Episode 54

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0:00:02 > 0:00:04Hello and welcome to the show. Now, when the hammer falls at auction

0:00:04 > 0:00:07and you've made that winning bid, it's an amazing feeling.

0:00:07 > 0:00:10Yeah, but once the reality starts to set in, and you get the keys,

0:00:10 > 0:00:12the real work begins.

0:00:12 > 0:00:16But lots of people still do buy their Homes Under The Hammer.

0:00:42 > 0:00:45You may have heard us mention this a few times,

0:00:45 > 0:00:48but preparation really is the key before buying at auction.

0:00:48 > 0:00:51Yes, and that's not just viewing the property beforehand

0:00:51 > 0:00:55and reading the legal pack, it's setting a limit on your budget.

0:00:55 > 0:00:58Yeah, let's hope today's buyers took that advice on board.

0:00:58 > 0:01:00Let's find out with they bought.

0:01:01 > 0:01:05I'm sizing up this mixed-use premises in Pembrokeshire,

0:01:05 > 0:01:07using some unconventional methods.

0:01:07 > 0:01:11Here, I go across over to this side.

0:01:11 > 0:01:13Meanwhile, there's no measuring the time

0:01:13 > 0:01:16this boiler has been in action at this London maisonette.

0:01:16 > 0:01:20That looks particularly archaic.

0:01:20 > 0:01:21Yikes.

0:01:22 > 0:01:24And I'm flexing my builder's vocabulary

0:01:24 > 0:01:27at this three-bed semi in Birmingham.

0:01:27 > 0:01:30This is what's known in the subsidence world

0:01:30 > 0:01:33as a belter of a crack.

0:01:33 > 0:01:35All of these properties have been sold at auction

0:01:35 > 0:01:38and we will find out who bought them and what they paid for them

0:01:38 > 0:01:40when they went under the hammer.

0:01:40 > 0:01:41Just there, sir.

0:01:44 > 0:01:47Today, I'm in Haverford West in southwest Wales.

0:01:47 > 0:01:51This picturesque town sits on the far western tip of Wales

0:01:51 > 0:01:55and is over an hour from Swansea and two from Cardiff.

0:01:55 > 0:01:59Its attractive riverfront properties and period cottages

0:01:59 > 0:02:02attract both local buyers and holiday homers

0:02:02 > 0:02:05seeking a peaceful piece of this tranquil corner

0:02:05 > 0:02:07of the Welsh countryside.

0:02:07 > 0:02:09# In a pretty place... #

0:02:09 > 0:02:13It might be dull and gloomy here in Haverford West,

0:02:13 > 0:02:15but what's not dull and gloomy

0:02:15 > 0:02:18are those beautifully coloured houses across the road.

0:02:18 > 0:02:20Very, very pretty.

0:02:20 > 0:02:21The property I'm here to see

0:02:21 > 0:02:25has commercial downstairs and a two-bed flat upstairs,

0:02:25 > 0:02:29a unit on that side and a unit on this side.

0:02:29 > 0:02:33It's got a guide price of £69,000 plus and I'm intrigued.

0:02:33 > 0:02:35Let's have a look.

0:02:35 > 0:02:39Now, this property was, once upon a time, a four-bed house.

0:02:39 > 0:02:40So the question is,

0:02:40 > 0:02:43what kind of commercial property has it been since?

0:02:44 > 0:02:47Ah, a shop.

0:02:47 > 0:02:49Right. Let's see what they've got to offer.

0:02:49 > 0:02:52Don't fancy any cable. I've got enough cable at home.

0:02:52 > 0:02:54# Shop around... #

0:02:56 > 0:03:01Not my kind of shop. Joking aside, look at the size of this place.

0:03:01 > 0:03:03Obviously was a shop, back in the day.

0:03:03 > 0:03:07You've got more commercial space on that side of the hallway, as well,

0:03:07 > 0:03:10which I know was a hairdresser's.

0:03:10 > 0:03:13Big question is, with commercial units like this,

0:03:13 > 0:03:15that are downstairs, what do you do with it?

0:03:15 > 0:03:17Do you keep it as a commercial unit?

0:03:17 > 0:03:21This one's empty. This one, obviously, hasn't worked.

0:03:21 > 0:03:24And I'm thinking, if you try again, is it going to work?

0:03:24 > 0:03:25I don't know. It's always a gamble.

0:03:25 > 0:03:30Or, I know there's a flat upstairs, a two-bed flat upstairs.

0:03:30 > 0:03:33Do you keep that one upstairs as a two-bed flat,

0:03:33 > 0:03:35and make this one into a two-bed flat,

0:03:35 > 0:03:37so you've got two separate abodes?

0:03:37 > 0:03:40You have to get change of use here to residential,

0:03:40 > 0:03:43but I'm pretty sure that should be pretty straightforward.

0:03:43 > 0:03:47Or do you go back to its original four-bed house?

0:03:48 > 0:03:51Centre of town? I'm not sure that would work,

0:03:51 > 0:03:53but I've given you three options there.

0:03:53 > 0:03:55The choice is endless.

0:03:55 > 0:03:59What I'm not happy about is the choice in the shop.

0:03:59 > 0:04:01The state of the commercial space

0:04:01 > 0:04:03does suggest that, in its current configuration,

0:04:03 > 0:04:07this building has got to the end of its shelf-life.

0:04:07 > 0:04:12But despite those empty shelves, I think, on further investigation,

0:04:12 > 0:04:14you're actually spoiled for choice.

0:04:15 > 0:04:16Wow!

0:04:16 > 0:04:22Not only do you get all the space in there, you actually get this...

0:04:22 > 0:04:24..quite substantial-sized outbuilding.

0:04:25 > 0:04:29And you get a garden, as well. Look at the size of the garden.

0:04:29 > 0:04:32That's got to be 25-30 metres.

0:04:34 > 0:04:38This is a bonus and it could make the four-bed option more likely.

0:04:38 > 0:04:42A family-sized house with a family-sized garden,

0:04:42 > 0:04:46but even if you went down the two flats option, it could still work.

0:04:46 > 0:04:47Either splitting it,

0:04:47 > 0:04:51or just giving the ground floor its own exclusive access.

0:04:51 > 0:04:54Choice is definitely a running theme with this property.

0:04:54 > 0:04:57You know what, if this place works for you,

0:04:57 > 0:05:01and you make a little bit of profit, you've got somewhere safe to put it.

0:05:02 > 0:05:07# Playing houses

0:05:07 > 0:05:13# Safe as houses... #

0:05:15 > 0:05:17Safe as houses? Well, maybe.

0:05:17 > 0:05:19But the flats could be the safer option,

0:05:19 > 0:05:21financially speaking.

0:05:21 > 0:05:25Even more investigation is needed before I make my mind up.

0:05:27 > 0:05:29So as I'm getting to the top of the stairs,

0:05:29 > 0:05:32it does feel a little bit dark and dingy up here.

0:05:32 > 0:05:36But before you get to the landing, you hit the family bathroom.

0:05:36 > 0:05:39And it's a good-size family bathroom, actually, to be honest with you.

0:05:39 > 0:05:40But it's dated.

0:05:40 > 0:05:44It's very old-fashioned and I'd want to rip that out, re-tile,

0:05:44 > 0:05:46and put a brand-new bathroom suite in there.

0:05:46 > 0:05:48But it's not a bad size all the same.

0:05:48 > 0:05:51Last two steps, before I get to the main landing.

0:05:51 > 0:05:53And you hit the kitchen.

0:05:53 > 0:05:55Now, to me, that kitchen looks OK.

0:05:55 > 0:05:57The cupboards look OK.

0:05:57 > 0:05:58The sinks, you've got a nice big window

0:05:58 > 0:06:00looking out to the back of the property.

0:06:00 > 0:06:02Of course, the hallway.

0:06:03 > 0:06:05Here.

0:06:05 > 0:06:08OK, yeah, I'm guessing these are the two bedrooms.

0:06:08 > 0:06:12Bigger bedroom to my left, it has got some wardrobes in,

0:06:12 > 0:06:15which seem to be taking up a lot of space.

0:06:15 > 0:06:16This is our bedroom two.

0:06:16 > 0:06:17A little bit smaller.

0:06:17 > 0:06:20But, you know, there's space there you can work with.

0:06:20 > 0:06:24And as I'm walking through this flat, I'm looking at these,

0:06:24 > 0:06:27these door frames, and they all seem a little bit skewwhiff.

0:06:27 > 0:06:29I wish I had a spirit level here.

0:06:29 > 0:06:31You can see, here.

0:06:31 > 0:06:35I go across over to this side and go back to this side.

0:06:35 > 0:06:36They're not quite flush.

0:06:36 > 0:06:38Not quite straight.

0:06:38 > 0:06:42As a two-bedroom flat, this would be the lounge area.

0:06:42 > 0:06:44It's not huge but, you know,

0:06:44 > 0:06:47the more I walk around this place, I'm getting a feel for it now.

0:06:47 > 0:06:50And I'm thinking to myself, four-bed house?

0:06:51 > 0:06:53I'm not feeling it. What I am feeling is,

0:06:53 > 0:06:56a flat up here, maybe a flat downstairs.

0:06:56 > 0:06:59Two separate flats, or you keep this as it is,

0:06:59 > 0:07:02and you keep the commercial units downstairs.

0:07:04 > 0:07:07I really don't think a house will maximise your return

0:07:07 > 0:07:11and it would be a lot of work to get it back to what it would be,

0:07:11 > 0:07:14a very large house.

0:07:14 > 0:07:17But does a local estate agent think my gut instincts are right

0:07:17 > 0:07:21for this property guided at 69 grand plus?

0:07:21 > 0:07:24I would probably want to convert the property

0:07:24 > 0:07:26into two two-bedroom flats.

0:07:26 > 0:07:29There are quite a lot of private rented flats in the area

0:07:29 > 0:07:33and that seems to be the most popular course for properties here.

