money.
0:56:18 > 0:56:23Very impressed with the size and how bright the property is.
0:56:23 > 0:56:25It's quite a balanced property,
0:56:25 > 0:56:27considering you've done a loft conversion,
0:56:27 > 0:56:29there is a really good flow to the property.
0:56:29 > 0:56:31It's lovely.
0:56:31 > 0:56:34Whilst it's tricky to value an unfinished property,
0:56:34 > 0:56:38both agents agreed on around £900,000.
0:56:38 > 0:56:42However, Carly and Ramon don't plan to realise the potential pre-tax
0:56:42 > 0:56:48profit of 183,000, they've decided to hold on to it for now.
0:56:48 > 0:56:50So what can it rent for?
0:56:50 > 0:56:53The demand for properties like this in Berkhamsted on the rental market
0:56:53 > 0:56:55is very good.
0:56:55 > 0:56:59I would suggest that the achievable rental value is somewhere
0:56:59 > 0:57:03between £2,500 and £2,800 per calendar month.
0:57:03 > 0:57:07This property would be closer to somewhere between £2,500 and
0:57:07 > 0:57:10£3,000 per calendar month.
0:57:10 > 0:57:13Probably a little bit on the low side.
0:57:13 > 0:57:16We have quite a small cottage not far from here
0:57:16 > 0:57:19and that's a three-bedroom,
0:57:19 > 0:57:22quite a small cottage, and that is renting for 1,650.
0:57:22 > 0:57:26So this is a much more substantial house.
0:57:26 > 0:57:29Also know of another property which is very similar to that
0:57:29 > 0:57:32and that is well in excess of that. So, again,
0:57:32 > 0:57:36I know it's difficult because it's still a building site but when it's
0:57:36 > 0:57:40finished, I think they'll probably come back with a slightly different opinion.
0:57:40 > 0:57:44Ramon has a lot of knowledge about the area so he's not convinced about
0:57:44 > 0:57:47that top estimated yield of 5%.
0:57:47 > 0:57:51And there's still a lot to do to get this ready for rental.
0:57:51 > 0:57:53I bet he can't wait for that stage.
0:57:54 > 0:57:56Yes, very much so.
0:57:56 > 0:58:00I think when you live in dust and dirt every day,
0:58:00 > 0:58:02and it's getting closer,
0:58:02 > 0:58:05sometimes it feels like you're not moving forward but
0:58:05 > 0:58:08it is getting closer so I do look forward to it.
0:58:08 > 0:58:12There's always a lovely moment when you go in and it's transformed and
0:58:12 > 0:58:15sort of morphed into something beautiful.
0:58:15 > 0:58:17Yeah, I can't wait.
0:58:19 > 0:58:22When it comes to property developing, no matter how experienced you are,
0:58:22 > 0:58:25there's always something new you can learn.
0:58:25 > 0:58:27Yes, and we'll have plenty more stories for you next time
0:58:27 > 0:58:30so make sure you join us here on Homes Under The Hammer.
0:58:30 > 0:58:31- Bye.- Goodbye.