0:07:33 > 0:07:36Good on you. But do the numbers back it up,

0:07:36 > 0:07:40for a property that was guided at £69,000 plus?

0:07:40 > 0:07:43In this location, a two-bedroom flat

0:07:43 > 0:07:46should achieve around about £70,000.

0:07:46 > 0:07:49On the sales market, in a good condition,

0:07:49 > 0:07:51a four-bedroom property this size

0:07:51 > 0:07:54would achieve approximately £120,000.

0:07:54 > 0:07:57So two flats at 70 grand apiece

0:07:57 > 0:08:01would increase your pre-tax profit by £20,000.

0:08:01 > 0:08:06Rental wise, they would bring in a total of £850 per calendar month,

0:08:06 > 0:08:10as opposed to £625 per calendar month, for a four-bed house.

0:08:10 > 0:08:14So this certainly looks like the best option,

0:08:14 > 0:08:17but could keeping the commercial space and one flat

0:08:17 > 0:08:18trump the two-flat values?

0:08:18 > 0:08:22In the current climate, an individual commercial unit

0:08:22 > 0:08:25of around this size is probably getting around about

0:08:25 > 0:08:27£650 per calendar month.

0:08:28 > 0:08:31That would give a slight increase in potential rental returns.

0:08:31 > 0:08:35But that's dependent on finding a business that wants the space,

0:08:35 > 0:08:38which might not be as easy as finding a tenant for a flat.

0:08:41 > 0:08:45The challenge with a project like this is what do you do with it?

0:08:45 > 0:08:47There's so much choice.

0:08:47 > 0:08:48The good thing about that is,

0:08:48 > 0:08:51the choice is yours to make this whatever you want it to be.

0:08:51 > 0:08:55My favourite part of this building is the guide price.

0:08:55 > 0:08:56You're getting a lot for your money.

0:08:56 > 0:08:59Let's find out who was shopping for a bargain

0:08:59 > 0:09:00when it went under the hammer.

0:09:04 > 0:09:07So we've got a double-fronted mid-terrace property.

0:09:07 > 0:09:09It's a mixed commercial and residential use.

0:09:09 > 0:09:12It comprises currently two former commercial units

0:09:12 > 0:09:13on the ground floor.

0:09:13 > 0:09:15Good-sized two-bedroom flat above.

0:09:15 > 0:09:18Do I see 69,000, to start things going?

0:09:18 > 0:09:19Do I see 69?

0:09:19 > 0:09:22Thank you, 69. 70 now I'm looking for.

0:09:22 > 0:09:24I'm looking for 70,000.

0:09:24 > 0:09:2570, thank you. 70, 71?

0:09:25 > 0:09:2871, thank you. 72?

0:09:28 > 0:09:3072. 73?

0:09:30 > 0:09:3273. 74?

0:09:32 > 0:09:3574? 75? 75?

0:09:35 > 0:09:3775,000, thank you.

0:09:37 > 0:09:4075, are you coming back in, sir?

0:09:40 > 0:09:42I've got 75,000.

0:09:42 > 0:09:44I can sell at 75,000.

0:09:44 > 0:09:45You sure?

0:09:47 > 0:09:50Sold to you, sir, 75,000.

0:09:50 > 0:09:55And so, 75 grand was the price paid by Cardiff-based teacher Gareth,

0:09:55 > 0:09:58who bought the property with his wife Geraldine.

0:10:00 > 0:10:02Gareth is a PE teacher,

0:10:02 > 0:10:04and I met him back at his Haverford West property

0:10:04 > 0:10:07to, hopefully, find out what he thought would be

0:10:07 > 0:10:10the right answer to this multiple-choice building.

0:10:11 > 0:10:14Gareth, nice to meet you. Congratulations, pal.

0:10:14 > 0:10:17- Thank you.- You've got yourself a big old unit here.

0:10:17 > 0:10:20- Yeah!- What were you thinking? What were you thinking?

0:10:20 > 0:10:23Myself and my wife were looking for a property to

0:10:23 > 0:10:28do up and resell or, potentially, to rent.

0:10:28 > 0:10:31It's a little bit far from where we live for renting.

0:10:31 > 0:10:33But we came down and had a look at it.

0:10:33 > 0:10:35And we saw a lot of potential in the building.

0:10:35 > 0:10:37Is this a new thing that you're doing?

0:10:37 > 0:10:39Is this your first project?

0:10:39 > 0:10:42Yes, it's the first house we've bought in an auction.

0:10:42 > 0:10:44Hold on a minute, this is the very first one

0:10:44 > 0:10:45that you're going to be tackling? It's huge.

0:10:45 > 0:10:48- The very first, yeah.- It's huge. - Bit daunting. Yeah, yeah.

0:10:48 > 0:10:49So, I like a challenge.

0:10:49 > 0:10:51- You've got one!- Yeah. - You've definitely got one.

0:10:51 > 0:10:54Yeah, you know, in my late teens and early 20s

0:10:54 > 0:10:58I did a lot of building-site work in the summers.

0:10:58 > 0:11:01So I've got a little bit of experience

0:11:01 > 0:11:04but, you know, for the technical stuff,

0:11:04 > 0:11:06bring friends in and stuff.

0:11:06 > 0:11:09Right, Gareth, tell me what you're going to do with this building.

0:11:09 > 0:11:13Well, our initial decision/idea is to turn it back to a four-bedroom

0:11:13 > 0:11:16but if, when we get some people in, and get some advice,

0:11:16 > 0:11:20if they say actually it would be much easier and more cost-effective

0:11:20 > 0:11:24to keep it as a commercial unit or maybe even flats...

0:11:26 > 0:11:29- Yeah.- ..we might go down that road. We're quite flexible at the moment.

0:11:29 > 0:11:30OK.

0:11:30 > 0:11:37# Oh, everything is up in the air... #

0:11:39 > 0:11:42So, like me, he hasn't totally nailed his colours

0:11:42 > 0:11:45to the mast on this first property purchase,

0:11:45 > 0:11:48which also makes his budget a bit vague.

0:11:48 > 0:11:50He was thinking £25,000ish,

0:11:50 > 0:11:54if he was going to convert it back into a four-bed house,

0:11:54 > 0:11:57and a three- to four-month timescale

0:11:57 > 0:11:59but exploring the options could change all of that.

0:11:59 > 0:12:02You've got to be excited, though, with this being your first project.

0:12:02 > 0:12:05Whose idea was this? Was this yours or your missus or...?

0:12:05 > 0:12:06Joint... Joint decision.

0:12:08 > 0:12:11We had a little bit of savings aside

0:12:11 > 0:12:14and we thought let's do something with it.

0:12:14 > 0:12:16You know, hopefully, turn it into...

0:12:17 > 0:12:21- More!- ..more savings, more savings,

0:12:21 > 0:12:23before the children go off to university, or off travelling,

0:12:23 > 0:12:26- whatever they want to do. - So first choice is a four-bed house.

0:12:26 > 0:12:28- Four-bedroom, yeah. - Second choice in your mind

0:12:28 > 0:12:30would be flats and commercial?

0:12:30 > 0:12:33- Potentially, yes.- Potentially, but you're happy to take advice?

0:12:33 > 0:12:35Happy to take advice on whichever is,

0:12:35 > 0:12:38not so much the least amount of work,

0:12:38 > 0:12:40which is going to give us the best profit at the end.

0:12:40 > 0:12:42Good luck, Gareth, hope everything works out.

0:12:42 > 0:12:43Thank you very much, cheers.

0:12:43 > 0:12:48So, for a first project, Gareth is starting big.

0:12:48 > 0:12:51You could say there's a fair amount of work that needs to be done here.

0:12:51 > 0:12:53If I was him,

0:12:53 > 0:12:54I'd start with the electrics.

0:12:54 > 0:12:58The big question for me is what's he going to finish up with here?

0:12:58 > 0:13:00Is it going to be a four-bed house?

0:13:00 > 0:13:03Is it going to be residential upstairs, commercial down here?

0:13:03 > 0:13:06Gareth doesn't know, but you can find out later in the programme.

0:13:10 > 0:13:12# Yeah, yeah, yeah

0:13:12 > 0:13:14# I was actually five hours late, though... #

0:13:14 > 0:13:17Situated about nine miles southwest of the centre of London,

0:13:17 > 0:13:21the suburb of Raynes Park has been very popular with commuters

0:13:21 > 0:13:26since the first railway was built in the mid-19th century.

0:13:26 > 0:13:29The train station must be one of the busiest in the country.

0:13:29 > 0:13:31There are over 200 trains every day

0:13:31 > 0:13:34that will take you to Waterloo station,

0:13:34 > 0:13:36so you've got no excuse for being late for work.

0:13:36 > 0:13:42# I'm always late, I'm always late, I'm always late... #

0:13:42 > 0:13:46Well, Raynes Park is slightly in the shadow of neighbouring Wimbledon,

0:13:46 > 0:13:49but you do get slightly more for your money here.

0:13:49 > 0:13:51You've still got access to great facilities

0:13:51 > 0:13:54and it's only 20 minutes into the centre of London.

0:13:54 > 0:13:59So a three-bedroom maisonette for a guide price of 295,000 quid

0:13:59 > 0:14:01has got to be worth a look.

0:14:02 > 0:14:07Now, if the word "maisonette" conjures up a boxy 1960s block,

0:14:07 > 0:14:08hold on to your hat.

0:14:12 > 0:14:16Wow! Look at that! I was not expecting that!

0:14:16 > 0:14:18It seems to go on for absolutely ages back there.

0:14:18 > 0:14:21We'll explore that in a minute

0:14:21 > 0:14:24but, bedrooms and kitchens and toilets and things

0:14:24 > 0:14:25are back that way, I imagine.

0:14:25 > 0:14:28One of the bedrooms here is a really nice size.

0:14:28 > 0:14:29I love seeing doors like this.

0:14:29 > 0:14:33They are obviously covered in years of paint.

0:14:33 > 0:14:36We'll get those stripped back. Absolutely brilliant.

0:14:36 > 0:14:38And, whenever you're looking around older houses

0:14:38 > 0:14:40and you see things like this, it's just...

0:14:40 > 0:14:42It doesn't cost you anything, it's there,

0:14:42 > 0:14:44it's already something just waiting to be discovered.

0:14:44 > 0:14:47So get that stripped and you've got a beautiful feature.

0:14:47 > 0:14:49Bet the floors are the same.

0:14:49 > 0:14:51And look at this room, amazing. This is your lounge.

0:14:51 > 0:14:55Nice-sized ceilings, we've got the big bay window there.

0:14:55 > 0:14:57OK, it's a bit tired, and the wallpaper,

0:14:57 > 0:14:59you've got to see through all that.

0:14:59 > 0:15:04It's a really almost unbelievably big flat.

0:15:06 > 0:15:09The master bedroom next door is also huge

0:15:09 > 0:15:11with an Art Nouveau fireplace. I love it.

0:15:11 > 0:15:16Further along the corridor, the smaller bedroom is an odd shape.

0:15:16 > 0:15:19Again, I do like the period fireplace,

0:15:19 > 0:15:22and this room, which may be the last of the three beds,

0:15:22 > 0:15:24but looks like it's been used as a dining room.

0:15:27 > 0:15:30Well, one thing you are going to have to spend some money on

0:15:30 > 0:15:34in this place is a new boiler. That looks particularly archaic.

0:15:34 > 0:15:36Yikes! And then look at this.

0:15:36 > 0:15:37What a sideboard.

0:15:37 > 0:15:39HE GASPS

0:15:39 > 0:15:41A nice bit of oak, or whatever it is.

0:15:41 > 0:15:42What do you think it is, though?

0:15:42 > 0:15:44A very strange kind of angular bit at one end.

0:15:44 > 0:15:48A place to put your ironing board maybe? Ooh-ooh!

0:15:48 > 0:15:50This is a purpose-built maisonette.

0:15:50 > 0:15:54And you know what? There's the stairs out to the back garden.

0:15:54 > 0:15:58It's not huge garden, but a garden it certainly is.

0:15:58 > 0:16:00It all starts to go a little bit wrong at this point, though,

0:16:00 > 0:16:01because this is the kitchen.

0:16:01 > 0:16:05And as you can see, it is absolutely tiny.

0:16:05 > 0:16:07Obviously open that up if you can.

0:16:07 > 0:16:11Toilet, bathroom, love the colour.

0:16:11 > 0:16:13Never seen one that colour, ever, ever, ever.

0:16:13 > 0:16:15I absolutely love it.

0:16:15 > 0:16:16That has to stay.

0:16:19 > 0:16:20Or not!

0:16:20 > 0:16:25# Pink, it's my new obsession... #

0:16:25 > 0:16:26Well, I wouldn't get too obsessed

0:16:26 > 0:16:29with changing the pink bathroom just yet

0:16:29 > 0:16:30because this is a leasehold flat.

0:16:30 > 0:16:32So some works and alterations

0:16:32 > 0:16:35may need to be approved by the freeholder.

0:16:35 > 0:16:38And when it comes to the lease, ah, that's not the worst bit.

0:16:41 > 0:16:44This house comes with a really short lease.

0:16:44 > 0:16:4533 years.

0:16:45 > 0:16:48What does it matter? Well, in 33 years,

0:16:48 > 0:16:50if you don't do something about it, it's not your house any more.

0:16:50 > 0:16:53So what can you do to stop the property from reverting back

0:16:53 > 0:16:58to the freeholder? Well you need a solicitor to serve a section 42.

0:16:58 > 0:17:02This initiates a claim to extend the lease by a further 90 years

0:17:02 > 0:17:06and as this has already been done by the sellers,

0:17:06 > 0:17:10it means the purchaser can start negotiations right away.

0:17:10 > 0:17:14The new owner will have to pay a premium that reflects the decrease

0:17:14 > 0:17:16in value of the freeholder's interest.

0:17:16 > 0:17:21Get a specialist surveyor to advise on a figure.

0:17:21 > 0:17:24Talking of figures, what does the local estate agent

0:17:24 > 0:17:28make of this maisonette guided at £290,000?

0:17:30 > 0:17:31My first impression of this property,

0:17:31 > 0:17:34is that it is on a very highly desirable road.

0:17:34 > 0:17:37It's a period maisonette, it needs a bit of work,

0:17:37 > 0:17:38but it's got a lot of potential.

0:17:39 > 0:17:42And what do these types of properties

0:17:42 > 0:17:44normally sell for in this area?

0:17:44 > 0:17:46As a three-bed, with a new lease,

0:17:46 > 0:17:51we would market this property anywhere between £600 - 625,000.

0:17:51 > 0:17:55Wow! Even with the renovation costs, that large gap between the guide

0:17:55 > 0:17:58and top sales price could give you a flavour

0:17:58 > 0:18:00of just how important that lease extension is.

0:18:02 > 0:18:05What could it rent for?

0:18:05 > 0:18:08This property would rent from anywhere between £1,700

0:18:08 > 0:18:11and £1,800 per calendar month.

0:18:11 > 0:18:14So, it was all looking so swimmingly marvellous,

0:18:14 > 0:18:16and then we discovered about the lease.

0:18:16 > 0:18:23That really does throw a massive great spanner in the property works.

0:18:23 > 0:18:25Ooh. Something to definitely buyer-beware.

0:18:25 > 0:18:30So, let's see who bought it when it went under the hammer.

0:18:30 > 0:18:33Let's start at 300 on this.

0:18:33 > 0:18:34Those sort of purpose-built flats

0:18:34 > 0:18:37going for an awful lot more than this.

0:18:37 > 0:18:39300, Raynes Park?

0:18:39 > 0:18:42300. 305 anywhere? 305.

0:18:42 > 0:18:46310? Sitting down, sorry, I lost you.

0:18:46 > 0:18:48310. 315?

0:18:48 > 0:18:50315. 320?

0:18:50 > 0:18:53That short lease really narrowed the field for this one.

0:18:53 > 0:18:55And bidding was slow, but steady.

0:18:55 > 0:18:58We rejoin with the price at £384,000.

0:19:00 > 0:19:02384, back in.

0:19:02 > 0:19:05385. 386.

0:19:05 > 0:19:07One more go over 385?

0:19:07 > 0:19:08386?

0:19:09 > 0:19:11Yeah?

0:19:11 > 0:19:13387, you're very close.

0:19:13 > 0:19:14388.

0:19:14 > 0:19:16You're close. 388.

0:19:16 > 0:19:19You haven't got, you're just nearly there, 388.

0:19:20 > 0:19:21You'll regret it.

0:19:21 > 0:19:23387, first time.

0:19:23 > 0:19:25Second time,

0:19:25 > 0:19:27third and last time, if you're all done...

0:19:28 > 0:19:29Sold, 387.

0:19:29 > 0:19:30Good buy, well done.

0:19:31 > 0:19:36Out of view of our camera was Amal, who made that successful bid.

0:19:36 > 0:19:40She's a hotelier by occupation, and came along with son Omar,

0:19:40 > 0:19:44whose job as project manager in the construction industry

0:19:44 > 0:19:46may come in handy.

0:19:46 > 0:19:48- Omar, Amal, lovely to meet you both. - Lovely to meet you.

0:19:48 > 0:19:50- Nice to meet you too. - Congratulations.- Thank you.

0:19:50 > 0:19:53So tell me why you wanted to buy this flat.

0:19:53 > 0:19:55It's a good investment, it's a good area.

0:19:55 > 0:19:58- And I'm so impressed with Homes Under The Hammer.- Ah!

0:19:58 > 0:20:00- It triggered me on. - Did it?- Yes, it did.

0:20:00 > 0:20:03So have you bought other ones before this, or is this the first?

0:20:03 > 0:20:06- No, this is the first. - Really? We inspired you.

0:20:06 > 0:20:07You have inspired me, yes.

0:20:07 > 0:20:09Good, well, I hope it turns out all right.

0:20:09 > 0:20:12What was it about this particular flat that you liked?

0:20:12 > 0:20:15Well, I think the size of the flat is quite unique.

0:20:15 > 0:20:16Over 1,000 square feet.

0:20:17 > 0:20:21Looking at the flat, it looks quite a simple refurb as well.

0:20:21 > 0:20:24Structurally, there doesn't seem to be too many issues.

0:20:24 > 0:20:26- So luckily for my mum, I'm going to do this for free.- Oh, are you?- Yeah.

0:20:26 > 0:20:29- So I'm going to have the pleasure of managing it.- And share profits.

0:20:29 > 0:20:30Ah!

0:20:30 > 0:20:32Yeah, that would be nice.

0:20:32 > 0:20:34So what's the plans for this place?

0:20:34 > 0:20:38For this, well, until we get the lease sorted out,

0:20:38 > 0:20:42I think we'll just do it up a bit and make it look presentable

0:20:42 > 0:20:45and maybe rent it out and get some income.

0:20:45 > 0:20:46Because I think the lease

0:20:46 > 0:20:49is going to be a bit more than what we had hoped.

0:20:49 > 0:20:52- And you're working towards that? - Yes, we are.

0:20:52 > 0:20:55So if you couldn't get the lease extended, in 30 years,

0:20:55 > 0:20:58this property isn't yours any more, is it?

0:20:58 > 0:21:00- That's right. 33.- 33 years.

0:21:00 > 0:21:02Erm, the worst-case scenario is that, is it,

0:21:02 > 0:21:05or do you think you'll manage to come to some sort of an agreement?

0:21:05 > 0:21:08No, I think we'll manage to come to some agreement.

0:21:08 > 0:21:11And then, in terms of the refurbishment to the flat,

0:21:11 > 0:21:14what is the plan once you've got all that sorted?

0:21:14 > 0:21:17I think the plan is to try and make it as simple as possible

0:21:17 > 0:21:18until we sort out the lease.

0:21:18 > 0:21:20So we can strip out the carpet,

0:21:20 > 0:21:21maybe put some laminate flooring.

0:21:22 > 0:21:25Take off this hideous wallpaper

0:21:25 > 0:21:27and I think just put a fresh coat of paint.

0:21:27 > 0:21:30And then, we already have chandeliers in every room, so...

0:21:30 > 0:21:31- Yes, lovely.- Yes, yes.

0:21:31 > 0:21:34Exactly, yeah. So we don't need to create a false ceiling or whatever.

0:21:34 > 0:21:38We can just literally change the chandeliers for something new if you want.

0:21:38 > 0:21:39I would put a nicer kitchen, you know?

0:21:39 > 0:21:42A more appropriate modern kitchen.

0:21:42 > 0:21:44You can get them quite cheap now.

0:21:44 > 0:21:46This is until the lease is sorted out.

0:21:46 > 0:21:48Will you do another refurbishment on it?

0:21:48 > 0:21:50Yes. That will be stage two, complete refurb.

0:21:50 > 0:21:52And what would that involve?

0:21:52 > 0:21:55I think creating... Because these walls are structural,

0:21:55 > 0:21:58but I think we plan to create an opening,

0:21:58 > 0:22:01and one of the walls make one of the bedrooms en suite with the bathroom.

0:22:01 > 0:22:03- Yes.- Right. So what's the budget?

0:22:03 > 0:22:07For the first stage, I'm hoping to do it very, very cheaply.

0:22:07 > 0:22:11OK. I don't know, maybe, do you think we could do it for under ten?

0:22:11 > 0:22:12- Under ten? No, not at all.- Seven?

0:22:12 > 0:22:14If you're re-plumbing and stuff, I think...

0:22:14 > 0:22:16No, I'm not re-plumbing, not re-plumbing.

0:22:16 > 0:22:18You have to change some of the toilet.

0:22:18 > 0:22:21I'll change the bathroom, because it's leaking already.

0:22:21 > 0:22:22- OK.- I think that...

0:22:22 > 0:22:25You're not buying a handbag. I think around 20-25,000.

0:22:25 > 0:22:27And that's for the first version.

0:22:27 > 0:22:31- First stage.- Well, we haven't quite gotten to that yet.

0:22:33 > 0:22:35So, the initial squabbles.

0:22:35 > 0:22:37Do you buy expensive handbags?

0:22:37 > 0:22:39Sometimes.

0:22:39 > 0:22:40Sometimes you do.

0:22:40 > 0:22:42What's the most expensive handbag you've ever bought?

0:22:42 > 0:22:43Three and a half?

0:22:43 > 0:22:45£3,500?!

0:22:45 > 0:22:47- For a handbag?! - I don't get it either.

0:22:47 > 0:22:50- I don't get this handbag... - Well, yeah, you know what?

0:22:50 > 0:22:51Yeah, but it's a piece.

0:22:51 > 0:22:53It lasts for ever.

0:22:53 > 0:22:55It's an investment, it's like a diamond.

0:22:55 > 0:22:56Until she loses it, of course.

0:22:56 > 0:22:57Yeah!

0:22:57 > 0:22:59# Handbags and the gladrags

0:22:59 > 0:23:06# That your grandad had to sweat so you could buy... #

0:23:06 > 0:23:09Kidding aside, Amal knows her investment handbags.

0:23:09 > 0:23:11And she also knows quite a bit about budgeting,

0:23:11 > 0:23:14having recently refurbished her family's hotel.

0:23:15 > 0:23:17I've had to work to a budget

0:23:17 > 0:23:19because I was doing it out of the cash flow.

0:23:19 > 0:23:20- OK.- I didn't borrow any money.

0:23:20 > 0:23:21- Oh, well done.- Yeah.

0:23:21 > 0:23:25So I know where to get tiles, bathroom units,

0:23:25 > 0:23:29you get ex-display units, things like that.

0:23:29 > 0:23:33In addition to the £20-25,000 needed for phase one,

0:23:33 > 0:23:37Omar's construction experience tells him that will stretch

0:23:37 > 0:23:40to a further 25 grand once the lease is extended.

0:23:40 > 0:23:43The timescale is more difficult to predict,

0:23:43 > 0:23:48but depends on how negotiations progress with the leaseholder.

0:23:48 > 0:23:52But they're hoping the whole project won't take longer than six months.

0:23:52 > 0:23:54I mean, this collaboration, you know, it could go one of two ways.

0:23:54 > 0:23:57It will be a complete disaster or it could work quite well.

0:23:57 > 0:23:59Yeah.

0:23:59 > 0:24:01If it works well, will you...

0:24:01 > 0:24:03- Carry on?- ..do more together? - Oh, yes, yes.

0:24:03 > 0:24:04- You like the idea?- Yes.

0:24:04 > 0:24:07It seems like you're pretty lucky to have a son who's so well qualified.

0:24:07 > 0:24:10He is very qualified, yeah.

0:24:10 > 0:24:12- And people like him. - Yeah, well, he's a nice guy.

0:24:12 > 0:24:14Yeah, yeah, yeah.

0:24:14 > 0:24:16- Yeah, I can be.- They trust him.

0:24:16 > 0:24:19They trust him. OK, that's good. Lovely to meet you both.

0:24:19 > 0:24:21- Lovely meeting you, as well. - Take care.- Thank you.

0:24:21 > 0:24:22- Good luck with it. - Thank you very much.

0:24:22 > 0:24:25- Let's see how you get on. - Thank you.- Thank you.

0:24:25 > 0:24:28Well, buying a property with a short lease

0:24:28 > 0:24:32does come with a potential whole heap of problems

0:24:32 > 0:24:38as you may be aware, and as Omar and Amal are finding out.

0:24:38 > 0:24:42So, how many handbags' worth of renovation costs will there be?

0:24:43 > 0:24:46You can find out, when we come back later on the show.

0:24:48 > 0:24:51Still to come, I'm dealing with some unwanted guests

0:24:51 > 0:24:54at this three-bed house in Birmingham.

0:24:54 > 0:24:55So you've got these little pinpricks

0:24:55 > 0:24:58which tell you this place is rife with woodworm.

0:24:59 > 0:25:05And we'll find out if Amal and Omar were the perfect mother-and-son duo.

0:25:05 > 0:25:07Never work with your mum again.

0:25:07 > 0:25:08SHE LAUGHS

0:25:11 > 0:25:14Time to take a trip back to South Wales

0:25:14 > 0:25:18where I first saw this property that had a lot of potential.

0:25:18 > 0:25:21The ground floor was commercial space with one side

0:25:21 > 0:25:24being a former shop and the other side was a hairdressers,

0:25:24 > 0:25:27so there may have been an argument

0:25:27 > 0:25:30for keeping the commercial space as was.

0:25:30 > 0:25:33Or I know there's a flat upstairs, a two-bed flat upstairs.

0:25:33 > 0:25:36Do you keep that one upstairs as a two-bed flat,

0:25:36 > 0:25:39and make this one into a two-bed flat,

0:25:39 > 0:25:43or do you go back to its original four-bed house?

0:25:43 > 0:25:45The choice is endless.

0:25:46 > 0:25:50And the person who decided to purchase the property for 75 grand

0:25:50 > 0:25:54was Gareth. He's a PE teacher who was taking his first plunge

0:25:54 > 0:25:57into the property developing world.

0:25:57 > 0:26:01This huge building was no easy job.

0:26:01 > 0:26:04One of the biggest decisions was, what is he going to do with it?

0:26:05 > 0:26:09Our initial decision/idea was to turn it back into a four-bedroom.

0:26:09 > 0:26:12But if, when we get some people in, and get some advice,

0:26:12 > 0:26:14and they say actually it would be much easier,

0:26:14 > 0:26:16much more cost-effective

0:26:16 > 0:26:22to keep it as a commercial unit or maybe even flats,

0:26:22 > 0:26:25we might go down that road. We're quite flexible at the moment.

0:26:25 > 0:26:29OK. So there were plenty of options and plenty of potential obstacles

0:26:29 > 0:26:33that could trip up first-time property developer Gareth,

0:26:33 > 0:26:37not least planning permission to change the use into residential,

0:26:37 > 0:26:40if indeed that's what he decided to do.

0:26:40 > 0:26:43So it's time to find out what exactly has happened.

0:26:43 > 0:26:45We've returned eight months later.

0:26:47 > 0:26:50He's gone from checkout to check this out.

0:26:50 > 0:26:54Gareth decided to make one big family home.

0:26:54 > 0:26:56The former shop is now the living room,

0:26:56 > 0:26:58with a superb kitchen-diner off it.

0:27:09 > 0:27:12This new skylight is a great addition.

0:27:14 > 0:27:17And next door in the former salon are more big changes.

0:27:19 > 0:27:21There's a downstairs toilet with a shower

0:27:21 > 0:27:23and another reception room next door.

0:27:24 > 0:27:27Planning permission for the end use was granted,

0:27:27 > 0:27:30but with the proviso that the front lower windows

0:27:30 > 0:27:32were of a sash construction.

0:27:34 > 0:27:36Upstairs now has four bedrooms...

0:27:40 > 0:27:43..one of which was created by removing the former flat's kitchen.

0:27:59 > 0:28:03Gareth decided against doing much work in the bathroom,

0:28:03 > 0:28:05but with all the other work that has been going on,

0:28:05 > 0:28:07I don't really blame him.

0:28:08 > 0:28:11It's taken twice as long as he first thought,

0:28:11 > 0:28:14but the fact that he lives two hours away in Cardiff

0:28:14 > 0:28:17couldn't have made this first renovation for him very easy.

0:28:21 > 0:28:25From the get-go, we decided that I would be here

0:28:25 > 0:28:27three, four days a week,

0:28:27 > 0:28:31hands-on, labouring for whatever tradesmen we had.

0:28:31 > 0:28:32I was very lucky,

0:28:32 > 0:28:35found a local tradesman who was semi-retired and he was excellent.

0:28:35 > 0:28:37But being here,

0:28:37 > 0:28:40especially in the winter, we had no hot water or heating.

0:28:41 > 0:28:43That was a bit of a challenge.

0:28:43 > 0:28:47We were sleeping in the smallest room in the house just to try and stay warm.

0:28:47 > 0:28:49But, yeah, it's been an education

0:28:49 > 0:28:51as well as a little bit of an adventure.

0:28:52 > 0:28:56Lessons learned for Gareth and wife Geraldine.

0:28:56 > 0:28:58They did have a provisional budget of 25 grand

0:28:58 > 0:29:00to convert it into a four-bed house.

0:29:00 > 0:29:03But have they managed to stick to it?

0:29:06 > 0:29:08We've gone a little bit over that.

0:29:08 > 0:29:10It's 35-40.

0:29:10 > 0:29:13But, first time we've done this,

0:29:13 > 0:29:16I think we were a little bit naive in the budgeting.

0:29:16 > 0:29:18Yeah, we'll have to wait and see now

0:29:18 > 0:29:20whether we reap the benefits at the end.

0:29:22 > 0:29:25Fingers crossed, but now the work on the house is complete,

0:29:25 > 0:29:29have they decided if they will be selling the house on

0:29:29 > 0:29:31or keeping it as a long-term investment?

0:29:31 > 0:29:34Having put all the work in and mainly falling in love

0:29:34 > 0:29:37with the house and how it's turned out

0:29:37 > 0:29:40and the neighbours are lovely, the area's lovely.

0:29:40 > 0:29:42We're little bit loath to get rid of it.

0:29:42 > 0:29:44So we are, once we've had the valuation,

0:29:44 > 0:29:47we are going to look at the potential of renting.

0:29:48 > 0:29:52See if we can, if we can do it.

0:29:52 > 0:29:54If not, then, yeah, we will put it on the market

0:29:54 > 0:29:56and see what we can get for it.

0:29:56 > 0:29:59Well, let's find out just that.

0:29:59 > 0:30:03We've asked along two local estate agents to give us their opinions

0:30:03 > 0:30:06of the house. First, let's hear from the agent who saw it last time.

0:30:10 > 0:30:13I think the decision to take away the commercial

0:30:13 > 0:30:15is a really good idea.

0:30:15 > 0:30:18We've got quite a lot of empty commercial properties in the town

0:30:18 > 0:30:20and we are struggling to fill those.

0:30:20 > 0:30:22But people, they either want a property

0:30:22 > 0:30:24that they can do all the work themselves

0:30:24 > 0:30:27or they want a property that's really nicely finished,

0:30:27 > 0:30:29and I think that's what they've got here, it's a nice finish.

0:30:29 > 0:30:31I think they did a great job, actually.

0:30:31 > 0:30:33I think for me, as soon as I came in,

0:30:33 > 0:30:35it's this open-plan kitchen/living space.

0:30:35 > 0:30:37It's great actually. To get sort of a little bit more money,

0:30:37 > 0:30:41I think perhaps if they would have perhaps done sort of a new bathroom

0:30:41 > 0:30:43upstairs, because I think they've done so much work here,

0:30:43 > 0:30:46and downstairs looks great, and I just think when you go upstairs

0:30:46 > 0:30:48it feels like it hasn't been touched as much.

0:30:48 > 0:30:51But lots of people like to come in and put their own stamp on things

0:30:51 > 0:30:54anyway. So perhaps, maybe that's what the buyers might do.

0:30:55 > 0:31:01What could Gareth's £115,000 investment get on the open market?

0:31:03 > 0:31:05Because of the lack of parking,

0:31:05 > 0:31:09it's restricted really as to who might be interested in the property.

0:31:09 > 0:31:14I think we'd probably put it on the market around about 170,000

0:31:14 > 0:31:18with a view to getting between 155 - 165,000 for it.

0:31:18 > 0:31:22We'd like to sort of market the property around 190,000,

0:31:22 > 0:31:26and perhaps try to agree a sort of a sale in excess of £180,000.

0:31:26 > 0:31:29There's a little bit of variety there.

0:31:29 > 0:31:31A bit of a range, but pleased with both of them.

0:31:31 > 0:31:36Variable they are, but the lowest means a potential profit of

0:31:36 > 0:31:41something between £50 - £65,000 before deducting taxes and fees,

0:31:41 > 0:31:44which is pretty good for a first renovation.

0:31:44 > 0:31:46But he's keen to hang onto the house

0:31:46 > 0:31:50and the agents think he could get £650 per calendar month,

0:31:50 > 0:31:53which would give him a 7% yield.

0:31:53 > 0:31:55So now the valuations are in,

0:31:55 > 0:31:58what will Gareth and Geraldine do with this lovely house?

0:31:58 > 0:32:00It's something we would have to mull over.

0:32:00 > 0:32:03It's been a long eight and a half months, but on the whole,

0:32:03 > 0:32:07it's turned out, I'm really pleased with how it's turned out and I would

0:32:07 > 0:32:10love to move here. But it's an investment,

0:32:10 > 0:32:13whether it's to sell or rent,

0:32:13 > 0:32:16I think it's definitely given us a taste for doing it again.

0:32:19 > 0:32:21MUSIC: Theme from The Professionals

0:32:21 > 0:32:24This is the famous Spaghetti Junction,

0:32:24 > 0:32:26Birmingham's gateway to the M6.

0:32:26 > 0:32:30Close by sits Erdington, a popular residential area

0:32:30 > 0:32:35that boasts actor Martin Shaw as one of its most famous sons.

0:32:35 > 0:32:39One of his famous roles was in the 1970s series, The Professionals.

0:32:39 > 0:32:43And our next property is certainly crying out

0:32:43 > 0:32:45for some professional help.

0:32:45 > 0:32:50The property I'm here to see has got me slightly befuddled because it

0:32:50 > 0:32:53seems...it seems too good to be true.

0:32:53 > 0:32:54First of all, let me give you the facts.

0:32:54 > 0:32:57We're just around four miles from Birmingham city centre.

0:32:57 > 0:33:00The M6 is close by, public transport links are good,

0:33:00 > 0:33:04and a recent Ofsted report said the schools in the area are good, too.

0:33:04 > 0:33:06This... Well, this is it.

0:33:06 > 0:33:11It's a three bedroom semidetached with a guide price of just £25,000.

0:33:11 > 0:33:18Even more confusingly, it sold just under a year ago for 85,000.

0:33:18 > 0:33:19It doesn't make sense.

0:33:19 > 0:33:22Until I look at it. Look at this!

0:33:22 > 0:33:24The soil's bursting at the seams.

0:33:24 > 0:33:27This retainer wall is not doing much retaining,

0:33:27 > 0:33:30and that could really affect the house.

0:33:30 > 0:33:34And yes, this is what's known in the subsidence world

0:33:34 > 0:33:35as a belter of a crack.

0:33:35 > 0:33:37Look at that crack.

0:33:37 > 0:33:38That's really worrying.

0:33:39 > 0:33:40Concerning, yes.

0:33:40 > 0:33:45But it does seem to be on this front-of-porch extension for the time being.

0:33:45 > 0:33:47One for the professionals to check out.

0:33:49 > 0:33:52Through to a little vestibule area.

0:33:52 > 0:33:56I think it's safe to say you need some new windows and doors.

0:33:56 > 0:33:59And then through to a beautiful reception room.

0:33:59 > 0:34:00It's not a bad reception room.

0:34:00 > 0:34:04It's got nice lights coming in, it's bright, it's airy.

0:34:05 > 0:34:09You've got some red bricks off what was a fireplace.

0:34:09 > 0:34:10But it's gone.

0:34:10 > 0:34:13As is just about everything else.

0:34:13 > 0:34:15The polystyrene ceiling needs to come off.

0:34:15 > 0:34:17We don't have double glazing.

0:34:17 > 0:34:20The floorboards have been ripped up in places.

0:34:20 > 0:34:22And then I've never seen this before.

0:34:22 > 0:34:26You've got wallpaper straight on top of the bricks.

0:34:26 > 0:34:29Ah. Now, whereas I saw the potential in the reception room

0:34:29 > 0:34:31with the light flooding in, here, not so much.

0:34:31 > 0:34:33This kitchen, well, everything's been taken out,

0:34:33 > 0:34:36even the copper pipes. Somebody's taken them.

0:34:36 > 0:34:40But even THEY didn't want that really dirty cooker and fridge.

0:34:40 > 0:34:42Now, the configuration here is all wrong.

0:34:42 > 0:34:45You've got the bathroom just off a poky kitchen.

0:34:45 > 0:34:49What you'd be thinking about doing is taking this wall down.

0:34:49 > 0:34:52It is load-bearing, so it is a bit of a job,

0:34:52 > 0:34:54but it could open things up.

0:34:54 > 0:34:58You've got wallpaper on top of wallpaper on top of wallpaper,

0:34:58 > 0:35:00and then round here...

0:35:00 > 0:35:02..you've got a toilet.

0:35:02 > 0:35:04Least said the better about that.

0:35:04 > 0:35:07But I'm determined to find the positives.

0:35:07 > 0:35:08It's a nice day.

0:35:10 > 0:35:14Unfortunately, there are no positives to be found in the back garden.

0:35:14 > 0:35:18It's an overgrown mess, populated by tree saplings,

0:35:18 > 0:35:22which will need to be cleared before the roots get too established.

0:35:22 > 0:35:25I wonder if things will be any better upstairs.

0:35:26 > 0:35:28Upstairs, I'm watching where I'm going.

0:35:28 > 0:35:30The place is full of holes.

0:35:30 > 0:35:35You have a very small bedroom and the floorboards are up here

0:35:35 > 0:35:38because, of course, somebody has taken those copper pipes

0:35:38 > 0:35:39and pulled them up.

0:35:39 > 0:35:43And what it has exposed is a real problem with woodworm.

0:35:43 > 0:35:46So you've got these little pinpricks which tell you this place is rife

0:35:46 > 0:35:49with woodworm. So just another thing to add to the to-do list.

0:35:51 > 0:35:53Into a bigger bedroom.

0:35:53 > 0:35:56It's a decent size. You've got the same problem with the floorboards,

0:35:56 > 0:35:58they've been pulled up for those copper pipes.

0:35:58 > 0:36:02Need replacing. You've got a nice feature fireplace.

0:36:02 > 0:36:05It's just not where it should be, because someone has ripped it out.

0:36:05 > 0:36:07Now that's what I call rubble!

0:36:07 > 0:36:10So, someone has clearly made a stab at starting work in here.

0:36:10 > 0:36:12And walking around the house, the feeling I get

0:36:12 > 0:36:13is that it's just been...

0:36:13 > 0:36:16Well, the cracks have been papered over, over the decades,

0:36:16 > 0:36:18and when you do start exposing things,

0:36:18 > 0:36:20that's when the cracks appear.

0:36:20 > 0:36:23Literally, look at this. This is a real sign of movement.

0:36:23 > 0:36:25Clearly been going for years.

0:36:25 > 0:36:28Could be a huge money eater to put that right.

0:36:28 > 0:36:30And looking around, everything needs done.

0:36:30 > 0:36:33From your plastering, your windows, your electrics.

0:36:33 > 0:36:36Absolutely everything.

0:36:36 > 0:36:39# Making you aware of the state of things

0:36:39 > 0:36:42# A little introduction to the state of things

0:36:42 > 0:36:46# I'm aching to sing about the state of things

0:36:46 > 0:36:50# Bet they don't teach you at school about the state of things... #

0:36:50 > 0:36:54This property seems to have every problem imaginable.

0:36:54 > 0:36:59And even with that guide price of £25,000 for a good area,

0:36:59 > 0:37:01it's a bit scary.

0:37:01 > 0:37:05We asked a local estate agent how much of this place

0:37:05 > 0:37:07might need to be put right.

0:37:07 > 0:37:09To get this property up to a liveable standard,

0:37:09 > 0:37:13I would say it would cost £25,000.

0:37:13 > 0:37:15So, to values.

0:37:15 > 0:37:19When renovated, how much could this house make on the resale market?

0:37:19 > 0:37:24In the sales market, this could achieve £135,000.

0:37:24 > 0:37:27- And rental?- Once this property is complete,

0:37:27 > 0:37:32the rental you can achieve for this property is £725 per calendar month.

0:37:34 > 0:37:37On paper, this property is the sale of the century.

0:37:37 > 0:37:39But walking around it,

0:37:39 > 0:37:43it soon becomes apparent why that guide price is so low.

0:37:43 > 0:37:44There is so much needing done.

0:37:44 > 0:37:47But if you have the budget to play with,

0:37:47 > 0:37:51you could make this into the spectacular family home it maybe once was.

0:37:51 > 0:37:54Let's find out who agreed when it went under the hammer.

0:37:56 > 0:37:58OK, I've got a proxy bid.

0:37:58 > 0:38:00£30,000 for lot 38.

0:38:00 > 0:38:02Do I hear 35, sir?

0:38:02 > 0:38:04Thank you. 40 is proxy.

0:38:04 > 0:38:0545, I've got. 50, I've got.

0:38:05 > 0:38:07Proxy. 55 now, sir.

0:38:07 > 0:38:09I'll come back to you. 55 and the proxy is out.

0:38:09 > 0:38:13The proxy bids help to get this lot off to a flyer.

0:38:13 > 0:38:17And surprisingly the low guide price soon became a distant memory.

0:38:17 > 0:38:21We rejoin with the auctioneer looking for £88,000.

0:38:21 > 0:38:2488, come back in, behind.

0:38:24 > 0:38:27I've got, in the front, £86,000.

0:38:27 > 0:38:29I'll take 1,000, then.

0:38:29 > 0:38:30At 86...

0:38:30 > 0:38:32Fresh bidder again, 87.

0:38:32 > 0:38:3488, sir.

0:38:34 > 0:38:36You're not together, are you? No. £87,000.

0:38:36 > 0:38:4087, standing on my left at £87,000.

0:38:40 > 0:38:41First time.

0:38:42 > 0:38:44Second time. Are you all done?

0:38:44 > 0:38:46Third and very last time.

0:38:46 > 0:38:50You're out at the back, the bid is just there, sir, 87,375.

0:38:54 > 0:38:57Paying a massive 63 grand over the guide price

0:38:57 > 0:39:02was Braham, who lives locally with his wife and two children.

0:39:02 > 0:39:05This is his first-ever auction purchase

0:39:05 > 0:39:08and he certainly jumped in at the deep end.

0:39:08 > 0:39:10I met him back at the house to find out more.

0:39:14 > 0:39:16Braham congratulations.

0:39:16 > 0:39:19- Thank you.- Now, there's a lot of work to be done on this house.

0:39:19 > 0:39:21That's undeniable.

0:39:21 > 0:39:24But had you done your homework? You'd come to see it?

0:39:24 > 0:39:27When I went to the auction, I didn't visit the property,

0:39:27 > 0:39:29so I didn't know how...

0:39:29 > 0:39:33I just saw from the outside how it looks like, but I didn't see inside.

0:39:33 > 0:39:35So what did you think when you walked in?

0:39:35 > 0:39:40I was shocked. I was thinking, boilers or electric or windows,

0:39:40 > 0:39:42so that kind of thing, I was looking that...

0:39:42 > 0:39:44..don't need to do that.

0:39:44 > 0:39:46It's just maybe walls or that kind of thing.

0:39:46 > 0:39:50But when I saw that inside it's everything I have to do.

0:39:50 > 0:39:53So, you're in auction, and you think, this is 25 grand,

0:39:53 > 0:39:55this is three bedrooms, this is good.

0:39:55 > 0:39:56- Yes.- So you start bidding.

0:39:56 > 0:40:00- And what did you get it for? - It was 87

0:40:00 > 0:40:05for auction, but after that, once I got my solicitor and everything,

0:40:05 > 0:40:09they were saying the seller as per rider, seller cost,

0:40:09 > 0:40:11so it's nearly ten grand I have to pay extra.

0:40:11 > 0:40:13There must have been a moment...

0:40:13 > 0:40:15- Yes.- ..when you were quite sad about...

0:40:15 > 0:40:17Yes, I was sad.

0:40:17 > 0:40:19And nightmare, as well.

0:40:20 > 0:40:26What happened. But now I'm here, I'm positive, I'm going to do that.

0:40:26 > 0:40:31# Take a deep breath and jump right in... #

0:40:31 > 0:40:36Oh, dear, not only does this house have everything you could imagine wrong with it,

0:40:36 > 0:40:39he's paid well over the guide, got stuck with fees,

0:40:39 > 0:40:41and hadn't seen inside before bidding.

0:40:41 > 0:40:45Those Homes Under The Hammer golden rules are golden rules for a reason.

0:40:45 > 0:40:49However, he has a really can-do attitude and sounds determined

0:40:49 > 0:40:52to make this a nice home for his wife and kids.

0:40:53 > 0:40:59The first plan is to take off all the plaster, ripping out everything.

0:40:59 > 0:41:01Double glaze all the windows.

0:41:01 > 0:41:04Double glaze doors and everything will be fitted.

0:41:04 > 0:41:07Tomorrow, eight o'clock, the guys will be here.

0:41:07 > 0:41:11Central heating, pipes and the refurbishing, electric wiring,

0:41:11 > 0:41:14the guy will come this week, probably.

0:41:14 > 0:41:16And kitchen, we're going to put a brand-new kitchen.

0:41:16 > 0:41:19Downstairs bathroom, we are making downstairs bathroom.

0:41:19 > 0:41:21And then upstairs, new bathroom.

0:41:21 > 0:41:24Make the separate wall inside the new bathroom, as well.

0:41:24 > 0:41:25OK, there's a lot to do.

0:41:25 > 0:41:27Have you done this sort of thing before?

0:41:27 > 0:41:30- No, this is my first time. - All of that is a big job.

0:41:30 > 0:41:34What worries me more is the actual foundations and stability of the house.

0:41:34 > 0:41:38- Yes.- You've seen the cracks. Have you investigated?

0:41:38 > 0:41:41We investigated. I called the builders, as well.

0:41:41 > 0:41:44And they checked the walls. They said it's the base is fine,

0:41:44 > 0:41:48it's just the cracks because the plasters and the outside,

0:41:48 > 0:41:50is that extension.

0:41:50 > 0:41:53You don't need to worry about that because the base is safe, they said.

0:41:53 > 0:41:56- What's your budget? - Normally, budget was £25,000,

0:41:56 > 0:41:58but I can't afford,

0:41:58 > 0:42:00because I paid £10,000.

0:42:00 > 0:42:02So my budget has gone to now 15.

0:42:03 > 0:42:06- There's an awful lot of work to be done for 15, isn't there?- Yes.

0:42:06 > 0:42:09So my budget has gone down and is very tight.

0:42:09 > 0:42:11Wherever I can cut that, then I will cut,

0:42:11 > 0:42:13or probably I will do myself,

0:42:13 > 0:42:15or family, I will ask my help, as well.

0:42:15 > 0:42:17What is your timescale?

0:42:17 > 0:42:20When I bought this house, my timescale was eight weeks.

0:42:20 > 0:42:21But I don't think so,

0:42:21 > 0:42:24because the builders of which I'm speaking with them,

0:42:24 > 0:42:29they are very busy because of the time is, they're saying, summertime,

0:42:29 > 0:42:30and we are so busy.

0:42:30 > 0:42:33But, fingers crossed, I managed my double-glaze guy,

0:42:33 > 0:42:36so the house will be secure.

0:42:36 > 0:42:38Front door and the back door, house will be secure.

0:42:38 > 0:42:41Later on, maybe I can do my DIY work as well.

0:42:41 > 0:42:43Do you think you're quite handy?

0:42:43 > 0:42:47I've not done before, but I can, you know, can manage.

0:42:47 > 0:42:51Braham did have his reasons for gambling so much on the house.

0:42:51 > 0:42:54He wants his kids to go to a better school

0:42:54 > 0:42:55and the access to the motorway

0:42:55 > 0:43:00means it's much handier for his locum work as a hospital pharmacist

0:43:00 > 0:43:03- technician.- Sometimes, yeah, working in Oxford, London,

0:43:03 > 0:43:06Manchester and sometimes work in Leeds,

0:43:06 > 0:43:10so just quick on the M6 and drive and come back home.

0:43:10 > 0:43:13You've had a few setbacks, Braham, but I can't wait to see what you do.

0:43:13 > 0:43:17- OK. Best of luck.- Thank you.

0:43:17 > 0:43:18My heart breaks for Braham.

0:43:18 > 0:43:22He didn't view this property and he didn't read the legal pack

0:43:22 > 0:43:25and he's paid for it dearly and I'm also worried

0:43:25 > 0:43:27that £15,000 budget won't cut it,

0:43:27 > 0:43:29but I'm hopeful he can make this into

0:43:29 > 0:43:31a great family home for himself.

0:43:31 > 0:43:34In fact, I'm rooting for him, I'm sure you are too.

0:43:34 > 0:43:37You can find out what happens later in the show.

0:43:40 > 0:43:42So, we've seen one property.

0:43:42 > 0:43:44But how does it compare to our other two?

0:43:44 > 0:43:48Were they dealt a royal flush or a bad hand?

0:43:48 > 0:43:50I think it's time to see how the cards fell.

0:43:53 > 0:43:56Now we're heading back to Raynes Park in London,

0:43:56 > 0:43:58where I saw a three-bedroom maisonette,

0:43:58 > 0:44:02a very spacious three-bedroom maisonette at that.

0:44:02 > 0:44:04The decor was tired, but the rooms were huge,

0:44:04 > 0:44:07until you got towards the back of the flat.

0:44:10 > 0:44:12It all starts to go a little bit wrong at this point though.

0:44:12 > 0:44:17This is the kitchen. As you can see, it is absolutely tiny.

0:44:18 > 0:44:22There was also one other not-so-tiny problem.

0:44:22 > 0:44:26This house comes with a really short lease - 33 years.

0:44:26 > 0:44:28What does it matter? Well, in 33 years,

0:44:28 > 0:44:32if you don't do something about it, it's not your house any more.

0:44:32 > 0:44:37So there would be negotiations to be had with the freeholder here.

0:44:37 > 0:44:42Purchasing the property, short lease and all, for £387,000 was Amal.

0:44:42 > 0:44:47She planned on having discussions to extend the lease, whilst son, Omar,

0:44:47 > 0:44:49who handily has a building company,

0:44:49 > 0:44:52was going to get stuck in with the graft.

0:44:52 > 0:44:54Hopefully this mother-and-son pairing

0:44:54 > 0:44:58would be a great team, once they ironed out the kinks, that is.

0:45:00 > 0:45:02So, what's the budget?

0:45:02 > 0:45:05I don't know, maybe, do you think we could do it for under £10,000?

0:45:05 > 0:45:07Under £10,000? No. Not at all.

0:45:07 > 0:45:10- If you're replumbing and stuff. - No, I'm not replumbing, I'm not replumbing.

0:45:10 > 0:45:13You'll have to change some of the...

0:45:13 > 0:45:16I'll change the bathroom because it's leaking already.

0:45:16 > 0:45:18You're not buying a handbag.

0:45:18 > 0:45:20I think around £20,000 - £25,000.

0:45:20 > 0:45:21And that's for the first version.

0:45:21 > 0:45:24- First stage. - Do you buy expensive handbags?

0:45:25 > 0:45:28Sometimes.

0:45:28 > 0:45:30They planned on doing a simple refurb

0:45:30 > 0:45:32before renting it out for a few years.

0:45:32 > 0:45:35So, now we're heading back five months later

0:45:35 > 0:45:39to see if Amal and Omar have got this renovation in the bag.

0:45:47 > 0:45:48They certainly have.

0:45:48 > 0:45:52And it's had more than a quick refurb.

0:45:52 > 0:45:54Once they had a closer look at the electrics,

0:45:54 > 0:45:56plumbing and the state of the old plaster,

0:45:56 > 0:46:00Omar made the decision that, in the long run, it was best

0:46:00 > 0:46:03to just get everything back to brick and start again.

0:46:03 > 0:46:06As it is a leasehold flat,

0:46:06 > 0:46:09they had to come to a compromise with the freeholder

0:46:09 > 0:46:13on things such as the flooring, so there's no wooden floors,

0:46:13 > 0:46:15but instead these lovely fresh carpets.

0:46:16 > 0:46:20But they didn't have to settle when it came to layout.

0:46:38 > 0:46:43This new open-plan kitchen and living area works really well.

0:46:45 > 0:46:50So this is lovely, isn't it, now, with a dining reception?

0:46:50 > 0:46:53It was a good idea keeping this as a reception room

0:46:53 > 0:46:57and just make it more modern. So we just created an opening,

0:46:57 > 0:47:00giving an open-plan kitchen with a reception room.

0:47:00 > 0:47:02Just a more friendlier vibe.

0:47:02 > 0:47:07And it's also overlooking the garden so a mother doesn't feel isolated

0:47:07 > 0:47:10when she's cooking for the kids or for a dinner party.

0:47:10 > 0:47:14You can chat away, have a glass of wine with your guests or family,

0:47:14 > 0:47:16so it's good.

0:47:21 > 0:47:24As this is now the living area,

0:47:24 > 0:47:26the former front room has become the master bedroom.

0:47:33 > 0:47:35It is a fantastic size.

0:47:35 > 0:47:39And it also has a large cupboard and just down the hall is this smaller,

0:47:39 > 0:47:41but charming, third bedroom.

0:47:44 > 0:47:48Amal and Omar have finished within the six-month timescale

0:47:48 > 0:47:50they originally set for stage two,

0:47:50 > 0:47:54but unfortunately they haven't yet been able to reach an agreement

0:47:54 > 0:47:57to extend the lease, but negotiations are ongoing.

0:47:58 > 0:48:02This mother-and-son team must have learnt quite a few lessons

0:48:02 > 0:48:04on their first property venture.

0:48:05 > 0:48:07Never work with your mum again.

0:48:07 > 0:48:11I've actually enjoyed working with him because I see him more often.

0:48:11 > 0:48:14A mother always likes to see her son.

0:48:14 > 0:48:16Yes, yes, she does.

0:48:16 > 0:48:20I enjoyed it. So it's quite interesting working with your mum,

0:48:20 > 0:48:22but it was pleasant.

0:48:22 > 0:48:25The makeover, the whole flat, went pretty smoothly.

0:48:25 > 0:48:29I think we're all pretty happy with it and hopefully we can rent it

0:48:29 > 0:48:32and then sell it for a good price.

0:48:32 > 0:48:34As they've chosen to go with the full refurb,

0:48:34 > 0:48:38they've spent their maximum budget of £50,000 on all the work,

0:48:38 > 0:48:41so it's time to see if it's all been worth it.

0:48:42 > 0:48:45We've asked two local estate agents along for their opinion.

0:48:45 > 0:48:48First, let's hear from the agent who saw it last time.

0:48:52 > 0:48:54I think from the last time that I saw it,

0:48:54 > 0:48:56the owners have done a good job.

0:48:56 > 0:48:58It's been done up to a really good standard.

0:48:58 > 0:49:00I think leaving the kitchen in this room but open planning it

0:49:00 > 0:49:02was a really good idea. It looks very good.

0:49:02 > 0:49:05The main selling points of the property, I'd say the catchment area

0:49:05 > 0:49:07for the schools is going to be great.

0:49:07 > 0:49:09The location is always going to be key.

0:49:09 > 0:49:12But it's going to be very attractive to families because you've got

0:49:12 > 0:49:15the three proper bedroom space for the family to sort of spread out

0:49:15 > 0:49:18and there's a sociable kitchen-diner family room at the back.

0:49:18 > 0:49:22The garden's going to be a big pull as well and being in a quiet

0:49:22 > 0:49:25cul-de-sac again is a big pull for young families.

0:49:25 > 0:49:27The agents like it.

0:49:27 > 0:49:31But will Amal's investment of £337,000 have been worth it?

0:49:33 > 0:49:38I would suggest a sales asking price of £625,000 - £650,000.

0:49:38 > 0:49:43If we put this property on the market we would put it on the market for £650,000.

0:49:43 > 0:49:45That's what we had in mind, actually.

0:49:45 > 0:49:50- Yes.- Wasn't it?- I would have thought £660,000 - £670,000.

0:49:50 > 0:49:56At the moment, the £650,000 figure gives her £213,000 profit before

0:49:56 > 0:49:58taxes, fees and, crucially in this case,

0:49:58 > 0:50:01the cost of extending the lease.

0:50:01 > 0:50:03But as they're not going to sell for a couple of years,

0:50:03 > 0:50:05rental figures are the name of the game.

0:50:05 > 0:50:11And the agents agreed the flat could achieve £1,700 - £1,800 per calendar month.

0:50:13 > 0:50:19I think anything between £1,800 - £1,900 is quite a fair price for this kind of area.

0:50:19 > 0:50:21- Yeah.- When you rent it for a year or 18 months

0:50:21 > 0:50:24and you recoup all your refurbishment costs.

0:50:24 > 0:50:25Yeah. I suppose so.

0:50:25 > 0:50:28- It's a win-win situation. - It is a win-win situation.

0:50:28 > 0:50:31You can even be more generous towards me, which is nice.

0:50:31 > 0:50:36I'm sure she'll be generous, Omar, now she has that almost 5% yield.

0:50:36 > 0:50:39So will this mum-and-son team be working together again?

0:50:41 > 0:50:45It was a pleasurable experience working with my mum.

0:50:45 > 0:50:48First project I've ever done with a family member.

0:50:48 > 0:50:50Immediate family, especially.

0:50:50 > 0:50:53So why not more to come?

0:50:53 > 0:50:56- The more the better. - And since filming,

0:50:56 > 0:51:00Amal has managed to negotiate a lease extension of 99 years

0:51:00 > 0:51:02at a cost of £170,000.

0:51:08 > 0:51:11We return now to the Erdington district of Birmingham

0:51:11 > 0:51:13where earlier I saw this three-bedroomed semi.

0:51:13 > 0:51:15It had been extended at the front,

0:51:15 > 0:51:18but I wasn't happy with what I found.

0:51:20 > 0:51:22This retainer wall's not doing much retaining,

0:51:22 > 0:51:27and that could really affect the house and, yes,

0:51:27 > 0:51:30this is what's known in the subsidence world

0:51:30 > 0:51:32as a belter of a crack.

0:51:32 > 0:51:37Often movement in foundations can be indicated by diagonal cracks.

0:51:37 > 0:51:39The inside fills me with even more dread -

0:51:39 > 0:51:43missing floorboards, woodworm, broken floor tiles,

0:51:43 > 0:51:45polystyrene ceiling tiles

0:51:45 > 0:51:49and it got worse in what was left of the kitchen.

0:51:50 > 0:51:54Everything's been taken out, even the copper pipes, somebody's taken them,

0:51:54 > 0:51:59but even they didn't want that really dirty cooker and fridge.

0:51:59 > 0:52:02Upstairs the devastation continued.

0:52:02 > 0:52:06It was clear this would be a refurbishment on a grand scale

0:52:06 > 0:52:11and explained the guide price of a relatively low £25,000.

0:52:11 > 0:52:14It was bought for considerably more by Braham,

0:52:14 > 0:52:16who is a locum pharmacist technician.

0:52:16 > 0:52:20Not only did he pay £87,000 for this troublesome lot,

0:52:20 > 0:52:24he was hit with an additional £10,000 in fees.

0:52:24 > 0:52:27Even worse, he had taken a chance

0:52:27 > 0:52:30and hadn't seen the inside of the house.

0:52:30 > 0:52:32Despite his shock at the state of it,

0:52:32 > 0:52:36he had a plan and a very tight £15,000 budget.

0:52:36 > 0:52:42The first plan is to take off all the plaster, ripping out everything.

0:52:42 > 0:52:45Double glaze all the windows and double glaze the door

0:52:45 > 0:52:47and everything will be fitted.

0:52:47 > 0:52:51Central heating pipes and the refurbishing of electric wiring

0:52:51 > 0:52:54and kitchen, we're going to put a brand-new kitchen.

0:52:54 > 0:52:57Downstairs bathroom, we are making a downstairs bathroom fully

0:52:57 > 0:52:59and then upstairs, new bathroom.

0:52:59 > 0:53:01There's a lot to do, have you done this sort of thing before?

0:53:01 > 0:53:03No, this is my first time.

0:53:03 > 0:53:05Ooh, talk about jumping in at the deep end

0:53:05 > 0:53:07and Braham had originally thought

0:53:07 > 0:53:10eight weeks would be enough to complete.

0:53:10 > 0:53:13We're back, just over five months later,

0:53:13 > 0:53:16to see how things have worked out by taking a chance here.

0:53:23 > 0:53:27OK, the old downstairs bathroom off the kitchen

0:53:27 > 0:53:30is a bit of a work in progress.

0:53:32 > 0:53:34But the kitchen is bigger,

0:53:34 > 0:53:38it's been knocked through into the outhouse and the old toilet area.

0:53:38 > 0:53:42It now is functional with some integrated appliances

0:53:42 > 0:53:45and, most important, a central heating boiler.

0:53:46 > 0:53:48# I know you know there's something here

0:53:48 > 0:53:51# But you cannot get past the fear... #

0:53:51 > 0:53:54And fear is what most novice developers would feel

0:53:54 > 0:53:56when entering the old lounge.

0:53:58 > 0:54:00Now it has calming neutral tones,

0:54:00 > 0:54:04courtesy of Braham's wife Anita's interior design efforts.

0:54:06 > 0:54:10Upstairs the wallpaper pine-boarding effect has gone too.

0:54:10 > 0:54:14The landing's also been extended too to incorporate a shower room.

0:54:21 > 0:54:25The addition of the upstairs facilities has added much appeal

0:54:25 > 0:54:27whilst taking a little space from the bedroom,

0:54:27 > 0:54:30which is still a reasonably sized double.

0:54:32 > 0:54:34Across the landing, at the back of the house,

0:54:34 > 0:54:37is the smallest of the three bedrooms.

0:54:38 > 0:54:41And next door, the larger back bedroom.

0:54:42 > 0:54:46But, like me, I'm sure you're all wondering - what about the cracks?

0:54:51 > 0:54:54We've done underpinning the concrete this side and the backside.

0:54:54 > 0:55:00All that kitchen and that bathroom with a damp-proof membrane,

0:55:00 > 0:55:04we've done that all with solid concrete and this is the biggest,

0:55:04 > 0:55:07biggest huge job was that here. The hardest job.

0:55:09 > 0:55:13Another expensive job was moving the sewer drain from the old toilet

0:55:13 > 0:55:16to run down the left-hand side of the building,

0:55:16 > 0:55:19it meant a complete reworking.

0:55:19 > 0:55:22I found one plumber and he was saying, OK, I'm happy to do,

0:55:22 > 0:55:26but his price was double the price from the other people,

0:55:26 > 0:55:30but I was happy to pay because there was nobody wanted to do this.

0:55:30 > 0:55:32Braham's work at distant hospitals

0:55:32 > 0:55:35meant he found it difficult to project manage

0:55:35 > 0:55:40and keep an eye on tradesmen, so he found a radical solution.

0:55:40 > 0:55:43I gave up my full-time job and took a part-time job

0:55:43 > 0:55:46which is in the evening, so 5.00pm to 11.00pm.

0:55:46 > 0:55:49I was just doing that part-time job so basically in the daytime

0:55:49 > 0:55:52I was watching them as well over here.

0:55:52 > 0:55:56I'd been really worried about the amount of work needed and how far

0:55:56 > 0:55:58his £15,000 budget could stretch.

0:55:58 > 0:56:03He'd used £10,000 of his original refurbishment budget for those fees.

0:56:03 > 0:56:05So how has this panned out?

0:56:05 > 0:56:08OK, that's gone up to huge, huge money, yeah.

0:56:08 > 0:56:12It's gone £10,000 above what I've gone above.

0:56:12 > 0:56:15So that's £25,000 on top of the extra £10,000,

0:56:15 > 0:56:18and there's still work to do.

0:56:18 > 0:56:23Basically, inside I've mostly finished to living standard.

0:56:23 > 0:56:28Outside driveway is left as well, back garden to cleaning as well.

0:56:28 > 0:56:33So basically, I'm looking my budget which is I think £10,000 more.

0:56:33 > 0:56:37So that is my target.

0:56:38 > 0:56:43So his estimated total, when all is said and done, will be £132,000.

0:56:43 > 0:56:48This includes the purchase price, extra fees and increased budget.

0:56:48 > 0:56:49Time to call in the professionals.

0:56:50 > 0:56:52He's made a start.

0:56:53 > 0:56:56I think that once he's, how shall I say,

0:56:56 > 0:56:59finished it all off to maybe a little bit better standard

0:56:59 > 0:57:01and got it all completely done,

0:57:01 > 0:57:03it would make a nice family home.

0:57:03 > 0:57:05The kitchen downstairs is a good size,

0:57:05 > 0:57:07I think he's opened that up quite nicely.

0:57:07 > 0:57:10Traditionally, these properties would have a small kitchen,

0:57:10 > 0:57:12there would have been an outside toilet.

0:57:12 > 0:57:13It's a bit of a mish mash downstairs,

0:57:13 > 0:57:16so that really is a good feature of this property.

0:57:16 > 0:57:19We know in Braham's case it's about being a home for his family,

0:57:19 > 0:57:22but what would it sell for when complete?

0:57:23 > 0:57:27I would envisage the property being on the market

0:57:27 > 0:57:29in the region of £125,000.

0:57:29 > 0:57:30If this went to the market,

0:57:30 > 0:57:34I would estimate that this would fetch in the region of £125,000.

0:57:34 > 0:57:39A potential small loss, but Braham feels there's still value to be added.

0:57:39 > 0:57:43At this stage, it is worth £120,000, £125,000,

0:57:43 > 0:57:45something like that, which I know,

0:57:45 > 0:57:48that's why I didn't spend more money.

0:57:48 > 0:57:53But if I've done front driveway and back garden and something like that,

0:57:53 > 0:57:55then it will raise. Yeah, that's fine, yeah.

0:57:55 > 0:57:58Braham hopes to move the family in in a couple of weeks

0:57:58 > 0:58:00when the internal works are complete.

0:58:00 > 0:58:04So was it worth taking a chance on this unseen property?

0:58:04 > 0:58:07I'm glad, yeah, that I just gone to this auction

0:58:07 > 0:58:09and I bought this, yeah.

0:58:12 > 0:58:17We hope you've enjoyed the show and maybe we've even inspired you to go to your local property auction.

0:58:17 > 0:58:20Yes. We'll have plenty more renovation stories for you next time.

0:58:20 > 0:58:24- Yeah, join us here on Homes Under The Hammer soon, bye-bye.- Bye-bye.